Remittances to Vietnam in 2024 are estimated at about 16 billion USD, maintaining the record-high levels seen in 2023. (Photo: VNA)

Deputy Prime Minister and Foreign Minister Bui Thanh Son described remittances as a critical economic source for the country. Remittances to Vietnam in 2024 were estimated at about 16 billion USD, maintaining the record-high levels seen in 2023.

Remittances sent to the country currently have two main sources, from overseas Vietnamese and Vietnamese people working abroad.

According to the State Bank of Vietnam’s Ho Chi Minh City branch, 9.6 billion USD, or 60% of the total remittances, flew through financial institutions, representing a 140 million USD increase from the previous year.

Regional breakdown shows Asian countries dominating remittance transfers, accounting for nearly 54% of the total, with a remarkable 24% year-on-year growth. Oceania saw a 20% increase and Americas a 4.4% rise, while European transfers declined by 19%.

Notably, over 74% of remittances were processed through remittance companies while traditional financial institutions handled the remaining 26%.

Credit organisations are cashing in on the remittance surge by enhancing technological infrastructure and creating attractive promotional programmes to facilitate money transfers

Agribank, for instance, launched a campaign called “Tet remittances – strengthening familial bonds”, offering Western Union customers multiple chances to win prizes totalling more than 1.3 billion VND (over 51,700 USD).

As the VND/USD exchange rate fluctuated significantly in 2024, increasing more than 5% in 2024. Remittances serve as a crucial external currency source, helping stabilise foreign exchange markets and increase the national foreign currency reserve.

Economic experts recommend policy refinement to facilitate remittance procedures for both senders and recipients, encourage the senders to land investment in the homeland, and connect them with domestic business opportunities.

Vietcombank Remittance predicted that the East Asian and Asia – Pacific will see around 137 billion USD in remittance transfer in 2025, with the market expected to remain relatively stable./.