Vietnam is a fast emerging market for wealth management services, according to Ken Burke, partner of law firm Baker & McKenzie, who was spea...

Vietnam is a fast emerging market for wealth management services, according to Ken Burke, partner of law firm Baker & McKenzie, who was speaking at the Asia Wealth Management Forum held this week in Singapore. Economic growth in the country is currently running only 1 per cent behind that of Asia’s leader, China. For a socialist country, Vietnam has a contrary tax system. Workers suffer one of the world’s highest tax rates, of up to 60 per cent, but gains made through property speculation are largely tax free, according to Mr Burke. This, along with the country’s new-found liberal attitude towards private enterprise, has led to a new breed of high net worth individual for the private banks to target. There are now over 100,000 private companies in Vietnam, up from 3,600 in 1999. Mr Burke said many of these companies are controlled by very wealthy individuals or families. The country’s stock exchange is tiny compared to most, with a total market capitalisation of around $1 billion. Currently 40 companies are quoted but the government is actively encouraging more to list. Corruption, bribery and money laundering are endemic, though, according to Mr Burke. He told the Asia Wealth Management Forum that private banks must do extensive due diligence on clients in Vietnam, especially family members of government officials.