A corner of HCM City. The very wealthy population in Việt Nam is predicted to grow to 978 in 2028, an increase of around 30 per cent over the five year period. — VNA/VNS Photo Hồng Đạt

The number of ultra-high-net-worth individuals (UHNWIs) in Việt Nam with net assets of US$30 million or more increased by 2.4 per cent to 752 in 2023, according to Knight Frank’s Wealth Report 2024 published recently.

The report also predicts the UHNWIs population in Việt Nam will grow to 978 in 2028, meaning an increase of around 30 per cent in the five-year period.

The report pointed out that the number of UHNWIs globally rose 4.2 per cent to 626,619 from 601,300 a year earlier, with nearly 70 very wealthy investors minted every day.

Growth was led by North America (up 7.2 per cent) and the Middle East (6.2 per cent), with only Latin America seeing its number of wealthy individuals fall. While Europe lagged in terms of new wealth generation, the continent remains home to the wealthiest 1 per cent.

In terms of key country performance, Turkey leads the rankings with a 10 per cent expansion in UHNWI numbers, followed by the US at 8 per cent.

“The rise in wealth creation was supported by global economic growth and the improved fortunes of key investment sectors,” the report wrote.

In the first half of 2023, despite ongoing rate tightening and rising bond yields, equities surged on the back of enthusiasm surrounding AI. Even as this trend waned in the second half of the year, declining inflation and the anticipation of earlier and more substantial rate cuts provided renewed momentum to equity markets.

The S&P Global 100 delivered a 25.4 per cent annual increase in 2023, albeit this was hugely flattered by the outstanding performance of the “magnificent seven” US tech stocks, the report pointed out.

It noted: “Against a challenging backdrop, the past 12 months saw an uptick in wealth creation, driven by the robust performance of the US economy, a recovery in equity markets and a shift in outlook for interest rates.

“Despite slower global growth this year, the revival of wealth creation looks set to remain with us. Our model points to strong outperformance from Asia, with high growth in India (50 per cent), the Chinese mainland (47 per cent), Malaysia (35 per cent) and Indonesia (34 per cent).”

A recent report by global wealth intelligence firm New World Wealth and investment migration advisors Henley & Partners also pointed out that Việt Nam is set to see the sharpest spike in wealth growth over the next decade as it cements its status as a global manufacturing hub.

Việt Nam is forecast to see a 125 per cent increase in wealth over the next 10 years. This would be the largest expansion in wealth of any country in terms of GDP per capita and number of millionaires, according to the report. — VNS