The Rich List: Number of Vietnam’s Ultra-High Net Worth Individuals to Increase

April 10, 2014 Posted by Vietnam Briefing Reading Time: 3 minutes

HANOI – In its 2014 Wealth Report, real estate consultancy Knight Frank has found that, over the next decade, Vietnam will have the fastest growing amount of ultra-high net worth individuals (UHNWI) in the world.

A UHNWI is a person possessing US$30 million or more in net assets, not including their principle residence.

RELATED: Dezan Shira & Associates’ Asia Business Model Comparison Services

Vietnam’s UHNWI numbered 110 in 2013. This number is predicted to reach 293 by the end of the next decade; this would be a growth of 166 percent – the largest increase in all the countries assessed.

Indonesia will be in second place with a growth of 144 percent. The United States still leads the list of the countries with the highest amount of UNHWI.

Vietnam’s economic center Ho Chi Minh City (HCMC) is expected to top the list of cities with the largest increases in the number of UHNWI – a 173 percent increase over 10 years. However, the report points out that HCMC, like many of the other cities topping the list, is starting from quite a low number of UHNWI.

Indonesia’s capital, Jakarta, will see the second highest growth in UHNWI. The city with the highest number of UHNWI is London.

Knight Frank states that the key reasons for Vietnam’s fast growing number of UHNWI are that:

Foreign investors have been allowed to take larger stakes in the country’s lenders, thus helping rehabilitate the banking system;
The limits on foreign ownership of listed companies are to be further loosened;
The country has successfully rebalanced the economy away from agriculture to industry and manufacturing; and
Inflation has been brought under control.

All of these factors are predicted to provide further opportunities for wealth creation in the country over the next 10 years.

In a strong sign of the wealth creation to come, 2014 is shaping up to be a positive financial year for the country so far. Vietnam’s General Statistics Office has recently released updated economic numbers for the first quarter (Q1) of 2014. The numbers released have been generally positive and reflect a growing consensus that the country is beginning to move back into a higher growth period.

GDP for the country was estimated to be at 4.96 percent. This was the highest level GDP has been at for Q1 in over three years.

Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam in addition to alliances in Indonesia, Malaysia, Philippines and Thailand as well as liaison offices in Italy and the United States.

For further details or to contact the firm, please email vietnam@dezshira.com, visit www.dezshira.com, or download our brochure.

You can stay up to date with the latest business and investment trends across Vietnam by subscribing to Asia Briefing’s complimentary update service featuring news, commentary, guides, and multimedia resources.

Related Reading

A Guide to Understanding Vietnam’s VAT
In this issue of Vietnam Briefing, we clarify the entire VAT process by taking you through an introduction as to what VAT is, who and what is liable, and how to pay it properly. We first take you through the basics of VAT in Vietnam before taking you deeper into the topic. Additionally, we provide updates on the new changes to the VAT process and explain how they will impact your business. The magazine is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore until the end of April.

Has Vietnam Fallen into the Middle Income Trap?

Vietnam Economic Update for Q1 2014

Ho Chi Minh City Sees Economy Improve

Cheers to Vietnam: Competition on the Rise in Vietnam’s Beer Industry

McDonald’s Supersizes its Business in Vietnam

FDI Inflows Soar in Vietnam

Vietnam’s Agricultural Sector Sees Strong Growth Thanks to FDI