Coworking space expanding in Vietnam: report

A concept that has been evolving for hundreds of years, given a fresh lease of life by technological advances over the last couple of decades, and named coworking by Brad Neuberg in 2005, has been catching on rapidly in Vietnam.

A report by real estate firm CBRE Vietnam says there are 34 coworking spaces in Hanoi and Ho Chi Minh City, an increase of 62 percent from last year.  

In the last five years, the number of coworking venues in Vietnam has grown by an average of 55 percent, it says.

Major local operators like Toong, UP, Circo and Dreamplex are all expanding at an accelerated rate, and the number of smaller operators with just one venue is also increasing.

The growth is attracting increasing attention from international firms.

The Hive, a coworking space maker from Hong Kong, is planning to open a new facility by the end of this year in Ho Chi Minh City. The company already has one office on Xuan Thuy road in District 2 in the same city. 

Naked Hub, a successful coworking business from China, has entered the market by opening two facilities in Ho Chi Minh City and one in Hanoi in the second quarter of this year.

Coworking allows members greater flexibility than a traditional office and tends to be popular among younger people. In Vietnam, 91 percent of members are below 35 years of age, according to a CBRE study last year. This proportion is a lot higher than the global average of 67 percent and reflects the nation’s young demographics, creating a robust demand for coworking spaces, the study said.

It said 54 percent of coworking space users in Hanoi and Ho Chi Minh City are either founders or employees of start-ups, while approximately 14 percent are self-employed freelancers.

Most operators have reported a very healthy 75-80 percent average occupancy rate as of April 2018. This high level of demand, and the fact that the market is relatively new compared to other Asian countries, is expected to spur further growth. 

Asia is the home to the largest coworking spaces in the world, with each venue hosting 73 members on average. Coworking spaces have been increasing globally in recent years, from 8,900 in 2015 to 15,500 last year, a report by Deskmag magazine said.