Data from the State Bank of Vietnam regional branch showed inflows to the city reached USD 2 billion, down from the same period last year. The downward trend began in late 2025, when fourth quarter remittances slipped to nearly USD 2.4 billion.
Foreign currency transactions at a bank (Photo: DT).
According to Tran Thi Ngoc Lien, deputy director of the central bank’s regional office, the decline reflects combined impacts from global and domestic economic conditions as well as geopolitical factors.
She said slow global recovery and high inflation have increased living costs, directly reducing the disposable income of Vietnamese workers abroad.
Prolonged monetary tightening in major economies has also dampened business activity, indirectly affecting earnings and remittance flows back to Vietnam.
Tensions in the Middle East have further contributed to the slowdown by driving volatility in energy prices and adding to global inflationary pressures.
Lien added that while Vietnam’s macroeconomic environment remains stable, some domestic investment channels have yet to attract remittance inflows. A relatively narrow interest rate gap between the Vietnamese dong and the US dollar has also influenced transfer decisions.
Looking ahead, the central bank said remittances may not recover strongly in the near term, as flows remain dependent on both domestic and international economic developments. Typically, remittances pick up gradually after the early year lull as overseas employment stabilises.
However, ongoing geopolitical uncertainties, particularly in the Middle East and other regions, are expected to continue affecting energy prices, inflation and market sentiment, with knock on effects on income and savings among overseas Vietnamese.
