Remittances to Vietnam in 2024 remain stable

(PLVN) - In 2024, despite unfavorable developments in the world economy and politics, remittances to Vietnam will still reach 16 billion USD, which is considered stable, equivalent to 2023 - the year of record growth in remittances.

20/01/2025 06:54

Remittances to Vietnam remain stable on the basis of a record high in 2023. (Photo: VCB).

(PLVN) - In 2024, despite unfavorable developments in the world economy and politics, remittances to Vietnam will still reach 16 billion USD, which is considered stable, equivalent to 2023 - the year of record growth in remittances.

Many factors affect the amount of remittances sent home.

According to statistics, the amount of remittances sent to Vietnam in 2024 is estimated to reach 16 billion USD - equivalent to 2023 - the year of record growth of remittances, of which more than 9.5 billion USD was transferred to Ho Chi Minh City. Remittances mainly come from two sources, including overseas Vietnamese sending support to relatives in the country and Vietnamese workers abroad sending money back for investment and savings. The summary report of the Ministry of Labor, War Invalids and Social Affairs in 2024 shows that there are currently over 700,000 Vietnamese workers working abroad under contracts with stable incomes, sending home about 3.5 - 4 billion USD in remittances per year.

According to Mr. Nguyen Duc Lenh, Deputy Director (VP) of the State Bank of Vietnam (SBV) Ho Chi Minh City branch, the amount of remittances sent to the city in 2024 increased by 0.9% compared to the same period in 2023; in which, Asia and America are the two regions with the highest proportion of remittances, up to 82.2%. Compared to 2023, the amount of remittances sent to Asia increased by 2.5%; America increased by 7.4%; Oceania increased by 8.7% but decreased in Europe with a decrease of up to 23%, Africa also decreased by 33%.

The Deputy Director of the State Bank of Vietnam, Ho Chi Minh City Branch, said that objective factors regarding the world economic situation; labor market; income and employment of overseas Vietnamese and Vietnamese people studying and working abroad; as well as the quality and efficiency of remittance payment services of commercial banks and remittance companies continue to be factors that directly affect the amount of remittances sent back in 2024.

However, Mr. Nguyen Duc Lenh assessed that the amount of remittances transferred to the city, although the growth rate was not as high as in the past 2 years, continued to maintain at over 9 billion USD. In particular, along with other foreign currency sources, remittances transferred in 2024 have made an important contribution to the socio-economic development of the city and promoted the role of foreign currency supply to effectively implement monetary and foreign exchange policies, with the goal of stabilizing the macro economy and promoting economic growth. This will also be the driving force to attract remittances in 2025 and the coming period.

Remittance Association will be established

A representative of Vietcombank Remittance Company (VCBR) said that in 2024, except for a sudden change in the second quarter of 2024 from the labor export market, due to fluctuating exchange rates, the source of remittances in the past year generally remained stable as in 2023 (the year with record remittance turnover). However, there were also many factors that significantly reduced the value of remittance flows from key markets to Vietnam, significantly affecting workers and their families in the country.

It is the fluctuations from political tensions and global economic recession, major economies such as the US, Europe, Japan, South Korea... are under great pressure. The Japanese Yen has fallen to its lowest level in 30 years, causing the value of deposits from Japan to decrease significantly. Similarly, the Taiwanese dollar (China) has also depreciated sharply due to the pressure of declining exports and the weakening of the regional economy, while the Korean Won is affected by high interest rates and global recession.

Associate Professor, Doctor, economic expert Dinh Trong Thinh commented that the continued stability of remittances on the basis of a record high increase in 2023 shows the confidence of overseas Vietnamese in the stable macroeconomic situation and favorable investment and business environment in the country, along with the mechanisms and policies of the Government and the State Bank of Vietnam on attracting remittances. This expert believes that the flow of remittances to Vietnam will continue to increase in the coming years due to the stable economic and political situation in the country, with many investment and business opportunities.

VCBR representative added that Ho Chi Minh City will continue to be the leading force in attracting remittances to Vietnam. Therefore, VCBR will continue to make important contributions to the Project "Effectively promoting remittance resources" of the Ho Chi Minh City People's Committee, contributing to optimizing foreign currency capital, promoting sustainable socio-economic development.

Notably, VCB representative “revealed” that the company is also taking the first steps to establish the Vietnam Remittance Association, a specialized organization to enhance the position of the remittance industry in the international arena. At the same time, it is committed to implementing specific initiatives, such as supporting the improvement of mechanisms and policies, creating more favorable conditions for overseas Vietnamese to send money home.

Source: https://baophapluat.vn/kieu-hoi-2024-ve-viet-nam-o-muc-on-dinh-post538153.html