Listed real estate firms expand workforce in 2022 amid crisis

Listed real estate firms in Vietnam expanded their combined number of employees from 25,551 to 28,403 in 2022 despite the ongoing crisis in the sector, with only 23 businesses reporting they had consolidated or scaled back staff.

Dat Xanh Group JSC, listed on the Ho Chi Minh Stock Exchange (HoSE) as DXG, streamlined its workforce by 41% from 6,433 to 3,773 last year, the biggest cut among realty firms.

Novaland (HoSE: NVL) cut its team from 1,765 to 1,404 last year, or 21%. TNS Holdings Trading Service JSC (HoSE: TN1) slimmed its workforce from 2,445 to 2,278.

On the other hand, some firms expanded regardless of the crisis. Vinhomes (HoSE: VHM), a subsidiary of Vietnam’s largest private conglomerate Vingroup, increased its labor force to 13,191 from 5,515 in a year.

Similarly, Vincom (HoSE: VRE), the shopping mall operator of Vingroup, added 355 people to its human resource, reaching 2,364 at the end of 2022.

Nam Long Investment Corporation, listed on the HoSE as NLG, upsized its personnel from 774 to 864.

A report by the Vietnam Association of Realtors showed that 90% of property developers had to scale down or partly cut staff wages in 2022 due to the crisis. Besides, 30-40% of realtors resigned while others were forced to take on second jobs due to the stagnant market. It added that only a few experienced staff with strong financial reserves were able to survive.

Cash flow difficulties and escalating material prices were among the reasons behind a 38.7% year-on-year increase in the number of Vietnamese real estate businesses going bankrupt or being dissolved in 2022, according to a report by the Ministry of Construction.

The report showed that last year, many property developers had to downsize and cut staff, with some laying off 50% of employees. In addition, many firms were forced to stop or postpone investment activities, project implementation and initial public offerings (IPOs).

Earlier this month, Prime Minister Pham Minh Chinh asked the government, state agencies, and localities to continue solving problems in the real estate market in order to support national socio-economic development.