A report from the General Statistics Office shows that in the first five months of this year, about 554 real estate businesses declared "bankruptcy", an increase of 30.4% over the same period last year.
The "frozen" real estate market creates a chain reaction. (Photo: VK)
Regarding this issue, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, added that in 2022, more than 1,200 real estate businesses had to close down and stop operating, nearly 10,000 brokers had to quit their jobs or switch to other jobs to make a living.
However, the majority of brokers who have quit recently are new employees who have not been in the profession for a long time. Brokerage companies have to close because they cannot grasp and predict market events and trends, and do not have enough financial capacity and business plans.
Mr. Vu Tien Loc, National Assembly Delegate of Hanoi City, Chairman of Vietnam International Arbitration Center (VIAC), said that one of the reasons for Vietnam's gloomy economy in recent times is that the real estate market and corporate bond market in our country have been frozen, causing a chain reaction, leading to increased debt, stagnant production, and reduced people's income.
According to Mr. Loc, recently, the Government and the Prime Minister have boosted public investment, and revived many key projects that have been shelved and dormant for decades. However, Mr. Loc believes that in order for the real estate market in particular and the Vietnamese economy in general to make a breakthrough in the coming time, the Government needs to have stronger solutions.
In particular, the issue of responsibility of all levels and sectors must be clearly defined as an iron discipline, to further promote public investment disbursement, thereby increasing aggregate demand and creating a spillover effect in the economy.
Legal and administrative problems need to be resolved more quickly so that real estate projects and other production and business projects can be implemented, creating jobs for workers, generating revenue and increasing the ability of businesses to repay debts.
“70% of basic construction investment projects are reported to be facing legal difficulties. This is a warning of serious stagnation,” said Mr. Loc.
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