The representative of a real estate company headquartered in Phu Nhuan district (HCMC) said that last year the market was difficult, and most other companies stopped operating because they were “losing money as they went”. Meanwhile, the company continued to focus on selling projects in Long An and Tien Giang, so it also had revenue.
In addition, to maximize the budget, the company did not run media, advertising, and even event organization, all of which were done by itself. The products sold have a reasonable price, ranging from 1-1.3 billion VND, with full legal documents accompanied by interest rate support and payment installment plan. Thanks to this, the company has transactions and does not fall into debt.
“The business results are not as good as previous years, but they are much better than many other companies. Therefore, the company tries to have a small bonus for employees to celebrate Tet”, he said.
A large real estate corporation in district 7, HCMC, also said that the company will give Tet bonuses to its employees this year. According to the company’s leadership, compared to previous years, this year’s sales revenue decreased significantly, but there were revenues from project handover and profits from joint venture and affiliated companies. The company also cut operating costs, so it was considered financially balanced last year, still ensuring salary and bonus payments for employees to celebrate the Lunar New Year.
“This year’s bonus level for the corporation is equivalent to last year, which means from 0.5-2 months’ salary, depending on the performance of each employee”, a company representative said.
 Real estate in the western part of Ho Chi Minh City, passing through Binh Chanh district in October 2023. Photo: Quynh Tran |
Also awarding year-end bonuses, the CEO of a real estate company specializing in brokering townhouses and individual houses with headquarters in district 3 stated that this year, this segment still regularly has customers, and even many markets have recorded positive growth in revenue compared to previous years. Thanks to that, the company still made profits, so it will give Tet bonuses and the 13th month salary to its employees. The bonus amount is not less than 1.5 months’ basic salary.
Surprisingly, a real estate corporation that is in the process of restructuring also gives a Tet bonus of 0.5 months’ salary to each employee. However, this year’s Tet bonus only applies to the operational sector.
According to a representative of this business, last year, the company had to cut more than 40% of its workforce, so the remaining employees had to bear 2-3 times the workload. Therefore, after arranging finances, the company prioritizes the rights and benefits of this group of employees, pays the full 13th month salary and an additional bonus, called lucky money for Tet.
“Because of the limited budget, we try to give bonuses to the operational sector. As for the sales department, the company has already had hot bonuses for each successful transaction and pays full commission”, a representative of the unit said.
Experts believe that giving Tet bonuses to employees is a challenging task for most real estate companies, especially in the Southern market. The reason is that wholesale sales are stagnant, there is a shortage of cash, difficulty accessing loans, and businesses are struggling to recover debts, reaching an alarming level.
Therefore, looking at the overall picture, Tet bonuses for real estate companies this year are rare. Our survey shows that nearly 80% of operating real estate companies and brokerage floors stated that there would be no Tet bonuses.
Ms. Xuan Lan, a broker working at a company with headquarters in Binh Tan district, believes that receiving Tet bonuses is a luxury for her and her colleagues at this time. Normally, the bonus is calculated based on the profit from business operations. This year, almost no department in the company has achieved business targets.
“For the past two years, I don’t know what Tet bonuses are. Now I just hope to sell houses, have more commissions to celebrate Tet”, Ms. Lan said.
Many company leaders also said that last year’s activities were difficult, with the market losing liquidity and brokerage units having no projects to sell, or even if they did, sales were very slow. Many businesses have not yet arranged to pay brokerage fees, commissions, and are even in debt to sales staff.
A leading real estate company, headquartered in district 1, HCMC, said that this is the worst year for this market since 2014. Throughout the year, the company had no revenue. Ongoing projects are entangled in legal issues, and cannot be sold. “With insufficient income to cover expenses, the company has to prioritize cash flow to maintain the system. Paying salaries and Tet bonuses this year is unavoidable”, he said.
The Vietnam General Confederation of Labor stated that the economic and social situation at the end of last year still had difficulties. Although most companies ensured the livelihoods and employment for workers, a number of companies continue to lack orders; many units are struggling. Therefore, the salary and Tet bonus situation in the real estate industry this year is not optimistic.
Talking about Tet bonuses, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Association, said that many businesses also want to give bonuses to motivate and care for their employees, and to encourage dedication, but the difficulty is that there is no money. Because most businesses are still trying to “survive” through this difficult period.
Experts believe that the real estate market this year is witnessing new developments from the recently passed laws and policies. Bank interest rates are trending down, and credit flows are gradually rising. Nevertheless, 2024 will still be a difficult year, but it will be a decisive turning point towards true recovery by 2025.
Nguyen Tieu
