Vietnam’s real estate sector still faces a range of difficulties as the number of newly-established businesses fell in the first quarter of 2023 while the number of those dissolving or ceasing operations increased, according to the Ministry of Construction.

The ministry’s figures show that only 940 new real estate companies were set up in the quarter, down 63.2 per cent year-on-year.

The number that dissolved and ceased operations stood at 341 and 1,816, respectively, up 30.2 per cent and 60.7 per cent compared to the same period last year.

Meanwhile, many existing businesses had to downsize and cut staff numbers.

The ministry said businesses in the real estate field are facing many challenges, forcing them to change business and management plans, reduce operations, cut their workforce, or cancel new projects. The greatest challenge is issuing bonds to mobilize capital and limited access to credit.