HCM City is likely to receive more than US$7 billion worth of remittances this year, a 7 per cent increase from 2022, according to the State Bank of Viet Nam.

In the first quarter, the amount exceeded $2.1 billion, up 19 per cent year-on-year.

Nguyen Duc Lenh, deputy director of the city branch of the State Bank of Vietnam, said remittances from Asia accounted for a major share since the region managed to achieve higher economic growth than many others.

Remittances from the continent were worth $903 million, up 84 per cent year-on-year and 43 per cent of the total amount.

Remittances from the US, Africa and Oceania decreased because of rising inflation and financial turmoil.

Remittances to the city were growing at 7-10 per cent annually until the past few years before the COVID-19 pandemic and Russia-Ukraine conflict intervened, Lenh said.

Last year, it declined by 6.7 per cent to $6.8 billion, he said.

Experts called on the city to improve its business climate to attract remittances.

Around 5.3 million ethnic Vietnamese live in 130 countries around the world, two million of them from or having connections with the city, according to the State Commission for Overseas Vietnamese Affairs.

Viet Nam remains in the top 10 countries in terms of remittances, according to the World Bank. — VNS