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Remittances make suprising surge in 2010
Remittances exceeded over US$8 billion last year, a figure that surpasses earlier forecasts of $6 billion and represents an increase of 25.6 per cent over 2009's total of $6.3 billion, announced the State Bank of Viet Nam
Remittances totalled $770 million in December alone.
Sacombank reported that remittances via its overseas remittance service hit nearly $1.3 billion, an increase of 45 per cent year-on-year, while remittances via DongA Bank's overseas remittance company reached $1.2 billion, an increase of 20 per cent over 2009.
Vietcombank also reported remittances of $1.2 billion.
Central Institute for Economic Management deputy director Vo Tri Thanh told Viet Nam News, "The two main reasons for the sudden hike in remittances this year are interest rates and the real estate investment stories here."
Commercial banks in Viet Nam were offering deposit interest rates on the US dollar of about 5 per cent per year compared to US rates of less than 1 per cent, so overseas Vietnamese were hoping to profit on the higher interest rates on their savings, Thanh said.
"Property is also very attractive to overseasVietnamese," he added. "Some recent reports suggest that 45-50 per cent of overseas remittances into Viet Nam have been poured into real estate."
Thanh dismissed conjecture that the global economic recovery had driven the rise in remittances, noting that the recovery continued to be too weak elsewhere in the world to have made a substantial contribution.
A Vietcombank official told Viet Nam News by telephone yesterday, on condition of anonymity, that the strong increase in remittances was due to an open overseas remittance policy that allowed senders and receivers to deposit or withdraw funds in US dollars.
National Monetary Policy Advisory Council member Cao Sy Kiem said that policymakers could do more to increase the confidence of overseas remitters and make remittances into Viet Nam more beneficial.
The World Bank recently released a report on remittances in 2010 which showed Viet Nam standing the 16th among the top 30 countries receiving remittances worldwide. India, China, Mexico, and the Philippines topped the list.
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