Leading remittance receiver Vietnam expects 30% uptick this year

Vietnam has significant potential in both remittances and overseas education payment industries, said Allan Nguyen, co-founder of EzyRemit.

EzyRemit Worldwide inaugurated a new office in Vietnam this April. What were your motivations for this move?

EzyRemit in Vietnam aims to provide the best service for international students and their parents, as well as the families of remittance recipients, to support the Vietnamese community worldwide. We will give high priority to creating jobs for the younger generation in the country.

How do you assess the roles that remittances and overseas education payment play in Vietnam?

Vietnam has significant potential in both remittances and overseas education payment industries. As a top 10 recipient of overseas remittances worldwide in 2023, the substantial inflow of funds from its diaspora plays a crucial role in supporting the local economy, alleviating poverty and improving the living standards of many families.

Additionally, advancements in financial technology are making it easier, faster and more cost-effective to send money across borders, which further drives the demand for reliable remittance services.

Regarding payment for overseas studies, there were approximately 190,000 Vietnamese students studying abroad in the 2019-2020 academic year. As more Vietnamese families prioritize higher education and seek quality educational opportunities overseas, the demand rises for secure and efficient payment solutions for tuition and related expenses increases.

This presents a significant opportunity for EzyRemit to facilitate seamless transactions, ensuring that students and their families can focus on education rather than financial logistics.

Has EzyRemit faced difficulties in Vietnam?

Engaging in commerce, particularly in the emerging sector of financial technology (fintech), numerous obstacles are unavoidable. Nevertheless, we are persistently surmounting these obstacles and our triumphs are made possible by the unwavering commitment of a youthful, passionate team that collaborates to achieve the shared objective of establishing EzyRemit as a pioneering global fintech venture with Vietnamese roots.

Who are your current competitors in Vietnam? Are they Vietnamese or FDI companies?

At present, there are not many fintech companies like EzyRemit operating in Vietnam. There could be a few agencies or representatives of existing companies. There are a few companies operating illegally, but the government is gradually exerting control over such operations.

How would you compare the potentials of the remittance and overseas student payment industry segments?

For EzyRemit, remittances are the strongest and most active segment, given high demand among overseas Vietnamese.

Vietnam has consistently ranked among the top 10 global remittance receivers, with over $16 billion in 2023 and a 30% increase expected in 2024. Data shows a 3.5% rise in remittances to Ho Chi Minh City in the first quarter of 2024 compared to the fourth quarter of 2023, and a 35.4% increase year-on-year.

Regarding payments for overseas education, EzyRemit is gaining support from the Australian government and the host country. Vietnam is a promising market, leading the region according to the Southeast Asia Key Trends report 2024 by Acumen. We are strategically planning to promote the convenience and benefits of our education payment service to Vietnamese international students and their parents.