Five-month credit growth in HCMC lower than that of country

Deputy Director of the State Bank of Vietnam’s Ho Chi Minh City branch Nguyen Duc Lenh said that credit growth in Ho Chi Minh City in the first 5 months of 2023 is lower than that of the country.

The southern metropolis’s credit in the first 5 months of the year decreased sharply compared to the same period in 2022 and 2021 when it reached 8.8 percent and 4.76 percent respectively. The city's credit growth is estimated to increase by 2.43 percent compared to the end of 2022 whereas that of the country is 3.17 percent, said Mr. Lenh.

Money in Ho Chi Minh City was mainly poured into production and business sectors and groups of industries that are the driving force of economic growth. According to Mr. Nguyen Duc Lenh, the city’s slow economic growth, poor business activities, and the difficulties firms are facing are the main factors of the low credit growth in the first five months in Ho Chi Minh City.

However, it is expected that positive changes from the national economy in general and the economy of Ho Chi Minh City in particular in the second quarter of 2023 will be an important factor for better credit growth in the coming time. Accordingly, credit promotes economic growth and economic growth will facilitate credit expansion.

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