Increase the value of remittances.

(Baonghean) - Currently, there are over 55,000 people from Nghe An living abroad; mainly concentrated in Russia, Germany, the Czech Republic, Poland, etc., and each year they send over 445 million USD back to Nghe An, making a significant contribution to the province's economic development.

Channel for getting rich

Yen Thanh is one of the districts in the province with the largest number of overseas Vietnamese living, working, and studying there, with nearly 20,000 people. Mr. Hoang Danh Truyen, Vice Chairman of the Yen Thanh District People's Committee, said: In addition to overseas Vietnamese residing abroad, Yen Thanh currently has 11,226 people working abroad in Taiwan, South Korea, Japan, Malaysia... and some European countries.

The spacious house of Mr. Hoa and Ms. Thuy's family in Quynh Hau, Quynh Luu. Photo: Thu Huyen

In 2016, remittances from people in Yen Thanh living abroad to the locality were estimated at over 70 million USD, many times the local budget revenue, contributing to the remarkable socio-economic development.

Some communes have a large number of people working abroad, such as Son Thanh, Nhan Thanh, Tien Thanh, Ma Thanh, Tho Thanh, and Do Thanh... Thanks to overseas employment, thousands of households have risen from poverty to a comfortable standard of living. As a result, the local New Rural Development movement remains strong and receives great support from the people.

Another locality that has recently seen strong growth in overseas labor export is Quynh Luu district. Despite having advantages in fishing and aquaculture, the district has still focused on developing overseas labor export in recent years.

In Quynh Hau commune, the family of Mr. Hoa and Ms. Thuy is known as a successful economic development model through overseas labor export. Besides the couple, their two children also went to Angola to work.

Ms. Thuy said that after researching the area, she opened more than 10 photocopy shops in various locations in Angola, creating jobs for about 40 workers from her hometown, mainly from Quynh Luu district. In addition, she and her husband also guided many young people from Quynh Hau commune to Angola to work as carpenters, construction workers, and traders. Currently, they have returned to Vietnam, built a spacious house, and invested 5 billion VND to buy a hotel in Hoang Mai town and another hotel in Nam Dinh province, providing employment for many local workers…

Boosting remittance attraction

Overseas employment is a significant channel for job creation and economic development in localities. According to the Department of Labor, War Invalids and Social Affairs, there are currently about 13,000 workers in the province who have gone abroad for work. Within the province's credit system, Agribank Nghe An is one of the banks with a high volume of remittances.

In 2015, Agribank Nghe An disbursed 82,204 remittances totaling US$98.9 million. In 2016, Agribank Nghe An disbursed over 82,500 remittances, totaling US$105.5 million, ranking first among all Agribank branches and commercial banks in the area in remittance disbursement activities.

In addition to traditional remittance products, Agribank Nghe An also offers specialized remittance products for markets such as Taiwan, South Korea, and Malaysia. Through promoting remittance payment activities, Agribank Nghe An greatly assists many overseas Vietnamese and workers from Nghe An working abroad by providing them with convenient and safe ways to send money back home, contributing to economic development and the building of their homeland.

Transactions at Vietinbank branch in Nghe An. Photo: Thu Huyen

Remittances are constantly increasing, especially during the Lunar New Year period, and almost every bank has programs to receive money sent from abroad. Vietinbank's Nghe An branch also focuses on this service and has achieved positive results; remittance payments in 2016 reached 11 million USD, and in January 2017 reached 1 million USD.

For commercial banks, remittance services not only generate service fee revenue but also help banks purchase foreign currency, increase deposits, and cross-sell other products to remittance recipients, while simultaneously enhancing the bank's reputation and brand. Many remittance products offer maximum convenience to customers, such as Western Union's fast money transfer service, VietinBank's eRemit online remittance service, and mobile phone money transfer services.

Strengthen management

However, according to customer feedback, the cost of remittances at some banks is currently quite high. If customers want to receive money sent from abroad, the notification fee is 0.05% of the total withdrawal amount, and the withdrawal fee is 0.15%. To withdraw money, customers must open a payment account, and the withdrawal fee is only waived at least two weeks after the account is credited.

Ms. Phan Thi Lien from Do Thanh commune (Yen Thanh district), whose husband is working in Angola, said: “After 15 days, it might be more effective to put the money in a savings account instead of allowing free withdrawals. My family sent the money in USD, but the bank usually requires withdrawals in Vietnamese Dong to be free. Most of the time when I go to transact, the staff advise me to sell the USD back, but the selling price is low. So, for the first year, we transacted through the bank, but later my husband sent money through an organization he knows in the village, which is much cheaper and more convenient.”

Currently, a large amount of money is being sent back to Vietnam by people from Nghe An living abroad, but it is difficult to accurately统计 (statistically track) this because, in addition to sending through banks, many people choose unofficial, informal channels through organizations and individuals who offer these services.

Sending money through credit institutions incurs higher fees, but sending it through external institutions is less secure; no one can guarantee the absolute safety of the deposited funds. This is an issue that people need to consider to ensure safety. Relevant agencies such as the Ministry of Labor, Invalids and Social Affairs and banks need to get involved to recalculate payment fees and find solutions to effectively utilize the abundant remittance funds.

Thu Huyen