According to the latest Wealth Report 2024 by Knight Frank, the prospect of changing interest rates, efficient operation of the US economy, and strong growth in the stock market have helped create global wealth.
Accordingly, in 2023, the number of Ultra-high-net-worth individuals UHNWI) increased by more than 4.2% compared to 2022. Specifically, with nearly 70 wealthy investors appearing every day, the total number of global investors in 2023 exceeded 626,600 individuals.
Among them, North America (up 7.2%) and the Middle East (up 6.2%) led the growth, with only Latin America witnessing a decrease in the number of wealthy people. While Europe lagged behind in generating new wealth, it remains the home of the wealthiest 1%.
The report by Knight Frank evaluates that although the global growth rate will slow down this year, the recovery of the wealth creation process seems to continue.
“We confirm our expectation that the number of wealthy individuals worldwide will increase by 28.1% in the 5 years leading up to 2028. Our model points out the strong superiority of Asia, with high growth rates in India (50%) and Mainland China (47%)”, the report stated.
Regarding Vietnam, the report noted that the number of ultra-rich individuals in the country in 2023 increased by 2.4% compared to 2022, bringing the total number of ultra-rich individuals to 752. Moreover, the report estimates that the number of ultra-rich individuals in Vietnam will increase to 978 individuals by 2028.
Prior to this, according to the report by New World Wealth, a global wealth asset company, and investment consulting firm Henley & Partners, Vietnam will experience the most explosive growth in wealth in the next decade, surpassing any other country in the context of the nation consolidating its position as a global manufacturing center.
Specifically, in response to CNBC, Mr. Andrew Amoils, an analyst at New World Wealth, said that Vietnam’s wealth is forecasted to increase by 125% in the next 10 years. According to the company’s analysis, this will be the highest increase in wealth compared to any country if considering the average GDP per capita and the number of millionaires.
After Vietnam, the report states that India will have the second-highest economic growth rate, with an expected growth rate of 110%.
“Vietnam’s status as a production base for multinational tech, automotive, electronics, clothing and textiles companies is increasingly high. With more than 19,000 millionaires, Vietnam is considered a relatively safe country compared to other countries in the Asia-Pacific region, which gives companies more impetus to establish production activities in this country,” the expert said.
According to McKinsey, Vietnam is a country with a “strategic position” as it shares a land border with China and is close to major maritime trade routes. Not only that, low labor costs, as well as the country’s export-supporting infrastructure, are also among the factors supporting Vietnam in becoming a “top destination” for international investment.
