May 04, 2021 / 16:30

Vietnam is largest gold consuming market in SEA

Vietnamese investors would buy more gold in the coming time, according to a latest survey.

Vietnam is the largest gold consuming market in Southeast Asia and among the top 10 in the world, according to Andrew Naylor, Director of ASEAN World Gold Council (WGC).

 Vietnamese gold retailers outperformed the market in 2020. Photo: PNJ

The latest report on personal gold investment in Vietnam, conducted in 2020 by the WGC, revealed that nearly 70% of 2,000 surveyed investors gold is their top priority item.

More than 80% of respondents, who invested in gold in the last 12 months, may buy more in the coming time. The number was higher than the global average of 45%.

About 76% of the respondents agreed the opening of a gold account at a bank and the formalization of the gold market via banks.

Though Vietnam has no digital gold market, nearly half of the investors said that they may buy gold on online channels, according to the report.

"Investors’ interest in gold is great as they believed that gold helps fight inflation and currency fluctuations, making them feel secure in the long term," the report wrote.

"The demand for gold in the country is very strong. When the financial system in the country develops, it will lead to the development of the gold market, increasing the accessibility and confidence in gold," said Naylor.

Despite the impact of the Covid-19 pandemic, Vietnamese gold retailers outperformed the market, of them in 2020 PNJ's profit exceeded 29% compared to its planned target.

In 2019, Vietnam’s consumer demand for gold was about 56.4 tons, ranking first in Southeast Asia.