VietNamNet Bridge – Kieu hoi (overseas remittances) to Vietnam unexpectedly decreased in 2016, raising concerns among real estate developers as kieu hoi are an important source of capital for the property market.
According to Izumi Devalier from HSBC (Hong Kong and Shanghai Banking Corporation), 70 percent of kieu hoi are poured into business.
According to the State Bank, one-fifth of kieu hoi in 2015, or $2.5 billion, flowed into the real estate market.
According to Nguyen Hoang Minh, deputy director of the State Bank’s HCMC Branch, only $5 billion of kieu hoi had been remitted to the city by the end of 2016.
In general, the volume of kieu hoi to HCMC accounts for more than 50 percent of total kieu hoi to Vietnam. This means that the total kieu hoi volume to Vietnam in 2016 was no more than $10 billion. The figure was much lower than the $12.2 billion in 2015.
| Kieu hoi (overseas remittances) to Vietnam unexpectedly decreased in 2016, raising concerns among real estate developers as kieu hoi are an important source of capital for the property market. |
For many years, kieu hoi has been considered an important capital source like FDI (foreign direct investment) and ODA (official development assistance).
According to the Central Institute of Economic Management (CIEM), in 1999-2015, Vietnam received $120 billion worth of kieu hoi and was among the biggest kieu hoi receivers in the world. Tiếp tục đọc “Overseas remittances fall, worrying real estate developers” →
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