Vietnam is expected to see a fierce competition on gold production soon as several banks are planning to process gold by themselves and introduce their own brand names, the Thoi Bao Kinh Te Online said on July 2.
Saigon Thuong Tin Commercial Bank (Sacombank) is in the process to establish its gold subsidiary which is expected to operate this year. An utive of the bank said that the gold company would import equipment to start up production soon.
Asia Commercial Bank (ACB) has already imported machines for processing gold, said Nguyen Thanh Toai, deputy general director the joint stock bank.
In couple of months, ACB will introduce its own gold brand and trade its gold on ACBs Saigon Trading Floor beside SJC gold produced by Saigon Jewelry Holding Co., he said.
The moves by these banks follow DongA Commercial Bank and Phu Nhuan Jewelry Joint Stock Company (PNJ), which in late April jointly launched the gold brand of PNJ-DongA. Nguyen Thi Cuc, deputy general director of PNJ, said that the capacity of its production line making PNJ-DongA gold was 12 tons per year.
Cuc said sales of the PNJ-DongA gold averaged 1,500-2,000 taels per day and in the first five months of the year, PNJs revenue on gold bar trading, including PNJ-DongA gold, increased 51% from the same period last year.
However, Vietnamese people, even commercial banks, have yet accepted new gold brands now.
The utive from Sacombank said that the bank now only accepted deposit in SJC, not other brands such as AAA and Bao Tin Minh Chau that were very popular in Hanoi. Sacombank expects to accept those gold brands at Hanoi-based branches in the near future, the official said.
Toai also said that his bank at this time did not accept deposits in gold brands other than SJC.
It will thus be very hard for new gold brands to secure a firm foothold in the market in the foreseeable future.
Gold is one of the most four favorable investment channels in Vietnam, including securities, real estate, and foreign currencies. (VnEconomy)
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