Vietnam is projected to have nearly 1,000 super-rich individuals by 2028, ranking fifth in terms of growth rate in the Asia-Pacific region.

The number of super-rich individuals in Vietnam is growing at a rapid pace. Photo: Huu Thang/The Hanoi Times

A Wealth Report released by the real estate consultancy firm Knight Frank (UK) reveals that the number of ultra-wealthy individuals in Vietnam was estimated at around 752 last year, a 2.4% increase compared to 2022. 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 (0.8%).

According to the firm's definition, ultra-high net worth individuals have worth (excluding debts) of $30 million or more, including real estate they reside in.

Knight Frank identifies the number of ultra-rich individuals in countries using the "Wealth Sizing Model" developed and refined by the company over the past decade. This method combines a wealth of data resources collected by the company and machine learning technology, structured to take into account influencing factors such as geopolitical circumstances that may affect fundamental economic relationships.

The company notes that its model is dynamic, so figures in the latest report may vary and may not match those in previous publications. Knight Frank forecasts that by 2028, Vietnam's ultra-rich population will reach 978, up by 30% from the previous year, placing the country among the top five fastest growing in the Asia-Pacific region, ahead of South Korea, Hong Kong, and Singapore.

Alongside the growth in the number of high-net-worth individuals, between 2018 and  2022, Vietnam saw annual growth rates in luxury goods imports of 8% for jewelry, 26% for cars, 6% for wine, and 8% for watches, according to the Knight Frank Luxury Investment Index (KFLII).

Last year, the global ultra-rich population grew by 4.2% to  626,619, up from 601,300 in 2022. Growth was led by North America (7.2%) and the Middle East (6.2%), while Latin America was the only region seen a decline. By country, Turkey and the US led the growth, with increases of 10% and 8%, respectively.

Following a decline in 2022, the global high-net-worth population increased last year due to improving economies and active financial investing. In the first half of 2023, interest rates continued to rise, but stocks surged due to excitement over artificial intelligence.

In the latter half of the year, inflation eased, and expectations of early interest rate cuts further fuelled the stock market. Other sectors also yielded positive returns, with gold rising by 15% and Bitcoin by 155%, reversing much of the losses that investors endured in 2022.

Knight Frank predicts that Asia will lead in ultra-rich population growth by 2028, with a 38.3% year-on-year increase. The continent had 165,442 ultra-rich individuals last year and the number is projected to reach 228,849 in the next five years.

As lifestyles become more affluent, Kevin Coppel, CEO of Knight Frank Asia-Pacific, notes that the wealthy and ultra-wealthy in Asia continue to show particular interest in luxury investments.

Coppel noted that across the continent, tycoons and magnates consistently prioritize luxury purchases to diversify their investment portfolios and capitalize on the significant profit potential these asset classes offer.