Vietnam ranks 7th in the world for remittances.

According to an announcement yesterday by Foreign Minister Pham Binh Minh, the amount of foreign currency sent back to Vietnam by overseas Vietnamese reached over 10 billion USD last year.

This information was provided by Minister of Foreign Affairs Pham Binh Minh during the "People Ask, Minister Answers" program on February 17th. According to Mr. Pham Binh Minh, the amount of money sent back to Vietnam by overseas Vietnamese in recent years has made a significant contribution to the economy.

In 2012, Vietnam attracted over $10 billion in remittances, placing it 7th among the world's largest remittance recipients. "These remittances account for 60-70% of foreign investment in Vietnam since 1991, and this is a very effective source of funding contributing to economic development, stabilizing the exchange rate, and increasing foreign exchange reserves," the head of the Ministry of Foreign Affairs stated.

According to the State Committee for Overseas Vietnamese, remittances in 2012 increased by more than 10% compared to 2011. This year's increase in remittances is partly due to improvements in transaction methods, making them faster and more convenient than before, providing the best possible service for customers.

A significant contribution to remittances this year comes from over 4 million Vietnamese living abroad, and especially from 400,000 Vietnamese workers employed in Japan, South Korea, Malaysia, Taiwan (China), and the Middle East.

This year, the amount of remittances sold to the banking system has increased sharply. According to Mr. Nguyen Hoang Minh, Director of the State Bank of Vietnam's Ho Chi Minh City branch, 30% of remittances transferred back to Vietnam have been sold to banks by people, compared to only 14% last year. "The stable exchange rate and the insignificant difference between the bank's listed rate and the free market rate are the reasons for this difference," the leader said.

According to VnExpress - LY