Vietnam received over $80.4 bln inbound remittances in 1991-2013 A woman is seen buying U.S. dollars from a bank in Ho Chi Minh City. Tuoi Tre Vietnam attracted nearly US$80.4 billion worth of inbound remittances, an average increase of about 39 percent per year, during the 1991-2103 period, said an expert. "Remittances play an important role in economic development and stabilize the macro economy of Vietnam. This is the 2nd largest capital source for Vietnam, larger than the disbursement of the official development assistance (ODA) during the period,” said Dr. Vo Tri Thanh, deputy head of Hanoi-based Central Institute for Economic Management (CIEM) at a recent conference in Hanoi. Vietnam is one of the top remittance-receiving countries in the world, said Patricia Riingen, Western Union’s senior vice president for South and East Asia and Oceania, at the event organized by Western Union in the capital city. With the flow of inward remittances, the economic growth of the Southeast Asian country has been greatly contributed by Vietnamese people who are living and working in foreign countries as well as their families in the homeland, she said. A research on the overall remittances in Vietnam, conducted by  CIEM, shows that the inward remittances from the US during the period make up the biggest part with over 50 percent, followed by Australia, Canada, Germany, Cambodia and France. Most people receiving the remittances have used them to spend on their living, production and business investment, savings, and healthcare treatments. However, in the central region, like Quang Binh and Nghe An, remittances have been primarily used for debt repayments. The reason is that these areas have a large number of local people going abroad to work, and they often have to borrow a large sum of money before they can travel abroad for working, said the research. Besides, remittances in Vietnam also play an important role in offsetting the deficit in the current account and trade, especially before 2012. In the field of investment, the recipients of remittances mainly deposit the money into bank to earn interests or invest in gold and real estate. "Although we know that remittances have an important and positive influence on the development of the social and economic situation, we are really surprised to realize how important and far-reaching they are on all aspects of people's lives, "said Thanh. Anticipating the upcoming situation, Vo Tri Thanh said remittances to Vietnam in 2015 and 2016 will increase compared with $11 billion in 2014. However, by 2017, remittance flows will start to fall slightly. New record to be set The amount of inward remittances to Vietnam by the end of this year is expected to rise to $12 billion, a record rate following the trend set in 2011-2013, according to local financial institutions. During the last 3 years, the amount of inward remittances continued to increase from $9 billion in 2011 to $10 billion in 2012 and $11 billion in 2013. According to Nguyen Hoang Minh, deputy director of the branch of the SBV in HCMC, in 2014, Vietnam will continue to be one of the 10 countries receiving the biggest volumes of remittances in the world with the annual growth rate expected to rise 10 percent over last year, reaching around $12.1 billion. TUOI TRE NEWS