The severe economic blows from COVID-19 have forced scores of businesses to suspend operations and even file for bankruptcy, with real estate companies among the hardest hit.
Hanoi (VNA) - The severe economic blows from COVID-19 have forced scoresof businesses to suspend operations and even file for bankruptcy, with realestate companies among the hardest hit.
As of theend of August, nearly 34,300 enterprises had temporarily suspended operations, asurge of 70.8 percent against the same period last year. Of these, 923 were in realestate, up a whopping 136.1 percent - the highest rate among Vietnam’s 17sectors.
A totalof 10,353 firms have closed down since January. This includes 620 realtors, withthe real estate sector seeing the fifth-highest number of bankruptcies, afterwholesaling, retailing, and auto and motorcycle maintenance and repair; manufacturingand processing; construction; and science, technology, marketing, and designservices.
Meanwhile,the number of newly-established firms in real estate shrank 19.6 percent year-on-yearin the first eight months.
Realtorshad already struggled in 2018 and 2019, and their difficulties have become moresevere in 2020 with COVID-19 outbreaks, Chairman of the HCM City Real EstateAssociation (HoREA) Le Hoang Chau said.
Many companieshave seen revenue and profit fall sharply, he noted, with some becomingilliquid and deep in debt because of high levels of inventory.
Themarket has faced a host of difficulties since mid-2018 as a result of tightercash flow control, said Nguyen Van Dinh, Vice Chairman of the Vietnam NationalReal Estate Association (VNREA). The challenges became more evident towards theend of last year, as capital flows into the sector were down, with fewer newprojects.
He added thatthe sector continued experiencing hard times this year due to lengthy delays ingranting permits to new projects as well as tightened credit.
TheVietnam Association of Realtors (VARS) has suggested local real estate companiesshift their focus to low-cost housing and social housing projects, which remainin high demand./.
Analysts from real estate consultants Savills Vietnam have advised investors to focus more on new urban areas in Hanoi, especially those with convenient infrastructure networks.
Real estate companies have said that they will push marketing channels on social media and e-commerce floors instead of calling or sending text messages as a Government decree to tackle spam comes into effect next month.
The Ministry of Construction has asked provincial and municipal people’s committees to tighten management on condotels, officetels, resort villas and shophouses while there remains a shortage of regulations to ensure the development of these new property products.
The new Government decree also simplifies loan procedures while expanding credit incentives to include organic and circular agriculture, allowing them to access preferential terms similar to those of high-tech and value-chain based agricultural production.
Developed with state-of-the-art infrastructure, the Da Nang FTZ is designed to become a leading regional economic centre and a strategic growth pole in Vietnam’s new development landscape.
The Binh Duong Association of Supporting Industries (BASI) is expected to promote the usage of domestically manufactured components while supporting businesses in accessing international markets, strengthening linkages, and promoting deeper integration into global supply chains.
PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.
The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Illustrative photo. (Source: VNA)
