Remittances to HCMC surge in first half

On the morning of July 18, Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam - Ho Chi Minh City Branch, stated that remittances to Ho Chi Minh City in the first six months of 2024 reached US$5.178 billion, accounting for 54.7 percent of the total remittances for the entire year of 2023 and increasing by 19.5 percent compared to the same period last year.

Remittances from the Asian region still hold the highest proportion, making up 56.1 percent and increasing by 48.5 percent year-on-year.

According to Mr. Nguyen Duc Lenh, human resources, and the labor market continue to positively impact the amount of remittances from this region in the first six months of 2024.

"In addition to objective factors affecting the amount of remittances such as economic, political, and social factors, employment, and income, the effective use of remittance resources and solutions to attract remittances also play a crucial role," Mr. Nguyen Duc Lenh assessed.

Recently, the Standing Committee of the Ho Chi Minh City Party Committee approved the Proposal on Remittance Policy for Ho Chi Minh City for the 2024-2030 period. One of the proposal's objectives is to avoid administrative intervention in the transfer and receipt of remittances, instead focusing on channeling these resources into local production and business sectors.

Accordingly, Ho Chi Minh City aims to promote direct investment or investments through funds, such as real estate remittance funds, remittance funds supporting small and medium-sized enterprises, and overseas Vietnamese investment funds.

This approach creates opportunities for individuals and organizations receiving remittances to have more options to invest in infrastructure projects such as schools, hospitals, sports facilities, and convention and exhibition centers through the proposed issuance of municipal bonds.

Mr. Nguyen Duc Lenh stated that some solutions to attract remittances and use them effectively in the coming period include continuing to implement favorable foreign exchange policies and improve the investment environment, as well as enhancing the quality of remittance services.

Effective implementation of these measures will not only ensure maximum benefits for beneficiaries and remittance recipients but also senders, their relatives, overseas Vietnamese, and workers abroad.

Additionally, effectively utilizing remittance resources by focusing on channeling these funds into developing production, business, and trade services through financial instruments such as local government bonds, investment funds, or securitization will yield greater results.

According to Mr. Nguyen Duc Lenh, this will be a strategic solution aligned with Ho Chi Minh City's economic development goals: green economy, digital economy; development of high-quality education and healthcare; application of modern technology; integration of tourism services; and investment areas of interest to overseas Vietnamese. It also aligns with the interests of overseas workers in improving living standards and developing production and business activities.