VietNamNet Bridge - Many Viet Kieu (overseas Vietnamese) complain that it is difficult to make investments in Vietnam.

Dang Kim Nhung, a lecturer at Hanoi Economics University, cited a report as saying that kieu hoi, or overseas remittances, to Vietnam have been increasing by 12 percent per annum in the last three years. 

CIEM estimates that in 1991-2013, about $80.4 billion worth of kieu hoi went to Vietnam. Thus, if counting remittances in the last three years, the total amount would be $120 billion within 26 years. 

About 45-55 percent of kieu hoi was remitted to people in HCMC.

About 45-55 percent of kieu hoi was remitted to people in HCMC.

Experts disagree on the efficiency of the use of capital. Nhung said while the State Bank HCM City Branch believes that remittances have been used effectively, the World Bank and CIEM think differently.

A report showed that 35.6 percent of remittances have been used for consumer spending, while 16-17 percent have been used for real estate investment. Thenmajority of the money has not been injected into production and business.

CIEM noted that the capital flow from kieu hoi into production and business went up and down in different periods. About 27-30 percent of kieu hoi was invested in production in 2010-2013, while the figure fell to 16 percent in 2014 and then surged to 70.6 percent in 2015.

CIEM’s deputy head Nguyen Kim Chung attributed the fluctuations to the national economy. When the economy was in difficulties, kieu hoi holders tend to deposit their money or inject money into properties instead of production & business projects.

Meanwhile, Nguyen Nhu Phong, a renowned economist, said that he did not see any problem if kieu hoi goes to the real estate sector, because the cash flow to houses will create demand and help the supply increase, thus pumping more capital into production.

Le Thanh Binh, representative of the overseas Vietnamese community in Poland, said Viet Kieu want to make investment in the homeland, but they meet barriers from all sides. 

Deputy chair of the Vietnam Association of Foreign Invested Enterprises (VAFIE) Nguyen Van Toan also commented that the policies are ‘unfair’ to kieu hoi. Meanwhile, if Vietnam can take full advantage of kieu hoi, this could be a very useful source of investment capital.

“Legal documents are unclear. I think it would be better to drive kieu hoi into investments in high technology and support industries, because Viet Kieu have good knowledge and experience in these fields,” he said.


Chi Mai