Real estate businesses struggling amid pandemic

The severe economic blows from COVID-19 have forced scores of businesses to suspend operations and even file for bankruptcy, with real estate companies among the hardest hit.

Real estate businesses struggling amid pandemic hinh anh 1

As of the end of August, nearly 34,300 enterprises had temporarily suspended operations, a surge of 70.8 percent against the same period last year. Of these, 923 were in real estate, up a whopping 136.1 percent - the highest rate among Vietnam’s 17 sectors.

A total of 10,353 firms have closed down since January. This includes 620 realtors, with the real estate sector seeing the fifth-highest number of bankruptcies, after wholesaling, retailing, and auto and motorcycle maintenance and repair; manufacturing and processing; construction; and science, technology, marketing, and design services.

Meanwhile, the number of newly-established firms in real estate shrank 19.6 percent year-on-year in the first eight months.

Realtors had already struggled in 2018 and 2019, and their difficulties have become more severe in 2020 with COVID-19 outbreaks, Chairman of the HCM City Real Estate Association (HoREA) Le Hoang Chau said.

 

Many companies have seen revenue and profit fall sharply, he noted, with some becoming illiquid and deep in debt because of high levels of inventory.

The market has faced a host of difficulties since mid-2018 as a result of tighter cash flow control, said Nguyen Van Dinh, Vice Chairman of the Vietnam National Real Estate Association (VNREA). The challenges became more evident towards the end of last year, as capital flows into the sector were down, with fewer new projects.

He added that the sector continued experiencing hard times this year due to lengthy delays in granting permits to new projects as well as tightened credit.

The Vietnam Association of Realtors (VARS) has suggested local real estate companies shift their focus to low-cost housing and social housing projects, which remain in high demand./.VNS

Real estate firms offer sky-high profit rates to attract investors

Real estate firms offer sky-high profit rates to attract investors

Investors have been invited to contribute capital to real estate projects and enjoy a profit of 36 percent per annum, and have also been persuaded to buy corporate bonds at a high interest rate of 18 percent per annum.

 
 

Other News

.
Inconsistencies deter power plan feasibility
Inconsistencies deter power plan feasibility
BUSINESSicon  14/10/2021 

Power source development in recent years has been at odds with load distribution, and many coal-fired power plants expected to operate in the last five years are behind schedule.

Vietnam vows to stamp out unregulated fishing
Vietnam vows to stamp out unregulated fishing
BUSINESSicon  14/10/2021 

The Vietnamese government is doing its utmost to prevent illegal, unreported, and unregulated fishing practices, helped along by moves in Europe to remove warnings on the country’s activities.

Gigantic lifeline en route for essential businesses
Gigantic lifeline en route for essential businesses
BUSINESSicon  14/10/2021 

In a bid to help the country recover after the economy grew at a very low level in the third quarter, a huge financial support package is to be offered to enterprises whose performance is a backbone of economic growth.

Bank loans rise despite pandemic
Bank loans rise despite pandemic
BUSINESSicon  14/10/2021 

Despite being strongly affected by the COVID-19 pandemic, bank loans in the first nine months of this year kept rising compared to the same period last year, deputy governor of the State Bank of Vietnam (SBV) Dao Minh Tu said.

GDP growth target is hard to reach: Minister of Planning and Investment
GDP growth target is hard to reach: Minister of Planning and Investment
BUSINESSicon  14/10/2021 

Minister of Planning and Investment (MPI) Nguyen Chi Dung calculated economic growth in the whole of 2021 at between 3 and 3.5 per cent, but also said such a target will be difficult to reach.

Positive signs for year-end car shopping
Positive signs for year-end car shopping
BUSINESSicon  14/10/2021 

Car sales in Vietnam increased by 52 percent last month after five consecutive months of decline, showing positive signs for the car market at the end of the year.

WB lowers Vietnam’s GDP growth forecast to 2-2.5 percent this year
WB lowers Vietnam’s GDP growth forecast to 2-2.5 percent this year
BUSINESSicon  13/10/2021 

Vietnam’s GDP growth forecast for this year has been lowered to 2-2.5 percent, according to the World Bank's October 2021 Vietnam Macro Monitoring.

Vietnam’s rice price surges, surpasses that of Thailand
Vietnam’s rice price surges, surpasses that of Thailand
BUSINESSicon  13/10/2021 

The export price of Vietnam’s 5% broken rice has soared recently, surpassing that of Thailand and far outstripping the rice prices of India and Pakistan, according to the Vietnam Food Association.

Local authorities urged to set green corridor for domestic flights
Local authorities urged to set green corridor for domestic flights
FEATUREicon  13/10/2021 

The first commercial flights have been provided in the new normal period. However, the application of different regulations in different localities have caused problems.

Vietnamese capable of making high tech products
Vietnamese capable of making high tech products
FEATUREicon  14/10/2021 

Many Vietnamese enterprises are diligently researching and developing Make in Vietnam products with high technology content.

Commodity exports via e-commerce promoted during COVID-19 pandemic
Commodity exports via e-commerce promoted during COVID-19 pandemic
BUSINESSicon  13/10/2021 

Representatives from State management bodies and companies speak about the advantages and challenges Vietnamese businesses face in e-commerce, especially commodity exports.

VIETNAM BUSINESS NEWS OCTOBER 13
VIETNAM BUSINESS NEWS OCTOBER 13
BUSINESSicon  13/10/2021 

Vietnam grasps opportunities to expand agricultural export market

Vietnam to further develop biotechnology industry by 2030
Vietnam to further develop biotechnology industry by 2030
BUSINESSicon  14/10/2021 

The Government has approved a plan to further develop the biotechnology industry in Vietnam, levelling it up to that of advanced industrial countries by 2030. 

Tax cut proposed to stabilise domestic petrol price
Tax cut proposed to stabilise domestic petrol price
BUSINESSicon  13/10/2021 

Calls have been made for tax cuts to stabilise domestic fuel prices as global oil prices see continual increases.

PM says Gov't to stand with businesses during pandemic
PM says Gov't to stand with businesses during pandemic
BUSINESSicon  13/10/2021 

Prime Minister Pham Minh Chinh congratulated and sent his best regards to all Vietnamese entrepreneurs to mark Vietnam Entrepreneurs' Day (October 13) during a meeting in Hanoi yesterday. 

SOE equitisation slow this year due to COVID-19
SOE equitisation slow this year due to COVID-19
BUSINESSicon  13/10/2021 

The outbreak of COVID-19 in many localities has delayed the equitisation of State-owned enterprises (SOEs).

Unemployment, underemployment unprecedentedly high
Unemployment, underemployment unprecedentedly high
BUSINESSicon  13/10/2021 

The number of employed people in Q3/2021 fell sharply compared to the previous quarter and the same period of last year, while unemployment and underemployment rates increased to an all-time high.

Intel, Samsung eye fully running HCM City plants in late November
Intel, Samsung eye fully running HCM City plants in late November
BUSINESSicon  12/10/2021 

Intel Corp. and Samsung Electronics Co. are both aiming to resume full operations of their HCM City plants by the end of November.

FDI inflow into Vietnam still on upturn trend
FDI inflow into Vietnam still on upturn trend
BUSINESSicon  12/10/2021 

Despite impacts of the COVID-19 pandemic, the inflow of foreign direct investment (FDI) into Vietnam still rose 4.4 percent year on year in the first nine months of 2021 to 22.15 billion USD.

To have free trade zone, Hai Phong needs special mechanism
To have free trade zone, Hai Phong needs special mechanism
BUSINESSicon  12/10/2021 

Some National Assembly Deputies expressed their concerns about the establishment of a free trade zone (FTZ) in Hai Phong at a National Assembly Standing Committee session on October 11.

 
 
 
Leave your comment on an article

OR QUICK LOGIN