The State Bank of Vietnam has said that rumours that it was running out of gold were unfounded and assured consumers it had a sufficient supply. It does not, however, seem to have provided any details as to how much gold it has left or how much it has sold. Neither has it detailed any plan to import more gold.
This comes in the context of a rush to buy gold after the State Bank announced it would start selling gold from its reserves at well-below market prices to try and close the gap between local and world gold prices.
Previously, the State Bank had tried to auction off its gold to several gold companies and financial institutions but the price was set relatively high and interest from these institutions was lacklustre at best.
This new strategy appears to be working but to what end is not really clear–With little utility in general, and even less for consumers specifically, it looks very much like these gold purchases are for investment purposes which is likely to push up the gold prices when the State Bank stops selling from its reserves.