Vietnam International Remittance Market Business and Investment Opportunities - Analysis by Transaction Value & Volume, Inbound and Outbound Transfers to and from Key States, Consumer Demographics – Q3 2024

Vietnam International Remittance Market Business and Investment Opportunities - Analysis by Transaction Value & Volume, Inbound and Outbound Transfers to and from Key States, Consumer Demographics – Q3 2024

According to PayNXT360, the international inbound remittance market in Vietnam has increased at 3.4% during 2023 to reach US$14,006.8 million in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 1.8%, increasing from US$13,540.8 million in 2023 to reach US$15,071.0 million by 2028.

Remittance outflow market in Vietnam has increased at 3.8% during 2023 to reach US$160.2 million in 2024. Over the forecast period (2024-2028), market size is expected to record a CAGR of 2.2%, increasing from US$154.4 million in 2023 to reach US$174.5 million by 2028.

The remittance industry in Vietnam plays a crucial role in the country's economy by receiving significant financial inflows from abroad. Recent trends show a strong movement toward digitalization, with new fintech companies changing the industry by offering cost-effective and user-friendly solutions. As more companies compete with each other, it's important for them to make friends and spend money on new technology to stay important.

The transfer of money to Vietnam in the future seems very good. This is because of new technology and a promise to include more people in the financial system. This means there are chances for everyone involved to adjust and do well in a rapidly changing market.

Overview of Inward Remittances

• Significance of Inward Remittances: Vietnam ranks among the top countries globally for remittance inflows, with significant contributions from the Vietnamese diaspora working abroad. These remittances support families, enhance living standards, and stimulate local economies.

• Economic Impact: Inward remittances are vital to Vietnam's economy, contributing to foreign exchange reserves and bolstering household incomes. They provide essential financial support for education, healthcare, and investment in small businesses, which fosters economic growth.

Identifying Trends and Developments in the Remittance Market

• Digital Transformation: The remittance market in Vietnam is experiencing a rapid shift towards digital solutions. The COVID-19 pandemic has accelerated this trend, with many consumers opting for online platforms to send money.

• Example: Digital remittance platforms like Momo and ZaloPay offer user-friendly interfaces that simplify the process and enable users to send money internationally at lower costs than traditional banks.

• Increased Adoption of Mobile Wallets: Mobile wallets are gaining popularity because they are convenient and have lower transaction costs.

• Example: Services like Momo have integrated remittance features that enable users to send money quickly and securely to recipients abroad, reflecting the growing preference for digital payment solutions.

• Emerging Remittance Corridors: Specific corridors connecting Vietnam with countries like the United States, Australia, and South Korea are becoming increasingly significant for remittance flows.

• Example: The area between Vietnam and the United States has many people from Vietnam. They send money back to Vietnam, and this has been growing significantly in the past few years.

Analysing Currency Impact on Remittances

• Exchange Rate Dynamics: The value of the Vietnamese dong against other currencies significantly impacts remittance flows. Changes in the value of money from one country to another can impact how much people can buy with the money they receive from family members living abroad.

• Local Currency Transactions: Initiatives promoting local currency transactions can streamline remittance processes and reduce costs for senders.

• Example: Partnerships between Vietnamese banks and foreign financial institutions facilitate local currency transfers, enhancing efficiency in cross-border payments.

Exploring Strategies by Players Operating in Remittance

• Diversification of Services: Companies in the remittance sector are expanding their service offerings beyond traditional money transfers to include services like bill payments and mobile recharges.

• Investment in Technology: Players invest heavily to improve transaction speed, security, and transparency.

• Example: Western Union has enhanced its digital platform to better compete with emerging fintech players by improving user experience and reducing transaction costs.

• Strategic Partnerships: Collaborations between traditional financial institutions and fintech companies are increasingly common, leveraging technology for better service delivery.

• Example: Collaborations between banks and fintech firms allow for improved customer engagement through innovative payment solutions that cater specifically to the needs of Vietnamese expatriates.

Recognizing Emerging Players and Market Competition

• Rise of FinTech Innovations: New entrants like Momo and Payoo are disrupting traditional remittance models by offering lower-cost solutions that appeal to tech-savvy consumers.

• Example: Momo’s expansion into international remittances positions it as a competitive player against established banks and money transfer operators by providing a seamless digital experience.

• Intensifying Competition Among Providers: The entry of fintech players has increased competition in Vietnam's remittance market, prompting traditional institutions to enhance their services and adopt more competitive pricing strategies.

Investment Trends and Future Outlook for Remittances

• Focus on Digital Infrastructure: Future growth in the remittance market will be driven by investments in digital infrastructure, including payment systems that facilitate faster transactions across borders.

• Government Initiatives for Financial Inclusion: Efforts to enhance financial inclusion will likely expand access to remittance services for underserved populations in Vietnam.

Positive Growth Projections: Despite current challenges, the long-term outlook for Vietnam's remittance market remains optimistic due to increasing digital adoption and favourable regulatory environments that promote innovation in financial services.

This report from PayNXT360 provides a comprehensive analysis of the international inbound and outbound remittance market in Vietnam. It covers the market opportunity by transaction value, transaction volume, average value per transaction, key market players, market opportunity by channel, consumer profile, and by sending / receiving countries.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Scope

International Inbound Market Opportunity Trend Analysis in Vietnam
• By Transaction Value
• By Transaction Volume
• By Average Value Per Transaction

Market Share of Key Players in Vietnam

International Inbound Market Opportunity Trend Analysis by Channel in Vietnam
• Digital (transaction value, transaction volume, average value per transaction)
• Mobile (transaction value, transaction volume, average value per transaction)
• Non-Digital (transaction value, transaction volume, average value per transaction)

International Inbound Remittance Analysis of Consumer Profile in Vietnam
• Analysis by age group of senders
• Analysis by income of senders
• Analysis by occupation of senders
• Analysis by occupation of beneficiaries
• Analysis by purpose

International Inbound Remittance Flow Analysis (Country to State / Region) in Vietnam
• Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
• Market share by transfer channel by key state / regions

International Outbound Market Opportunity Trend Analysis in Vietnam
• By Transaction Value
• By Transaction Volume
• By Average Value Per Transaction

International Outbound Market Opportunity Trend Analysis by Channel in Vietnam
• Digital (transaction value, transaction volume, average value per transaction)
• Mobile (transaction value, transaction volume, average value per transaction)
• Non-Digital (transaction value, transaction volume, average value per transaction)

International Outbound Remittance Analysis of Consumer Profile in Vietnam
• Analysis by age group of senders
• Analysis by income of sender
• Analysis by occupation of sender
• Analysis by occupation of beneficiaries
• Analysis by purpose

International Outbound Remittance Flow Analysis (State / Region to Country) in Vietnam
• Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
• Market share by transfer channel by key state / regions

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