How much does it take to be in top 1 per cent of Vietnam's richest?

July 20, 2021 | 11:11
By 2025, Vietnam will have 511 ultra-high-net-worth individuals (UHNWI) with a net worth of over $30 million including their primary residence, according to Knight Frank.
How much does it take to be in top 1 per cent of Vietnam's richest?

Specifically, in 2020, Vietnam had 19,419 high-net-worth individuals with a net worth of over $1 million, including their primary residence.

This figure is 6 per cent lower than that of 2019.

Vietnam, accordingly, ranked fourth in the Southeast Asian region, behind Singapore, Indonesia, and Thailand.

Furthermore, in terms of ultra-high-net-worth individuals (UHNWI – those with a net worth of over $30 million including their primary residence) Vietnam ranked sixth in the ASEAN-6 countries, with 390 individuals in 2020.

Knight Frank predicts the country will have 511 UHNWI by 2025 due to its impressive economic growth.

According to Forbes, as of July 1, Vietnam had six USD billionaires with total assets of up to $19.2 billion, also ranking sixth in Southeast Asia. Topping the list of Vietnamese dollar billionaires is Pham Nhat Vuong, chairman of the Board of Directors of Vingroup with a fortune of $8.1 billion.

Knight Frank also estimates that Vietnam's HNWI growth rate in the 2020-2025 period will be 32 per cent, while the growth rate of UHNWI will be 31 per cent.

To make it into the group of the top 1 per cent in terms of wealth in Vietnam, according to Knight Frank, Vietnamese people need to own $160,000. This figure is $2.9 million in Singapore; $540,000 in Malaysia; and $60,000 in Indonesia and the Philippines.

Elsewhere, Monaco has the world’s densest population of the super rich. The entry point for the principality’s 1 per cent club – the world’s most exclusive – is $7.9 million.

“In second place comes the home of private banks, Switzerland, where $5.1 million gains you access, followed by the US, which has the highest number of UHNWI residents. Here, $4.4 million is your ticket to 1 per cent status,” the report said. “The Chinese Mainland is also forecast to see its 1 per cent threshold rise by almost 70 per cent from $850,000 in 2020. This reflects rising wealth but, as elsewhere, growth is not uniform. Wealth inequality has become starker within countries and globally, particularly as a result of the COVID-19 pandemic, and this is likely to become a point of growing contention.”

Singapore, in fourth place, is Asia’s highest entry, marginally ahead of Hong Kong, with the level of wealth required being $2.9 million and $2.8 million, respectively.

“New Zealand sets a $2.8 million barrier – $80,000 more than you would need in neighbouring Australia,” Knight Frank noted.

By Lam Tien

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