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11/01/2024

Bloomberg: Gold demand in Vietnam will increase

In 2009, for the same average income level, Vietnam's per capita gold consumption was 2 times higher than that of India and 5 times higher than that of China.

Gold demand in Vietnam, a country with higher gold consumption per capita than both India and China, is expected to increase after the exchange rate adjustment and the deep decline of the stock market.

Last week, the State Bank adjusted the exchange rate to stimulate exports and improve the trade deficit. The main index of Vietnam's stock market has now fallen by 20% compared to its high in May 2010 and is in a losing state.

Gold prices in USD terms in June 2010 climbed to a record level because of worries that the global economic recovery was slowing down.

An analyst in Hanoi of Vietnam Gold Business predicted: "Gold and some strong currencies, such as the US dollar, will attract the attention of Vietnamese people, especially when the stock market has dropped." deep point.”

Last Thursday, the price of gold in Vietnam sometimes exceeded 29 million VND/tael.

On the world market, spot gold price on June 21, 2010 reached a record level of 1,265.30 USD/ounce. Gold prices are forecast to increase for the 10th consecutive year due to Central Banks stepping up purchases and investors in ETF funds increasing their purchases.

Vietnam's gold consumption in 2009 was 73.3 tons equivalent to 0.8544 grams/person, average income per capita reached 2,900 USD (according to calculations by the World Gold Council citing data from GFMS, IMF and WB).

India, the world's largest gold user, consumes 578.5 tons, equivalent to 0.4874 grams/person, with an average income of 3,100 USD.

China consumes 457.8 tons, equivalent to 0.3418 grams/person, with an average income per capita of 6,600 USD.

For the same average income level, Vietnam's per capita gold consumption is 2 times higher than that of India and 5 times higher than that of China.

GFMS CEO predicts that gold prices can at least reach 1,300 USD/ounce this year because investors look to gold more when the financial market fluctuates strongly.

Ngọc Diệp

According to Bloomberg