Despite the current growth rate of overseas remittances to Vietnam being lower than last year, the total amount of remittances to the country is projected to rise by 4.4% this year before increasing by between 3.6% and 4.5% in 2023, according to international organisations.
The latest World Bank (WB) Migration and Development Brief and a report by the Global Knowledge Partnership on Migration and Development (KNOMAD) revealed that despite the impact of the COVID-19 pandemic coupled with high inflation hitting several countries, the remittances flows to the nation remain stable compared to previous years.
According to the WB and KNOMAD, the nation ranked eighth in the world and third in the Asia-Pacific region in terms of remittances last year.
Statistics compiled by the State Bank of Vietnam (SBV) branch in Ho Chi Minh City indicate that the amount of remittances flowing to the southern city is forecast to reach roughly US$6.8 billion this year.
Despite enduring a slight decline, the remittances flows to the country overall is expected to surge in the peak season at the end of the year.
Leaders of local banks duly pointed out that the amount of remittances during the Lunar New Year, known locally as Tet, usually inched up between 20% and 25% compared to other months of the year.
Experts also pointed out that there are positive signs ahead for remittance flows to Vietnam this year as the Tet festival, Christmas, and New Year holidays are coming early, with overseas Vietnamese focusing on sending money back to their loved ones on New Year’s Eve to celebrate Tet.
Nguyen Duc Lenh, vice director of the SBV’s Ho Chi Minh branch said remittances to the city during the initial nine months of the year reached US$4.78 billion, equivalent to 68% of the total amount from last year.
Most notably, the amount of remittances transferred in the third quarter of the year increased by 51% compared to the second quarter.
Over recent years, Ho Chi Minh City has always been the leading locality in the country in terms of receiving overseas remittance flows.