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Vietnamese buy more gold amid inflation, dong fears

By Vien Thong   July 28, 2022 | 11:00 pm PT
Vietnamese buy more gold amid inflation, dong fears
Gold bars are seen in a jewelry shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Investors bought 14 tons of gold in the second quarter, up 11 percent year-on-year, seeking out the safe heaven metal amid concerns about inflation and a weakening dong.

Of this, 4.5 tons were in the form of jewelry, up 28 percent, even though global demand dropped 8 percent, according to the World Gold Council.

Andrew Naylor, head of ASEAN and public policy for the council, said investors were hedging their risks from inflation and a weakening dong.

Gold prices have dropped by around 10 percent from this year’s peak in March, which helped pushed sales, as reflected in the earnings reports of gold sellers.

Phu Nhuan Jewelry reported a revenue rise of 81 percent year-on-year to VND8.07 trillion ($336.25 million) in the second quarter, attributing it to the "vibrancy of the market after the pandemic."

Analysts at MB Securities foresee gold demand rising further as investors pile on amid the economic uncertainty.

 
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