Knight Frank, the UK-based consultancy firm, has released the Prosperity Report, revealing the criteria for entering the 1% richest people in the world.
This year’s report shows that although the top 1% may sound “fancy,” it is actually more attainable than the title of ultra-high-net-worth individual (UHNWI).
In various markets where Knight Frank conducted its survey, the asset value required to enter the top 1% is much lower than the $30 million threshold for the super-rich.
In the Asia-Pacific region, Singapore leads with an average required asset value of $5.2 million. The country has also been successful in attracting investment from wealthy individuals in Indonesia, Thailand, Malaysia, and Vietnam. However, Hong Kong remains the top destination for the upper class from mainland China.
The super-rich often enjoy premium services.
In Vietnam, there are an estimated 752 individuals with assets of $30 million or more in 2023, an increase of 2.4% compared to the previous year. Knight Frank’s Asset Valuation Model is dynamic, so the figures may vary and may not be consistent with the figures in print or previous publications.
This growth rate is lower than neighboring countries such as Malaysia (4.3%), Indonesia (4.2%), and Singapore (4%), but three times higher than Thailand at only 0.8%.
Knight Frank predicts that by 2028, the number of super-rich individuals in Vietnam will reach 978, an increase of about 30% compared to 2023, and will be among the top 5 in the Asia-Pacific region, ahead of South Korea, Hong Kong, and Singapore.
Knight Frank’s Luxury Investment Index (KFLII) tracks the performance of the ten most popular luxury investments, with fine art leading the way with an 11% price increase in 2023.
The next top 5 in terms of price growth are jewelry (8%), watches (5%), rare coins (4%), and colored diamonds (2%). On the other hand, rare whisky is at the bottom of the list with a 9% price decrease, while vintage cars decreased by 6% and wine only increased by 1%.
Vietnam recorded annual compound annual growth rates (CAGR) of 8% for jewelry imports, 26% for cars, 6% for wine, and 8% for watches in the period 2018-2022.
Kevin Coppel, Executive Director of Knight Frank Asia-Pacific, commented: “High-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) in Asia still have a special interest in luxury investments. Across the continent, tycoons and philanthropists continue to prioritize luxury shopping in order to diversify their investment portfolios and exploit the huge profit potential that these asset categories offer.”
