Silver bars can be listed on the Vietnam Commodity Exchange

On March 18, the Department of Domestic Market Management and Development (Ministry of Industry and Trade), Vietnam Commodity Exchange (MXV) and businesses and banks met on plans to list and operate silver bullion trading.

According to MXV’s plan, the roadmap for listing silver products will be carried out in two stages. In the first pilot phase, silver bars are listed domestically with physical trading and delivery. When the market operates stably, the system will gradually connect with regional and international commodity exchanges.

At the meeting, gold and silver businesses such as Phu Quy, Bao Tin Manh Hai, Bao Tin Minh Chau, SBJ and Digi Invest said they are ready to ensure production capacity and delivery of goods. These will be entities directly involved in the supply chain, custody and operation of silver transactions.

Representative of Vietnam Maritime Bank (MSB), the unit expected to participate in providing depository services, information on physical conditions, storage systems and plans to ensure safety during the process of preserving silver bars.

On the international market, silver prices have recently increased following the general trend of the precious metals group. There was a time when world silver prices peaked, at nearly 108.6 USD per ounce on January 26. Domestically, the price of silver bars also continuously adjusted, sometimes exceeding 111 million VND per kilogram. Currently this item has decreased to 76.2 – 78.5 million per kg.

Currently, silver trading activities in Vietnam mainly take place by direct transactions between parties. However, this model is fragmented and lacks a centralized price formation mechanism, standardization of information and goods, and risk prevention tools. This poses potential risks for people, investors and businesses, and creates a need to improve management mechanisms.

Director of the Department of Domestic Market Management and Development Tran Huu Linh assessed that the demand for silver transactions in the market has tended to increase recently. According to Mr. Linh, the study of listing silver on MXV aims to gradually standardize trading activities in the context of strong fluctuations in the price of this commodity, large fluctuation range and difficulty in forecasting.

However, according to him, the implementation needs to be comprehensively evaluated to ensure transparency, system safety and the interests of market participants. Accordingly, the operator will evaluate the socio-economic and market impacts, as well as research risk management mechanisms on limiting trading positions, controlling speculation, ensuring system safety and market stability