Vietnamese developers froze about 1,200 projects due to the crisis in the real estate market – Kommersant

According to Bloomberg, Vietnamese developers had to freeze about 1.2 thousand projects due to funding problems. The total cost of these projects is estimated at $34 billion.

“Huge resources have been frozen, and we do not know how long they will remain in this state,” the Vietnam Real Estate Association quoted the agency as saying. “These suspended projects do not create additional value for society, but lead to numerous consequences.”

As the agency notes, the crisis in the Vietnamese real estate market was triggered by excessive debt load of developers, as well as the COVID-19 pandemic, which brought down demand for housing, and the introduction of strict anti-corruption measures by the government of the country.

According to the Ministry of Construction of Vietnam, the real estate crisis has already affected more than 1.8 thousand developers, in the first quarter already 340 companies were forced to file for bankruptcy. At the same time, according to the country’s Main Statistical Office, in the first five months of this year, the number of bankrupt construction companies in the country has already reached 554, which is 30.4% more than in the same period in 2022. And the number of newly registered construction companies fell by 61.4% over the same period.

Kirill Sarkhanyants