Vietnam among 10 first world remittance recipientsChristian Fernsby ▼ | December 11, 2019
Vietnam will end 2019 among the top 10 remittance recipients in the world, a study by the country's Investment and Development Bank predicted.
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Topics: Vietnam remittance
This will place Vietnam in the ninth place worldwide among those who receive more capital by that route and third place in East Asia and the Pacific, after China and the Philippines.
That factor will help keep the exchange rate between the dollar and the dong (national currency) stable, experts in finance and banking commented.
The Central Bank's policy of maintaining a zero interest rate for deposits in US dollars will encourage remittances to Vietnam and these will basically be used in investments rather than be deposited in banks, they said.
The high flow of remittances to the country is mainly due to the fact that its citizens residing abroad (about four and a half million) trust the stability of the national economy and see better investment opportunities in the domestic market.
The sums they send are mainly placed in production, business and the real estate market.
Remittances to Vietnam went from about 1.3 billion dollars in 2000 to 16 billion dollars last year. When they only did not grow was in 2009 due to the effects of the global financial crisis. ■