The real estate market in Vietnam is in a severe crisis: developers are struggling with debt, construction projects are frozen, and buyers are waiting for better times.

During the first five months of 2023 in Vietnam, more than 550 real estate companies were dissolved. At the same time, new companies are opening with difficulty: in the nearly six-month period, they opened 61.4% less than last year.

Now for the construction projects: according to the Vietnam National Real Estate Association, thousands worth $33.7 billion have been suspended. Between January and March 2023, the number of new building permits issued fell by 56 percent from a year earlier.

“Problems in this sector have remained unresolved for quite some time, driving firms into trouble,” according to a recent report by the Vietnam Association of Realtors. “Companies are pushed to the limit. Mass bankruptcies will be inevitable if they stay drowning in adversity longer.”

Vietnamese Prime Minister Pham Minh Chinh has already called for measures to support the sector in order to stimulate economic growth. After all, 15% of the country's GDP comes from the real estate market.