Vietnam's Gold Market Declines Amid Regional Surge
The gold market in Vietnam is experiencing a decline in demand for gold bars and coins. According to the World Gold Council, Vietnam's demand fell by 31% year-on-year in the second quarter to 6.5 tonnes, making it the only Southeast Asian country to experience a decrease. This trend contrasts with the rest of the region, which saw a 7.6% increase in gold bar and coin sales.
The World Gold Council attributed the decline in Vietnam's gold market to several factors, including lower local prices and import quotas that distorted market conditions. As a result, the local price premium was high, discouraging potential buyers. The price of gold bars in Vietnam has fallen by 7.7% since the beginning of the year, marking a 26% decrease from its peak at the end of January.
Indonesia and Thailand, on the other hand, reported significant growth in their gold markets. Indonesia emerged as one of the fastest-growing gold markets globally in the second quarter, with demand surging by 40% year-on-year. Thailand also had a strong second quarter, marking its best since 2019, as the drop in local gold prices stimulated bargain hunting.