Vietnam ranks third for remittances in Asia Vietnam is the 11th biggest remittance recipient worldwide and third in the Asia in 2015, according to the World Bank. From 2002 to 2015, remittances accounted for 6% of GDP A conference on Vietnam's remittances was held by Banking Academy of Vietnam and Banking University of Ho Chi Minh City on October 10. Remittances are an important source of capital for developing countries with low domestic saving rates, helping boost economic growth and reduce poverty. With 500,000 overseas workers and four million Vietnamese living abroad, remittances have increased greatly. Remittances increased from USD14 million in 1993 to USD13.20bn in 2015. From 2002 to 2015, remittances accounted for 6% of GDP while Vietnam’s FDI and ODA accounted for 7.7% and 3% respectively. Thanks to remittances, Vietnam was able to cover the trade deficit and stockpile foreign currency. There are three main reasons for Vietnam's increasing remittances including more people working abroad. Policies and the legal framework for remittances and overseas Vietnamese are being completed, encouraging more people to return and invest in Vietnam. Foreign exchange control legislation has been made clearer after the State Bank of Vietnam simplified many administrative procedures to help people send money home more easily. Money transfer services in Vietnam have also developed. Vietnam was urged to have more supportive policies toward the overseas Vietnamese community as it will inevitably grow during the globalisation process. dtinews.vn