News

Vietnam forecast to lead global asset growth over next decade

27/02/2024    39

In an article published in Infobae's World column, journalist Rossana Marín emphasized that the nation represents a favourite and promising destination for establishing production activities of multinational companies, especially in fields such as technology and automobile production.

The article cited research results carried out by global wealth intelligence company New World Wealth and investment migration consultant Henley & Partners affirming that the nation will become the country with the fastest growing wealth over the next decade.

This remarkable growth can be put down to Vietnam's transformation into a world manufacturing hub, with forecasts for asset accumulation to increase by 125% over the next 10 years.

With this growth rate, not only will Vietnamese Gross Domestic Product (GDP) growth per capita be high, but the number of millionaires will also increase significantly, along with consolidating its position as a leading destination for international investment.

Author Marín cited McKinsey's analysis this boom, including factors such as its strategic geographical location which shares a border with China and nears important maritime trade routes, combined with low labour costs and favourable infrastructure for exports.

The article quoted Chief Investment Officer at Vinacapital Investment Management Ltd Andy Ho as emphasising that the country is developing rapidly and most people are benefiting.

Meanwhile, Andrew Amoils, an analyst of New World Wealth, commented that the development takes place amid the country being considered an increasingly popular production base for multinational technology firms operating in car production, electronics, and garments and textiles.

According to Infobae, the attractiveness to groups, along with the brand of safety, has attracted investors who are keen to build factories and establish production operations locally, thus significantly contributing to furthering economic growth.

According to World Bank (WB) data cited by CNBC, the nation is currently home to 19,400 millionaires and 58 billionaires which is tangible evidence of its growing economic attractiveness and investment potential.

This increase in the number of individuals with high purchasing power will be a sign of the country's economic dynamism, as well as its ability to attract and create wealth. Vietnam, at the epicentre of Southeast Asia's economic boom, will have expected asset growth of 110%, the author said.

With regards to attracting foreign investment (FDI), the article noted that the nation has become an attractive destination for investors, with a FDI increase of 32% in 2023 compared to 2022, reaching US$36.6 billion.

FDI is viewed as being an important driving force for Vietnamese economic growth, supporting the industrialization process, with exports being the focus. This process by the country has been reinforced through three waves of FDI attraction over the past three decades.

Brian Lee, economist and assistant vice president of Maybank, commented that Vietnam is facing its fourth wave of FDI attraction, which can further boost the economic development momentum of the Southeast Asian nation.
FDI brings good jobs with decent wages and allows millions of Vietnamese people to improve their quality of life.

According to Infobae, economic experts also recommend that the nation needs to increase its workforce training as a means of meeting the needs of complex manufacturing activities that require many skills, while also improving efficiency and labour productivity through closer co-operation between foreign companies and domestic partners.
 

Source:VOV