According to the State Bank of Vietnam (SBV) Ho Chi Minh City branch, remittances to Ho Chi Minh City in the first 6 months of the year reached nearly USD 5.2 billion, or 54.7% compared to the whole year of 2023 and increased by 19.5% over the same period. Although the amount of remittances in the second quarter decreased by 19.5% compared to the end of the first quarter, reaching USD 2.3 billion, an increase of 4.2% was recorded compared to the second quarter of 2023.

Remittances from Asia still account for the highest proportion, accounting for 56.1% and increasing by 48.5% over the same period. Human resources and labor market factors continue to have a positive impact on remittances from this region in the first 6 months of 2024.

According to data from the Ministry of Foreign Affairs, currently, there are 6 million Vietnamese are living in 130 countries and territories, 80% of which are developed countries. In Ho Chi Minh City alone, there are about 2.9 million overseas Vietnamese living and working in other countries and territories. That is also the reason why remittances to Ho Chi Minh City account for a high proportion compared to the whole country.

In 2023, remittances to Ho Chi Minh City reached a record of USD 9.5 billion, accounting for about 60% of the whole country (USD 16 billion), marking the year with the highest rate in recent years. In previous years, this rate was about 50 - 55%.

According to statistics from the State Committee for Overseas Vietnamese, the amount of remittances to Vietnam from 1993 to the end of 2022 reached over USD 190 billion, and if including the whole year of 2023, the cumulative amount reached about USD 206 billion. In the past 29 years, the amount of remittances is almost equal to the amount of disbursed FDI capital. In addition, the amount of USD 5.2 billion in remittances to Ho Chi Minh City is 4.6 times higher than the USD 1.12 billion of FDI capital that the city attracted in the first half of the year.

According to Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam, Ho Chi Minh City branch, remittances are foreign currency transferred by overseas Vietnamese and Vietnamese workers abroad. In essence, remittances are foreign currency from income and savings of Vietnamese people living and working abroad sent to and given to relatives and families in the country and are directly affected by economic, political, labor, employment, income factors. In that sense, if there are no major fluctuations, and based on the results of remittances sent back to the city in the first 6 months of the year reaching the highest level as mentioned above, remittances sent back during the year would continue to maintain the growth rate and can reach an impressive milestone of about USD 10 billion in 2024.

Kylie Nguyen