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Coworking spaces approach new trends

Published

4 weeks ago

February 14, 2025

The market for coworking spaces in Ho Chi Minh City witnessed impressive growth and vibrant development in 2024 after a long period of gloom.

Working spaces are becoming greener in order to attract young startups, photo Le Toan

The city saw strong growth in the segment, with demand increasing rapidly and becoming more diverse, clearly reflecting the transformation of the labour market and flexible trends in modern working culture.

At the end of 2024, more than 5,100 square metres of coworking space opened at the Saigon Mia building in Binh Chanh district, with many new features.

According to the investor, Merry Plaza SaiGonMia seamlessly integrated with commerce, such as supermarkets, medical centres, health, beauty, food and beverages, and entertainment, creating an all-in-one model that anticipates all customer needs. This new feature promises to bring an ideal workplace experience to both foreign and domestic tenants, from large businesses to young startups.

Merry Plaza SaiGonMia is operated by Merry Commercial in collaboration with Regus, a member of the IWG Group.

Nguyen Quynh Anh, IWG representative, said the integrated coworking model with a commercial, entertainment centres like SaiGonMia was very promising.

“The success of the model will be ensured by the location and seamless service integration. This is both a challenge and a great opportunity for Merry Plaza,” Quynh Anh said.

Meanwhile, Luong Thi My Thanh, general director of The Executive Centre Vietnam, one of the newest coworking spaces in Ho Chi Minh City, said that for shared work, a workspace no longer needed to be a short-term strategy but must be comprehensively designed to meet the needs of users in the longer term.

“Worker health and sustainability in terms of design and equipment are essential. Furthermore, the workspace will need to have green areas, be provided with maximum natural light, good ventilation and the ability to control the temperature inside the building,” Thanh said.

Another notable trend is the expansion of coworking centres to the suburb’s areas such as Thu Duc city and Binh Chanh and Nha Be districts, which are interested in young startup customers who need flexible but cost-effective working spaces.

At Quang Trung Software Park (District 12), a 10-story office building is about to receive investment and will have three floors used as a coworking space, operated by The Sentry. “We see the software outsourcing segment growing strongly, especially game programming and AI startups,” said co-founder and CEO of The Sentry Greg Ohan.

According to Knight Frank Vietnam, the trend of newly established startups choosing to rent space far from the centres, at affordable prices and conveniently connected to high-tech zones is on the rise.

The average rent in this area is only $96 per person per month. “It’s worth noting that in Thu Duc city and District 12, providers are trying to diversify their services, not just office rentals but also training, development and team building for startups,” said Leo Nguyen, senior director of Occupier Strategy and Solutions at Knight Frank Vietnam.

Hoang Ha, co-founder of a media startup with 12 employees, said she spent $2,500 per month for an 80 sq.m coworking space in Thu Duc.

“We have this cost only in the non-central business district areas. This is an appropriate cost for domestic startup companies like ours. We don’t need a fancy office, just a place to hold regular meetings, assign work to employees and manage the business of groups, while most of the time employees are working on site,” Ha said.

Faced with these positive developments, experts believe 2025 will be an opportunity for commercial real estate operators and operators, including coworking spaces, to expand and increase market share.

Annual research on coworking space in Ho Chi Minh City by Knight Frank Vietnam, showed that in 2024, the rental price per sq.m in Grade A coworking space in Ho Chi Minh City was quoted as an average of $220 per person per month, an increase of 4.5 per cent over 2023.

Hoang Linh, Co-founder & CEO, CirCO

In 2024, circCO’s business has developed strongly and achieved very positive results in business operations thanks to its focus on providing flexible workspace solutions with seven branches located in the most prime locations in the central areas of Ho Chi Minh City and Danang.

The occupancy rate of CircCO’s office spaces for rent and coworking spaces is maintained at over 85 per cent, with some locations continuously reaching 99 per cent.

Currently, customer preferences for the coworking space segment and the office rental market in general are undergoing clear and very interesting changes.

One of the important factors that customers look for is flexibility in choosing workspace, including the ability to flexibly adjust according to needs, freely choosing location in addition to competitive rental prices and flexible payment mode.

This helps businesses, especially freelancer teams, startups and small and medium-sized companies, easily optimise costs and meet the needs of flexible changes in work.

In addition, customers are also increasingly paying attention to work support amenities such as high-speed internet connection, relaxation space, reception area, and full office services. More importantly, tenants want coworking space to be not only a place to work but also a place to build relationships, expand networks, and learn from other businesses and experts. Therefore, networking events, workshops, or community activities are factors that engage potential customers.

Finally, a beautiful, comfortable and creative working environment will help improve customers’ productivity and working spirit.

In 2025, the development opportunities of the coworking space segment remains potential, especially when the flexible working trend becoming more popular and businesses are encouraging employees to work at the office. Companies, organisations and individuals are increasingly aware of the benefits that the co-working model brings, from optimising operating costs to the ability to create a creative and connected working environment.

Another trend is the increase in additional services such as creative spaces, community networking events, or training and skills development initiatives.

In addition, in 2025, factors such as advanced technologies, smart utilities and sustainability standards in space design will also be important factors contributing to market direction. The suppliers will actively develop and provide working spaces that are not only fully equipped but also environmentally friendly and equipped with modern technologies to help improve work efficiency to meet the increasing demand from customers and creating a certain competitive advantage.

Duong Do, founder and CEO, Toong

In 2024, Toong opened a new location and expanded another location also in Ho Chi Minh City to bring 13 locations nationwide and one in Vientiane. In April, we expect to open a new location at The Global City, the new hub of Ho Chi Minh City and expand to double another location in District 1. Our average occupancy rate last year was high, around 80 per cent. However, Ho Chi Minh has a much higher average occupancy rate than Hanoi.

Most companies that use our services are foreign-invested or dynamic businesses in fields with high creative content. Unlike three years ago, the rate of customers terminating contracts prematurely in our system in 2024 was much less. In previous years, due to economic downturn, businesses and projects were paused and this also affected the business situation of coworking space.

One thing I see differently to the previous time is that tenants increasingly place more emphasis on aesthetics and culture in the community than on facilities. Coworking providers that focus on investing in facilities without cultivating community culture have also been quickly purged.

The coworking space market in 2024 was not much active and there were not many new arrivals, while some coworking space chains have stopped developing and expanding. The coworking space is not an easy field to succeed in. But if coworking space is considered an essential solution, meeting the need for a work space that is both cost-effective and capable of taking care of the spiritual life of workers, then coworking space is an ideal solution, and it has much room to develop.

Toong was born out of the philosophy that a work environment should, first and foremost, nurture the transformation of every individual, which will be a tremendous momentum to their businesses. Since the establishment, Toong has exponentially expanded across Indochina, with each location uniquely crafted to melt into its landscape and take roots in local culture.

However, more than a physical space where businesses happen, Toong has evolved into a work environment that boldly changes not only the way people work but also the way people push back frontiers by interweaving architecture, culture, art, ecology, technology, and community.

Source: https://vir.com.vn/coworking-spaces-approach-new-trends-121717.html

Related Topics:Coworking spaces Ho Chi Minh City real estate

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Real estate capital heading into suburban areas

Published

5 hours ago

March 12, 2025

Industrialzone.net

The shortage of affordable apartments in Ho Chi Minh City has led buyers with tight budgets to seek properties in neighbouring markets.

The real estate market in Ho Chi Minh City is facing a scarcity of land, while the cost of project development is continuing to rise. This has forced investors to carefully consider which product segments to focus on to ensure profits.

Real estate capital heading into suburban areas

Photo: baodautu.vn

Investors with land in strategic locations close to the city centre are prioritising the development of mid-range and high-end products to optimise financial outcomes.

As a result, buyers seeking affordable options are being forced to look elsewhere.

“The shortage of affordable apartments in Ho Chi Minh City has led buyers with limited finances to seek items in neighbourhoods like Binh Duong, Dong Nai, and Long An. In these areas, apartment prices hover at around $1,200-$1,600 per square metre, creating strong demand,” said Giang Huynh, head of research and S22M at Savills Ho Chi Minh City.

From another perspective, the average rental yield for apartments in Binh Duong is currently 4.7 per cent, well above the 3.7 per cent yield in Hanoi and 3.6 per cent in Ho Chi Minh City.

Dinh Minh Tuan, southern regional director of real estate trading platform Batdongsan.com.vn, shared that the high rental yield in Binh Duong is largely due to reasonably priced luxury apartments, with high rental prices and stable occupancy rates.

On average, a luxury apartment in Binh Duong can be rented for $400-$480 per month for a one-bedroom unit, and from $600-$800 for a two- to three-bedroom unit.

Meanwhile, in Ho Chi Minh City or Hanoi, apartments in the $1,800-$2,000 per square metre range can only be rented for around $280-$480 per month, depending on the number of bedrooms, not to mention the increasingly stiff competition in enticing tenants.

In response to the strong capital shift, real estate firms in Ho Chi Minh City’s suburban areas are accelerating legal procedures to launch new projects.

This trend reflects the investors’ agility and creates attractive opportunities for both homebuyers and investors in 2025.

Accordingly, Kim Oanh Group plans to launch a 27-hectare urban area in New Binh Duong City in the first quarter of 2025.

This will be the first project the company has collaborated on with Surbana Jurong, a partner from Singapore, under EDGE green standards.

The project features 1,656 townhouses and terraced houses, and 1,666 social apartments, priced from $28,000 per unit.

Major developer Phat Dat Real Estate Development Corporation plans to launch two major projects, Thuan An 1 and 2 in Binh Duong province, covering a total area of 4.46 ha.

The 1.8ha Thuan An 1 will provide 2,604 apartments and shophouses, while the 2.66ha Thuan An 2 will have 3,270 apartments and 16 townhouses. These projects are located on key roads.

Simultaneously, southern developer An Gia Group plans the launch of 3,000 apartments at The Gio Riverside and 76 shophouses in Di An city.

The three-hectare project, located on the provincial route DT16, offers nicely designed apartments with one to two bedrooms.

Regarding opportunities for homeownership, Phan Cong Chanh, an expert in real estate investment, noted that owning a home requires solid knowledge and time to raise financial resources.

For young people, buying a home immediately is a challenge due to limited finances.

Buyers can explore financial support packages and use leverage to shorten the time needed to purchase real estate. This needs to be accompanied by a reasonable plan to ensure long-term affordability.

“Overall, owning a home is not just a purchasing decision; it also requires a smart financial strategy. Whether choosing to buy immediately, rent, or invest in real estate in any segment, individuals must consider their financial conditions and personal plans carefully,” said Chanh.

Project

VinFast looks to long term with operational roadmap

Published

7 hours ago

March 12, 2025

Industrialzone.net

Carmaker VinFast aims to become a powerhouse in the electric vehicle market as it grapples with tougher competition abroad.

VinFast looks to long term with operational roadmap

The company wants to double EV sales when compared to last year’s figure

Potential investment from JTA Investment through an MoU between Vingroup and Qatar Investment Fund, which was unveiled last week, aligns perfectly with VinFast’s ambitious vision of scaling up production and sales in a competitive international market, the company said.

JTA Investment is exploring a potential equity investment of at least $1 billion in VinFast, the Nasdaq-listed EV manufacturer, as well as a strategic partnership aimed at supporting the company’s global expansion and technological development.

“This collaboration will unlock significant opportunities for Vingroup and its subsidiaries to drive technological, infrastructural, and sustainable economic advancement in Vietnam, while establishing a foundation for international expansion,” said Le Thi Thu Thuy, vice chairwoman of Vingroup.

Global electric vehicle (EV) competition is expected to get tougher as the demand for EVs is projected to increase further this year, but the outlook is being hindered by uncertainty surrounding tariffs and policy changes.

In 2025, S&P Global Mobility projects that 15.1 million battery EVs will be sold worldwide, a 30 per cent increase on last year. It is anticipated that 16.7 per cent of the light vehicle market will be made up of battery-based EVs.

S&P also reported that major unknowns await Chinese manufacturers BYD and Tesla in 2025 due to assumed changes to the US Inflation Reduction Act.

Last year, VinFast stated that it was delaying the opening of its North Carolina factory until 2028, which will allow the company to optimise its capital allocation and manage short-term spending more effectively, focusing more resources on supporting near-term growth targets and strengthening existing operations.

The company is expanding its strategy in India, Indonesia, and the Philippines, where EV infrastructure is developing rapidly but competition from domestic brands is limited. Experts said that in order to sustain long-term growth, it needs to compete with Chinese manufacturers and prove its competitiveness beyond its home market.

VinFast is scheduled to open factories in Subang, West Java and in the southern Indian state of Tamil Nadu this year. The plan to expand into India aims to seize growth opportunities in the world’s most populous nation and rapidly expanding EV market.

On February 28, VinFast and Motech Automotive Service Centres, through its franchisor and operator in the Philippines, signed an MoU on expanding the service network for VinFast’s EVs in the market. The agreement aims to meet the increasing demand for EVs among Filipino consumers, while affirming VinFast’s long-term commitment and determination to utilise green transformation across the region.

VinFast and Motech will collaborate to accredit over 60 Motech service workshops as approved VinFast service centres. In the Philippines, these service centres will have the authority to handle VinFast EV maintenance, warranties, and repairs. This year, VinFast intends to open over 100 similar service workshops throughout the Philippines.

In 2025, the company has set the ambitious target of doubling sales to around 200,000 EV globally after announcing impressive results in 2024, with 97,300 EVs sold globally, of which about 87,000 vehicles came from the domestic market.

Project

M&As in crucial sectors poised for rapid expansion

Published

9 hours ago

March 12, 2025

Industrialzone.net

Following the downturn, Vietnam’s merger and acquisition landscape is set to gain momentum in 2025, driven by spearhead industries from technology to manufacturing. Julien Curtet, partner of Index Partners, shared with VIR’s Thanh Van his insights into the overview and the prospect of the market.

How do you see Vietnam’s merger and acquisition (M&A) market affected by global market volatility?

M&As in crucial sectors poised for rapid expansion

Julien Curtet, partner of Index Partners

In 2024, global M&A activity rebounded, reaching approximately $3.5 trillion (a 15 per cent increase from 2023) with around 7,500 deals above $30 million. Corporate acquisitions rose by 12 per cent, and financial investor activity surged by 29 per cent, driven by private equity amid easing interest rates. Key sectors included technology, energy, financial services, and telecom.

Vietnam mirrored global trends with notable M&A activity in technology, energy, and industrial sectors, supported by a resilient macro and rising foreign investment.

In 2024, Vietnam’s M&A market experienced a downturn in transaction value, influenced by global economic uncertainties stemming from geopolitical tensions and currency fluctuations. However, deal volume reached around 160 transactions in the second half of 2024, marking a 25 per cent rise from the first half of 2024 and a 32 per cent jump from the second half of 2023, signalling a strong recovery trend and positive momentum for future growth. Some key deals in the second half of 2024 were Masan’s acquisition of an additional 7.1 per cent stake of VinCommerce from SK Group for $200 million, KIDO’s acquisition of Hung Vuong, Nvidia’s acquisition of VinBrain, and SK Group’s $300 million acquisition of Iscvina Manufacturing.

Mid-cap deals up to $25 million dominated Vietnam’s M&A market, accounting for just over half of total deal volume despite a 28 per cent drop in total transaction value. Mid-size transactions in the second half of the year included ADA’s acquisition of Customore and Elan’s $8.89 million acquisition of TMC Vietnam.

Could you shed light on some key drivers for the Vietnamese market in 2025 and beyond?

In 2025, it is set for strong growth, driven by key sectors such as infrastructure, technology, consumer, and manufacturing. Infrastructure will see a surge in investment, particularly in transportation and logistics, supported by government initiatives.

The technology sector is poised for rapid expansion, fuelled by favourable policies and accelerating digital transformation. Consumer spending is expected to rebound from a low base, signalling a recovery in the consumer sector.

Meanwhile, the manufacturing sector, which contributed over one-quarter of GDP in 2024, is projected to grow by 10 per cent in output, supported by new industrial zones and increased foreign investment.

The market is set to accelerate in the second half of 2025, fuelled by stable global interest rates and rising investor confidence.

Vietnam’s strong economic momentum, pro-investment policies, and booming sectors like technology, manufacturing, infrastructure, and recovery of consumer will drive deal activity, cementing its status as a key M&A hub in Southeast Asia.

How do foreign dealmakers approach strategies amidst global economic uncertainty, especially tariffs and new US policy?

Foreign dealmakers are reshaping their M&A strategies. Despite the challenges, Vietnam remains a key destination for cross-border investment, driven by its rapidly expanding technology, consumer, and manufacturing sectors.

Vietnam is rapidly advancing its technology sector, emerging as a significant player in the global digital landscape. Its commitment to technological innovation is evident through key partnerships, such as the collaboration with Nvidia to establish AI research and data centres in the country.

To further entice high-tech investments, the government offers substantial incentives, including up to four years of tax exemptions and a 50 per cent tax reduction for the subsequent nine years, as well as financial support from national sci-tech development funds.

Additionally, Vietnam’s consumer market is expected to recover in 2025, fuelled by a rising population, and increasing disposable incomes, boosting demand for goods and services. With consumer confidence rebounding and spending accelerating across sectors, Vietnam’s consumer market is regaining momentum as a vital driver of economic growth.

Vietnam is emerging as a manufacturing and logistics hub, attracting foreign investments due to its competitive labour costs (20–50 per cent lower than regional peers) and a 9.8 per cent increase in manufacturing output in 2024. An “anything but China” strategy is driving multinationals to shift production to Vietnam.

The country is also benefiting from major infrastructure projects, including the Long Thanh International Airport and deep-sea ports in Haiphong, are strengthening its logistics position, while expanding industrial areas and cross-border e-commerce fuel growth in both sectors.