Vietnam's ultra-high-net-worth individuals increase by 2.4%

By VNA   March 8, 2024 | 06:09 pm PT
Vietnam's ultra-high-net-worth individuals increase by 2.4%
Shoppers at a mall in Ho Chi Minh City. Photo by VnExpress
The number of ultra-high-net-worth individuals (UHNWIs) in Vietnam with net assets of 30 million or more increased by 2.4% to 752 in 2023, according to Knight Frank’s Wealth Report 2024 published recently.

The report also predicts the UHNWIs population in Vietnam will grow to 978 in 2028, meaning an increase of around 30% in the five-year period.

The report pointed out that the number of UHNWIs globally rose 4.2% to 626,619 from 601,300 a year earlier, with nearly 70 very wealthy investors minted every day.

Growth was led by North America (up 7.2%) and the Middle East (6.2%), with only Latin America seeing its number of wealthy individuals fall. While Europe lagged in terms of new wealth generation, the continent remains home to the wealthiest 1%.

In terms of key country performance, Turkey leads the rankings with a 10% expansion in UHNWI numbers, followed by the U.S. at 8%.

"The rise in wealth creation was supported by global economic growth and the improved fortunes of key investment sectors," the report wrote.

In the first half of 2023, despite ongoing rate tightening and rising bond yields, equities surged on the back of enthusiasm surrounding AI. Even as this trend waned in the second half of the year, declining inflation and the anticipation of earlier and more substantial rate cuts provided renewed momentum to equity markets.

The S&P Global 100 delivered a 25.4% annual increase in 2023, albeit this was hugely flattered by the outstanding performance of the "magnificent seven" U.S. tech stocks, the report pointed out.

It noted: "Against a challenging backdrop, the past 12 months saw an uptick in wealth creation, driven by the robust performance of the U.S. economy, a recovery in equity markets and a shift in outlook for interest rates.

"Despite slower global growth this year, the revival of wealth creation looks set to remain with us. Our model points to strong outperformance from Asia, with high growth in India (50%), the Chinese mainland (47%), Malaysia (35%) and Indonesia (34%)."

A recent report by global wealth intelligence firm New World Wealth and investment migration advisors Henley & Partners also pointed out that Vietnam is set to see the sharpest spike in wealth growth over the next decade as it cements its status as a global manufacturing hub.

Vietnam is forecast to see a 125% increase in wealth over the next 10 years. This would be the largest expansion in wealth of any country in terms of GDP per capita and number of millionaires, according to the report.

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