Key facts
- Japan's overseas remittances reached a record 1.004 trillion yen in fiscal 2025.
- This marks an 11.5% increase from the prior fiscal year.
- The growth is attributed to an expanding foreign worker population.
- Vietnam received nearly 30% of the total remittances.
- Remittances by foreign workers in Japan have more than doubled in the last decade.
Overseas remittances from Japan surged to a record 1.004 trillion yen ($6.2 billion) in the fiscal year ended March, marking an 11.5% increase from the previous year. This growth is largely attributed to the expanding population of foreign workers residing in Japan.
Foreign nationals living in Japan are on track to remit a record amount overseas this year, potentially exceeding 1 trillion yen ($6.8 billion) for the first time. Remittances by foreign workers in Japan have more than doubled over the past decade. Vietnam was the second-biggest destination for these remittances in fiscal 2025, receiving nearly 30% of the total.
Historically, remittances have been an underappreciated driver of economic activity, and seasonal patterns, such as a pronounced uptick every September, have been observed. This September surge is theorized to be linked to mid-year bonuses, cultural festivities, or educational tuition payments. Financial institutions and policymakers are advised to analyze monthly remittance data, particularly around the September period, to better understand workforce and cultural trends influencing cash flows.