The report of the World Gold Council said that Vietnam's gold demand in the second quarter reached 12.7 tons, down 9% compared to the same period in 2022. The demand for gold bullion and gold coins decreased by 5%. The same thing happened with jewelry gold as demand fell from 4.5 tons in the second quarter of 2022 to 3.7 tons last quarter, or an 18% decrease.
Previously, gold consumption in the first quarter also decreased by 12% compared to the same period in 2022. With two consecutive quarters of decline, the total gold consumption of Vietnamese people in the first half of the year was only 22.9 tons, down nearly 32% compared to the same period of the year. same period last year (33.6 tons). Compared to the year before the epidemic (2019), purchasing power also decreased by nearly 29%.
Mr. Shaokai Fan, Managing Director of Asia-Pacific (excluding China) & Head of Global Central Bank at the World Gold Council, gold purchasing power in Vietnam decreased in the second quarter as well. similar to the general situation of countries in Southeast Asia.
"The recent economic slowdown in Vietnam has affected market sentiment and jewelry demand. Demand for gold bars and coins is also limited due to low liquidity," explained Mr. Shaokai Fan. .
Experts also said that, during difficult economic times, people worry about defense and use money to spend their lives, rather than buying gold. In addition, other investment channels began to show signs of prosperity, for example, securities were improving, so they attracted money back.
Financial expert Phan Dung Khanh also acknowledged that people's reduction in gold purchases is a good sign for the economy. Because people's money in gold is considered "dead money". Therefore, if this money is not put into gold but sent to savings, it will help banks mobilize capital for lending, let alone put into production and business investment," this expert analyzed.
The first half business results of enterprises in the industry also reflect the trend recorded by WGC. Phu Nhuan Jewelry Joint Stock Company (PNJ) has net revenue of more than 16,400 billion dong and profit after tax of nearly 1,100 billion dong, completing about 56% of the year's profit plan.
However, a representative of the unit said that retail jewelry revenue in the first 6 months decreased by 10.3% over the same period due to adverse impacts from the market. Similarly, because the purchasing power of both domestic jewelry and orders from corporate customers has cooled down, the wholesale revenue of this segment also decreased by more than 30%.
Worldwide, gold consumption (excluding the OTC market) in the second quarter fell 2% year-on-year, to 921 tonnes. In which, gold jewelry consumption remained stable even with high gold prices, bringing a 3% increase over the same period last year, bringing total gold jewelry consumption in the first half of the year to 951 tons. Reviving Chinese demand and strong consumer buying activity in Turkey boosted gold consumption in the quarter.
Meanwhile, central banks bought a record 387 tonnes of gold in the first half of the year. Ms. Louise Street, Market Researcher at the World Gold Council, said that the tendency to buy gold by central banks has shown the importance of gold as a safe-haven asset in the context of stress. challenging geopolitical and economic conditions.
Assessing the situation in the second half of 2023, this expert believes that the economic downturn can provide a bullish opportunity for gold, thereby further reinforcing the precious metal's position as a safe-haven asset. "In this situation, demand from investors and central banks should support gold prices, helping to offset the drop in consumer demand for jewelry," Ms. Louise said.
Yi Tung
