Nguyen Duc Lenh, deputy director of the HCM City branch of the State Bank of Vietnam (SBV), said remittances from Asia accounted for most of the hike as the region has maintained higher economic growth than many other regions.

Remittances from the continent reached $903 million, up 84 per cent year-on-year and accounted for 43 per cent of the total amount, he said.

Meanwhile, remittances from the US, Africa and Oceania decreased in the period because of rising inflation and financial hurdles, according to Lenh.

On average, remittances to the city grow at 7-10 per cent annually. But this cash flow dropped in the past few years due to the impact of the pandemic and the ongoing Russia-Ukraine crisis.

The city received more than $6.8 billion in remittances last year, down 6.7 per cent over 2021.

Remittances account for 48 per cent of foreign currency deposits at HCM City’s credit institutions, according to Lenh.

According to the World Economic Forum, Viet Nam received $19 billion of remittances last year while India received the most at $100 billion.

More than 5.3 million Vietnamese are living and working in 130 countries and territories around the world. Of that number, two million people are from or have connections to HCM City, according to the State Commission for Overseas Vietnamese Affairs.

Viet Nam remains one of the 10 countries receiving the most remittances in the world, according to a recent report by the World Bank. — VNS