|A staff member at Maritime Bank counts US dollars. Remittance flows into the country during the Tet season are expected to rise to 35 per cent, increasing the country's total remittances to nearly US$11 billion. — VNA/VNS Photo Tran Viet
HA NOI (VNS)— Remittance flows to the country during the Tet season are expected to rise to 35 per cent, increasing the country's total remittances to nearly US$11 billion, industry insiders said.
In HCM City, remittance inflows are estimated at roughly $4.8 billion against $4.1 billion last year, said deputy director of the State Bank of Viet Nam's HCM City branch Nguyen Hong Minh.
Banks were optimistic about the sharp rise in remittance flows to the country during the last month of the year, thanks to the economic rebound in countries that Viet kieu (overseas Vietnamese) live.
The unemployment rates in many countries, including the US, Australia and Canada, has fallen to roughly 4-5 per cent, from 9-10 per cent, helping Viet kieu be employed, while enjoying stable and higher incomes.
Vietcombank deputy general director Pham Thanh Ha said the Government's policies had encouraged Viet kieu and Vietnamese guest workers to send money home.
Ha also noted that remittance recipients can receive foreign currencies or Vietnamese dong, and do not have to save this money in banks.
Further, the stability of the dong also helps attract more remittance flows, it was noted.
The remittance flows have reduced money problems for firms and households, as most of the remittances have been poured into short-term businesses and production.
Financial expert Le Xuan Nghia forecast that the remittances could be funneled into the securities market in the medium-term thanks to the prospects of the market.
In a report released in October, the World Bank said Viet Nam continues to be among the top ten countries receiving the largest amounts of remittances in 2013, with a total inflow of $10.6 billion, a 6.5 per cent increase compared to 2012.
According to the Committee for Overseas Vietnamese Affairs, some 4.5 million Vietnamese are living in more than 100 nations and territories around the globe.
There are also some 500,000 Vietnamese guest workers. — VNS