[9 Sept 2013] - Remittances from abroad reached a record high of nearly US$11 billion, or 8 per cent of Viet Nam's gross domestic product, in 2012, but economists were less than happy about it, saying it meant hidden economic and social costs for the country. 

Large remittances are a weakness for a country's economy, they said, claiming that for getting $10 billion, Viet Nam suffers a "loss" of $83 billion or $218 billion depending on whether it is based on the average international per capita income or regional number.

Their labour contributes to the GDP of the host countries while their spending also benefits that country, they said.

If Viet Nam could provide jobs for all its workers, it would benefit proportionately, they said.

Then there are many Vietnamese women who marry foreign men for economic reasons and move abroad. They are also lost to the country's workforce, the economists pointed out.

High remittances also indicate the backwardness of a nation's economy. The Philippines, for example, has the highest remittances while its per capita GDP is much lower than other countries in the region like Indonesia, Thailand, Malaysia, and Singapore.

The World Bank said developing countries received a total of $406 billion in overseas remittance last year. India topped the list with $70 billion, and was followed by China ($66 billion), the Philippines and Mexico ($24 billion), and Nigeria ($21 billion).

Some 400,000 Vietnamese work abroad, while 4 million other ethnic Vietnamese live in around 100 countries. 

(Source: Vietnam News)