Vietnam sees 82 per cent rise in ultra-high-net-worth individuals

May 31, 2023 | 18:12
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The number of ultra-high-net-worth individuals (UHWNIs) in Vietnam with a net worth exceeding $30 million stood at 583 in 2017, but by the end of last year, this figure had surged to 1,059, marking an 82 per cent increase in just five years, cited a report by Knight Frank.

Projections from the report suggest that by 2027, the number of UHNWIs in Vietnam will approach 1,300, representing a further 22 per cent increase from the current level and a staggering 122 per cent growth over a 10-year period.

Vietnam sees 82 per cent rise in ultra-high-net-worth individuals
Vietnam sees 82 per cent rise in ultra-high-net-worth individuals, illustration photo

Moreover, Vietnam's high-net-worth individuals, or defined as individuals with assets exceeding $1 million, have also seen a substantial rise, with a 70 per cent increase over the past five years. It is expected that this segment will experience a remarkable surge of 173 per cent over the span of a decade, from 2017 to 2027.

This shift in the affluent and super-rich population in Vietnam aligns with the broader trend of prosperity across Asia. Singapore, Malaysia, and Indonesia have emerged as the markets with the fastest-growing population of UHNWIs, experiencing growth rates of around 7-9 per cent. In the Asia-Pacific region, the number of these super-rich individuals has witnessed a dramatic surge of nearly 51 per cent within a five-year period, ending in 2022.

Although predictions suggest a slowdown to 40 per cent growth over the next five years, the region still remains at the forefront of global wealth expansion.

Christine Li, director of Asia-Pacific Research at Knight Frank, said, "Following a record growth rate of 7.5 per cent in 2021, the population of UHNWIs in the Asia-Pacific region experienced a 5.7 per cent decline in 2022. However, three of the top ten markets globally with the strongest growth in UHNWIs are Southeast Asian countries - Singapore, Indonesia, and Malaysia - with growth rates ranging from 7-9 per cent. Looking ahead, this region still holds significant potential and prospects for prosperous development."

Victoria Garrett, director of Residential Real Estate Services in the Asia-Pacific region at Knight Frank stated that despite the decrease in the number of super-rich individuals last year, the population of individuals with assets valued at $1 million or above still grew by 2.9 per cent, reaching nearly 70 million worldwide.

Accordingly, the top three countries in this regard were Malaysia, Brazil, and Indonesia. Additionally, the top 100 luxury real estate markets globally saw an average price increase of 5.2 per cent, with premium investment assets witnessing a 16 per cent surge.

According to forecasts, the top ten global growth leaders will continue to be dominated by European and Asian economies. Economic growth in the Asia-Pacific region will remain concentrated in urban areas, with the high-end residential real estate market predominantly determined within urban segments. Given the high urbanisation rate in the region, investors can expect a more sustainable growth trajectory and enhanced asset consolidation.

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By Nhat Minh

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