Vietnam among top 10 remittance beneficiaries
Vietnam among top 10 remittance beneficiaries
Vietnam has been listed in the top ten countries receiving the highest overseas remittances worldwide, according to a report jointly conducted by United Nations Development Programme (UNDP) and the Vietnamese Ministry of Planning and Investment.
The report indicated that last year, Vietnamese workers living abroad sent home USD13.8 billion, up 16% on-year, accounting for around 2.5% of the world’s total overseas remittances.
UNDP said that overseas remittances are estimated to make up 6-8% of Vietnam’s annual GDP during the 2006-2017 period.
Of the total figure, 55% came from the US, followed by Australia, Canada, France, Germany and South Korea.
UNDP suggested that overseas remittances should be poured into production and business, instead of real estate, stocks or savings under the form of gold or foreign currencies as previously.
By late 2016, HCM City’s overseas remittances accounted for up to half of the country’s figure. Around 70% of overseas remittances in HCM City were used on business activities, with just 20% spent on property.
Remittances have been channelled through commercial banks, economic institutions, customs or post. About 72% of the remittances go through commercial banks.
