IMPACT OF COVID-19 ON THE PROFITABILITY PERFORMANCE OF REAL ESTATE BUSINESSES IN VIETNAM

Abstract

This study tries to analyze how the Covid-19 epidemic has affected the profitability of Vietnam's real estate enterprises. The researchers collected data from sixty real estate enterprises in Vietnam from the final quarter of 2018 to the third quarter of 2021. This period encompasses the milestones that occurred before and during the Covid-19 pandemic. This study differentiates from previously published research by employing the statistical comparison approach and analyzing the profitability determinants of real estate enterprises across two time periods, before and during the Covid-19 pandemic, through regression. According to the Covid-19 era, the favorable impact of asset turnover and credit growth rate on the profitability of real estate firms has been neutralized during the results. During the Covid-19 period, the beneficial benefits of asset turnover and asset growth on profitability during the pre-Covid period have become negative. Our investigation has uncovered the dilemma in the real estate industry in which many companies are forced to sell at a loss to meet their financial obligations. The report suggests methods to assist these firms in overcoming obstacles and adapting to future life along Covid-19. In addition, the report suggests that the government simplify legal procedures and implement some online procedures to facilitate real estate transactions.