Inward remittance to Vietnam surges 10pct in Jan-May

In the first five months of this year, the total volume of inward remittance transferred to Vietnam increased 10% on year, said Nguyen Van Giau, the State Bank of Vietnam (SBV)’s Governor quoted by the local newswire DVT.vn as saying.
In particularly, the overseas remittance to relatives for consumption and production is recurrent and always necessary, Giau said, adding that the central bank has not yet assessed effectiveness of its policies in April and May.

If overseas remittance reduces, it’s likely that customer policies and services of banks are not good, the Governor added.

Giau refuted earlier concerns that the SBV’s moves to squeeze dollar trading and reduce dollar interest rates will likely hamper overseas remittance to Vietnam.

The central bank will disclose precise figures about Vietnam’s forex market in late June, Giau revealed.

As of June 10, dollar outstanding loans went up by 22.21% from end of 2010, said the SBV in a statement in June 17.

Earlier, answering DVT.vn, Nguyen Van Binh, the SBV’s Deputy Governor said that Vietnam’s current forex reserves are about two months of import (compared to IMF’s figure of $13.5 billion or 6 weeks of import). The country’s forex reserves rose by $2 billion in the last 2-3 months and will likely go up further to about 16 weeks of import in 2012, said Nguyen Sinh Hung, Deputy Prime Minister in Mid-term Consultative Group (CG) meeting on June 19.

According to the central bank’s governor Nguyen Van Giau, Vietnam’s overall balance in 2011 is expected to increase $1 billion against the 2010 deficit of over $3 billion. – Vietbiz24

Tags: Inward remittance, Vietnam banking industry, Vietnam finance, Vietnam financial