Posted 2.12. 2019 by Cekindo
When it comes to doing business in Vietnam, the country offers unlimited business opportunities. Fitness business, for example, is among the rising business ideas in Vietnam.
Gymnasium chains have been popping up in major cities in Vietnam with the Vietnamese’s growing interest of fitness activities. Many years, ago gyms were something rare to most people in Vietnam as more than 70% of the Vietnamese population were in rural areas with their focus on agriculture industry. Agriculture activities contributed to most of the economic growth in the past era.
However, things have changed since the late 90s as every year, approximately 5% of economic growth comes from the surging fitness industry in the country. According to a study conducted by the World Bank, fitness industry contributes to US$200 billion of Vietnam’s economy; by 2035, this highly potential industry is expected to grow by trillion dollars with more than 50% of the country’s population joining some sort of fitness activities.
The major contributor for this immense is the rapidly increasing middle class in Vietnam in urban areas with an average annual income of US$2,100, who are more health conscious compared to the people live in the rural areas.
This article explains more about what is driving the impressive boom.
More and more people around the ages of 15 to 64 in Vietnam are willing to spend higher amount of money on gym membership and other fitness services, caused by the rising health consciousness, fitness awareness and modern lifestyle. Furthermore, the expanding middle-income group has more disposable income to spend on fitness services to improve their quality of life. Another major catalyst for the surge of fitness markets is the shift of grim gym training to total body endurance workouts.
Therefore, the gym is not just a weekend hangout place; it has now transformed into a daily workout venue that the majority of the Vietnamese are pursuing.
The main players of fitness services in Vietnam are Yoga Centre, California Fitness Fit24, and Elite Fitness. MMA Gym Fitness Centre and Citigym are also increasing their fitness outlets across the country and thus leading to a significant growth in the market. Other smaller and new players are emerging and expected to augment their service quality in the very near future.
The Vietnamese becoming more health conscious and the increase of income are not the only reasons for the boom. There other factors that are responsible for this exciting development and that’s why there’s never been a better time for foreigners to invest in the Vietnamese fitness industry than now. Let’s take a look.
The obesity rate has increased so much in Vietnam over the years with its CAGR hitting 8.4% between 2013 and 2018. The obesity rate is also expected to reach 3.6% in 4 years by 2023. Therefore, in order to reverse the obesity rate, fitness companies such as AKC Fitness, Calikids and Ntrifort Fitness are currently coming up fitness programs and health regime to help them lead a healthier lifestyle.
Rising Demand of Group Exercise
There is a shift in choice from just harsh gym workouts to total body endurance and strength exercises. These exercises are often carried in group such as Cross Fit, Zumba, Pilates, Power Yoga, and martial arts. This is because exercises performed in group are more dynamic and fun, thus attracting people of all ages and genders to participate. Therefore, more fitness and gym centres and moving towards to include these group-exercise services at their centres.
Penetration of Organised Fitness Centers
Even though unorganised fitness centers are still quite dominant in Vietnam as they offer lower membership rates and ease of accessibility to their members staying nearby, more and more people are now seeking organised gym centres because of the additional services these organized gym centers provide.
Organized fitness centers have also gained their popularity by expanding into suburban areas in Vietnam, forcing unorganised fitness centers to up their game by including a more variety of training programs.
Now, that you know that fitness is among the brightest business ideas in Vietnam, you may want to look for a partner that can assist you in penetrating the market. Cekindo is powered by a team of business experts to offer you tailored solutions and groundbreaking insights for building your fitness business in Vietnam.
We want to make doing business in Vietnam easy and business ownership in Vietnam accessible for aspiring entrepreneurs like you so that you can turn your dream into reality. It is time to discuss your business ideas in Vietnam with us.
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