Enhancing the development impact of migrant remittances and diaspora: the case of Viet Nam

In a traditional viewpoint, migrants are both pushed by lack of opportunities at home and pulled by the hope of economic gain. A search for a better life is often underlying the movements. Development processes affect and are affected by migration flows. Migration can help to achieve this by associating people more closely with available economic opportunities, employment and services. This thesis remains relevant today. Both internal and international migration is on the whole contributing to development and poverty reduction (IOM, 2003). The monies sent back by migrants contribute more to national and local economies than trade in several countries. Registered remittances to the countries of origin were estimated at US$100 billion in 2004. It represents roughly one and a half times official development assistance (Newland, 2004). In addition, a large, unknown amount is transferred through informal channels or to countries that do not report statistics on remittances. A major reason to transfer money through informal channels is the still inadequately developed banking systems in countries of origin. The effects of remittances on development are often complex and contradictory, but seen in a positive light by a majority of researchers.