Thousands of real estate projects nationwide with investment estimated at around $30 billion have been postponed, including social housing projects, according to the Vietnam Real Estate Association.

As of the end of 2022, nearly 1,200 property businesses had declared bankrupt during the year and been dissolved, a year-on-year increase of 38.7 per cent.

Very few new real estate businesses have been established since the fourth quarter of 2022.

Existing businesses, meanwhile, have had to downsize their investment and production scale and cut their workforce. Many have cancelled project construction.

Vice Chairman of the Association Nguyen Van Dinh said it has proposed that the State Bank of Vietnam (SBV) pump more capital into the economy to help the implementation of real estate projects and ease pressure in the market. However, it is necessary to control cash flow and target prioritized projects and appropriate product segments.

The central bank should also create the conditions necessary for real estate businesses to delay loan repayments, as was the case during Covid-19, he said.