Vietnam could receive $12 billion in overseas remittances in 2014, according to recent estimates from CIEM.
The Central Institute for Economic Management (CIEM) under the Ministry of Planning and Investment (MPI) last week estimated that total overseas remittances to Vietnam would touch $12 billion in 2014 compared to $10.6 billion in 2013.
In its latest report released on December 17, CIEM also provided an overview of overseas remittances in Vietnam over the last 20 years and their impacts on socio-economic development.
The report found that overseas remittances to Vietnam grew by around 38.6 per cent and totaled around $80.38 billion in the 1991-2013 period. They accounted for about 8 per cent of the country’s GDP and placed Vietnam on the list of the world’s Top 10 recipients of overseas remittance in 2014.
Between 2007 and 2013, overseas remittances were the second largest capital source in Vietnam - after disbursed foreign direct investment (FDI) - and outstripped the amount of disbursed official development assistance (ODA). In the 2004-2006 period it was the largest source of capital for the country.
Remittances helped to stimulate Vietnam’s GDP, contributed to its foreign exchange reserves, and is far more stable than monetary inflows from FDI, according to CIEM Vice President Dr. Vo Tri Thanh.
CIEM also forecasts that remittances will increase slightly over the next two years before falling in 2017.