Remittances reach US$3billion in HCMC
The State Bank of Vietnam’s Ho Chi Minh City branch received US$3 billion in remittances as of September this year, ranking Vietnam in the top ten countries for remittances.
Ho Chi Minh City's remittances are expected to reach US$4.8 billion in 2013, an increase of US$700 million from last year. The majority of remittances come mainly from the US and Europe, but this year has seen an increase from China and the Republic of Korea.
The World Bank has forecast Vietnam will receive around US$11 billion in remittances this year to stand ninth in the world. Vietnam's overseas remittances reached US$10 billion last year, rising 10% over the previous year.
Remittances to Vietnam are often sent by overseas Vietnamese and Vietnamese guest workers. Notably, the workers’ remittances have gradually increased thanks to more competitive transfer services.
Higher interests for VND deposits and cheap real estates have also attracted further remittances. The increase of remittances will contribute to improving the country’s general balance of payment, a factor in stabilizing the macro-economy and enhancing investors’ trust.
Vietnam attracted a total of over US$73 billion in remittances between 1993 and 2012, accounting for an average GDP of 6.8%. Since 2004, the country has annually received US$3.65 billion.