Business

Co-working space models redirect investment

By Han Sovy May 10, 2018 | 08:03 AM GMT+7

After a period of increasing in quantity, co-working space models tend to develop their quality, especially the projects in Ho Chi Minh city.

Toong Minh Khai - a new model in Vietnam's co-working space market

Having entered Vietnam at the beginning of 2012, co-working space has also appeared in many big cities across the country nowadays.

According to CBRE's 2017 statistics, the co-working space supply was developing at an average speed of 53% in the world and 58% in Vietnam per year. 

This figure is expected to increase sharply in 2018 when the average occupancy rate at co-working spaces is all over 60%.

The development of co-working space in Vietnam is attributed to the phenomenal growth of the start-up spirit and the young generation. According to CBRE, the majority of co-working space users are 'Generation Y' (under 35), which is 67 per cent higher than the global average.

Compared with the previous generation, this group have a newer view of the working space. Accordingly, the office is not only a place for work but also for sharing and inspiring them to develop their abilities.

Recognizing the growing trend, many co-working space brands in Ho Chi Minh city has invested in the concept of new products as a response to the market demands.

In the mid-end segment, recently, Toong set the trend by launching Toong Minh Khai in District 3. According to Duong Do, CEO of Toong, this branch marks the evolution not only of Toong products but also of Ho Chi Minh city co-working space market.

Besides, in recent years, the “senior” brands in Ho Chi Minh city have also "redefined" co-working space by specialising the attached business activities.

Concepts for co-working space are being focused and renewed in the mid-range co-working market of Ho Chi Minh city. This has brought various options for different customers as well as somehow adapt the trends set by young workers.

In 2018, the co-working space market in Ho Chi Minh city recorded growth in the high-end segment when Regus, one of the big names in the world, launched the conference centre right in the Deutsches Haus. It marked the development as combined models of the high-end segment.

As one of the highest growth economies in Southeast Asia for MICE (meeting, incentives, conventions and exhibitions), Vietnam has significantly invested in the infrastructure.

According to McKinsey Consulting Group, in 2017, 17% of visitors came to Ho Chi Minh City for work reasons, higher than the regional average of 14-15%.

However, when hosting important MICE events, hiring traditional hotels encountered limits regarding professionalism.

The curiosity, noise or casual fashion of the guests seriously affect the formality of the event, which has created opportunities for professional conference service providers.

In general, the co-working space market in Ho Chi Minh city appeared later and the supply is still less than in Hanoi, but it tends to develop regarding models and quality. Hence, this market is expecting new stars in the future.

Hoang Huy Group to raise $79 million for Haiphong property projects

Hoang Huy Group to raise $79 million for Haiphong property projects

Business -  10 hour

Hoang Huy expects revenue to exceed VND4 trillion and post-tax profit to reach up to VND2 trillion in fiscal year 2025-2026, targeting annual growth of over 30% for the next five years.

Cen Land transforms into real estate developer with bold goals

Cen Land transforms into real estate developer with bold goals

Business -  1 week

Cen Land is shifting from brokerage to development, targeting a 170% revenue increase and 424% profit growth in 2025.

Menas signs to elevate lifestyle experiences at Keppel’s properties in Vietnam

Menas signs to elevate lifestyle experiences at Keppel’s properties in Vietnam

Business -  1 month

Menas Group has entered a strategic partnership with Keppel to co-develop an integrated ecosystem of lifestyle services across Keppel’s real estate projects in Vietnam, beginning with the landmark Celesta City development in Saigon South.

Phuc Sinh secures $15 million investment from Dutch investor for sustainable expansion

Phuc Sinh secures $15 million investment from Dutch investor for sustainable expansion

Business -  1 month

Phuc Sinh’s expansion underscores Vietnam’s growing role in sustainable agriculture and its increasing appeal to global investors

PVI Asset Management and SonKim Capital partner to revolutionize real estate investments

PVI Asset Management and SonKim Capital partner to revolutionize real estate investments

Business -  1 month

PVI Asset Management (PVI AM) and SonKim Capital (SK Capital), a business unit of SonKim Group has announced a strategic collaboration to develop innovative real estate investment products tailored for institutional investors and high-net-worth individuals.

Filum AI secures $1 million amidst funding winter

Filum AI secures $1 million amidst funding winter

Business -  1 month

Filum AI has successfully raised $1 million in funding despite a challenging venture capital market, underscoring the potential of AI and shifting investment strategies.