The data was shared by Mr. Nguyen Duc Lenh – Deputy Director of the State Bank of Vietnam (SBV) Ho Chi Minh City Branch. Mr. Lenh said that this increase was the highest in the last 3 years: in the first quarter of 2023, remittances increased by 19.4%; in 2022, it increased by 14.2%. Compared to the total amount of remittances in 2023, remittances to the city in the first quarter of 2024 accounted for 30.3%.
In the context of the world economic situation still facing difficulties and complicated geopolitical conflicts, the remittance result of the first quarter of 2024 continues to reflect the growth trend and positive impacts on socio-economic activities, playing the role of capital for exploitation, use, support and development.
This encouraging result is supported by the following factors:
Firstly, remittances from Asia continued to account for the highest proportion, accounting for 59.1% of the total remittances in the first quarter, with a growth rate of 7.5% compared to the previous quarter and an increase of 86.1% compared to the same period. With a large proportion and high growth rate, remittances from this region have become a major factor driving remittance growth to the City in the first quarter of 2024. Meanwhile, remittances from Europe and Oceania decreased.
Secondly, economic recovery and sustained growth, with a stable political environment in the Asia region and trade, service, tourism activities, together with an expanding and developing labor market, are important factors related to labor, employment and income of overseas Vietnamese and Vietnamese workers abroad, creating conditions for remittances to maintain a stable growth rate from this region in recent years and in the first months of 2024.
Thirdly, remittance payment services are increasingly better: convenient, safe and efficient. In the City, with diverse and convenient payment methods and a widespread network of commercial banks, the service of transferring money quickly, timely, safely and conveniently is provided. People, recipient customers can choose to receive remittances at home; at bank counters or transfer money depending on the customer’s request, commercial banks and remittance companies will make payments and meet the best service needs for people and customers.
The above factors, together with the Government’s and SBV’s policy mechanisms on remittances, foreign exchange and a favorable investment and business environment, are the solid foundations for attracting remittances to the City in recent years and in the first quarter of 2024. Therefore, effectively exploiting and utilizing this resource is important not only for socio-economic development but also has a positive impact on the effectiveness of monetary policy and management of the SBV, promoting the development of remittance payment services.
