HCMC – The majority of 1,579 listed companies in 10 different sectors posted revenue falls from mid-2022 to the end of the second quarter of 2023, with the real estate and construction sectors facing the most significant drops.
The committee for private economic development research, known as Committee IV, which is under the prime minister’s administrative procedure reform consulting council, said the businesses faced hardships such as capital shortages and high inventory in the period.
In the first half of the year, revenues of businesses in eight out of 10 sectors were lower than in the same period last year. The only sector that recorded revenue growth was information technology, while consumer goods and services remained stable.
Real estate and construction businesses struggled with cash flows due to the almost-frozen real estate market. According to Board IV, in January-March this year, the average debt collection period for construction businesses was 1,165 days, a 2.5-fold increase compared to the same period last year. The average period required for these businesses to offload their products in stock reached 4,527 days, a 6.8-fold increase against the same period last year.
In the real estate sector, the average period to offload inventories in the first three months of the year amounted to 5,662 days. Remarkably, at one real estate business, given the current slow pace of sales, it might take 149 years to sell out its inventories.
In response to this situation, Board IV has proposed that the Government implement policies to support businesses. These policies would provide easier access to loans, reduce costs, and allow deferred payments to increase cash flows for businesses in the short term, at least in the rest of the year or even the first half of next year.
