An employee counts American notes in a bank in Hanoi. Photo by VnExpress / Giang Huy
Vietnamese abroad are expected to send home more than $ 18.06 billion this year, a new record, making the country the eighth-largest remittance recipient in the world.
The value is expected to increase 5% from last year to 4.9% of Vietnam’s GDP, according to a report by the World Bank and the Global Knowledge Partnership on Migration and Development (KNOMAD).
This means Vietnam will likely gain a spot to rank eighth in remittances behind India, China and five other countries.
This is the eighth consecutive year that Vietnam has recorded growth in remittances.
Ho Chi Minh City is the largest remittance recipient location in Vietnam, accounting for 30 percent of the total, followed by central and northern locations.
Agribank, one of the largest remittance transfer organizations, is expected to see remittances increase 15% year-on-year to $ 1.2 billion this year.
Dao Minh Tuan, Deputy Director of Vietcombank, said that besides the United States and Canada, two major remittance markets, he has also seen a large amount of Asian economies like South Korea, Japan and Taiwan this year.
Last year, the Vietnamese sent $ 17.2 billion home, up almost 3% from 2019.
The World Bank and KNOMAD report also showed that remittances to low- and middle-income countries are expected to increase 7.3% to $ 589 billion this year.
Factors contributing to the strong growth in remittances are the determination of migrants to support their families in times of need, aided by the economic recovery in Europe and the United States, which in turn has been supported by stimulus programs. budget and employment, he added.
