Friday, December 23, 2011

52% of inward remittance poured into property market

This year’s remittance to Vietnam is estimated to have reached $9 billion; up nearly $1.5 billion compared with 2010, according to data of the National Finance Supervision Committee, up to 52% of the remittances has been poured into the real estate market.

Turnover of Vietinbank’s money transfer and remittance trading office in 2011 is expected at over $1.3 billion, the highest figure of the bank so far. A representative of Vietinbank said, the estimated remittance inflow of $9 billion was the impressive figure and most of the amount was invested in property.

Such a high remittance came from Vietnamese overseas (Viet kieu) that sent money to support their relatives, a large part was investment in realty. Business and working operations of Viet kieu faced a lot of difficulties so they tended to transfer money to the homeland for investment, Mr Ngo Xuan Hai, Head of the office explained.

Archi Investment Joint Stock Co, investor of Nine Ivory Project revealed that despite being opened in the gloomy phase of the real estate market like present, they still gained a considerable number of customers who had inward remittances by the year end. Actually resort property allows long term investment and high profitability, matched with the investment demand of Vietnamese living in foreign countries.

The overseas remittance contributed well to the liquidity of real estate market, especially the resort property segment, said Nguyen Thanh Trung—Director of Nine Ivory Resort Project.