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Inward remittances to Ho Chi Minh City reached USD 3.16 billion

09/08/2022

According to the State Bank of Vietnam, Ho Chi Minh City Branch, the total amount of remittances transferred to Ho Chi Minh City through credit institutions and economic organizations in the first six months of 2022 reached USD 3.16 billion, decreased by 13% compared to the same period in 2021.

The reason for the decrease in remittances is due to the Russia-Ukraine conflict and the difficult economic situation in several countries and regions around the world, thereby reducing the income of overseas Vietnamese workers and their ability to save money.

It is known that this source of foreign currency makes an important contribution to the economic recovery and growth of Ho Chi Minh City, and at the same time helps overseas relatives in the country to expand production and develop tourism, service and trade.

According to economic experts, for a long time, Ho Chi Minh City has been the largest center for attracting remittances in the country because the city has many people going abroad to settle down. Meanwhile, remittance flows are an important source of foreign currency for the Vietnam's economy, helping to improve the balance of payments and foreign exchange reserves.

However, the generations of Vietnamese living abroad are getting older and older, so the amount of money they have accumulated and sent back to the country is also gradually decreasing, while the younger generations do not have many connections with their relatives in the country.

Therefore, many experts suggest that, in order to attract more remittances to Vietnam, in the upcoming period, the State needs to implement policies to orient or create motivation for remittances to invest in the manufacturing sector and human resource development, such as education and public health, etc. creating positive long-term development effects for the country.

In particular, it is necessary to continue to have policies to expand the form of loans, create favorable conditions for Vietnamese workers to work abroad and encourage all economic sectors to expand export markets and business areas both at home and abroad.

 

Kylie Nguyen

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