Nguyen Hoang Minh, deputy director of the central bank’s HCMC branch, said that this is a positive sign as remittance inflow usually moves up in the fourth quarter before the Lunar New Year holiday. Therefore, this year’s total remittance to the city is expected at US$4.5-4.8 billion, higher than last year’s figure of US$4.1 billion.
Notably, remittance flowing to the real estate market dropped to around 7% compared to around 23% last year. Most remittance was put into operation of family-run businesses.
The remittance volume exchanged into Vietnam dong accounted for 30% of the total, up from levels in previous years at 15-17%. Low deposit rates have prompted people to sell their foreign currencies to get dong.
Most remittance was sent from overseas Vietnamese for their families while that from laborers accounted for around 22%.