Vietnam saw a slight drop in overall consumer demand, down 6% year-on-year, from 59.1 tons in 2022 to 55.5 tons in 2023. Bar and coin sales also saw a modest year-on-year decline in 2023, settling at 40 tons.

SJC gold bars displayed for sale in Hanoi

However, Vietnam experienced a substantial downturn in jewellery demand, dropping by 16% to 15 tons. This decline was marked by four consecutive quarterly year-on-year decreases, attributed to slowing economic growth and relatively high inflation in the region.

Shaokai Fan, head of Asia-Pacific (ex-China) & global head of Central Banks at the World Gold Council, said, "In Q4, Vietnam experienced an investment surge propelled by a price correction; however, increased demand and limited gold investment options led to a substantial premium on official SJC tael bars, reaching approximately 600-700 USD per ounce.

"The steady decline in the value of the local currency throughout 2023 further fueled demand, especially amid a fragile economic environment."

Turning to bar and coin investment, global demand was subdued and down 3% as strength in some markets worked to offset weakness elsewhere. In other ASEAN markets, including Vietnam, Malaysia, Indonesia, and Singapore, bar and coin demand also experienced a decline of 2%, 4%, 5%, and 8%, respectively, year-on-year.

Meanwhile, the global jewellery market proved to be remarkably resilient amidst record-high prices as demand inched up by three tons year-on-year. China played an important role, recording a 17% increase in demand for gold, as it recovered from COVID-19 lockdowns, offsetting a 9% decrease in India.

Source: VNA