Keep an eye on "Vietnamese real estate companies": more than 1,800 companies suspended operations in Q1/66, signaling funding stress.
On April 25, 2566, Bloomberg News reported that More than 1,800 companies develop and sell real estate in Vietnam. It suspended operations in the first quarter. This comes as a sign of stress in a sector beset by funding problems.
This number increased 61% from the previous year. While new real estate companies opened in the first three months of 3 dropped 2566%, according to the country's Ministry of Construction, about 63 other companies were folded during the same period.
Vietnamese real estate companies must restructure business and debt It has scaled back operations and cut staff, with one company saying it had to cut its workforce by as much as 50% to deal with the problem. The real estate sector faces challenges in accessing loans. selling bonds and funding that has led to the suspension of various projects
The latest data amplified Prime Minister Pham Minh Chinh's message over the weekend that struggling companies need help to protect one of Asia's fastest-growing economies. This was after GDP growth dropped to 3.32% in the first quarter.
Vietnam, which had barely grown less than 5% before the outbreak, It is being affected by slowing global demand. This was aggravated by funding problems. Amid the government's anti-fraud campaign that deters investors Selling bonds and selling initial stocks is tedious at best.
Meanwhile, Vietnam's construction sector shrank 0.82%, one of the key factors causing GDP growth to be slower than expected in the first quarter.
Sales of apartments, houses and land fell 39% from a year ago to 106,401, the Ministry of Construction said. The number of completed real estate projects decreased by one-third to 1, while project permits dropped by more than half.
