Ho Chi Minh City approves project to leverage remittance resources.

A series of policies aimed at attracting remittances to Ho Chi Minh City - Photo: QUANG DINH

Establishing channels for capital flow from remittances.

According to the plan, the Committee on Overseas Vietnamese will preside over the implementation of the policy to effectively utilize remittance resources in Ho Chi Minh City. Simultaneously, it will monitor, compile, and periodically report to the Ho Chi Minh City People's Committee on the implementation results, difficulties, and obstacles that need to be resolved, as well as propose adjustments and additions.

The plan outlines policies to attract and utilize remittance resources, such as directing remittances into the financial market (stock market, shares, etc.), thereby creating a channel for capital flow from remittance recipients for savings purposes to business owners.

Supporting the transfer of capital from those without profitable investment opportunities to those with profitable investment opportunities. Directing the mobilization of remittances towards the privatization plan of state-owned enterprises, the sale of public assets, etc.

Simultaneously, support the connection of financial institutions and remittance companies to diversify money transfer methods in major potential markets and countries with large Vietnamese working and living populations, while expanding services and creating favorable conditions for overseas Vietnamese to send remittances back to Vietnam.

Ho Chi Minh City will also propose that the competent authorities consider allowing foreigners of Vietnamese origin who do not reside in Vietnam in general and the city in particular to open accounts, choose to hold deposits in foreign currency or in Vietnamese Dong, and transfer the principal and interest in the chosen foreign currency.

Financial institutions and remittance companies in Ho Chi Minh City will also study proposals to develop three "parallel account" products, where one account is used to send money to family members in the city, and their relatives in the city have full access to that account.

The second account is only accessible to Vietnamese people living abroad and can be used to accumulate funds for future investments.

Ho Chi Minh City also proposed solutions to establish production funds from remittances, such as: a real estate remittance fund, a remittance fund to support small and medium-sized enterprises, and a fund for overseas Vietnamese investors... to support Vietnamese investors returning from abroad to start businesses, based on research into international experiences in encouraging remittances.

The proposal suggests issuing bonds with a 5-year or 10-year term to attract remittances for investment in the construction of technical infrastructure, social infrastructure, economic infrastructure, etc.

Ho Chi Minh City is the largest recipient of remittances in the country.

According to statistics, approximately 2.8 million overseas Vietnamese have connections to Ho Chi Minh City out of a total of about 6 million overseas Vietnamese. Ho Chi Minh City is the largest center for attracting remittances in the country. Remittances transferred to Ho Chi Minh City annually account for 38-53% of the total remittances transferred to Vietnam.

From 2012 to 2023, remittances to Ho Chi Minh City through commercial banks, economic organizations, and remittance companies reached over 65 billion USD, increasing by an average of 3-7% per year.

In 2023, remittances to Ho Chi Minh City reached US$9.5 billion (equivalent to VND 228,000 billion). In the first six months of 2024, this figure was US$5.18 billion.

Compared to official development assistance (ODA), indirect or direct foreign investment, remittances have a highly stable value and do not come with stringent investment conditions…

However, Ho Chi Minh City assesses that the city does not yet have specific mechanisms and policies to attract and utilize this resource.

Source: https://tuoitre.vn/tp-hcm-phe-duyet-de-an-phat-huy-nguon-luc-kieu-hoi-20240927211753054.htm