Specifically, responding to CNBC, Andrew Amoils, an analyst at New World Wealth, said Vietnam’s wealth is projected to increase by 125% over the next 10 years. According to the company’s analysis, this will be the highest asset growth rate compared to any country when considering per capita GDP and the number of millionaires.
The term ‘asset growth’, according to New World Wealth, refers to the increase or decrease in the number of millionaires over a certain period of time as a percentage, calculated based on the following factors: national GDP forecast; Competitive advantage of certain countries or cities; Recent migration trends of millionaires…
After Vietnam, the report says, India will be the second highest economic growth in asset, with an expected growth rate of 110%.
“Vietnam’s multi-national technology, automotive, electronics, clothing and textile manufacturing base is increasingly high. With over 19,000 millionaires, Vietnam is considered a relatively safe country compared to other countries in the Asia-Pacific region, giving companies more incentives to establish production activities in this country,” the expert said.
According to McKinsey, Vietnam is a strategically located country with a land border with China and close to major maritime trade routes. Not only that, low labor costs, as well as the country’s export-supporting infrastructure, are also factors that support Vietnam in becoming a “top destination” for international investment.
Data from the World Bank shows that just 10 years ago, Vietnam’s per capita GDP was about $2,190, nearly doubling to $4,100.
“Vietnam is developing rapidly and most people are benefiting,” said Andy Ho, Chief Investment Officer of VinaCapital, to CNBC
Is Vietnam a magnet for FDI?
Andy Ho said that Vietnam is also benefiting from US-China trade competition. Accordingly, more and more multinational companies are diversifying their production to Vietnam. FDI in Vietnam in 2023 increased by 32% compared to the same period.
“Foreign investment has created good jobs with decent salaries and helped millions of Vietnamese people improve their quality of life,” said VinaCapital’s Chief Investment Officer.
“Vietnam’s growth story is driven by industrialization with export as the focus, driven by three waves of foreign direct investment over the past three decades, and the country is facing the fourth wave,” said Brian Lee, economist and Vice Chairman of Maybank.
However, alongside the opportunities, experts also point out some barriers that could hamper Vietnam’s rapid growth.
In particular, Vice Chairman of Maybank Brian Lee noted that the country’s workforce will need to be trained more to meet the needs of complex production activities and require many skills.
According to Andy Ho, the prolonged global economic recession can also impact consumer demand in developed markets, which can affect Vietnam’s manufacturing and exporting sectors. Any “sharp devaluation” of currencies can also hinder the work.
However, the expert confirmed that Vietnam can completely overcome the challenges that may arise in the future.
“It will take a long time for the country to deviate from the current growth path,” emphasized Andy Ho.
Source: CNBC
