Ho Chi Minh City has for long been the largest recipient of remittances in the country. (Illustrative image. Source: VNA)

They are part of the city People's Committee plan to have policies to maximise inward remittances from now through 2030.

The Committee for Overseas Vietnamese will spearhead implementation of the project and regularly report on the results, challenges, and issues and suggest amendments if needed.

It outlines several policies to attract and utilise remittances, including directing them into the financial market (stock market and shares, among others). It sets to establish conduits to channel funds from remittance recipients to businesses, thereby facilitating the transfer of capital from individuals lacking investment opportunities to those with profitable investment prospects.

Other goals are to channel remittances into the privatisation of State-owned enterprises and the sale of public assets and diversify remittance methods to easily transfer funds from countries where large numbers of people of Vietnamese extraction live.

The city will propose to allow foreigners of Vietnamese origin to open bank accounts, and choose between holding deposits in foreign currency or the Vietnam dong.

Financial institutions in the city will study the possibility of developing two distinct products, one for overseas Vietnamese to remit money to their families who will control the account and the other accessible only by the remitters.

There is also a proposal to issue bonds with a five- or 10-year tenor to fund technical, social and economic infrastructure.

According to statistics from the People's Committee, some 2.8 million overseas Vietnamese have links to the city, or nearly 50% of the Vietnamese diaspora.

The US accounts for the largest number of overseas Vietnamese, estimated at over two million, followed by the UK, Australia and Canada.

Besides, major labour export markets such as Taiwan (China), Japan, and the Republic of Korea are home to a significant number of Vietnamese nationals.

The city has for long been the largest recipient of remittances in the country, accounting for around half annually.

The amount of remittances sent to the city through banks, remittance companies and other legal channels exceeded 65 billion USD in 2012-23, and grew at 3-7%.

In the first half of this year it received 5.2 billion USD in remittances, up 19.5% year-on-year.

They have been a bountiful and consistent source of funds, but the city authorities recognise there has been a lack of targeted policies and mechanisms to fully utilise their potential.