Vietnam expects to receive overseas remittance of over US$4 billion this year, some experts forecast, hoping for strong growth [50 per cent] of overseas remittance in the last months of the year.
The Eastern Asia Bank’s (EAB) Overseas Remittance Service Company, which now holds 25 per cent of the market share, expected to gain a turnover of US$780 million this year, a year-on-year increase of 15 per cent. Based on the market share and the turnover of EAB Overseas Remittance Service Company, total overseas remittance volume should be at least US$3.2 billion.
According to Ta Nguyen Ngoc, director of the Department of Relations on Economics, Science and Technology under the Ministry of Foreign Affairs’ Committee for Overseas Vietnamese, this figure is likely to reach over $4 billion, saying, last year’s overseas remittance was $4.29 billion and this year saw new more favorable conditions.
In fact, the overseas remittance volume has been increasing steadily over the last years, $35 million in 1991, $136.6 million in 1992, $141 million in 1993, $249.5 million in 1994, $285 million in 1995, $469 million in 1996, $400 million in 1997, $950 million in 1998, $1.2 billion in 1999, $1.757 billion in 2000. In 2004, the overseas remittance volume hit $3.8 billion, or 85.7 times higher than 1991, posting a record growth rate of 40.8 per cent per annum.
It is estimated that some $23 billion has been remitted into Vietnam in the last 16 years, equal to 60 per cent of total foreign direct investment (FDI) capital registered since 1988.
Recent significant changes have made Vietnam an attractive investment destination, Ngoc said, citing the country’s entry into WTO and the successful organization of the APEC summit in Hanoi in November.
Additionally, right from October, domestic and foreign money remittance started bustling when banks rushed to launch numerous remittance services. Namely, the Industrial and Commercial Bank of Vietnam (Incombank) announced it would receive money through E-Partner card, while the US-based Wells Fargo & Co has set up remittance services to Vietnam; the Vietnam International Bank (VIBank) also established relations with new partners.
Currently, money is remitted mainly from the US, Russia, the UK and Australia. Meanwhile, the remitted volume from Taiwan, Republic of Korea has been considerably increasing.
Nevertheless, one of the biggest concerns of state management authorities is how receivers are using the overseas remittance.
According to Ngoc, total overseas remittance in 2005 was $4.29 billion, but less than $1billion was invested in the national economy.
VnEconomy
Vietnamese
