Vietnam considers listing silver bullion on commodity exchange

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

At a recent meeting to discuss a potential listing and trading mechanism for silver bullion, Tran Huu 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 Vietnam, silver bullion prices even reached 111 million VND (4,200 USD) per kilogramme, reflecting growing interest among individuals and investors.

Meanwhile, most silver transactions in Vietnam 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.

At the meeting, representatives from the Mercantile Exchange of Vietnam 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./.