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“When you leave, the Party calls you a traitor; When you return, the Party calls you an overseas Vietnamese.”

This comment, left under a Facebook post by Luật Khoa Magazine (TVM’s Vietnamese-language sister magazine), reflects a reality that is equal parts tragic and absurd. [1] It highlights the two distinct tones the Vietnamese government has always maintained toward the overseas community. At times, the diaspora is labeled “reactionary exile organizations”; at other moments, it becomes “a thousand-mile stretch of the nation’s flesh and blood,” an inseparable part of the homeland. [2]

This tragicomic shift in tone is likely driven by a single factor: money.

Every year, as the calendar draws to a close, messages celebrating the bond between Việt Nam and overseas Vietnamese abound. Banks roll out preferential programs for remittance transfers, and state media highlight the diaspora's important contributions. Together, these messages form an economic–political narrative that has operated for decades.

The state encourages these remittances for a simple reason: the quiet streams of foreign currency flowing across borders are powerful enough to stabilize exchange rates, sustain millions of households, and prevent the broader economy from losing its footing.

The Underground Current of Việt Nam’s Economy

In a 2022 report, the World Bank ranked Việt Nam as one of the top remittance-receiving countries globally, placing it fourth in Asia. [3] The volume is significant: inflows reached $18 billion in 2021 and $19 billion in 2022, equaling nearly 5% of the national GDP. [4]

To put this into perspective, the cash sent home by overseas Vietnamese each year nearly matches the total foreign direct investment ( FDI ) used to build factories and launch projects. [5] Yet, unlike FDI, which demands tax incentives and project approvals, or official development assistance (ODA), which entails strict repayment obligations, remittances arrive without paperwork. They are simply direct transfers from relatives to relatives—no conditions attached.

This capital flow is far more stable . The IMF argues that because remittances are driven by emotional ties rather than profit, they endure even when the economy falters. [6] While investors often withdraw capital during economic headwinds, migrant workers continue—or even increase—their support to keep their families secure.

Remittances, therefore, do not track with market sentiment, interest rates, or financial volatility. Instead, they act as a counter-cyclical force. In the eyes of the state, this makes them an underground water source, keeping the economy from drying out and cracking during hard times.

An Economy Dependent on U.S. Dollars

Việt Nam’s economy is heavily dependent on imports . [7] To function, the country requires more than $300 billion annually to purchase fuel, components, and machinery—all of which must be paid for in U.S. dollars. [8]

Because of this, any tightening of dollar supplies causes exchange rates to rise immediately. The impact spreads quickly to everyday expenses, inflating the cost of everything from market vegetables to gasoline and straining household budgets.

Remittances help mitigate this issue. When overseas Vietnamese send money home, banks gain access to hard currency, allowing the State Bank of Việt Nam to purchase these dollars to bolster foreign-exchange reserves. These reserves once exceeded $110 billion , thanks in part to these contributions. [9]

In short: when dollars are readily available, exchange rates remain stable, and the market faces fewer shocks.

Social Welfare That Requires No State Budget

The World Bank has noted that remittances help reduce poverty and improve household welfare in many developing countries. [10] This assessment is hardly an exaggeration. In provinces with long traditions of labor migration—such as Nghệ An, Hà Tĩnh, and Quảng Bình—tens of thousands of families maintain relative stability solely due to regular transfers from relatives working abroad.

These remittances act as a private safety net, allowing households to avoid financial collapse when facing illness, unemployment, or failed harvests. A timely transfer can help struggling families regain their footing, effectively reducing the burden on the state’s own social welfare spending.

Therefore, when the government declares that “overseas Vietnamese are an inseparable part of the nation,” it is not merely an emotional message. It is a recognition of these contributions and an effort to sustain a financial flow whose social value is as immense as it is quiet.

The Political Dimension of Remittances

While remittances may appear to be simple family assistance—covering the cost of a new roof or a semester of tuition—their impact is far deeper. They underpin macroeconomic stability, which, as any political science textbook will attest, forms the foundation of social stability.

Nations with large migrant populations, such as the Philippines and India, have long recognized this. They have developed specific strategies to preserve these flows because, in developing economies, remittances often represent a significant share of GDP and serve as a critical lifeline during crises.

Việt Nam is no exception. The financial flows from overseas Vietnamese communities do more than merely calm exchange-rate volatility or sustain consumer spending. They help maintain overall stability—a goal that every government, in every era, prioritizes above all else.

***

These calls will continue, year after year. This is not merely an attempt to evoke national solidarity during the Lunar New Year; it is a reflection of the fact that Việt Nam’s economy genuinely depends on this flow of money.

And even if the economy someday grows strong enough to no longer rely on this capital, remittances will likely remain one of the most anticipated financial events of the year.

Thúc Kháng wrote this article in Vietnamese and published it in Luật Khoa Magazine on Feb. 13, 2026. Đàm Vĩnh Hằng translated it into English for The Vietnamese Magazine.

References: +

1. See: https://luatkhoa.com/2026/02/chu-tich-nuoc-keu-goi-nguoi-viet-hai-ngoai-chung-suc-thuc-hien-nghi-quyet-dai-hoi-14-cua-dang/

2. Tin tức . (n.d.). https://thads.moj.gov.vn/laichau/noidung/tintuc/lists/hoatdongdoanthe/view_detail.aspx?itemid=80

3. See: https://documents1.worldbank.org/curated/en/099818008142419054/pdf/IDU-29663507-6a71-437b-8500-9065d7f1eda1.pdf

4. Theo cơ sở dữ liệu GDP của World Bank, quy mô kinh tế Việt Nam đạt khoảng 362 tỷ USD năm 2021 và 408 tỷ USD năm 2022. Với lượng kiều hối 18–19 tỷ USD mỗi năm, dòng tiền này tương đương gần 5% GDP.

5. Baochinhphu.Vn. (2022, December 27). Giải ngân FDI tăng trưởng tốt. baochinhphu.vn . https://baochinhphu.vn/giai-ngan-von-fdi-nam-2022-tang-dat-hon-22-ty-usd-102221227100037115.htm

6. Remittances: funds for the folks back home . (2019, February 5). IMF. https://www.imf.org/en/publications/fandd/issues/series/back-to-basics/remittances

7. Online, N. D. (2026, January 11). Vietnam sets new record as exports exceed 400 billion USD. Nhan Dan Online . https://en.nhandan.vn/vietnam-sets-new-record-as-exports-exceed-400-billion-usd-post143256.html

8. Rasyiqah, & Rasyiqah. (2025, August 1). Export and import in Vietnam . Global Angle. https://global-angle.com/export-and-import-in-vietnam/

9. VnBusiness. (n.d.). Dự trữ ngoại hối đang ở mức kỷ lục gần 110 tỷ USD – VnBusiness. VnBusiness . https://vnbusiness.vn/du-tru-ngoai-hoi-dang-o-muc-ky-luc-gan-110-ty-usd.html

10. Ratha, D. (2024, March 16). Remittances reduce poverty. World Bank Blogs . https://blogs.worldbank.org/en/peoplemove/remittances-reduce-poverty

Việt Nam’s $19 Billion Lifeline: The Economic Impact of Overseas Remittances

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