PNJ, DAB join forces to process gold

Phu Nhuan Jewellery Co (PNJ) and Dong A Commercial Bank (DAB) yesterday officially introduced their gold bar with the brand name of PNJ-DAB.

Since 1990, PNJ has processed and traded gold bars having the brand name of Phuong Hoang. However, the company paid little care to this segment because PNJ’s target then was to become Vietnam’s leading jewellery producer, distributor, and trader.

However, physical gold has attracted much interest from investors and the public the safe-haven asset has emerged as a promising investment channel at a time of high inflation in Vietnam like now and the recession of the stock market. In addition, there is still much room for more players as Vietnam’s leading gold bar producer SJC sometimes cannot meet the local demand for gold bullion.

That is one of the reasons why PNJ shifts its attention to processing gold bar. PNJ and DAB have decided to upgrade PNJ’s production line producing Phuong Hoang gold bar and will churn out new gold bars of half, one-fifth, and one-tenth of a tael beside one-tael bar. A tael equals to 1.2 troy ounces.

PNJ and DAB have cooperated to establish InterGold Co., focusing on distributing PNJ-DAB gold via the networks of PNJ and DAB nationwide.

Nguyen Thi Cuc, deputy general director of PNJ, said that PNJ-DAB gold would pave the way for the operation of the gold exchange set up by three institutions, PNJ, DAB, and InterGold, in the near future.

“Despite SIC is supplying 95% of the local gold market, PNJ would not stand on the sidelines any more and that would offer more choices for customers,’ Cue told the Daily after the ceremony yesterday.

Beside PNJ and DAB, many other institutions such as Asia Commercial Bank (ACB) and Saigon Thuong Tin Commercial Bank (Sacombank) also have plans to produce their own gold bars.

 

Category: Business