The present paper examines the determinants of remittance behavior for Vietnam
using data from the 2004 Vietnam Migration Survey on internal migrants.
It considers how, among other things, the vulnerability of a migrant’s life at the
destination, their link to relatives back home, and the time spent at the destination
affect remittances. The paper finds that migrants act as risk-averse economic
agents and send remittances back to the household of origin as part of an
insurance exercise in the face of economic uncertainty. Remittances are also
found to be driven by a migrant’s labor market earnings level. The paper
highlights the important role of remittances in providing an effective means of
risk-coping and mutual support within the family.