The low supply of traditional office space expanding in central districts of Ho Chi Minh City (HCMC) has lead to the growth of coworking spaces, or flexible office spaces there.

According to a recent report by Savills Vietnam, in the third quarter (Q3) of this year, a coworking space company rented two floors of a grade A office building on Le Duan Street, District 1, HCMC, eventhough the building is still under construction. The 1,400-sqm office space will be rented out starting in the first quarter of 2020.

Meawhile, other coworking space busniesses have rented 2,000-5,000 sqm in some of the latest office buildings in the Southern city.

A coworking space in HCMC. Photo: cogo.vn

As of the end of September, coworking firms had occupied 52% of all office space in downtown HCMC, including projects  under construction.

Savills said while coworking offices are popular among startups and SMEs, larger enterprises with hundreds of employees are also keen on them thanks to the flexibility these offices offer.

As grade A office supply in the downtown area continues to be limited and firms struggle to find large space, demand for coworking space keeps rising.

The Southern city ranks 41st out of the world’s 50 fastest growing coworking markets this year listed by consultancy Co-working Resources. The consultancy firm added that a new coworking space opens every 47.5 days in HCMC.