HCMC – The HCMC Real Estate Association (HoREA) has asked the State Bank of Vietnam (SBV) to allow credit restructuring to help real estate firms out of the financial crunch.

The association wrote to the SBV, the central bank of the nation, just ahead of a meeting today, February 8, between the SBV and real estate firms on measures for supporting the struggling real estate sector.

In its letter, HoREA said 2023 would be a momentous year for the sector, as many real estate firms might exit the market if difficult access to credit and negative cash flows persist.

Last year, real estate liquidity problems forced enterprises to change business plans, downsize and put off investment activities, projects and initial public offering plans.

Nearly 1,200 property companies declared insolvency in 2022, up 38.7% against the year-ago period, showed data from the General Statistics Office.

Paperwork is the biggest hindrance to the sector, followed by corporate bonds that are falling due, HoREA said.

It proposed the central bank make it easier for homebuyers to gain credit to facilitate the recovery of the sector as discounts of 45-50% offered by real estate firms could not be enough to attract homebuyers back.