Vietnam Central Bank to Auction $664,000 Worth of Gold Amid Market Demand

The State Bank of Vietnam (SBV) will hold an SJC gold bar auction on Monday, April 22nd at the SBV's Foreign Exchange Management Department in Hanoi. The auction will offer a total of 16,800 taels of gold, with a minimum bid lot size of 100 taels.

The reference price for deposits has been set at VND 81.8 million ($3,233) per tael, with a 10% deposit rate required. The minimum bid volume is 14 lots (1,400 taels) and the maximum is 20 lots (2,000 taels). Bidding will proceed in increments of VND 10,000 ($0.40 USD) per tael.

The SBV may cancel the auction results if it cannot secure the necessary supply of gold from international markets. Participating institutions must meet the requirements outlined in Circular No. 06/2013/TT-NHNN and Decision No. 563/QD-NHNN.

Dao Xuan Tuan, Director of the Foreign Exchange Management Department, indicated that the SBV has been carefully preparing for the auction and has the necessary gold stock in place.

Dinh Nho Bang, Vice President of the Vietnam Gold Business Association, emphasizes the importance of the SBV closely managing the resale process by winning bidders.

"The State Bank must go through intermediaries such as businesses, commercial banks...to sell gold to the people...," he said. "We need to monitor closely, tightly managing the selling price of the units, not buying and then selling when you want to sell, selling at any price."

In response to market volatility caused by geopolitical tensions and rising central bank demand for gold reserves, the SBV a few days ago issued an official request urging government agencies to collaborate on stabilizing the gold market.

Geopolitical instability, particularly the Russia-Ukraine conflict and tensions in the Middle East, have fueled global demand for gold as a safe-haven asset. Central banks worldwide, including China, have been actively increasing their gold reserves. This rise in international gold prices directly impacts the domestic Vietnamese market.

Specifically, the SBV is coordinating with the Ministries of Finance, Public Security, and Industry and Trade to implement measures aimed at stabilizing the gold market.

The Ministry of Public Security will lead efforts to crack down on gold smuggling, market manipulation, and price speculation. The Ministry of Finance will mandate the use of electronic invoices in all gold transactions, particularly gold bar sales, to improve transparency and oversight.

Additionally, the Ministry of Industry and Trade will intensify market monitoring to swiftly identify and address any misconduct. The SBV is also directing credit institutions and licensed gold businesses to fully comply with existing regulations and anti-money laundering measures.