Office: Potential Locations
Latest Update: April 14, 2022
This is relevant for: Companies looking to establish an office in Vietnam
Most companies opening are those engaging into sales or sourcing activities. Another group of yet-to-be office occupiers approaching us are companies planning ITO and R&D activities. Because Vietnam does not just have one economic center but several bigger cities rivalling each other, finding an office location needs some consideration.
🌃 The Largest Vietnamese Cities
Above-mentioned companies will typically settle in a city. For sales and sourcing companies, cities and their industrialized surroundings constitute crucial markets. For ITO and R&D companies, urban centers provide massive number of talents. Also, cities offer better access to infrastructure (e.g. internet speed) and mostly have more experienced administrative units. Additionally, and sometimes critically, it is easier for foreigner to live in cities than in rural areas. Only here, they will find high-level accommodation, entertainment, a developed health system as well as international schools.
For the purpose of this article, we will divide Vietnamese cities into two tiers:
Tier 1: Population of more than 1 million and international airport within same province/city
Tier 2: Population of more than 250,000 and domestic airport within same province
As a result, we come up with a selection of eleven municipalities.
Overview: Tier 1 and 2 cities in Vietnam
*Blue label: Tier 1 city, green label: Tier 2 city
Accordingly, tier 1 cities are:
Ho Chi Minh City (HCMC): Economic powerhouse
Hanoi: Capital city
Haiphong: Port town in northern Vietnam
Da Nang: Tourism and service hub
Can Tho: The “door to the Mekong Delta”
Tier 2 cities are the coastal towns of Vinh, Hue, Quy Nhon and Nha Trang. Da Lat and Buon Ma Thuot in the Central Highland also qualify for this category.
When establishing offices in Vietnamese cities, companies should choose a district with a highly perceived status. By displaying an address in these locations or inviting partners here, a company can improve its "street cred" as a centrally located office implies success and trustworthiness. For example, in HCMC, district 1 would be the most prestigious part of town and in Hanoi Ba Dinh or Hai Ba Trung carry a "big name".