The number of ultra-high-net-worth individuals (UHNWIs) in Vietnam, who boast a net worth of $30 million or more, increased by 2.4 per cent during 2023, according to the latest edition of The Wealth Report, the flagship publication from property consultants Knight Frank.

Vietnam saw its UHNWI population increase from 734 in 2022 to 752 in 2023, with 18 individuals joining the cohort. Knight Frank forecasts 30 per cent growth in the number of affluent individuals in Vietnam by 2028, with UHNWIs to reach 978.

This is in line with the observation that Vietnam is set to see the sharpest spike in wealth growth over the next decade as it cements its status as a global manufacturing hub, according to a report from global wealth intelligence firm New World Wealth and investment migration advisors Henley & Partners.

In particular, the report revealed that Vietnam is forecast to see a 125 per cent increase in wealth over the next decade. This would be the largest expansion in wealth of any country in terms of GDP per capita and number of millionaires, according to New World Wealth.

“Vietnam is an increasingly popular manufacturing base for multinational technology, automotive, electronics, and clothing and textile firms,” said Mr. Andrew Amoils, an analyst at New World Wealth. Home to 19,400 millionaires and 58 centimillionaires (those with wealth in excess of $100 million), Vietnam is perceived to be relatively safe compared to elsewhere in the Asia-Pacific, which provides companies with an extra incentive to set up manufacturing operations in the country.

Globally, according to the Knight Frank report, the number of UHNWIs rose 4.2 per cent in 2023 to 626,619 from 601,300 a year prior, which more than reversed the decline seen in 2022. Regional-level wealth creation was led by North America (7.2 per cent) and the Middle East (6.2 per cent), with Latin America the only region to see its population of wealthy individuals shrink. In terms of key country performance, Turkey leads the rankings with a 10 per cent expansion in UHNWIs, followed by the US with 8 per cent.

The rise in wealth creation was supported by global economic growth and the improved fortunes of key investment sectors, the report noted. 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 hugely flattered by the outstanding performance of the “Magnificent Seven” US tech stocks.

In terms of future prospects, Knight Frank expects the number of wealthy individuals globally to rise 28.1 per cent during the five years to 2028. While positive, their forecast points to a rate of expansion noticeably slower than the 44 per cent increase experienced in the five-year period to 2023.