Vietnam’s wealth is projected to surge by 125 percent over the next decade, as indicated by a report jointly released by global wealth intelligence firm New World Wealth and investment migration advisors Henley & Partners on January 30.
The report highlights Vietnam’s expected substantial growth in wealth over the next ten years, solidifying its position as a key global manufacturing center. This projected increase in wealth, at 125 percent, would mark the most significant expansion in wealth among all countries, considering GDP per capita and the number of millionaires.
Andrew Amoils, Head of Research at New World Wealth, noted, “Vietnam is increasingly becoming a favored manufacturing hub for multinational technology, automotive, electronics, and textile companies.”
India, poised to become the world’s third-largest economy by 2027, follows closely with an anticipated 110 percent wealth growth.
Amoils added, “Vietnam boasts 19,400 millionaires, including 58 centimillionaires, and is perceived as a relatively secure nation compared to others in the Asia-Pacific region. This factor serves as an additional incentive for companies to establish manufacturing operations in the country.”
According to HSBC, Vietnam’s remarkable development over the past two decades has led to a rise in wealth, driving increased discretionary spending. While motorcycles remain the primary mode of private transport, with a 70 percent ownership rate, there has been a gradual increase in car purchases.
HSBC highlights that incomes have outpaced expenditure growth, contributing to the rise in consumption. Moreover, the emergence of a middle class has attracted the attention of international companies seeking to cater to the growing demands of Vietnamese households. Notably, there has been a significant uptick in Japan’s foreign direct investment in Vietnam’s retail and financial sectors.