Remittance inflows to the southern largest economic hub of Ho Chi Minh City in the first five months of this year reached US$2 billion, almost double the figure in the first quarter of 2018.
Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam’s HCM City Branch, said most of the remittances was invested in production and business instead of being poured into real estate, securities or savings as earlier.
Remittances often depend on macroeconomic conditions, the situation of overseas workers as well as services attracting remittances.
Since the beginning of this year, the situation has looked good, with stable remittance flowing into the city and gradually increasing.
The macroeconomic condition has also been stable in recent times, and the pressure of an increase in the exchange rate due to market psychology has been eliminated. Therefore, those who receive remittances gradually convert them from foreign currency to VND.
In recent years, remittances to HCM City has increased by an average of 8 to 10% per year.