REMITTANCES TO HO CHI MINH CITY TOP $4BN IN H1 2026

Remittances sent to Ho Chi Minh City topped US$4 billion in the first half of 2026, down nearly 23 percent year on year, despite a modest recovery in the second quarter.

Remittances sent to Ho Chi Minh City exceeded $2.03 billion in the second quarter, a slight increase from the previous quarter. Photo: Quang Dinh / Tuoi Tre

The city received more than $2.03 billion in remittances in the second quarter.

Tran Thi Ngoc Lien, deputy director of State Bank of Vietnam’s region 2 branch, said the second quarter was the first quarter this year to see remittances to Ho Chi Minh City increase from the preceding quarter, although the pace of recovery remained modest.

Remittances from Asia rose 9.8 percent, becoming the main driver of the overall increase.

Meanwhile, remittances from Europe fell 3.3 percent, those from the Americas declined 4.3 percent, and those from Oceania dropped 12.1 percent.

Remittances from Africa rose 15.3 percent, but the region's small share meant it had little impact on the total.

By region, Asia remained the largest source of remittances, with more than $1 billion, accounting for 49.3 percent of the accumulation.

The Americas ranked second with $672.6 million, or 33.1 percent, followed by Oceania with $195.7 million, or 9.6 percent, Europe with $154.1 million, or 7.6 percent, and Africa with $7.6 million, or 0.4 percent.

Asia and the Americas together accounted for more than 82 percent of total remittances sent to Ho Chi Minh City in the second quarter.

According to Lien, slower global economic growth, a strong U.S. dollar, and tighter immigration policies in some countries have affected the employment, income, and ability of overseas Vietnamese to send money home.

In the Americas, particularly the U.S., which occupies a large share of remittances sent to Ho Chi Minh City, inflationary pressures, high living costs, changes in the labor market, and tax policy changes impacting some transactions have also affected the amount of money sent home.

In Vietnam, some investment channels have not been attractive enough to draw remittance inflows.

In addition, foreign-currency deposit interest rates remain at zero percent, prompting some people to keep their money overseas or shift it into other investment assets.

Meanwhile, remittance flows have also been dispersed across various new payment channels, resulting in a relative decline in remittances processed through the banking system.

If the global economy does not face major disruptions and the recovery trend continues, total remittances to Ho Chi Minh City could reach $8.6-8.9 billion in 2026, according to the State Bank of Vietnam’s region 2 branch leadership.

"Although remittances have yet to return to the high levels seen in previous years, the quarterly recovery trend will become more evident in the second half of the year," Lien said.

Source: Tuổi Trẻ News