While Vietnam has experienced an unprecedented boom in recent decades, the current pandemic is now having a clear negative impact on the economic outlook. The effects of the crisis, into which Vietnam has fallen completely through no fault of its own, are visible to the naked eye. In Mui Ne for instance, there are only very few guests at the resorts. Ho Chi Minh City’s otherwise lively District 1 restaurants are deserted, and in Hanoi’s Tay Ho district, rents are falling due to a lack of tenants. There are countless other examples. In short, the crisis is felt everywhere. However, these are only the indicators that are quickly recognisable from the outside. Foreign trade, investments, and the not negligible remittances from overseas Vietnamese are also putting pressure on the economy. It is clear to every observer that economic recovery will be a Herculean task. But what can Vietnam do to reposition itself powerfully and finally emerge from the crisis stronger? 

The ongoing COVID-19 outbreak has taken a toll on overseas remittances to Vietnam this year.

An expected decline caused by the global health crisis in exports and inflows of foreign investment and remittances is likely to weaken Vietnam’s external position this year.

Global remittances are projected to drop by 20 per cent in 2020 – the sharpest decline in history because of the economic fallout stemming from the COVID-19 pandemic.

The Philippines is likely to lose about 228 billion PHP (4.5 billion USD) this year in remittances from about 10 million overseas Filipino workers (OFWs) due to the COVID-19 pandemic.

In past years, inward remittances have made remarkable contributions to Vietnam’s economic growth. Philip Ziter, a lawyer in the Ho Chi Minh City office of US-backed consulting firm Russin & Vecchi, provides analysis on investment opportunities related to blockchain remittances for the nation, as well as policy recommendations.

With the market warming up at the end of last year, the number of real estate deals has also been on the rise thanks to soaring remittances.

Remittances to Viet Nam are likely to increase in 2019 because overseas Vietnamese people believe in the stability of the economy and see better investment opportunities, economist Nguyen Tri Hieu said.

Money transfers to poor and developing countries hit a fresh record in 2018 and should become their largest source of external financing this year, the World Bank said on Monday (Apr 8).

Remittances to HCM City were estimated to reach US$1.2 billion in the first quarter of this year, according to Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam’s branch in the southern city.

Around 4.5 million Vietnamese people are living, working, and studying in over 100 countries and territories around the world, contributing $16 billion in remittances to the country last year. With added global experience and knowledge, overseas Vietnamese devote much for their home nation’s prosperity. Phuong Hao reports.

Vietnam was expected to remain one of the top ten remittance receivers in 2018, according to the latest edition of the World Bank’s Migration and Development Brief released last weekend.

Vietnam has been listed in the top ten countries receiving the highest overseas remittances worldwide, according to a report jointly conducted by United Nations Development Programme (UNDP) and the Vietnamese Ministry of Planning and Investment.

Vietnam’s FX reserves have bolstered up to a massive $57 billion, and given the upcoming divestment of state-owned enterprises, the Year of the Dog promises to bring the nation even more foreign currency notes in the months to come.

Over the course of January, the total overseas remittances wired from compatriots to families and relatives living in Vietnam saw a notable increase, especially with Tet Holiday just around the corner, offering domestic banks opportunities to foster overseas remittance wiring services, expand revenue, enhance the stability of the VND, and relieve the pressure on the USD/VND exchange rate.