Ho Chi Minh City to rake in $5.7 bln in remittances

By Le Chi June 23, 2016 | 03:11 am PT

Vietnam’s southern business hub Ho Chi Minh City has received $2.1 billion in overseas remittances so far this year, up three percent from the same period last year, said the central bank on Thursday.

Remittances from Vietnamese overseas have been diverted from real estate, stocks savings to the manufacturing and business sectors, said Nguyen Hoang Minh, deputy head of the city's State Bank of Vietnam branch.

Statistics show that over the last five years, overseas remittances to Ho Chi Minh City alone have increased by an average of 10 – 12 percent per year.

With Ho Chi Minh City’s economy making a faster recovery than other cities, foreign exchange supplies are also expected to grow from rising foreign direct investment and investment in equities, Minh added.

He estimated the city will receive $5.7 billion in overseas remittances this year.

Remittance from Vietnamese overseas remains a key source of funds for the country's economy, equivalent to about 8-10 percent of gross domestic product.

More than half of the capital comes from the United States.