Remittances to Viet Nam to further rise in 2019

Monday, Dec 16, 2019 15:16

The World Bank forecast that about US$16.7 billion in remittances will flow into Viet Nam this year, up 4.6 per cent from a year earlier. — Photo

Remittances to Viet Nam are likely to increase in 2019 because overseas Vietnamese people believe in the stability of the economy and see better investment opportunities, economist Nguyen Tri Hieu said.

He attributed the increasing trust to the Government’s various policies to improve the local business climate by simplifying investment procedures.

Remittances have been forecast to reach US$17 billion this year by some organisations, he said.

The World Bank forecast that about $16.7 billion in remittances will flow into Viet Nam this year, up 4.6 per cent from a year earlier. The BIDV’s Training and Research Institute also made a similar prediction, which will put the Southeast Asian country among the world’s top ten remittance receivers for a third year in a row.

The value rose from $13.8 billion in 2017 to $15.9 billion in 2018.

This growth is due to the increasing number of Vietnamese people living abroad, particularly guest workers, said Phung Cong Dung, chairman of the Committee for Overseas Vietnamese Affairs in HCM City.

According to the World Bank, Viet Nam is among the nine main sources of foreign workers in Japan. Last year, about 68,700 out of the 142,800 Vietnamese guest workers went to Japan, followed by Taiwan (China) at 60,400 people, and the Republic of Korea at 6,500 people.

The monthly incomes of Vietnamese workers in Japan and the RoK averaged $1,000-1,200 in 2018, while those in Taiwan earned $700-800 per month, according to the International Labour Organisation (ILO).

The State Bank of Viet Nam in HCM City predicted that remittances to the southern hub will likely reach $1 billion in December to bring the full year’s figure to $5.3 billion, up 9 per cent year on year.

To attract more remittances, the Government should develop trade and investment incentives exclusively for Vietnamese living abroad and increase promotions for investment opportunities in Viet Nam via consular offices and overseas Vietnamese committees, Hieu said.

The central bank should also maintain a stable exchange rate, contributing to macro-economic stability, he added. — VNS

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