Vietnam forecast to enter top ten remittances recipients in 2019

Vietnam is expected to enter the top ten remittances receivers with an estimated amount of US$16.7 billion this year, accounting for 6.4 percent of the country’s Gross Domestic Product (GDP), according to the latest data from the World Bank.

Customers receive remittances at a bank in HCMC (Photo: SGGP)

Customers receive remittances at a bank in HCMC (Photo: SGGP)

For the last two decades, the sum of remittances to Vietnam has increased steadily, from $1.3 billion in 2000 to $16 billion in 2018 except 2009 when it was found reduce under influence of global financial crisis.
Reports by the United Nations Development Programme (UNDP) show that Vietnam receives 2.5 percent of global remittances. Of the total sum of remittances to Vietnam, the US accounts for 55 percent and it is followed by Australia, Canada, Germany and South Korea. Remittances majorly come from overseas Vietnamese and labor export.
Overseas Vietnamese in the US, Canada, Germany and France contribute to 80-90 percent of the total amount remitted to the country. Labor export accounts for only 6-7 percent, still this source of remittances has been on up trend in accordance with the increase in labor export to Japan and South Korea.
Mr. Nguyen Hoang Minh, deputy director of the State Bank of Vietnam in HCMC, said that for the last many years remittances to HCMC increase 8-10 percent a year on average. Since the beginning of 2019, the number has approximated $3.8 billion, a year on year hike of 7 percent. It is expected to hit $5.6 billion for the whole year, up 10 percent against 2018. Remittances have majorly gone to production and trading, then real estate and relatives support.

By Nhung Nguyen - Translated by Phuong Ho

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