HCM City (VNS/VNA)🔯 - With both local andinternational operators strongly expanding into co-working in Vietnam, theindustry is expected to develop rapidly, experts have said.

They said thedevelopment of this new segment in the property market is being driven bystart-ups, freelancers and increasingly by small companies. Vu Cam Giang, co-founderof Moonwork co-working space in Hanoi, told the English language newspaper VietNam News that initially co-working had attracted students, employeesallowed to work from home, start-ups, freelancers and artists who were curiousabout the new experience. But now only start-upsand freelancers hire co-working space, with many of them needing a place wherethey can bounce things of each other or explore co-operation opportunities, shesaid. Since it was launchedmore than a year ago her co-working space has been always full, indicating thehigh demand, she said. A recent report fromproperty consultant CBRE Vietnam said the co-working segment has grown rapidlyin Hanoi and HCM City since it was first introduced in 2012 and started to gaintraction in 2015 with the entry of local operators Toong and Dreamplex. The report said thereare now 17 co-working space operators with 22 venues, all but one local, butthe situation is set to change with the entry of regional operators later thisyear and in 2018. Talking about thegrowth, the report said the global co-working industry has been growing at 53percent a year for the last five years. In Vietnam the rate has been 58 percent. But with the conceptstill being relatively new in the country, and major regional and internationaloperators yet to enter, the rate is set to accelerate, it said. Co-working offices arein great demand thanks to the flexibility, creativity and amenities tenantsget. It also offers a far more cost-effective solution for tenants compared totraditional leased office space. The Thoi Bao Ngan Hang (Banking Times) newspaper reported that hiring a shared space for five staffonly costs 750-1,080 USD per month. Office rents now rangebetween 1,100 and 1,400 USD per month. Besides, co-workingtenants do not have to shell out money for furnishing or even buying computersand other office equipment. CBRE said the cost ofco-working space varies across cities, and is less in Hanoi and HCM City thanmost other cities in the Asia Pacific. But the offices aregenerally not located in prime buildings or areas since operators seek to keeprental costs low. They are often situated in under-utilised buildings innon-central locations, it said. The entry of largeroperators would likely usher in a period of consolidation and M&A activitywithin the industry, forcing poorly managed or unsuitable co-working spaces outof the market and improving the quality of existing operators, it said.  “With the development ofstart-ups and freelancers and people’s changing perception in choosing workingspace, the co-working segment will continue to expand in Vietnam,” Giang said.— VNS/VNA