Remittances reach about $16 billion in 2024

Remittances sent to the country currently have two main sources - from overseas Vietnamese and Vietnamese people working abroad. Photo cafef.vn

Remittances to Việt Nam in 2024 are estimated to reach about US$16 billion, showing the confidence of overseas Vietnamese in the domestic situation.

Deputy Prime Minister and Minister of Foreign Affairs Bùi Thanh Sơn said this remittance level is equivalent to 2023, when remittances reached a record high after a period of slow growth due to the COVID-19 pandemic.

The amount of remittances transferred to HCM City through credit institutions and economic organisations accounted for about 60 per cent of the total remittances of the whole country, reaching $9.6 billion, an increase of $140 million compared to the previous year.

According to Nguyễn Đức Lệnh, Deputy Director of the State Bank of Vietnam’s (SBV) HCM City branch, of the total remittances sent to the city last year, more than 74 per cent were made through remittance companies, while credit institutions only accounted for about 26 per cent.

Statistics show that remittances from Asia accounted for the highest proportion, reaching nearly 54 per cent of the total, an increase of more than 24 per cent over the previous year. Meanwhile, remittances from Oceania and the Americas increased by 20 per cent and 4.4 per cent, respectively, but remittances from Europe decreased by 19 per cent.

Remittances sent to the country currently have two main sources, from overseas Vietnamese and Vietnamese people working abroad.

In 2024, the US dollar price in the domestic market fluctuated, increasing by more than 5 per cent and sometimes up to 7 per cent. Remittances were considered one of the main sources of foreign currency supply in the market, contributing to ensuring the supply and demand balance of foreign currency.

With the current dollar mobilisation interest rate at zero per cent, people who receive remittances, often sell the remittance to convert dollars to the Vietnamese đồng for savings. This supports monetary policy, exchange rates and the foreign exchange market in Việt Nam.

According to experts, the Tết (Lunar New Year) is the time when the amount of remittances transferred to Việt Nam increases due to the demand of overseas Vietnamese and Vietnamese working abroad wanting to send money back home. Therefore, banks are offering many promotional programmes to attract this remittance flow.