The number of ultra-high net worth individuals (UHNWI) in Vietnam almost doubled between 2017 and 2022, according to Knight Frank’s latest report.
From 583 individuals with a net worth in excess of $30 million in 2017, the number rose to 1,059 by the end of last year, representing growth in the category of 82% in the period, the property services firm said Tuesday in its flagship report “The Wealth Report”.
Knight Frank is predicting this number to grow to just under 1,300 by 2027, another 22% growth, and representing growth in the UHNWI category of 122% for the decade.
This is mirrored by growth in the High Net Worth Individuals (HNWI) category for Vietnam, which saw individuals with a net worth exceeding $1 million grow by 70% in the past five years, and set to expand by an incredible 173% in the decade from 2017-2027, according to the report.
This was part of an Asia-wide growth trend that saw Singapore, Malaysia, and Indonesia rank as part of the top 10 fastest-growing UHNW markets, seeing their wealth populations expand by 7-9%.
Knight Frank noted that in Asia Pacific, the UHNW population experienced a substantial growth of nearly 51% within the period spanning five years leading up to 2022. Although growth is forecasted to slow to 40% over the next five years, the region still leads the world in wealth creation.
According to the report, the Asia-Pacific population of UHNWIs declined by 5.7% in 2022 after a record climb of 7.5% in 2021.
Christine Li, head of research at Knight Frank Asia-Pacific, said: “Despite so, three out of 10 markets that saw the fastest-growing UHNWIs globally were from Singapore, Indonesia, and Malaysia at 7-9%.”
She said, “Taking the longer view, the wealth story remains compelling as the region will continue to lead the pack in the unending wealth expansion with plenty more opportunities for UHNWs to discover.”
Victoria Garrett, head of residential at Knight Frank Asia-Pacific, said that while the UHNW population contracted last year, the number of high-net-worth individuals (HNWIs), those with $1 million or more in net assets, expanded by 2.9% to almost 70 million worldwide. The top three countries for HNWIs’ growth were Malaysia, Brazil and Indonesia.
Garrett added that 100 prime residential markets globally saw average price growth of 5.2% and luxury investment assets grew 16%. The top 10 global locations for forecast growth are dominated by European and Asian economies.
“The region’s economic growth story will remain urban-centric, and its residential investment landscape will continue to be defined by its prime urban cores. Underpinned by its high rates of urbanization, investors can look forward to a more sustainable growth trajectory and wealth preservation profile,” she elaborated.
Knight Frank’s Wealth Report issued in March this year showed that Vietnam was in the top 5 destinations for ultra-high net worth individuals in Singapore seeking property investments abroad.
Ho Chi Minh City, Vietnam’s southern economic hub, ranked third for affordable luxury condominiums after Sao Paulo (Brazil) and Cape Town (South Africa), according to the March report.