Remittances to HCM City are expected to increase slightly to $5.7 billion this year. (Photo: Internet)
Remittances to Ho Chi Minh City, Vietnam’s largest economic hub, are likely to amount to $5.7 billion this year, compared to an estimated $5.5 billion a year earlier, according to Nguyen Hoang Minh, deputy director of the State Bank of Vietnam (SBV)’s HCM City branch.
The strong remittance flows can be buoyed by the city’s robust economic growth, the official was quoted by local newspaper as saying.
Remittances to the city rose 3% year-on-year between January and June to $2.1 billion, running mainly to production and business, instead of to real estate, securities and savings before.
Over the past five years, remittances to the city have increased 10%-12% annually on average and account for roughly a half of the amount overseas Vietnamese send home.
Mr. Minh added that the increase in remittances is attributed to money sent from the United States and the European Union while that from China and South Korea makes up a small proportion.
Vietnam was the world’s 11th largest remittance recipient in 2015, with the amount reaching $12.25 billion, compared to $8 billion in 2010, according to a World Bank report released last December.