Citing data from the Department of Business Registration (Ministry of Planning and Investment), the Ministry of Construction said that the number of newly established real estate enterprises and the number of enterprises returning to operation in 2022 increased compared to the same period in 2021.
Of which, the number of newly established real estate enterprises and the number of enterprises returning to operation in 2022 increased compared to the same period in 2021. At the same time, 2,081 enterprises returned to operation, an increase of about 56.7%. However, the number of real estate enterprises declaring bankruptcy and dissolution also increased by about 38.7% compared to the same period last year.
The number of real estate businesses declaring bankruptcy and dissolution also increased by about 38.7% compared to the same period last year. (Photo: TN)
Also in the report of the Ministry of Construction, not only real estate developers, but also brokerage businesses and trading floors are facing difficulties, especially in the third quarter of 2022 to the end of the year, the operations of trading floors show signs of more difficulties, the volume of real estate transactions has decreased compared to the beginning of the year, leading to a decrease in the scale of real estate trading floors, the number of real estate brokers has also decreased.
According to the Ministry of Construction, 2022 is still the year when businesses operating in the real estate business sector face many challenges and have to change their business and management plans (such as debt restructuring, business restructuring, downsizing investment and production scale, streamlining the apparatus, reducing the workforce; stopping and postponing investment and construction activities of some projects.
Many investors have stopped implementing new projects; stopped issuing shares to increase capital; stopped IPOs; some corporations have reduced their workforce by up to 50% to cope with the current difficult conditions. The Ministry of Construction emphasized that the operations of real estate businesses are facing 5 main difficulties.
Firstly, businesses are facing difficulties in accessing credit loans, issuing bonds and mobilizing capital from customers, leading to many businesses lacking capital having to delay or temporarily suspend project implementation.
Second, loan interest rates, foreign exchange rates, gasoline prices, and construction material prices increase, leading to increased costs for businesses, affecting their production and business activities.
Many projects are suspended due to lack of capital. (Photo: CP)
Third, there is a lack of cash flow to pay suppliers and workers' salaries because investors do not have the resources to pay and fulfill tax obligations.
Fourth, real estate buyers have difficulty accessing loans from credit institutions, indirectly affecting the liquidity of real estate products and projects, leading to businesses being unable to sell products to recover capital and reinvest.
Finally, businesses have difficulty in issuing bonds and raising capital, leading to the risk that many businesses will not be able to pay and repay debts on time.
To ensure that the real estate market continues to develop stably, safely and healthily in the coming time, the Ministry of Construction proposes that the Ministry of Finance increase the Ministries, branches and localities according to their assigned functions and tasks to promote the work of announcing, publicizing and making transparent information, especially promptly propagating, disseminating and publicly announcing new policies, regulations and solutions of the State on credit, bonds, stocks and the real estate market situation.
At the same time, control capital mobilization activities of real estate businesses on the stock market to avoid speculation, manipulation, and price inflation.
Regarding capital sources, the Ministry of Construction proposed that the State Bank consider a suitable credit ceiling management plan to support the economy ; direct and guide credit institutions to create conditions for businesses, home buyers and investors to access credit sources.
In addition, the State Bank is responsible for guiding and directing credit institutions to provide loans and disburse funds quickly to enterprises and real estate projects that meet the conditions in accordance with the law; giving priority to lending to social housing projects, worker housing, low-cost commercial housing and other types of real estate serving production and social security purposes with high efficiency and the ability to repay debts.
"One of the recommendations that many businesses have asked the State Bank to consider is to arrange a budget source to subsidize interest rates for beneficiaries of preferential loans with an interest rate of 4.8%/year to buy or rent-purchase social housing," the Ministry of Construction emphasized.
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