In the last months of 2006, overseas remittances sent by Vietnamese nationals living abroad increased sharply compared to previous months, according to commercial banks and overseas remittance centres.

Bank sources say overseas remittances in 2006 were estimated to reach more than US$4 billion, of which nearly US$3 billion was funnelled into Ho Chi Minh City.

According to Truong Van Phuoc, director of the State Bank's Department of Foreign Exchange Management, the sharp increase in overseas remittances is attributed to the renewed Foreign Exchange Ordinance that allows more individuals and organizations to access foreign loans. As a result, overseas Vietnamese can remit money to their relatives to run business in the form of bank loans.