Deputy general director of a real estate group specializing in developing urban areas in provinces bordering Ho Chi Minh City said that Covid-19 has upset all plans and structures of the business.
`To overcome the shock of Covid-19, businesses laid off a series of employees, the number of employees from 2,000 people in 2019 has now decreased to 500 people, equivalent to 75% of sales have quit,` he said.
With the remaining 25% of employees, he said the company continues to encourage people to proactively change careers because they realize that the market’s opportunity for recovery this year is quite narrow.
`The company has to compensate for losses of nearly 300 billion VND to hold on to the remaining staff, not to mention repaying loans. However, we are making efforts to streamline the apparatus and restructure the company to adapt and prepare for the future.
Meanwhile, the leader of a real estate company headquartered in District 3, Ho Chi Minh City informed that in the first 6 months of 2020, the business has not had any new projects offered to the market – the worst development in the first half of 2020.
In order to minimize the risk of cash imbalance, the company releases inventory and discounts 20% of product value to collect money.
Ho Chi Minh City real estate market.
Meanwhile, real estate distribution and brokerage businesses also have the longest Tet holiday in the market’s history.
In fact, from the end of May 2020 until now, small-scale real estate brokerage companies in Ho Chi Minh City have mostly operated moderately, clustered and even closed if they have no products to sell.
Mr. Nguyen Loc Hanh, General Director of Ngoc Asia Real Estate Investment Joint Stock Company, said that real estate companies are facing huge financial risks in the first 6 months of the year due to the impact of Covid-19.
CEO Ngoc Asia analyzed that Covid-19 has weakened the purchasing power (including both living and investment) of the real estate market.
However, Covid-19 struck and caused the cash flow to be blocked, even `frozen` in all directions.
Mr. Hanh compared the 2008-2009 crisis as a knockout blow to the real estate market right from the first blow, causing a series of businesses to die, while Covid-19 is a multi-round, multi-phase battle that can cause many businesses to die.
The first unstable links such as hotels, resort real estate, rental trade… began to recover from mid-May 2020, gradually improving at a slow pace.