HCMC remittance expected at US$5 billion

Oversea remittance to Ho Chi Minh City is expected to reach US$5 billion this year, US$1 billion higher than last year, said deputy director of the State Bank of Vietnam in HCMC Nguyen Hoang Minh.

The forecast number is based on high remittance volume since early this year and annual floods of oversea remittance to Vietnam in the last months, Mr Minh said.

Oversea Vietnamese sent US$2.7 billion to remittance companies and banks in HCMC as of early September, up 6.2 percent over the same period last year.

The remittance has mainly come from the United States, Europe and Asia including ASEAN, the South Korean, China and Japan.

According to Mr. Minh, the remittance from Asia to Vietnam has been on the rise in recent years. At present, it increases 3 percent compared to the same period last year and accounts for 5.2 percent of the total money remitted to Vietnam.

Over 74 percent of the remittance has run into production and trade field and 21.8 percent has come to real estate, up 1 percent from a year ago. The rest four percent has been sent to the remitters’ relatives.

The remittance volume usually rockets up in yearend when remitters send their relatives money for  Tet Holiday celebration . It occupies 30-35 percent of the whole-year number, said leader of a remittance company.

By Hanh Nhung – Translated by Hai Mien

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