The $4.5 billion was sent through the banking system, and the World Bank estimates Viet Nam will receive $5.5 billion by the end of the year.

Hanh attributed the increased inflow to the fact that the interest rate for US dollars held in Vietnamese banks is higher than in the US.

The deposit interest rate applied by the US Federal Reserve is only 1 per cent a year compared to 5 - 5.5 per cent for a 12-month term offered by Vietnamese banks.

Moreover, the deposit interest rate for the dong is still around 12 per cent, down from a peak rate of 18 to 21 per cent in September and October.

This high interest rate has attracted Vietnamese nationals abroad to send money to their relatives at home for savings. The remittances are changed into dong or kept in US dollars for deposits in local banks.

Additionally, overseas Vietnamese have been sending remittances targeting investments, such as the stock exchange and real-estate market, both of which are showing signs of revival.

Hanh added that the exchange rate between the US dollar and Vietnamese dong would stabilise over the next few months. He said the State Bank of Viet Nam would impose a flexible management policy concerning foreign currencies.

He said it would also closely monitor changes in the money market to make prompt and proper adjustments to curb sudden price hikes in the foreign currency exchange rate, especially the US dollar.