Remittances to Ho Chi Minh City exceed $9.5 billion USD in 2024

With a favorable business and investment environment, along with specific measures outlined in the city's project on attracting and effectively utilizing remittance resources, the volume of remittances to the city is expected to remain promising in the coming period.

According to official data released by the Ho Chi Minh City branch of the State Bank of Vietnam on January 16, by the end of 2024, the total remittances to the city had reached $9.547 billion, marking a 0.9% increase compared to 2023. Among the sources, Asia and the Americas accounted for the largest shares, comprising 82.2% of total remittances in 2024. Compared to 2023, remittances from Asia increased by 2.5%, from the Americas by 7.4%, and from Oceania by 8.7%.

On the other hand, remittances from Europe and Africa saw declines of 23% and 33%, respectively, compared to 2023.

Assessing the 2024 remittance results, Mr. Nguyễn Đức Lệnh, Deputy Director of the Ho Chi Minh City branch of the State Bank of Vietnam, stated that although the growth rate was not as high as in the past two years, the volume of remittances to the city remained above $9 billion.

Significantly, alongside other foreign currency inflows, remittances in 2024 played a crucial role in the city's socio-economic development. They also contributed to the supply of foreign currency, supporting the effective implementation of foreign exchange monetary policies to stabilize the macroeconomy and foster economic growth.

According to Mr. Lệnh, several external factors, such as global economic conditions, labor markets, incomes, and employment opportunities for overseas Vietnamese and Vietnamese students and workers abroad, as well as the efficiency of remittance payment services provided by commercial banks and remittance companies, continue to directly influence remittance flows in 2024.

Over the past year, fluctuations in exchange rates led to a sharp surge in remittances during the second quarter of 2024, particularly from labor export markets. However, overall, remittance flows remained stable. In addition to remittances from individual overseas Vietnamese, businesses established by Vietnamese expatriates have also increasingly sent funds back to Vietnam for investment purposes.

Statistics from the Ho Chi Minh City People's Committee indicate that approximately 2.8 million out of the 6 million overseas Vietnamese maintain connections with the city. Over the years, Ho Chi Minh City has consistently been the leading recipient of remittances in Vietnam, accounting for around 50% of the country's total annual remittance inflows. This is regarded as a "golden" resource for the city’s development.

As a result, several policies have been implemented to encourage overseas Vietnamese to remit funds to Vietnam, including tax exemptions on foreign currency remittances, policies allowing recipients to hold or deposit foreign currency in financial institutions, and more.

Notably, in 2024, Ho Chi Minh City introduced the "Policy to Optimize the Utilization of Remittance Resources in Ho Chi Minh City from Now Until 2030" project. This initiative aims to mobilize remittance resources to support sustainable socio-economic development.

The project outlines policies to attract and maximize remittance resources, such as directing remittances toward financial markets (stocks, securities, etc.) to establish capital channels linking remittance recipients with those seeking investment opportunities. It also facilitates the transfer of capital from individuals who lack investment opportunities to those who can generate returns.

Additionally, the project seeks to enhance connections between financial institutions and remittance companies to diversify money transfer methods in key markets with large Vietnamese expatriate populations. Expanding services and creating favorable conditions for overseas Vietnamese to remit money home is also a priority. Moreover, the city has proposed issuing bonds with five- or ten-year terms to attract remittances for investment in infrastructure development, including technical, social, and economic projects.

During implementation, Ho Chi Minh City emphasizes a non-interventionist approach, refraining from imposing administrative measures on remittance transactions or setting growth targets for remittance inflows. Instead, the city aims to establish a more favorable legal framework to ensure a seamless and efficient flow of remittances.

Given the steady remittance inflows in 2024 and the policies outlined in this project, experts predict that these factors will continue to attract remittances to Ho Chi Minh City in 2025 and beyond, thereby contributing to the city’s sustainable economic growth.

Source: thoibaotaichinhvietnam