Transfers to Ho Chi Minh City reached over $9.5 billion in 2023

Despite the global economic downturn, inflation, and armed conflicts impacting economic growth and related remittance factors, the amount of remittance flowing into Ho Chi Minh City, Vietnam in 2023 still maintained a strong growth rate, reaching 9.46 billion USD.

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Mr. Nguyen Duc Lenh – Deputy Director of the State Bank of Vietnam (SBV) Ho Chi Minh City branch commented that this is an impressive result, reflected in the following four main aspects:

Firstly, the amount of remittances sent to Ho Chi Minh City in 2023 reached $9.46 billion, an increase of 43.3% compared to 2022, the highest growth rate in the past 10 years and maintaining a high proportion of total remittances in the country above 50%.

Secondly, if we compare the scale of remittances with the total foreign direct investment in Ho Chi Minh City in 2023, the amount of remittances is 2.7 times higher and accounts for about 14% of the city’s GRDP.

Thirdly, remittances to the city in 2023 are closely associated with the trend of labor growth and working abroad. Analyzing remittances by region, the highest proportion of remittances comes from the Asian region, accounting for 51% and a growth rate of 144% compared to the end of 2022. Meanwhile, the amount of remittances from the African and American regions has decreased. Particularly, remittances from the American region account for a high proportion, after the Asian region (29%), but the value of remittances received has decreased by 10%. The labor market, services, and tourism have reopened and developed after the pandemic in Asian countries, along with a stable economic and political environment, are positive factors affecting remittances from this region in 2023 and in the future.

Fourthly, stable macroeconomics and a favorable investment and business environment, along with the government’s policies and the State Bank’s policies on attracting remittances; cultural, tourism, and sports activities; connectivity and information dissemination about the country’s achievements, the development of the country…. have become the foundation and driving force for the growth of remittances in recent times. In addition, the network system and remittance payment services of commercial banks and businesses that directly pay remittances have developed, being convenient, fast, efficient, and safe, also contribute significantly to attracting remittances to the country in general and in Ho Chi Minh City in particular in 2023.

Han Dong

SOURCEvietstock
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