Ultra rich turn Vietnam into a new hot spot for luxury yachts

Yacht makers are now honing in on the relatively untapped market after China’s push for common prosperity, and high taxes have posed challenges

After making a fortune in coal mining and thermal power with his Dong Hai Ltd., Pham Van Toan wanted to try something different and shifted his investments towards luxury ventures three years ago.

That includes investing in a hotel with nearly 600 rooms, acquiring a golf course and buying a superyacht, which has been his dream for two decades.

The yacht, built by Italian shipyard Azimut and officially handed over to Pham in a ceremony earlier this year, is the first-ever new 30-meter-plus superyacht sold in Vietnam, according to a spokesperson for the manufacturer. Pham, 59, has a big ambition for his new yacht and the country’s tourism. He, in partnership with Azimut’s local dealer Tam Son Yachting, plans to develop a luxury marina in the heart of Unesco World Heritage Site Ha Long Bay and make the yacht available for private charters.

“Vietnam’s yachting industry is still in its early stages, but the potential is immense,” Pham said in an email.

While it’s still early, he’s betting on the rising demand for yachts to be underpinned by the country’s wealth boom. Vietnam’s dollar millionaire population has grown at the fastest rate in the world, almost doubling between 2013 and 2023, according to a report from immigration consultants Henley & Partners.

Yacht makers are now honing in on the relatively untapped market after China’s push for common prosperity, and high taxes have posed challenges. While the number of Chinese rich is growing, the new generation of young, wealthy people tend to travel more and don't necessarily buy or use yachts in the country, according to Marco Valle, chief executive officer of Azimut Benetti Group.

Vietnam has seen a rapid escalation in demand in recent years, according to Vu Tran, commercial and business development director at Ho Chi Minh City-based Tam Son Yachting.

“In 2018, we had a 60-foot yacht coming to Vietnam and it was considered a big one,” he said. “Now the market started to have requested for yachts over 85 feet. We’re at the state where we’re ready to go in bigger scale.”

Simpson Marine, which represents Italian yacht builder Sanlorenzo in Asia, expanded into Vietnam last year, working with local conglomerate S&S Group that distributes luxury brands such as Rolls-Royce and Lamborghini. The luxury market has matured to the extent that there are customers looking for “more ultra-wealthy” experiences such as yacht ownership and private jets, according to Ewa Stachurska, chief marketing and sustainability officer at Simpson Marine.

O2H2O, a yacht and jet sales brokerage firm, also opened an office in Ho Chi Minh City last year seeing potential from high-net-worth people and the burgeoning middle class. The company currently has seven people in the country and plans to hire two more, said the firm’s founder Alexandre Heng.

Vietnam’s rise as a manufacturing and commodity powerhouse has fueled its economic boom. Gross domestic product grew 7% last year, one of the fastest growth rates in the region. Still, its economic expansion in the first quarter was slower than economists had forecast amid the threat of US tariffs.

Asia-Pacific accounted for 18.2% of global yacht sales of $9.4 billion in 2023, and is the fastest growing regional market, according to research firm Grand View Research. China, Hong Kong and Singapore are the primary markets in the region. Still, Vietnam is gaining ground. Tam Son has so far sold nearly 40 yachts, ranging from 30 feet to 115 feet, since its start in 2017.

“The most luxury things in Vietnam you could buy before were items like cars or watches,” said Tam Son Yachting’s Tran. “Now, it has changed rapidly. People are spending up to $15 million on a yacht.”