HCMC – HCMC saw January-May credit expanding a slight 2.43% compared to late last year, below the nation’s average of 3.17%, according to the HCMC branch of the State Bank of Vietnam.

After experiencing a significant improvement of 1.37% in March, credit expansion lost momentum in the subsequent months, with a slight increase of 0.46% in April and 0.7% in May.

In comparison to December 2022, outstanding loans in Vietnamese dong rose by 2.21%, while loans in foreign currency increased by 6.46%.

The manufacturing and priority sectors were the largest recipients of loans during the first five months of the year.

Credit growth nationwide last year was much higher, at 8.8%, between January and May, according to the report.

The slowdown in credit expansion was attributed to tough business conditions, mostly induced by the global economic downturn. However, there are expectations for improvements in the remaining months of the year due to anticipated macroeconomic stability and controlled inflation.

According to the General Statistics Office, the average consumer price index for the first five months of this year increased by 3.55% compared to the same period last year.