Coworking &

Flexible Workspace
in Vietnam
2022
A Market Insight Report by Acclime Vietnam,
supported by Knight Frank
 TABLE
OF
CONTENTS
 Flexible workspace in Vietnam.
1 Mapping emerging coworking
dynamics.
pg. 4

2 Sector outlook and positioning.

pg. 10

Marketplace analysis and the value

3 proposition.
pg. 16

4 Operators and growth potential.

pg. 22

Regulatory framework and the

5 practical story.
pg. 31

User-centric experience and the power

6 of occupiers.
pg. 34

Shaping the future of work.

7 Hybrid is the new flexible?
pg. 38

References & Engagement team.

pg. 40

3
1
Flexible
workspace
in Vietnam.
Mapping
emerging
coworking
dynamics.

4
T
he work environment and hybrid, agile work
models play a crucial role in the future success
of any organization, and Covid-19 has become
the accelerator for one of the greatest workplace
transformations of our lifetime. How we work,
learn, communicate, and of course, where we work,
is changed forever and Vietnam is no exception.
Due to the severe impact of the outbreak in 2021
and its impact on businesses models across the
word, the flexible workspace and coworking models
have pivoted from being just a popular trend in the
start-up ecosystem towards being the cornerstone
of how we interact, work and socialize in the
international business markets.
Number of coworking and flexible workspaces
in 3 largest cities in vietnam, 2020-2021
Hanoi
Danang
Ho Chi Minh City
(Source: Acclime Vietnam’s internal research)
5
In Vietnam, due to continued economic
expansion, the increase in startups and SMEs,
and changes to traditional office models, it has
become more difficult for businesses to find
appropriate office space in central areas such
as Hanoi, Danang, and Ho Chi Minh City.
In a world where human productivity has a deep
correlation with the workspace environment and
culture, and where the office location becomes
more and more important in regard to business
operations and efficiency models, it is essential
for international investors to gain a clear
understanding of the flexible office and coworking
space market in the region they operate in.
The rise of the coworking space culture has its roots
in the aftermath of previous recessions, which led
to an increase in the number of small and medium
enterprises and start-ups alike. This represents
one of the key premises for the fast development
of the coworking space model globally, which now
has become a mainstream organizational tool used
to increase productivity and efficiency, generating
fundamental changes in organizations’ structure.
The country’s focus to attract international
investors and open its doors to foreign trade has
generated a demand for office space in a relatively
short amount of time, thus also creating the
opportunity for the rise of the flexible workspace,
as a perfect alternative for businesses to enter the
market and have access to areas and locations
otherwise untouchable from a traditional
workspace perspective.
Popular trend becoming the cornerstone
of international business models?

The Vietnamese coworking market is growing Coworking

Coworking spacespace in Vietnam
in Vietnam by year by
exponentially as more and more people become year
Hanoi and Ho Chi Minh City (NLA sm)
aware of the benefits this niche brings from a
Cumulative Supply New Supply
business and productivity point of view.
160,000
140,000
In a study by Knight Frank, the cumulative 120,000
supply of coworking space was more than 13 100,000

times higher in 2021 compared with 2017, and 80,000

60,000
the new supply in 2022F is expected to nearly 40,000
tripple that of 2021, with a growth rate of 181% 20,000
year on year. -
2017 2018 2019 2020 2021 2022(F)

(Source: Knight Frank Vietnam)

Whilst initially it was a business culture

differentiation trend in Vietnam, flexible workspace
is now a valuable opportunity for developers and
operators who are seeking to enter the sector, as it
opens up their reach not just to startups and SMEs
occupiers, but also to multinational companies
which now are choosing coworking spaces over
more traditional locations.

Most coworking spaces and serviced offices in

Vietnam are located in metropolitan areas such as
Hanoi with 64 locations, Danang with 18 locations
and Ho Chi Minh city with 97 locations.

Apart from the large, global players such as Regus

who has operated in this sector in Vietnam for
over 15 years, Wework and The Executive Center
who have entered the Vietnamese market in
the last 3 years, smaller but popular and reliable
local coworking brands such as UpGen, cirCO,
Toong, and W Business Center are becoming a
strong force in the sector, competing with well-
established brands by taking advantage of a
better understanding of the local market needs,
community building opportunities, lower prices and
convenient locations.

This presents a significant opportunity for

(Source: Knight Frank - Research) investors to enter the market in Vietnam by taking
advantage of the chance to consolidate and
strengthen local brands in order to better compete
with the well-established providers.

6
 Vietnam overview.
Continent: Asia Area: 331,200km2
Region: Southeast Asia Coastline: 3,260km
Capital: Hanoi Population: 98,564,407 (31 December 2021)
The biggest city: Ho Chi Minh City Currency: Dong (VND)

GPIGDP
Growth rate & CPI, The global impact of COVID-19 in 2020-2021 was
GROWTH RATE & CPI 2012-2021
2016-2021
significant, with Vietnam being no exception.
GDP CPI In 2021 however, Vietnam experienced solid
8% economic growth across the year excluding the
7% third quarter. Prolonged social distancing applied
6% on a large scale to control the epidemic impacted
5% negatively the economic growth in quarter 3,
4%
generating a GDP growth of only 2.58% in 2021,
3%
2%
much lower than the previous year. This is still
1% considered a success in both epidemic prevention
0% and maintenance of production and business
2016 2017 2018 2019 2020 2021 continuity.
NUMBER OF NEWLY
Number ESTABLISHED
of new ENTERPRISES,
established 2016-2021
enterprises VIETNAM, 35 YEARS OF REFORM

Number of enterprises
Total investment (Billion USD)
150,000 120
2020-21
100
Succeeded in containing
100,000 80
Covid-19, maintaining growth
60
50,000 40
20
- -
Enterprises 2016 2017 2018 2019 2020 2021 Investment
Vietnam export and import 2016-
20212016-2021 (BILLION USD)
VIETNAM IMPORT & EXPORT, 2017 2018-20
Issued the first Signed free trade
Import Export resolution on private agreements: CPTPP,
$400 economy EVFTA, RCEF
$350

$300

$250

$200

$150 2016 2011

$100
Launched “start-up Reviewed,
$50
country” initiative restructured the
$- economy
0 2016
1 2017
2 2018
3 2019
4 2020
5 2021
6 7

TOP EXPORT SECTORS, 2021

Phones &
accessories
Others 25.98%
17.11% 2007 2009
Textile fibers and Issued the first Overcame 2008
fibers of all kinds resolution on private global economic
1.67%
economy crisis
Seafood Computer, electronic
2.64% products & accessories
15.11%
Means of transport
& spare parts
3.16%
Iron & Steel

1986
Other Machinery,
2000
3.51%
instrument, &
Wood & accessory
Wood Products 11.4% Launched stock Released Doi Moi
4.4% Footwear Textile & sewing market, & Signed US- (Reforms) Policy
5.28% products
9.74% Vietnam Bilateral Trade
Agreement
7
 In 2020, Vietnam’s GDP grew by 2.91%. At the same
time, imports and exports of goods and services
increased with 10.1% compared with previous
year. The top export destinations in 2020 were
United States, China, Japan, South Korea, Hong
Kong, and Netherlands. The US was the biggest
export destination with circa 77 billion USD, and
in 2021 the export destinations maintained their
positioning.

According to World Bank analysts, Vietnam’s

growth is explained by three main factors: Trade
Vietnam’s strategy of resilience Liberalisation, Domestic Reforms combined
with lowering the cost of doing business, and
Investments in Education and Human Capital
Under Covid-19, Vietnam earned a valuable market
development.
position in 2020 and 2021 by being among one of
the few economies across the globe maintaining
Vietnam has continued its commitment to
positive economic growth, continuing to attract
internationalise its economy by being a part of
foreign investment and keeping the number of virus
multiple Trade Agreements which offer investors
infections to a minimum.
commercial incentives and tariff reductions.
Vietnam joined the ASEAN free trade area in 1995
Over the last decade, Vietnam has experienced
and signed a free trade agreement with the US in
significant development, due to economic and
2000.
political reforms that drove the country’s growth to
new heights, transforming it into a medium-income
In January 2007, it participated in the World Trade
country with exceptional prospects.
Organisation (WTO) and is concluding several
free trade agreements in 2015-2019 such as EU
Recent changes and economic reforms, combined
– Vietnam Free Trade Agreement (EVFTA) and
with political stability and the government’s drive to
the Comprehensive and Progressive Agreement
engage Vietnam in multiple favourable agreements
for Trans-Pacific Partnership (CPTPP), and more
and treaties, have created an extraordinary
recently the Vietnam-UK Free Trade Agreement.
opportunity for international investors to take
advantage of the regional growth prospective and
focus their attention on Vietnam.

In 2021, due to the Covid-19 pandemic, the

country’s economy expanded only 2.58%, however
the economy grew with 5.2% year-on-year in the
fourth quarter of 2021, signaling a strong recovery
supported by continuous investments in the private
sector, in conjunction with the successful actions
of the local authorities to mitigate and contain the
health crises.

8
 Internationalisation
and trade openness is key

The country has signed a historical treaty with
European Union on the 30th of June 2019, boosting
trade and investment on both sides, and helping
Vietnam to further integrate into the global
economy and the international community.
In the EVFTA, Vietnam has increased its offered
benefits compared with the WTO in terms of
market access granted to EU service providers,
where additional sectors will be opened up for
EU investors. The EU has described the free trade
deal as “the most ambitious free trade deal ever
concluded with a developing country.” According to
the Ministry of Industry and Trade, the EU-Vietnam
Free Trade Agreement (EVFTA) has brought positive
results amid the surge of the COVID-19 pandemic
in both Vietnam and Europe with bilateral trade
that reached 63.6 billion USD in 2021, up 14.8% from
2020.
Foreign direct investment into Vietnam rose 9.2%
from 28.53 billion USD in 2020 to 31.15 billion USD in
2021.
Data released by the General Statistics Office in
Vietnam shows that as of December, 2021, FDI
disbursed 19.74 billion USD, a slight decrease by
1.2% over the same period in 2020. In perspective,
compared with the region and the EU, US
economies, Vietnam has overall managed to
maintain a positive economic growth and enabled
investors to take advantage of the market’s
opportunities, even in the Covid-19 conditions.
Within this complex, country-wide development
mechanism, enabled by sustained foreign direct
investment in most of the major business sectors
in Vietnam, flexible office spaces present an
attractive segment, not just from the operators’
vantage point, but also considering the standpoint
of developers entering the sector and creating a
healthy competition with the traditional office
models.
TOP 10 FOREIGN INVESTORS BY
COUNTRY,
Top 6 foreign investors2021
by country, 2021
Number of projects
Total investments (billion USD)

Among the most popular sectors for foreign 500 12

400 10
investors, manufacturing and processing accounts 8
300
for 48% of total registered investment capital, 200
6
4
followed by real estate, electricity production and 100 2
distribution, accommodation, and food services. 0 0
Based on the projected growth of the real estate Singapore South Korea Japan China Hong
Kong
Others

sector, the opportunities for developers to take

advantage of the momentum become more and
more attractive.

Vietnam
Vietnam foreign
foreign direct direct investment
investment (Billion
2016-2021 (billion USD)
USD)
Registered Disbursed
40 38.0
35.9 35.5
35 31.2
28.5
30
25 20.4
19.1 20.0 19.7
20 17.5
15.215.8
15
10
5
0
2016 2017 2018 2019 2020 2021

9
2
Sector
outlook
and
positioning.

10
 F
lexible workspace has turned into a global
industry, enabling a fundamental shift in
the way companies interact and do business
around the world. According to Coworking
Resource’s coworking space worldwide data, there
are currently over 23,548 coworking spaces around
the globe, an increase of over 20% compared with
last year.

It is a well known fact that coworking spaces are

rapidly expanding in Southeast Asia due to the
region’s fast-growing economies and tech-savvy
population. The high internet penetration in
Southeast Asia along with the rapid development
As
ia

of e-commerce are key drivers which explain Eu

the exponential and sustained rise of flexible
ro
pe

workspace. No
rt
h
Am
Globally, the Asia Pacific region accounted for 30%
er
ica
of all coworking spaces.
So
ut
h
Am
er
ic a

Af
North
ric
a
America
Europe
O
24%
ce
an
ia 30%
Ce
tr n
al
Am South
er America
6%
ica

Africa
Asia 5%
Nu
30% be
m
ro
Oceania, 3%
fC
W
S Central America, 1%
by
Co
nt
Based on an analysis from Statista, Singapore is
in
en
currently home to the largest start-up ecosystem t
in the ASEAN region, followed by Malaysia,
Philippines, Thailand, Vietnam and Indonesia.

With a continuous flow of direct foreign

investments and mergers & acquisitions –
Southeast Asia region aggregates cutting-edge
technological innovation with infrastructure
development and state driven digital initiatives,
thus laying the underpinning for the rise of flexible
workspace demand.

11
Flexible vs traditional.
Cross-functional competition?
Ho Chi Minh City, Vietnam is one of the most
attractive destination for investors due to its fast-
growing economy. The city is also considered the
biggest market of flexible workspace in Vietnam.
According to Knight Frank, in 2021 the total market
supply reached 135,486 NLA sm, increased by 4%
from the same period last year. New supply is
projected to have a twofold increase in 2022, with
many companies seeking to use flexible workspaces
for developing their hybrid work strategies in the
future.
As the pandemic significantly disrupted supply
chains across the world for the last 2 years, with
China being one of the most impacted markets
due to its sizable position in the manufacturing
sector, investors have sought out to diversify their
production locations and expand into new regions,
in order to mitigate delays, blockages, price hikes
and other systemic risks within the cross-border
trade ecosystem. Therefore, the manufacturing and
logistics industries were a key driver for industrial
and traditional office space market in Ho Chi Minh
City, with major companies exploring opportunities
laid out by the shift in production from China to
Vietnam.
Under the current global situation of the Covid-19
pandemic, where both traditional and flexible office
space markets are going through a temporary
downturn, it is a high probability that in the coming
aftermath, the move towards flexible workspaces
will be reinvented by a sustained drive of the
digital economy and a more agile approach from
international enterprises.
12
Understanding growth and
leveraging opportunities
CoworkingResources states, following the regional
growth, that Vietnam is in the top 50 countries
worldwide by coworking growth per capita and
ranks 20th in the 20 largest markets by number of
coworking spaces worldwide. The country secured
0.1 new spaces annually for every 1,000,000
inhabitants.
Compared with Singapore, which has almost 5 new
spaces per million inhabitants, Vietnam has a long
way ahead. This is actually good news for investors
entering the market, as sustained development and
internationalisation are the underlying foundation
for the sector’s growth.
Furthermore, in a study by CoworkingResources, Ho
Chi Minh City ranked 41 of top 50 cities worldwide in
2019/2020, where every 47.5 days a new coworking
space was established.
International and local operators are expected to
boost the scalability of the industry, by engaging in
competitive strategies, partnership agreements or
business consolidation models.
From the user’s perspective, these are all beneficial
outcomes as market diversity and healthy rivalry
creates more added value and flexibility, bringing
down the overall office prices as well.
Vietnam among top 20 countries by number of
coworking spaces by APAC countries
700
600
500
400
300
200
100
0
Which trends stand out?
Foreign and local operators solidify their positions
in the market
The flexible workspace market in Vietnam has
experienced significant expansion, especially in
central hubs such as Ho Chi Minh City and Hanoi.
This development has made the sector highly
attractive to international providers across the
world, which view Vietnam as a fecund business
market, expecting high returns with relatively low
risk.
Between 2020 and 2022, the pandemic has put
a stop on expansion plans from foreign investors,
however existing players in the Vietnamese market
represented by flexible workspace brands such as
WeWork, The Hive, cirCO, Toong, Dreamplex, and
UPGen have been solidifying their coverage in Ho
Chi Minh City and Hanoi. However, due to Covid-19
and its impact on the market, some of the providers
have paused their expansion or downsized,
adopting a more risk-averse strategy.
This trend is seen to increase further in 2022 due to
the high market growth rate, demand drivers and
also because of the structural mindset shift started
by the covid-19 pandemic, which pushed companies
not just towards swift digital transformation
adoption, but also made them view employee
engagement and flexible work communication as
key productivity assets.
13
Large enterprises are key demand driver
In 2021, aside from freelancers and SMEs who
already represent a considerable percentage
of the occupiers in flexible workspace locations
across Vietnam, the demand from large enterprises
is growing as they push towards digital
transformation and adopt a lean approach towards
employee engagement and flexible work benefits.
As coworking operators continue to develop their
signature product sets and scale new solutions
to improve their occupiers’ working condition, we
will see more MNC new entrants who have been
present in Vietnam with just a few key people
have the tendency to choose flexible workspace
operators, solving this way one of their major
problems: the relatively high price and limited
availability in the traditional workspace sector.
Hybrid work and employee-centric work models. The
new rising trends?
In the face of the new normal, many companies
have vastly revolutionised how they work. The
hybrid working model has been rolled out to provide
employees with the utmost flexibility when it
comes to working hours, office settings and cultural
engagement. A survey from McKinsey found that
organizations that introduced more specific policies
and approaches for the future workplace have
seen employee well-being and productivity rise. In
addition, data and technology play a crucial role in
embracing hybrid model. By using data, companies
can uncover insights about which groups of
employees are performing the best, their demands
for culture and community events or how to boost
their productivity.
Innovation & value-add
Enabled by technology, flexible office spaces are
now being built in premium buildings, using unique
architectural design models created to facilitate
engagement.
The value in numbers
According to Knight Frank, Vietnam flexible office
space in 2021 occupies approx. 135,486 sm in both
Grade A and B buildings in Hanoi and Ho Chi Minh
City.

Operators are re-thinking coworking spaces using Ho Chi Minh City and Hanoi
coworking space supply
HCMC and Hanoi CWS(NLA sm)
Supply
agile and lean working methodologies, thus
empowering down the line the tenants to further Hanoi Ho Chi Minh City
expand on this communication transformation
150,000
and start using the same innovative technologies
themselves. 100,000

Transformation in facilities such as interior gardens 50,000

and modern studios bring a high satisfaction
to customers seeking something different than
traditional offices. Other operators are adding
extra amenities including food and beverage
outlets(F&B), art galleries, game rooms, and bed &
breakfast to stand out from the crowd.
The biggest value-add for both large and small
companies to consider flexible workspace lies
in the flexibility to scale up and down, not
having to invest significant Capex, and having
their offices in a more vibrant environment
that aligns more with the mindset and needs
of young employees. It also gives companies
access to the communities that operators build
and maintain, connecting everyone together
through business matching, events, workshops
and social engagements.
0
2017 2018 2019 2020 2021
Some small-scale coworking space (coworking
spaces) chains with 1 – 2 locations in grade C
buildings have closed operations, and only Grade A
and grade B coworking spaces supply is standing
strong. Corporate tenants have adopted various
solutions, with some of them planned to leave
traditional office spaces (grade A and B) and
assigned employees to a hybrid work model
with hot desks and dedicated desks. Looking at
demographics, the users of small-scale coworking
spaces are typically in the marketing, IT industries
and freelancers and gen Z as well, while college
students have a tendency to demand private offices
and dedicated desks for up to 6 months.

14
Key operators and scalable locations
As the market growth rate of flexible workspace
develops sustainably, numerous providers have
emerged in the sector and have expanded rapidly.
Along side well-established local providers such
as Dreamplex, UPGen, cirCO and Toong who have
aggregated their brand with local communities,
foreign brands Regus, The Executive Center,
Wework, account for an increasing proportion in the
market, with several locations in central areas like
Ho Chi Minh City and Hanoi and future expansion
plans on the table.

In addition, global providers The Hive, and Compass

offices are believed to expand their locations in
Vietnam during the next few years, seeking valuable
consolidation opportunities and partnerships.

These market movements make the Vietnamese

flexible workspace sector become extremely
competitive, but also innovative, thus facilitating
new technological adoptions and high-quality
customer service delivery.

15
3
Marketplace
analysis
and
the value
position.

16
Demographics and habits Users and work efficiency
The flexible workplace occupiers consist of Based on these different user segments, coworking
freelancers, entrepreneurs, SMEs, and small regional space members approach their commitments
business groups / MNCs – international firms with in regard to length of stay in distinct but
high expectations and an affinity towards flexibility complementary models.
and lean work environment.
Freelancers and digital nomads tend to move from
place to place more often, therefore they prefer
Ent short-term packages that allow them to work in
r ep
Es re various locations across Vietnam, putting more
emphasis on flexibility.
SM

ne
urs

COWORKING Gen Z will soon surpass millennials to become

SPACE
the most populous workforce in Vietnam in the
sses

MEMBERS
following years. Comfort and flexibility are the
Fre

sine
ela

most important criteria for choosing the right

Bu

ce
al

n
n

rs gio
MNCs
/Re workplace. Gen Z usually demand modern, creative
spaces equipped with high focus areas designed
for individual work and online collaboration as well.
(Source: Acclime Vietnam’s internal research)
Most importantly, entertainment and food options
are seen as a must to release stress and promote
MNC tenants are choosing more and more
physical and mental well-being.
coworking and flexible workspaces for their large
teams, benefiting from a higher degree of flexibility
On the other hand, SMEs and MNCs still retain a
compared with traditional offices. This trend
corporate mindset and prefer more standardized
signals an ongoing shift in changing the nature and
packages and longer term contracts of at least 1 - 2
structure of the establishment.
years with fixed workplace zones that allow their
employees to focus and work in teams to increase
Productivity in flexible workspaces is one of the
their productivity. This need to balance the best
main drivers for the demand, along with facilities
of both worlds - traditional office and engaging
and price. Occupiers discover that their employees
Coworking spaces - is reflected in WeWork’s
interact and communicate more effectively, thus
enterprises floors in both their locations at Etown
improving productivity and lowering stress levels.
Central and Lim Tower 3, and Dreamplex’s focus
on fully private, unbranded, and customizable
The interaction between different departments
enterprises HQ’s in their upcoming District 2 and
from the same firm within a specially designed
District 4 expansion.
open space nurtures the opportunity for employees
to learn new sets of skills from their colleagues, by
being in contact with their peers and a part of a
community, not just a work area.

Flexible offices are not simply a place of work, but

a community-focussed hub, where occupiers can
interact with each other in an organic way, forming
new social and professional habits, as they discover
new ways of communication.

Coworking spaces enable occupiers to create these

new habits within organisations, by providing
platforms for business and social events as well as
activities which strengthen their communities and
improve the occupiers’ personal and professional
knowledge.

17
Market segmentation
In Asia, the flexible workspace model has become
highly competitive, with hundreds of thousands
of locations competing to attract prospective
occupiers. Under consistent pressure from the
growing demand for quality and innovative services,
operators need to understand the local market
segmentation and the changing needs of the
occupiers.
As the demand curve elevates, the market will see
competition heating up, challenging operators to
provide an even more innovative workplace to get
ahead of their competitors and win market share.
A large percentage of the flexible workspace user
market share is represented by small businesses
with relatively young workforce, who are seeking
access to a new type of workspace. A new
community spirit connects them together under
a similar growth culture and set of values, where
entrepreneurs and young businesses can compete
and thrive together in a modern and open work
environment.
18
The Sentry is an asset manager of complete Grade
A buildings and smaller standalone locations
which provides flexible workspace solutions with a
significant community angle as well. According to
them
More and more corporate occupiers, large
groups such as international insurance firms
like AIA are moving towards this type of
community-based working within their own
traditional offices premises to encourage
creativity and remote based working.
The young workforce - gen Z and millennials are
eager to work in creative environments, surrounded
by like-minded change-makers, enabling them
to leverage opportunities to discover, connect,
and collaborate in new ways. With the smaller
businesses catered to, operators focus extensively
on supporting the MNCs growing expansion.
The old ‘status-quo’, where coworking spaces were
dedicated and created to serve freelancers, part
time workers and small businesses that cannot
afford a traditional office, is not just challenged, but
completely overhauled from the ground up.
Large corporations are moving their traditional
workspace to take advantage of the robust market
which holds record low vacancy rates across A & B
grade stock. Regional and global flexible workspace
operators have an opportunity to enter the market,
fuelled by increased demand from multinational
companies and supported as well by low vacancy
rates in traditional workspace.
Under the current office market circumstances,
coworking spaces provides an immediate and
flexbile solution for many enterprises, especially
foreign MNCs, by allowing them easier scalability in
terms of workforce and business operations than
traditional office.
 In 2021 Vietnam achieved a 2.58% GDP growth,
and has become one of the more sought out
investment locations in Asia and throughout
the world. MNCs continue to grow aggressively
via foreign investments in Vietnam, thus
incoming enterprises face difficulties in finding
space for their workforce and projecting an
accurate employee growth count.

Availability and supply in prime city

hubs
Since becoming an alternative option to traditional
office needs from 2016 until now, coworking is
expected to grow alongside traditional office
market due to high demand from enterprises.
COWORKING MARKET - A&B
Office market
SUPPLY - Total grade A
(TOTAL M2& BAREA)
supply (NLA sm)

Hanoi Ho Chi Minh City

Hanoi A&B Office HCMC A&B Office

4,000,000

3,000,000

2,000,000

1,000,000

0
2017 2018 2019 2020 2021

(Source: Knight Frank Vietnam)

Along with Ho Chi Minh city, coworking space supply

in A & B buildings in Hanoi has also grown from
27,896 to 53,037 sm in the period of 2017 to 2020.
In 2022, Hanoi coworking supply is predicted to rise
due to the continuing high demand.

19
Major openings and key operators
The coworking space market in Vietnam has expanded
consistently in recent years and not only major local
operators like Toong, UPGen, cirCO, and Dreamplex,
but the number of small operators with just only one
venue like Leopalace21, Vuong Tron Giac, Spiced are
also increasing considerably.
Due to the Covid-19 outbreak, several flexible office
operators deferred their expansion and instead waited
for economical stabilization. Along with challenges,
opportunities arose with well-established operators to
leverage market slowdown and seek to acquire smaller
coworking spaces operators under pressure.
Some operators have been able to grow based on
high demand and a well-crafted expansion strategy.
Dreamplex continued to strengthen their portfolio
with the new location in Thao Dien, District 2 in 2021
and another recent launch of their The Campus in
District 4 with over 1,000 sm with outdoor and garden
space, which aims to stimulate wellbeing, creativity,
and engagement. Further pipeline for expansion in
District 1, 2, and 4 has been planned since late 2021.
20
20
Locations and market share
Ho Chi Minh City is one of the main markets for
coworking spaces in Vietnam, accounting for 60.9%
of total coworking spaces supply. Most coworking
spaces in the city is centralized in District 1 with
some operators expanding to fringe areas of Thu
Duc City (District 2) and CBD-fringe (District 4, 5,
and 10).
According to research from Knight Frank in 2021,
UPGen is considered the largest coworking spaces
operators, accounting for ~19.5% of total supply in
Ho Chi Minh City.
During the pandemic, WeWork closed their Sonatus
location in 2020 while other operators such as
UPGen, Regus, and Toong have been planning their
pipeline in Ho Chi Minh City for the upcoming years.
Overall, the flexible workspace supply in Ho Chi Minh
City accounts for nearly 6% of total office supply,
coupled with high annual growth of total coworking
spaces supply. Therefore, coworking spaces are
considered attractive for potential investors and
prospective new operators.
 Number of coworking space locations

60% 30% 8% 2%

Ho Chi Minh City Hanoi Danang Others

(Source: Acclime Vietnam’s internal research,

estimated data)

Hanoi is the second largest economic centre in

Vietnam, where the percentage of coworking
space supply in the city is 6% from the total office
space supply. Most coworking spaces are located
in grade A & B buildings which provide occupiers
with elite workspaces and a highly professional
atmosphere. UPGen, Regus, and Toong are some of
the most prominent spaces in Hanoi market with
contribution up to 32%, 13%, and 12%, respectively.

Danang is the central business hub of Vietnam

with a steady developing economy in the past few
years due to high foreign investment growth and
infrastructure development. These circumstances
allow Danang to develop its flexible workspace
market after Ho Chi Minh City and Hanoi, with
local operators such as DNES, Enouvo Space, and
IoT Space leveraging their potential by maintaining
close relationships with local community, supporting
business events, and participating in start-up
incubation programs.

21
4
Operators
and
growth
potential.

22
22
IN
an ever-changing market where the
competition between traditional and
flexible workspace is becoming more
dynamic, it is paramount to understand and
differentiate the core attributes that define the
coworking and flexible workspace model.
What are the advantages over
traditional office?
Cheaper rent and lower maintenance fees
One of the essential factors that make coworking
spaces an ideal choices for enterprises is lower rent
compared to traditional office. Coworking spaces
operators often negotiate long-term deals with
landlords to maximize their designed spaces for
optimized fit-out planning which can affect rental
yield.
Furthermore, enterprises and individuals working
in flexible offices can share amenities, furnitures,
and office supplies. Coworking spaces operators
offer these fit-out features and other value-added
services such as mail services, administrative
tasks, office supplies services, internet fees, and
even business processing support to attract their
occupiers.
Demand customization
One of the key benefits of flexible workspaces
is their ability to customize space for different
occupiers’ needs. Some occupiers who are start-ups
and freelance project teams may require private
office for privacy, focus, and productivity while
other individuals may enjoy open spaces with access
to common areas for community engagement.
Overall, flexible workspace still emphasize a sense
of community to better enhance corporate culture,
increase connectivity, and improve productivity.
When occupiers grow in scale, coworking spaces can
accommodate their expansion seamlessly by letting
out the exact additional areas which occupiers
need. In addition, for freelancers or long-distance
employees who don’t work in one permanent place,
flexible workspaces with a wide regional coverage
can offer packages which allow their members to
access all of their locations.
23
Collaborative environment and community
engagement
Within the highly innovative and growing
shared-space work model, members can easily
find new collaboration opportunities or build
new relationships with their peers. Most of the
coworking spaces in Vietnam are highly active
through organizing various community activities
and events such as panel discussions, seminars, and
workshops that leverage industry experts and their
extensive network to share valuable insights.
Dreamplex is one of the forefront promoters
of employee engagement as the cornerstone of
the new, post-pandemic work model, by using
consistent and effective activities such as wellness
workshops, business circles, development seminars
and creative events. Recently, the company has
launched a digital platform named FlexOS, that
allows companies to manage hybrid workplaces
without having to build the technology and content
in-house. It also supports companies with all the key
challenges hybrid work presents, such as managing
flexible workspaces in their existing offices,
measuring and incentivizing hybrid policy adherence,
and driving engagement through data-driven
personalized online and offline events and activities.
The term lengths of traditional office space
have long been a cause of stress for early
startups and entrepreneurs navigating their
business operations in their first few years.
Flexible offices offer timely solutions by
allowing occupiers to move straight in, scale
their space according to their headcount,
budget accordingly with an all-inclusive cost,
and stay flexible with much shorter contracts
than typical traditional office lease. Especially
for start-ups who don’t know what their
headcount is going to be in a year’s time,
having that level of flexibility is imperative
for their ability to either grow or downsize if
needed.
Leo Nguyen
Director of Occupier Strategy & Solutions,
Knight Frank Vietnam
Identify potential weaknesses and
evaluate their impact
Lack of enterprise brand identity
Coworking spaces might not always offer occupiers
the chance to personalize their respective branding
within their workspace in terms of choosing their
preferred furnitures and furnishings. Internal and
external company signage for respective enterprises
are only available upon different coworking spaces
operators’ permission and branding.
Sharing facilities
Flexible workspaces provide common amenities for
all occupiers. Thus, occupiers may have conflicts
with each other schedules in terms of booking
meeting rooms, using printers, allocating parking
spaces, and overlapping many other shared
services.
Distractions and lack of privacy
Even though community events and networking
activities provide a significant advantage to the
coworking space members, for certain companies
active in specific fields (i.e. customer service,
consulting) these may also pose a high level of
distraction, especially when they require a high level
of privacy for the staff.
24
Window of opportunity. Challenging
the status quo
Flexible space in Vietnam is not only an
important tool for corporate occupiers
looking at more hybrid-driven workplace
models, but also to the growth of Vietnam’s
impressive start-up scene. 5 months into 2022
alone, Vietnam recorded newly-established
enterprises to reach 62,961 enterprises with
total registered capital in Q1 2022 recorded
471.2 trillion VND. Many will register their
company with and occupy flexible office
space. We expect the entrepreneurial nature
of the Vietnamese population to continue
to underpin the need for great flexible space
and this, of course, will be supplemented by
multinational corporations who are continuing
to both expand in and arrive as new market
entrants to Vietnam.
Alex Crane
Managing Director,
Knight Frank Vietnam
With opportunities abound driven by market
demand, major providers such as Regus, Compass,
and WeWork have entered and continued to expand
their footprint in Vietnam to compete with local
coworking spaces. Thus, creating many value-added
options for prospective tenants’ office needs.
Vietnam has the advantage of a young workforce,
where people under the age of 35 account for over
50% of the total population. In combination with
the fact that the country is one of the fast-growing
startup and SME environment in Southeast Asia,
operators active in the coworking space industry
and new entrants in the sector can leverage on
these market attributes, creating and building
innovative spaces for a thriving and creative
business community.
 Key agreements / organisations that Vietnam has
signed / joined to facilitate foreign investment

signed to world’s largest

commercial treaty: RCEP
2020

signed a treaty with

European Union
2019

signed the CPTPP

(Comprehensive and Progressive
Agreement for Trans-Pacific Partnership)
2018
joined the World Trade
Organisation (WTO)
2007

signed a free trade

agreement with the US
2000

joined the ASEAN

free trade area
1995

As of 2021, Vietnam has signed 15 Free Trade In 2019, Vietnam was in top 50
Agreements, and the total number of Vietnam’s countries worldwide by ‘coworking
trading partners in FTAs is 56 economies, including space growth per capita’, however the
55 countries and 1 territory, a testament to the number of coworking spaces in the market
nation’s efforts to further integrate into the world is still considerably lower compared with top
economy. countries like Singapore, Hong Kong, Malaysia.
This situation means that Vietnamese coworking
These agreements make Vietnam a highly space market still has plentiful spaces to grow.
attractive market as foreign investors can benefit Under these preconditions, the are obvious business
from the international regulations and best considerations for investors to look into and
practices that are implemented by the participating consider the coworking space market in Vietnam,
members. where there are clear signs for rising demand, low
supply and growth opportunities.
The relative political and economic stability,
together with legislative processes to encourage
foreign investment (whilst still protecting domestic
and state enterprises), have enabled foreign
investment to grow across a broad range of
sectors and locations. Vietnam has also benefited
from political and economic instability of other
economies in Asia in recent years, with Vietnam
continuing to provide a credible investment
destination.

25
 Macro implications and barriers to
entry
Alongside opportunities, investors should be Hanoi office market
aware of the macro-economic and socio-cultural *Asking rents
Supply Vacant space Occupied space
challenges that govern the business environment in (USD psm
(NLA sm)
Grade A rent Grade B rent per month)
Vietnam and the flexible workspace sector.
1,800,000 40
1,600,000
Apart from the commercial aspect, international 1,400,000 32
1,200,000
investors should be aware of the compliance 24
1,000,000
and regulatory conditions specific to the real 800,000
16
estate sector, and ensure they are in line with the 600,000
400,000
authorities expectations in respect to licensing 8
200,000
requirements and corporate governance. - -
2017 2018 2019 2020 2021

At the end of this chapter we will delineate

and emphasize the provisions and regulatory
requirements for foreign investors seeking to enter
the coworking space sector in Vietnam.
Economic environment and sectorial limitations
The vacancy rate for the office market in Vietnam,
driven by Hanoi and Ho Chi Minh City, is low due to
limited supply in both Grade A and B buildings. The
low vacancy poses a challenge for both existing and
prospective operators to find suitable locations to
expand their footprint.
Ho Chi Minh City office market
Vacant space Occupied space
Supply
(NLA sm)
Grade A rent Grade B rent
1,600,000
1,400,000
(Source: Knight Frank Vietnam)
*Asking Rent is inclusive of Service Charge and exclusive of VAT
In addition, the fourth wave of Covid-19 epidemic
has affected the Vietnamese economy and the
coworking space sector in particular, which
experienced a setback when the authorities advised
businesses to adopt the work from home model
across the entire country, under social distancing
provisions in June 2021.
With many employees working from home,
coworking space operators faced a dilemma:
either continue their expansion and focus on
growth or take a moment to rethink their strategy,
pause the growth cycle and focus on improving the
*Asking rents
(USD psm interior design and upscaling their locations.
per month)
70
Social and cultural environment
60

1,200,000
50
1,000,000
As the coworking space industry in Vietnam is
800,000
40
expanding rapidly, the number of flexible spaces
600,000
30
per capita is still significantly lower compared with
400,000
20 regional peers Singapore, Hong Kong, Malaysia
200,000 10 etc. Consequently, the consumer awareness of the
- - concept is still moderate, as the majority of young
2017 2018 2019 2020 2021
Vietnamese citizens are culturally habitual to use
(Source: Knight Frank Vietnam) coffee shops as their work and study venues, which
*Asking Rent is inclusive of Service Charge and exclusive of VAT makes it difficult for coworking spaces to attract
new occupiers in the short term.

26
Competing against each other or
thriving together?
Direct and indirect competition

Vietnamese coworking space market is one of the For Dreamplex,

most dynamic and innovative industries, with a
There’s a reason why companies like traditional
significant growth potential and profitability.
offices. They provide a professional look,
To leverage on this growing trend, coworking space
give full privacy, and are a place to bring the
operators have to find and express their unique
company brand and culture to life. What we
value proposition, ensuring they stand out from the
are doing with our new locations is to combine
norm and are ahead of their competitors.
those qualities with the attractiveness of
a coworking space: a vibrant environment,
The vast majority of the Vietnamese working class
well-designed spaces, lots of choice to fit
are used to work in traditional corporate offices,
every personality and working style, and a rich
coffee shops, universities and public libraries. The
program of employee experience activities.
cultural and historical characteristics of the labour
Your private office then just happens to be
capital in Vietnam echoes in the flexible workspace
within this lively, exciting campus that your
market, where operators have to compete not just
employees love going to.
with traditional offices but also with a variety of
indirect, unconventional providers.

Where authenticity and innovation play a

Dreamplex believes they will compete with
cornerstone role in today’s extremely dynamic
traditional office spaces by bringing them into “a
market, operators have to create their own specific
better office building”.
competitive strategies to set themselves and their
occupiers apart from apart from other types of
workspaces.

27
 (i) “Private, Branded Offices: starting in 2021,
Dreamplex locations are very lightly branded.
Instead, the occupier’s logo and brand are
central. For guests visiting those companies,
there are little cues the company is housed in
a flexible office – other than from the vibrant
ground floor that oozes energy and excitement.
Gone too are the long corridors of glass walls
that provide no privacy. Instead, offices are
as private as in traditional office buildings,
while they’re designed for each company’s
specifications, needs, and culture.

(ii) Hospitality-Level Care: as ‘serviced offices’

have become a commodity, Dreamplex
Different is better?
elevated its offerings to 5-star care. Their
dedicated Member Experience team is trained
Mirroring their client’s personas, needs and
in hospitality and understands that now more
values, coworking spaces in Vietnam shape their
than ever, it’s the human touch which makes the
environment, culture and services to match their
biggest difference. Companies can bring their
direct audience.
(large) teams, and leave the daily care to these
hospitality experts. This is especially attractive
The layout and decoration is one of the essential
for international companies who don’t have
elements, however it is not the benchmark for
strong local leadership or HR teams present.
constructing a successful market positioning and
brand. Most operators agree that the coworking
(iii) Employee Experience: the office and the great
space is beyond the workspace itself, which only
care are just the starting points. Dreamplex has
provides for its members a physical location, coffee
built an Employee Experience team that works
and Wi-Fi. What is more important is the specific
directly with large customers like Tiki, Topica,
culture of the environment, which becomes the
and others to deliver a world-class Employee
cornerstone of each unique value proposition.
Experience without any additional HR resources,
budget, or time. This includes social events for
As a result, operators leverage on their own,
team-building, creative workshops, training &
particular competitive advantage to attract
development, wellbeing programs, and more.
occupiers in their physical space and community
network. Their focus is not only to increase the
number of occupiers but also to enhance the
service quality and the additional benefits for
the members, so that the client retention value is
consistent, based on genuine loyalty.

“The biggest reason why companies still pay for an

office is because when done right, it can be
a strategy tool to attract, engage, and retain the
best talent. We design and deliver engaging
workplaces that create ‘a Better Day at Work’ for
the employees of medium and large
companies in Vietnam.” explains Dreamplex. They
differentiate their “outsourced workplace
experience” service through 3 core pillars:

28
28

To differentiate themselves from other providers,
The Sentry does not classify itself as coworking but
a flexible office provider, offering medium to long
term commitments and cost-effective occupancy
solutions to ensure a true stable community as
opposed to hot desks and monthly rental as other
providers in the market would do. By doing so, The
Sentry has managed to achieve high occupancy,
demand and low turnover with most members
remaining long term occupiers.
As Greg Ohan, CEO of The Sentry explains, “The
Sentry is unique as we focus solely on sector
clusters and provide bespoke solutions for certain
industries only. Our flagship location at Sonatus
Pricing and forecast
In Vietnam, flexible workspaces rental fees are
overall much lower when compared with Asia
Pacific neighboring countries.
Location is one of the key pricing drivers in the
market, where flexible offices located in grade A
buildings have higher fees than those in grade B,
grade C, and obviously the customer segmentation
plays a big role as well.
Coworking rental fees
Furthermore, the fees are higher in the main city
10
hubs, with Ho Chi Minh City leading the trend with
9.3
the highest rental fees in Vietnam. The price varies
8
from 1.8 million VND to 9.3 million VND monthly for
a6desk, with the average price6.5 at ca. 3 million VND

is considered a ‘Saigon Silicon Valley’ providing a per month for a desk located in a coworking space.
community for relevant occupiers with a focus in 4
Second in line is Hanoi, where the average rental
3
the tech sector - From Venture Capital to funding fees per month2.4 fluctuates around 2 million VND.
2 2 2 1.8
partners and finally to the startup themselves.” 1.2 1.2
0 Coworking rental fees for a dedicated desk
(million VND/month)
Market-share and expansion Danang Hanoi HCMC

Coworking
Lowest fee rental
Average fee fees
Highest fee
prospects - timing is critical
10
9.3
Covid-19 outbreak significantly impacted the real 8
estate and coworking space market, and the
6.5
aftereffects of the crisis can be seen in the 6
occupancy rates and demand. Several operators’
4
expansion plans have been put on hold in 2021, as
3
they were concentrating on customer 2
2.4
2 2 1.8
retention, support for affected businesses and 1.2 1.2
improvements in their service offerings. 0
Danang Hanoi HCMC
In 2022 however, the demand for the coworking (Source:
LowestAcclime
fee Vietnam’s internal
Average fee research)
Highest fee
spaces is considered to maintain a consistent
growth trajectory, in line with the systemic In comparison with the two largest cities in
changes in the way companies and their employees Vietnam, the price of flexible workspaces in
embrace digitalization, innovative work models and Danang is more affordable, creating a valuable
a more lean, versatile approach to labour. opportunity for freelancers, start-ups and small
entrepreneurs to set up their operations in the
As SMEs and multinational companies will continue coastal city, which has become one of the most
to shift their attention towards flexible offices, sought out hubs for technology related start-ups
to improve their culture and enhance their staff’s and digital nomads. A typical high-end price for a
working conditions, operators have to prepare in dedicated desk in a coworking space is 2.4 million
advance and ready their resources to be able to VND per month and in most cases, the average
leverage the demand boost post-Covid-19 and align rental fees are under 2 million VND per month.
themselves with the occupiers needs in a timely
way.

29
Future growth and innovation
Hybrid work and new work models have led
enterprises to search for new solutions to enhance
their staff efficiency. The coworking space industry
has the potential to address the changing needs
of enterprises, offering customization options
and cheaper costs which help enterprises boost
performance and save time. There is no denying
that coworking spaces will experience lucrative
growth in the workspace industry in the next few
years, despite the hindrance of the industry due to
Covid-19 in 2021.
Given the economic volatility and the uncertainty
regarding headcount projections within
organisations, enterprises should be more proactive
about reassessing their real-estate needs in the
long term. The coworking sector remains a relevant
and accessible partner, as companies rethink
their real estate portfolio and search for the
most engaging and efficient workspaces for their
employees.
As such, co-working spaces will continue to be an
additional resource for companies as we foresee
them taking into consideration factors such as
resource efficiency, lease flexibility, and mobilization
of their workforce in preparation for future
unprecedented scenarios.
30
The industry will develop more and more into
Workplace Experience as a Service, where
companies get more than just the bare office
basics. At its heart, this really is a service
industry and any offering needs to provide
real, differentiated value. Similar to consumers
having the choice to end their Netflix or
Spotify membership when they repeatedly
feel there isn’t much use in it due to lack of
new content, in WXaaS customer will come
to expect us to deliver them true, continuous,
value beyond just the flexible office space. It
will therefore be not only a question of scale
and price, but a true understanding of SMBs
and Enterprise needs – especially in how to
use their office as a strategic tool to recruit,
engage, and retain talent.
In Dreamplex’s vision, coworking spaces will also
integrate their technology systems to keep up
with the demand of the modern working trends
and bring the most flexible environment to their
members. The technology in coworking spaces will
go beyond performant computers and traditional
office utilities like printers, copiers. It will be
represented by digital platforms, cloud files, digital
signatures, and AI work assessment models which
can automatically match business needs with the
changing consumer demands.
5
Regulatory
framework
and
the practical
story.

31
Investment and legal challenges
Under the Law on Real Estate Trading, leasing
flexible office/coworking space can be considered
as a form of real estate trading activities, in
particular renting houses and building for sublease,
which has no limitation or restriction for wholly
foreign-invested companies in Vietnam to operate
such activities.
Additionally, compared to the regulations of Law
on Investment, the core market access conditions
applied to foreign investors include:
From a legal and compliance perspective,
to enter the Vietnamese flexible workspace
market, investors should be aware of
regulations and requirements. Although
there are various restrictions that need to be
carefully considered, if processes are followed
through in a compliant manner, operators can
leverage on the market’s opportunities, start,
and develop their business successfully.

• For legal capital, ownership ratio of charter

capital by the foreign investor (joint venture): No
requirements. Under the provisions of the new
Vo Thi Thanh Phuong
Law of Investment, investors are not restricted Head of Incorporation, Licensing and
by this minimum capital requirements, which Secretarial Services, Acclime Vietnam
formerly requires the amount of 20 billion
VND (equivalent to 805,702 USD) which has
to be identified in the Investment Registration What are the conditions?
Certificate(“IRC”) and the Enterprise Registration
Certificate (“ERC”). Hence, investors are able to Foreign investors are also required to present for
take advantage of the market’s opportunities approval a “project” at the initial stage of the
with much more ease and less restrictions. establishment process, as the licensing authority
• In terms of investment method: Investors can usually requires the project documentation as a key
perform under the forms as follows first step.
(i) establishing a company.
(ii) purchase of shares/stakes/charter Lastly, there are specific provisions regarding the
contribution. premise of the real estate project. As per Article 9.1
(iii) business cooperation contract (BCC of Law on Real Estate Trading, a building part of
contract). the real estate trading market should satisfy the
• Based on the scope of activity, the foreign- following requirements:
invested companies can perform the renting • The ownership of the building on land must be
houses and buildings for sublease. registered in the Certificate of land use right,
• There are no requirements for the capacity of the referred to as Certificate of land.
investor; partners participating in the investment • There is no dispute about the land and ownership
activities. of the building on land.
• The building is not distrained.
As for the process of establishing a foreign-invested
company in Vietnam can be somewhat different
to other jurisdictions, with the terms used and
specific requirements often confusing or difficult to
interpret. There also has requirements of premises
and location conditions, i.e the foreign-invested
companies must strictly comply with the provisions
of the law on land, construction, fire prevention and
fighting, environmental protection, other provisions
of the prevailing law and business conditions
applicable to other conditional business lines.

32
Steps to register a foreign owned
real estate trading company in
Vietnam
Assuming the preceding conditions are met, foreign After receiving the ERC, foreign investors must
investors are required to conduct two main steps in remit the registered charter capital within 90 days
order to establish a company for renting/subleasing from the date of the ERC issuance.
a serviced office space or coworking space in
Vietnam. Each foreign owned company in Vietnam must
appoint at least 1 Legal Representative. A Legal
Representative of an enterprise is an individual
IRC ERC who can exercise the rights and obligations for
and on behalf of that enterprise. Generally, only
a Legal Representative can sign contracts
for the company with other parties,
although Power of Attorney’s can
Step 1 Step 2 be issued to delegate certain
Application for an Application for an powers to others in the
Investment Registration Enterprise Registration organization.
Certificate (the “IRC”) Certificate (the “ERC”)

The first step is to register an “investment project”,

with this project becoming the initial purpose
of the foreign investor’s company. The resulting
Investment Registration Certificate permits the
foreign investor to commence the establishment
of their company in Vietnam. The IRC is akin to the
concept of “Foreign Investment Approval” in other
jurisdictions.

The second step refers to the application for the

Enterprise Registration Certificate, which shows
the business registration information of a company
established in Vietnam. This document is akin to the
“Certificate of Incorporation” in other jurisdictions.

33 33
6
User-centric
experience
and
the power
of occupiers.

3434
C
oworking spaces have become an
instrument that businesses leverage to
improve productivity, grow their corporate
culture and create a more inclusive environment
for their employees. The concept of being part
of a business community, aligning oneself to a
common work culture has enabled the workspace
transformation to take off, reaching out through
a horizontal growth model most of the core,
strategic management departments in a business.
Coworking spaces are now suitable not just
for freelancers and digital nomads, but due to
limitations in office space availability and the
competitive real estate market, the demand
has shifted to enterprises, especially SMEs and
multinationals.
In Dreamplex’s view, the notable trends that play
a significant role in the occupier’s decision-making
process are:
The shift from employer to employee centric
culture
• Building and maintaining culture as well as
keeping employees engaged isn’t a challenge
that’s unique to hybrid and remote work. What
it really comes down to is that companies have
to become much more intentional in how they
engage their employees.
• Designing programs that are fully tailored to
each individual employee will be critical, as is the
training of middle management to become highly
successful remote & hybrid managers.
• Data and personalization will play a key role,
especially in organizations over 200-300
employees. HR leaders will (need to) get smarter
about using data to uncover insights about which
groups of employees are performing the best,
whether it’s purely productivity and outputs
or ‘soft metrics’ like culture and community
contributions.
35
• Companies don’t want offices. They just want
productive workforces. Companies would love not
to have to pay for an office at all. Especially now
that employees are more excited about remote
work. It is the only reason companies need an
office to use it as a value-driver in terms of
community, connection, communication.
• Not to make the office be a money-sucking
empty box, companies focus much more on
the world outside of four walls like workplace
experience management.
The shift from office-centric to outcome-centric
organisational values
The pandemic, the emergence of a hybrid workforce
and the role of the workplace as a tool to attract
and retain talent are driving occupier demand for
flexible space in recent years. Many companies
choose shared offices to reduce long-term fixed
commitments in favor of space that provides them
with the flexibility to swiftly expand and contract
when needed to accommodate business needs.
According to Greg Ohan, CEO at The Sentry in Ho
Chi Minh City:
Community building is not for all sectors and
industries seeking office space. In the wake
of Covid-19, community demands for office
occupiers have shifted somewhat in other
markets whilst in Vietnam this still remains
strong particularly in SME’s and the startup
industry sectors such as technology and media
where young, dynamic workers and firms are
seeking inspiration and collaboration.
Greg Ohan
CEO, The Sentry
Power of occupiers User segmentation
The occupiers play an essential role along with cirCO demonstrates the growing trend of
developers and operators in the flexible workspace enterprises shifting towards flexible workspace:
industry, where their user personas generate
We serve a large variety of clientele, from
different demands and expectations that end up
startups, SMEs to big corporations. Shifting
shaping the market as a whole.
towards a hybrid work model is still the most
consistent and ever-growing pattern at the
The coworking occupiers are divided into two main
moment within all our client base. Flexible
groups: individuals (i.e. freelancers, digital nomads)
workspace is one of the effective solutions to
and enterprises (i.e. startups, SMEs, and MNCs).
implement a hybrid work strategy for most
The individual occupiers have high price sensitivity
MNCs.”
and seek to work in a dynamic and collaborate
environment so that they can connect and build
their relationships with other potential partners or
clients. The above metrics are in line with the overall
industry movements. Within the sector, we can see
On the other hand, the enterprise occupiers mostly a moving trend that clearly shows the multinational
focus on their privacy and professional environment companies competing for space with startups and
in which they can boost their staff’s work efficiency SMEs.
and improve their public image. Therefore, although
shared - workspace is a trend developing around The data further solidifies the optimistic prospects
the world, to adapt and shift from the traditional of the coworking space industry in Vietnam and its
workspace to a flexible one, most of the enterprises potential for growth in the future.
choose serviced offices as the first step.
This approach is confirmed by Toong as well:

Serviced office space rental is still the most

profitable service for Toong. The demand in the
market is still high, and as our spaces are well
designed for customer to establish or expand
their business, we are receiving consistent
inquiries for serviced studios.

36
From a workspace (office) perspective, I
see that companies will become more like
coworking space operators. Their offices will
have a wide range of working spaces that are
not assigned to anyone but freely available
to use. So that when an employee comes in,
they have the tools to do their best work.
This would include hot desks, collaboration
rooms, phone booths, but also more relaxed
and comfortable settings like a nice cafe,
some green space, and other informal seating
areas.

Also similar to a coworking space, companies

will have to invest more in hospitality,
community, and employee engagement.
Because when young Vietnamese can work
from anywhere, they need a clear and
compelling reason to work from the office.
This means collecting more insights about
the employees a company has, and designing
engaging content, events, and activities
for them. This is another area where more
and more employers are approaching us to
support them.

Daan van Rossum

CEO, FlexOS and Dreamplex

37
7
Shaping
the
future
of work.
Hybrid
is
the
new flexible?

38
IN
2022 and beyond, the digitalization and
automatization of work will continue
to expand, in parallel with the trend of
hybrid work which will become the benchmark of
productivity enabled working models. These factors
have become a key part in changing the status quo
of work models, culture, and workplaces alike.
It is time companies invest their time and
resources in helping their employees navigate
the path towards better productivity,
increased collaboration output, improved
mental health and a resilient sense of
wellbeing, belonging and self-worth. These
underlying factors will enable businesses to
be successful and grow together with their
employees in a consistent synergy.
It is expected that not only the demand for
technological skills will grow, but the need for
emotional, cultural, social intelligence skills will
flourish, bridging the gap between technology and
social interaction.
Within this framework, the flexible workspace
and coworking industry plays a cornerstone
part, enabling technology, digitsation and social
engagement to coexist and complement each other
in a common, efficient multi-functional space.
By doing so, it supports employees to maintain a
true work-life balance and have a deep sense of
connection in the evolving future of work.
Traditional workspaces are in a process of
redefining their identity, where the main change
drivers are digital transformation, remote and
lean work models. Employees demand flexibility,
social engagement and community benefits, and
years from now flexible workspaces will become
the norm.
39
Vietnam’s market positioning
According to The Sentry, “Vietnam’s flexible
workspace is still at the infancy stage, the use of
technology in the workspace is growing however
the future of work is not just an advanced hybrid
work system. There is no one box for all and the
future of work does not apply to every industry
equally. Each market and occupier have different
drivers and “the future of work” is a term used very
loosely. Covid 19 has made enterprises rethink their
real estate strategies particularly the investments
into capital expenditure and long leases.”
Supported by a consistent foreign investment flow,
a young, agile workforce, a booming economic
development, and new businesses sprouting up
nationwide, Vietnam is one of the most attractive
markets in the region for international investors and
operators looking at the flexible office space sector.
The growth potential is further confirmed by the
relatively low market penetration of the coworking
spaces versus traditional offices, enabling
international providers to consolidate their positions
and solidify their presence in Vietnam.
Despite the difficult headwinds caused by the
Covid-19, the real estate market in Vietnam is
speeding up its transformation and is set to create
the underpinning for the flexible workspace to
become an industry standard alongside traditional
offices, with a significant pivot on hybrid work,
digitisation and employee-centric community
engagement.
Research
references
&
Engagement
team.

40
Research references

Data and metrics were corroborated in partnership

with Knight Frank, a global real estate company
focused on guilding clients with strategic insights and
innovative solutions.

In addition, Dreamplex, cirCO, Toong and The Sentry also have

provided valuable information and specifics.

Additional research references below:

• The World Bank
• CoworkingResources
• Statista
• General Statistics Office of Vietnam
• Vietnam Investment Review

41
Engagement team.
If you have any questions regarding this study, please don’t hesitate to contact us.
VLAD SAVIN
Head of Business Development | Acclime Vietnam
Vlad is a business development and marketing
professional, who has resided in South East Asia for
the last 8 years. He has wide experience in personal
finance and corporate servicing, working with investment
firms in Malaysia and Vietnam, while having a strong
background in marketing, client service and events
with international exposure. Vlad has been developing
Acclime’s business strategy and growth, organizing and
creating seminars and workshops for the foreign and
local investor community in Vietnam, while assisting with
client relationships and the overall brand positioning of
the firm. Vlad graduated from Spiru Haret University
in 2006 with a Bachelor of Marketing and International
Relationships.
Email: v.savin@acclime.com
42
MATTHEW LOUREY
Managing Partner | Acclime Vietnam
Matthew is a qualified accountant who has resided in
Vietnam for over 17 years. He has extensive experience
working in Australia for Big 4 accounting firms and
investment funds, and since Matthew relocated to
Vietnam he has spent much of his time advising foreign
investors on successfully undertaking business in Vietnam,
corporate investment transactions, market entry and
corporate finance. He also currently sits on a number
of boards in Vietnam, advising as an independent non-
executive director.
Matthew graduated from Monash University in 1994 with
a Bachelor of Commerce and qualified as a Chartered
Accountant in Australia in 1997.
Email: m.lourey@acclime.com
Acclime Vietnam is a part of Acclime Group - a
premier corporate services provider in Asia with
presence in 11 jurisdictions covering Australia,
Cambodia, China, Hong Kong, India, Indonesia,
Malaysia, Philippines, Singapore, Thailand and
Vietnam.
With a focus on providing exceptional services to
international clients, Acclime helps corporates and
private clients seamlessly advance their businesses
and interests in difficult-to-navigate markets in Asia
and beyond. Our years of in-market experience and
deep knowledge helps our clients to avoid pitfalls and
make progress faster.
Acclime Vietnam is one of the most reputable and
trustworthy names in the corporate services sector in
Vietnam, with more than 130 staff working across 3
key cities: Hanoi, Ho Chi Minh City and
Danang, Acclime Vietnam has been assisting
foreign invested and locally owned companies to
enter, expand, operate and succeed in Vietnam,
while maintaining the highest level of professional
standards through proactive compliance, reporting
assistance and advice.
Acclime presence in Vietnam:
Ho Chi Minh City: Level 9, Lim Tower 3
29A Nguyen Dinh Chieu, District 1
Phone: +84 (28) 3535 8200
Hanoi: Unit 504, Level 5, Hanoi Tower
49 Hai Ba Trung, Hoan Kiem District
Phone: +84 (24) 6273 3589
Danang: Level 3, Indochina Riverside Tower
74 Bach Dang, Hai Chau District
Phone: +84 (236) 366 4662
Email: vietnam@acclime.com
43
Knight Frank Vietnam is a member of Knight Frank
Group - one of the world’s leading independent real
estate consultancies.
Knight Frank provides innovative property solutions
for their clients that add tangible value across
property sectors and services. Through deep
understanding of key markets and sectors – both
emerging and established – they are dedicated to
meeting and exceeding their client property goals.
Knight Frank Vietnam offers full­spectrum
commercial advisory services in a lucrative and
increasingly competitive commercial real estate
sector. Based in Ho Chi Minh City, they help local and
foreign owners, occupiers, investors and developers
in every aspect of owning, occupying, developing and
in commercial real estate across Vietnam focusing
primarily on core markets in the country’s two biggest
seats of business and commerce, Ho Chi Minh City
and Hanoi.
Knight Frank in Vietnam:
1Bis Pham Ngoc Thach
Ben Nghe Ward, District 1
Ho Chi Minh City
Phone: +84 (0)777 300 778
Email: vietnam@knightfrank.com
ACCLIME VIETNAM

Ho Chi Minh City:

Level 9, Lim Tower 3
29A Nguyen Dinh Chieu, District 1

Hanoi:
Unit 504, Level 5, Hanoi Tower
49 Hai Ba Trung, Hoan Kiem District

Danang:
Level 3, Indochina Riverside Tower
74 Bach Dang, Hai Chau District

t. +84 (28) 3535 8200

e. vietnam@acclime.com

vietnam.acclime.com