A new study by New World Wealth reveals Vietnam's fast growing wealth population and where they place their money.

Vietnam is the fastest growing wealth market in the world, with the number of high net worth individuals rising by 148 per cent from 2007 to 2013, according to a new study by New World Wealth.

High Net Worth Individuals

As at the end of 2013, there were around 10,000 HNW individuals n Vietnam with a combined wealth of $40 billion. They account for roughly 17 per cent of the country's total individual wealth, which stands as $240 billion. The report said that majority of this growth was driven by rising commodity prices and strong business growth, particularly in areas such as financial services, manufacturing and construction. 

The population of Vietnam's HNWI's are also forecast to grow by 54 per cent to reach 15,600 by 2017, with wealth likely to grow by 60 per cent to reach $63 billion by the same year. Around 59 per cent of total HNWI assets were allocated to business interests in 2013, followed by equities, 10.4 per cent, cash, 10.3 per cent, real estate, 8.3 per cent, fixed income, 7.3 per cent, and alternatives, 5.1 per cent. Liquid assets amounted to $6 billion, representing 15 per cent of the wealth holdings of local HNWIs.

Ultra High Net Worth Individuals

Vietnam is also home to 113 ultra high net worth individuals, recording an average wealth of $89 million per person and a total wealth of $10 billion, said the New World Wealth report. Of this, there one billionaire, 16 centimillionaires and 96 affluent millionaires. The number of UHNWIs also increased 163 per cent from 2007 to 2013. Going forward, their population is expected to rise by another 55 per cent to reach 175 individuals by 2017.

The average age of HNWIs in Vietnam is 48 years, which is below the worldwide average of 56 years. The most number of HNWIs, or 50 per cent of the total population, live in Ho Chi Minh City. Other areas where they reside are Hanoi, Hai Phong and Da Nang. Most of the wealth comes from being involved in businesses like construction and real estate--noted as the primary source of income of 24 per cent. This is followed by manufacturing, FMCG, financial services and basic materials. 

As regards banking preferences, majority of wealthy Vietnamese use foreign private banks, which hold their money abroad. This is the reason why the local private banking industry is relatively underdeveloped, said the report. Major banks with Vietnam offices include ANZ, Citi, HSBC and Standard Chartered.

New World Wealth defines HNWIs as those with net assets of $1 million or more, excluding their primary residences. UHNWIs are those with net assets of $30 million or more.