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A number of real estate directors have been seeking ways to avoid their creditors on these days leading up to Tet.

Many real estate companies stop operations
Recently, Mr. Tuan, the director of a property firm in Hanoi, has often been absent from the office as a way to delay the debt settlement. He said, “In 2012, most staff members had to be let go. Now we have only three left. However, the company could not ensure sufficient salary even for them. I would go somewhere far from home to escape these problems during Tet."
He offered his five-floor house near the West Lake up for sale to repay his debt, but has yet to find a buyer.
Despite selling his house and car, Mr. Hung, another director of a real estate company in Hanoi has not been able to fully settle his debts. At this time two years ago, he spent the time before the holiday season shopping for branches in Nhat Tan Peach Village, often spending upwards of VND10 million each (USD476).
This year is a different story. His office has been closed for three days and he leaves his house early in the morning, not even informing his family where he went.
A director of a real estate company in Trung Hoa area, Hanoi’s Cau Giay District had to write a letter to express gratitude to his staff and explain why they were not to be given any Tet bonuses. Since April staff members there have been working for half-salary, and he promised to gradually pay back the remaining. Around half of the employees have already quit.
This is especially shocking when seen in the light of the traditional Tet taboos. One of which is not to leave unsettled debts for the new year. This, it is thought, will badly affect the entire year to come.
Little hope for the real estate market in 2013
According to a recent report by the Ministry of Construction, a range of property transaction offices in Hanoi and HCM City have stopped operation, with more than half in HCM City having closed their doors.
Last year 680 real estate companies suspended business activities or were completely liquidated.
The report showed that around 42,250 apartments; 92,800 square metres of offices for rent; 98,400 square metres of trade centres and 7.9 million square metres of land remained vacant. The ministry estimated that the total value of these assets was VND111.96 trillion (USD5.38 billion).
Nguyen Hoang Nam, a representative of one real estate business, said the frozen real estate market was due to two factors; the decrease in investment capital as a result of the economic downturn and a loss of confidence in the market.

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