The State Bank of Vietnam has reduced interest rates on USD deposits to 0% and applied new operating mechanisms which have sparked fears that remittances to Vietnam may decline this year. However according to experts, these concerns are unfounded.
Remittances sent to Vietnam are not only in form of savings, but are also used to invest in production and business. This year, the real estate market has shown signs of recovery and Housing Law allows Vietnamese overseas to own houses in Vietnam will attract more remittances. In addition, the State Bank applies policies to support the sending remittances to Vietnam, such as allowing unlimited amounts of foreign currency to be sent with requiring permits.
