Published 04 August 2016 Category: Compass Cities

Finding the right office space in Vietnam

The recent fast development of Vietnam has created abundant opportunities for business and investment but it also makes finding the right office space somewhat a headache, particularly in the country’s capital city.

According to a report prepared by Ernest & Young, Vietnam has emerged as one of the fastest-growing markets in Asia. While it is relatively stable politically and socially, compared to other countries in the region, its growing population, natural resources and increasing connection with the international community makes the country a competitive player in the business world.

Statistics showed that Vietnam has a young population that has a promising future. More than 50 per cent of the nearly 90 million people aged 25 or younger, and the country has an over 90 per cent of literacy rate. With an annual growth rate at 1.2 per cent, Vietnam is expecting to have a population of 100 million by 2020.

In 2015, Vietnam saw its GDP went up by 6.68 per cent - the highest percentage growth over the past five years.

The growth is particularly strong in Ho Chi Minh City. The country’s capital is the economic hub of the country. It is the home of more than 100,000 companies contributing 20 per cent of the country’s GDP. With 9 million population the city, which is divided into 24 districts enjoys a 9.85 per cent GDP growth rate in 2015. The population of the city is expected to surpass 10 million by 2020.

All these factors have made Vietnam an attraction to investors from locally and abroad, which contributes to the challenges in finding the right office spaces in prime locations. Competition is particularly intense in Ho Chi Minh City.

To accommodate the growth, more towering office buildings have been added to the cityscape of Ho Chi Minh City that was previously dominated by French colonial low-rising architectures. In addition to Harbour View Building, Sun Wah Tower, The Metropolitan, Saigon Centre and Saigon Tower, the Bitexco Financial Tower located in the city’s District 1 is also in demand.

The Bitexco Financial Tower is 68-storey tall and is the tallest building in Ho Chi Minh City and the third tallest in Vietnam. The tower offers a mix of retail, F&B and office spaces. Since its inauguration in 2010, the tower has been enjoying a high occupancy rate.

One solution, particularly for smaller companies, to start at a shared co-working space or a serviced office offering flexibility at a relatively affordable cost. Compass Offices’ Ho Chi Minh Business Centre located at the Bitexco Financial Tower is among the options.

Another solution, of course, is to build more office spaces. It was recently reported that a new US$4 billion complex located in Thu Thiem on the east bank of the Saigon River has been proposed by a consortium comprised of investors from the US and Vietnam. Should this proposal be realised, the complex is expected to be ready in three years.