Econ
Overseas remittance to Vietnam reaches record high of US$18.9 billion in 2018
Over 70% of the remittances was poured into business and production.
Remittances to Vietnam in 2018 reached US$18.9 billion, up 37% year-on-year from the US$13.81 billion recorded in 2017, Tuoi Tre News reported, citing an official.
Of the total, Ho Chi Minh City received around US$5 billion and over 70% of the total remittances was poured into business and production, said Nguyen Thanh Phong, chairman of the Ho Chi Minh City People’s Committee, at a meeting with overseas Vietnamese on January 24.
Over the past few years, the number of overseas Vietnamese residing in Vietnam has been increasing year-on-year. In 2018, over 420,000 came back to Vietnam through Tan San Nhat International Airport alone, Phong added.
Overseas Vietnamese play a key role in the development of Ho Chi Minh City, Phong continued.
As of present, Vietnam has issued business licenses for nearly 3,000 enterprises set up by overseas Vietnamese with a combined charter capital of VND45 trillion (US$1.93 billion).
Moreover, over 30,000 young overseas Vietnamese go back to Vietnam to search for new business opportunities each year.
At the meeting, Vice Chairman of the Vietnam Business Association of Overseas Vietnamese Peter Hong said the Vietnamese community abroad totaled 4.5 million.
In addition to sending remittances to Vietnam, overseas Vietnamese have been directly involved in investments and businesses in homeland, Hong added.
The remittances to the country go through four channels – commercial banks, economic institutions, customs or posts. About 72% of the remittances are transferred to Vietnam via commercial banks.
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, according to UNDP.
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).
Such flows, along with foreign direct and indirect investment, and official development assistance are major sources of Vietnam’s foreign currency supply.
In a meeting last December, Luong Thanh Nghi, deputy head of the State Committee for Overseas Vietnamese Affairs, said the remittances to Vietnam were expected to reach US$15.9 billion in 2018 in reference to a World Bank report.
Illustrative photo.
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Over the past few years, the number of overseas Vietnamese residing in Vietnam has been increasing year-on-year. In 2018, over 420,000 came back to Vietnam through Tan San Nhat International Airport alone, Phong added.
Overseas Vietnamese play a key role in the development of Ho Chi Minh City, Phong continued.
As of present, Vietnam has issued business licenses for nearly 3,000 enterprises set up by overseas Vietnamese with a combined charter capital of VND45 trillion (US$1.93 billion).
Moreover, over 30,000 young overseas Vietnamese go back to Vietnam to search for new business opportunities each year.
At the meeting, Vice Chairman of the Vietnam Business Association of Overseas Vietnamese Peter Hong said the Vietnamese community abroad totaled 4.5 million.
In addition to sending remittances to Vietnam, overseas Vietnamese have been directly involved in investments and businesses in homeland, Hong added.
The remittances to the country go through four channels – commercial banks, economic institutions, customs or posts. About 72% of the remittances are transferred to Vietnam via commercial banks.
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, according to UNDP.
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).
Such flows, along with foreign direct and indirect investment, and official development assistance are major sources of Vietnam’s foreign currency supply.
In a meeting last December, Luong Thanh Nghi, deputy head of the State Committee for Overseas Vietnamese Affairs, said the remittances to Vietnam were expected to reach US$15.9 billion in 2018 in reference to a World Bank report.
