Remittancesare on the rise ahead of the Lunar New Year in Vietnam. It is expectedto post an increase of 35 percent to nearly 11 billion USD for the wholeyear, industry insiders have said.
In Ho Chi MinhCity, remittance inflows will be roughly 4.8 billion USD against 4.1billion USD last year, said deputy director of the State Bank ofVietnam's Ho Chi Minh City branch Nguyen Hong Minh.
Banks were optimistic about the sharp rise in remittance flows to thecountry during the last month of the year, thanks to the economicrebound in countries that Viet kieu (overseas Vietnamese) live.
The unemployment rates in many countries, including the US, Australiaand Canada, have fallen to roughly 4-5 percent from 9-10 percent,helping Viet kieu be employed, while enjoying stable and higher incomes.
Vietcombank deputy general director Pham Thanh Hasaid the Government's policies had encouraged Viet kieu and Vietnameseguest workers to send money home.
The official alsonoted that recipients can receive foreign or domestic currencies, anddo not have to save this money in banks.
Moreover, the stability of the VND also helps attract more remittance flows, it was noted.
The remittance flows have reduced money problems for firms andhouseholds, as most of the remittances have been poured into short-termbusinesses and production.
Financial expert Le XuanNghia forecast that the remittances could be funneled into thesecurities market in the medium-term thanks to the prospects of themarket.
In a report released in October, the WorldBank said Vietnam continues to be among the top ten countries receivingthe largest amounts of remittances in 2013, with a total inflow of 10.6billion USD, a 6.5 percent increase compared to 2012.
According to the Committee for Overseas Vietnamese Affairs, some 4.5million Vietnamese are living in more than 100 nations and territoriesaround the globe.
There are also some 500,000 Vietnamese guest workers.-VNA
