A customer making a transaction at a gold shop in Hà Dông District, Hà Nôi. — VNS Photo Ly Ly Cao
The four biggest state-owned commercial banks of Việt Nam and Saigon Gems and Gold One Member Ltd Co (SJC) begin to initiate the sale of SJC-brand gold bullions to the public starting today.
This strategic move aims to promote market stability and ensure a balanced gold market, rather than to pursue profit motives.
The Big4 banks are Agribank, Vietcombank, Vietinbank and BIDV.
The State Bank of Vietnam (SBV) emphasised that these four state-owned commercial banks are solely authorised to sell SJC gold bars to individual customers and are not involved in purchasing SJC gold bars from customers. The responsibility for all buying and selling transactions of SJC gold bars lies with SJC company.
Nguyễn Đức Hùng Linh, Founder and Chief Advisor at Think Future Consultancy & Investment, told Việt Nam News that the primary objective is to increase the supply and reduce the price gap between the domestic and international gold markets. Therefore, the decision not to repurchase gold is understandable, as it is not driven by profit motives.
Linh said that SJC gold bars have the advantage of being backed by a reputable brand and high-quality standards, making them highly liquid in the market.
As a result, individuals can sell their gold bars to regular gold companies after purchasing from state-owned commercial banks. He further clarified that the aim of market stabilisation is to cater to the demand for long-term investment rather than engage in speculative trading for short-term gains.
If customers intend to purchase a significant amount of gold, it is advisable for them to be prepared with the necessary information for declaration or to open an account at state-owned commercial banks prior to the transaction. This will facilitate the process and allow convenient payment through bank transfers.
Currently, the official websites of the four state-owned commercial banks and SJC company have announced the locations and timings for selling SJC gold bars to individual customers.
The primary focus is on Hà Nội and HCM City. Additionally, SJC company will also sell gold bars in other cities, including Hải Phòng, Hạ Long, Nha Trang, Huế, Quảng Ngãi, Biên Hoà, Cần Thơ, Bạc Liêu and Cà Mau.
The banks are scheduled to initiate the sale of SJC gold bars to individual customers at 16 designated sales points in Hà Nội and HCM City at 2.30pm today. And starting on June 4, the gold-selling operations will begin at 9am.
Regarding gold prices, the banks said that they will determine the selling prices based on the SJC gold buying prices set by the SBV. The selling prices will be publicly announced and prominently displayed on the banks' websites, as well as at the designated gold selling locations.
Ahead of the first direct gold sale to the public, the SBV has revealed the selling rate to be VNĐ78.98 million per tael ($3,108) for the four banks and SJC company. On the global market, the spot gold price is traded at $2,314.5 an ounce. At these levels, the gap between the domestic and international gold prices narrowed to VNĐ11.28 million. Early last week, the premium was around VNĐ20 million.
The local gold price tumbled last week after the SBV announced the new measure to stabilise the market.
At 9am, SJC gold prices are quoted at VNĐ79 million per tael for sellers and VNĐ81 million for buyers. — VNS