According to The Economist, by 2021, Vietnam GDP may increase by 5.2% YoY, slower than in recent years due to the prolonged influence of Covid-19. Focus Economics forecasts an average GDP growth of 6.7% / year from 2021-2025 so that Vietnam will continue to be one of the leading economies in Southeast Asia.
Hanoi’s business environment continues to improve. In 2020, the city will attract FDI capital 3.72 billion USD. Significant growth in Technology, Software, Life Insurance and E-Commerce continued despite Covid-19.
Three segments of the office market. Grade B office observed the fastest growth in supply with 6% / year while Grade A increased 4% / year and Grade C increased 3% / year. Total stock is nearly two million m², up 2% quarter-on-quarter (quarter-on-quarter) and 6% year-on-year following the entry of Q / 3 into the CBD of Grade A International Center with 7,000 sqm; and 33,000 m² from Century B Tower in Q4 / 2020.
Grade A offices in Hanoi and Ho Chi Minh are increasingly interested by investors from Korea and Japan and plan to expand.
Response to Covid-19
When Covid-19 hit Vietnam in early 2020, the business had to consider different working approaches and space needs. Hotels and tourism, which have been hit hardest, now require less office space, while IT and e-commerce companies continue to grow.
The trend of working from home is well applied in Vietnam. However, many companies still see this time as an opportunity to shrink scale, reduce operating costs and invest more in technology.