The real estate sector has seen the highest growth in the number of enterprises registering for temporary suspension and dissolution, at 598 enterprises and 686 others, surging 36.8% and 39.4%, respectively, against the 2018 figures.
Two apartment buildings in HCMC. The real estate sector has seen the highest growth in the number of enterprises registering for temporary suspension and dissolution
Meanwhile, the property market is forecast to have shown no positive signs in 2020, VietnamPlus news site reported.
Many experts said that scores of small firms that have entered the real estate market have been dissolved due to the difficulty in accessing loans.
Many others have incurred huge losses, indicating that there is a problem with the operations of many real estate firms.
However, lawyer Tran Minh Cuong, a member of the HCMC Lawyer Association, said that this is not a bad sign, explaining that a decline in the number of real estate firms may make life easier for State management agencies to control firms’ business operations.
In fact, enterprises with strong financial capacity and wide experience still exist and are gaining ground in the local market, he said.
Some experts said that the suspension and dissolution facing many real estate firms should not be blamed on administrative procedures or tightened credit for the property sector.
Doing business on the market, all firms must comply with common regulations. The key to success for the real estate businesses is that they should actively grasp opportunities, choose the correct business methods and build their own brands. SGT
Ken Research has released the report titled “Vietnam Real Estate Market Outlook to 2025", providing a comprehensive analysis of the real estate space within Vietnam.
Real estate remained the second biggest magnet for FDI in 2019, following processing – manufacturing, as it attracted $3.88 billion FDI, equivalent to 10.2 percent of the total registered.