Of all the nation’s localities, Ho Chi Minh City attracted the largest amount of remittances last year with US$5.3 billion, representing an increase of 12 per cent compared to 2018’s figure.

The final months of the year saw remittances being sent to the southern city reach hundreds of millions of USD, accounting for approximately 30 per cent of the entire year’s remittance total. 

According to statistics released by the Ho Chi Minh City Branch of the State Bank of Vietnam (SBV), 72 per cent of all remittances were invested in production and business activities, while roughly 22 per cent of remittances were poured into the real estate field. The remaining amount was used as a means of providing financial support for the families of Vietnamese expatriates.

Last year saw the exchange rate undergo sudden increases for a period of time under the regulation of SBV. Accordingly, the exchange rate rose but the foreign exchange market did not follow this upward trend.

As a result, the source of foreign currency had met the demands of businesses while the national economy enjoyed positive signs of growth, thanks to the contribution from the remittance sources.

Nguyen Hoang Minh, Deputy Director of the SBV, Ho Chi Minh City Branch, affirmed that overseas remittances serve as an important source of foreign currency.

Indeed, remittances, foreign direct investment, and exports represent abundant supply sources of foreign currency for the country, whilst also contributing to economic development and boosting foreign exchange reserves.