The worldwide market for serviced offices has shown a consistent upward trajectory, achieving an unprecedented peak with a total value of US$33 billion in 2022. With its robust annual growth rate of approximately 20%, this market shows no signs of slowing down shortly. Serviced offices, in particular, have gained popularity among agile multinational companies seeking the advantages of not being tied to a fixed physical location.
Serviced offices are marked by their cost-effectiveness, remarkable flexibility, and minimal commitment. They serve as an ideal solution for those who prefer not to be tethered to lengthy leases and burdensome overhead service expenses. Despite being a low-risk endeavor, it still constitutes a significant investment. Given the array of locations and diverse operational models available, conducting thorough research before arriving at a decision is strongly advised.
In this article, we’ll explore the numerous advantages of flexible serviced offices in Vietnam and explain why it is a concept worth contemplating.
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What is a Serviced Office?
A serviced office is a contemporary office space where management or a provider handles all equipment and maintenance. Its remarkable flexibility and minimal commitment make it an excellent choice for businesses seeking to establish an office in Ho Chi Minh City swiftly and effortlessly. These offices are particularly well-suited for individuals or businesses needing a rapid setup, those in the city for a short-term market observation, or short-duration projects.
Also known as executive offices, managed offices, or business centers, they are fully serviced office spaces provided by a service provider. The companies overseeing these serviced offices are tasked with facility maintenance and serving the needs of businesses. All maintenance, cleaning services, and amenities are managed, whether a business is renting a serviced office for an entire building, a single floor, or even just a single desk. Since the serviced office is owned and operated by a facility management company, all utilities like electricity, water, WiFi, and telecom services are also provided by the service provider.
This is particularly beneficial as energy costs have soared to unsustainable levels for many small and medium-sized enterprises over the past two years. Due to this significant advantage, serviced offices are highly favored by smaller companies that lack the resources to handle various aspects of an office, such as staffing a reception desk.
Benefits of a Serviced Office: Why Should Choose?
Access to a Prestigious Location
Maintaining a professional image is paramount for the growth of your business. Opting for a serviced office provides you with a prestigious business address in the heart of the city, which significantly contributes to building a credible and successful image for your company.
This central location not only enhances your business’s reputation but also offers a convenient commute for your employees, along with easy access to public amenities. The vicinity boasts flexible public transportation options and is surrounded by banks, shops, restaurants, and recreational serviced office facilities.
What makes this even more attractive is that these prime office locations are cost-effective, unlike the expensive rents associated with traditional physical offices in the same area.
Cost Savings and Budget Control
A traditional physical office can be a significant drain on your financial resources. You not only commit to long-term contracts but also need to invest in furniture, office supplies, equipment, phone lines, internet connections, renovation, maintenance, and various other expenses.
In contrast, a serviced office includes all of these costs in your monthly service charge. Mundane tasks like daily cleaning and reception services are also covered in this all-inclusive fee. Additionally, you can enjoy pay-as-you-go services, such as on-demand meeting rooms or conference rooms.
Flexible Lease Terms
If you are considering an office for lease in Ho Chi Minh City then it requires you to sign lengthy agreements, often spanning three to five years. The truth is, no one can predict where your business will be in five years.
With a serviced office, this concern becomes irrelevant. You have the freedom to rent a serviced office for as short or as long a period as you require. This flexibility allows you to easily adjust your office space based on your business’s evolving needs and performance.
Seamless Transition with Full Furnishing and Office Assistance
Business disruptions can significantly impact your operations and workflow. A fully serviced office space is well equipped and supported, allowing businesses to start immediately. No need to purchase and set up equipment, buy furniture, or deal with maintenance.
Moreover, when you opt for a serviced office in Ho Chi Minh City from a reputable provider like InCorp Vietnam, you receive complimentary business consultancy, IT support, and administrative assistance as required.
Effortless Administration
Another aspect that a serviced office solution handles is administration. This not only saves you expenses but also spares you from the task of managing calls and emails from your clients.
With a fully staffed serviced office featuring professional skills to support you, you can now concentrate on building your business empire.
What is the Difference between a Serviced Office and a Coworking Space?
Coworking spaces represent a popular alternative to leasing serviced offices. The most crucial distinction between the two lies in the fact that while businesses can secure private workspaces within serviced offices, all areas in coworking spaces are shared.
In a coworking environment, the layout deliberately maintains an open-plan design. Employees operate on the same floor, utilizing a ‘hot desk’ arrangement where no one has an assigned workstation. Here are three additional distinctions between serviced offices and coworking spaces:
- Coworking spaces emphasize the creation of a collaborative community, providing a multitude of communal work areas. They actively encourage interaction among members, organizing networking events for this purpose. Such a strong community focus is not a typical feature of serviced offices. If you believe your business would benefit from working alongside other entrepreneurs and learning from their experiences, a coworking space might be the better choice.
- Serviced offices provide the necessary equipment and devices for your work. Conversely, renting a private office space within a coworking facility may require you to furnish it with your furniture and equipment.
- On average, coworking spaces are more budget-friendly than serviced offices. The exact cost of leasing your office space depends on its quality, but coworking offices generally offer more affordable rates than serviced offices. In some cases, you might even find free coworking spaces, a rarity when it comes to serviced offices.
The distinction between serviced offices and coworking spaces primarily lies in the level of privacy and the design of the workspace. Serviced offices offer a more private environment with access to fully furnished and well-equipped workspaces, including dedicated meeting rooms. Each option has its own set of benefits, allowing companies to select the environment that aligns best with their specific requirements and preferences. Coworking spaces are a well-liked option, mostly for smaller businesses and startups. Both offer greater flexibility than traditional offices, allowing room for your business to expand.
Debunking 7 Common Serviced Office Myths in Ho Chi Minh City
Myth #1: Serviced offices are only suitable for startups.
While serviced offices are indeed an excellent choice for startups and freelancers, they are designed to cater to businesses of all sizes, including medium and large companies. The key factor is the need for flexibility, which serviced offices provide in contrast to conventional leases. They are particularly advantageous for businesses looking to establish a presence in a new location.
Myth #2: Serviced offices are expensive.
In a traditional office setup, you are responsible for various expenses, including rent, administrative staff salaries, utilities, and office equipment. However, renting a serviced office typically involves a single subscription fee, often as an all-inclusive package. This package encompasses rent, service charges, internet access, cleaning and maintenance, reception services, and utilities. Some providers even offer additional perks like free parking, access to a gym, and secure bike storage.
Myth #3: It doesn’t matter where serviced offices are located.
The location of serviced offices is indeed a crucial consideration for many businesses. Most providers strategically position their serviced offices in the city center or near major transportation hubs. Your business’s reputation is closely tied to your office’s location, making it an essential factor in your business-related activities.
Myth #4: Serviced offices are for short-term projects.
Serviced offices offer highly flexible lease terms, typically ranging from 3 months to more than a year. Additionally, these leases are often extendable if your business’s plans change. Think of a serviced office as a workspace with very few commitments, regardless of your intended duration of stay. It can serve as a long-term solution if you find that Ho Chi Minh City is the ideal business hub for your operations.
Myth #5: There are many hidden costs.
Reputable providers like Cekindo offer serviced offices in Ho Chi Minh City with transparent pricing and fee structures. You’ll receive a clear, itemized monthly invoice without any hidden costs.
Myth #6: There is no sense of community at serviced offices.
Many serviced office providers or companies leasing serviced offices organize networking events and monthly community activities. These events offer opportunities to share ideas and collaborate with industry experts, fostering a sense of community among tenants.
Myth #7: Serviced offices are only open at certain times.
Most reputable serviced offices have extended hours of operation, with some even open 24/7. This flexibility allows for varying work hours, and security access is typically in place to ensure tenant safety.
How do Foreign Investors Choose a Serviced Office?
When foreign investors are considering a serviced office in Ho Chi Minh City, there are several essential factors to keep in mind:
Business Location
When seeking a serviced office space, your top priority should be its location. Is the office positioned at the heart of a bustling business hub? Can your clients and employees access it with ease? Does the location align with the nature of your business?
In an ideal scenario, your office should be effortlessly discoverable by both your team and clients. Consider the availability of parking, convenient public transportation options, and the overall appeal of the neighborhood as critical geographical factors in your office selection.
Read More: Choosing the Ideal Business Location in Vietnam: The First Step of Success
Technological Infrastructure
In today’s fast-paced digital landscape, technological amenities stand as a pivotal consideration for many businesses. Keep in mind that technology needs can differ from one business to another. Beyond high-speed Internet, explore the array of elements necessary to ensure seamless business operations.
Examples of IT functionalities to explore in a serviced office encompass features like voice conferencing meeting rooms, visitor management systems, online reservation systems, and more. Also, don’t overlook the paramount importance of dependable and high-quality IT services.
Size and Amenities
It’s essential to thoroughly evaluate the dimensions and provisions of the serviced office you opt for, including meeting and conference rooms, especially if you anticipate frequent usage. Generally, your team’s size will dictate the necessary workspace. Additionally, consider whether specific job roles require more spacious desks and if your business requires extra storage capacity.
Furthermore, ensure that the office offers vital services like telephone connections, postal services, mail handling, and call forwarding. A well-equipped serviced office, providing access to these amenities, can significantly enhance the efficiency of your business operations.
Flexibility and Aesthetics
The adaptability and visual appeal of a serviced office play a pivotal role in fostering a productive workspace. The office’s design and functionality should align seamlessly with your business requirements.
Hence, when making your selection, scrutinize the space to confirm it meets your criteria. How large should the meeting and conference rooms be? Does the serviced office offer room for expansion or downsizing as your needs evolve? Are there ergonomic chairs and desks to ensure your employees work comfortably and efficiently?
Administrative Support
Finally, but certainly of paramount importance, a reputable serviced office will offer robust administrative assistance and valuable business guidance concerning your workspace. It is imperative to select a serviced office that prioritizes your business needs and is committed to delivering the essential support and consultancy services you require.
Office for Lease in Ho Chi Minh City from InCorp Vietnam
InCorp Vietnam offers an excellent solution for serviced offices in Ho Chi Minh City, providing a comprehensive range of amenities. Our office spaces are equipped with utilities and high-speed internet, ensuring you can swiftly move in and customize the space to your liking.
Our serviced office in Ho Chi Minh is strategically located, offering quick access to your target market. We offer flexible lease terms that cater to a variety of needs, whether you seek short-term convenience or long-term stability.
Additionally, InCorp Vietnam’s serviced office solution features straightforward pricing that encompasses rent, utilities, and a staffed reception. This means you won’t need to fret about managing various monthly bills, allowing you to concentrate on what truly matters for your business.
Don’t miss the opportunity to leverage our serviced office for its remarkable flexibility and cost-saving advantages, among other benefits. Alternatively, feel free to reach out to us for a deeper understanding of why a serviced office is an ideal choice for your business in the vibrant city of Ho Chi Minh, Vietnam.
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Conclusion
The serviced office industry in Vietnam is not only evolving but also providing a compelling opportunity for foreign investors. Serviced offices are reshaping the way businesses operate in this country. Foreign investors can establish a strong presence in Vietnam without the usual hassles and expenses associated with traditional office setups if they opt for a serviced office.
Furthermore, the Vietnamese government’s commitment to creating a favorable investment climate, along with the country’s rapid economic growth, makes it an attractive destination for foreign investors seeking opportunities in Southeast Asia. Serviced offices offer a gateway to this promising landscape, enabling businesses to thrive and expand in a vibrant and dynamic environment.
In the coming years, the serviced office sector is expected to keep pace with the ever-changing demands of the global business community, making it an exciting space for foreign investors to explore and leverage. With the right serviced office partner, foreign investors can confidently embark on their journey in Vietnam, reaping the rewards of a flourishing economy, a burgeoning market, and a dynamic business environment.
About Us
InCorp Vietnam is a leading market entry and corporate services firm in Vietnam. We are part of InCorp Group, a regional leader in corporate solutions that encompasses 8 countries in Asia-Pacific, headquartered in Singapore. With over 1,200 legal experts serving over 15,000 Corporate Clients across the region, our expertise speaks for itself. We provide transparent legal consulting, setup, and advice based on local requirements to make your business fit into the market perfectly with healthy growth.
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