Vietnam to see largest expansion in wealth growth over the next decade

A woman (L) walks past as a girl poses for photographs outside a luxury store along a street in Hanoi on May 25, 2023. Photo by AFP/Manan Vatsyayana

Vietnam will see the biggest surge in wealth growth in the world over the next decade as it positions itself as a global manufacturing hub.

It is forecast to see a 125% increase in wealth, according to global wealth intelligence firm New World Wealth.

This would be the largest expansion by any country in terms of GDP per capita and number of millionaires, it said.

The country currently has 19,400 millionaires, 58 of them with more than $100 million in wealth, according to New World Wealth.

It also has five billionaires with a combined net worth of $11.8 billion, according to Forbes.

Property consultancy Knight Frank also issued a similar prediction in a note last May.

It said the number of high-net-worth individuals in Vietnam would increase to 112,000 by 2027, marking a 173% increase over a decade.

Knight Frank defined high-net-worth individuals as those with assets worth at least $1 million.

This rise in the number of wealthy individuals aligns with general trends in Asia, where similar patterns have been seen in countries like Singapore, Malaysia and Indonesia, it said.

CNBC said the growth is achievable thanks to its rise as a global manufacturing hub and support from foreign investment.

Management consulting firm McKinsey & Company said in a report that with many advantages such as a strategic location and improving infrastructure focused on exports, Vietnam’s manufacturing sector, which accounts for around 25% of its GDP, plays a crucial role in its remarkable growth.

Another huge factor boosting Vietnam’s progress is foreign investment, which jumped by 32% to $36.6 billion last year.

These elements have grown the GDP steadily in recent years, including during the Covid-19 pandemic.

Last year GDP growth slid to 5.05% from 8.03% in 2022, but was still much higher than that of many other countries.

Over a decade its GDP per capita nearly doubled to $4,163.5 in 2022.