Credit increased in line with economic recovery in the opening months of 2022 and focused on production and business, ensuring capital for development, according to State Bank of Vietnam Governor Nguyen Thi Hong. However, it is necessary to be cautious over inflationary risks and bad debt risks. As of May 31, credit had increased 8.04 per cent since the end of 2021 and 16.94 per cent over the same period of 2021.
Commodity prices have continually increased in the first quarter of the year. Normally, after the Tet holiday early in the year, purchasing power is weak and businesses cut prices to stimulate demand, but this year prices are increasing due to rising gasoline prices. Businesses are trying to reduce profits and intermediary stages to stabilize sale prices.
Imports of scrap iron and steel reached more than 4.1 million tons in the first seven months of this year, worth nearly $1.8 billion, up 32.5 per cent in volume and 2.2-fold in turnover compared to the same period of 2020.
