Viet Nam listed in world's top 10 remittance recipients

Thursday, Apr 17, 2014 09:31

Source: The World Bank

HA NOI  (Biz Hub) — Viet Nam is listed among the top 10 remittance recipients with US$11 billion in 2013 and it is likely to stay robust this year.

This information was released in the World Bank's latest issue of the Migration and Development Brief.

Remittances to the East Asia and the Pacific region are estimated to have risen by 4.8 per cent in 2013 to reach $112 billion, with Thailand, Viet Nam, and the Philippines recording robust growth.

According to the State Committee for Overseas Vietnamese Affairs, nearly five million Vietnamese are residing in 103 countries and territories around the world. Remittances to Viet Nam were $9 billion in 2011, $10 billion in 2012, and $11billion last year. The state and government have laid more focus on the contingent and continue taking into consideration the opinions and aspirations of the Vietnamese living overseas in order to boost this source of capital.

The brief revealed that India garnered the top spot, with $70 billion in remittances. Other major recipients were China ($60 billion), the Philippines ($25 billion), Mexico ($22 billion), Nigeria ($21 billion), Egypt ($17 billion), Pakistan ($15 billion), Bangladesh ($14 billion), and Ukraine ($10 billion).

Remittance flows to developing countries are estimated to increase by 7.8 per cent over 2013 to reach $436 billion this year and $516 billion by the year 2016.

The World Bank perceives remittances as a key source of external resource flows for developing countries, surpassing the official development assistance and far stable than private debt and portfolio equity flows. For several developing countries, remittances are an important source of foreign exchange, exceeding earnings from major exports, and covering a substantial portion of imports.

The brief also pointed out that while the medium term outlook for remittances is strong; the downside risks loom large mainly from the migrants returning to their home countries as a result of conflict or deportation from host countries.

Last year, the number of deportations increased, with more than 370,000 migrants being sent back to their home countries from Saudi Arabia alone in the five months since November 2013. Many of these migrants were from Ethiopia, Egypt, and Yemen. In the US, over 368,000 people were deported to their home countries in Latin America and the Caribbean (LAC), particularly Mexico, El Salvador, Guatemala, and Honduras.

Global remittances, including those to high-income countries, are estimated at $581 billion this year, from $542 billion in 2013, increasing to $681 billion in 2016. — VNS

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