The construction industry is difficult to overlap

Most construction businesses and construction materials are being owed by the investor
In the context of the real estate market (real estate) is still difficult, most of the construction contractors have a long outstanding debt because the project investor has lost its ability to pay or repay the debt. This causes construction businesses (enterprises) to be in a dilemma, bank debt, supplier debt, subcontractor debt, employee salaries and tax debts. Many projects and works have no operating costs and have to stop construction.

Hard husband is difficult

The story of the Board of Directors of Licogi 166 Joint Stock Company (enterprises have 60% of revenue from construction) moderate through a resolution to suspend business for 1 year, from March 15, 2023 to 14-3-2024 Due to difficult business activities.

In the explanatory document with the Hanoi Stock Exchange, the company explained the stopping of business in order to find a solution to solve difficulties and consolidate the organizational structure. The shareholders also agreed with the decision to suspend the operation of the Board of Directors and allow the company to conduct liquidation of assets, recover debts to pay salaries, bank debts, personal debts and owes of suppliers. grant.

“The company is no longer able to operate, workers have quit their jobs, so they cannot implement their business activities. In fact, the company has had difficulties since 2019 because there is no job, few projects and financial difficulties. Some projects have been implemented legal problems, site clearance from the investor, so the work is prolonged … plus 2 years of pandemic, causing the company’s operation to be stagnant, inauguration and debt The bank has been in bad debt since July-2021 ”-Licogi leader 166 explained.

A large construction corporation like Hoa Binh is also facing many difficulties. Photo: Tan Thanh

Previously, public opinion in the construction industry and real estate also stirred the information that the subcontractor group was constructing projects by Hoa Binh Construction Group as the general contractor to send a written request for debt payment request from July 7-2022 now. If not paid, subcontractors will temporarily suspend all warranty and maintenance services for projects that have been handed over and temporarily suspended construction projects.