Real estate businesses try to overcome the crisis

Could you tell us about the impact of the Covid-19 epidemic on the real estate market?

The Covid-19 epidemic has turned upside down all aspects of social life and has had a serious impact on the global economy. In Vietnam, the Covid-19 epidemic has a negative impact on the economy, causing difficulties in production, business and service industries, stagnation, sharp decline in revenue, risk of losses, even bankruptcy including the real estate market.

In particular, the epidemic has disrupted and overturned the activities of real estate businesses, especially marketing and product promotion and sales are very important stages in the production and business lines of enterprise. Seriously reducing revenue and profit, maybe even lose liquidity. Increasing investment costs, capital costs, interest expenses and the risk of being converted into bad debt.Increasing administration costs, especially businesses with many employees,increasing the likelihood of enterprises being owed tax social insurance debts and unpaid wages of employees.Increasing the risk of businesses falling into losses or bankruptcy.

Under these difficulties, what solutions do real estate businesses need to implement to overcome the crisis?

The real estate market has faced many difficulties in the past two years, now it is in a "difficult situation", so corporations and real estate businesses need to make double or triple efforts to overcome this extremely difficult period.

The association recommended that the Board of Directors of corporations and businesses strictly follow the regulations of the competent state agencies and the health sector's instructions on the measures to prevent and control Covid-19 in all activities of the enterprise; strengthen preventive measures (wear a mask, wash hands frequently, use antiseptic solution, measure body temperature) to ensure the highest safety for officials, employees and customers, protecting themselves, family, and a sense of responsibility to the social community, especially in the case of isolation.

During the Covid-19 epidemic, businesses shouldnot organize crowded events (such as marketing, product sales, ground breaking, commencement, openings), restricting unnecessary meetings, using online conferencing method to prevent the risk of virus spread.

It is necessary to reorganize production and business lines, allowing a number of qualified officials and employees to work remotely, at home, not to agencies, especially in the field of brokerage; marketing and legislation, Information Technology. Implement methods to support partners renting premises, such as reducing the price of renting premises, extending the payment schedule, exempting the rent for a period of time.

In order to solve difficulties and problems for real estate businesses, what recommendations or suggestions has theassociationissued?

The association has proposed to the Prime Minister to add real estate businesses that are considered for a 5-month extension of VAT of March-June 2020 to draft Government Decree on extension of time for paying taxes and land rent to thoseaffected by the Covid-19 epidemic.

The association asked the Government to consider directing Vietnam Social Insurance to allow a 5-month extension of the social insurance debt of March-June 2020 for businesses, including real estate enterprises.

The association asked the Government and the State Bank to consider and direct commercial banks to extend the schedule of loan repayment and not to transfer the (worse) debt group for the due debts of enterprises, including real estate businesses.

At the same time, the Association asked the Government to consider removing obstacles and difficulties in the administrative process of implementing procedures for investment in construction of housing projects with mixed land funds (including residential land, agricultural land); dealing with State-controlled land interlaced in commercial housing projects to create conditions for the real estate market to recover.

In your opinion, in this period, doreal estate businesses have any opportunity to grow?

This period is an opportunity for real estate corporations and enterprises to implement the strategy of "restructuring" towards streamlining and efficiency; restructuring investment, key products, attaching importance to developing affordable housing and social housing products to meet the real needs of the majority of consumers.

For large corporations, it is possible to choose to develop multi-sector production and business so that they can effectively cope with market fluctuations. At the same time, this is also an opportunity to redirect the use of information technology, digitization, artificial intelligence, virtual reality and online business into real estate.