Vietnam Gold Market


Published on

Vietnam Gold Market

1 Like
  • The Asian economies look like they will pick up before Europe.
    Are you sure you want to  Yes  No
    Your message goes here
  • • gud day, i have registered gold land in Ghana,, looking for company or investors who can plan mining project ... please make move to contact investors about this , u will get gud commission,, txt or call me>
    +233 244970210
    Are you sure you want to  Yes  No
    Your message goes here
  • chao anh, em rat quan tam den bai viet cua anh, anh co the cho em thong tin lien lac duoc ko a? Em muon hoi anh 1 so van de nua. Rat cam on anh
    HIen tai em dang hoc Master of Eco tai Han Quoc.
    ANh cho em bai viet + slide ppt cua bai viet Vietnam Gold Market duoc ko a?
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Vietnam Gold Market

    1. 1. VIETNAM GOLD MARKET International Finance - Group 2 Tran Cong Tuong Le Xuan Long April - 2011
    2. 2. AGENDA <ul><li>Overview of Vietnam gold market </li></ul><ul><li>Gold in eyes of government </li></ul><ul><li>Gold in eyes of producers </li></ul><ul><li>Gold in eyes of consumers (Vietnamese people) </li></ul><ul><li>Gold in eyes of investors </li></ul><ul><li>Gold in eyes of lovers </li></ul>
    3. 3. Overview of Vietnam Gold Market
    4. 4. Gold Demand of Vietnam <ul><li>Demand in 2010 * : 81.4 tons ($ 3.232 million) </li></ul><ul><ul><li>Bar: 67.0 tons ($ 2.674 million) </li></ul></ul><ul><ul><li>Jewelry: 14.4 tons ($ 558 million) </li></ul></ul><ul><li>Gold kept among Vietnamese: around 500 tons ($ 19.852 million) (unofficial data) </li></ul><ul><li>World’s largest gold consumer (in term of per capita income) </li></ul><ul><ul><li>India and China: world's largest gold consuming (in term of value) </li></ul></ul><ul><li>* Source: GFMS, WGC </li></ul>
    5. 5. Gold Bar Demand ( Q4 2010 vs Q4 2009)
    6. 6. Jewelry Demand (Q4 2010 & Q3 2010)
    7. 7. Import & Export <ul><li>Strictly control by SBV </li></ul><ul><ul><li>Need official permits </li></ul></ul><ul><ul><li>Quota </li></ul></ul><ul><ul><li>Only for big gold firms </li></ul></ul><ul><li>Official statistic: 1998 – Sep. 2010 </li></ul><ul><ul><li>Export: 268.86 tons (22.4 tons per year) </li></ul></ul><ul><ul><li>Import: 339.86 tons (28.3 tons per year) </li></ul></ul><ul><li>Illegal import of gold (smuggling): 20-40 tons per year (unofficial data) </li></ul>
    8. 8. Vietnam Gold Price (04/2010 – 04/2011)
    9. 9. Vietnam Gold Price in Ten Years
    10. 10. World Gold Price in Ten Years
    11. 11. Return on Investment – Feb/2011 (monthly)
    12. 12. Gold in Eyes of Government
    13. 13. Regulating Gold Market - Objectives <ul><li>Stabilize macro-economy (inflation) </li></ul><ul><li>Utilize gold kept among Vietnamese </li></ul><ul><li>Eliminate gold as a means of payment in the economy </li></ul><ul><li>Control and stabilize gold market </li></ul><ul><li>Prevent gold smuggling </li></ul>
    14. 14. Current Management in Gold Market <ul><li>Shut down local gold exchanges </li></ul><ul><li>Ban gold trading on foreign accounts </li></ul><ul><li>Strictly control import/export gold </li></ul>
    15. 15. Government's Resolution for Gold Market (Resolution 11/NQ-CP) <ul><li>Stopping gold mobilizing and lending by credit institutions </li></ul><ul><ul><li>Still lend gold for producing jewelries </li></ul></ul><ul><li>Strictly controlling the gold market </li></ul><ul><li>Closely monitoring & forecasting fluctuations of international gold price, gold supply & demand in domestic market </li></ul><ul><li>Submitting Decree on gold management and trading for certain major gold importers </li></ul>
    16. 16. Government's Resolution for Gold Market (cnt.) (Resolution 11/NQ-CP) <ul><li>Prohibiting gold bar trading </li></ul><ul><li>Inspecting speculation, hoarding and manipulation in gold market </li></ul><ul><li>Revising the regime of administrative penalties against violations in gold trading </li></ul><ul><li>Enhancing supervision and dealing with violations of gold trading of institutions and individuals </li></ul>
    17. 17. Gold in Eyes of Producers
    18. 18. Gold Producers <ul><li>Gold companies </li></ul><ul><ul><li>About 20 big firms: SJC , PNJ, SBJ, AJC… </li></ul></ul><ul><li>Gold shops </li></ul><ul><ul><li>Thousands of gold shops in Vietnam </li></ul></ul>
    19. 19. Gold Products <ul><li>Gold bar </li></ul><ul><li>Jewelry </li></ul><ul><ul><li>Ring </li></ul></ul><ul><ul><li>Earrings </li></ul></ul><ul><ul><li>Bracelet </li></ul></ul><ul><ul><li>Pendant </li></ul></ul><ul><ul><li>Chain </li></ul></ul><ul><ul><li>Necklace </li></ul></ul>
    20. 20. Gold Bars
    21. 21. Gold Jewelry
    22. 22. Suggestions for Gold Management * <ul><li>Not forbid the gold bar trading, just tough conditions </li></ul><ul><ul><li>Charter capital: 30 billion VND </li></ul></ul><ul><ul><li>Annual revenue: 500 billion VND </li></ul></ul><ul><li>Physical gold bar trading to be limited, gold trade on account </li></ul><ul><li>Establish national gold exchange </li></ul><ul><li>Gold trade account in foreign countries </li></ul><ul><li>Raise import tax (0%->0.5%), decline export tax (10%->0.5%) </li></ul><ul><li>* Source: Vietnam Gold Traders Association </li></ul>
    23. 23. Suggestions for Gold Management (cnt.) <ul><li>Create new forms of gold trading </li></ul><ul><ul><li>Physical gold trading (current) </li></ul></ul><ul><ul><li>Exchange-traded funds (ETFs), </li></ul></ul><ul><ul><li>Investments through accounts </li></ul></ul><ul><ul><li>Gold derivatives </li></ul></ul><ul><li>Sustainable and long-term policies for gold market </li></ul>
    24. 24. Gold in Eyes of Consumers
    25. 25. In Eyes of Vietnamese People <ul><li>Gold is very special to Vietnamese people </li></ul><ul><li>Any precious thing is considered as gold (quí như vàng) </li></ul><ul><ul><li>Silent is gold (Im lặng là vàng) </li></ul></ul><ul><ul><li>Girl’s virgin is considered as gold (Mất cái ngàn vàng ) </li></ul></ul><ul><li>Gold jewelries are used in special occasions: </li></ul><ul><ul><li>Gifts for wedding </li></ul></ul><ul><ul><li>Tet holiday </li></ul></ul>
    26. 26. In Eyes of Vietnamese People (cnt.) <ul><li>Gold was a common unit of price </li></ul><ul><ul><li>Real estate transaction </li></ul></ul><ul><ul><li>Motorbike transaction </li></ul></ul><ul><li>Gold is a great stored of value </li></ul><ul><li>They keep track of gold price so closely </li></ul>
    27. 27. Why Does Vietnamese Keep Gold? <ul><li>Gold price tends to rise over time (a stored of value) </li></ul><ul><li>Gold divided into extremely small portions, easily transported & kept for a long time </li></ul><ul><li>Gold purchased & exchanged easily </li></ul><ul><li>Dong devaluation </li></ul>
    28. 28. Gold in Eyes of Investors
    29. 29. Who are Gold Investors? <ul><li>Central banks </li></ul><ul><li>Gold speculators </li></ul><ul><li>Financial institutional organizations </li></ul><ul><li>Gold producers </li></ul><ul><li>Private investors </li></ul>
    30. 30. Why Do We Invest in Gold? <ul><li>Gold as portfolio diversifier </li></ul><ul><li>Gold as an inflation hedge </li></ul><ul><li>Gold as dollar / VND hedge </li></ul><ul><li>Gold as safe haven asset </li></ul>
    31. 31. Investment Vehicles in Gold Market <ul><li>Gold bars / coins </li></ul><ul><li>Gold exchange-traded products </li></ul><ul><li>Gold accounts </li></ul><ul><li>Gold certificates </li></ul><ul><li>Gold futures and options </li></ul><ul><li>2, 3, 4 and 5 are forbidden, 1 is going to be prohibited in Vietnam </li></ul>
    32. 32. Factors Influenced Gold Price <ul><li>Central banks’ decisions </li></ul><ul><li>Inflation </li></ul><ul><li>Interest rates of USD, EUR </li></ul><ul><li>US economy </li></ul><ul><li>Oil price </li></ul><ul><li>Crisis </li></ul><ul><li>Demand & Supply </li></ul><ul><li>Investor’s psychology </li></ul>
    33. 33. Investor’s Psychology - Crazy for Gold <ul><li>Crazy for buying / selling gold </li></ul>
    34. 34. Investor’s Psychology - Crazy for Gold (cnt.)
    35. 35. Gold Investment Strategies <ul><li>Fundamental analysis </li></ul><ul><li>Technical analysis </li></ul><ul><li>Gold versus stocks </li></ul>
    36. 36. Risks Associated with Investing in Gold <ul><li>Market risk </li></ul><ul><li>Legal risk </li></ul><ul><ul><li>Changed policy </li></ul></ul><ul><ul><li>Foreign gold account </li></ul></ul><ul><li>Risks related to quality of gold </li></ul>
    37. 37. Gold in Eyes of Lovers
    38. 38. Lovers’ Conversation <ul><li>Male: Will you marry me? </li></ul><ul><li>Female: </li></ul>How much gold do you have?
    39. 39. Q & A
    40. 40. Preferences <ul><li>World Gold Council, http:// / </li></ul><ul><li>http:// </li></ul><ul><li>http:// / </li></ul><ul><li>Saigon times </li></ul>