Keeping Transfer Costs to a Minimum

It comes at no surprise that, at certain times, there may be large flows of money to less developed countries. This can happen because of a number of things. For instance, it makes sense that there would be large flows of funds at around the time when schools resume classes. This is because people who are working abroad, but who have left family members behind, will send money back home so that their kids can pay the tuition fees required. There’s a similar thing going on around the time of important holidays. People will send cash back home so that their loved ones can have a happy time.

Since it’s important for these workers to send as much of the amount back home as possible, it’s a good idea to become familiar with services that charge lower costs. So for example, they can read up on: as well as do other research. This is important because it will have a direct effect on the amount their loved ones actually receive. Over months and years, this can make a large difference.

Remittances and Local Economies

One of the interesting developments that is continuing is how some economies remain quite dependent on cash flows from their migrant workers. The situation in the home country is usually one where there are not very many employment opportunities. This might be exacerbated by issues relating to a large population or a rate of population growth that outpaces the ability of the economy to create employment opportunities. Or it’s also possible that there are jobs in that country, but the remuneration of these jobs is not sufficient to provide an adequate standard of living for that person or his or her family. And so people look to distant shores in order to find jobs which pay well enough to allow them to improve or upgrade their financial status.

This development is enhanced by the increase in alternatives and options for sending cash online. In the past, there were not that many choices. If you wanted to send money back home, you had to make use of traditional channels. The downside though was that this process could be rather inconvenient. You might need a lot of documentation in order to open the needed accounts or process the transaction. But you can’t just assume that all people have this type of documentation. For some people, having to apply for and procure these documents would result in lost time and possibly great inconvenience. However, new alternatives for sending and receiving money have cropped up, a development that has been enhanced by increased access to the internet and a reduction in price of communication technologies. So it becomes easier for people to remit part of their wages back home.

The upside of this is that it allows families to have another and usually better source of income. The remittances can be used to pay for school fees for the kids. Over time, this will allow the children to have access to a better education, which will then later open up avenues for future employment. The money sent back home can also be used to fund a small business. This thereby enhances the entrepreneurial sector of the economy, and in the process, this will help to create additional jobs for people back home. And then, there is also the fact that remittances can be used to make direct purchases such as a home for a family, some land for farming, a vehicle for getting around, and so on. This then boosts the economy by increasing local demand.

Vietnam: Rising From The Ashes

Vietnam has been seeing trouble in the last few hundred years. They were colonized by the French in the mid 19th century, were occupied by Japan in the 1940s, fought the French again and defeated them in 1954. Even today, many of the older Vietnamese people can speak fluent French.

They were then politically divided into two separate states, South Vietnam and North Vietnam, and a war began between them with heavy American involvement – this is the Vietnam War. North Vietnam eventually won in 1975 and the country as a whole became communist, and still is to this day. Since then, the whole country has been impoverished and suffering, until the turn of the century when the Vietnamese economic growth came to be among the best in the world.

TOPIO: Vietnamese Ping Pong Pro

TOPIO: Vietnamese Ping Pong Pro

International trade between Vietnam and other countries reached USD$124 billion in the first half of 2013, and Vietnamese technology has been among the best in the world – they have designed a humanoid robot called TOPIO that can play table tennis – and win – against a professional human player. He looks quite impressive with his abs and sunglasses!

So this is a wonderful thing. Vietnam has been recovering from its poor past condition and has proven itself to be strong enough to rise up and recover. Deep poverty, defined as earning the equivalent of less than one US dollar per day, is decreasing in Vietnam, and is now much less than China, India and the Philippines. Before the 1980s, the majority of Vietnam was below the poverty line and the average income per capita was below $100USD a year, but at 2010 the average income per capita has raised to $1,130USD per year. The unemployment rate in Vietnam was 4.46% in 2012, much lower than in the past.

However a large gap between the rich and the poor still remains, with no bridge in between. The rural areas are filled with poor farmers who cannot afford education for their families. Little to no infrastructure can be found in these areas and the rural land is largely prone to natural disasters.

There is still much poverty in Vietnam

There is still much poverty in Vietnam

Send money to Vietnam. Support this beautiful nation by making a donation today. Because of the favourable conversion rate, your US dollar can go a long way in Vietnam, so please give generously. If this process is something that you’d like more information on, you can check out this money transfer video. There’s also a lot of other information on this process online. Again, any assistance, no matter how small would most certainly be welcome.