Long estimated there were some 500 tonnes of gold held by local people, VGTA’s website reported.
He said, “Many people possessing a large quantity of gold showed interest in gold investment, even in risky gold floors that are running illegally in the country.”Further, without an official trading floor, fake or low-quality gold also put gold investors in a vulnerable situation, Long said.Though the Ministry of Science and Technology have issued a standard gold measure for the local market, many gold traders still apply different measures in their operations. Thus, the chairman said it was quite common for a gold product to contain 65% gold content in Can Tho City, but 63% in Binh Duong Province and only 61% in Ho Chi Minh City, under the different measures used by gold buyers.In addition, the ban on raw gold imports for non-licensed gold jewellery makers had forced these manufacturers to buy gold from the unofficial market, which contributed to gold smuggling in the country, Long said.
“Vietnam needs a huge amount of capital for socio-economic development in the next few years, thus the establishment of a gold floor is essential to help mobilise gold resources from local people,” the chairman said.
Long also said an official trading floor would ease gold smuggling across borders, and generate more taxes for the State budget. It would also help the State Bank of Vietnam (SBV) supervise gold transactions in the market and help local gold manufacturers buy raw materials for production.Six years ago, the National Finance Supervision Commission proposed a similar plan to the Government, according to which the gold floor was planned to operate in a similar manner to the stock exchanges in Ho Chi Minh City and Hanoi. Investors could trade their gold with gold certificates from SBV-licensed companies.Finance and banking expert Nguyen Tri Hieu said a national gold trading floor would bring transparency to the market and benefit all stakeholders.Hieu said the SBV’s policies had, so far, led to a stable gold market, adding that an official floor would help ease gold speculation.Nguyen Ngoc Canh, director of the Foreign Exchange Management Department at SBV, said an establishment of this type was already included in the bank’s strategic plans, however, it would be implemented step-by-step and at the right moment.According to the Ministry of Science and Technology, which monitors the quality of gold available in the market, inspections will be carried out at gold trading businesses between July and September.