BIDV, Agribank promise to sell gold ‘without profit’

By Dat Nguyen   May 30, 2024 | 10:09 pm PT
BIDV, Agribank promise to sell gold ‘without profit’
A person holds gold jewelry at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
BIDV and Agribank will sell gold to retail consumers “without profit” to stabilize its prices, representatives for the state-owned lenders have said.

BIDV will start selling bullion at its counters in Hanoi and Ho Chi Minh City on June 3, CEO Le Ngoc Lam said in a statement published by the State Bank of Vietnam (SBV).

It will later expand sales to other localities like Da Nang City, Can Tho City and Ba Ria – Vung Tau Province.

The prices would depend on the central bank’s prices, and the goal is to narrow the gap between domestic and international rates, Lam said.

Agribank CEO Pham Toan Vuong said there would measures in place to verify buyers’ identities and prevent money laundering.

A representative of another state-owned lender told VnExpress earlier that the bank would sell gold within the price band allowed by the central bank.

The SBV allows unrestricted sales to individuals but prohibits sales to businesses and organizations, he added.

On Thursday it had said it would stop auctioning bullion to and would instead sell to the four state-owned lenders who would in turn sell in the retail market.

The nine auctions it held in recent weeks have not resulted in narrowing the gap between domestic and international rates.

Global rates are around 20% higher than domestic prices, which are around VND88 million ($3,456.75) per tael of 37.5 grams or 1.2 ounces.

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