Ho Chi Minh City (VNA) – Ho Chi Minh City is redefining the role of remittances in its economy, shifting them from a source of foreign currency to a component of the capital market, thereby channeling funds into innovation and support its ambition of becoming an international financial centre with sustainable growth in the long run.
The municipal People’s Committee has issued a plan to promote financial programmes aimed at attracting remittances into science and technology.
Under the plan, the city will build a transparent and sustainable remittance-based financial ecosystem, tapping resources from overseas Vietnamese not only in finance but also in knowledge and technology. Capital will be directed into priority sectors such as high technology, processing and manufacturing, green energy, and digital transformation.
Two key instruments underpinning the initiative are a remittance-backed science and technology investment fund, and green and technology credit programmes. The fund will have a minimum initial size of 50 billion VND (1.9 million USD), focusing on innovative startups and high-impact technology projects.
Meanwhile, financial products such as green and technology certificates of deposit will be introduced to mobilise long-term capital, forming a basis for preferential credit packages for enterprises investing in technological upgrading and digital transformation.
Under the roadmap, the city targets mobilising at least 500 billion VND from remittances and social resources by 2026, while supporting at least 100 enterprises in accessing preferential credit. By 2027, the figure is expected to reach at least 1 trillion VND, with the number of supported firms doubling, including at least 30% of projects in green technology, energy efficiency, and emissions reduction.
By 2030, Ho Chi Minh City aims to establish a comprehensive financial ecosystem for science and technology, with remittances becoming a sustainable funding channel. The city also plans to develop its Science and Technology Development Fund into a public-private partnership (PPP) model involving overseas Vietnamese, private enterprises, and international organisations to support key technology and green transition projects.
To attract overseas Vietnamese investors, financial products will be designed to ensure transparency, safety, and competitive returns, alongside incentives in interest rates, taxation, and disclosure. Independent supervision, auditing, and professional fund management will also be strengthened to boost investor confidence.
Linked to international financial centre development
The motivation behind the policy lies in the scale and stability of remittance inflows. For years, Ho Chi Minh City has always led the country in remittance receipts. In 2025, Vietnam recorded nearly 18 billion USD in remittances, with the city accounting for the largest share.
According to the State Bank of Vietnam’s Region 2 branch, remittances to the city reached over 10.34 billion USD in 2025, up 8.3% year-on-year, helping stabilise foreign exchange supply and the monetary market amid recent volatility.
However, most remittances have long been channelled into consumption and real estate rather than production or innovation, limiting their broader impact on long-term growth.
Experts say the plan reflects a shift from “attracting funds” to “directing capital,” with an emphasis on efficiency and value creation.
Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam’s Region 2 branch, said the plan concretises orientations to improve remittance efficiency by 2030, focusing on tools such as innovative startup investment funds and green and technology deposit certificates.
“These are practical and feasible solutions, linking capital mobilisation directly to projects in emerging growth sectors,” he told the Vietnam News Agency.
The strategy also aligns with the city’s ambition to become an international financial centre. Amid intensifying regional competition, the ability to mobilise and allocate capital efficiently is seen as a core factor.
Developing investment funds, financial products, and remittance-based capital channels will not only expand medium- and long-term funding sources but also help enhance financial intermediation, and increase the city’s appeal to global investors.
If effectively implemented, remittances could become a key pillar of the capital market, helping shape a growth model driven by technology, innovation, and sustainability./.
