VN to absorb US$ 12 bln remittances in 2014

VGP - Overseas remittances to Viet Nam are estimated to touch US$ 12 billion in 2014, according to a report of the Central Institute for Economic Management (CIEM).

December 18, 2014 7:37 PM GMT+7

The CIEM on December 17 released a report on an overview of overseas remittances in Viet Nam over the last 20 years and their impacts on socio-economic development.

The report found that overseas remittances to Viet Nam expanded around 38.6% and valued around US$ 80.38 billion in the 1991-2013 period.

Overseas remittances accounted for about 8% of the country’s GDP and placed Viet Nam on the list of the world's top-10 overseas remittance recipients in 2014.

According to the report, between 2007 and 2013, overseas remittances were the second largest capital source in Viet Nam (after disbursed FDI) and outstripped the amount of disbursed ODA. Especially, in the 2004-2006 period, it was the biggest source of capital for the country.

The source helps stimulate the gross domestic product (GDP) of the country, contribute to the nation's foreign exchange reserves and is far more stable than monetary inflows from foreign direct investment (FDI), according to CIEMDeputy Director Dr. Vo Tri Thanh.

The CIEM also forecast that the inflow would increase slightly in the next two years before falling in 2017./.

By Kim Anh