Most overseas remittances to Vietnam have been used for meeting dailyexpenses and for purchasing gold, according to the Central Institute forEconomic Management (CIEM).
A study by CIEM and Western Union,released on December 17, to review overseas remittances to Vietnam andtheir contribution to the country's socio-economic development showedthat more than 35 percent of these remittances were used for dailyexpenses; 16 percent for business purposes; and the remainder was spenton casual shopping, debts, fees for healthcare services, and so on.
"Morethan 16 percent of overseas remittances was poured into production, andbusinesses have played the role of a life vest for investors who haddifficulty accessing bank loans due to strict regulations," it added.
Interms of investment, one-third of the surveyed remittance recipientsput the money into savings accounts, 27-30 percent invested inproduction, 20 percent invested in gold trading, and 16-17 percentinvested in the real estate market.
Statistics reported by theState Bank of Vietnam's HCM City branch told a different tale, revealingthat overseas remittances were mostly invested in production and theproperty sector over the past three years.
Vo Tri Thanh, CIEM'sdeputy director, said this year that Vietnam ranked amongst the world'stop recipients of overseas remittances.
The total remittances tothe homeland so far this year have been estimated at 11-12 billion USDand will likely remain unchanged for the next two years, Thanh remarked.
The total remittance value was equivalent to 8 percent of the country's GDP.
Inthe period 1991-2013, the annual average growth rate of overseasremittances to Vietnam was 38.6 percent, with a total value of 80.3billion USD.
Some 57 percent of Vietnam's remittances came fromoverseas Vietnamese living in the United States, followed by thoseresiding in Canada (8.4 percent), Germany (6 percent), Cambodia (4percent), and France (4 percent).
He added that the remittanceshave had a positive effect on the economy as they increase the country'sforeign currency reserves.
In addition, remittances invested instocks and the property sector have been on the decline, which is apositive sign for remittance flows.
In the period 2007-13,overseas remittances were the second-largest source of income forVietnam after foreign direct investment and a higher than disbursed ODA.
In the period 2004-06, remittances formed the largest source of capital inflow into Vietnam.
Accordingto the Bureau of Consular Affairs, last year, more than five millionVietnamese were living and studying in 104 countries and territories.
Thenumber of Vietnamese labourers in foreign countries was expected torapidly increase in the coming period after Vietnam integrated with theworld and the region.
The CIEM-Western Union study also showed that 25 percent of remittances had been transferred through informal channels.-VNA
A study by CIEM and Western Union,released on December 17, to review overseas remittances to Vietnam andtheir contribution to the country's socio-economic development showedthat more than 35 percent of these remittances were used for dailyexpenses; 16 percent for business purposes; and the remainder was spenton casual shopping, debts, fees for healthcare services, and so on.
"Morethan 16 percent of overseas remittances was poured into production, andbusinesses have played the role of a life vest for investors who haddifficulty accessing bank loans due to strict regulations," it added.
Interms of investment, one-third of the surveyed remittance recipientsput the money into savings accounts, 27-30 percent invested inproduction, 20 percent invested in gold trading, and 16-17 percentinvested in the real estate market.
Statistics reported by theState Bank of Vietnam's HCM City branch told a different tale, revealingthat overseas remittances were mostly invested in production and theproperty sector over the past three years.
Vo Tri Thanh, CIEM'sdeputy director, said this year that Vietnam ranked amongst the world'stop recipients of overseas remittances.
The total remittances tothe homeland so far this year have been estimated at 11-12 billion USDand will likely remain unchanged for the next two years, Thanh remarked.
The total remittance value was equivalent to 8 percent of the country's GDP.
Inthe period 1991-2013, the annual average growth rate of overseasremittances to Vietnam was 38.6 percent, with a total value of 80.3billion USD.
Some 57 percent of Vietnam's remittances came fromoverseas Vietnamese living in the United States, followed by thoseresiding in Canada (8.4 percent), Germany (6 percent), Cambodia (4percent), and France (4 percent).
He added that the remittanceshave had a positive effect on the economy as they increase the country'sforeign currency reserves.
In addition, remittances invested instocks and the property sector have been on the decline, which is apositive sign for remittance flows.
In the period 2007-13,overseas remittances were the second-largest source of income forVietnam after foreign direct investment and a higher than disbursed ODA.
In the period 2004-06, remittances formed the largest source of capital inflow into Vietnam.
Accordingto the Bureau of Consular Affairs, last year, more than five millionVietnamese were living and studying in 104 countries and territories.
Thenumber of Vietnamese labourers in foreign countries was expected torapidly increase in the coming period after Vietnam integrated with theworld and the region.
The CIEM-Western Union study also showed that 25 percent of remittances had been transferred through informal channels.-VNA
