Remittances to HCMC jump 20%

Some 56% came from Asia, where the labor market saw positive developments, Nguyen Duc Lenh, deputy director of the HCMC office of the State Bank of Vietnam, said.

HCMC’s policies to attract remittances have also contributed to the strong growth, he added.

But the city needs to improve its business environment and use the remittances effectively such as investing in government bonds, stocks and funds, he said.

HCMC often accounts for more than half of Vietnam’s annual remittances. Last year it received $9.46 billion, 2.7 times the amount that came in the form of foreign direct investment.

Remittances play a key role in balancing foreign exchange demand and supply.