Real estate and high interest rates attract remittances

Vibrant real estate market and high US dollar saving rates made the remittances transferred into Vietnam in 2010 exceed nearly $2 billion against the year’s target.

In 2010, the total inward remittance sent to Vietnam reached over $8 billion, up 25.6 percent from the previous year and exceeding the initial target of $6 billion.

Almost commercial banks said that the total inward remittance sent to the country grew over 20 percent year-on-year. In particular, the total volume of inward remittance transferred into Vietnam via Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) reached $1.3 billion, rising 45 percent y-o-y and the figure at Eastern Asia Commercial Joint Stock Bank (DongA Bank) Remittance Co was $1.2 billion, rising 20 percent from 2009’s.

The sudden increase in the inward remittance to Vietnam in 2010 was quite surprising because in 2009 the inflow remittance to Vietnam fell nearly 13 percent from 2008’s to $6.3 billion.

According to Vo Tri Thanh, deputy head of Central Institute for Economic Management (CIEM), there were two main reasons for the strong shift of remittance into Vietnam in 2010.

The first was the briskness in the realty market and the second was attractiveness of US dollar saving rate at commercial banks in Vietnam.

When the US dollar interest rate in the world currently is relatively low (the interbank lending rate in the world is now ranging around 0.23-0.78 percent/year for all terms), in Vietnam, the commercial banks are applying the interest rate around 5 percent per annum for US dollar deposits.

Moreover, during past years, the inward remittance increased strongly party due to the government’s open remittance policy allowing receiving and sending in US dollar. Commercial banks have been continuously upgrading the remittance services to each family.

It is forecasted that the total inward remittance sent to Vietnam in 2011 would increase by 6.2 percent.

According to World Bank (WB), Vietnam has been ranked at the 16th position amongst 30 countries receiving most remittances in the world.

On the macro factor, the remittances have contributed in reducing the imbalance in the balance of payments, improving forex reserves, and reducing the pressure on exchange rate increases.

From VietNamBusiness

Newer Articles
  • Residential market sluggish in Da Nang
  • Realty unsalable, trading floors shutting down in masses
  • Realty firms post unsatisfactory business results in Q1
  • Hanoi approves land right auction for 62 new projects
  • Capital-thirsty property developers forced to sell
  • FPT to kick off construction on Da Nang technology and urban zone soon
  • Sale of apartments soars by 70%
  • $1.6bn Golden Hills closer to reality
  • Hanoi to crack down on illicit trading of apartments
  • Door opened to Everville project
Older Articles
  • Real estate group gets down to business
  • Developers shun public houses
  • Office rent is escalating, businesses relocate offices to suburb areas
  • Housing fund should ease demand for cheaper homes
  • Housing remains out of reach of poor
  • Low-income housing to expand in 2011
  • Outlook bleak for city real estate market
  • Ocean Group gets approval for constructing green urban area project
  • The real estate super-projects with licenses revoked in 2010
  • Enhancing transparency on real estate market
Latest News
  • Vietnamese software firms consider Japan as the major market
  • Despite problems, 2011 FDI spending equals 2010
  • EVNTelecom asks for government’s approval to sell 12pct stake for VTC
  • Vietnamese enterprises expanding into international markets
  • Ernst & Young Vietnam role to be examined
  • Vietnamese firms invest over $24.5b in foreign countries as of July-end
  • Vietnam Insurance Market: Keeping Double-digit Growth
  • Vietnam’s economy looks grim with ADB’s forecast
  • Ministry rejects import-export tax changes
  • Government okays anti-dumping suit against US
For Foreigners
  • Adb: policy tightening will lower inflation
  • HSBC, Barclays to advise Vietinbank’s planned overseas dollar bond sale
  • Vietnam govt to service debt for troubled cement projects
  • Calm heads prevail as the forex market to remain cool
  • Further fiscal & monetary tightening in coming months
  • IMF cuts Vietnam’s inflation forecast to 9.5pct in 2011
  • Vietnam’s dong has best week since 1997 after dollar rates curb
  • Vietnam tightens control over state-bank partnership
  • Foreign investors list problems in Vietnam
  • Foreign invested enterprises complain about customs procedures

BusinessTradeVietnamGovernmentFDIWorld economyVietnamese PartyEconomyEconomicMarketState managementPrime MinisterHCM cityHanoiHo Chi MinhCPIAsianWorldAmericaEuropeNguyen Tan DungHau GiangMekong DeltariceStandingMekongCambodiausajapanchinakoreaLai ChauHoa BinhHoi AnChu LaiQuang NamDa nangCan thoSon LaPower PlantMinistry of IndustryDung QuatOilSingaporeThailandMalaysiaIndonesiaLaosVietnameseFDI capitalinvestorsforeign investorNetherlandsUSservicetransportationinfrastructuretourismVNPostExpressSpainGoldTra fishexportcontractstouristMiddle AreaConstructionShipbuildingIndustryCompanyIndustrial ZonebudgetDong NaiBinh DuongVung TauTay NinhBinh PhuocTay NinhLong AnTien GiangUS investorshydropower plantQuang NinhNha TrangStock ExchangeHNXIndexcapitalAgricultureDong ThapAn GiangExport-Processing ZoneYen BaiLao CaiLai ChauDien BienSon LaHoa BinhPhu ThoHa GiangTuyen QuangBac KanLang SonCao BangmanufacturersAseanRussiadevelopmentAviationinflationHong KongAmericanChamber of CommerceSeafoodODAWBIMFFEDAsia-PacificAssociationcountriesEuropeanmarine economyThanh HoaNghe AnNam DinhHa TinhPhu LýVinh PhucBac NinhBac GiangHung YenHai DuongBinh ThuanBinh PhuocLam DongGia LaiKon tumQuang NgaiQuang BinhQuang TriNinh ThuanCa MauBac LieuSoc TrangTra VinhKien GiangVinh LongBen TreincomespoliciesLawassetsNatural GasBuildingstatisticsstrategyDa Latmineral exploitationprocessingindustrieselectricitywatersupplyEnterprisesforestryfisherycommunicationsreal estatetransportationCorruptionbauxiteSecuritiesInsuranceBankFinanceAccountgoodsTrade BalancecoffeeCoalfestivalHa NamNinh BinhHoa BinhUniversityArtsBooktravelVietnam VisaVisaPagodaCommitteePeople's CommitteeVinashincompaniesHoa PhatHSBCACBvietcombankvietinbank

Copyright 2010 © 
Powered by: CIINS Design by: