In a significant move, the State Bank of Vietnam (SBV) is gearing up to reintroduce gold auctions, marking its return to the practice for the first time since 2013. This decision, outlined in a statement issued by the SBV last month, is poised to inject renewed vigor into Vietnam's gold market, offering a transparent platform for trading and enhancing investor confidence.

Under the new auction framework, interested participants will receive advance notifications, allowing ample time for preparation. The auction process will entail banks and gold trading enterprises submitting bidding forms within a concise 30-minute window following the announcement of the floor price. Prompt disclosure of auction results within an hour from the bid submission deadline ensures transparency and efficiency.

To foster participation, businesses must deposit funds by 5 p.m. on the day they receive the bidding notification, ensuring a level playing field for all stakeholders. While 26 commercial banks and gold trading firms hold authorization to trade gold bars with the SBV, approximately 15 are currently qualified to participate in the bidding process, signaling stringent eligibility criteria.

The auctions will feature SJC gold bars, a trusted standard in Vietnam's gold market. The revival of gold auctions not only reinvigorates market dynamics but also aligns with global practices, fostering greater integration and competitiveness.

The SBV's decision to resume gold auctions underscores its commitment to fostering a robust and transparent financial ecosystem in Vietnam. As the country strives for economic resilience and growth, the reintroduction of gold auctions stands as a testament to its proactive approach in adapting to evolving market dynamics.