Saigon rakes in $3.3 bln in overseas remittances from Jan-Sep

Foreign remittances flowing into Saigon increased by 6 percent on-year during the first nine months of 2017 to $3.3 billion, according to the central bank.

The HCMC branch of the State Bank of Vietnam said remittances to the southern metropolis had continued to hit new highs with most of the money coming from Europe and the U.S.

Each month Vietnamese people residing abroad sent home from $375-$400 million, according to a branch representative.

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

“More remittances are being invested in business operations rather than in property or savings as before,” he added.

Vietnam recorded $13.4 billion in overseas remittances last year, and was ranked ninth by the World Bank among the world’s biggest beneficiaries of remittances. It was also third in Asia-Pacific after China and the Philippines.

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

But some experts have warned that, with Federal Reserve officials in the U.S. tipped to raise interest rates and the tighter border controls imposed by the Trump administration, overseas Vietnamese in the U.S. may have fewer incentives to send money home.