Remittances to HCM City have seen a surge of 37 per cent in the first half of 2023, reaching a total of $4.33 billion. — VNA/VNS Photo

Remittances to HCM City have seen a surge of 37 per cent in the first half of 2023, reaching a total of US$4.33 billion, according to the State Bank of Việt Nam (SBV).

The figure is predicted to hit a record of $7 billion by the end of 2023, up 7 per cent from 2022, as reported by the SBV.

Nguyễn Đức Lệnh, deputy director of the city branch of the SBV, said a significant portion of these remittances comes from Asia, accounting for 47 per cent of the city’s total, up 14.4 per cent year-on-year.

This growth in remittances to the city can be attributed to a stable domestic exchange rate and inflation, which have remained steady despite the high inflation rates experienced by many other countries.

“The surge in remittances to the city also reflects the confidence of overseas Vietnamese in the stability and economic potential of their home country,” according to Lệnh.

To attract additional remittances, the city will continue to provide incentives such as tax and fee exemptions for recipients, as well as enhance the convenience of money transfer methods.

It has set a target of achieving a minimum annual growth rate of 10 per cent by 2030.

Việt Nam is ranked among the top 10 countries globally in terms of remittances, according to the World Bank.

Around 5.3 million Vietnamese people live in 130 countries and territories worldwide, with two million of them having connections to or originating from HCM City, according to the State Commission for Overseas Vietnamese Affairs.

Last year, remittances to Việt Nam saw a nearly 5 per cent increase to $19 billion, and it is projected to grow by 3.6-4.5 per cent this year. — VNS