Coworking spaces enjoy 90% occupancy in Hanoi, HCMC: report

Coworking spaces in Hanoi and Ho Chi Minh City enjoyed a 90% occupancy rate in 2021, according to a report by consultants Acclime Vietnam and Knight Frank.

In HCMC, only about 100,000 sqm out of 1.4 million sqm, or about 7%, was vacant, while the corresponding figures for Hanoi were 200,000 sqm out of 1.6 million sqm, or 12.5%.

Average monthly rent for a dedicated desk was VND2 million ($85.5) and VND3 million in Hanoi and HCMC, respectively. The rates in Hanoi ranged between VND1.2 million and VND6.5 million, lower than the VND1.8 million and VND9.3 million in HCMC.

The report said that HCMC, with 97 coworking and flexible workspaces, accounted for the highest portion of coworking spaces in Vietnam with 60%; followed by Hanoi with 64, or 30%; and Danang with 18, or 8%.

Key players in the market include local firms like Dreamplex, UPGen, cirCO, and Toong; and foreign ones like Regus, The Executive Center and Wework.

It noted that the coworking real estate segment presents a significant opportunity for investors, given the country’s growing economy, working trends and the limited availability of space.

Vietnam’s economy has demonstrated its resilience with an annual growth of 6%-7% over the last few decades, only slowing down to 2.91% in 2020 and 2.58% in 2021 because of the Covid-19 pandemic, official data shows.

The post-pandemic economic recovery has led to a large number of SMEs and startups being established, and these businesses are looking for coworking spaces to reduce their capital expenditures.

The country licensed 76,233 new firms and recorded 40,667 rejoining the market in the first half of the year, or 116,900 in total, a record high.

Besides, the Covid-19 pandemic has given a fillip to the concept of hybrid work and flexible workplaces even for large enterprises.

The report listed Gen Z (born between the late 1990s and early 2010s) as a factor in the rise of coworking spaces. Gen Z, soon to become the largest workforce in the country, prefers modern and creative workplaces complimented by entertainment and food options. This would expand the market beyond traditional occupiers like freelancers and digital nomads, the report said.

Acclime Vietnam provides “professional accounting, tax, payroll, compliance, company establishment and advisory services” while Knight Frank offers “full­ spectrum commercial advisory services.”