HCM City receives 4 billion USD in remittances in nine months

HCM City (VNA) – Remittances flows into Ho Chi Minh City reached 4 billion USD in the first nine months of 2020 despite impacts of COVID-19 pandemic, representing a rise of 2 percent over the same period last year, according to a municipal official.

The figure is expected to reach 5.5 billion USD for the whole year, up 0.82 percent year on year, said Le Thanh Liem, Vice Chairman of the city People’s Committee at a recent meeting with overseas Vietnamese enterprises.

Noting that in 2020, the overseas Vietnamese business community has joined hands with people at home in practical activities in combating COVID-19, maintaining trade connections and speeding up economic recovery.

HCM City, with a population of more than 10 million and more than 350,000 enterprises, has great potential for investment, he said at the October 27 event, adding that the city will continue to strengthen links with Vietnamese firms abroad, especially those in the EU, and domestic enterprises in an effort to promote trade and investment.

Vietnam is the EU’s 17th largest trading partner and the second-largest in Southeast Asia, while the EU is one of Vietnam’s major markets, he noted.

Two-way turnover reached nearly 56.5 billion last year, with Vietnamese exports to the trading bloc reaching 41.5 billion USD, he added.

The official held that the European Union-Vietnam Free Trade Agreement, which took effect on August 1, will open new doors and create growth momentum for Vietnam’s economy and exporters.

In 2019, the city’s exports to the EU reached more than 5 billion USD, a year on year rise of 5.4 percent.

Ambassador Luong Thanh Nghi, Vice Chairman of the State Committee for Overseas Vietnamese under the Ministry of Foreign Affairs, said that more than 5.3 million Vietnamese were living in 130 countries and territories. The overseas Vietnamese business community includes at least 6,000 members connected to Vietnam via technology and business fields.

He spoke highly of the significant contributions made by overseas Vietnamese businesses to the country’s socio-economic development, especially during the hard times of the pandemic.

Overseas Vietnamese businesses are key to national socio-economic development, he said, adding that remittances to Vietnam have reached about 170 billion USD from 1990 to now.

Overseas Vietnamese have invested in 3,000 projects with total registered capital of more than 4 billion USD, creating many jobs, according to Nghi.

Some 500,000 - 600,000 overseas Vietnamese professionals are now working and studying in developed countries, which is huge resource for the country. Every year, there are about 500 overseas Vietnamese experts who return to Vietnam for investment in many fields, he said.

The ambassador noted that about one-fifth of the 5.3 million overseas Vietnamese living in Europe. But the market share of Vietnamese goods in the EU is still modest compared to the potential.

In recent years, many overseas Vietnamese have returned to Vietnam to start businesses as they see great potential and good economic growth in the country. 
Many of them have been very successful in their careers in other countries and have now invested in businesses in Vietnam, Nghi said.

In addition to financial contributions through remittance resources, many overseas Vietnamese experts have made important contributions to training a high-quality workforce, and transferring scientific technologies to Vietnam.

He encouraged young overseas Vietnamese who have re-settled in Vietnam to build a network in the country to better exploit the potential of the overseas Vietnamese community for further socio-economic development.

Speaking at the event, Jean-Jacques Bouflet, Vice President of the European Business Association in Vietnam (EuroCham), said to bring into full play the potential of EVFTA, Vietnam enterprises should understand the EU market and business standards, and improve product quality, traceability and reliability. 

The EU is a market with high standards, so businesses must improve to meet technology, governance and social responsibility requirements, he said.

At the meeting, three memoranda of understanding were signed between businesses of Vietnam and the Republic of Korea./.