Viet Nam's super wealthy likely to get richer

Saturday, Mar 14, 2015 11:13

Customers purchase clothes at the S-Bird store in Trang Tien Plaza, Ha Noi. The number of Vietnamese citizens with US$30 million or more in total assets is expected to double by 2024, according to the 2015 Wealth Report by Knight Frank. — VNA/VNS Photo Truong Vi

HA NOI (Biz Hub)— Viet Nam's number of ultra-high-net worth individuals (UHNWIs) - people who have US$30 million or more in total assets - is set to double by 2024, according to the 2015 Wealth Report by Knight Frank.

Last year the population of UHNWIs in Viet Nam grew to 116, six higher than in 2013. The country's rich population was deemed the quickest growing in the world. It's set to increase 159 per cent to about 300 by 2024. Viet Nam is followed by Indonesia with 132 per cent and the Ivory Coast with 119 per cent.

According to the report, the global UHNWI population last year was 172,850. Their wealth totalled $20.8 trillion.

The global UHNWI population will reach 230,000 by 2024, according to the report. London had more than 4,300 wealth residents – the highest in the world. New York in the US was ranked second.

About 1,180 people became centa-millionaires in 2014, taking the world's total population of those worth over $100 million to 38,280. At the top of the wealth tree, 53 individuals became billionaires last year, pushing global membership of this exclusive club to 1,844 – an 82 per cent rise from the number recorded in 2004.

North America trumped

Asia overtook North America as the region with the second biggest UHNWI growth. Some 1,419 people moved past the $30 million mark in Asia in 2014.

The ultra-wealthy in Asia now also hold more in total wealth, with net assets of $5.9 trillion, than those in North America, with $5.5 trillion. However, with a $6.4 trillion treasure chest, European UHNWIs still control the most wealth.

On average, cities across that region will see 91 per cent growth in their UHNWI populations over the next decade. The most rapid growth in wealth will be seen in the likes of HCM City, Jakarta, Mumbai and Delhi.

The number of UHNWIs continued to increase last year, despite weak global economic growth due to political tensions, plunging oil prices and the withdrawal of fiscal stimulus measures in the US.

"The positive outcomes for developed economies at the start of 2014 positively influenced wealth creation," said Ouliana Vlasova, head of content at Wealth Insight. "However, that picture changed throughout the year. The growth in wealth could perhaps have been bigger, had the world economy picked up more strongly in the second half of last year."

The outlook for the rest of this year is also mixed. Although the IMF has downgraded its forecasts for annual growth in world output from 3.8 per cent to 3.5 per cent, this is still slightly stronger than growth in 2014. Emerging economies are expected to grow by 4.3 per cent, compared with 2.4 per cent for developed economies. — VNS

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