Examples of remittances in developing countries

In the article " How remittance helps economy in Viet Nam? " can we understand how remittance can support the economy and the lives of developing countries’ citizens.

So, how a person can do remittances in real life, here are some examples of this.

Remittances application in supporting the families’ lives.

Like the story, I told in the article How to make foreign remittance from South Korea to Vietnam? The worker I talked to is a good example of implementing remittances to cover family living.

This often happens to people from poor rural areas or families with difficult economic conditions. One of them has to go abroad to work to have money to send home and make a living.

The money they send back not only helps their loved ones get the necessities of daily life but also provides them with enough conditions to be able to upgrade their lives such as building a house, buying a car, giving money to their children to go to better schools, etc.

Moreover, this money can also help them save money to invest or do business in the future to become rich and get out of poverty.

Remittance can help with travel payments.

Through the content of the essay, How does remittance affect a developed country's economy? FinFan mentioned the helping of remittance for tourism purposes. Here is the best example of this work in developing countries.

L. is working and living in France, and she knows that her parents really want to travel around Europe specially to see the Eifel tower. Therefore, every month she goes to work and spends a decent amount of money so that she can send it back to her family along with being able to support her parents on a trip to Europe as their wish.

Not only that, but she also has enough money so that her parents can travel around the beautiful places in the world. During her parents' travel, all utilities are paid through the Visa bank card she created for her parents when she lived in Vietnam.

L.'s story is also a common example of using remittance to pay for travel bills and certain services of relatives abroad.

Remittance can support startups when they need capital to run companies.

Running a startup project is never easy, especially in the first stage. Founders must always find a way for their company to stay in the market for at least 6 months to find out if their business model is right for the market. Moreover, they need to reserve working capital to be able to operate for at least those 6 months.

Therefore, they need strong enough capital to be able to better support themselves by paying some fixed costs such as office equipment, assets in cyberspace, etc., and variable costs like staffs’ salaries, advertisements, bank interest rate, etc. every month. So, receiving remittances from friends and relatives abroad is a useful investment for them.

H. is the founder of a website platform agency in Ho Chi Minh City, in the first period of his startup he received many remittances from his relatives abroad. When I asked him about how these remittances can support him in that first stage of his company, he answered:

Through 3 examples of remittances above we can better understand the importance of remittances to the lives of people in developing countries like Vietnam.

It can be seen that remittance not only supports the daily necessities of people's lives but can also support them in the economic development of themselves, their families and society.