Remittances to HCM City surge by 35% in 2023

HCM City is expected to receive $9 billion in remittances in 2023, a 35 per cent surge from the previous year. — VNS Photo Bồ Xuân Hiệp

HCM CITY — HCM City is expected to receive US$9 billion in remittances in 2023, up 35 per from the previous year, according to a city official.

Speaking at a meeting in Hà Nội on Thursday, Võ Văn Hoan, deputy chairman of the People’s Committee, said remittances to the city have nearly tripled the amount of foreign investment (FDI) it has attracted this year ($3.4 billion).

The global economy and Việt Nam continue to face difficulties post pandemic, however, once travel restrictions eased, the number of Vietnamese workers abroad increased, contributing to the surge in remittances.

This increase is also attributed to the city’s activities promoting trade, attracting investment, and regular meetings with the international business community.

These financial resources not only serve its economic growth but contribute to its expansion as a financial centre, according to Hoan.

Nguyễn Đức Lệnh, deputy director of the State Bank of Vietnam’s HCM City branch, said he expects remittances to increase by 20 per cent in 2024 compared to this year.

The city will continue to provide incentives such as tax and fee exemptions for recipients, as well as improve the convenience of money transfer methods, in order to attract more remittances.

Việt Nam is ranked among the top 10 countries globally in terms of remittances, with around 5.3 million Vietnamese people residing in 130 countries and territories worldwide. 

Last year, remittances to the country increased by nearly 5 per cent to a total of $19 billion. — VNS