Remittances to Ho Chi Minh City touched $900 million in the first two months of this year. (Photo: www.thepowerlunch.com)
Inward remittances to Ho Chi Minh City, Vietnam’s southern metropolis, reached an estimated $900 million between January and February, much higher than the amount recorded in the same period of 2015.
The surge in remittances to the city was attributable to the peak remittance season, the Lunar New Year (Tet) festival, which fell in early February, Nguyen Hoang Minh, deputy director of the State Bank Vietnam (SBV) – HCM City branch, was quoted by local media as saying.
Recipients have been selling between 20% and 35% of remittances to banks since 2013 thanks to the steady USD/VND rate, Mr. Minh added. The ratio exceeded 22% in 2015.
With HCM City’s vibrant economic recovery, remittances to the city are expected to remain robust this year, after reaching a record high of $5.5 billion in 2015, according to experts.
According to SBV data, up to 70.6% of remittances to HCM City last year were funneled to production and business, 20.7% to real estate and some 7% were spent on personal needs.
Remittance is one of the most important sources of foreign currency in Vietnam, adding to foreign investments and official development aids.