Households where the head does not work, whether because of retirement or for some other reason, are far more likely to receive remittances, especially from overseas, than households where the head works. One interpretation is that remittances, especially the larger ones originating abroad, allow one to retire. The best asset that an elderly person in Vietnam can have is a close relative overseas. The high proportion of foreign remittances flowing to households in the Southeast region is striking, but not surprising. Most of the Vietnamese living overseas come from the south of the country.
More remittances flow to urban than to rural areas, especially remittances from abroad.
The major recipient of the inflow of foreign remittances is Ho Chi Minh City, which is already the richest part of Vietnam. No wonder then that these inflows contribute to greater inequality, as they top-up the incomes of families that are already among the better off. A relatively high proportion of foreign remittances flow to households with high educational expenses, as if foreign relatives are trying to help pay for the education of nieces and nephews. And a high proportion of all remittances flow to households with heavy medical expenses. These patterns shed some light on the motivations behind remittances.