Hanoi strives to foster a conducive environment that encourages and facilitates overseas Vietnamese to participate in national development activities in line with their resources and capabilities.

Making To he (Vietnamese traditional toy figurines) for Vietnamese overseas. Photo: VNA

The move is part of the city’s latest plan to promote the contribution of overseas Vietnamese to national development in the 2024-2031 period, focusing on sustaining the growth of remittances and encouraging greater overseas investment by Vietnamese living abroad.

The city also aims to harness the intellectual resources of overseas Vietnamese, promote the transfer of knowledge and skills, make efficient use of returning students and the labor force, and effectively implement initiatives and contributions in philanthropy and social activities by individuals and organizations of overseas Vietnamese in Vietnam, while strengthening their role as a bridge in various sectors such as science, technology, economy, trade, culture, and society.

Recognizing this as a crucial objective for socioeconomic development in the new context, the Hanoi People's Committee has outlined five key tasks. These include intensifying the dissemination, understanding, and effective implementation of policies, guidelines, and tasks related to working with overseas Vietnamese at all levels of Party committees, mass organizations, the entire population in the city, and the overseas Vietnamese community.

The city also encourages and facilitates overseas Vietnamese to actively contribute to the nation-building and defense cause, attract overseas Vietnamese experts, intellectuals, and talented individuals, as well as returning Vietnamese laborers, improve the investment environment, maintain the annual growth of remittances, and support overseas Vietnamese in promoting and advancing Vietnamese products in foreign markets.

Furthermore, the city will continue to develop coordination mechanisms and streamline organizational structures, increase resources for the implementation of work related to overseas Vietnamese, allocate additional funds, improve the quality and capacity, and strengthen training and development for officials involved in this work.

Remittances to Vietnam at record high

In 2023, remittances to Vietnam reached US$16 billion, marking a 32% increase compared to 2022. Cumulatively, remittances sent to Vietnam from 1993 (the first year of remittance statistics) to 2022 amounted to over $190 billion, almost equal to the foreign direct investment (FDI) disbursement during the same period. According to the State Bank of Vietnam, remittances to Vietnam exceed $10 billion annually.

Indeed, remittances make a significant contribution to ensuring the supply-demand relationship for foreign exchange, while also effectively supporting monetary policy, exchange rates, and foreign exchange markets.

This becomes even more meaningful in the context of fluctuations in strong currency fluctuations and inflation in certain countries, which exert pressure on exchange rates and the relationship between exchange rates, interest rates, and inflation.

Experts explain that post-Covid-19, the global economy in general, and Vietnam in particular,  has faced considerable challenges, with severe declines in revenue across various sectors. To promote economic recovery, some countries have started to ease border restrictions, while healthcare policies have gradually been relaxed.

This has led to an increase in the number of Vietnamese laborers going abroad. This is also one of the reasons why remittances have risen significantly compared to the previous year. Despite encountering difficulties due to the economic downturn, overseas Vietnamese continue to focus on supporting and assisting their relatives and families back home.

Additionally, in 2023, the Vietnamese community overseas continued to grow both in number and diversity. Currently, the community consists of approximately six million individuals in 130 countries and territories, with over 80% residing in developed nations. Overseas Vietnamese continue to engage in various activities aimed at supporting their homeland, playing a crucial role in the country's development process.