The way the 100 richest Vietnamese families earn their money
VietNamNet Bridge – Most of the Vietnamese millionaires have got rich from their investments in the real estate sector.
The statistics showed that 26 percent of the 30 richest stock millionaires in Vietnam have got enriched from their real estate investments. This means that nearly 1/3 of the rich earn their money from the real estate sector.
Pham Nhat Vuong, the only Vietnamese who has his name listed in Forbes’ list of the world’s richest people with the $1.5 billion worth of assets, is also a big real estate developer.
Vuong started up his business as a fast food manufacturer and a real estate trader in a foreign country. However, since the day he returned to Vietnam, Vuong has been mostly pouring money into the real estate sector.
Doan Nguyen Duc, a tycoon, once made wooden furniture and invested in production factories, but he got enriched with the real estate investments. Only recently have the local newspapers reported that Duc has announced he would gradually quit the real estate sector, while now focusing on the rubber plantation and hydropower plants.
It is explainable why many Vietnamese businessmen have got enriched from the land. In early 1990s. many businessmen realized that while the living standards began improving, Vietnamese still had to live in the residential quarters with poor conditions.
Some of them, who had idle money which they earned from doing business overseas, decided to buy land, build houses and apartments in the land for sale.
The land plots in the central area, which were the factories, the offices or the old residential quarters, were then cleared to give place to the projects on high rise buildings, hotels or shopping malls for leasing to businesses, banks or foreign groups.
The real estate developers then could earn big money, because they bought the land at the time when the land was dirt cheap, and sold later when the prices skyrocketed because of the sharp rise in the demand caused by the hot economic development.
A report showed that the 100 richest families in Vietnam are the ones which do business in the fields as follows: the real estate investments, finance and banking, mining and seafood, service and communication sectors.
Meanwhile, the technology and telecommunication is the sector which sees the highest number of billionaires. This is followed by the natural resource exploitation, retailing, finance and investment. Especially, analysts have noted that few people have got enriched from the real estate investments.
The names of the rich people in the world have been usually associated with their famous products, such as aircrafts, ships, cars, computers or mobile phones, i.e. the manufacturing sectors that require high technologies. The people have been mostly enriching themselves with their intelligence.
The US’ richest person Bill Gates has been well known for his computing company Microsoft. The South Korean richest person is the owner of Samsung, an electronics and digital product manufacturer.
Vietnamese people are believed to get rich in another way in comparison with the billionaires in the world. The only way for Vietnamese to get rich in a sustainable way is to develop not on the basis of the land or natural resources, but on the grey matter in working.