Vietnam Poised for Greatest Wealth Expansion in the Coming Decade

Vietnam is poised to experience the most significant surge in wealth growth globally over the next decade as it positions itself as a key global manufacturing hub. According to forecasts from New World Wealth, the country is expected to see a staggering 125% increase in wealth, marking the largest expansion in terms of GDP per capita and the number of millionaires.

A woman (L) walks past as a girl poses for photographs outside a luxury store along a street in Hanoi on May 25, 2023. Photo by AFP/Manan Vatsyayana

Currently, Vietnam boasts 19,400 millionaires, with 58 of them possessing wealth exceeding $100 million. Additionally, Forbes reports that the country is home to five billionaires with a combined net worth of $11.8 billion.

Property consultancy Knight Frank has echoed similar sentiments, predicting a substantial increase in high-net-worth individuals in Vietnam, reaching 112,000 by 2027, representing a 173% increase over the decade. High-net-worth individuals are defined as those with assets worth at least $1 million.

This upward trend aligns with broader patterns observed in Asia, where countries like Singapore, Malaysia, and Indonesia have experienced similar growth trajectories.

The growth in Vietnam's wealth is largely attributed to its emergence as a global manufacturing hub, supported by substantial foreign investment. Management consulting firm McKinsey & Company highlights Vietnam's strategic location, improving infrastructure, and export-focused manufacturing sector, which contributes around 25% to its GDP, as key factors driving its remarkable growth.

Despite challenges such as the COVID-19 pandemic, Vietnam's GDP has continued to grow steadily, reaching $4,163.5 per capita in 2022, nearly doubling over the past decade. Last year, despite a slight dip in GDP growth to 5.05% from 8.03% in 2020, Vietnam's economy outperformed many others globally.