Vietnam largest bullion market in Southeast Asia

Vietnam was Southeast Asia’s largest gold bullion and coin market last year and among the top 10 globally. The demand in the country exceeded 31.1 metric tons compared to 28.7 tons in Thailand and 19.8 tons in Indonesia, according to the World Gold Council. If the jewelry was included, it went up to 43 tons, the second-highest behind Indonesia’s 46.8 tons.

Vietnam was the fourth largest market in Asia for bullion and coins behind India, Sri Lanka, and China, and the eighth largest in the world. Gold continued to be the top asset class for 72 percent of Vietnamese investors, the WGC said citing a study of 2,000 investors last year.

The outlook for the precious metal is positive with 81 percent of investors who previously invested in gold saying they would consider doing so again. To put that in perspective, the rates are 72 percent for Chinese and 67 percent for Indians, with the global figure standing at 45 percent. There is strong support for gold market liberalization in Vietnam, with 76 percent saying they should be allowed to open a gold investment account at banks to formalize the gold market.

Fifty-five percent called for setting up a gold exchange or trading platform authorized by the State Bank of Vietnam. Vietnam’s gold prices are now near the all-time high of VND63.5 million (US$2,787) per tael of 37.5 grams recorded on Jan. 25. A tael equals 37.5 grams or 1.2 ounces. On Feb. 16 it cost VND62.9 million, VND11.6 million higher than global prices.