FOREX 2020
In the past 3 years, 2017 was 13.8 billion USD, 2018 was 15.9 billion USD, and in 2019 reached 16.7 billion USD. According to estimates of the Real Estate Brokerage Association (Real Estate), over 20% (equivalent to 3.34 billion USD) of remittances poured into real estate, only after the field of production and business.
“2019 is the second consecutive year that our country has achieved and exceeded all 12 socio-economic targets. Specifically, GDP reached 7.02%, higher than the target set by the National Assembly (6.6 – 6.8%); FDI increased by 7.2% compared to 2018, reaching 38.02 billion USD, but 10.2% was invested in Real estate … Hanoi continues to lead the country in attracting FDI with 8.45 billion USD. Moreover, our country is the world’s 15th most populous country, so the demand for housing is huge. Infrastructure development has always been focused on promoting investment capital sources in Vietnam real estate, including the influx of remittances.
The World Bank recently released a report on Migration and Remittances, in which it is forecasted that the amount of remittances entering Vietnam in 2020 will decrease by about 7% to 15.7 billion USD, equivalent to about 5.8% of GDP. The main reason for the decrease in remittances in the first months of 2020 due to the Covid-19 epidemic in the world has affected employment and income of workers. Overseas Vietnamese overseas are also in that difficult trend. The epidemic has caused many expatriates to lose their jobs, to temporarily stay at home, and their business activities have stalled so they have no income, thus restricting remittances to relatives in their homeland.
According to the statistics of the State Bank of Vietnam, Ho Chi Minh City branch, in the first 7 months of 2020, remittances to Ho Chi Minh City only reached about 3 billion USD, down 1.2% over the same period in 2019. However, remittances have increased return after the epidemic in some countries has temporarily subsided. For example, in October 2020, HCMC alone had USD 500 million in remittances transferred through credit institutions.
In the first 10 months of 2020, remittances to Ho Chi Minh City have reached over 4 billion USD, up 2% compared to the same period in 2019 and we estimate that by 2020, remittances transferred to Ho Chi Minh City through credit institutions will still reach 5, USD 5 billion increased by 0.82% compared to 2019.
Src: REAL ESTATE Community – Jen Dao
