Vietnam is forecast to receive $9 billion worth of overseas remittances in 2012, according to the latest report of the World Bank (WB).

The country ranks ninth among the world's largest remittance-receiving countries and territories in 2012, said WB Migration and Development report 2012.

In the updated report, WB said developing countries will receive a total of $406 billion of remittances this year, up 6.5 percent from last year.

Leading the top 10 list of largest remittance receivers is India with $70 billion, followed by China ($66 billion), the Philippines and Mexico ($ 24 billion each), and Nigeria ($21 billion). 

Vietnam stands behinds Egypt ($18 billion), Pakistan and Bangladesh ($14 billion).

The world’s last biggest recipient in the top 10 is Lebanon with $7 billion.

In 2011, inward remittances to Vietnam were around $ 9 billion (in 2010 it was over $8 billion). Vietnam also belonged to the group of 16 largest remittance-receiving countries in the world last year.

Many experts said the last month of the year is always a peak season for inward remittances to Vietnam as a lot of overseas Vietnamese will send the money back to their relatives in preparation for the Tet (Lunar New Year) holiday, and more importantly, for investment.

In the first six months of 2012, inbound remittances to Vietnam reached more than 6.3 billion, or 70 percent compared to the year 2011, according to data from the State Committee for Overseas Vietnamese Affairs (COVA).

Vietnam currently has approximately 4 million overseas Vietnamese living, studying or working in 101 countries, of whom about 400,000 are migrant workers.

The big picture

It estimates that remittances flowing into developing countries will grow 7.9 percent in 2013; 10.1 percent in 2014 and 10.7 percent in 2015 to reach $ 534 billion mark.

Remittances worldwide were estimated at $534 billion this year and rise to $685 billion in 2015.

As a percentage of GDP, the top recipients of remittances, in 2011, were Tajikistan (47 percent), Liberia (31 percent), Kyrgyz Republic (29 percent), Lesotho (27 percent), Moldova (23 percent), Nepal (22 percent), and Samoa (21 percent).

“Although migrant workers are, to a large extent, adversely affected by the slow growth in the global economy, remittance volumes have remained remarkably resilient, providing a vital lifeline to not only poor families but a steady and reliable source of foreign currency in many poor remittances recipient countries,” said Hans Timmer, Director of the Bank’s Development Prospects Group.

Regions and countries with large numbers of migrants in oil exporting countries continue to see robust growth in inward remittance flows, compared with those whose migrant workers are largely concentrated in the advanced economies, especially Western Europe.

Thus, South Asia, MENA and East Asia and Pacific regions, with large numbers of workers in the Gulf Cooperation Council (GCC) countries, are seeing better-than-expected growth in remittances.

Remittances are expected to remain flat to Europe and Central Asia and Sub-Saharan Africa regions, mainly because of the economic contractions in high-income European countries.