Rise in Remittances to Ho Chi Minh City despite Pandemic

HCMC saw overseas remittances rise by 6 percent year-on-year to 4.2 billion USD in the first nine months of this year, despite the economic fallout of the COVID-19 outbreak.

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Remittance inflows to the city are expected to reach $5.5 billion for the full year, showing an increase of 8% compared to the previous year (2019).

Instead of investing in property, stocks or savings, remittances have recently been focused on business activities. The growth rate of remittances has been around 8-10% annually, but this is subject to the global economic situation and the conditions of overseas workers. Despite that, remittances in 2020 have been stable, with the majority coming from the United States and Europe.

The stability of Vietnam’s economy, along with favorable currency exchange rates, has influenced the willingness of remittance recipients to convert and hold Vietnamese dong, thereby contributing to a steady exchange rate.

VNA