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The amount of remittances to Ho Chi Minh City has reached the highest level in the past 10 years


Despite many difficulties, the amount of inward remittances to Ho Chi Minh City in 2023 still maintained a good growth rate, reaching more than USD 9.46 billion, an increase of 43.3% compared to 2022.

This is also the highest growth rate in the past 10 years and a high proportion of over 50% of the country's total remittances. The above information was announced by Mr. Nguyen Duc Lenh, Deputy Director of the State Bank Ho Chi Minh City branch, on the afternoon of January 24.

Analysis of remittances by region shows that remittances from Asia account for the highest proportion with 50.5% and a growth of 143.8% compared to the end of 2022. Meanwhile, the amount of remittances transferred from Africa and the Americas decreased.

"In particular, remittances from the Americas accounted for a high proportion of 29.1%, just behind the Asian region, but the value of remittances decreased by 10.2%. Labor, service, and tourism markets are open and developing after the pandemic in Asian countries, along with a stable economic and political environment are factors that have a positive impact on remittances transferred from the region in 2023 and in the near future," Mr. Nguyen Duc Lenh shared.

Explaining this impressive growth, Mr. Nguyen Duc Lenh analyzed that if the scale of remittances is compared to the total foreign direct investment capital in Ho Chi Minh City in 2023, the amount of remittances has reached 2.7 times, equal to about 14% of the city's GRDP. Remittances are associated with the trend of labor growth and working abroad.

Besides, stable macro-economy, favorable business and investment environment, along with the Government's and the State Bank's policy mechanisms on attracting remittances; cultural, tourism and sports activities; linkage activities and communication about the country's achievements, the country's development, etc. are also the driving factors behind the growth of remittances.

Along with that, the development of remittance payment networks and services of commercial banks and businesses that directly pay remittances; Convenience, speed, efficiency and safety also make an important contribution to attracting remittances to the country in general and the city in particular in 2023.

According to Mr. Nguyen Duc Lenh, in the context of world economic decline, inflation and armed conflicts... affecting economic growth and influencing factors related to remittances, the amount of remittances transferred Ho Chi Minh City in 2023 still maintained a good growth rate, which is a very impressive result.


Kylie Nguyen

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