Overseas remittances flowing into HCM City touched US$3 billion in the first eight months of 2017, a 5 per cent increase compared to the same period last year.

Sharing the data, the State Bank of Viet Nam’s HCM City branch said that most of the remittances came from the US and Europe.

The rise is attributed to strong recovery of the city’s economy, and remittances are forecast to continue growing in the following months, at a higher rate compared to the same period in 2016.

From January to August, the total capital mobilised in HCM City is estimated at VND1.89 quadrillion ($84 billion), a year-on-year increase of 12.6 per cent. The total outstanding loans in the period amounted to VND1.63 quadrillion, up 19.8 per cent against the corresponding period last year. Credits provided by commercial banks reached VND887 trillion, accounting for 54.28 per cent of the city’s total lending.

Nguyen Hoang Minh, deputy director of the SBV’s HCM City branch, said that remittances and credit in the southern city are mostly invested in production and business activities. Lending in these areas makes up 70 to 80 per cent of the total outstanding loans.

The high credit growth shows that the central bank’s policies aimed at stimulating lending and borrowing are working and helping boost the city’s economic development, Minh said.

In 2016, overseas remittances to HCM City reached $5 billion, accounting for 57-58 per cent of the national figure, a year-on-year increase of 11 per cent. — VNS