Ho Chi Minh City approves project to promote remittance resources

A series of policies to attract remittances in Ho Chi Minh City - Photo: QUANG DINH

Forming a channel for capital from remittances

According to the project, the Committee for Overseas Vietnamese will take the lead in implementing the project on Policies to effectively promote remittance resources in Ho Chi Minh City. At the same time, it will monitor, synthesize and periodically report to the Ho Chi Minh City People's Committee on the implementation results and difficulties and problems that need to be resolved and propose adjustments and supplements.

The project outlines policies to attract and promote remittance resources, such as orienting remittance sources to participate in the financial market (stock market, shares...), thereby forming a capital channel from remittance recipients for the purpose of saving to business people.

Support the transfer of capital from those who do not have profitable investment opportunities to those who have profitable investment opportunities. Orient the mobilization of remittances into the plan to equitize state-owned enterprises, sell public assets, etc.

At the same time, support the connection of financial institutions and remittance companies to diversify forms of money transfer in large potential markets, countries with a large number of Vietnamese workers and residents, and combine service expansion to create favorable conditions for overseas Vietnamese to transfer remittances to Vietnam.

Ho Chi Minh City will also propose that competent authorities consider allowing foreigners of Vietnamese origin who do not reside in Vietnam in general and the city in particular to open accounts, choose to keep deposits in foreign currency or in Vietnamese Dong and transfer principal and interest in the chosen foreign currency.

Financial institutions and remittance companies in Ho Chi Minh City will also study and propose the creation of three "parallel account" products, one of which is used to send money back to family in the city and their relatives in the city have full access to that account.

The second account is only accessible to overseas Vietnamese and can be used to accumulate money for future investment.

Ho Chi Minh City also proposed solutions to form production funds from remittances such as: real estate remittance fund, remittance fund to support small and medium production, investment fund for Vietnamese people abroad... to support Vietnamese investors from abroad to return to start businesses based on international experience in encouraging remittances.

Proposing to issue bonds with a term of 5 or 10 years to attract remittances to invest in the construction of technical infrastructure, social infrastructure, economic infrastructure, etc.

Ho Chi Minh City is the largest remittance attraction location in the country.

According to statistics, there are about 2.8 million overseas Vietnamese people who have connections with Ho Chi Minh City out of a total of about 6 million overseas Vietnamese people. Ho Chi Minh City is the center that attracts the largest amount of remittances in the country. Remittances sent to Ho Chi Minh City annually account for 38 - 53% of the total amount of remittances sent to Vietnam.

From 2012 to 2023, the amount of remittances to Ho Chi Minh City through commercial banks, economic organizations, and remittance companies reached more than 65 billion USD, increasing by an average of 3 - 7% per year.

In 2023, remittances to Ho Chi Minh City will reach 9.5 billion USD (equivalent to 228,000 billion VND). In the first 6 months of 2024, this figure will be 5.18 billion USD.

Compared with official development assistance (ODA) capital sources, indirect or direct investment from abroad, remittances have high stable value and do not come with strict investment conditions...

However, Ho Chi Minh City assessed that the city does not have specific mechanisms and policies to attract and promote this resource.

Source: https://tuoitre.vn/tp-hcm-phe-duyet-de-an-phat-huy-nguon-luc-kieu-hoi-20240927211753054.htm