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What’s next after gold exchanges close?   2010-03-29 - VietNamNet/TBKTSG

The fate of gold exchanges and their staff after the floors shut down on March 30 has many people wondering.

 

 

Vietnam shuts down gold exchanges

March 30 nears, but many speculators can’t sell their gold

Central bank proposes two solutions for gold exchanges

 

Looking for work

 

 
In 2009, Nam became head of the analysis division of a new gold company. He could not envision that just nine months later, when the Government decided to shut down gold exchanges, he would be looking for a new job.

 

Nam explained said that most officers have found new positions, but 30 percent of the staff remain, including Nam, because they still do not know where to go. The board of directors told the staff to find new jobs, because it has no idea what the company will do once the gold trading floor is closed.

 

Nam now heads many divisions in the company, but he really has nothing to do. Investors now come only to finalize their accounts.

 

Unlike Nam, Nga wants to leave the gold exchange, where she had been working for 10 months. The board of directors asked her to stay, saying they need Nga when the company begins providing new services. Since Nga is not sure about the company’s future, she thinks that it would be better to leave now.

 

Nevertheless, Nga cannot find a new job, although she has applied to many companies. She does not want to work for unofficial trading floors like some of her colleagues, because she worries that the floors will have to close one day.

 

A director of a gold trading floor revealed that, after the Government decided to shut down gold trading floors, he tried to contact some securities companies to introduce his staff. Most of his efforts were in vain, as only a few have been accepted. He has no choice but to advise his staff now to find new jobs on their own.

 

Nguyen Mien Tuan, Director of Rong Viet Securities Company, knows that many officers from gold trading floors are seeking jobs, but they lack knowledge and degrees relating to stocks and finance or even securities brokerage information. As a result, he does not want to recruit these officers.

 

Giving up business, re-leasing business premises

 

Many gold trading floors have stopped operation, including Viet A Bank’s gold trading floor, Sacombank’s trading floor – SBJ and Toan Cau – GGB, as trading volumes dropped by 90 percent in the first week of January 2010, when the Government’s decision was released. Other trading floors are about to shut down, such as Exim-SJC and Agribank-Vina.

 

According to Dao Hong Chau, Deputy General Director of Eximbank, after shut-down, the bank will give up this business and will not look for another way to continue.

 

Nguyen Ngoc Que Chi, General Director Sacombank Jewellery Company, reported that they shut down on February 11. The company is considering leasing the business premises to another member company of the same group. Meanwhile, the company will only continue business in bar gold and jewelry products, the “traditional business.”

 

Chau added that Eximbank is considering re-leasing the business premises and selling the equipment to others.

 

Meanwhile, gold trading floors that do not belong to banks have been struggling to find a new path. Vang The Gioi and Trieu Phong, for example, have begun providing financial consultation services in stocks and real estate just to continue existing. One source remarked that this is just an alternative while the trading floor owners prepare for other kinds of business, adding that the profits of such services are far below gold exchange figures.

 

The source said that it is not easy for gold trading floors to provide such services, because it has to compete with 100 other securities companies with professional consultants.

 

Other gold exchanges persist in serving as gold trading floors, but are only allowed to trade gold in kind (not on account) and jewelry products. If these floors do not attract investors, then they must close as well.



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