Mr. Vu Cuong Quyet - General Director of Dat Xanh Real Estate in the North said that this year his company is "lucky" because there are still projects to distribute. However, the revenue cannot be equal to last year. Currently, the company is having to worry about monthly salaries for 400 employees.
With this situation, this year businesses are very worried about Tet bonuses.
“ We still have to borrow from banks at high interest rates. Last year, although the real estate market was still difficult, the company still had savings, but this year it is gone. We have shared this with our employees in advance so they can understand, ” said Mr. Quyet.
Mr. Pham Duc Toan - General Director of EZ Real Estate Investment and Development Joint Stock Company said that the Tet bonus for real estate employees is high or low depending on business turnover. This year, in general, real estate businesses have seen a decrease in sales.
Tet bonuses in the real estate industry are expected to be low.
“ This year, businesses are facing more difficulties than last year. For the past two years, there have been no bonuses in the form of houses or cars in the real estate industry. Many real estate businesses have managed to maintain the 13th month salary bonus, which is a great effort, ” said Mr. Toan.
According to Mr. Toan, after 20 years in business, he feels that "there has never been a more difficult year than this year". The real estate market is forecast to continue to be difficult until 2024. There are distribution units, even investors, that have to reduce the number of employees due to financial pressure. There are businesses that are affected by double impacts when bank interest rates increase and bond maturity.
According to Mr. Toan, many businesses are reopening to regain customer trust, but certainly not to give employees Tet bonuses.
" Even though my company is facing difficulties, we still have to try to take care of our employees. We don't have much, but we still try to do the most basic thing, " Mr. Toan shared.
Many real estate businesses are struggling to pay Tet bonuses to employees. (Illustration photo)
A real estate business leader in Hanoi shared that, in contrast to the golden age of the real estate market in 2016-2017, when Tet was always full of cash, businesses have had almost no Tet for the past 2 years. From mid-2022 until now, businesses have had no products to sell but still have to spend a large budget to maintain the system.
Even the amount of goods sold from the beginning of 2022 until now has not received brokerage fees because investors are stuck in cash flow, leading to a thirst for capital spreading from investors to distribution companies and contractors also lacking money at the end of the year.
" Last year there was still cash flow in reserve, but this year there is no cash flow. The company has no bonuses and is trying to maintain employee salaries. The real estate market is sluggish, so Tet season has become a big concern ," he said.
Mr. Nguyen Anh Que, Executive Committee Member of the Vietnam Real Estate Association, said that at real estate trading floors, about 80% of brokers have quit their jobs, 30% of floors have closed, and about 40% are operating at a low level. The remaining floors are still operating but cannot be as good as the previous period.
“ Businesses have much lower revenue and profits this year, many even have heavy losses. Every year, there is a 13th month salary, additional bonuses and gifts. But this year, there may still be a 13th month salary at a limited level, but the accompanying gifts and bonuses will probably be very little or non-existent, ” said Mr. Que.
Mr. Nguyen Anh Que also said that Tet 2023 "is casting a gloomy shadow on the real estate market in particular and the economy in general. Hopefully next year the market will be more vibrant for a happier Tet."
Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS) said that in 2023, the market will witness the "departure" of a series of real estate businesses. On average, about 107 real estate businesses leave the market each month. Particularly for real estate trading floors, 20% of floors continue to face the risk of dissolution and bankruptcy; 40% of floors are struggling to survive, only operating with a few core staff.
Therefore, according to Mr. Dinh, this year's Tet bonus is a difficult issue for many real estate businesses. The Tet bonus rate is large or "quite a bit" but it will not be popular.
According to the leader of the Real Estate Brokerage Association, in this context, businesses really need the sharing of staff. When the project is resolved, cash flow returns, and profits are available, it will be the basis for deducting to pay benefits to employees.
Assessing the market's ability to recover, Mr. Dinh also said that there have been signs of recovery. When macro policies are absorbed, the recovery will gradually become more positive.
However, he still has certain concerns as many bottlenecks have not been resolved. Some real estate laws have been issued but have not yet taken effect, and some have not yet been passed.
Ngoc Vy
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