Remittances to HCM City hit nearly 2.5 bln USD in first half of 2018

HCM City (VNA) - Remittance inflows to the southern largest economic hub of Ho Chi Minh City in the first six months of 2018 was estimated to reach 2.45 billion USD, up nearly 20 percent from the same period last year, Sai Gon Giai phong reported.

According to the State Bank of Vietnam’s HCM City branch, the remittance flows were mainly from the US (60 percent) and Europe (19 percent).

As many as 72 percent of the remittances was invested in production and business, while only 22 percent was poured into real estate and 6 percent for personal consumption, the agency said.

The local authority has effectively used the resources for its socio-economic development, it added.

The agency forecast that the remittance to HCM City in 2018 would surge about 20 percent compared to the previous year though the US Federal Reserve increased interest rates for the second time in 2018 to between 1.75 percent and 2 percent per year, and Vietnam is applying interest rates on USD savings at zero percent.

Many commercial banks said those who receive remittances have converted their foreign currency to VND for savings because they found that savings in VND was more profitable than keeping USD.

In recent years, remittances to HCM City has increased by an average of 8 to 10 percent per year.-VNA