Attracting remittances for national development.

In 2024, remittances to Vietnam reached a record high, estimated at $16 billion. So how can we continue to attract remittances and other resources to serve socio -economic development in this era of national progress?

A cultural performance by overseas Vietnamese during the Spring Homeland 2025 program. Photo: Nhat Bac.

According to statistics, remittances to Vietnam in 2024 are estimated at US$16 billion, equivalent to 2023, a year of record growth in remittances. Of this amount, more than US$9.5 billion will be transferred to Ho Chi Minh City. Over the past years, thanks to open policies, Vietnam has attracted an increasing amount of remittances into its economy and has consistently ranked among the top 10 countries receiving the most remittances in the world for many years.

Remittances primarily come from two sources: overseas Vietnamese sending money to support their relatives in Vietnam, and Vietnamese workers abroad sending money back for investment and savings. In recent years, banks have strongly developed financial services, facilitating quick, safe, and convenient international money transfers and receipts. This has attracted and created conditions for an increasing amount of remittances to Vietnam. This money has been and is being channeled into areas such as consumption, investment, and business, helping people improve their lives and bringing many economic and social benefits.

The continued strong growth in remittances in recent times reflects 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 to attract remittances. In the context of the country entering a new era requiring significant resources for development, the question of what policies can promote remittances is a pressing issue.

Recently, during a meeting with exemplary overseas Vietnamese attending the 2025 Spring Homeland Festival, National Assembly Chairman Tran Thanh Man emphasized that the Vietnamese community abroad, currently living in over 130 countries with 6 million Vietnamese people, is a strength and a bridge between these countries and Vietnam, and is an important and inseparable force for the country.

The Chairman of the National Assembly also expressed his hope that in investment, technology transfer, and economic development, the National Assembly and the Standing Committee of the National Assembly expect overseas Vietnamese to continue playing a pioneering role in investing in the country, transferring technology, starting innovative businesses, and connecting with international organizations and enterprises to promote the rapid and sustainable development of the national economy. The National Assembly is committed to continuing to improve policies to support and create the best conditions for these activities.

According to Deputy Minister of Foreign Affairs and Chairwoman of the State Committee for Overseas Vietnamese Affairs, Le Thi Thu Hang, the Politburo's Resolution 36 of 2004 on overseas Vietnamese affairs has contributed to unlocking the resources of overseas Vietnamese, encouraging them to actively contribute to the country's development. Over the past 20 years, the return of overseas Vietnamese entrepreneurs to invest and do business in Vietnam has become increasingly prominent. Particularly since 2020, remittances to Vietnam have surpassed disbursed FDI and ODA foreign aid, contributing to improving the balance of payments, stabilizing the macroeconomy, helping many families escape poverty, and improving their quality of life. In addition, thousands of small and medium-sized enterprises owned by overseas Vietnamese have invested and operated in Vietnam across all sectors of social life.

Ambassador Nguyen Phu Binh, Chairman of the Association for Liaison with Overseas Vietnamese, said that in order to harness the resources of overseas Vietnamese to contribute to the country, the Association has currently called for and brought hundreds of investment projects to localities and is promoting the organization and attraction of foreign individuals to participate in the socio-economic development of the country.

Economic experts acknowledge that Vietnam has implemented numerous policies to attract remittances for investment in projects and economic development. Currently, banks are actively investing heavily in technology and services to facilitate the sending and receiving of remittances, especially during the period leading up to the Lunar New Year, the busiest time of year for remittances. However, to attract remittances more effectively in this era of national development, Mr. Nguyen Tri Hieu, a Vietnamese expatriate in the US, suggests that, in addition to existing solutions such as encouraging remittances through overseas Vietnamese, family connections, and the system of embassies worldwide, a policy of issuing bonds to overseas Vietnamese is necessary. Up until now, we have focused on attracting remittances, with individuals or businesses sending money back to the country for investment, but there hasn't been a national-level initiative. Therefore, the government should consider issuing government bonds to overseas Vietnamese. "Issuing bonds is a way to systematically increase the attraction of remittances," Mr. Hieu said.

Dr. Cao Sy Kiem, former Governor of the State Bank of Vietnam, stated that many factors are needed to attract remittances. Accordingly, domestically, the socio-economic development must be stable, with many effective and profitable projects. In particular, the institutional framework must be open and transparent. “When they think about sending money back home to invest, it already reflects a patriotic spirit. They could invest anywhere in the world where it's profitable, but because of their patriotism, they invest back home to contribute to their homeland. Therefore, investment policies must be open and transparent, and investment projects must be selective to encourage them to invest more in the country,” said Dr. Kiem.

Source: https://daidoanket.vn/thu-hut-kieu-hoi-cho-phat-trien-dat-nuoc-10298820.html