A bird’s-eye view of Ho Chi Minh City highlights Vietnam’s remarkable economic rise as it enters a new phase, marked by its transition to an upper-middle-income nation and a rapidly evolving investment landscape. — VNA/VNS Photo

HCM City — Việt Nam’s economic rise is entering a striking new phase, with the country transitioning into an upper-middle-income nation and its investment landscape evolving at pace. According to Manpreet Singh, Head of Customer Propositions and Marketing at HSBC Vietnam, the nation’s growth story is now defined not only by momentum but by how effectively newly created wealth can be sustained and managed.

Drawing parallels with the Year of the Horse in Vietnamese culture, symbolising speed and breakthrough, Việt Nam’s transformation is visible in its urban skylines and expanding middle class. Strong macroeconomic fundamentals, sustained foreign direct investment, and supportive government policies are driving a new wave of wealth creation and investor sophistication.

“Việt Nam has moved beyond the ‘emerging’ label. It is now a dynamic, globally relevant market with growing expectations from its investors,” said Singh. “The critical question is whether the investment ecosystem can evolve quickly enough to support these ambitions in a sustainable way.”

Global recognition and accelerating growth

Việt Nam’s growing prominence is underscored by its upcoming reclassification to Secondary Emerging Market status by FTSE Russell, effective September 21, 2026. This milestone is expected to attract increased global investor attention and potentially drive greater international capital inflows.

The country’s economic indicators remain robust. In 2025, Việt Nam recorded GDP growth of 8.02 per cent and attracted US$38.42 billion in FDI. Wealth levels among Vietnamese individuals are forecast to rise by 125 per cent by 2034, reflecting one of the fastest wealth expansions globally.

As wealth grows, so does investor sophistication, particularly among high-net-worth individuals. Traditional investment preferences such as real estate, gold and direct equity trading are gradually giving way to diversified, globally oriented portfolios.

Modern Vietnamese investors are increasingly seeking international diversification, professional portfolio management and access to global investment opportunities, alongside integrated financial planning, including education and overseas assets. This shift reflects a broader transition from local success to global ambition.

Despite strong growth, market volatility remains an inherent risk, particularly in a first-generation wealth market. Emotional decision-making, often triggered by market fluctuations, poses a significant challenge to long-term wealth preservation.

“The greatest risk to new wealth is not necessarily market downturns, but the emotional reactions to them,” Singh said. “This highlights the urgent need for stronger financial literacy and disciplined investment frameworks.”

Việt Nam’s wealth management sector is undergoing structural transformation. Investors are increasingly prioritising long-term outcomes over short-term gains, driving demand for advisory-led models.

Discretionary Portfolio Management (DPM) is emerging as a key solution, enabling investors to delegate decision-making to professionals while maintaining strategic discipline. This approach shifts the focus from transactional investing to long-term goal alignment.

The role of relationship managers is also evolving from product distributors to strategic advisors. At HSBC, relationship managers act as connectors within a global ecosystem, integrating clients’ business, personal and international financial needs into a unified strategy.

“With over 60 per cent of our affluent clients being internationally minded, our focus is on simplifying complex global ambitions,” Singh added.

Building for the future

As Việt Nam’s investment landscape matures, demand for trust, digital innovation and international connectivity is increasing. Drawing on expertise from established financial hubs such as Hong Kong, Singapore and the UAE, HSBC is supporting the development of a more resilient and sophisticated wealth management ecosystem in Vietnam.

Việt Nam’s growth story remains compelling, but its next chapter will depend not just on how wealth is created, but how it is managed and sustained across generations.— VNS