Soaring remittances expected to excel in Q4

In the first 10 months of this year nearly $3.7 billion in overseas remittances flowed into Vietnam via Ho Chi Minh City’s banking system, up 30 per cent on-year, said the State Bank’s (SBV) city branch deputy director Nguyen Hoang Minh.

Of this, 69 per cent of remittances were for production and business sectors, 21 per cent for property, and the remaining 10 per cent came in the form of gifts.

Minh forecasted inbound remittances to Ho Chi Minh City could reach $5 billion this year, exceeding the $4.5-$4.8 projection and 2012’s $3.8 billion.

Sacombank Remittance (SBR) registered $1.7 billion in the first nine months, making it the leading performer.

General director Phan Huy Khang said the bank is likely to surpass its annual target and hit 15-20 per cent growth this year as remittances often jump in the fourth quarter, before Vietnam’s Lunar New Year, Tet.

DongA Bank Remittance also said it expected a 15-20 per cent hike on-year. It posted $1.6 billion in remittances last year.

According to the World Bank’s latest forecast, Vietnam would be named among the top 10 remittance recipients worldwide with an estimated $11 billion this year. India, China and the Philippines look to be the top three performers.

Inbound remittances from China rose sharply in the first 10 months, accounting for 5 per cent of the total via Ho Chi Minh City banks.

North America and Australia continue to be the highest sources, contributing more than 60 per cent to the total in recent years.

A senior financial expert estimated remittances to Vietnam to surge 15-25 per cent this year against last.

Member of the National Financial and Monetary Policy Advisory Council Tran Du Lich expected remittances to continue gaining momentum in coming years in the wake of a global economic rebound and that they would have a positive impact on Vietnam’s foreign exchange market and the exchange rate.