VIENTIANE: Laos and the Hong Kong Special Administrative Region (HKSAR) have signed a memorandum of understanding to strengthen cooperation in gold trading and market development, as both sides seek to deepen financial ties and modernise the precious metals industry.
The agreement was signed in Vientiane on Monday by Lao Deputy Prime Minister and Minister of Finance Santiphap Phomvihane and Hong Kong Secretary for Financial Services and the Treasury Christopher Hui, according to a statement from the Lao Ministry of Finance.
It provides a framework for cooperation in physical gold trading, financial market connectivity, international promotion, talent development, financial technology and regulatory coordination. The two sides will also work to create a more supportive business environment for the precious metals industry.
Hui described the agreement as a milestone in the growing economic partnership between Hong Kong and Laos.
“Through this partnership, we will work together to realise a seamless, efficient and trusted gold corridor that benefits producers, refiners, traders and investors in both our economies,” he was quoted as saying by China Daily.
Under the agreement, Hong Kong will help qualified Lao gold owners gain access to its internationally accredited refining network and promote the use of refined gold bars that meet global standards.
The two sides will also strengthen links between their financial markets to improve liquidity, price discovery and access to international capital for Lao businesses and investors.
The Lao Ministry of Finance said the partnership supports the government’s long-term goal of developing a modern and transparent precious metals industry. It is also expected to strengthen the country’s financial infrastructure and deepen its integration into regional and international markets.
As part of this strategy, the ministry has supported the establishment of the Lao Bullion Bank. The bank is expected to modernise the domestic gold market by providing transparent bullion banking services and bringing privately held gold into the formal financial system.
It will also seek to strengthen cooperation with major international financial institutions.
Hui said the partnership was in line with Hong Kong’s ambition to expand its commodity-trading ecosystem.
Hong Kong recently launched a central gold clearing and settlement system and is continuing to expand its gold-market infrastructure, creating further opportunities for cooperation with Laos.
On the sidelines of the signing ceremony, Lao Bullion Bank chief executive officer and PTL Holding chairman and founder Chanthone Sitthixay signed a separate business cooperation agreement with Damien Han, Asia-Pacific head of sales at precious metals group MKS PAMP.
The agreement signals growing commercial links between Laos’ emerging bullion sector and the international precious metals industry.- Vientiane Times/ANN
