Despite the impact of the Covid-19 outbreak that negatively affects the economies of many countries, the number of remittances flowing to Ho Chi Minh City still increased sharply in the first half of 2021.
According to Nguyen Hoang Minh, Deputy Director in charge of the State Bank of Vietnam’s Ho Chi Minh City branch, in the first half of 2021, the number of remittances flowing to Ho Chi Minh City reached $3.2 billion, up 22.34%. compared with the same period last year. This is considered a positive growth in the difficult context, due to the impact of the Covid-19 epidemic
Mr. Nguyen Hoang Minh also said, the source of remittances mainly focused on the field of production and business. This not only contributes to supporting the city’s economic development but also helps stabilize the foreign currency source in the area in particular and the country in general.
It is forecasted that in 2021, the number of remittances to the city will reach about $6.5 billion, an increase of about 6.5% compared to 2020. Thus, up to this point, the amount of remittances flowing to the city has reached about 50% of the forecasted figure.
The World Bank (WB) estimates that in 2021, remittances to low- and middle-income countries will recover and increase by 5.6% to $470 billion. However, this outlook still depends on the impact of Covid-19 on the global growth outlook and measures to contain the spread of the disease.
In mid-May 2021, the World Bank published an updated report on global remittance data. Accordingly, this organization has adjusted its estimate of remittances to Vietnam in 2020 from $15.7 billion in the report in October 2020 to $17.2 billion. In particular, Vietnam continues to be in the top 10 countries receiving the most remittances in the world.
According to the World Bank, excluding China, the number of remittances received in low- and middle-income countries are larger than the sum of foreign investment and official aid combined. This shows the very important role of remittance resources for development.
In the East Asia -Pacific region alone, Vietnam ranks third, just behind China and the Philippines. Considering the relative size of the economy, the amount of remittances to Vietnam in 2020 is equivalent to 5% of GDP, also in the top 10 in the world.