ATLANTA, GA — Changes in governmental policies and economic expansion in Vietnam have paved the way for growth in corporate real estate (CRE). However, the profession is still nascent in Vietnam; CoreNet Global has examined the challenges and opportunities in a new report: Vietnam: A New Asian Tiger.
CRE will ultimately see an upswing in demand for its talents and services, according to the report. As of now, however, CRE and facilities management are not widely understood in the local market and are typically viewed as property management services, which are transactional or building engineering services focused. The strategic aspect of CRE is not yet appreciated and many issues are still dealt with on a small and local scale.
"The fact that CRE is quite low on the evolutionary stage in Vietnam means that not many of the aspects of CRE that are seen as common in the rest of the world are applied here," according to the report.
"For example, green buildings are still not very common in Vietnam, though this might change with a greater influx of MNCs into the country…One concept that seems to have taken off and is expected to see gains is the notion of Co-Working. There are numerous co-working spaces in Vietnam, with Ho Chi Minh City seeing a flurry of activity and increased usage in this sector."
The potential for dramatic growth in CRE is driven by several facets of economic expansion in the country:
"Overall, the outlook for Vietnam is positive. A young population, a growing middle class, and a government keen on pushing the economy higher are all factors that will influence growth positively. As the economy develops and matures, the need for CRE to provide increasingly strategic guidance will grow as well," the report concludes.