Rise of “New Wealth Builders” seen in Vietnam

April 02, 2015 | 16:17
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Economist Intelligence Unit (EIU) has just issued a global report of The New Wealth Builders, which is sponsored by Citi, revealing that the new wealth builders in Vietnam will grow 34.9 per cent in period of 2014-2020.

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According to the report, new wealth builders today have $88 trillion in global assets and are expected to grow at a compound annual growth rate of 7.1 per cent, to reach $145 trillion by 2020. Since 2010, the group has grown faster than any other wealth sector— including high net worth or mass market segments—and is forecast to grow even faster in the next decade.

Vietnam is among three Asian emerging economies having high growth rate of new wealth builders in future, following India (47.4 per cent) and Indonesia (41.2 per cent). Meanwhile, the growth rate in Thailand is 23.6 per cent, and the Philippines is 22.8 per cent.

“New wealth builders represent an increasingly important phenomenon in the world economy driving growth in savings and economic activity more generally. They are typically self-made, socially conscious and sharply focused on growth,” said Jonathan Larsen, global head of Retail Banking and head of Consumer Banking, Asia Pacific, Citi.

Additionally, the EIU predicts robust economic expansion in Vietnam through 2018, with 35 per cent. Analysts foresee a steady acceleration in private consumption growth that will shake off the effects of the spiraling inflation of 2011- 2012.

Economic performance surpassed expectation in 2014, prompting the EIU to raise expectations for 2015. Credit is given to a steady increase in private consumption growth, rooted partly in stable price conditions and accelerating wage growth. Conditions favourable to new wealth builders in Vietnam should prevail for the next two decades, the EIU predicts.

Citi serves customers including new wealth builders around the world by providing retail and wealth management services through Citibank, Citigold and Citigold Private Client. In Vietnam, Citi offers Citigold services to emerging affluent customers across the country.

By By Ngoc Linh

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