The strong growth in remittances has made Vietnam a potential market for international money transfer companies.
Seizing the market wave, 9Pay introduces optimised payment solutions, proactively approaching merchants looking to expand their business in Vietnam.
Significant increase in remittances to Vietnam
In the context of the global economy, remittances play a crucial role in the stability and growth of Vietnam’s economy.
From 1993 to 2022, the total remittances to Vietnam reached $190 billion, an impressive figure nearly equal to the total foreign direct investment (FDI) disbursed during the same period.
This strong growth has positioned Vietnam as a potential market for international cross-border remittance companies.
In 2022, remittances to Vietnam reached a record $19 billion, making Vietnam one of the top 10 remittance-receiving countries globally.
This reflects a positive trend and predicts that Vietnam will continue to receive a significant amount of remittances in the coming years, especially from Asia.
Experts identify three main factors influencing the growth of remittances to Vietnam: the difficulties of the global economy driving remittance growth from labour in Asia; the encouraging policies of the Vietnamese Government for overseas Vietnamese to invest in business and send money home; and the development of cross-border money transfer technology, making the remittance process easier and more efficient.
Potential market for cross-border remittance companies
The steady growth of remittances to Vietnam annually not only demonstrates the strength and continuous contribution of the Vietnamese community abroad to the domestic economy but also opens significant opportunities for cross-border payment companies to expand and develop in Vietnam.
However, to access and successfully develop in this market, companies must overcome certain challenges.
One of the biggest challenges is the legal regulations related to international money transfer activities in Vietnam.
Companies need to thoroughly understand and strictly comply with these regulations to ensure legal and stable business operations.
Additionally, the cost of building and maintaining a widespread service network is a significant barrier, requiring companies to have careful financial strategies and investments.
Moreover, the demands for reconciliation and security in remittance transactions are increasingly tightened, requiring continuous technology and process updates to protect customer information and ensure transparency and safety in each transaction.
Currently, with advanced technological solutions from payment intermediaries and banks in Vietnam, money transfer companies are well-equipped to overcome these challenges, enhancing their position on the international stage.
