VWAS 2024: Adapting to Uncertainties

VWAS 2024: Adapting to Uncertainties

VIR's editor-in-chief Le Trong Minh said that the world is not currently in a favourable condition, including many complex and unpredictable developments, with risks from the world political and economic environment negatively impacting Vietnam's economic growth recovery prospects, creating great pressure on macroeconomic management.

"Forecasting and response work is increasingly difficult and passive," Minh said.

Tran Quoc Phuong, Deputy Minister of the Planning and Investment, said that challenges came from both in house and outside, the pressure on economic management is huge.

"It is quite hard for us to manage an economy in modest scale, of limited resilience and competitiveness, and being greatly influenced by external influences like. How to adapt to change is quite a headache," Phuong said. "The requirement is to closely monitor, quickly grasp the situation, make early forecasts for timely policy adjustments and responses, and adapt in both the short, medium and long term. That means we must know how to 'adapt to uncertainties' - the topic set by today's forum."

"It is necessary to continue to promote and renew traditional drivers of investment, consumption, and export; take advantage of opportunities from new growth drivers and new economic models, such as digital transformation, green transformation, circular economy, sharing economy, or new industries like chip production, semiconductors, and renewable energy," Phuong said.

Minh said he appreciated the role of professional, reputable advisors in asset management and increasing investment value with a wealth of experience, knowledge, and the undeniable confidence in preservation of assets.

"Like brave navigators, these advisors will be very necessary and useful fulcrums, especially against 'big waves and strong winds' and supporting investors, who are not familiar and have poor experience," Minh said.

Asset management and estate management services have long been popular in developed countries globally. According to TechsciResearch, the global Wealth Management is valued at $1.1 trillion by 2022 and is expected to grow strongly with a compound average growth rate of 9.85 per cent for until 2028.

However, financial instability and slow growth in major economies have caused capital flows in the asset management market to gradually shift to emerging markets, including Southeast Asia, where strong economic growth is leading to a rapid increase in the wealthy investor class.

Thailand and Vietnam are expected to soon be the two most developed asset management markets in the region. McKinsey's report said that by 2027, Vietnam is predicted to become a personal financial advisory (PFA) market worth about $600 billion, growing at an annual rate of 11 per cent, from PFA basically about $360 billion at the end of 2022.

Personal wealth management assets in Vietnam in 2022 reached $45-52 billion, with revenue of $500 million.

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