Overseas remittances are invested in property in HCM City, including in the new Thu Thiem residential area in HCM City’s District 2. — VNA/VNS Photo Ngoc Hai

Remittances to HCM City from overseas in the first 11 months of 2019 exceed US$4 billion, and are expected to top $5 billion for the year, according to the State Bank of Viet Nam (SBV).

The city had received $5 billion last year too, or more than 30 per cent of the total remittances sent to Viet Nam.

According to figures from the World Bank, Viet Nam expects to receive $16.7 billion this year, making it the ninth largest beneficiary in the world. They had been worth $16 billion last year.

In recent years, Viet Nam has been the third largest beneficiary in Asia and among the top 10 in the world.

Statistics released by the SBV’s HCM City branch show that 72 per cent of overseas remittances is invested in business activities and nearly 22 per cent in real estate with the rest used for family expenses.

Dr Nguyen Duc Do, deputy head of the Institute for Economics – Finance under the Academy of Finance, said remittances by overseas Vietnamese communities have helped boost the real estate market, stabilise the foreign currency market and increase foreign reserves.

In early November, the SBV announced it had foreign reserves of $73 billion, he added.

Remittances to be invested in business

According to the Committee for Overseas Vietnamese of HCM City, last year more than 400,000 overseas Vietnamese returned home through HCM City’s Tan Son Nhat Airport.

A committee spokesman said the overseas Vietnamese community has contributed significantly to the development of the country and HCM City in particular.

It numbers around four million globally and has invested more than VND45 trillion (nearly $2 billion) in 3,000 businesses in Viet Nam.

According to Tran Hoa Phuong, former deputy chairman of the committee, said the city, which is home to a large number of overseas Vietnamese and has many guest workers working abroad, has traditionally attracted large amounts of remittances.

In addition to providing financial support to their families, members of the overseas Vietnamese community also own properties in Viet Nam, he said.

The ratio of overseas remittances to HCM City in total amount to the country has have fallen from 50 per cent in the past to 30 per cent now as financial services are available in smaller centres.

Phuong said to increase the amount of remittances, HCM City must increase the number of guest workers it send abroad, especially skilled ones. — VNS.