Remittances from overseas Vietnamese in 2012 may reach USD10-11 billion, an increase of 15-20% from last year. If these figures are confirmed it was mark the highest level of remittances in the last four years.
According to the State Committee for Overseas Vietnamese Affairs, there are about four million people of Vietnamese origin, including 400,000 temporary workers living abroad.
Domestic banks have created favourable conditions for such transactions.
With the huge rate gap between the black currency exchange market and banks reduced, more money has been sent through official banking channels.
A representative from a money transfer company under a major bank in Hanoi said that they had transferred USD1.1 billion since start of the year. Most of the remittances were from the US, Japan, Germany and Australia.
Another money transfer company under a bank in HCMC said remittances from guest workers abroad had recently increased and the company had transferred USD1.8 billion, which matched last year’s figures.
The State Bank of Vietnam in HCMC reported that in 2012, the remittances through commercials banks amounted to USD4.1 billion, an increase of 15% compared to 2011. They said only 15% of remittances were transferred though banks last year and the rate had surged to 34% this year.
People had also spent less on real estate. Only 23% invested remittance in property this year, compared to 52% last year.
Another reason for the surge in remittances has been Vietnam’s high deposit rates.
