Retail in Asia


Vietnam to experience surging wealth growth over the next decade, says new report

A new study shows that Vietnam is projected to experience surging wealth expansion in the next ten years as it emerges as a global manufacturing powerhouse.

Citing a study by global wealth intelligence firm New World Wealth, CNBC reported that the Southeast Asian country will see a staggering +125 percent increase in wealth growth by 2034, representing the highest expansion in terms of GDP per capita and millionaire population.

SEE ALSO: Lotte unveils Vietnam’s largest mall complex, Lotte Mall West Lake Hanoi

According to the global wealth intelligence firm, Vietnam currently has 19,400 millionaires, 58 of whom have more than US$100 million.

Forbes also reported that Vietnam now has five billionaires with a combined net worth of USD11.8 billion.

Among new developments in Vietnam is a retail destination by South Korea’s Lotte Group opened in 2023, billed as one of the largest shopping malls in Vietnam, spanning nearly 354,000 square metres. Source: Lotte Mall West Lake Hanoi

With the country regarded as a safe place to do business compared to its regional neighbours, CNBC said that it attracts manufacturers seeking to set up operations in another country.

Its geographical location, with its proximity to the most important shipping routes and a shared land border with China, as well as its low cost of labour and infrastructure supporting exports make it a more attractive destination for global investors.

SEE ALSO: APAC countries emerge as strong contenders in global retail market

Vietnam’s manufacturing sector represents 25 percent of its GDP. Aside from manufacturing, foreign direct investments have significantly contributed to its GDP. In 2023 alone, FDI surged by +32 percent to USD36.6 billion.

Official data shows that Vietnam’s GDP last year fell by -5.05 percent, following +8.02 percent growth in 2022.