- Much of that growth is due to the surge in super rich individuals living in the country
- Vietnam’s emergence as a global manufacturing hub has helped it top a list of countries ranked by wealth growth over the past 10 years.
- Wealth in Vietnam grew 210 percent between 2007 and 2017, and the country’s wealth market is predicted to continue growing another 200 percent in the next 10 years, according to a report by market research company New World Wealth and interpreted by Visual Capitalist.
- Much of that growth is due to the surge in ultra-high net worth individuals living in the country, defined as people with investable assets of at least $30 million, excluding personal assets and property such as a primary residence, collectibles and consumer durables. Link to full story in VNEXPRESS By Ngan Anh February 2, 2018
- State Owned Enterprises (SOE) proceeds from divestitures could reach as high as US$23.6 billion over the 2018 – 2020 period. This is 2.75 times greater than the 2011 – 2017 period.
- Vietnam could be the only country in the World that embarks on a new wave of SOE reform in 2018-2020 period.
- Besides raising proceeds for the government, there is a desire to bring these spinout into closer compliance with market principles and practices.
- Proceeds from the divestitures will be used for funding government’s infrastructure spending.
- “Geographically, Vietnam is located in a strategic location in ASEAN, next to China,” said Sapru. “The country also offers strong GDP growth, political stability, low costs, and an emerging affluent population.”
- The current stock market correction (April 2018 to July 2018) is not expected to slow down M&A activity in Vietnam.
- The first four months of 2018, inbound capital via M&As in Vietnam reached US$2.26 billion, up 67% year-on-year
- Asian investors are the most enthusiastic bidders. Most Asian investors come from nearby markets such as Thailand, the Republic of Korea, Japan, Hong Kong, and China.
Source: Xinhua 2018-04-13 11:16:44
Growth with Challenges
- East Asia-Pacific Economic Update recently released by the World Bank, Vietnam's economy is facing significant challenges, despite the generally favorable medium-term outlook.
- Domestically: a slowdown in structural reforms could weaken the ongoing recovery and weigh on Vietnam's medium-term potential growth."
- Trade: Strong trade and investment links expose Vietnam's economy to risks associated with a potential rise in protectionism and a possible weakening of external demand,
- Fiscally: There continues to be a need for deeper revenue and expenditure reforms, including broadening tax bases, right-sizing of the public administration, and higher value for money in public investment.
- Another source, The Asian Development Bank report dated April 2018 - Vietnam's gross domestic product (GDP) will grow to 7.1 percent this year, before easing back to 6.8 percent in 2019, said the Asian Development Bank