A cashier counts cash at a bank. Remittances to HCM City reached $9.46 billion in 2023, nearly three times higher than foreign direct investment (FDI). — VNA/VNS Photo

A seminar aimed at channeling overseas remittances into infrastructure took place in HCM City on April 23, given that remittances to the city reached US$9.46 billion in 2023, nearly three times higher than foreign direct investment (FDI), according to official statistics.

In the first quarter of 2024 alone, the figure set a new record, reaching nearly $2.9 billion, up 35.4% annually, said Vice Chairman of the municipal People’s Committee Bui Xuan Cuong at the event held by the Sai Gon Giai Phong (Liberated Saigon) newspaper.

With a population exceeding 10 million, the megacity faces a constant demand for infrastructure development, spanning transportation networks, schools, hospitals, housing and green spaces, he said.

According to him, the city is actively improving the business environment to create the most favourable conditions for overseas Vietnamese and their relatives to invest.

Dr. Nguyễn Trí Hiếu, Director of the Institute of Research and Development of Global Financial and Real Estate Markets, said Ho Chi Minh City needs to channel remittances into infrastructure through bond issuance.

Regarding local bond issuance to attract remittances, Dr. Tran Du Lich pointed out two mobilisation channels, namely project bonds and infrastructure bonds. Additionally, the Ho Chi Minh City Finance and Investment State Owned Company (HFIC), as a State financial investment company, can establish an investment fund for each major project with various sources of funding, including remittances.

Stressing the importance of channeling remittances through established institutions to ensure safety and transparency, he advocated for a leading role by the State and advised the municipal Committee for Overseas Vietnamese to propose pilot institutions, with HFIC acting as a pioneer. — VNS