Regarding the Project "Policy to attract and promote remittance resources in Ho Chi Minh City in the period of 2024 - 2030", Dr. Bui Duy Tung, RMIT University Vietnam, shared that in countries such as India and Mexico, remittances have been successfully transferred to areas such as education, health care and environmental conservation... This direction not only creates profits for investors but also improves the local community.
Investing in infrastructure
Reporter: The project "Policy to attract and promote remittance resources in Ho Chi Minh City in the period of 2024 - 2030" has just been approved by the Standing Committee of the Ho Chi Minh City Party Committee, the units are completing the content to submit to the Ho Chi Minh City People's Committee for early promulgation. In your opinion, what solutions contribute to mobilizing the golden resources from remittances?
- Dr. BUI DUY TUNG: In countries like India and Mexico, remittances have been successfully channeled into areas like education, health care and environmental conservation, not only generating profits for investors but also enhancing local communities.
For example, investing in high-tech education hubs or green energy projects can have a dual impact, boosting economic growth while addressing social challenges such as education gaps and environmental degradation.
In Vietnam, especially in Ho Chi Minh City, leveraging remittances in similar ways could yield significant benefits. For example, investing in healthcare infrastructure, especially in underdeveloped areas, could improve public health outcomes while generating steady returns. These projects would then become attractive to the overseas Vietnamese community.
The success of remittance programs in the Philippines is closely tied to the strength of their overseas Vietnamese networks. Ho Chi Minh City and the country as a whole can also build and expand communication channels with the overseas Vietnamese community through embassies, consulates and overseas Vietnamese organizations, not only to provide information but also to promote a sense of participation and ownership among the overseas Vietnamese community. These networks serve as important channels not only for remittances but also for transferring skills, knowledge and technology back to Vietnam.
By creating a dialogue channel with continuously updated information for the Vietnamese expatriate community, the city can better understand the interests and capabilities of these communities, thereby adjusting investment opportunities to suit them. For example, Ho Chi Minh City can build a remittance information portal, which continuously updates information on projects, policies, and investments to help overseas Vietnamese have a transparent and accurate information channel.
Development of financial products
What role do financial solutions play in promoting remittances, sir?
- Providing flexible financial solutions is key to turning remittances into productive investments. Countries like Kenya have had great success with mobile money platforms that enable easy and secure financial transactions for their diaspora communities.
Ho Chi Minh City can develop similar financial products, such as overseas Vietnamese bonds, which have been successfully used in countries like Israel and India as a way for overseas Vietnamese to express their patriotism and raise large amounts of capital for national development projects.
Essentially, these bonds are government or corporate debt, issued to citizens living abroad. The funds raised through these bonds are often used for large-scale infrastructure projects or to support economic stabilization.
In addition to diaspora bonds, other innovative financial products can be structured to attract remittances into effective channels: real estate investment funds for expatriates, development impact bonds, crowdfunding platforms.
Developing financial products is considered one of the solutions to help Ho Chi Minh City attract remittances to serve socio-economic development. Photo: LAM GIANG
Investing in housing
The laws related to real estate that have just come into effect, including the regulation that overseas Vietnamese can also own houses in Vietnam, will they contribute to promoting the flow of remittances into this market?
- Allowing overseas Vietnamese to own houses in Vietnam opens up a new, safe and attractive investment channel for overseas Vietnamese. Real estate is a type of asset with long-term value and is often considered a safe haven for capital. With the new regulation, many overseas Vietnamese may see this as an opportunity to invest in their homeland, not only for profit but also for sentiment and attachment to the country. In other countries such as the Philippines and Mexico, similar policies have helped promote remittances into the real estate market, contributing positively to the development of this industry.
Allowing home ownership will help overseas Vietnamese feel more secure when sending money back to invest in real estate, minimizing legal risks and other barriers. This also means increasing stability and transparency in the real estate market, as transactions will be conducted through official channels, in compliance with legal regulations.
In addition to economic factors, home ownership also plays a significant role in strengthening the relationship between overseas Vietnamese and their homeland. This not only promotes remittances but also stimulates overseas Vietnamese to participate in social, charitable and community development activities.
What is a remittance investment fund?
The remittance investment fund is a financial product in which overseas Vietnamese can contribute capital to a common fund to invest in development projects in Ho Chi Minh City. These funds can be managed by reputable financial institutions, ensuring transparency and efficiency in the use of capital.
Remittance investment funds can be designed to invest in a variety of sectors, from real estate and infrastructure to high technology and renewable energy, not only reducing risks for investors but also ensuring that Ho Chi Minh City's priority sectors receive the necessary investment.
With investment funds, overseas Vietnamese can contribute a small amount of money and still participate in large projects. This expands investment opportunities to more people instead of focusing only on those with large capital.
Source: https://nld.com.vn/huong-kieu-hoi-vao-du-an-co-loi-ich-ro-rang-196240830200606153.htm
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