He said the State Bank soon would introduce a directive to implement the government's incentives encouraging overseas Vietnamese, known as Viet Kieu, to send more money to one of the world's poorest countries. Remittances will not be subject to income tax and recipients can choose to withdraw the money directly or to keep it in their accounts. The incentives will apply to all Vietnamese residing overseas, including those working or studying abroad. Prime Minister Phan Van Khai signed the decision on the new incentives for Viet Kieu in October. Under the ruling, Vietnamese holding Vietnamese passports while living abroad will not have to seek entry visas and will pay the same prices for services and travel as local residents.
Foreigners often pay twice as much for travel and accommodation as local residents.
Overseas Vietnamese had urged Hanoi to abolish the dual-pricing system. The ruling came into effect on Nov 10. Vietnam has been eager to gain access to the investment and education of overseas Vietnamese since it opened up its economy in 1986. However, despite the official efforts to woo them home, many of these people still feel uneasy about returning to a country which they fled. Those who fled the south of the country have complained that they are treated with suspicion by the government as many were linked to the former South Vietnamese regime before the reunification of the country in 1975.