Newly-established property businesses drop by more than 60%

VOV.VN - As of the end of May, the number of newly-established real estate businesses stood at only 1,744 units, a decline of 61.4% over the same period from last year, according to data released by the General Statistics Office (GSO) under the Ministry of Planning and Investment.

Meanwhile, the number of dissolved property enterprises stood at 554, up by 30.4% on-year.

Nguyen Hoang Hai, head of the Department of Housing and Real Estate Market Management under the Ministry of Construction, said that since the beginning of the year, real estate businesses have faced numerous difficulties and challenges in terms of business activities.

Currently, many businesses have been forced to change their business and management plans, with the majority of them having to restructure debts and business activities, narrow the scale of production and business investment, minimise the apparatus, and reduce labour forces.

In some cases, businesses stopped carrying out new projects and issuing shares to increase capital. Elsewhere, some firms have been forced to reduce their workforce by up to 50% to cope with the current difficult conditions.

Furthermore, real estate enterprises continue to face a host of major difficulties such as difficulty in accessing credit loans, issuing bonds and mobilising capital from customers, leading to a lack of capital, thereby forcing them to delay the progress and even halt project implementation.

Despite a fall in interest rates, it remains at a level that is difficult for businesses to access. Along with that, foreign exchange rates, petrol prices, and prices of construction materials fluctuated, a factor leading to higher costs of businesses, thereby affecting production and business activities.

Currently, a number of groups and property enterprises are narrowing the scale of production and business investment whilst simultaneously reducing the labour force, with some even scaling down their workforce by up to 50%.

Recently, Deputy Prime Minister Tran Hong Ha signed for the promulgation of an official dispatch No 469 on removing difficulties aimed at promoting the safe, healthy, and sustainable development of the real estate market. According to the details of the plan, ministries and sectors should consider this to be an urgent and important task to focus on in order to solve the issue as swiftly as possible.

The Ministry of Construction has therefore been asked to co-ordinate with the Ministry of Planning and Investment in guiding localities to deal with difficulties and problems in the formulation and approval of projects related to investment and planning.