|Transaction at a joint stock bank in Hanoi. Photo: Giang Huy/VNExpress
The reason of the decrease is economic difficulties and inflation in other countries as the result of geopolitical factors. Remittances transferred to Ho Chi Minh City increase on average 7-10% per year and account for about 33% of the city's budget revenue.
In addition to foreign direct investment inflows and foreign currency receipts from exports, remittances are important to help ensure supply-demand for foreign currencies, increase national foreign exchange reserves, as well as reduce pressure on USD exchange rate.