The Hanoitimes - A major part of the remittances has been poured into over 3,000 business and production projects, contributing to Vietnam’s economic development and people’s higher living standard.
Overseas remittances to Vietnam in 2018 reached nearly US$16 billion, representing a 100-fold-plus increase compared to 1993, according to General Secretary of the Communist Party of Vietnam and President Nguyen Phu Trong.
A major part of the remittances has been poured into over 3,000 business and production projects, contributing to Vietnam’s economic development and people’s higher living standard, Trong said at the annual Homeland Spring program held on January 26 to welcome overseas Vietnamese returning home for the Lunar New Year holiday.
President Nguyen Phu Trong at the event. Source: VNA.
Additionally, companies and associations set up by overseas Vietnamese have been actively involving in taking Vietnamese products to the world market, at the same time serving as a bridge for investment flow from multinational companies to Vietnam, Trong continued.
Trong added that the contribution of overseas Vietnamese experts and scientists have contributed significantly to Vietnam’s rapid advance in science, technology and economy, especially in the context of the Fourth Industrial Revolution.
In 2018, Vietnam has overcome challenges to achieve comprehensive results in most fields, laying a solid foundation for fulfilling new targets set for 2019 and the 2016 – 2020 period, Trong concluded.
Vietnam maintained its status as one of the fastest growing economies in the world, reaching a 10-year high GDP growth rate of 7.08% in 2018. The National Assembly set a GDP growth target of 6.6 – 6.8% for the economy in 2019.
According to UNDP, Vietnam is amongst the top ten countries, second in ASEAN after the Philippines, in terms of inbound remittance flows in the world, with the volume being around 2.5% total global remittances in 2017.
Annually, remittances accounted for 6-8% of annual GDP in the period 2006-2017 in Vietnam, much higher than for other developing countries (which averaged about 1-2% of GDP).