Remittances flood into the country during 2011

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Inward remittances to Vietnam have spiked in the first six months of 2011.

Overseas remittance revenue at Ho Chi Minh City-based Sacombank Remittance Express Company Limited (SBR) was around $800 million in the first six months of 2011, up 30 per cent year-on-year, according to Sacombank’s general director Tran Xuan Huy.

SBR boldly set its 2011’s profit target at VND10 billion ($4.8 million), a sharp hike compared to the average VND3-4 billion in previous years.

Inward remittance revenue at ACB’s Western Union money transfer centre surged 8 per cent in 2011’s first half against the same period in 2010 and the company aims to have growth of 10 per cent in full year revenue against 2010.

“Inward remittance will possibly be more fruitful in the remaining months of the year as that is the time overseas Vietnamese send money home for their relatives before the Lunar New Year as usual,” said Western Union’s director Tran Cong Binh.

DongA Bank Remittance Company set a 20 per cent hike in 2011’s inward capital revenue against 2010 and would continue to be the market’s leading player in terms of overseas remittance revenue.

In 2010, the company raked in $1.2 billion in inward remittance revenue, surging 20 per cent against 2009. It has partnered with over 60 businesses worldwide to promote remittance services.

“DongA Bank’s remittance firm will strive to boost remittance services’ added value through product diversification, and to enhance convenience and optimise benefits to our customers,” said the company’s executive.

For inward remittance revenue to spike in 2011, banks rushed to launch convenient payment services to lure in customers. For instance, Ho Chi Minh City-based Ficombank has just inked a cooperative deal with Australia-based Remit2Vietnam (R2V) on remittance transfers. Accordingly, Remit2Vietnam will take remittances from customers in the US, Australia, Canada  for transfer to Vietnam where Ficombank acts as a money delivery agency.

Saigon Commercial Joint Stock Bank (SCB) is running a sales promotion programme from now until August 31 honouring its inward remittance individual customers. The customers can sell their remittances to the bank at favourable rates.

Around 55,000 Vietnamese labourers currently work abroad with incomes of around $1.8-$2 billion each year and they often send home money. They, together with overseas Vietnamese, annually sent home at least $6.5 billion, said State Bank governor Nguyen Van Giau.