Vietnam is among the top 15 remittance-receiving countries in the world, with overseas Vietnamese sending back US$12.5 billion to the country so far this year.
While nations like India and China top the World Bank's remittances list, with US$72 billion and US$63.9 billion, respectively, Vietnam's total has risen steadily over the past several years, reports Vietnam News' BizHub. Since 2011, remittances to Vietnam have grown by about US$1 billion a year and are set to continue the trend in future.
Beyond the World Bank data, domestic statistics also support the country's growing rate of remittance, with estimates of US$13-14 billion pouring into Vietnam this year. Of the total sum, over one third of the country's remittances make it to Saigon. This year, the southern hub will see as much as US$5.5 billion sent home, according to official data, up 10% from 2014.
According to Nguyen Hoang Minh, deputy director of the State Bank of Vietnam's Ho Chi Minh City branch, there are several factors which explain this steady increase. In addition to this year's devaluation of Vietnamese currency against the US dollar, Minh also points to a growing real estate market and the government's new policies which encourage Việt kiều to invest in and return to Vietnam, helping to boost overseas remittances to the country.
Local banks, too, are beginning to focus their efforts on non-traditional remittance markets like Japan and Malaysia, where many Vietnamese workers live, in addition to more popular markets such as Canada, the United States and Australia, Co Tran Van Trung, remittance director of Dong Nam A Bank, tells BizHub.
According to the State Committee for Overseas Vietnamese Affairs, nearly 5 million Vietnamese reside in 103 countries around the world.
[Photo via Bloomberg]
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