Vietnam’s financial commission says banks and individuals are storing more than $21 billion — and possibly as much as $45 billion — worth of gold, second in the world behind India. The World Gold Council ranks Vietnam among the top five gold hoarders but may not adequately take into account what’s in the walls and under the floorboards of private homes.
Because Vietnam may hold a quarter of the world’s gold, its currency may be less stable than it needs to be to promote economic growth. Some economists advocate for a state-supervised national gold trading center to improve transparency and reduce price disparities. But the government bank wants to ban gold trading and eliminate gold as a means of payment in Vietnam — which challenges cultural tradition that makes Vietnam, for example, the biggest importer of gold products from Switzerland.
Overall, Vietnamese citizens spent $878 million to import 19 tons of gold in the first quarter of this year, up 28% in value and 2% in volume.
More on gold hoarding in Vietnam