In 2021, overseas Vietnamese have sent home about USD 12.5 billion, an increase of 10% from last year but still lower than the WB's forecast of USD 18 billion.

The above data was presented by a representative of the Foreign Exchange Management Department (SBV) at a press conference on December 28.

This figure is nearly USD 5 billion lower than the  USD 18 billion estimated by the World Bank (WB) and the International Organization for Migration (IOM).

According to a representative of the Foreign Exchange Management Department, the figure given by the World Bank is only an estimate and there is always a discrepancy with official statistics from the State Bank. The figure of USD  12.5 billion reported by the State Bank of Vietnam is considered "accurate" through money transfer forms with name, age, amount, etc. via credit institutions, remittance companies and post offices.

“In 2019, remittances to Vietnam were affected, but from last year to this year, the amount of remittances to Vietnam still recorded good growth. This is an important supply to stabilize the foreign exchange market and foreign exchange reserves” said a representative of the Foreign Exchange Management Department.

Deputy Governor of the State Bank Dao Minh Tu added that remittances mainly flow through credit institutions, the rest through remittance companies (28%) and post offices (2%).

In Vietnam, Ho Chi Minh City is one of the localities with the highest remittance volume, accounting for about 30%, followed by the Central, Northern and Western provinces.

According to the previous forecast of the World Bank, Vietnam's inward remittances ranked third in the East Asia-Pacific region and eighth in the world.

Not only in Vietnam, the amount of remittances recorded to low- and middle-income countries also increased by more than 7%, to USD 589 billion this year. The increase in remittances despite the pandemic is explained by Michal Rutkowski, World Bank's Global Director for Social Security and Employment, driven by migrants' determination to help their families and recover economic recovery in Europe and the US thanks to the push from fiscal stimulus packages, job support programs.

Kylie Nguyen