Vietnam received approximately 13.8 billion USD in 2017, showing a year-on-year rise of 16 percent (Photo: VNA)Hanoi (VNA) – Vietnam was listed amongthe world’s top 10 recipients of remittances in 2017, according to the latestreport of the World Bank.
The report said following a 10 percent declinein 2016, Vietnam received approximately 13.8 billion USD in 2017, showing ayear-on-year rise of 16 percent.
With this rebound, Vietnam replaced Bangladeshin the list of top 10 countries and territories having the most substantialremittances in the world.
Up to 60 percent of the remittances to Vietnamlast year came from the US, while Europe accounted for nearly 20 percent of themoney sent home by overseas Vietnamese. Other major sources were China, theRepublic of Korea and Japan.
Ho Chi Minh City remained the biggest recipientof remittances in Vietnam, with the inflows estimated at 5.2 billion USD, up4.5 percent against the preceding year. In the first quarter of this yearalone, the city received 1.12 billion USD, an increase of 4.5 percent from thesame period last year.
Last year’s remittance hike was in contrast tomany predictions that the remittance to Vietnam would reduce as a result of theUS immigration and interest rate policies, as well as Vietnam’s zero percentdollar deposit interest rate.
According to analysts, Vietnam’s rapid economicgrowth and improved business environment have enhanced investor confidence andattracted remittances into the country.
Meanwhile, some analysts believe overseasremittances will be stable, thanks to the increasingly high number ofVietnamese workers overseas, macroeconomic stability, and the flexibility ofVietnam’s monetary policy.
Overseas remittances to Vietnam have increasedsince 2010, reaching 13.2 billion USD in 2015. However, they unexpectedlydropped to 9 billion USD in 2016.
The remittances to the country go through fourchannels: commercial banks, economic institutions, customs or post. About 72percent of the remittances go through commercial banks.
India took the top spot in global remittancerecipients in 2017 with 69 billion USD, followed by China (64 billion USD) andthe Philippines (31 billion USD).-VNA
VNA
