Remittances without banks and illegal routes are still common

To effectively mobilize remittances, it is necessary to have a clear investment portfolio and information for overseas Vietnamese - Photo: BT

On October 11, at the conference to deploy the Project on Policies to effectively promote remittance resources in Ho Chi Minh City from now until 2030 , Ms. Vu Thi Huynh Mai - Chairwoman of the Committee for Overseas Vietnamese in Ho Chi Minh City - said that the project is a completely new policy of the city.

Successful implementation of the project requires effective coordination among state agencies in Ho Chi Minh City and ministries, branches, localities, commercial banks, financial institutions, remittance companies and Vietnamese people in other countries.

According to Mr. Nguyen Duc Lenh - Deputy Director of the State Bank of Ho Chi Minh City, the results of attracting remittances in 2023 in Ho Chi Minh City are very impressive with about 9.46 billion USD. In the first 9 months of this year alone, preliminary statistics show that the amount of remittances to the city reached 5.485 billion USD, an increase of 10.4% over the same period. Of which, 14 remittance companies accounted for about 77.4% of the total remittances.

"Usually in the fourth quarter of each year, the amount of remittances sent to Vietnam in general and Ho Chi Minh City in particular is often higher than other quarters, accounting for an average of 30% of the whole year, because this is the peak time for the end of the year and Lunar New Year. With this speed and structure, the target of remittance growth of 10%/year as planned is completely achieved," said Mr. Lenh.

However, at the conference, banks and businesses also said that the city must continue to improve policy mechanisms to effectively attract remittances. Currently, the amount of remittances transferred through banks only accounts for about 50% of the total amount of remittances to Vietnam, the rest is transferred through unofficial channels.

Directly from the Tokyo bridge, Mr. Nguyen Duc Minh - Ambassador of the Vietnamese Embassy in Japan - said that remittances are a topic that Vietnamese people in Japan are very interested in, including how to increase the rate of return and use this capital effectively.

Currently, the number of Vietnamese people in Japan is increasing very rapidly, with more than 600,000 people, mainly young people.

Meanwhile, Mr. Tran Ba Phuc, Chairman of the Vietnamese Business Association in Australia, expressed his wish that Vietnamese banks work with partner banks in Australia to make money transfers back home more convenient.

The reality is that Vietnamese banking services have not yet expanded in Australia, while foreign banks charge very high fees. "Recently, we raised 45,000 Australian dollars to send back home to support our compatriots affected by the storm and flood, but because the money transfer channel was not convenient, we were charged a fee of more than 10%," said Mr. Phuc.

Overseas Vietnamese believe that the effective use of remittances needs to be considered and implemented more effectively than before.

According to a representative of the Committee for Overseas Vietnamese in Ho Chi Minh City, the unit will initially coordinate with the State Bank of Vietnam, Ho Chi Minh City branch, to create a remittance corridor and support transaction fees to assist money transferers.

Along with that, communication work should be strengthened to change the money transfer habits of overseas Vietnamese, from unofficial channels to official channels at banks.

Source: https://tuoitre.vn/kieu-hoi-khong-qua-ngan-hang-chay-duong-tieu-ngach-van-pho-bien-20241011163646392.htm