Vietnam gold bucks global trend as world demand hits record high

Global gold demand surged to a record high in 2025 as investors and central banks sought safe-haven assets, but Vietnam moved in the opposite direction, weighed down by tight supply conditions and widening price gaps with international markets.

In its Full-Year 2025 Gold Demand Trends report, the WGC said total global gold demand reached an unprecedented 5,002 metric tons, the highest level ever recorded.

A strong rally in the fourth quarter capped a year of robust growth, with persistent geopolitical and economic uncertainty driving capital into gold and pushing total annual investment value to US$555 billion.

Shaokai Fan, head of Asia-Pacific excluding China and global head of central banks at the WGC, said investors worldwide continued to increase their gold allocations, supported by the metal’s safe-haven role, diversification benefits and strong price performance, according to the Voice of Vietnam.

Central banks also maintained steady gold purchases throughout the year, he added.

Global gold investment demand reached a record 2,175 metric tons in 2025, becoming the main driver of overall growth.

Demand for exchange-traded funds surged, with net inflows totaling 801 metric tons for the year, as investors sought protection and portfolio diversification amid heightened market volatility.

Physical gold demand, mainly in the form of bars and coins, also rose sharply to 1,374 metric tons, equivalent to about $154 billion.

China and India led the trend, posting year-on-year increases of 28 percent and 17 percent, respectively, and together accounting for more than half of global bar and coin demand.

Across ASEAN, investment in gold bars and coins climbed to multi-year highs in most markets.

Thailand recorded its highest level of gold investment since 2018, with investment value reaching a 12-year peak of $6 billion, while Indonesia sustained strong and stable investment over several consecutive quarters.

Against this regional and global backdrop, Vietnam stood out as a notable exception.

According to the WGC, gold investment demand in Vietnam fell 15 percent year on year, from 8.2 metric tons in the fourth quarter of 2024 to 7 metric tons in the fourth quarter of 2025.

This marked the sixth consecutive quarter of year-on-year decline and the weakest fourth-quarter performance since 2021.

The WGC attributed the downturn largely to supply constraints in the domestic market, noting that Vietnam’s gold market has come under heavy pressure from persistent shortages amid sharp volatility in global gold prices, which have repeatedly reached new highs.

These conditions have not only widened the gap between domestic and international gold prices but have also heightened the local market’s sensitivity when global prices enter phases of deep correction.

Persistent shortages of SJC gold bars have put significant pressure on investment activity, pushing the price gap between domestic and international gold prices to more than $550 per ounce, the council said.

As investment options narrowed, demand for 24K gold rings, widely viewed as an alternative investment channel, showed signs of increasing.

Despite Vietnam’s declining investment demand, the WGC noted that gold continued to play a crucial role globally as a safe-haven asset and a key component of diversified portfolios, underscoring the contrast between domestic market constraints and broader international trends.