Overseas remittances to Vietnam in 2020 reach US$17.2 billion

According to the latest updated global remittance data that the World Bank (WB) has just announced, the amount of overseas remittances to Vietnam in 2020 was US$17.2 billion, instead of $15.7 billion as previously estimated.

Thus, according to the updated figures, the number of overseas remittances in 2020 increased by nearly 3 percent compared to that in 2019. Accordingly, Vietnam is in the top ten countries receiving the most overseas remittances among low and middle-income countries. With overseas remittances transferred to the country equivalent to 5 percent of gross domestic product (GDP) in 2020, Vietnam is one of the 10 countries in East Asia - Pacific with the highest proportion of remittances in GDP.

According to the WB, remittances will recover this year, and it is forecast that remittances transferred to low and middle-income countries will rise by 5.6 percent to $470 billion. However, this outlook depends on the impacts of the Covid-19 pandemic on global growth and measures to control the spread of the disease.

The State Bank of Vietnam branch in Ho Chi Minh City also said that in the first four months of this year, overseas remittances to the city reached $2 billion, up 11 percent year-on-year. Although the development of the Covid-19 pandemic is still unpredictable, it is forecast that the remittance flows to HCMC this year will not be lower than the previous year. Remittances will mainly focus on manufacturing and business sectors and about 20 percent of remittances will be invested in real estate.

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