In the face of a challenging global economic climate, Vietnam has demonstrated remarkable resilience by securing its position among the top 10 recipients of overseas remittances worldwide, amassing an estimated US$14 billion in the preceding year. This information stems from the World Bank’s Migration and Development Brief and the Global Knowledge Partnership on Migration and Development (KNOMAD).
Ho Chi Minh City, in particular, has etched its name in the record books with a staggering annual surge of 43.3 percent in remittances, reaching an impressive US$9.46 billion. This figure not only stands as a testament to a decade-high record but also exceeded foreign direct investment (FDI) in the city by 2.7 times, constituting nearly 14 percent of its gross regional domestic product. Deputy Director of the State Bank of Vietnam’s municipal branch, Nguyen Duc Lenh, attributes this unprecedented success to the growth in overseas labor.
Over the last five years, Ho Chi Minh City has consistently proven its prowess in attracting overseas remittances, claiming 44.1 percent of the country’s total in 2018 and steadily increasing to an impressive 55.03 percent in 2022, according to Lenh.
Vice Chairman of the municipal People’s Committee, Vo Van Hoan, underscores the significance of this positive growth, highlighting its potential to strengthen exchange rates, stabilize the foreign exchange market, and drive the city’s overall economic development.
A report from the State Committee for Overseas Vietnamese Affairs reveals that Vietnam has amassed over US$190 billion in remittances over the past three decades, nearly matching the total FDI disbursed during the same period.
Leading contributors to this influx include the United States, the United Kingdom, Australia, and Canada, with Japan, the Republic of Korea, and Taiwan (China) playing pivotal roles as major labor markets.
Lenh notes that the Vietnamese Government has implemented several policies to encourage Overseas Vietnamese (OVs) to conduct business at home and send financial support to their families. The upcoming implementation of the revised Real Estate Business Law on January 1, 2025, is poised to further enhance opportunities for OVs to invest and trade in real estate, aligning them with their domestic counterparts and propelling continued positive momentum in remittance growth.
