According to the State Bank of Vietnam (SBV) Ho Chi Minh City branch, the amount of inward remittances to Ho Chi Minh City in the first 9 months of 2024 reached nearly USD 7.39 billion, an increase of 10.5% over the same period last year. Although the amount of inward remittances in the third quarter recorded a slight decrease of 4.1% compared to the second quarter, this level was still equal to 78.1% compared to the whole year of 2023 (the year with the highest amount of remittances with USD 9.46 billion).

Of the inward remittances, remittances through economic organizations (remittance companies) reached USD 5.48 billion and those transferred through credit institutions reached more than USD 1.9 billion. Of which, remittances from Asia still accounted for the highest proportion (53.8%) and continued to maintain the best growth rate, an increase of 24.1% over the same period. Remittances from the Americas increased by 4.4%; from Oceania increased by 20%; from Europe decreased by 19.1% over the same period.

Notably, the amount of remittances to Ho Chi Minh City in the first 9 months of 2024 exceeded the figures for the whole year of 2020 (USD 6.1 billion), 2021 (USD 7.1 billion) and the whole year of 2022 (USD 6.6 billion). This amount of remittances is nearly 4 times higher than the amount of foreign direct investment (FDI) in the city (about USD 1.91 billion). In the 2012 - 2023 period, the amount of remittances transferred to Ho Chi Minh City through the system of commercial banks, economic organizations, and remittance companies reached more than USD 65 billion, with an average increase of 3 - 7% per year.

According to the city's data and statistics over the past years, remittances to Ho Chi Minh City account for 38-53% of the total remittances nationwide. Thus, it is expected that in 2024, remittances nationwide will reach about USD 19 billion and this will be a record high achieved in 2022.

According to Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam, Ho Chi Minh City branch, although remittances to the city have decreased in recent quarters, it is forecast that from now until the end of 2024, the growth rate will still be maintained. This forecast is based on actual statistics in recent years and the growth trend of remittances in the fourth quarter of each year, which is the last quarter of the year, with the occasion of traditional lunar new year holidays and remittances often at a high growth rate. Specifically, remittances increased by 26.1% in the fourth quarter of 2021; 12.7% in the fourth quarter of 2022 and 17.9% in the fourth quarter of 2023. It is predicted that remittances will still achieve a growth rate of about 10% in 2024.

The steady increase in remittances to Ho Chi Minh City over the years will create much potential thanks to positive factors from the remittance attraction policy mechanism, labor market development policies, etc.

Kylie Nguyen