Ho Chi Minh City Business Association (HUBA) has just sent an October report to the Ho Chi Minh City People's Committee on the "health" of its member businesses.
In the report, Mr. Nguyen Ngoc Hoa, Chairman of HUBA, said that the biggest difficulties facing businesses today are falling orders, difficult consumer markets, and excess inventory, affecting business plans. The combination of weak demand, high inflation, and debt burdens has created real difficulties for some businesses.
Industrial enterprises in some sectors (construction materials, garment, leather shoes, wood...) are still in a state of shortage of orders; enterprises renting land in industrial parks every year are not granted land certificates to borrow capital for business; facilities built on other types of land cannot complete completion procedures, are not granted fire prevention and fighting permits... and are forced to stop operations.
The difficult real estate market has caused many projects to stagnate. Photo: Tan Thanh
Commercial enterprises are also facing difficulties due to weak market demand and consumption habits through e-commerce that have disrupted traditional business channels...
In particular, most construction and real estate enterprises are facing difficulties due to heavy debts that cannot be recovered and the inability to repay bonds. The freezing of the real estate market has caused construction enterprises to have no orders and their business to stagnate. Due to lack of business capital, accessing public investment projects is difficult, resulting in a series of small construction and real estate units going bankrupt.
Faced with the above difficulties, the business community hopes that the government needs to improve and innovate more to support business, such as: supporting credit capital, reducing interest rates; promoting investment and consumption stimulus; reducing taxes, fees, social insurance, and union fees; limiting the criminalization of civil and economic relations; developing transport infrastructure and other utilities; and promptly resolving reasonable recommendations from businesses.
The Chairman of HUBA further analyzed that the difficulties of real estate have severely impacted most economic sectors, especially directly related sectors such as construction, construction materials, real estate brokerage... and significantly reduced budget revenue in the fields of public land auction, public land lease, land use right transfer tax and real estate transfer tax.
Therefore, the recovery of the real estate market is an urgent need, helping the market develop healthily, stabilize the socio-economy and increase state budget revenue. "The business community of Ho Chi Minh City recommends that the City have effective policies to support the recovery and development of the real estate market in the coming time" - the report stated.
Source: https://nld.com.vn/kinh-te/doanh-nghiep-xay-dung-bat-dong-san-nho-o-tp-hcm-dang-rat-kho-khan-20231031115922415.htm
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