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Five months, inward remittances to Ho Chi Minh City reached USD 2.6 billion

05/06/2021

Inward remittances to the Ho Chi Minh City reached USD 2.6 billion in the past five months, an increase of 13% over the same period. Thus, in May alone, the amount of inward remittances transferred to the city reached USD 600 million.
Mr. Nguyen Hoang Minh, Deputy Director of the State Bank of Ho Chi Minh City Branch, said that in the first five months of 2021, remittances to the city reached USD 2.6 billion, an incresae of 13% over the same period.

Earlier, inward remittances to Ho Chi Minh City in the first four months of this year reached USD 2 billion USD, an increase of 11% over the same period last year. Thus, in May alone, the amount of remittances flowing into the city reached USD 600 million.

Also according to Mr. Nguyen Hoang Minh, remittances to the city are forecast to reach about USD 6.5 billion this year, after increasing 15% to a record USD 6.1 billion USD in 2020.

For many years now, Ho Chi Minh City has been one of the areas receiving the largest amount of remittances compared to the whole country, despite the Covid-19 pandemic. Notably, the source of remittances mainly focuses on production and business, contributing to increasing the supply of foreign currency, thereby helping to stabilize the exchange rate and the dong.

In the latest global remittance data update report just released, the World Bank (WB) said that the agency has adjusted its estimate of remittances to Vietnam in 2020 from USD 15.7 billion in the previous report to USD 17.2 billion.

Accordingly, Vietnam is among the top 10 remittance recipients among low- and middle-income countries.

With the inflow of remittances equivalent to 5% of GDP in 2020, Vietnam is in the group of 10 countries in East Asia - Pacific with the highest proportion of remittances to GDP. The countries above Vietnam are mostly very small countries with a population of about 1 million people or less, with the exception of the Philippines.

Over the past five years, total remittances sent to Vietnam reached USD 71 billion, growing at an average rate of 6%/year; in which, in 2018 and 2019 reached USD 16 billion and USD 16.7 billion respectively.

Another number is also noticeable, in 2019 and 2020, the remittance from Thailand to Vietnam is one of the five most expensive remittance routes in the world. Accordingly, the fee for transferring a remittance amount equivalent to USD 200 from Thailand to Vietnam can be up to 13% of the amount transferred.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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