In the second quarter of this year alone, remittances totalled over 2.3 billion USD, a fall of 19.5% compared to the previous quarter, but an increase of 4.2% from the same period last year. The capital flow from Asia continued to dominate, comprising 56.1% of the total and up 48.5% year-on-year.

Illustrative Image (Photo: VNA)

Lenh explained that factors regarding human resources and labour market continued to positively impact the amount of remittances to the southern largest economic hub in the six months.

Besides, improvements in payment services from banks and remittance companies contributed to the sharp increase in the remittance flow into the city, he said, adding support policies and mechanisms rolled out by the Government and the central bank have also played a vital role in attracting remittances to the city over the past time.

The influx of remittances into HCM City and Vietnam as a whole is expected to see an upward trend in the time ahead, particularly with the amended Land Law, the amended Housing Law and the amended Law on Real Easte Business to come into force.

Overseas remittances to the city in 2023 hit a six-year record high of around 8.9 billion USD, marking a 35% increase year-on-year.

The municipal People's Committee has approved the 2025-2030 overseas remittance attraction plan, targeting an average annual growth rate of over 10%. The initiative aims to channel these resources primarily into local production and business, focusing on non-administrative interventions in remittance transfer and allocation.