More realty businesses established, resume operations in 2022

Hanoi - The number of newly-established enterprises and businesses resuming operations in the real estate market saw a remarkable rise last year, said the Ministry of Construction.

As per statistics from the Ministry of Planning and Investment’s Business Registration Management Agency, there were 8,593 new enterprises and 2,081 businesses resuming operations in 2022, up 13.7 per cent and 56.7 per cent year-on-year, respectively.

Meanwhile, the number of firms declaring bankruptcy or dissolution also grew by 38.7 per cent against 2021.

The Ministry of Construction said 2022 still saw many challenges facing realty firms and forcing them to change their business and management plans. The changes included debt restructuring, scaling down production and investment, streamlining apparatus, and suspending new projects, among others.

In the face of complicated economic developments, from the middle of the third quarter to the end of last year, the operations of real estate exchanges also showed signs of difficulties. Less transactions were conducted compared to the beginning of the year, leading to a decrease in the scale of the trading floors, whose number is now more than 1,100.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, 103 transactions of capital contribution and share purchase were recorded in the sector in the year as of December 20, with their accumulative value reaching some US$1.6 billion.

Gaining in popularity in recent times, environmental, social, and governance criteria refers to the standards used to evaluate business practices in these areas.

With issues persisting in terms of cash flow, real estate businesses and investors still hope various bottlenecks will be removed and a struggling market can recover by the end of 2023

Reforming the real estate market is contingent not only on restoring cash flows and market operations but also on adopting a broader perspective, according to the head of the Ho Chi Minh City Real Estate Association (HoREA).