The strong recovery of the economy and the return of companies to operate at maximum capacity have contributed to boosting the demand for gold in Vietnam to skyrocket.

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Vietnam’s gold consumption demand increased by 264% over the same period. Photo: Chi Hung.

The World Gold Council has just reported on the trend of gold demand in Vietnam and the world, in which the agency said that in the third quarter, Vietnamese consumers bought 12 tons of gold, up 264% over the same period last year.

Total demand for bullion and gold coins showed similar growth, increasing from 2.4 tons in the third quarter of 2021 to 8.5 tons in the third quarter of 2022, an increase of 254%. Jewelry demand increased from 0.9 tons in the third quarter of 2021 to 3.5 tons in the third quarter of 2022, an increase of 290%.

As for world gold demand, the agency said in the third quarter reached 1,181 tons, up 28% over the same period last year.

According to Andrew Naylor, Managing Director for Asia Pacific (excluding China) at the World Gold Council, a significant increase in consumer demand for gold bullion and coins as well as jewelry much of the strength comes from the fact that the demand for gold in the third quarter of 2021 is much weaker than now.

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“Along with the lifting of blockade orders and restrictions in the prevention of Covid-19, economic activities are returning to normal, notably the strong recovery of the Vietnamese economy. Instead of cutting wages and human resources, companies are returning to full capacity, which has contributed to a surge in gold demand,” he said.

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Phu Nhuan Jewelry Company (PNJ) assesses that the retail market has recovered in the past period and is gradually catching up with the growth rate of the same period in the years before the epidemic.

Accumulating 9 months, the jewelry company recorded net revenue and profit after tax of 25,574 billion VND (up 104% over the same period) and 1,340 billion VND (up 133% over the same period).

Ms. Louise Street, Senior Market Researcher at the World Gold Council commented that despite the unstable macroeconomic environment, this year’s consumption demand has shown that gold still retains its position as a safe-haven asset and this position is further bolstered by the fact that gold has outperformed other asset classes this year.

@ Zing News

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