Gold Demand in Vietnam Seen Plunging as Inflation Slows

Gold consumption in Vietnam, the largest Southeast Asian user after Thailand, will probably shrink by more than half this year after global prices fell, the currency stabilized and the government tightened rules.

Demand may drop to 25 metric tons to 30 tons from 60 tons to 70 tons in 2013, said Nguyen Thanh Long, chairman of the Vietnam Gold Traders Association, which represents traders, jewelers and banks with trading licenses. Citizens may be holding as much as 300 tons, he said, valued at $12.5 billion.