Banks in Vietnam have stepped up competition to win the deposits of year-end remittances from overseas workers, which are a profitable source of income.

 Employees counting money at Ocean Bank

In the race to attract customers, Vietcombank has launched a promotion using MoneyGram, UniTeller and TNMonex services. Recipients of remittances are being offered mobile phones, computer tablets and microwave ovens to open accounts.

The deputy general director of Vietcombank, Nguyen Thanh Ha, said nearly USD1.3 billion was remitted last year, with remittances expected to hit USD1.4 billion this year.

Agribank, Vietinbank and ABBank are also pushing for new customers with promotional offers, while Sacombank is offering outbound tours and several gifts to customers using their services.

A director of Sacombank, Nguyen Huy Khang, said last year the bank took in USD1.7 billion in remittances and forecasts that will increase to USD2 billion this year.

One director of Agribank, in Bac Giang Province, reported it had received USD90 million, accounted for 90% of total remittances to the province.

"Most of the money came from South Korea and Taiwan and the trend is still increasing," she said.

The State Bank of Vietnam noted recent policy changes by the government and banks have made it easier for people to transfer money. As a result, banks have become more competitive in attracting foreign transfers.

Overseas remittances are the second-biggest source of income for Vietnam, accounting for some eight percent of gross national product.

The deputy chief executive of Lien Viet Post Bank, Nguyen Anh Van, said, "The amount of remittances has an annual increase of 10%, making a positive impact on the economy and foreign currency loans. It has helped banks build up foreign currency reserves."

According to the Central Institute for Economic Management (CIEM) and Western Union, total remittances to Vietnam in 2014 are estimated at USD11-12 billion, an increase of 5-10% on 2013.

The World Bank says Vietnam is among the top ten of the world's biggest remittance recipients.