Overseas Remittances to Vietnam Likely at US$7.3B This Year, Governor Says

Overseas remittances to Vietnam have bounced back quite rapidly and are likely to reach US$7.3 billion this year, up US$900,000 from last year, said Governor Nguyen Van Giau of the State Bank of Vietnam, the country’s central bank.

 

The governor was quoted as saying that higher inward overseas remittances could help Vietnam equilibrate its overall balance of payments and stabilize local foreign exchange rate.

 

Beside overseas remittance, strong inflows of foreign direct and indirect investment could also support the country’s BoP, he added.

 

Giau expects disbursement of foreign direct investment at US$10 billion this year despite a considerable fall in pledged capital.

 

Inflow of foreign indirect investment (FII), meanwhile, has amounted to US$712 million to date versus a fall of between US$500 million and US$600 million last year, Giau noted. 

 

Hans Timmer, director of development prospects at the World Bank, said in a recent report that “remittances are a vital source of financial support that directly increases the income of migrants’ families.”

 

“Remittances lead to more investments in health, education, and small business. With better tracking of migration and remittance trends, policy makers can make informed decisions to protect and leverage this massive capital inflow which is triple the size of official aid flows,” Timmer said.

 

In the report, the World Bank expects overseas remittances to Vietnam would reach US$7.2 billion this year. (Pioneer)