A customer receives a remittance at Techcombank. Remittances in HCM City hit US$3.7 billion in the first 10 months of this year. — VNA/VNS Photo Tran Viet

HCM CITY (Biz Hub)— Inward remittances via HCM City banks topped US$3.7 billion in the first 10 months of the year, and are expected to reach $4.8 billion this year, according to the State Bank of Viet Nam's HCM City branch.

Besides traditional sources like the US and EU, this year has seen an increase in inward remittances from China and South Korea, said Nguyen Hoang Minh, deputy director of the branch.

Remittances from these two countries accounted for around 5 per cent of the total overseas remittances this year, compared to 0.2-0.25 per cent in previous years.

The increase reflects the rising number of Vietnamese people going to China and South Korea to work, he said.

Minh said 60 per cent of the overseas money coming in is used to invest in production and trading activities and 21 per cent injected into real estate.

The World Bank predicts inward remittances to Viet Nam will rise by more than 6.5 per cent this year, reaching about $11 billion, ranking it among 10 leading remittance recipients in the world.

Many banks offering money-transfer services in HCM City, including Sacombank and Dong A Bank, have reported higher revenues from this service this year.

For instance, overseas remittances through Dong A Money Transfer Co Ltd, which belongs to the Dong A Bank, went up by 15 per cent in the first 10 months, meeting 95 per cent of the company's target set for this year.

Last year, overseas remittances through the bank reached $1.6 billion.

Sai Gon Thuong Tin Remittance Express Co Ltd, a Sacombank subsidiary, received about $1.2 billion in overseas remittances in the first nine months of the year.

Trinh Hoi Nam, deputy director of Dong A Money Transfer Co Ltd, said remittances to the country often rise sharply in the fourth quarter, accounting for roughly 30-35 per cent of the total figure, as overseas Vietnamese seek to transfer money to their relatives for spending and shopping during year-end holidays.

The economic recovery in developed countries and improved earnings by overseas Vietnamese in the US, Australia and Canada are set to be important factors in boosting inward remittances in the remaining months of the year and early next year, he said.

Minh said overseas remittances to HCM City usually climbed sharply in the last months of the year, and that it's likely they reach $4.7-$4.8 billion this year, compared to $4.1 billion last year. — VNS