Inward remittances to Ho Chi Minh City reached USD 3.8 billion over the first 9 months
Mr. Nguyen Hoang Minh, Deputy Director of the State Bank Ho Chi Minh City branch, said remittances to the City over the first nine months of the year reached about USD 3.8 billion, an increase of 7 percent over the same period. It is expected that remittances for the whole year will reach USD 5 billion.
Regionally, growth in remittance inflows ranged from almost 7 percent in East Asia and the Pacific to 12 percent in South Asia. The overall increase was driven by a stronger economy and employment situation in the United States and a rebound in outward flows from some Gulf Cooperation Council (GCC) countries and the Russian Federation.
Remittances to the East Asia and Pacific region grew almost 7 percent to USD143 billion in 2018, faster than the 5 percent growth in 2017. Remittances to the Philippines rose to USD 34 billion, but growth in remittances was slower due to a drop in private transfers from the GCC countries. Flows to Indonesia increased by 25 percent in 2018, after a muted performance in 2017.
Vietnam has huge resources from 4.5 million overseas Vietnamese who are eager to contribute to the development of the country. The amount of remittances to Vietnam increased continuously and reached the Top 10 in the world in 2017 with USD 13.81 billion; In 2018, the amount of remittances sent to Vietnam reached USD 15.9 billion, according to statistics of the World Bank (WB).
Particularly in the area of Ho Chi Minh City, the amount of inward remittances increased by an average of 8-10 percent per year recently has somewhat has positive impact on the exchange rate. Remittances are often dependent on macro-economic conditions, the situation of workers abroad, services that attract remittances, etc. It is expected that this year, remittances will reach USD 5 billion.
In recent years, macroeconomic stability and the pressure to increase the exchange rate due to market sentiment has been somewhat removed, therefore, recipients of overseas remittance have also gradually shifted from holding foreign currencies to Vietnamese Dong.
As a result, the USD/VND exchange rate from the beginning of the year to date has been quite stable despite the strong fluctuation of the world market.
- The State Bank and enterprises join hands to promote cashless payments
- Credit growth plummeted due to the impact of COVID-19 pandemic
- Controlling inflation is a top priority
- More positive forecasts about exchange rate stability in 2020
- SBV tightened information security in banking operations
- Helping businesses access capital more easily but not by lowering lending standards
- BVSC: Interest rates are likely to move sideways in the near term
- Digital banking and electronic payment are set to boom in the time of Covid-19
- Non-cash payments have recorded positive changes
- State Bank of Vietnam cut down regulations on business activities