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Remittances to HCMC are estimated at USD 5.5 billion

23/12/2020

Despite the negative impacts of the COVID-19 pandemic, remittances to Vietnam still increased significantly. Particularly in Ho Chi Minh City, remittances transferred through credit institutions are estimated at USD 5.5 billion, an increase of 0.82% compared to 2019.

According to Nguyen Hoang Minh, Deputy Director of the State Bank branch in Ho Chi Minh City, in the past 10 months, the total amount of remittances sent to the city is estimated at USD 4.7 billion. This figure is significantly higher than the USD 4.2 billion in the first nine months of the year, despite the negative impact of the COVID-19 pandemic.

 “In the first 10 months of 2020, remittances to Ho Chi Minh City have reached over USD 4 billion, an increase of 2% compared to the same period in 2019 and we expect that in 2020, remittances transferred to HCMC through credit institutions will still reach USD 5.5. billion, an increase of 0.82% compared to 2019”, Mr. Minh said.

According to Mr. Minh, remittances gradually recovered after countries around the world took measures to curb the spread of the disease. Especially many countries have eased shutdown orders, economic recovery will be opportunities for jobs and income for workers, remittances will return to normal.

Moreover, Vietnam is one of the few countries in the world to have successfully controlled the COVID-19 pandemic. This creates investment opportunities in Vietnam and attracts overseas Vietnamese to transfer money home to invest in and expand production and business.

Previously, in the Report on Migration and Remittances just announced, the World Bank (WB) forecasted that the amount of remittances flowing to Vietnam in 2020 will reach approximately USD 15.7 billion, accounting for 5.8% of GDP and a decrease of about 6% compared to 2019.

Accordingly, Vietnam ranked 9th in the world in terms of total remittance value this year. In the East Asia-Pacific region alone, Vietnam ranked third, behind China with USD 59.5 billion and the Philippines with USD 33.3 billion.

 

Kylie Nguyen

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