REMITTANCES TO HCM CITY RISE NEARLY 40% IN Q3

According to the State Bank of Vietnam (SBV)’s Regional Branch 2, remittances transferred to HCM City through credit institutions and economic organisations totalled US$2.835 billion in Q3, an increase of more than $802 million from Q2.

Remittances to HCM City reaches more than $2.83 billion in the third quarter of this year. — VNA/VNS Photo

HCM CITY — Remittances to HCM City reached more than US$2.83 billion in the third quarter of this year, up 39.5 per cent from the previous quarter and 3.6 per cent year-on-year.

This was the first quarter showing positive annual growth this year, helping narrow the decline in remittance inflows over the first nine months.

According to the State Bank of Vietnam (SBV)’s Regional Branch 2, remittances transferred to HCM City through credit institutions and economic organisations totalled $2.835 billion in Q3, an increase of more than $802 million from the previous quarter.

The result marked a recovery in remittance inflows after two consecutive quarters of year-on-year declines, at 16.9 per cent and 27.9 per cent, respectively. Positive growth in Q3 indicates an improvement in money transfers from overseas, although cumulative remittances since the beginning of the year remained below the level recorded in the same period of last year.

By region, Asia remained the largest source of remittances to the city, with nearly $1.677 billion, or 59.1 per cent of the total. The Americas ranked second, with $748.5 million or 26.4 per cent. Remittances from Europe reached $222.1 million, while those from Oceania totalled $173.2 million.

Notably, economic organisations directly receiving and paying out foreign currencies accounted for the largest share, handling more than $2.2 billion, or 77.7 per cent of total remittances in Q3. Remittances through this channel rose 58.5 per cent from the previous quarter. By contrast, remittances transferred through credit institutions reached $631.4 million, down slightly by 1.6 per cent.

Trần Thị Ngọc Liên, deputy director of the SBV Regional Branch 2, said the recovery in remittances to HCM City in Q3 was driven mainly by the Asian market. The Korean won’s appreciation against the US dollar was one factor affecting inflows, she noted. Seasonal factors also contributed to increased demand for transfers to support domestic investment and consumption as the year-end approaches.

Despite the improvement in Q3, remittances to HCM City remained under pressure over the first nine months of the year. Cumulative inflows through September 2026 reached nearly $6.87 billion, down 13.8 per cent year-on-year. However, the Q3 increase significantly narrowed the cumulative decline from 22.8 per cent in the first half of the year.

The SBV Regional Branch 2 forecasts that remittances to HCM City could reach around $9.5-9.8 billion for the whole of this year, below the $10.3 billion recorded last year.

The recovery in remittance inflows in Q3 is expected to continue in the final months of the year, helping meet rising foreign currency demand as production, business activities, imports and holiday and Lunar New Year spending enter their peak period. — VNA/VNS

Source: VNS