Opportunities and challenges in Vietnam’s wealth management

Abstract

Wealth management is a high-level personal financial service, emerging since 1990s, mostly offered by commercial banks, insurance companies and investment banks to high net worth and ultra-high net worth individuals. These financial institutions provide clients (inviduals or even family units) with life-cycle service packages including expense-income management, financial and investment advice, accounting and insurance services, retirement planning, real-estate planning, as well as inheritance and tax consulting. The surging net worth of different income classes in various countries all over the world has formed certain segments of high net worth individuals, lying a firm foundation for the development of the wealth management sector in single countries including Vietnam. Forbes (2013) reported that Vietnam is the country witnessing a relatively large number of self-made rich persons thanks to the growth of retail sectors, techonogy, real estate and financial sectors. This fact will significiantly creat huge opportunities for Vietnam’s wealth management industry to reach promising development growth in the future. However, under current constraints in terms of market conditions, clients- and financial institutions-related issues, technology platform, …, Vietnam’s wealth management sector may face some different challenges. In this regard, the paper will address opportunities in line with challenges that can induce considerable changes in this promising sector, and then produce proper recommendations for the sector’ further development.