In a recent real estate market information report, the Ministry of Construction said that real estate businesses in 2023 are still facing many difficulties.
The number of newly established enterprises operating in the real estate sector is only 4,725, down 45.01% compared to 2022. The number of enterprises dissolved and temporarily suspended is 1,286 (up 7.7%) and 3,705 (up 47.4%) compared to the previous year. The above figures are cited by the Ministry of Construction from the Department of Business Registration - Ministry of Planning and Investment .
Notably, the situation of staff reduction in real estate enterprises is still happening not only for small parties but also for large real estate companies in the market: Dat Xanh Group reduced 1,384 employees, Dat Xanh Services reduced 1,245 employees, Vinhomes Joint Stock Company reduced 1,527 employees...
A project being implemented in Hanoi (Illustration: Ha Phong).
According to the Ministry of Construction, real estate businesses are still facing many difficulties and challenges.
Difficulties and legal problems of the project, specifically the implementation of regulations on land valuation methods still has many problems; land use planning has been announced but there is no annual land use plan; there is a detailed 1/500 planning approved but it is not consistent with the planning of higher levels...
The coordination mechanism between departments, branches, sectors and localities is not timely and synchronous, which has also caused many difficulties and obstacles for real estate projects, specifically: in the work of site clearance, compensation, support and resettlement, land recovery agreements, compensation pricing with people; land price determination to calculate land use fees, implementation of project records and procedures...
Difficulties in accessing credit loans and almost no ability to mobilize corporate bond capital and other capital, leading to a lack of capital to implement the project (having to delay progress, stop implementation). Difficulties in liquidity, cash flow, especially in the context of pressure to mature and repay corporate bonds in the last months of 2023...
According to the Ministry of Construction, to remove difficulties and promote production and business for enterprises, the Government and the Prime Minister have taken drastic measures to promote and create very positive changes that spread from ministries, branches to localities.
Many legal documents on investment, construction, planning, housing, and real estate business have been researched, revised, and supplemented to remove difficulties and obstacles in project procedures and legality.
However, according to the Ministry of Construction, there are still some problems, especially related to land laws, land allocation procedures, land lease, site clearance, and land use fee calculation in many projects and localities.
The credit interest rate level has been adjusted down many times during the year; the State Bank has actively directed commercial banks to focus on lending and disbursing loans to qualified real estate projects; implementing credit packages to support loans for social housing projects and renovation and construction of old apartment buildings.
However, the Ministry of Construction said that according to feedback from associations and real estate businesses, businesses’ access to credit capital is still limited. In addition, the review, removal and implementation of procedures to implement projects by localities is also slow.
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