Viet Nam's rapid economic development is fuelling large migration flows from rural to urban and peri-urban areas where employment opportunities are increasingly more available. According to some government offices, an estimated 25-30 percent of Viet Nam's largest cities consist of migrants. With regard to international migration, some 4.5 million Vietnamese live abroad with another 500,000 residing abroad as temporary workers in more than 40 countries and territories worldwide. In the past years, an annual average of 80,000 Vietnamese workers was dispatched for overseas employment. The major destination countries for migrants from Viet Nam are Taiwan, South Korea, Japan and Malaysia. Sending labourers overseas for employment links to the country's policy on employment, income generation,remittances, hunger eradication and poverty reduction, vocational training and acquisition of skills.

Remittances play an important role for many countries in the world, especially developing countries. For Vietnam, remittances become more and more important. In recent years, the flow of remittances to Vietnam continues to increase, contributing to counter-balance trade deficits, to eradication of hunger and poverty reduction, and increase of living conditions of remittance receiving populations.

With increasing number of overseas Vietnamese, annual remittances into Vietnam are also increasing year after year. According to the World Bank statistics, in 2013 Vietnam belongs to the top 10 countries that receive highest flows of remittances, with 11 billion USD – the ever highest number so far.
The reason of the high number of remittances to Vietnam recently is due to the high number of Vietnamese living abroad in many countries and territories where migrant workers occupy a considerably high percentage. Additionally, the state has a policy to encourage overseas Vietnamese to come back to Vietnam for investments, and to send foreign currencies to relatives in Vietnam while their relatives can receive remittances in original currencies or in VND as they wish and don’t have to pay any associated income tax. At the same time, services for official money transfers are very developed with participation of many banks in a high competitive market. According to an evaluation of the World Bank, remittances to Vietnam are subject to a rather low transfer fee, equal to about 0.05% of the remitted amount and at maximum not exceeding 200 USD. Besides, differences in interest rates of VND and foreign currencies in Vietnam are also a pull factor for remittances.
In practice, remittances are one of the important resources for socio-economic development especially in the context of Vietnam’ economy. Thanks to remittances, Vietnam has an additional stable income of foreign currencies helping to increase the state’s reserves of foreign currencies, reducing the dependency on foreign capitals as well as pressure of USD, and contributing to liquidating the balance of trade payments. On the other hand, remittances can also help to create employments, ensure stable life for a number of people through investments and businesses of overseas Vietnamese, and contribute to improve budget for housing, health care, and education…. Many economists believe that the amount of remittances will continue to increase in the future when the world economy is gradually recovering.

Vietnam’s labour migration is regulated by the Law regarding sending Vietnamese nationals to work abroad under contracts (No.72/2006/QH11) which was passed by the XI National Assembly during the 10th session on 29th November 2009, effective from 1st July 2007. Decree No.126/2007/ND-CP of the government regulates and guides the implementation of this Law. Along with various other legal documents and regulations related to labour migration, these instruments have created a comprehensive legal framework aimed at facilitating sending contract-based Vietnamese workers to work abroad. These documents clearly regulate the rights and interests of Vietnamese migrant workers abroad and the rights and obligations of sending companies, organizations and individuals. Circular No. 09/2006/TTLB/BLDTBXH-BCA-VKSND-TAND, dated 4th August 2006 guides the investigation of criminal responsibilities of people who violate laws in sending workers abroad.

On 20 September 2010, the Prime Minister promulgated Instruction No. 1737/CT-TTg, which enhances the protection of the legitimate rights and interests of Vietnamese nationals migrating abroad. This instruction provides, inter alia, specific tasks to be undertaken by relevant ministries, agencies and local People’s Committees to protect Vietnamese Nationals’ legitimate rights and interests throughout the entire process of their migration to foreign countries including pre-departure, residence, time spent working in foreign countries, return and reintegration. Pre-departure preparation for migrant workers going abroad is considered as the most important step within this process.

 

The ministry responsible for the management of labour migration is Ministry of Labour, War Invalids, and Social Affairs (MoLISA). Its Department for Overseas Labour (DOLAB), in coordination and cooperation with other departments within the ministry and concerned agencies of the government, is directly supervising labour migration of Vietnam.

Review of Vietnamese Migration Abroad. Consular Department – Ministry of Foreign Affairs of Vietnam, Hanoi, May 2012.