Remittances to Ho Chi Minh City reached a record high of approximately USD 9.6 billion in 2024, an increase of USD 140 million compared to 2023.

This information was shared by Mr. Nguyen Duc Lenh, Deputy Director of the State Bank's branch in Ho Chi Minh City, during a recent meeting. Notably, 74% of the funds flowed into the city through remittance companies, while nearly 26% was transferred via credit institutions.

Over the past three years, Ho Chi Minh City has consistently been the locality reporting the highest volume of remittances, accounting for more than half of the nation’s total.

Specifically, remittances to Ho Chi Minh City from the Asia region account for the highest proportion, nearly 54%, marking a 24% increase compared to the same period last year. Remittances from Oceania and the Americas have increased by 20% and over 4%, respectively. In contrast, the flow of funds from Europe has decreased by 19% compared to the previous year.

Remittances are a major source that supports monetary policy, exchange rates, and the foreign exchange market while also helping to maintain the balance between supply and demand for foreign currencies. This is especially significant when there are strong currency fluctuations, when inflation in several nations puts significant pressure on exchange rates the relationship between exchange rates - interest rates and inflation.

The policy proposal to enhance the effectiveness of remittance resources in Ho Chi Minh City by the year 2030 was approved at the end of September 2024. Its aim is to devise solutions that direct remittances into sectors such as the stock market, manufacturing, services, and real estate, with the goal of utilizing these resources to foster sustainable socio-economic development.

According to city officials, the recorded remittances are partially the result of foreign affairs activities through trade development programs and the efforts to attract investments from foreign enterprises, in addition to the contributions of Vietnamese citizens living overseas.

These financial resources not only serve to foster economic development but also contribute to the generation of resources, thereby expanding and accelerating the growth of the financial hub of Ho Chi Minh City.

With the forecasted remittance situation for 2024 and the encouraging policies outlined in the proposal, experts believe that this will serve as a catalyst to attract remittance inflows to Ho Chi Minh City in 2025 and the forthcoming period. This, in turn, will contribute to fostering more sustainable economic and social growth for the city.

Kylie Nguyen