HCMC – Incoming remittances to HCMC amounted to nearly US$5.2 billion in in the first half of this year, up by 19.5% compared to the same period last year, according to Nguyen Duc Lenh, deputy director of the State Bank of Vietnam’s HCMC branch.
In the second quarter, remittances from abroad totaled over US$2.3 billion, down by 19.5% against the first quarter but up by 4.2% versus the same period last year. The majority of these remittances originated from Asian countries, comprising 56.1% of the total and showing a significant 48.5% increase from the previous year.
Lenh credited this growth to favorable conditions in the labor market and related workforce factors, stating, “Political stability, economic recovery, and sustained growth in Asia have positively influenced remittance inflows.”
Incoming remittances are expected to continue their upward trajectory thanks to the amended Land Law, Housing Law, and Real Estate Business Law taking effect early next month.
Experts from MB Securities Company anticipate that these legal changes will encourage overseas Vietnamese to invest in real estate, thereby stimulating new demand in the market and further bolstering remittance inflows.
Vietnam’s GDP grew by 6.42% in the first half of 2024, maintaining robust growth compared to other nations in Asia and globally. The increase in remittances is poised to support the ongoing economic expansion, with HCMC averaging US$6.9 billion in annual remittances over the past five years.
