GSO reported that 37,900 businesses registered or resumed operation during that time, down by 11.2 percent compared with the same period last year. As many as 51,400 businesses withdrew from the market, up 14.5 percent, or 25,700?? businesses left the market a month.   

If you calculate the figures by we economic sector, there were 198 newly established enterprises in the agriculture-forestry-seafood sector, down 37.3 percent compared with the same period last year; 4,700 in industry and construction, down 10.2 percent; and 14,800 in the service sector, up 0.3 percent.

In the real estate sector, 550 units were established, a sharp fall of 62.4 percent.

Meanwhile, the number of real estate firms completing  procedures for dissolution was 235, up 19.9 percent. The number of real estate firms suspending business for a definite time was 1,660, up 57 percent. 

Nevertheless, foreign capital continued to pour into the real estate sector. About $154.3 million worth of FDI was registered in the field in the first two months of the year, which accounted for 6 percent of total FDI in Vietnam. 

In addition, foreign investors made contributions and bought into Vietnamese enterprises, totaling $331.5 million, or 41.6 percent of contributed capital.

Real estate firms, however, are facing many challenges. Decree 08 that amends and supplements some legal documents on the management of the bond market is believed to be a solution to ease the difficulties of the bond market.

Le Hoang Chau, chair of the HCM City Real Estate Association, said real estate firms have to make every effort to restructure enterprises, and restructure investment and products by developing housing market segments that satisfy real housing demand with high liquidity, including affordable housing, and the program on developing 1 million social housing products by 2030.

Chau suggested that real estate firms run sale promotions, offer discounts, and reduce selling prices under the principle "selling at a loss to stop a loss" to obtain cash flow and liquidity. 

He said real estate firms need to struggle to "exist first" and then "seek ways to develop again later".

Dinh Trong Thinh, a respected economist, said that real estate firms should reconsider their resources and sell part of their projects in order to ease the capital burden and have money to implement feasible projects, so as to avoid "dying on a pile of assets".

Hong Khanh