Vietnam has been identified as one of the potential countries for attracting centi-millionaires, with the number of individuals possessing over $100 million in assets in one city projected to grow by more than 150%.
The Centi-Millionaire Report 2024, published by Henley & Partners in collaboration with New World Wealth, reveals that Asian cities are rapidly emerging as key hubs for the ultra-wealthy. Notably, a city in Vietnam is expected to witness a significant increase of over 150% in the number of individuals with assets exceeding $100 million over the next 16 years.
As of the report’s publication, there are currently 29,350 individuals worldwide with liquid investment assets of $100 million or more. The term “Centi-Millionaire” is used to describe individuals whose net worth falls between $100 million and $1 billion, a distinction primarily used in finance and economics to differentiate between the affluent and billionaires.
Over the past decade, this demographic has experienced a global growth rate of 54%. Of particular interest is the shifting geographical distribution of the ultra-wealthy. The U.S. and China have seen rapid increases in their millionaire populations, outpacing growth in Europe. China, in particular, has witnessed an impressive 108% increase in millionaires over the past decade, surpassing the U.S., where growth was 81% over the same period. In contrast, Europe has seen a more modest 26% growth in its millionaire population during the last decade.
The report highlights that one-third of these centi-millionaires reside in 50 major cities worldwide. Among the top 50 cities, 15 are located in the U.S., with New York leading the way, home to 744 centi-millionaires, followed by the Bay Area (encompassing San Francisco and Silicon Valley) with 675, and Los Angeles with 496.
These cities have not only maintained their global leadership over the past decade but are also expected to experience more than 50% growth in their ultra-wealthy populations in the next 10 years.
Asian cities, however, are quickly becoming key centers for the ultra-wealthy. The report identifies four Asian cities and territories within the top 10 global rankings for millionaire populations. These include Beijing, China, ranked 5th with 347 centi-millionaires; Singapore in 6th with 336; followed by Shanghai and Hong Kong, China, with 322 and 320 centi-millionaires, respectively.
By 2040, the growth trajectory of centi-millionaires is anticipated to present a dynamic shift in wealth accumulation and migration patterns. Several cities in Asia and the Middle East are projected to experience explosive growth. Emerging markets are also expected to leave their mark, with cities such as Riyadh, Saudi Arabia, and Bengaluru, India, forecasted to see more than a 150% increase in their millionaire populations over the next 16 years.
Ho Chi Minh City is also forecasted to be among the cities witnessing a substantial rise in its millionaire community, with growth exceeding 150% by 2040.
Andrew Amoils, Head of Research at New World Wealth, noted that over 60% of centi-millionaires are entrepreneurs and company founders, which makes them particularly significant in the context of wealth creation. “Businesses founded by centi-millionaires have a profound positive impact on the middle class, as they generate a considerable number of high-paying jobs in their home countries. It is also noteworthy that most companies in the Fortune 500, S&P 500, CAC 40, FTSE 100, and Nikkei 225 were founded by individuals who later became centi-millionaires,” Amoils explained.
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Source: Vietnam Insider