ASIATODAY.ID, JAKARTA – Vietnam, one of the countries in Southeast Asia, is projected to achieve the highest increase in wealth growth in the world in the next decade as it confirms its status as a global manufacturing center.
Reporting from CNBC International, Friday, February 23 2024, Vietnam as a manufacturing base is increasingly popular for multinational technology, automotive, clothing and textile companies.
A report by global wealth intelligence firm New World Wealth and investment migration advisor Henley & Partners says Vietnam will experience a 125% increase in wealth over the next 10 years.
That represents the largest increase in wealth of any country in terms of gross domestic product per capita and number of millionaires.
“Vietnam is an increasingly popular manufacturing base for multinational technology, automotive, electronics, clothing and textile companies,” said New World Wealth analyst Andrew Amoils.
Meanwhile, India, which is predicted to become the third largest economy in the world in 2027, is in second place with an estimated wealth growth of 110%.
Currently Vietnam is home to 19,400 millionaires (having wealth of at least $1 million) and 58 centimillionaires (having wealth of at least $100 million) because it is considered a relatively safe country compared to other countries in the Asia-Pacific region. The country also provides additional incentives for companies to set up manufacturing operations.
The strategic location on land borders with China and close to major maritime trade routes reduces labor costs, while the country’s infrastructure also supports export capabilities.
“All of these things have turned Vietnam into a major international investment destination,” he said.
Vietnam’s gross domestic product growth in 2023 is known to slow to 5.05% compared to an expansion of 8.02% in 2022. This is due to weakening global demand and cessation of public investment. It is known that the manufacturing industry contributes a quarter of gross domestic product.
Vietnam has also benefited from US-China trade tensions with many multinational companies diversifying manufacturing to Vietnam as part of a “China plus one” strategy. This is proven by Vietnam’s foreign direct investment (FDI) increasing 32% from the previous year in 2023. (ATN)
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