VIETNAM: More cash pours in from overseas Vietnamese

HCM CITY — The World Bank predicts inward remittances will increase by more than 6 per cent this year, based on the amount of last year.

Inward remittances to Viet Nam increased strongly in the last decade, from only US$1.2 billion in 1999 to $7.2 billion in 2008.

Last year was the first time in which remittances surpassed $8 billion, a rise of 25.6 per cent over 2009.

The recovery of the world economy as well as better economic growth have opened more business opportunities, with more and more overseas Vietnamese transferring money to invest here.

With a more liberalised remittance policy, including allowing the sending and receiving of US dollars, commercial banks as Sacombank and Vietcombank have taken many measures to attract foreign currencies. Read more

VIETNAM: Remittances to reach $7.3b

HA NOI — Overseas remittances have surged strongly this year and were expected to reach US$7.3 billion by year’s end, an increase of over 14 per cent over 2009, said State Bank of Viet Nam Governor Nguyen Van Giau.

The growth in this figure was considerable in comparison to other measures of foreign capital inflows, e.g., foreign direct investment or official development assistance, and had been increasing steadily in the past two weeks, Giau said, suggested that the increased inflows would help stabilise the foreign currency supplies and reserves, as well as the balance of payments. Read more

Remittances to Vietnam: $7 Billion a Year

Financial remittances — better known as money being sent back to the home country — have dramatically changed the economic landscape of Vietnam in terms of poverty levels and development over the years.



The aftermath of the war had left Vietnam among the five poorest countries in the world, with 75 percent of the population living in poverty in 1984. With the help of financial remittances over the years, the poverty level had dramatically decreased to 37 percent in 1998 and later to 29 percent in 2002, according to the World Bank.



The support of financial remittances has had a heavy hand in the improved conditions in Vietnam, and the gradual increase in those remittances over the years has been attributed to a combination of key events, which include but are not limited to: the Vietnamese government launch of a renovation process (Đời Mới) in 1986, the U.S. lifting of the embargo against Vietnam in 1994, and Vietnam’s membership into the World Trade Organization in 2007. Read more

Predicting the Future of Remittances to Vietnam

Money streaming into Vietnam has a huge impact on whoever it is receiving the money. Whether it be a low-income family in the Southern Delta to big-name banks in Saigon, remittance offers a big boost to the country’s economy.

Approximately 11.2% of Vietnam’s GDP (gross domestic product) comes from remittance. Though this may appear to be a low figure, it is huge compared to Mexico which is the highest recipient for money transferred in, yet just 4% of the country’s GDP is due to remittance.

Since restrictions on remittance to Vietnam are so few and far-between, many foreigners began investing in savings or businesses in the area, which in turn sparked the economy. In major cities you will find new buildings and businesses those investors have begun pouring their money into with the help of unlimited tax-free transfers. Read more

Vietnam urged to take measures to optimize emigration

International migration experts on March 26 suggested Vietnam should work more closely with destination countries to improve the speed and reduce costs for overseas Vietnamese of sending remittances back home.
At the international conference entitled the “Socio-economic impacts of emigration,” specialists from the Vietnam Asia-Pacific Economic Centre (VAPEC) also urged the Vietnamese government to increase ties with official financial institutions to facilitate the flow of remittances.

The current policies, they said, are not effective enough in optimizing all the resources that Vietnamese emigrants overseas can bring to national development.

Emigration became common in Vietnam after the end of the US war. Statistics show that around 5 percent of families nationwide have one or more members who have migrated, mainly to the US, Taiwan, the Republic of Korea , Malaysia and Russia . Read more

VIETNAM: Overseas remittances down 12.8%, says State Bank

Remittances by overseas Vietnamese for the home country totaled US$6.283 billion last year, a year on year drop of 12.8 percent, the State Bank of Vietnam said.

A State Bank report said the number did not drop significantly as forecast in the year of global economic downturn.

Last year, Ho Chi Minh City alone received from overseas Vietnamese remittances of US$3.2 billion.

Among the sums, the Foreign Trade Bank of Vietnam (Vietcombank) transmitted US$1.3 billion, US$100 million less than in 2008. HCM City-based Sacombank enjoyed a 10 percent increase in remittances, posting at US$850 million.

The money transfer company of DongA Bank reported a 15 percent decrease to US$1 billion. Company deputy director Trinh Hoai Nam said the amount of remittances increased considerably in December, as the global economy has already showed signs of recovery. Source

VIETNAM: Remittances From Abroad Fall 20 Per Cent In 2009

HANOI, Jan 4 (Bernama) -- Remittances into Vietnam in 2009 are expected to fall considerably against 2008, but investment has remained buoyant despite the global economic recession, Vietnam News Agency (VNA) reported Monday.

Nguyen Hoang Minh, deputy head of the State Bank of Vietnam's HCM City branch, said remittances into Vietnam through banks and agents in HCM City were worth about US$3.2 billion this year, down 20 per cent against 2008.

Le Duc Thuy, chairman of the National Financial Supervison Commission, said that a reduction in remittances in 2009 was unavoidable, due partly to rising unemployment in countries where Vietnamese expats live.

It is estimated that total remittances into the country in 2009 may reach US$6-6.8 billion, down from US$7.2 billion in 2008. Read more

VIETNAM: Remittances from abroad fall 20% in 2009

HA NOI — Remittances into Viet Nam in 2009 are expected to fall considerably against 2008, but investment has remained buoyant despite the global economic recession.

Nguyen Hoang Minh, deputy head of the State Bank of Viet Nam’s HCM City branch, said remittances into Viet Nam through banks and agents in HCM City were worth about US$3.2 billion this year, down 20 per cent against 2008.

Le Duc Thuy, chairman of the National Financial Supervison Commission, said that a reduction in remittances in 2009 was unavoidable, due partly to rising unemployment in countries where Vietnamese expats live. Read more

VIETNAM: Overseas remittances exempt from VAT

The Ministry of Finance has affirmed that the State will not impose the 10-percent value added tax (VAT) on overseas remittances and foreign currencies channelled through banks.

The decision was released after several commercial banks complained that the customs sector was considering imposing VAT on their imported foreign currencies, mostly overseas remittances, affecting their imports.

The State Bank of Vietnam worked with the Ministry of Finance and found that the customs sector had made several proposals concerning the list of commodities subject to VAT that caused the misunderstanding. Source

VIETNAM: Remittances rise despite downturn

HA NOI — Remittances appear to be increasing during the global economic crisis, according to figures published by a number of commercial banks.

Vietcombank announced it received US$1.5 billion in remittances from overseas last year, an increase of $200 million – or 12.7 per cent – over 2007.

DongA Bank reported remittances totalling $1.2 billion, while Vietinbank reported $900 million, and Agribank $870 million.

Remittances came from the US, Canada, and Australia, as well as from such leading employers of export labour as Taiwan, South Korea and Malaysia. Read more

VIETNAM: Foreign remittances in 2008 estimated at US$8 billion

Foreign remittances in 2008 is estimated at US$8 billion, up 19% to US$1.3 billion or 19% compared to 2007, according to the Vietnam Committee for Overseas Vietnamese.

Within the current context of the global economic recession, the amount of money sent back home by each overseas Vietnamese might not increase but the number of senders has increased remarkably, said Nguyen Quoc Dung, deputy head of the committee, adding that foreign remittance by overseas Vietnamese kept increasing year after year.

Up to date, about 3,000 projects in Vietnam have been invested by overseas Vietnamese with a total investment capital of nearly US$2 billion. As many as 60% of these projects are said to be effective ones.

There are about three million overseas Vietnamese living in 40 countries and territories. According to United Nations statistics, Vietnam is listed in top 10 countries receiving the most foreign remittances in 2006. (VnExpress) Source

VIETNAM: Remittances On The Rise

Posted by Danny Lee in News (Saturday December 13, 2008 at 8:25 pm)

Despite the negative impacts of the global economic crisis, remittances from overseas to HCM City this year have increased steadily. In the past 11 months, they have reached US$4.5 billion, said Ho Huu Hanh, director of the State Bank of Vietnam’s HCM City branch.

The $4.5 billion was sent through the banking system, and the World Bank estimates Viet Nam will receive $5.5 billion by the end of the year.

Hanh attributed the increased inflow to the fact that the interest rate for US dollars held in Vietnamese banks is higher than in the US. Read more

Vietnam: Overseas Remittances Rise Sharply This Year

August 4, 2008

The amount of overseas remittances from overseas Vietnamese has grown dramatically this year, according to a banking authority.

Nguyen Ngoc Lam, deputy director of the State Bank of Vietnam’s Foreign Exchange Management Department, said overseas remittances to Vietnam in the first half of this year reached about US$5 billion, up US$300 million over last year.

The amount of such remittances is expected to reach US$8 billion by the end of the year.

In the past, overseas remittances came mostly from Vietnamese living in America, Australia and Europe, but more are being sent by people who live in Asia and the Middle East.

Tran Van Trung, director of Eastern Asia Overseas Remittance Co of Eastern Asia Bank (Dong A Bank), said those markets had grown sharply recently. [Read more]

Diasporic Giving to Vietnam: An Interview with Ivan Small

As of 2005, there are some three million Vietnamese living outside of Vietnam, with approximately half of those living in the United States. Vietnamese-Americans, many of whom are still culturally and emotionally connected to their country of heritage, are increasingly giving back to their families and communities in the form of formal and informal remittances.

The United Nations International Fund for Agriculture & Development put the total estimated amount of remittances to Vietnam at US$6.8 billion in 2007 – over 11.2% of the country's GDP. Vietnamese-Americans comprise a considerable proportion of those making remittances to Vietnam. Le Xuan Khoa, an adjunct professor at Johns Hopkins University who has written several papers about the Vietnamese-American community and engagement with Vietnam, believes that proportion to be 2/3 of total remittances made to Vietnam.
[Read more]

Vietnam: Overseas remittances estimated at US$5 billion

Overseas remittances to Vietnam are expected to increase by US$300 million this year to around US$5 billion, said an official from the State Bank of Vietnam (SBV).

The flow of overseas remittances to Ho Chi Minh City alone is estimated at US$3.6 billion, an increase of US$600 million from 2006, said Nguyen Ngoc Lan, Deputy Director of the SBV’s Foreign Exchange Management Department.

Sacomrex, a foreign remittance service company under the Saigon Thuong Tin Commercial Bank (Sacombank), took the lead in attracting overseas remittances in the last 11 months, with US$840 million. The figure is expected to increase to US$930 million by the end of this year, 40 percent higher than 2006’s figure. Meanwhile, the Bank for Foreign Trade of Vietnam (Vietcombank) also reported a 50-percent rise.

Apart from traditional markets such as the US, Australia, the Republic of Korea and Taiwan, the Middle East has become an important foreign remittance source due to the increasing number of Vietnamese guest workers there.

The Vietnam Eximbank is planning to co-ordinate with labour export-involved businesses to attract overseas remittances from guest workers. So far this year, Eximbank has fetched US$320 million in overseas remittances, and the figure is expected to increase to US$400 million for the whole year.

Banking experts attributed the increase of the remittance volume to simplified money transfer procedures. In addition, the development of the stock market coupled with opportunities from the real estate market are encourag. Source

Vietnam: Overseas remittances estimated at US$5 billion

Overseas remittances to Vietnam are expected to increase by US$300 million this year to around US$5 billion, said an official from the State Bank of Vietnam (SBV).

The flow of overseas remittances to Ho Chi Minh City alone is estimated at US$3.6 billion, an increase of US$600 million from 2006, said Nguyen Ngoc Lan, Deputy Director of the SBV’s Foreign Exchange Management Department.

Sacomrex, a foreign remittance service company under the Saigon Thuong Tin Commercial Bank (Sacombank), took the lead in attracting overseas remittances in the last 11 months, with US$840 million. The figure is expected to increase to US$930 million by the end of this year, 40 percent higher than 2006’s figure. Meanwhile, the Bank for Foreign Trade of Vietnam (Vietcombank) also reported a 50-percent rise.

Remittances Into Vietnam +21.7% To Record $5.6 Billion-Report

ri, Jan 18 2008, 05:39 GMT
Remittances Into Vietnam +21.7% To Record $5.6 Billion-Report HANOI -(Dow Jones)-

Vietnamese living and working overseas repatriated a record $5.6 billion in remittances last year, up 21.7%, state media said Friday, citing a government official.

"Total remittances were up by more than $1 billion from 2006," the Tuoi Tre (Youth) newspaper quoted Nguyen Thanh Son, director of Vietnam's State Committee for Overseas Vietnamese, as saying. Son said overseas Vietnamese, known as Vietkieus, have invested about $2 billion in 3,000 projects in the country. [Read more]

Vietnam to tax securities profit remittance abroad

VietNamNet Bridge – The Ministry of Finance and the State Securities Commission (SSC) are considering taxing remittances of profit earned from securities investment deals in Vietnam abroad.

On March 20, the Government Office released a dispatch informing the instruction of Prime Minister Nguyen Tan Dung’s on measures to manage and develop the stock market.

The Prime Minister has asked the ministry and SSC to build up a policy on taxing securities profit remittances sent abroad.[Read more]