What is the gold bar bidding process in Vietnam in 2024? What types of gold bar shall be traded in Vietnam?
What does a gold bar bidding mean? Is there a regulation on gold bar bidding in Vietnam?
Pursuant to Clause 3, Article 2, Circular 06/2013/TT-NHNN has the following regulations:
Explanation of terms
In this Circular, the terms below are construed as follows:
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3. “Trading of gold bullion through tender” is a form of trading in which the State Bank carries out tender to determine the partner, price and amount of gold bullion to be sold and purchased.
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Currently, there is no legal definition of the term "gold bar bidding". However, based on the above regulation, it can be understood that gold bar bidding is a form of trading gold bars between the State Bank of Vietnam and credit institutions or businesses that are granted licenses to trade gold bars through auction activities.
What does a gold bar bidding mean? What is the gold bar bidding process in Vietnam in 2024? (Image from the Internet)
What is the gold bar bidding process in Vietnam in 2024?
Pursuant to Clause 2, Article 12 of Circular 06/2013/TT-NHNN (amended by Point a, Clause 7, Article 2 of Circular 12/2023/TT-NHNN) and guided by Decision 563/QD-NHNN of 2013, the gold bar bidding process between the State Bank of Vietnam and credit institutions or businesses is as follows:
(1) State Bank of Vietnam (the Transaction bureau) shall notify gold bar bidding:
Not later than in adjacent working day preceding day which the State bank holds bidding, the Transaction bureau shall send notification of bidding (set according to form in Annex 1) by fax to credit institutions, enterprises have set the relation in purchase or sale gold bars with the State bank under the registered fax numbers.
(2) Credit institutions, enterprises shall transfer advance deposit:
Not later than 17: 00 of adjacent working day preceding day which the State bank holds the gold bar bidding, credit institutions, enterprises must transfer advance deposit into account of the State bank in according to the notification of bidding
(3) Examination and notification of bid qualification of credit institutions, enterprises:
- Within 01 (one) hour after the State bank begins bidding, the Transaction bureau shall examine the advance deposit of credit institutions, enterprises on accounts under notification of the State bank and examine personal identification papers of transaction representative of credit institutions, enterprises.
- The advance deposit of a credit institution or enterprise is valid for participating in bidding when it is more than or equal to the deposit value calculated according to the formula: Deposit value = Rate of deposit x Referenced price x Minimal bid volume of gold bars.
- A credit institution or enterprise is not qualified to participate in gold bar bidding with the State bank in the following cases:
+ It is in duration of temporary suspension of transaction relation or it is canceled transaction relation.
+ Its representative fail to present his/her personal identification papers in accordance with regulation;
+ The personal identification papers are invalid;
+ The participant is not the transaction representative who has been registered by itself;
+ It fails to abide by regulation on deposit as prescribed in clause 2 Article 5 of Decision 563/QD-NHNN of 2013.
The Transaction bureau shall notify in writing to credit institutions or enterprises that are not qualified to participate in gold bar bidding with the State bank, of which clearly stating reason.
(4) State Bank of Vietnam (the Transaction bureau) shall notify purchase price, sale price for bidding under volume or ceiling prices, floor prices for bidding under prices:
The Transaction bureau shall notify to the transaction presentatives of credit institutions, enterprises of ceiling prices, floor prices (if any) for bidding under prices, (according to form set in Annex 2a) or purchase price, sale price for bidding under volume (according to form set in Annex 2b).
(5) Credit institutions, enterprises shall submit joining-bid cards
Within 30 (thirty) minutes after the Transaction bureau notify prices as prescribed in Article 6 of this Process, the transaction representatives of credit institutions, enterprises shall full fill contents of joining-bid card (according to form set in Annex 3a for bidding under price, according to form set in Annex 3b for bidding under volume) and submit their joining-bid cards.
Download form of joining-bid card for bidding under prices
Download form of joining-bid card for bidding under volume
- The State bank (the Transaction bureau) shall close bidding at time ending time limit of submission of joining-bid cards. After closing bidding, the State bank (the Transaction bureau) shall refuse receipt of joining-bid cards of credit institutions and enterprises.
- Within 10 (ten) minutes after closing bidding, the State bank (the Transaction bureau) shall open bidding.
(6) State Bank of Vietnam shall implement consideration of bidding
Within 01 (one) hour) after openning the bidding, the the State bank (Transaction bureau) shall synthesize figures of bid, consider the bidding and define result of bidding.
For details of the consideration process of bidding, see Article 9 of Decision 563/QD-NHNN of 2013.
(7) State Bank of Vietnam shall cancel bidding (if any)
Before time of notification of prices or notification of bidding result, if gold price's changes exceed the changes of prices in the approved plan on purchase or sale gold bars, the Transaction bureau may cancel bidding and notify to credit institutions, enterprises joining in bidding.
(8) State Bank of Vietnam (the Transaction bureau) shall notify bidding result
After defining the bidding result, the State bank (The Transaction bureau) shall notify in writing:
- Synthesized result of bidding (made according to form in Annex 4).
- The result of bid winning for each credit institution, enterprise which has valid joining-bid card through its transaction representative (made according to Annex 5).
- Refarding invalid joining-bid card, notify to each credit institution, enterprise which has invalid joining-bid card through its transaction representative (made according to Annex 6).
(9) Confirmation on transaction;
Within 30 (thirty) minutes after the State bank (the Transaction bureau) notify the bidding result, the transaction representatives of credit institutions, enterprises winning bid must sign a written confirmation on transaction of gold purchase or sale with the State bank (the Transaction bureau) (made according to the form in Annex 7)
(10) Time limit for payment, delivery and receiving of gold bar;
- In case the State Bank sells gold bar:
+ The credit institutions or enterprises must pay full amount to purchase gold bar certification according to transaction confirmation to the payment account of the State Bank within the working day following the signing day of the confirmation document of transaction.
+ At the end of the date of the transaction certification and at the end of the following business day, the State Foreign Exchange Reserve Management Department shall compile the list of credit institutions and enterprises that have make full payment of gold bar purchase amounts within a day, and notify the Finance and Accounting Department, and the Issue and Vault Department in writing for processing procedures for delivery of gold bar to such credit institutions and enterprises as prescribed in Point c of this Clause
+ In the working day following the signing day of transaction confirmation, the State Bank (the Issue and Vault Department) shall deliver gold to the credit institutions or enterprises that have fully paid the amount of money for purchase of gold to the State Bank in the signing day of transaction confirmation; In the following second working day after the signing day of transaction confirmation, the State Bank (the Issue and Vault Department) shall deliver gold to the credit institutions or enterprises that have fully paid the amount of money for purchase of gold to the State Bank in the working day following the signing day of transaction confirmation.
+ In case the delivery of gold is different from the time limit, the State Bank shall notify the credit institutions or enterprises in the announcement of trading of gold bar or in the tender notice.
- In case the State Bank purchases gold bar:
+ The credit institutions or enterprises shall deliver gold bar to the State Bank within 01 (one) working day after the signing day of confirmation document of transaction
+ Upon completion of delivery of gold bar, the Issue and Vault Department shall send a written notification thereof to the State Foreign Exchange Reserve Management Department and the Operations Center for making payments to credit institutions and enterprises
+ The State Bank (Exchange) shall make payment to the credit institutions or enterprises within 01 (one) working day after the end day of delivery and receiving of gold bar.
Note: The delivery and receiving of gold bar in the trading of gold bar between the State Bank with the credit institutions or enterprises are done at the location as announced by the State Bank and prescribed by the State Bank.
(11) Processing deposit of the credit institutions or enterprises.
- The State Bank shall not refund deposit and notify in writing the credit institutions or enterprises in case the credit institutions or enterprises permitted for trading of gold bar with the State Bank (for direct trading) or winning tender (for tender) violate their obligations under Article 13, Point a, Clause 1 and Point a, Clause 2, Article 15 of Circular 06/2013/TT-NHNN.
- Except for the cases mentioned above, the State Bank (the Exchange) shall refund deposit to the credit institutions or enterprises through accounts registered by the credit institutions or enterprises with the State Bank in the following period:
+ In the transaction day for the case the State Bank stops the trading or cancels the tender and the case the credit institutions or enterprises are not permitted for trading or has not won tender.
+ In the working day following the transaction day for the credit institutions or enterprises purchasing gold bar of the State Bank.
+ In 02 (two) working day following the transaction day for the credit institutions or enterprises selling gold bar of the State Bank.
Appendix 1, 2a, 2b 3a, 3b, 4, 5, 6, 7 issued together with Decision 563/QD-NHNN of 2013.
What types of gold bar shall be traded in Vietnam?
Pursuant to Article 6 of Circular 06/2013/TT-NHNN stipulates as follows:
Type of gold bar to be traded
The State Bank shall trade in gold bar with content of 99,99%, type of 01 (one) tael produced by the State Bank or permitted for production in the periods.
Thus, gold bar with content of 99,99%, type of 01 (one) tael produced by the State Bank or permitted for production in the periods shall be traded in Vietnam.
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