Ho Chi Minh City receives $4 billion in remittances in H1

Ho Chi Minh City receives $4 billion in remittances in H1

Ho Chi Minh City recorded $4.04 billion in remittances in the first six months of 2026, down 22.8 per cent from a year ago and 21 per cent from the second half of 2025, according to the State Bank of Vietnam.

Asia and the Americas remained the largest source of remittances to Ho Chi Minh City, accounting for over 81 per cent of the total. Asia took the lead with $1.92 billion, making up 47.5 per cent. The Americas came closely behind with $1.38 billion, or 34.1 per cent. Oceania ranked third with $418.3 million, or 10.4 per cent.

In the second quarter, $2.03 billion in remittances arrived in the city, up 1.4 per cent from the previous quarter but down 27.9 per cent from the same period last year. This was the first quarter of the year to record growth compared to the previous quarter, although the pace of recovery remained modest.

During this quarter, remittances from Asia were the highest, with approximately $1 billion, representing 49.3 per cent of the total sum. The Americas secured the second place with $672.6 million, or 33.1 per cent. It was followed by Oceania ($195.7 million), the EU ($154.1 million), and Africa ($7.6 million).

Compared to the first quarter, remittances from Asia increased by 9.8 per cent, becoming the main driver of overall remittance growth. Meanwhile, remittances from the EU fell by 3.3 per cent, those from the Americas declined by 4.3 per cent, and those from Oceania dropped by 12.1 per cent. Africa alone saw a 15.3 per cent increase, but its small share meant it had a limited impact on overall inflows.

Tran Thi Ngoc Lien, deputy director of the SBV's Region 2 Branch, said, “Inward remittances were influenced by several factors, including the global economic slowdown, the continued strength of the US dollar, and tighter immigration policies in several countries. These developments have affected the employment, income, and remittance-sending capacity of overseas Vietnamese.”

The Americas, particularly the United States, are facing inflationary pressures, high living costs, and changes in labour market, as well as tax policies. These factors also affect money transfer transactions, including remittances to Ho Chi Minh City.

“In Vietnam, some investment channels are not attractive enough to lure remittances. With interest rates on foreign currency deposits at zero, some overseas Vietnamese are choosing to keep their money abroad or shift it to other investment assets. Meanwhile, remittances are being transferred through many new payment channels, leading to a relative decrease in remittances through the banking system,” Lien said.

According to the forecast of the SBV's Region 2 Branch, remittances are expected to reach between $8.6 and $8.9 billion in 2026 if the global economy does not experience major disruptions and the recovery trend maintains in the second half.

VIR