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CORPORATE PROFILE

UNLOCKING THE SYNERGIES OF
URBAN BRANDED RESIDENCES IN VIET NAM

With strong economic growth forecast and Vietnamese consumers’ increasing exposure
to global standards of living, the luxury residential market has begun to discover a new
concept - urban branded residences.

66 Riding the economic wave Riding the economic wave, Viet Nam’s wealthy popu-
Despite the Covid-19 pandemic, Viet Nam’s economy, lation saw the world’s second-fastest growth in the last
unlike most others, was able to escape a contraction in decade. The average annual growth of those in the coun-
2020 thanks to the government’s capable handling of the try with a net worth of $5-30 million, categorized as the
crisis, with growth of 2.91 per cent posted. According to very-high-net-worth (VHNW) population, reached 13.9
the World Economic Outlook Report from the Interna- per cent in the 2010-2019 period, according to Wealth-X,
tional Monetary Fund (IMF), Viet Nam’s economic growth a leading global wealth information and insight provider.
was one of the four highest in the world.
Viet Nam’s economy is expected to grow five-fold be-
tween now and 2035, becoming the 19th largest economy
in the world, UK consultants the Centre for Economics
and Business Research (CEBR) wrote in their annual
league table on the growth prospects for 193 economies.
GDP growth is forecast at 7 per cent each year over the
next five years and 6.6 per cent annually during the sub-
sequent decade, for a nominal GDP of $1.59 trillion; an in-
crease of nearly five-fold over 15 years and surpassing
major Asian economies like Taiwan (China) and Thailand.
The strategic partnership signing ceremony between Marriott
International and Masterise Homes in January 2021.
The affluent class is forecast to grow strongly in the
next five years. By 2025, Viet Nam will have 511 ultra-high-
2020 GDP growth/contraction of major Asian economies
net-worth individuals (UHNWI) with a net worth of at
Vietnam
Taiwan (China) least $30 million each and 25,812 high-net-worth individ-
China uals (HNWI) with assets of at least $1 million, as stated in
Pakistan*
South Korea The Wealth Report 2021 from property consultants Knight
Indonesia Frank. This translates into a growth rate of more than 30
Japan per cent in the next five years.
Singapore
Malaysia
Hong Kong (China) 66 Era of “Branded Living”
Thailand As leading international luxury brands make forays
India* into Viet Nam, the country’s growing and globally-mobile
Philippines
high-net-worth population is aware of which car they want
to own and what style of clothes they want to wear. They
-10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0%
now seek the same branding experience in their home too.
Source: Viet Nam’s General Statistics Office, Central Bank of Taiwan (China), National Bureau
Statistics of China, Bank of Korea, Singapore’s Ministry of Trade and Industry, China’s Hong Kong’s Branded residences, which are normally a partnership
Census and Statistics Department, Philippine Statistics Authority.
IMF World Economic Outlook (Jan. 2021) between a brand (often a hotel operator) and a developer,
*Data for India and Pakistan are on fiscal year 2020/2021 basis.
are not a new concept internationally or even locally but
are an emerging segment in Viet Nam.