Remittances to Ho Chi Minh City fell in the first six months of 2022

DNHN - According to the State Bank of Ho Chi Minh City Branch, the total amount of remittances transmitted to the city through credit institutions and economic organizations reached 3.16 billion USD in the first six months of 2022, a 13 per cent decline from the same time in 2021.

In comparison to last year, the amount of remittances transmitted in the first half of 2022 is worth 44.5 per cent more. This source of foreign income contributes significantly to the process of economic recovery and growth following the COVID-19 epidemic in Ho Chi Minh City. This source of funds assists the country's foreign relatives in expanding production and developing tourist, service, and commerce businesses.

However, the overall quantity of remittances remitted to the City in the first six months of 2022 declined by 13% over the same period in the previous year. According to Mr Nguyen Duc Lenh, Deputy Director of the State Bank of Ho Chi Minh City Branch, the reason for the recent decrease in remittances is the Russia-Ukraine conflict, as well as the economic situation in some regions around the world experiencing difficulties and high inflation due to the influence of high oil and food prices. Since then, the income of overseas Vietnamese employees has decreased, as has their capacity to acquire abroad Vietnamese.

As a result, experts believe that shortly, to attract more remittances to Vietnam, the government should implement policies that encourage remittances to invest in the manufacturing sector and fields of human resource development... resulting in positive long-term development effects for the country. In addition, measures that encourage foreign residents and abroad Vietnamese participation in domestic business activity are required.

Furthermore, rules that promote remittance market players, particularly commercial banks, to provide remittance services are required. As more remittances travel through the banking channel, commercial banks can boost the attractiveness of deposits by converting foreign currencies into VND, so bringing additional investment capital to the economy.

PV (t/h)