Ho Chi Minh City receives $5.2 billion in remittances in H1

In the second quarter alone, remittances to the city increased by 4 per cent on-year, amounting to $2.3 billion, according to the State Bank of Vietnam (SBV) in Ho Chi Minh City.

Nguyen Duc Lenh, deputy director of SBV Ho Chi Minh City, said that the Asia region continued to contribute the highest share, accounting for 56 per cent of remittances to the city. Compared to the same period last year, remittances from this region grew nearly 50 per cent, driven by a positive labour market and human resource activities.

Lenh emphasised the importance of effectively utilising remittance resources and implementing strategies to attract more inflows.

"It's crucial to maximise the use of remittances for enhancing this 'golden' resource," he noted.

He suggested that policies on foreign exchange, remittance attraction, investment environment improvement, and the quality of remittance payment services should continue to be prioritised.

Lenh further proposed that remittance resources should be efficiently used to develop production, business, and commercial services through financial instruments such as local government bonds, investment funds, or securitisation.

"These solutions align with the development directions of a green economy, digital economy, high-quality education and healthcare, technology applications, and tourism services, which are areas of interest for overseas Vietnamese investors," he said.

Annually, Ho Chi Minh City records the highest remittance inflow in Vietnam, accounting for more than half of the country's total. Last year, remittances to the city were 2.7 times the total foreign direct investment (FDI) and represented about 14 per cent of the city's regional GDP.

Remittances play a crucial role in balancing foreign currency supply and demand, supporting monetary policy, exchange rates, and the foreign exchange market. This role is particularly important amid fluctuations in major currencies and inflation in some countries, which exert pressure on exchange rates, interest rates, and inflation dynamics.

Low birth and death rates, coupled with increased life expectancy, have accelerated Ho Chi Minh City's progression into an ageing population, with those over 60 years old accounting for 12.5 per cent of its citizens.