SBMA Outreach Extends to Vietnam, IndonesiaBy SBMA
The Hanoi Forum was first proposed back in 2016, but due to unforeseen circumstances, it was postponed twice and was further delayed due to the COVID-19 pandemic.
With the changes in the market conditions and easing of travel restrictions, SBMA jointly co-organised the Hanoi Market Forum with the Vietnam Gold Traders Association (VGTA) on 14-15 November 2022. The forum, supported by the World Gold Council, attracted over 80 delegates from Vietnam, Singapore, Hong Kong, Malaysia, Thailand and Australia with almost half comprising SBMA members and business associates.
Vietnam, with its growing economy, is an important gold market in ASEAN. In organising the Hanoi Market Forum, SBMA saw an opportunity for our members to meet and network with the country’s key industry players and to take part in shaping next phase of development for Vietnam’s gold jewellery industry. This also provided the State Bank of Vietnam with a platform for open dialogue to receive feedback from SBMA members and an opportunity for the expert panellists to provide suggestions to the State Bank of Vietnam (SBV) during their presentations and panel discussions.
The objectives of the Hanoi Market Forum are multifold:
- To request the SBV to consider granting gold raw material import quotas.
- To request the SBV to consider re-authorizing the local commercial banks to provide gold loans/credits to gold jewellery manufacturers.
- To request the SBV to consider easing on the monopoly of tael bars in terms of production and distribution in order to allow investors to acquire investment gold bars in line with international gold price.
- To request the SBV to consider setting up a National Gold Exchange under the management and supervision of SBV.
Besides Dao Xuan Tuan, director-general of SBV’s Foreign Exchange department, who provided the forum’s keynote speech, speakers and panellists of the Hanoi Market Forum included:
- Nguyen Thanh Long, chairman, VGTA
- Andrew Naylor, regional CEO, World Gold Council APAC
- Albert Cheng, CEO, SBMA
- Dinh Nho Bang, general secretary, VGTA
- Huynh Trung Khanh, deputy chairman, VGTA
- Nguyen Thi Huong, deputy CEO, DOJI Jewelry Group
- Le Tri Thong, CEO, PNJ
- Le Thuy Hang, CEO, SJC
- Prida Tiasuwan, chairman, Pranda
- Ng Yih Ping, CEO, Tomei
- Jonathan Prayoga, CEO, SKK Jewelry
In his closing remarks, SBV’s Tuan, said the panellists’ inputs and insights would be taken into consideration and urged the VGTA to play an active role in coordinating the suggestions and feedback received during the forum. He added that all related stakeholders and relevant government authorities need to work together and should not rely solely on SBV as all these changes and requests need to come from all the stakeholders involved in both domestic and international trade.
The SBMA will work closely with VGTA and all other stakeholders and will update our members of any future developments.
“The experience in the development of the ASEAN Gold Markets” panellists (L to R): Albert Cheng (SBMA),
Prida Tiasuwan (Pranda Group), Chirag Sheth (Metals Focus), Jonathan Prayoga (SKK Group), Le Tri Thong (Phu Nhuan Jewelry).
“ SBMA’s delegation had a very successful and fruitful bullion market forum with our Vietnam counterparts in Hanoi this time; and will certainly continue engaging with our working partners in the ASEAN region.”
– KL YAP
General Manager, Metalor Technologies Singapore
“ The State Bank is thinking strategically about how to grow the jewellery fabrication sector in Vietnam and how to grow an export-processing hub for Vietnam. That’s impressive. Additionally, it was good to see so many ambitious and fast-growing enterprises in Vietnam with gold jewellery operations at their core.”
– NICHOLAS FRAPPELL
Global Head of Institutional Markets, ABC Refinery
A high-level SBMA delegation comprising members of the Management Committee, headed by CEO Albert Cheng, took part in a three-day visit to Indonesia with the Coordinating Ministry of Economic Affairs (CMEA), Ministry of Finance, Bank Indonesia, Financial Services Authority (OJK), and key stakeholders from Indonesia’s bullion industry from 28-30 November 2022.
The visit was coordinated with the assistance from the CMEA. At the kick-off meeting, discussions were held on the proposed banking policy, upcoming changes to support the Indonesian gold market and plans/timeline on the establishment of bullion banks. Ferry Irawan, assistant deputy for monetary and external sector, highlighted that the government is proposing to include bullion business activities as part of the Omnibus Law – a structural reform to attract foreign investment, strengthen Indonesia’s economy, increase the ease of doing business and create new jobs. He further elaborated on the country’s bullion bank implementation roadmap, in which the non-bank financial institution and state-owned enterprise PT Pegadaian has been earmarked for the pilot.
SBMA members also presented their companies and business activities and showcased how they can participate and engage with relevant Indonesian counterparties in setting up the proposed bullion banks and/or help to improve the overall bullion ecosystem.
A group photo in Indonesia after the kick-off meeting on Day 1.
On the second day, members of the SBMA delegation were also invited to meet with Dr Adi Budiarso, FCPA Financial Sector Policy Center, Fiscal Policy Agency, MoF Indonesia. During the discussions, Dr Adi said Indonesia would develop a bullion market that will be beneficial to both domestic and global market. The bullion bank implementation needs to start with a pilot project (with a non-bank financial institution), then in the future, Indonesia can have a full bullion bank. He added that OJK needs to prepare a bullion bank supervision mechanism and all relevant parties should prepare a gold trading mechanism, and he looked forward to participation/inputs from SBMA members.
Individual presentations and discussions on possible collaborations, research, and partnerships were also held with the following companies:
- Bank Rakyat Indonesia (BRI)
- Bank Rakyat Indonesia Danareksa Sekuritas (BRIDS)
- PT Pegadaian Indonesia
- PT Aneka Tambang
In rounding up the visits, the SBMA delegation had the honour of meeting Iskandar Simorangkir, deputy minister of macroeconomic and finance coordination, CMEA, over a casual dinner hosted by the World Gold Council, where he conveyed the seriousness of the establishment of the Indonesia bullion bank. SBMA is looking forward to be a part of the country’s journey in building its bullion ecosystem.
At the dinner table with Iskandar Simorangkir, deputy minister of macroeconomic and finance coordination, CMEA.
We have invited the key stakeholders in Indonesia to visit Singapore early next year and SBMA will help to organise and coordinate their visits with interested parties.
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