Stronger flow

- Last year, remittances to our country reached a record high of 16 billion USD. Of that, Ho Chi Minh City alone accounted for 9.6 billion USD. Notably, this amount of remittances is three times higher than foreign direct investment (FDI).

- Vietnamese people living abroad send money back to their relatives and family in Vietnam. Is this just about money, or does it carry a much deeper meaning?

- The most obvious benefit is that remittances increase the supply of foreign currency and stabilize the exchange rate. But more importantly, remittances contribute significantly to stimulating demand and investment. As a result, the national economy and Ho Chi Minh City's economy are developing more favorably. Compared to 2018, the amount of remittances in 2024 has doubled. This shows that overseas Vietnamese have increasingly deeper confidence in domestic policies.

- What are the fundamental differences between remittances and FDI?

- Financial experts say that FDI is heavily dependent on preferential policies. When there are many incentives, foreign investors pour money in. When they see a more attractive opportunity elsewhere, they withdraw their capital. Remittances, on the other hand, are personal funds transferred back to the country regularly and steadily.

- Besides helping relatives or buying property, is there potential for further growth from remittances?

For many years, overseas labor has also contributed significantly to remittances. Money transferred back is also channeled into bonds, stocks, and business ventures… By creating sustainable jobs, remittances will become an even stronger flow.

TU QUEO

Source: https://www.sggp.org.vn/dong-chay-manh-hon-post811818.html