Developing Vietnam's real estate market during the crisis period (2020-2023)

Abstract

This research examines the developing Vietnam’s real estate market during the crisis period. The real estate market experiences development and downturn cycles, typically 8-10 years. As observed in Vietnam, the period from 2021 to 2023 marked a prolonged downturn, attributed to the compounded effects of COVID-19, energy crises, and the Russia-Ukraine conflict. During extended downturns, the real estate market inevitably contracts significantly, leading to the dissolution of numerous real estate enterprises. This study represents a groundbreaking endeavor in the development of the real estate market, integrating corporate financial data. Research data was collected from 80 listed real estate businesses from Q1 2020 to Q4 2023 and macro data from the General Statistics Office. The study uses a fixed effects estimation method with robust standard errors on dynamic panel data to overcome heteroscedasticity and autocorrelation. This study provides further evidence that timely governmental support policies are necessary to help businesses overcome prolonged downturns, in addition to efforts from real estate enterprises. Real estate enterprises need to restructure product portfolios to target low and middle-income customer groups, provide credit support to customers, and actively promote their products' images and legal credibility. Regarding governmental actions, credit support policies for real estate enterprises are essential to ensure liquidity and sufficient capital for sustaining business operations.