Tran Thi Ngoc Lien, Deputy Director of the State Bank of Vietnam’s Region 2 Branch covering Ho Chi Minh City and Dong Nai Province, said on April 18 that remittances transferred through credit institutions and economic organizations in Ho Chi Minh City reached over US$2 billion in the first quarter of 2026. This represents a decrease of 15.6 percent compared to the fourth quarter of 2025 and a 16.9 percent drop year-on-year.
The fall is driven by a confluence of factors. Globally, subdued growth, stubborn inflation, and rising costs of living have cut into the incomes of overseas Vietnamese. Meanwhile, extended monetary tightening in major economies has cooled business activity, indirectly curbing remittance inflows to Vietnam.
Domestically, although macroeconomic conditions remain stable, some investment channels have yet to become sufficiently attractive. Meanwhile, the relatively narrow interest rate gap between the Vietnamese dong and the US dollar has also influenced decisions on sending money back home. Seasonal dynamics play a part, as remittance inflows generally slow in the first quarter after year-end highs, before rising again later in the year.
The downward trend is not limited to Ho Chi Minh City. Data from the State Bank’s Region 2 Branch also show that in Dong Nai Province, remittances through credit institutions reached over US$36.4 million as of March 31, 2026, down 15.7 percent compared to the previous quarter.
