Việt Nam considers listing silver bullion on commodity exchange

Việt Nam considers listing silver bullion on commodity exchange

Việt Nam is considering listing silver bullion for trading on the Mercantile Exchange of Việt Nam to standardise transactions and improve transparency in a rapidly growing market amid volatile global prices.

In Việt Nam, silver bullion prices even touched VNĐ111 million (US$4,200) per kilogramme, reflecting growing interest among individuals and investors. — Photo vietnmanet.vn

Trần Hữu Linh, director of the Domestic Market Department under the Ministry of Industry and Trade, said demand for silver trading has risen in recent years. 

Both domestic and international markets have seen sharp and unpredictable price fluctuations, however.

“The listing of silver bullion on exchanges needs to be studied to gradually standardise trading activities,” Linh said, stressing that implementation must be assessed to ensure transparency, system safety and the protection of market participants.

Recently, in global markets silver prices have climbed significantly in line with gains in precious metals.

In Việt Nam, silver bullion prices even reached VNĐ111 million (US$4,200) per kilogramme, reflecting growing interest among individuals and investors.

Meanwhile, most silver transactions in Việt Nam take place through direct transactions between sellers and buyers, he said.

Linh added that this fragmented model with a lack of centralised pricing mechanisms, standardised product information and risk management tools can expose individuals, investors and businesses to greater risk.

Listing silver on the commodity exchange could help establish a centralised, transparent market with a unified reference price and risk-hedging tools, he said. 

The move would also help modernise commodity trading and bring domestic practices closer to international standards.

According to Linh, any move to introduce silver trading on the commodity exchange must be carefully evaluated, including its economic and social impacts and implications for market management.

He also highlighted the need to develop risk management mechanisms such as position limits and measures to curb excessive speculation and ensure market stability.

Representatives from the Mercantile Exchange of Việt Nam outlined a proposed trading structure, including delivery and clearing mechanisms for silver bullion.

Under the proposal, the rollout would take place in two phases. The first would involve a pilot listing in the domestic market with physical transactions. In the second phase, after operations stabilise, the exchange could be linked with regional and international commodity exchanges.

Businesses in the gold and silver sector said they are committed to ensuring production capacity and complying with delivery requirements. However, current silver supply still depends largely on imports.

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