Vietnam to restart gold bar auctioning to increase market supply

THE State Bank of Vietnam (SBV) will restart gold bar auctions after an 11-year suspension, amid efforts to increase supply of the precious metal to market, Thoi Bao Ngan Hang, its newspaper reported on Monday (Apr 15).

The report did not say when the first auction would take place.

Last week SBV, Vietnam’s central bank, said it would increase gold bar supplies to stabilise the market as domestic prices have been much higher than global prices due to an imbalance between supply and demand.

The price of gold bars in the South-east Asian country has gained around 15 per cent this year, peaking at 85 million dong (S$4,575.36) per tael last Friday.

“There are 15 commercial banks and gold trading enterprises that are qualified to participate in the auction,” Thoi Bao Ngan Hang reported.

Under Vietnamese regulations issued in 2012, the state has the exclusive right to produce gold bars, and to export and import raw gold to produce bars to limit the impact of price fluctuations on exchange rates, inflation and macroeconomic stability.

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Local businesses have urged the SBV to amend the regulations in light of the current situation. REUTERS