Statistics from the HCMC branch of the State Bank of Vietnam show that incoming remittances to HCMC totaled US$4 billion in January-November this year. The amount will continue to rise, potentially reaching US$5.2 billion by the end of the year, up some US$200 million over last year.
The southern city has attracted the most remittances in Vietnam, accounting for half of the country’s total remittances.
A report by the BIDV Training and Research Institute indicated that the high influx of remittances has helped stabilize the exchange rate between the U.S. dollar and the Vietnamese dong since the beginning of the year.
Last month, the value of the U.S. dollar at commercial banks returned to the level seen early this year.
Last weekend, the Operation Center at the central bank even reduced the greenback buying price by VND25 to VND23,175. This was the first time the buying price was revised this year, while the selling price was maintained at VND23,807.
According to the BIDV Training and Research Institute, besides the high influx of remittances, the stable exchange rate resulted from the high trade surplus in the 11-month period, at US$9.1 billion, and the high volume of disbursed foreign direct investment, at US$17.62 billion.
In the last month of the year, the exchange rate will continue to be stable or increase by a maximum of 0.5%-0.8% over the beginning of the year. SGT
The State Bank of Vietnam predicts remittance flows to Vietnam to reach some US$13-14 billion this year, much lower than the previous estimate by the World Bank at US$16.7 billion.
It is expected that kieu hoi (overseas remittance) will continue to flow into Vietnam, especially HCM City, which receives 50 percent of total remittances.