Overseas Vietnamese have sent home remittances of 1.4 billion USDthrough HCM City-based banks in the first four months of this year, ayear-on-year increase of 19.6 percent.
Remittances by overseasVietnamese during Tet (Lunar new Year festival), which falls betweenmid-January and mid-February every year, is one of the reasons for thehuge remittances in the first quarter, according to Nguyen Hoang Minh,Deputy Director of the State Bank of Vietnam's HCM City branch.
Remittancessent through banks in the city were growing by 8-10 percent annuallyand were expected to reach 5.3-5.5 billion USD this year, he said.
According to the Central Institute for Economic Management (CIEM), in 2014 remittances to Vietnam topped 11 billion USD.
Ina report it released last December, CIEM said with about four millionVietnamese living and working in 187 countries and territories, Vietnamis now among the top 10 remittance recipients in the world.
Remittances have played an important role in the country's socio-economic development.
In2004-06 remittances were the biggest source of foreign funds for thecountry. Since 2007 they have been the second biggest sources behindforeign direct investment.
The remittances bolster the country's foreign currency reserves and help keep the dong stable.
Most of the remittances are spent on daily expenses and business activities or saved, but the usage has been changing.
Accordingto a CIEM study, 48 percent of the families getting the money are amongthe top 20 percent in the country in terms of income. And the highincomes are affecting the spending patterns.
Among those withcomparable incomes, families receiving remittances give priority tospending on accommodation and investment in business activities whilespending less on food, consumer goods, education, and healthcare.
Thegroup of 20 percent of the poorest families (receiving remittances) hasused these funds for their accommodations while the group of the 20percent of the richest has spent remittances as investments into thereal estate sector for profits.
The CIEM's study reveals that in2014 remittances used as investments for business activities slumped to15.9 percent (of their remittances) from the 16.2 percent of theprevious five years.
Up to 30 percent of the remittance receiversdeposited their remittances as savings in banks; 27 percent to 30percent for business and service sectors; 20 percent used remittances ongold trading; and 16 percent – 17 percent as investments in the realestate sector.
A CIEM representative said remittances intoVietnam in 2015 and 2016 are expected to increase slightly from the lastyear's 11 billion USD. However, these funds would begin to slightlydecrease since 2017.-VNA
Remittances by overseasVietnamese during Tet (Lunar new Year festival), which falls betweenmid-January and mid-February every year, is one of the reasons for thehuge remittances in the first quarter, according to Nguyen Hoang Minh,Deputy Director of the State Bank of Vietnam's HCM City branch.
Remittancessent through banks in the city were growing by 8-10 percent annuallyand were expected to reach 5.3-5.5 billion USD this year, he said.
According to the Central Institute for Economic Management (CIEM), in 2014 remittances to Vietnam topped 11 billion USD.
Ina report it released last December, CIEM said with about four millionVietnamese living and working in 187 countries and territories, Vietnamis now among the top 10 remittance recipients in the world.
Remittances have played an important role in the country's socio-economic development.
In2004-06 remittances were the biggest source of foreign funds for thecountry. Since 2007 they have been the second biggest sources behindforeign direct investment.
The remittances bolster the country's foreign currency reserves and help keep the dong stable.
Most of the remittances are spent on daily expenses and business activities or saved, but the usage has been changing.
Accordingto a CIEM study, 48 percent of the families getting the money are amongthe top 20 percent in the country in terms of income. And the highincomes are affecting the spending patterns.
Among those withcomparable incomes, families receiving remittances give priority tospending on accommodation and investment in business activities whilespending less on food, consumer goods, education, and healthcare.
Thegroup of 20 percent of the poorest families (receiving remittances) hasused these funds for their accommodations while the group of the 20percent of the richest has spent remittances as investments into thereal estate sector for profits.
The CIEM's study reveals that in2014 remittances used as investments for business activities slumped to15.9 percent (of their remittances) from the 16.2 percent of theprevious five years.
Up to 30 percent of the remittance receiversdeposited their remittances as savings in banks; 27 percent to 30percent for business and service sectors; 20 percent used remittances ongold trading; and 16 percent – 17 percent as investments in the realestate sector.
A CIEM representative said remittances intoVietnam in 2015 and 2016 are expected to increase slightly from the lastyear's 11 billion USD. However, these funds would begin to slightlydecrease since 2017.-VNA
