SJC gold bars are displayed for sale in Hà Nội. — VNA/VNS Photo Trần Việt

The World Gold Council’s Gold Demand Trends report reveals that annual gold demand (excluding over-the-counter) fell to 4,448 tonnes in 2023, down just 5 per cent from a notably strong 2022.

Việt Nam saw a slight drop in overall consumer demand, down 6 per cent year-on-year, from 59.1 tonnes in 2022 to 55.5 tonnes in 2023. Bar and coin sales also saw a modest year-on-year decline in 2023, settling at 40 tonnes, reflecting a marginal decrease of tw tonnes. 

However, Việt Nam experienced a substantial downturn in jewellery demand, dropping by 16 per cent to 15 tonnes. 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, Việt Nam 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 US$600-700 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 per cent as strength in some markets worked to offset weakness elsewhere. In other ASEAN markets, including Việt Nam, Malaysia, Indonesia, and Singapore, bar and coin demand also experienced a decline of 2 per cent, 4 per cent, 5 per cent, and 8 per cent, respectively, year-on-year. 

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