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Remittances to Vietnam's Ho Chi Minh City up 37 pct in 1st half of year

HANOI, July 25 (Xinhua) -- Remittances to southern Vietnam's Ho Chi Minh City surged 37 percent in the first half of 2023, reaching a total of 4.33 billion U.S. dollars, local media reported on Tuesday, citing the State Bank of Vietnam (SBV).

This growth in remittances to the city can be attributed to a stable domestic exchange rate and inflation, which have remained steady despite the high inflation rates experienced by many other countries, local newspaper Vietnam News cited Nguyen Duc Lenh, deputy director of Ho Chi Minh City branch of the SBV.

"The surge in remittances to the city also reflects the confidence of overseas Vietnamese in the stability and economic potential of their home country," Lenh said.

A significant portion of these remittances comes from Asia, accounting for 47 percent of the city's total, up 14.4 percent year-on-year, according to the bank.

To attract additional remittances, the city will continue to provide incentives such as tax and fee exemptions for recipients, as well as enhance the convenience of money transfer methods.

Ho Chi Minh City has set a target of having remittances at a record of 7 billion dollars by the end of 2023, up 7 percent from 2022 and achieving a minimum annual growth rate of 10 percent by 2030.

Around 5.3 million Vietnamese people live in 130 countries and territories worldwide, with 2 million of them having connections to or originating from Ho Chi Minh City, according to the State Commission for Overseas Vietnamese Affairs.

Last year, remittances to Vietnam saw a nearly 5 percent increase to 19 billion dollars, and it is projected to grow by 3.6-4.5 percent this year, the newspaper said.