Inbound Remittances to HCM City Rise 5% in Jan-Aug

Tuan Minh

14:37 07/09/2017

BizLIVE - Remittances to Vietnam’s largest city are still on the rise in the first eight months of this year despite the Trump administration’s stricter immigration regulations.

Inbound Remittances to HCM City Rise 5% in Jan-Aug

Remittance inflows to HCM City remain strong. Photo: Internet

Remittance inflows via official channels into Ho Chi Minh City, Vietnam’s southern economic hub, reached $3 billion in the first eight months of this year, up 5% from a year earlier, although the Trump administration has tightened its immigration policy.
Of the sum, money sent from the United States accounted for 60% while that from Europe made up 19%, said Nguyen Hoang Minh, deputy director of the State Bank of Vietnam’s HCM City branch. These rates are unchanged from two months earlier.
He noted that remittance recipients have invested most of the money in production and business, instead of putting into savings, spending or investing in real estate and securities like before.
Stable macroeconomic fundamentals and reduced psychologically-driven upward pressure on the USD/VND rate have made recipients shift to holding the Vietnamese dong, he said.
The official predicted remittance inflows into the city will increase this year from a year earlier, driven by the city’s strong economic growth.
Overseas Vietnamese sent around $5 billion in remittances to the city last year, accounting for 57% of the country’s total.