Home / Economy / Real estate
Covid-19 causes insolvency of real estate enterprises
Phi Khanh 11:07, 2021/02/22
The real estate industry has accounted for about 4.42% of Vietnam’s total gross domestic product in 2020.

Nearly 1,000 real estate enterprises have completed dissolution procedures in 2020 in Vietnam due to the impact of Covid-19, according to the Ministry of Construction.

 A number of real estate enterprises had to go bankrupt due to Covid-19 in 2020. Photo: Doan Thanh

Experts have said that the Covid-19 pandemic had delayed the construction of many property projects in Vietnam, while trading floors have been shut down. In particular, investors in the hotel segment were unable to cover operation costs due to lack of guests, making them to sell their hotels at a low price. 

Last year, many real estate enterprises had to improve their capacity and increase adaptability to the pandemic. The number of the newly-established enterprises in the sector in 2020 was 6,694, down 15.5% compared to 2019.

In the last quarter of 2020, the sector slightly expanded compared to growth in the first quarter mainly thanks to the rapid recovery of the housing and industrial segments. This led to a positive growth for the whole year of 2020.

According to the Ministry of Construction, the real estate credit kept expanding in the whole year of 2020, except for the first quarter because of the Covid-19 outbreak. 

In addition to bank credit, which was the main source of capital, the real estate market lured inflows from other sources such as individuals, remittances and capital from the issuance of stocks, bonds of listed companies and foreign-invested enterprises.

TAG: real estate enterprises covid-19
Other news
17:11, 2021/11/06
Corporate bonds of real estate - risky commercial debt for investors
When enterprises fail to realize their commitment of interest payment, investors would be on the losing side.
14:53, 2021/53/15
Riverside eco city near Hanoi brings nature to each home
Construction area accounts for only 16% of the total eco city.
21:46, 2021/46/11
Planning of Red River banks enriches Hanoi’s green spaces
The planning is designed to form a region integrating parks and green space with overall infrastructure, cultural sites, and socio-economic activities.
09:30, 2021/30/01
What makes Phu Quoc’s real estate attractive to investors?
Population in Phu Quoc likely triples in 2030, resulting high demand for hospitality industry.
11:07, 2021/07/22
Covid-19 causes insolvency of real estate enterprises
The real estate industry has accounted for about 4.42% of Vietnam’s total gross domestic product in 2020.
14:44, 2021/44/17
Five key trends in the Vietnam property market 2021
Surges in online orders among other essentials have pushed businesses to look for more storage space with close proximity to their customers.