In 2022, the amount of remittances transferred to Ho Chi Minh City reached about 6.8 billion USD.
Remittance source remains high
In recent times, Ho Chi Minh city has always been the leading locality in the country in terms of remittances received. In 2021, the amount of remittances that Ho Chi Minh City received about 6.5 – 6.6 billion USD, this number in 2022 will reach about 6.8 billion USD.
Banks attracting remittances increased sharply at the end of the year
Dr. Nguyen Tri Hieu – Financial expert assessed that the amount of remittances and other capital sources have created favorable conditions to contribute to the city’s socio-economic recovery and growth. At the same time, it makes an important contribution to promoting the effective use of foreign currency capital sources, as well as ensuring the relationship between supply and demand of foreign currency. This is a positive result in the implementation of solutions to continue attracting foreign currency capital and foreign direct investment into the city. This capital also becomes a golden resource for growth and development, because of the nature and cost of remittances, with distinct advantages compared to other sources of capital.
Looking at the broader picture, the amount of remittances flowing into the city in the past year nearly doubled the amount of foreign investment capital including newly registered capital, adjusted capital and the value of capital contribution and share purchase by foreign investors. Resources from remittances are also not under pressure to pay debts, pay interest or take into account the efficiency of investment committed to countries such as ODA loans…
A notable development is that if before, cash flow was mainly focused on production and business, but during the Covid-19 epidemic, and the current economic recovery period, remittances have been transferred to focus on social security business recovery.
From an economic perspective, the use of remittances for any purpose is effective, stimulating aggregate demand, thereby stimulating production and consumption growth, contributing to economic growth.
Banks attract remittances
According to the State Bank of Ho Chi Minh City, remittances are transferred to the city through the system of commercial banks and economic organizations that directly receive and pay foreign currencies.
Due to the high exchange rate over the past time, banks mobilize foreign currency at 0% interest rate, so more than 70% of customers receive remittances and convert to VND, with about 12% flowing into personal foreign currency accounts, more than 13% in savings.
To prepare for the peak season of remittances at the end of the year, many banks and remittance companies are starting to launch promotional programs to attract remittances.
Recently, Bank for Agriculture and Rural Development (Agribank) in collaboration with Western Union (WU) launched the promotion program “Agribank remittance season, Get money fast – Many gifts”, with more than 19,000 prizes and prizes with a total value up to 1.9 billion VND. Specifically, from December 15, 2022 to the end of January 31, 2023, all customers after completing receiving or transferring money from Western Union at Agribank’s transaction counters nationwide (excluding the service to receive money into the account via E-Moblie Banking – ABMT) will receive a cash gift equivalent to 100,000 VND. This is a program of gratitude and attracting customers to use remittance services at Agribank; At the same time, creates favorable conditions for customers to use the fast, safe and convenient money transfer/receipt service.
At Vietnam Export-Import Commercial Joint Stock Bank (Eximbank) also implemented the program “Remittances to hand – Red envelopes in pocket” from November 16, 2022 to January 16, 2023. Accordingly, individual customers using the service of receiving cash from abroad to be transferred at Eximbank’s transaction points through MoneyGram remittance company will have the opportunity to receive lucky money with the value of 40,000 VND/transaction.
Previously, Vietnam Thuong Tin Commercial Joint Stock Bank (Vietbank) also implemented the preferential program “Hand-to-hand remittance – Receive quality gifts” to be implemented until December 31, 2022. The program is for individual customers to receive remittances or to introduce customers to receive remittances via Western Union and MoneyGram at Vietbank…