Remittances to HCM City have surged 40 per cent in the first nine months of 2023, reaching a total of US$6.6 billion. — VNA/VNS Photo

HCM CITY — Remittances to HCM City have surged 40 per cent in the first nine months of 2023, reaching a total of US$6.6 billion and marking a new record for the January to September period. 

The State Bank of Vietnam (SBV) reported that in the third quarter alone, remittances to the country’s largest city amounted to $2.35 billion. 

The figure is expected to reach a record high of $7 billion by the end of the year, which is a 7 per cent increase from 2022, according to the SBV.

A significant portion of the remittances originate from Asia, accounting for 53 per cent of the city’s total and reflecting a 20 per cent year-on-year rise. 

Nguyễn Đức Lệnh, deputy director of the city branch of the SBV, said the growth can be attributed to the economic and political stability of the region, as well as expanding international economic relations and labour cooperation.

To attract additional remittances, the city will continue to provide incentives such as tax and fee exemptions for recipients, as well as enhance the convenience of money transfer methods, he said.

HCM City has set a target of achieving a minimum annual growth rate of 10 per cent through 2030.

Việt Nam is ranked among the top 10 countries globally in terms of remittances, according to the World Bank. 

Around 5.3 million Vietnamese people reside in 130 countries and territories worldwide, with two million having connections to or originating from the city.

Remittances to Việt Nam exceed $10 billion each year. Last year, remittances to the country saw a nearly 5 per cent increase, amounting to $19 billion. — VNS