Remittance soaring to benefit real estate projects?

With the market warming up at the end of last year, the number of real estate deals has also been on the rise thanks to soaring remittances.

Remittance soaring to benefit real estate projects?


Remittance into Vietnam over the last 20 years (unit: billion dollars). Source: WB


With remittances hitting $17 billion, some investors and homebuyers in Hanoi and Ho Chi Minh City are expecting the market to warm up towards the end of 2019 and early 2020.

The expectations are quite reasonable because Vietnam has been one of the top ten recipients of remittance over the world for the last three years.

Moreover, as the financial and gold markets are undergoing turbulence, remittance money is finding its way into real estate projects.

Is soaring remittance good news for real estate?

The World Bank estimated remittances flowing into Vietnam in 2019 at $16.7 billion. This is the fifth time Vietnam has entered the top ten remittance-receivers over the world.

Remittance flows into Vietnam have risen 120-fold, from $0.14 billion in 1993 to $13.8 billion in 2017, and soared to $16 billion in 2018.

Experts said that the $16.7 billion of remittances in 2019, equivalent to 6.4 per cent of the GDP, was quite a boot for the socio-economic development of the country.

Luong Thanh Nghi, deputy head of the State Committee for Overseas Vietnamese Affairs, said that there are 4.5 million Vietnamese living, working, and studying in 110 countries and territories over the world, and as many as 3,000 firms owned by overseas Vietnamese operate across 52 cities and provinces of the country with the total registered capital of $4 billion.

 

These overseas Vietnamese investors come from the US, Canada, Australia, Russia, France, the Netherlands, Japan, Poland, and Switzerland. Their projects and businesses usually specialise in trade, export, tourism, construction, real estate, farming and processing seafood, as well as software.

Experts said that remittances to Vietnam consistently rank in the top ten because most Vietnamese businesses and employees who do business and work overseas maintain close ties with their families, parents, brothers, and sisters in Vietnam.

Especially, Vietnamese people are keen to save money and send it home to their families so that they can buy a new house. Additionally, some of those working abroad had borrowed a lot before going abroad, so they had to send money back to repay.

Notably, although Ho Chi Minh City receives the most remittances in the country, a big part of this has been spread across the country, with great amounts spent on buying houses in Hanoi, markets that are more profitable than Ho Chi Minh City.

Chairman of Phu Quy Land Nguyen Manh Ha confirmed that based on more than 20 years of experience in real estate brokerage, remittance receivers have a distinct taste for real estate because they are inexperienced in other investment sectors. VIR

Nguyen Huong

Remittances to Vietnam estimated at $16.7 billion

Remittances to Vietnam estimated at $16.7 billion

Remittance flows into Vietnam are expected to reach $16.7 billion in 2019, Vice Chairman of the State Committee for Overseas Vietnamese Affairs (SCOVA) Luong Thanh Nghi cited statistics of the World Bank at a meeting yesterday.

Monthly remittances exceed earnings of low-income VN households by 10 times

Monthly remittances exceed earnings of low-income VN households by 10 times

As global remittances hit record highs, a new report by UniTeller of low-income adults in Vietnam reveals the value of monthly remittances from family and friends working abroad now averages ten times of the monthly incomes of recipients.  

 
 

Other News

.
76 percent of German companies concerned about conoravirus impacts
76 percent of German companies concerned about conoravirus impacts
BUSINESSicon  18/02/2020 

Around 76 percent of German companies confirmed that the coronavirus epidemic affected their activities in Vietnam, according to a flash survey conducted by GIZ/AHK Vietnam.

Education draws foreign investment
Education draws foreign investment
BUSINESSicon  18/02/2020 

As of 2019, Vietnam counted five foreign invested universities, 68 private schools and 170 public ones.

Covid-19 crisis challenges banks
Covid-19 crisis challenges banks
BUSINESSicon  18/02/2020 

Some commercial banks have announced lower lending interest rates to help their clients overcome the difficulties caused by coronavirus (Covid-19) crisis.

Vietnam’s economy in ‘coronavirus whirlwind’
Vietnam’s economy in ‘coronavirus whirlwind’
BUSINESSicon  18/02/2020 

The Ministry of Planning and Investment (MPI) has predicted that the GDP would grow by 5.96 percent, a 7-year low.

2019-nCoV impacts on economies of Vietnam and China
2019-nCoV impacts on economies of Vietnam and China
BUSINESSicon  17/02/2020 

The service sectors of China as well as of Vietnam—including transport, accommodation, tourism, retail, hospitality and entertainment—will be hardest hit by the 2019-nCoV outbreak.

Vietnam's aviation industry expands market to maintain growth
Vietnam's aviation industry expands market to maintain growth
BUSINESSicon  18/02/2020 

The novel coronavirus epidemic has affected the socio-economic development of Vietnam, including the transport sector.

Property developers race towards digital technology
Property developers race towards digital technology
BUSINESSicon  17/02/2020 

Amid the fourth industrial revolution (Industry 4.0) many property developers in Vietnam are seeking to adopt digital technology both for enterprise management and in their projects.

Japan's economy shrinks at fastest rate since 2014
Japan's economy shrinks at fastest rate since 2014
BUSINESSicon  17/02/2020 

The world's third largest economy was hit by a sales tax rise, a destructive typhoon and weak global demand.

VN firms seek new raw material sources
VN firms seek new raw material sources
BUSINESSicon  17/02/2020 

Vietnamese companies, many of whom are facing a shortage of feedstock and raw materials as a result of the new coronavirus (COVID-19) outbreak in China, have started looking at alternative sources.

Coronavirus causes transport companies losses
Coronavirus causes transport companies losses
BUSINESSicon  17/02/2020 

Transport companies have been hit hard by the novel coronavirus (COVID-19).

Vietnam needs to find new rice markets to replace China: experts
Vietnam needs to find new rice markets to replace China: experts
BUSINESSicon  17/02/2020 

Since the novel coronavirus (Covid-2019) epidemic will surely affect exports to China, diversifying markets is an urgent requirement for Vietnamese rice exporters, experts have said.

Citibank and INGbank to provide credit to Nhon Trach power projects
Citibank and INGbank to provide credit to Nhon Trach power projects
BUSINESSicon  17/02/2020 

Citibank and INGbank will be in charge of arranging capital for the Nhon Trach 3 and 4 thermal power plants, according to a recent agreement signed between PetroVietnam Power Corporation (PV Power) and the two foreign banks.

Trading remains quiet amid risk concerns
Trading remains quiet amid risk concerns
BUSINESSicon  17/02/2020 

Brokerage firms and market experts remain pessimistic about market trading this week as investors run out of supportive information while international stocks continue to be weighed down by the novel coronavirus (COVID-19).

New document released to regulate use of non-residential real estate
New document released to regulate use of non-residential real estate
BUSINESSicon  17/02/2020 

The Ministry of Natural Resources and Environment (MoNRE) has sent a document to local departments to regulate the use and certification of non-residential real estate projects.

EVFTA brings chances and challenges to local agricultural production
EVFTA brings chances and challenges to local agricultural production
BUSINESSicon  17/02/2020 

The new trade agreement between Viet Nam and the European Union opens many doors for agriculture, according to experts.

Vinatex to provide 6 million face masks in February amid COVID-19
Vinatex to provide 6 million face masks in February amid COVID-19
BUSINESSicon  17/02/2020 

The Vietnam National Textile and Garment Group (Vinatex) is exerting efforts to produce around 6 million antibacterial face masks in February to meet increasing demand amid the novel coronavirus disease (COVID-19) outbreak.

VN banks more open for EU investors under newly-approved trade pact
VN banks more open for EU investors under newly-approved trade pact
BUSINESSicon  17/02/2020 

Investors from the EU will have opportunities to own higher stakes in Vietnamese banks than those from other countries under Việt Nam’s commitments in the EU-Vietnam Free Trade Agreement (EVFTA).

COVID-19: Border localities asked to resume trade with China
COVID-19: Border localities asked to resume trade with China
BUSINESSicon  17/02/2020 

Minister of Industry and Trade Tran Tuan Anh has asked Lang Son and Quang Ninh to resume imports, exports and transport of goods through three sub-border gates in the two localities after a suspension due to the outbreak of COVID-19.

Economic bailout package proposed
Economic bailout package proposed
BUSINESSicon  17/02/2020 

A bailout expected to be implemented by the government will contribute to helping the economy out of difficulties.

Airport funding plans on the way
Airport funding plans on the way
BUSINESSicon  17/02/2020 

Domestic and international private investors are expected to have fresh opportunities to join the long-awaited Long Thanh International Airport project in the near future, with the form of investment to be decided next month.

 
 
 
Leave your comment on an article

OR QUICK LOGIN