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Which country will lead global wealth growth in the next decade, it is not the United States

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Which country will lead global wealth growth in the next decade, it is not the United States

Vietnam Poised to See a 125% Increase in Wealth in Next Decade

A recent study by global wealth intelligence firm New World Wealth and investment migration advisors Henley & Partners has revealed that Vietnam is set to experience the most significant increase in wealth over the next decade. The study predicts a remarkable 125% increase in wealth, positioning Vietnam as the country with the largest expansion in terms of GDP per capita and number of millionaires.

This growth is attributed to Vietnam’s transformation into a global manufacturing hub, driven by its strategic geographical location, low cost of labor, and favorable infrastructure for exports. According to McKinsey, Vietnam’s proximity to China and important maritime trade routes has contributed to its rapid economic development.

Additionally, Vietnam has gained popularity as a manufacturing base for technology, automotive, electronics, clothing, and textiles multinationals. The perception of the country as a relatively safe place in the Asia-Pacific region has also contributed to the installation of manufacturing operations, stimulating economic growth.

According to World Bank data cited by CNBC, Vietnam is currently home to 19,400 millionaires and 58 centimillionaires, a clear indication of the country’s growing economic attractiveness and investment potential.

Vietnam’s increasing wealth comes amidst ongoing trade tensions between the United States and China, making it an attractive destination for foreign direct investment (FDI). FDI in Vietnam has seen a significant increase of 32% compared to the previous year, reaching $36.6 billion in 2023.

Foreign investments are seen as crucial to Vietnam’s economic growth, as they support an export-led industrialization process. Brian Lee, economist and Assistant Vice President of Maybank, highlighted the importance of foreign investments in creating good jobs with decent salaries, improving the quality of life for millions of Vietnamese.

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However, there are potential challenges for Vietnam’s economic development, such as the possibility of a prolonged global recession impacting consumer demand in developed markets and affecting the Vietnamese manufacturing sector and exports.

In order to maximize the productivity externalities of FDI, experts emphasize the need for closer collaboration between foreign companies and their domestic counterparts. They also stress the importance of strengthening the training of the Vietnamese workforce to meet the demands of complex and skill-intensive productive activities.

With all these factors in play, Vietnam’s economic trajectory presents a unique opportunity for the country to solidify its position as a leading destination for international investment and further bolster its economic growth in the coming years.

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