HOW VIET COWORKING SPACES WELCOME WEWORK
As a "new wind", co-working space market will be well developed by local start-ups in the country. Of course, a good piece of cake will have the recipient.
WeWork, the third-largest US start-up, valued at $ 20 billion, will be the next big rival of Viet startups. However, contrary to the common fear of a traditional business when it comes to the fact that a foreign business is competing in Vietnam, according to Đầu tư, Vietnamese start-ups in the field of co-working space are quite exciting and ready to the next battle.
CoGo's coworking space owner has learned from WeWork's experience in the US, so that CoGo’s studio offices are quite similar with WeWork’s design, but the other functional areas are adapted to Vietnamese customers.
Similarly, the CEO of Toong, another start-up, said that when the first co-working site builded three years ago, he thought that WeWork would enter the market, sooner or later. Thus, to create individual strengths and values is Toong’s achievement in the past three years.
That is the defense of the Viet start-ups. With "the Giant"’s strategy, WeWork is also very thorough. Prior to deploying the office in Ho Chi Minh City in 12/2018, WeWork "stepped into" Hanoi market by spending about $400 million acquisition of rival nakedHub - a start-up with four co-working centers in Vietnam.
For example, the average size of each co-working space in Vietnam is only about 1,000sqm, not enough space to meet standard of a co-working space. Meanwhile in the world, the area for coworking space must be from 2,000sqm to 5,000sqm. CoGo's owner also estimates that total office space in Vietnam currently occupies 0.5% of the office space market, and in the world, this rate is 3-5% and projected to increase to 10% in the next 3 years. Therefore, the size of Vietnam's coworking space market in the next 3 years must increase 10 times to match the existing potential.
Co-working space is still a relatively new business model, there is no official report on the profitability of this segment in Vietnam. Even in the world, to the giants WeWork – the start-up only behind Uber and Airbnb in the United States after 8 years of operation, reaching out across Asia, is not yet marked break even and is expected to continue the loss of up to $1 billion a year since the expansion is continuing.
A vital and unpredictable war will take place in Vietnam soon.