VietNamNet Bridge - Finding rental premises in central business districts for co-working spaces is becoming more and more difficult.

The first co-working space in Vietnam, WeWork, the third largest startup in the US, is located on the fourth floor of E-Town Central building in district 4, just one bridge away from the central district 1.

The co-working spaces of CirCO are also set in advantageous positions on expensive land plots in the central districts 4 and 1.

Analysts say that more co-working space developers plan to open new shared offices. But they are competing fiercely for business premises.

Recently, the joint venture between Indochina Capital and Vanguard Hotels started the construction of Wink Hotel on Nguyen Dinh Chieu street in district 3. Toong’s co-working space will be set up there. 

In early 2018, Toong opened a co-working space on Nguyen Thi Minh Khai street in district 3.

Regus, a veteran player in the field, is also busy with new co-working space opening plans. 

Lars Wittig, CEO of Regus in charge of Vietnam, Cambodia and the Philippines, revealed that Regus is to open the first center with the Spaces brand. This will be a 10-storey building in an advantageous position in Hanoi.

Regus spaces in HCMC are also situated on ‘golden land plots’. It is now considering other venues, except ones in district 1. 

Regus has developed nine centers, including eight office and one conference center in Hanoi, HCMC and Da Nang since 1988, when it joined the Vietnamese market.

Wittig said the biggest challenge for Regus is finding new business premises, because luxury buildings have limited supply and are very quickly occupied.

Jones Lang LaSalle (JLL) confirmed the limited office supply in ‘hot spots’. It noted that while international developers such as Regus and WeWork (WeWork took over Naked Hub in April 2018) want to reserve premises at high-end A- and B-class buildings, Vietnamese developers tend to choose B-class buildings.

JLL also noted a growing tendency for more co-working spaces to open outside HCMC and in provinces. Wínk, a hotel brand, with the presence of Toong, will open in the central area of Da Nang City.

Meanwhile, a representative of Regus Vietnam said Regus is seeking suitable positions in the northern city of Hai Phong, which has a bustling seaport and connection with Hanoi.

He said the demand for co-working spaces continues to boom in Vietnam. As the business environment is changing rapidly and businesses open or shut regularly, it is difficult to predict office demand for the next one to two years. Therefore, flexible office models will be favored over the traditional model.

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