The number of ultra-wealthy individuals in Vietnam will expand at the world’s fastest pace over the next decade, Knight Frank said in its latest The Wealth Report.
The Wealth Report is an annual publication from the UK residential and commercial property consultancy which outlines a global perspective on wealth and investment opportunities and strategies.
The report gives per country data about the number of UHNWIs, or ultra-high-net-worth individuals, in each country.
A UHNWI is classified as someone with a net worth of over US$30 million, excluding their primary residence while HNWIs, or high-net-worth individuals, are considered those with a net worth of over US$1 million, excluding their primary residence.
According to the 2017 report, Vietnam had 200 UHNWIs in 2016 and the number is forecast to jump to 540 by 2026, or 170 percent – the highest rate of growth in the world.
“Millionaire numbers are expected to jump from 14,300 to 38,600 over the same period,” the report reads, adding that the dramatic growth of UHNWIs in Asia is set to be reinforced by stellar growth rates in several countries, including Vietnam.
The World Bank has described the transformation of the Vietnamese economy over the last 25 years as “remarkable,” with economic and political reforms translating into higher incomes.
Although the bank warns that the country is vulnerable to economic and environmental shocks, the outlook for the economy remains strong, with average GDP growth of approximately six percent forecast annually until 2020.
“We expect Vietnam millionaire numbers to be boosted by strong growth in the local healthcare, manufacturing and financial services sectors,” the report quotes Andrew Amoils, head of research at New World Wealth, a global wealth intelligence and market research company.
According to the report, Vietnam had only one U.S. dollar billionaire in 2016 and is expected to have three by 2026.
On the global scale, the report points out that the number of individuals with $30 million or more in net assets, defined as UHNWIs, rose by 6,340, boosting the total ultra-wealthy population to 193,490 last year.
“Some 60 people saw their wealth move past the $1 billion mark, taking the total number of billionaires to 2,024, an increase of 45 percent in the past decade,” it says.
Source; Tuoi Tre News