Gold exchange, gold derivatives, gold ETFs proposed to be launched in Vietnam

Forming a gold exchange under state management in Vietnam is suitable to the reality, said Dao Xuan Tuan, head of the foreign exchange management department under the State Bank of Vietnam (SBV).

"The initial goal is to establish a physical gold trading platform - a transparent and public channel for distributing imported gold of certified quality - and to gradually introduce gold account and derivatives products, thereby mobilizing idle gold in the population and turning it into investment capital," Tuan told a recent seminar on establishing a gold exchange in Vietnam.

According to Tuan, Vietnam has several advantages: Decree No. 232 allows the SBV to grant import licenses for qualified banks and enterprises; financial sandbox frameworks and commodity exchanges have been established while an international financial center and digital asset exchanges will take shape soon; and many banks possess experience in operating trading platforms.

Vietnam can also learn from international gold exchanges such as SGE (China), IIBX (India), and SBMA (Singapore).

However, he noted that gold is a special, high-value commodity that requires a reliable system for storage, inspection, and asset safety. Vietnam currently lacks a centralized gold assay and depository center, so implementation must follow a careful, phased roadmap to ensure financial stability and macroeconomic safety.

Tuan said the SBV is considering three possible models. First, establishing a national gold exchange. Second, allowing gold to be traded on existing commodity exchanges. Third, setting up a gold trading floor within Vietnam’s international financial center. The country is developing an international financial center located in both Ho Chi Minh City and Danang city.

All the three models aim to build a modern, integrated gold trading hub with synchronized payment, storage, and technology infrastructure, effectively mobilizing domestic gold resources.

The pilot implementation will take place in three phases, with flexible adjustments based on real-world progress. In the early stages, the exchange will not be connected to international gold markets to ensure risk control.

Meanwhile, Bui Hoang Hai, Vice Chairman of the State Securities Commission (SSC), emphasized that Vietnam’s gold market is ready for two early-launch products.

They are gold derivatives, which help businesses hedge against price fluctuations and meet legitimate speculative demand; and gold exchange-traded funds (ETFs), catering to the public’s need for safe asset storage.

The first, gold derivatives, can be introduced immediately since Vietnam already has a well-functioning derivatives market with transparent clearing and margining mechanisms.

The key is to establish a reference price, which could be drawn from the national gold exchange or reputable international markets such as LME or COMEX.

As for the second, gold ETFs, they would ideally be built on a physical gold exchange foundation but could also operate through negotiated transactions among investment funds, provided the SBV grants approval.

“The establishment of a national gold exchange, similar to a stock exchange, would provide a solid legal and technical foundation, ensuring synchronized and secure market operations,” Hai said.

The SSC representative further stressed that custody and inspection of gold are critical components. Only standardized gold products, such as 99.99% purity or 24K gold, should be listed for trading to concentrate liquidity, facilitate settlement, and support the development of derivative products in the future.