Hanoi (VNA) – Amid a “thirst” for capital of realestate businesses, the strong inflow of remittances is expected to heat up themarket again, held insiders.

According to Nguyen Duc Lenh, Vice Director of the StateBank of Vietnam (SBV)’s Ho Chi Minh City branch, in the first quarter of thisyear, the city received 2.86 billion USD of remittances, up 3.5% over thefourth quarter of 2024 and 35.4% over the same period last year, the highestrise in the recent three years.

Remittances were mostly from Asia with a contribution of59.1%, representing a surge of 81.1 % year on year, he said.

The official noted that last year, the city also saw ayear-on-year rise of 43.3% in remittances to 9.46 billion USD.

Vice Chairman of the municipal People’s Committee Vo VanHoan said that the growth in remittance inflow has contributed tostabilising the exchange rate and foreign currency market and promotingeconomic growth of the city.

According to the State Committee for Overseas VietnameseAffairs, Vietnam received more than 190 billion USD in the past 30 years,nearly equal to the amount of foreign direct investment disbursed in the sameperiod.

Particularly, statistics from the SBV branch in HCM City showed that 22% of the total remittance amount was poured into real estate, while those from the Central Institute for Economic Management showed that about 15-20%of that amount was invested directly in the sector.

The Land Law (revised), scheduled to take effectfrom July 1, 2024, also includes regulations that expand land use rights foroverseas Vietnamese (OV) and Vietnamese citizens residing abroad, is expect to driveremittances to the real estate market.

The law includes the group of the Vietnamese originresiding abroad but without the Vietnamese nationality (also known as overseasVietnamese) as land users, providing them with full rights to land use andhousing like domestic citizens and Vietnamese residing abroad who have theVietnamese nationality.

Meanwhile, people of the Vietnamese origin residing abroadwho are permitted to enter Vietnam are allowed to buy and rent housesassociated with residential land use rights, and receive residential land userights in housing development projects, and inherit the right to use residentialland and other types of land in the same plot of land with houses, the revisedlaw said.

Experts held that with favourable legal conditions,remittance inflows into the country will contribute to making the real estatemarket bustle again./.