Vietnam is projected to stand third in the group of countries with the fastest growth rate of affluent population globally, or New Wealth Builders (NWBs), which are households with financial assets of US$100,000 to $2 million, in the 2014-2020 period.

During the time frame, the Southeast Asian country will have about 347,000 NWBs, representing a 34.9 percent compound annual growth rate (CAGR) and standing behind India (47.4 percent) and Indonesia (41.2 percent), according to a report released by the Economist Intelligence Unit (EIU) under The Economist magazine on March 23.      The report was prepared with support from U.S. banking and financial giant Citigroup Inc. and covered 32 countries.

The total assets of the Vietnamese group will top $68.1 million, or about $196,500 each household.

However, in terms of quantity, the number of NWBs  in Vietnam is still modest compared with other countries in the region such as China (over 166 million), India (over 4.9 million), Philippines (about 2.5 million), Thailand (nearly 2.2 million), and Indonesia (nearly 1.9 million).

The report also envisions bright prospects for Vietnam's economy in 2015, indicating that the nation continues to be an attractive land for NWB groups over the next two decades, based on stable growth of income and private consumption and price stabilization policies of the government.

Globally, Latin America will be home to the highest number of the emerging rich in the world by 2020, immediately followed by the Asia-Pacific region, led by China and Japan.

Asia Pacific will secure the second place in regional NWB household average growth with 10.1 percent, with five emerging Asia-Pacific economies topping the list of countries ranked by CAGR in NWB household formation in 2014-2020.

The EIU expects the number of NWB households in India to jump by 47.4 percent between 2014 and 2020 to 4.9 million, each with $178,000 in projected average financial assets.

Private consumption on the rise makes India a favorite candidate for investment of fresh capital, followed by four other Asian nations including Indonesia (41.2 percent), Vietnam (34.9 percent), Thailand (23.6 percent), and the Philippines (22.8 percent).

As Asian consumers spend, large populations spur regional economic growth.

At present, the number of NWB households in emerging markets is overshadowed by the NWB cohort in developed markets with 97 million and 171 million, respectively. 

However, after 2020, emerging market NWBs will outnumber their peers in mature markets.

The NWB group will quickly become the fastest growing group of super-rich people of the world, said the report.

Since 2010, the NWB group has recorded faster growth rates than the other cohorts, including the High Net Worth and Mass Market group, and will continue to grow stronger in the coming decade.

The total value of the NWB group’s assets globally, which currently stands at $88 trillion, is expected to continue rising to $145 trillion in 2020, with a 7.3 percent compound annual growth rate.

“NWB represents an increasingly important phenomenon in the world economy driving growth in savings and economic activity more generally. They are typically self-made, socially conscious, and sharply focused on growth,” said Jonathan Larsen, global head of retail banking and head of consumer banking, Asia Pacific, Citigroup.

According to the Wealth Report 2015 prepared by British property consultant firm Knight Frank, Vietnam is expected to have around 300 super-rich people, or ultra-high net-worth individuals (UHNWIs), by 2024.

As defined by Knight Frank in the report, UHNWIs are those with assets of $30 million or more. The Southeast Asian country will also see the fastest growth rate in the number of UHNWIs at 159 percent in the 2014-2024 period, followed by Indonesia (132 percent) and the Ivory Coast (119 percent), the report said.

In 2014, Vietnam had 116 UHNWIs, up six percent from 2013 and 231 percent from 2004.

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