mangoads, Author at onehubsaigon

The news of Nvidia’s investment of over 250 million USD in Vietnam marks a significant step in attracting investments in the technology sector in the country. In this article, let’s explore why the world-leading technology corporation decided to invest in Vietnam and highlight the prominent high-tech office project for tech businesses today.

Nvidia – The Graphics Hardware King

For those who regularly follow technology news, anyone would have heard the name Nvidia (also written as nVIDIA or NVIDIA). It is the most renowned company in the development of graphics processing units (GPUs) for computers, with names like GeForce and Quadro being familiar to those working in graphics-related fields, image rendering, or gaming. Established in 1993, Nvidia remains the king in developing high-performance GPUs for computers.

Nvidia has surpassed Intel, Samsung, and TSMC to become the most profitable processing chip brand in the world in Q3/2023

In addition to its well-known GPU lines like GeForce GTX, RTX, and Quadro K, P, Nvidia also produces processors, chipsets for computers, software, AI, etc. By the end of Q3/2023, Nvidia announced a revenue of up to $18.12 billion, expected to reach $20 billion by the end of the year. This is a tremendous figure that any business would dream of. Despite facing strong competition from its long-time rival AMD in recent years, along with export restrictions from the U.S., Nvidia’s business results remain excellent. The Q3/2023 revenue increased by 206% compared to the same period the previous year.

The Vietnamese technology market recently received explosive news when NVIDIA decided to make a long-term investment in Vietnam, collaborating with Vietnam to build a dream of a new Vietnam, an AI Vietnam. With an investment capital of up to $250 million, Nvidia identifies Vietnam as an important market, potentially becoming Nvidia’s second home.

Why did Nvidia choose to invest in Vietnam?

2.1. Vietnam has potential in the semiconductor and artificial intelligence fields.

Vietnam currently has over 6,000 engineers specializing in the semiconductor industry, working for many domestic and foreign enterprises. Prime Minister Pham Minh Chinh stated that Vietnam aims to have 30,000 engineers in this industry by 2030, prioritizing the training of engineers in semiconductor design. Jensen Huang, Chairman and CEO of Nvidia, highly values Vietnam’s potential, strategic vision, and infrastructure investment in the semiconductor and artificial intelligence sectors, especially the abundant workforce in Vietnam.

Jensen Huang – Co-founder and CEO of Nvidia

2.2. Vietnam has strong software capabilities

Mr. Huang also believes that the Vietnamese people are excellent in mathematics, have strong software capabilities, and are well-positioned to develop the semiconductor and artificial intelligence fields further. This is an important moment in Vietnam’s development. If successful, Vietnam could become a new shining star in the global technology market. High-quality workforce training centers and research centers in high-tech zones nationwide are increasingly developing. The recent launch of the Electronic and Semiconductor Training Center at the Saigon Hi-Tech Park (SHTP) in September 2023 is evidence of the attention and investment in enhancing software capabilities specifically and the quality of the workforce in the high-tech field in general in Vietnam.

>>> Learn more: Vietnam with the opportunity to become a leading nation in sustainable development of green office buildings

Vietnam has abundant resources and strong software capabilities

2.3. Good infrastructure

High-tech zones in Vietnam are receiving significant investments in infrastructure, along with attractive policies for businesses. Research, development, and high-tech training facilities are being built and operated more efficiently in high-tech zones such as STHP and Hoa Lac. Moreover, these areas prioritize the use of quality and stable power sources, as well as the application of new technologies such as 5G. Additionally, these two high-tech zones are heavily invested in transportation infrastructure, with ring roads, expressways, and public transportation connecting these areas to the central hubs of Ho Chi Minh City and Hanoi easily. Transportation is a prerequisite for attracting investment and workforce to these regions.

Detailed information: Diagram and technical specifications of Tower 1 LEED Silver standard at OneHub Saigon

Vietnam is actively investing in infrastructure in high-tech zones to attract both domestic and foreign businesses

3. Foreign businesses tend to choose high-tech zones in Vietnam for establishing their facilities

Foreign electronics and high-tech companies tend to select high-tech zones to set up their factories, workshops, or offices in Vietnam. Particularly, the Saigon High-Tech Park (SHTP) has become a preferred location, attracting numerous manufacturing facilities of global technology giants in fields such as semiconductor manufacturing, including companies like Intel, Nidec, Samsung, and most recently, the semiconductor company BESI from the Netherlands.

Ho Chi Minh City High-Tech Park – One of the top 3 high-tech zones in the country

There are several reasons why international businesses choose high-tech zones for investment in manufacturing facilities. Among them, the most significant reason, besides infrastructure investment, is likely the attractive investment policies, with taxes and factory rental costs being extremely appealing, possibly at nearly zero if companies meet the criteria for high-tech zone incentives.

Onehub Saigon – The premier choice for businesses in high-tech zones

OneHub Saigon is a business park office space project integrated with various multifunctional facilities. It stands out as the most prominent office space project in the Saigon High-Tech Park, offering superior advantages compared to many other offices in the market.

Built-in a campus style with low construction density, OneHub Saigon features low-rise green office towers along with spacious communal areas, abundant greenery for recreational and relaxation activities, as well as sports facilities for those working here. With a focus on people, the project effectively meets the diverse needs of a workday, providing quality workspaces, entertainment spaces, shopping areas, accommodation, and office integration, all available at OneHub Saigon.

OneHub Saigon pioneers the campus-style office building for lease in the high-tech park in Ho Chi Minh City

Another advantage of this high-tech park office space project is its access to upgraded infrastructure in the area. Ideally situated at the gateway to the Saigon High-Tech Park (SHTP), the project has direct connectivity to Hanoi Highway and the metro station No. 12 of the Ben Thanh – Suoi Tien Metro Line. This is a significant asset, given the project’s excellent and rapid connectivity to the city center via both private and public transportation. In the future, with the completion of Ring Road 3, OneHub Saigon will seamlessly connect to the surrounding highways in HCMC.

The strong connectivity is a major advantage of this high-tech park office space project. Another advantage of OneHub Saigon, when compared to projects in the city center, is the rental cost, as the office spaces in this high-tech zone are highly optimized and attractive compared to those in the city center. Finally, by choosing an office at OneHub Saigon, businesses can benefit from extremely appealing tax incentives in the Saigon High-Tech Park without the need for constructing or renting assembly workshops.

>>> See more: What is the definition of a Tech Hub? Why do businesses choose to set up offices here

Conclusion

Nvidia’s investment in the Vietnamese market marks a milestone in successfully attracting investments in high-tech industries in Vietnam. This is a result of continuous efforts in training, and upgrading infrastructure, especially in Vietnam’s high-tech zones. With high-quality high-tech office rental projects such as OneHub Saigon, businesses both domestic and international will find it increasingly convenient to invest and operate in high-tech zones.

The tax incentives in Saigon High-Tech Park (SHTP) are among the most attractive tax benefits for businesses operating in the technology sector. So, what criteria do businesses need to enjoy the enticing incentives of SHTP? Let’s explore in the following article.

Tax incentives for businesses in Saigon High-Tech Park

Currently, SHTP offers numerous incentives for businesses operating within its premises, with the most prominent being tax incentives. This high-tech park is the largest attracting investment from many technology companies, establishing factories, and conducting operations here.

There are various types of tax rates that businesses can enjoy tax incentives on at SHTP, including corporate income tax, import-export tax, and value-added tax.

The tax incentives in Saigon High-Tech Park (SHTP) include benefits related to corporate income tax, import-export tax, and value-added tax

Corporate Income Tax Incentives

The corporate income tax incentives at Saigon High-Tech Park are stipulated as follows:

Businesses operating in SHTP will enjoy a preferential tax rate of 10% for 15 years. In the first 4 years, they will be exempt from taxes, for the next 9 years, the rate will be 5%, and for the last 2 years, it will be 10%.
For large-scale projects involving new technologies that require special emphasis on investment, as regulated by the Prime Minister, a preferential tax rate of 10% will be granted for 30 years.
Projects in the fields of education, vocational training, and environmental activities will benefit from a preferential tax rate of 10% throughout the project implementation period.

Businesses enjoy gradually increasing preferential corporate income tax rates during their first 15 years of operation at SHTP

Import-export tax and value-added tax incentives

Businesses operating in the Ho Chi Minh City High-Tech Park will be exempt from import duties on imported goods used to create fixed assets for the project, including:

Specialized equipment, machinery, and transport vehicles that cannot be produced domestically, and transport vehicles with a capacity of 24 seats or more, applicable to both land and water transport.0
Components, spare parts, accessories, assembly fixtures, molds, and accompanying details for assembly with specialized machinery, equipment, and transport vehicles.
Raw materials and supplies not domestically produced are used in the manufacturing of machinery and equipment in the production line, or for the fabrication of components, spare parts, accessories, assembly fixtures, molds, and detached details for the assembly of machinery and equipment.
Raw materials and supplies not domestically produced are required for the production of products and construction materials are not domestically produced.

In addition, businesses are exempt from export-import duties and value-added tax for goods directly used in research and development activities. For high-tech products, both export-import duties and value-added tax are set at 0%.

>>> Learn more: Vietnam with the opportunity to become a leading nation in sustainable development of green office buildings

Land lease incentives

SHTP offers attractive land lease rates for businesses investing and operating there. Specifically:

Land lease prices for production and service range from $0.6 – $1 per square meter per year in phase 1 and $0.4 – $2.3 per square meter per year in phase 2. Lease prices may vary based on the location and type of business.
For businesses leasing land for research, incubation, and training activities, land lease rates are given the highest level of incentives, potentially reduced to 0.
Investors make land lease payments in multiple installments over three stages. Precisely, investors pay 10% of the total land lease amount upon signing the lease agreement with SHTP, 40% upon receiving the investment certificate, and the remaining 50% within 1 year from the lease contract signing date.

High-tech parks can offer the highest level of land lease incentives, potentially reducing it to 0 for businesses engaged in research, incubation, or training activities

What criteria help businesses enjoy the tax incentives at Saigon High-Tech Park?

To qualify for the tax incentives at SHTP, businesses need to meet the following requirements:

Alignment with the four priority development sectors, which include: Electronics and Information Technology – Telecommunications; Precision mechanics and automation; Biotechnology applied in pharmaceuticals and the environment; New materials, and new energy nano-technology.

Semiconductor electronics is one of the four prioritized sectors eligible for tax incentives at Saigon High-Tech Park (SHTP)

The technology and products of the project must fall under the High-Tech Priority Investment Development List and the Encouraged High-Tech Products List. These lists were issued in Decision No. 66/2014/QD-TTg dated November 25, 2014, and Decision No. 12/2017/QD-TTg dated April 18, 2017, by the Prime Minister. Alternatively, the product/technology must be reviewed and recognized by the Scientific Council of SHTP.
The total research and development operational costs conducted in Vietnam over three consecutive years must account for no less than 1% of the total annual revenue and over 1% from the fourth year onward.
The average revenue from high-tech products over three consecutive years must be no less than 60% of the total project revenue for small and medium-sized enterprises and no less than 70% from the fourth year onward.
The number of employees with a university degree or higher directly involved in research and development projects must be at least 5% of the total workforce for small and medium-sized enterprises. For enterprises with total capital exceeding VND 100 billion and over 300 employees, this ratio must be at least 2.5% (at least 15 people).
Adoption of regulated quality management systems (ISO, CMM, GMP, etc.).
Compliance with Vietnamese environmental protection laws.

The investment registration process at SHTP takes about 2.5 months, including 10 days for technology clarification, a maximum of 45 days for registration and issuance of investment certification, and 30 days for activities guiding compliance with construction and planning regulations at SHTP. Investors will not incur fees for receiving the investment certification.

>>> See more: What is the definition of a Tech Hub? Why do businesses choose to set up offices here

The semiconductor electronics company BESI (Netherlands) was granted an investment certificate at Saigon High-Tech Park in November 2023

Conclusion

The article has compiled essential information about the tax incentives at Saigon High-Tech Park, favorable land lease terms, and the criteria that businesses need to meet to enjoy SHTP’s benefits. For any inquiries or clarification on investment matters at SHTP, investors can contact the Management Board of the High-Tech Park for assistance.

Mr. Minh Hoang

Management Board of Saigon High-Tech Park

Lot T2-3, Saigon High-Tech Park, District 9, Ho Chi Minh City

Phone: (84-8) 3736 0291 (110)

By the end of 2023, the office market in Ho Chi Minh City will be more vibrant with many new entrants joining the market. When Metro Line 1 becomes operational in 2024, office projects along the metro line will become focal points in the office market in Ho Chi Minh City.

Office Market Situation in Ho Chi Minh City Q3/2023.

In Q3/2023, the Grade A office market in Ho Chi Minh City welcomed two new projects in non-central areas (Thu Thiem, former District 2). These projects provided an additional 80,000m2 of high-quality office supply in Ho Chi Minh City.

Despite the global trend of abandoning offices in many areas, the office market in Ho Chi Minh City remained relatively stable in Q3. Especially in the Grade B segment, where rents and occupancy rates fluctuate less during the quarter. Meanwhile, for Grade A offices in the city center, the occupancy rate decreased by more than 7% (according to a report by Cushman & Wakefield) compared to the same period last year. The reason cited was the trend of closures and relocations of offices by many businesses, as well as the new attraction from Grade A offices outside the city center. Landlords of office buildings in the central area were noted to have more flexible and attractive policies, such as rent reductions, to attract customers.

In the future, areas outside or near the city center, such as Thu Thiem, will provide a significant supply of office spaces for the Ho Chi Minh City market

In Q4, Ho Chi Minh City will welcome two large-scale quality office projects coming into operation, promising to be a vibrant period in the market as investors increasingly focus on construction quality. Evidence of this is the growing number of office buildings with green office certifications and higher standards than before.

However, the Ho Chi Minh City market still faces an oversupply situation. Both office rents and the number of personnel working in Ho Chi Minh City are higher than in other economic centers in the region, such as Bangkok or Jakarta, by 2 to 3 times. The office market is not yet overly large, and with increasing demand, especially after the pandemic, the rents in Ho Chi Minh City remain relatively high, especially in the city center. Therefore, more and more businesses are choosing office locations outside the city center that still have good connectivity and are more affordable. Especially in 2024, when Metro Line 1 Ben Thanh – Suoi Tien becomes operational, offices along Metro Line 1 will become attractive magnets for businesses.

Explore more: Conveniently located office for rent near Metro Line 1 for easy commuting

Offices along the metro line – the future model of Ho Chi Minh City

Ho Chi Minh City has clear policies on experimenting with the compact city model, following the Transit-Oriented Development (TOD) urban planning direction, which means developing the city based on the transportation network, especially public transportation nodes. First, Ho Chi Minh City will experiment with this model on Metro Line 1 and Ring Road 3, then expand it to other metro lines and ring roads.

Metro Line 1 will be the first place to experiment with the compact city model in Ho Chi Minh City

With the vision of urban development in height, office buildings along the metro line are expected to flourish in the future, integrating multi-functional office buildings for dining, shopping, and entertainment. OneHub Saigon located in the Saigon High-Tech Park is a typical project for this model. It is a multi-functional office complex directly connected to Metro Line 1 at Station 12. The project integrates seven office towers and many functional buildings, accompanied by green spaces for outdoor activities. The office towers at OneHub Saigon are built to LEED green office standards, suitable for businesses focusing on sustainable development or prioritizing ESG criteria (Environment – Social – Governance). This is the future office model that businesses are waiting for, a versatile office solution, convenient for commuting, and sustainable infrastructure development.

Businesses prioritizing ESG in the future will be attracted to green offices along the metro line

Offices along the metro line will become the future model of Ho Chi Minh City, similar to what Japan and other developed countries are building. Offices will be concentrated near electric train stations, and bus stops, allowing workers to commute without personal vehicles such as motorcycles or cars easily. Not only improving traffic issues, the TOD urban planning model also helps limit environmental pollution from vehicle exhaust and noise. Additionally, it enhances the safety of people participating in urban traffic. The ability to connect with customers and attract talent for businesses with offices along the metro line will also be improved, helping businesses thrive. It can be seen that the office model along the metro line will bring many benefits for both landlords and tenants in these office buildings.

High-quality green office buildings bring many benefits to both tenants, users, and landlords

Another factor that tenants will prioritize is the cost, as the rent of offices along the metro line, such as OneHub Saigon, is much more optimized compared to offices in the central area, while still having good connectivity due to being located on the main axis and the advantage of metro public transportation. In the future, projects like OneHub Saigon located outside the city center will receive more attention, along with increasing competition for office buildings in the central area against new projects with strengths in both quality and rental prices.

Sustainable Development Trends in Office Construction in Ho Chi Minh City

Not only office buildings along the metro line like OneHub Saigon, but many office projects in Ho Chi Minh City are increasingly emphasizing sustainable development in the construction and operation of office buildings.

New office buildings are paying more attention to the working experience of employees inside the building. Factors such as thermal balance, indoor air quality, and efficient energy use are becoming more and more highlighted in the construction and operation of buildings. This not only brings health and well-being benefits to workers but also helps businesses operate efficiently and save costs. Landlords also find it easier to attract customers in the highly competitive market.

Green office buildings will bring health and well-being benefits to occupants

Green offices along the metro line are the type of offices that Ho Chi Minh City needs for the future. These buildings not only offer economic and transportation advantages but also contribute to achieving sustainable urban development goals in Ho Chi Minh City.

Conclusion

The office market in late 2023 in Ho Chi Minh City is predicted to become more vibrant with the increasing number of high-quality Grade A office projects coming into operation. Offices along the metro line are anticipated to represent a new future in the Transit-Oriented Development (TOD) urban model that Ho Chi Minh City has envisioned. Green office projects along the metro line, such as OneHub Saigon, will pose strong competition for traditional office buildings, meeting various criteria that businesses are currently concerned about.

Learn more: Data center with over 70 million USD investment – 1Hub Data Center

In the current volatile economic landscape, many businesses are grappling with pressures to return leased spaces and are seeking cost-effective solutions. Among them, technology and financial enterprises are also inclined to downsize office spaces and relocate to suburban areas or opt for affordably priced rental office spaces to cut costs. According to experts, this transformation is referred to as Office Decentralization. So, what is the Office Decentralization trend, and why is it becoming a noteworthy phenomenon?

Exploring the Office Decentralization trend

Definition of Office Decentralization

This is the trend of shifting office spaces and business operations away from the central business district. Office Decentralization is a common trend in the current economic situation. Especially startups, technology, and financial companies are seeking solutions to reduce office expenses. Instead of retaining expensive rental office spaces in city centers, relocating offices to more affordably priced ones is an ideal option. Decentralization brings numerous benefits in terms of cost, convenience, and flexibility for businesses while also fostering sustainable development in the office real estate sector.

Office Decentralization entails having affordable rental office spaces while ensuring high-quality

Characteristics of Office Decentralization

The trend in the office sector, apart from moving away from the central business district and cost reduction, also has the following characteristics:

Good amenities and services: Despite being located outside of the central business district, suburban areas still provide excellent amenities and services. These include convenient transportation, comprehensive infrastructure, ample spaces, and facilities to serve the local residents as well as employees in the office areas.
Flexibility and enhanced digitization: Decentralization enables greater flexibility for businesses in organizing work and managing personnel. Moreover, this trend also promotes the adoption of technology in remote management and communication, enhancing work efficiency and connectivity between branches and offices.
Fostering sustainable development: This trend contributes to the advancement of the affordable office rental real estate segment, thereby distributing urban burdens, alleviating pressure, and creating a more efficient utilization of space.

Decentralizing offices to areas outside the CBD while maintaining all the amenities of a standard office rental environment

The current status of Office Decentralization in Ho Chi Minh City

According to Knight Frank, a leading global real estate consultancy, based on their survey conducted in the first two quarters of 2023, office rental prices in Ho Chi Minh City are predicted to continue rising in the future, especially for Grade A or Grade B offices. However, the current trend is that startups and small businesses are gradually shifting their offices away from the CBD. Districts such as Binh Thanh, Phu Nhuan, District 4, District 7, Tan Binh, and Thu Duc are favored due to their affordable office rental prices and comparable amenities. This is attributed to convenient transportation infrastructure, making commuting from suburban areas to the central business district easy and fast.

Why has Office Decentralization become a trend at the current time?

Office Decentralization in Ho Chi Minh City brings benefits to businesses by saving costs, optimizing operations, enhancing flexibility, improving quality of life, and creating fair competition opportunities for small and medium-sized enterprises (SMEs). This aids in improving work efficiency and contributes to the overall sustainable development of the economy specifically to the office rental market.

In response to the growing needs of post-pandemic businesses, many affordable office rental spaces are also available in Thu Duc City, including District 2, District 9, and the former Thu Duc District. These areas cater to the needs of businesses with competitive costs and high-quality infrastructure. Particularly, the development of public transportation systems such as the Metro line also facilitates commuting and connectivity to other areas of the city more easily.

OneHub Saigon – The integrated business park within Saigon Hi-Tech Park

OneHub Saigon – The integrated business park situated at the entrance of Saigon Hi-Tech Park in Thu Duc District and adjacent to the Hanoi Highway. It is one of the appealing locations offering competitive office rental costs in comparison to other places in the city with similar quality and infrastructure. In addition to its competitive pricing and alignment with the Decentralization trend in Vietnam, OneHub Saigon also attracts numerous businesses to set up their offices due to the surrounding amenities and the project’s direct connection to Metro Line 1 via a pedestrian bridge.

Currently, OneHub Saigon has successfully completed Tower 1 achieving LEED Silver certification. In the future, there will be more buildings following its master plan along with facilities such as commercial centers and training centers. This holds the promise of being an appealing choice for businesses looking to optimize office rental costs while ensuring business efficiency.

Furthermore, OneHub Saigon stands out compared to many other integrated business parks. It not only embraces the noteworthy trend of hybrid working models but also designs office spaces combined with accommodation (Work-Office-Home-Office). These spaces are spacious and well-ventilated enough to create a comfortable working environment for employees.

In addition, the wide floor plates at OneHub Saigon allow businesses to easily arrange their workspaces while the outdoor campus, unlike other buildings, creates a comfortable and unrestricted atmosphere for individuals. Workers living and working at OneHub Saigon can experience a comfortable lifestyle with a full range of surrounding amenities while still ensuring the highest level of work performance.

Inside Tower 1 at OneHub Saigon Business Park

Conclusion

Office Decentralization in Ho Chi Minh City – the trend of shifting offices away from the central business district – is gradually becoming a viable solution for businesses amidst challenging economic circumstances. Relocating offices to suburban areas with affordable office rental costs is a smart choice to optimize costs and enhance business efficiency. This trend benefits not only businesses but also employees. It can be seen as a promising and potential shift for sustainable development of businesses in the future, with OneHub Saigon being an ideal choice in East Saigon.

Read more: What is a Green Office?

The relentless race to upgrade office quality is unfolding vigorously worldwide, and the crucial aspect lies not only in providing professional spaces but also in the ability to meet increasingly high standards. In the current and future context, an indispensable factor is affordable office space for rent. Join us as we explore significant developments and opportunities that this trend brings about.

Is the current quality of global offices “lagging behind”?

According to Cushman & Wakefield Vietnam, 72% of offices in the Asia-Pacific region will not meet the leasing demands of leading businesses. Compared to the European or North American markets, the risk associated with office buildings is less common in the Asia-Pacific region. However, with the increasing societal and tenant interest in sustainability in real estate, the competition to optimize offices is becoming more intense in this region.

A survey report on offices in Asia in Q3/2023 by Cushman & Wakefield indicates that half of the office supply in the Asia-Pacific region needs upgrading. Among them, only 43% of the new supply in the market has obtained sustainability certifications such as LEED, Green Mark, etc., and only about 28% of the supply is capable of meeting standards for top-tier tenants.

The race to optimize office is gradually becoming more intense

Similar office survey reports released by Cushman & Wakefield in the United States and Europe also indicate that 85% of office buildings in the United States and 76% in Europe are at risk of becoming outdated or need upgrading to maintain competitiveness in the market.

The driving factors for demand in these markets also differ. In the United States, the return-to-office rate is low, and the growth rate of office employment is weak. According to forecasts, these factors will lead to an office space surplus of up to 1.1 billion square feet by 2030.

Learn more: Why should you choose an office in Saigon Hi-Tech Park?

The race for office quality in Vietnam is also “hotter” than ever

Tenants in Vietnam are becoming increasingly demanding, requiring offices to meet the highest quality standards. This reflects a common trend in the market as users become more discerning and have a wider range of choices.

The significant surge in office supply in recent times is an undeniable reality, providing businesses with more options than ever before. However, it is noteworthy that in the context of this rapid supply increase, the absorption rate of office spaces is slowing down. This poses a significant challenge for investors and office owners.

In this context, investors who do not improve and enhance the quality of their offices will face difficulties competing with other players. This is also why the race to optimize assets is becoming more intense than ever.

Green building standards are becoming an important standard

Notably, businesses are increasingly showing interest in green building certifications, demonstrating a commitment to the environment in a sustainable manner. This is not only a global trend but also a decisive factor in office selection.

Especially in major cities like Ho Chi Minh City, green building standards are becoming an important criterion, providing favorable conditions for businesses when choosing offices. This is a positive trend, driving the development of high-quality office projects outside the city center.

Green Building Status in Vietnam

Currently, many projects are concentrated in areas with limited land resources, leading to a significant reduction in green space. This contributes to a notable shrinkage of living and working spaces for urban residents, negatively impacting environmental quality.

The greenery ratio in Vietnam is currently only 1/5 to 1/10 compared to standards set by United Nations organizations. This indicates scarcity and deficiency of green spaces, putting significant pressure on maintaining ecological balance in developing urban areas.

Large urban areas like Ho Chi Minh City are facing a shortage of land for investing in the construction of green and sustainable spaces. This implies the need to find innovative solutions to optimize the use of existing spaces and create a better living environment for the community.

See more: What is a green office building?

OneHub Saigon is the ideal location for green office solutions

To address the above situation, strong encouragement is needed to invest in projects with green certifications. Simultaneously, ensuring significant green spaces in construction projects will contribute positively to improving the quality of the urban environment and enhancing the attractiveness of these areas for residents. OneHub Saigon, an integrated business park will be an ideal location for green office solutions.

Affordable Office Spaces in Ho Chi Minh City in the Quality Race

Current Situation

In central areas of the city, finding affordable office spaces for rent has become extremely challenging. High competition and limited supply have made it difficult for businesses to find options that fit their budgets.

Due to the scarcity of space and the rising cost of office rent in the city center, many savvy businesses have opted for high-quality offices in peripheral areas such as Thu Duc City. This not only brings the benefit of reasonable prices but also means enjoying spacious working environments and easy access to various social amenities. OneHub Saigon is considered an ideal affordable office space for these conditions.

OneHub Saigon – Quality Office Spaces for Rent

OneHub Saigon, an integrated business park located at the entrance of the Saigon High-Tech Park, along with Hanoi Highway, aims to be a ‘technology home’ providing shared office solutions for companies and businesses in technology-related industries and supporting services such as information technology, material technology, biotechnology, logistics, etc.

With the concept of Work – Live – Play – Learn and a focus on human development, OneHub Saigon integrates a central commercial area, office buildings, an event organization area, and an outdoor sports area…

See more: 70 million USD – 1 Hub Data Center

OneHub Saigon – Tower 1

Significantly, Tower 1 of OneHub Saigon has achieved LEED Silver certification – an environmentally friendly and sustainable standard developed by the U.S. Green Building Council. This makes it the first building in the High-Tech Park to receive such certification, along with low-rise buildings designed in a campus style, which is becoming increasingly popular.

The construction model of OneHub Saigon is based on successful Business Parks in Singapore such as the International Tech Park and Changi Business Park, featuring low-rise office buildings combined with spacious green areas, placing people at the center of development.

Conclusion

In the context of the increasingly competitive race to upgrade office quality, finding affordable office spaces in central city areas has become a significant challenge. However, smart businesses have recognized the true value of modern workspaces and have chosen high-quality offices outside the central business district of Ho Chi Minh City, such as the Thu Duc area.

OneHub Saigon not only provides an optimal working environment but also ensures reasonable rental prices, catering to businesses seeking the perfect balance between quality and cost savings.

Explore the mordern campus-style design and environmentally friendly workspace at Tower 1, OneHub Saigon. Enjoy a high-quality international standard working environment in this LEED certification office in HCM City.

Strategic location at the entrance of Saigon Hi-Tech Park office with great development potential in Thu Duc City

Recently, the trend of decentralization in Ho Chi Minh City from central areas has become a noteworthy phenomenon. This trend is influenced by the dynamic and ever-changing market economy.

The trend of decentralization, moving offices away from central areas, is gradually becoming more common

Addressing the economic challenges in the current difficult market conditions, relocating offices from the central business district (CBD) to the suburbs brings significant benefits. This includes larger floor spaces, allowing businesses to optimize office space and create favorable conditions for future expansion as well as company growth.

Moreover, moving offices to suburban areas helps alleviate traffic and road congestion. Additionally, this trend fosters a comfortable and nature-friendly working environment due to the presence of lush greenery and landscapes compared to the tradition building in CBD.

Over time, businesses have recognized the significant advantages of choosing to relocate their offices to the suburban periphery. One of the most important benefits is lower office rental costs, resulting in cost savings for operating expenses.

The investment by the Ho Chi Minh City People’s Committee along with the upcoming operation of Metro Line 1 is reshaping the infrastructure of Thu Duc City

Another crucial factor is the flexibility during business operations. Placing offices in suburban areas allows businesses to tap into new markets by accessing urban and residential areas in Binh Duong, Nhon Trach, Dong Nai, and other regions.

The decentralization and relocation of offices from the CBD demonstrate the adaptability and flexibility of businesses. They enable companies to seize opportunities and tackle the challenges arising from a dynamic business landscape.

However, this trend also presents certain challenges. Moving away from the CBD may affect convenience in connecting with other companies, organizations, and centralized services within the city. Moreover, constructing and managing offices in suburban locations require more attention to improving infrastructure, transportation, and community facilities.

Why should businesses choose office buildings that meet environmentally friendly standards?

What is LEED Silver certification?

LEED certification is an international system for evaluating and certifying green buildings and real estate projects. LEED (Leadership in Energy and Environmental Design) is a standard developed by the US Green Building Council. Its purpose is to encourage and assess the positive impacts of construction on the environment and human health.

LEED Silver certification is one of the levels of LEED certification, where Silver represents an intermediate level of compliance with green requirements and standards. To attain LEED Silver certification, a building must meet stringent requirements in areas such as energy efficiency, water management, and sustainable construction materials. Additionally, compliance with standards for indoor air quality and environmental management is essential.

The benefits of choosing LEED-certified office workspaces

Community connectivity: Environmental-friendly office buildings or those within integrated business parks can build better communities and foster connected workplaces. They offer combined living and working spaces, creating better conditions for meetings and interactions. These buildings can also host events, conferences, and community activities, encouraging collaboration and sustainable developments.

Community connectivity, networking, and interaction

Nature friendliness: Green office buildings bring occupants closer to nature. Designed and constructed with the environment in mind, they promote energy efficiency, water conservation, and proper waste management. With lush greenery and open landscapes, these spaces create a refreshing environment, benefiting mental and physical well-being as well as encouraging interaction, connection, and creativity to reduce stress.
Increased work efficiency and creativity: A working environment close to nature with lush greenery and open spaces can enhance employee comfort, boost efficiency and creativity. Beyond increasing work productivity, it fosters personal development and employee satisfaction, helping businesses retain talents and achieve sustainable successes.

Increase productivity, creativity and connectivity among employees

Tower 1 at OneHub Saigon – An office building designed to Singapore standards and has attained LEED certification office in HCM City

OneHub Saigon is an Integrated Business Park located at the gateway of Saigon Hi Tech Park, situated on Hanoi Highway. OneHub Saigon visions to be a “technology hub” in Thu Duc City and offers shared office spaces of varying sizes. These spaces are available to companies operating in diverse sectors, including information technology, material technology, biotechnology, logistics, banking, call centers, and many more.

OneHub Saigon was constructed folliwing the concept of Work – Live – Play – Learn, and a focus on placing people at the center of development. The project seamlessly integrates a commercial center, office buildings, event venues… and outdoor sports facilities.

Tower 1 at OneHub Saigon – LEED certification office in HCM City

Tower 1 at OneHub Saigon achieved LEED Silver certification – an eco-friendly and sustainable standard developed by the US Green Building Council. It is also the first building to be LEED certified in Saigon Hi-Tech Park, with the low-rise campus-style buildings currently a trending concept.

Following successful business park models in Singapore like International Tech Park and Changi Business Park, the low-rise office towers with extensive green spaces prioritize people’s well-being, OneHub Saigon is directly connected to Station No.12 of Metro Line No.1, which is under construction. The Metro line is expected to be in operation by the end of 2023 or early 2024. When in operation, it promises to bring a new working culture to the city. Employees working at OneHub Saigon will have the opportunity to embrace this unique culture in their daily lives, adopting new habits, walking, and engaging in more activities, ultimately leading to increased productivity.

OneHub Saigon with a Singapore-standard office building design

Conclusion

OneHub Saigon is a Grade A Campus-style LEED certification office in HCM City located outside the central business districts. By meeting green and sustainable standards, this office project creates a high-quality working environment and contributes to the sustainable development of Saigon Hi-Tech Park.

With Tower 1 achieving LEED Silver certification and developed by reputable contractors, OneHub Saigon as a whole and Tower 1 specifically provides modern and well-equipped office rental spaces. It is an ideal choice for businesses and organizations seeking eco-friendly workspaces that contribute to environmental protection.

Learn more: What distinguishes OneHub Saigon – The Grade A Campus-style LEED certification office in HCM City?

The world is undergoing the Industrial Revolution 4.0 more strongly than ever. As technology has been widely applied in all aspects of life, the emergence of artificial intelligence (AI) has almost completely changed the way humans perceive technology. As a consequence of outstanding development of technology, more and more digital businesses are being established and developed. To have the most favorable conditions for growth, these businesses will undoubtedly need a spacious, high-quality and modern space to participate in the game. By grasping this trend, the Vietnamese Government has facilitated many conditions, policies and specific areas to support the growth of businesses in technology.

In this article, let’s explore Vietnam in the race of Industrial Revolution 4.0 as well as the important information about OneHub Saigon – the ideal integrated business park in Ho Chi Minh City for nurturing and developing technology businesses in the age of digital.

Vietnam is entering the “booming period” of digital technology

It can be seen that Vietnam is gradually catching up with the trend of Industrial Revolution 4.0 when it has successfully applied technologies to many aspects of life. One of the most obvious examples is the explosion of e-commerce where buying and selling, exchanging goods/services have become more popular and convenient than ever before. Moreover, artificial intelligence (AI) is also one of the technology industries showing outstanding development. AI softwares has proven its potential when it is widely applied in various industries such as medical, transportation, finance, education and many other key ones.

Digital technology has become an indispensable part of the modern life

Recognizing the importance of digital technology and not being left out of the race to develop this field, Vietnam aims to build a strong technology industry by 2025. In this vision, Vietnam will have over 70,000 businesses operating in the technology industry with more than 1 million highly skilled workers playing a crucial role in this key field.

The efforts to promote development of the Hi-Tech industry in Vietnam have created new opportunities, promoting innovation and economic development, thereby contributing to making Vietnam a bright spot on the regional as well as international technology map. At this time, preferential and supportive policies gradually became important factors in promoting business growth along with the establishment of Hi-Tech parks. These parks are created with the aim of attracting and facilitating conditions for the development of domestic and foreign businesses in the industry.

Creating a dedicated space for the development of Hi-Tech can help the Government focus on supporting the growth of Hi-Tech businesses. Typical is the Saigon Hi-Tech Park which has attracted many large technology corporations both domestically and internationally, such as Intel, Samsung, Indec, FPT, etc. as a result of preferential policies and focus on developing technological transport infrastructure within its region. These are all important policies of Vietnam to help technology businesses operate more efficiently, whether they are domestic or foreign-invested businesses.

More details: Tax incentives exclusively for businesses in Ho Chi Minh City High-Tech Park

Saigon Hi-Tech Park – A place where many domestic and foreign technology businesses concentrate

Although there are many “tech giants” gathered in the area, Saigon Hi-Tech Park still facilitates enough conditions for small and medium-sized enterprises, even startups to comfortably develop. In fact, this park is being paid special attention by the Government and investors with many preferential policies, attractive tariffs as well as owning A-Grade office areas, which have qualified enough to compete with buildings in the central business districts and attract many technology businesses to come and develop in the long term.

OneHub Saigon – The ideal integrated business park for businesses in the age of Industrial Revolution 4.0

Project information about the ideal integrated business park

OneHub Saigon is the first integrated business park at Saigon Hi-Tech Park with its floor plate up to 160.00 meter squared, providing many services including office, entertainment, commerce, accommodation and data center. This project is invested by Gaw NP Capital – a reputable investor with outstanding green projects in Asia and global, committing to bring the optimized office solutions for clients. OneHub Saigon promises to be a shared home for the technology businesses community in Vietnam to collaborate and develop together in the future.

The first integrated business park in Ho Chi Minh City at Saigon Hi-Tech Park

Located on the front of Hanoi Highway, directly connected to Metro station No. 12 of Metro Route 1 and Belt Road 3, OneHub Saigon is highly appreciated for its strategic location at the gateway of Saigon Hi-Tech Park and has convenient trade with many key areas such as Binh Duong, Dong Nai, Nhon Trach. Businesses are looking for offices for factories in the surrounding area or need to relocate away from the CBD following the trend of Decentralization, OneHub Saigon will be the ideal choice.

The “prime” location of Integrated Business Park OneHub Saigon

New technology house

The project aims to become a technology hub in East Saigon – the modern and smart Tech Hub in Thu Duc City, inspired by leading Hi-Tech parks in India and Singapore, creating connectivity among businesses within the region and optimizing efficiency for employees. In addition, OneHub Saigon inherits the “ADN” with special elements of Hi-Tech parks such as campus model, flexible lush greenery, ect. along with many facilities and special offers for businesses.

The highlight of the project is that OneHub Saigon is designed and built following the campus office model with a focus on human-centered development. For those working in high-pressure industries such as information technology, relaxation and comfortable workspaces are essential. The Integrated Business Park OneHub Saigon provides a friendly lush greenery along with various spaces for recreational activities, all designed by renowned architect Colin K. Okashimo who has been honored as “Architect of the Year” in Singapore. With modern open spaces, employees and businesses at OneHub Saigon can connect and relax after stressful working hours.

Tower 1 in Integrated Business Park OneHub Saigon – the modern campus-style green office building

Besides, OneHub Saigon’s Tower 1 building also achieved the LEED green office certificate, an indispensable factor for sustainable business development. By meeting many strict evaluation standards of LEED certificates such as environmental quality in the building, lush greenery, energy-efficiency, ect., the green office buildings at OneHub Saigon will be an ideal place for businesses aiming for a sustainable operating model in the age of Industrial Revolution 4.0.

Not only being highly appreciated for its campus model, OneHub Saigon also attracts many businesses due to its ability to well meet the office rental demand. The project offers many Grade A office space with a large floor plate of up to 2000 meter squared each, column-free and a spacious 3 meters high ceiling. With the need for installation, high usage of machines and large workforce in Hi-Tech industries, spacious office space and competitive rental cost as at OneHub Saigon is a huge plus.

Floor plate with spacious space, colum-free inside green office building at OneHub Saigon

Million Dollar Data Center

With the scale to become a potential Tech Hub in Ho Chi Minh City, OneHub Saigon Business Park also has a data center invested more than 70 million USD. This will be an effective tool for the digitization of business data when most of their activities now mainly take place in cyberspace. Renting and using a high-quality data center will be a factor to help businesses operate more efficiently.

At the same time, in order to help businesses operate seamlessly and continuously, the green office buildings at OneHub Saigon are equipped with 24/7 maximum security support, managed by reputable management partners. Technology businesses are guaranteed to operate uninterruptedly without being left behind in the fast-paced development of the Hi-Tech industry. The flexibility in buildings’ working hours also greatly supports technology businesses adopting remote working, hybrid working, or having a need for working overtime.

The demand for data centers of businesses is increasing day-by-day

It can be seen that Integrated Business Park OneHub Saigon promises will be an ideal destination for many businesses to invest and develop. With its exceptional potential, OneHub Saigon offers diverse solutions to optimize workspace for businesses, especially those operating in the technology industry.

Conclusion

The world has never been more strongly propelled into the digital age than it is today, and Vietnam cannot be left behind in this race. The use and development of technology have become essential in this era. Recognizing this trend, Vietnam has implemented various preferential policies and established Hi-Tech parks to facilitate conditions for the development of Hi-Tech businesses. Integrated business parks like OneHub Saigon are the foundation that drive the increasingly powerful growth of technology businesses in the future.

08-11-2023

A Kinds of Legal Entities for Foreign Businesses When Opening a Company in Vietnam

Vietnam is an attractive market with numerous business opportunities for foreign enterprises. However, to access this potential market, companies need suitable strategies and forms of presence. For companies based abroad that wish to explore the market, registering a Representative Office in Vietnam is one of the options, instead of a limited liability company, branch, etc. So, why do foreign businesses choose to establish a Representative Office in Vietnam? In this article, Onehub Saigon will explain the main reasons and the benefits that Representative Offices bring to foreign enterprises.

Why Do Foreign Businesses Choose Vietnam for Investment?

Vietnam is a strategically located country with a favorable business environment, active participation in significant trade agreements, and maintains stable GDP growth rates. These strengths attract foreign investments and provide favorable conditions for the business activities of foreign enterprises in Vietnam.

Vietnam is a country with a favorable strategic location

Vietnam is a country with a favorable strategic location

In terms of geographical location, Vietnam is situated in the heart of Southeast Asia, sharing borders with China, Laos, and Cambodia. This makes it easy for Vietnam to connect with major economies in the region such as China, Japan, and South Korea. Furthermore, with a coastline extending over 3,260 kilometers along with a system of deep-water ports, Vietnam serves as a vital gateway for businesses to access the vast ASEAN market as well as connect with Asia and the world.

Regarding the business environment, according to the World Bank’s Ease of Doing Business ranking in 2022, Vietnam ranks 70th out of 190 countries and territories, rising 23 spots since 2016. The Vietnamese government has implemented significant reforms to improve the business environment, such as streamlining administrative procedures, reforming investment policies, taxes, and customs. This attracts foreign investors looking to expand into the Vietnamese market.

Moreover, Vietnam is a member of 15 crucial free trade agreements like CPTPP and EVFTA with the EU. These FTAs help expand export markets, reduce import tariffs, enhance economic and legal cooperation with countries, thereby boosting foreign investment in Vietnam.

Vietnam’s economy also maintains stable growth, with a projected GDP growth of 8% in 2022 and 6.7% in 2023 according to the IMF. Macroeconomic stability provides investors with greater confidence when injecting capital into Vietnam.

Vietnam's GDP growth in 2011 - 2022

Vietnam’s GDP growth in 2011 – 2022

Thanks to these advantages, Vietnam is increasingly attracting a multitude of Foreign Direct Investment (FDI) projects. According to the Ministry of Planning and Investment, the total FDI capital into Vietnam in the first 9 months of 2022 reached nearly USD 14.7 billion, a 7.8% increase compared to the same period in 2021. This signals that foreign investors highly appreciate the potential and investment opportunities in the Vietnamese market.

Establishing a Representative Office in Vietnam

In the context of Vietnam becoming increasingly appealing for foreign investment, many international businesses choose to establish representative offices to penetrate the market. The number of foreign Representative Office in Vietnam has sharply risen in recent years, reaching over 1,500 in 2022, nearly a 40% increase compared to 2020. So why do businesses favor this form?

Grade A office rent in Ho Chi Minh City is lower than major cities in the region

Grade A office rent in Ho Chi Minh City is lower than major cities in the region

One of the biggest advantages is cost-effectiveness. According to a survey by Knight Frank Vietnam, the average rent for Grade A offices in the central areas of Ho Chi Minh City is approximately USD 57.6/m2/month in the third quarter of 2023. A representative from Knight Frank believes that the trend of reducing rents for Grade A offices is partly the result of new office buildings opening in outlying areas – where the rent are quite attractive compared to the central district 1.

Additionally, the procedures for establishing a Representative Office are straightforward, taking only about 1 month to become operational, helping businesses shorten the preparation time compared to establishing a subsidiary or joint venture. This overcomes the time barrier when entering a new market.

Procedures for setting up a representative office are simple

Procedures for setting up a representative office are simple

Representative Offices also serve as gateways for businesses to explore the market, promote trade, and communicate with partners before making long-term investment decisions. Support services such as legal advice, accounting, and recruitment also make initial operations smoother.

Therefore, with low costs, simple procedures, and initial effectiveness, establishing a Representative Office is becoming the choice of many foreign enterprises looking to explore and conquer the potential Vietnamese market.

Limitations to be Aware of

While representative offices bring many benefits to foreign businesses when entering Vietnam, this form still has some limitations to be aware of.

There are some limitations to note when setting up an office in Vietnam

There are some limitations to note when setting up an office in Vietnam

First, the activities of the Representative Office Vietnam are limited to market research and product marketing. Business and direct investment activities such as contract signing and importing goods are not allowed.
Second, from a legal perspective, Representative Offices do not have legal status, so they face many disadvantages in transactions and contract signing in Vietnam.
Third, the number of foreign staff working in the Representative Office is limited, with a maximum of only 3 foreigners according to the latest regulations. This affects the daily operations of the office in the new market.

A Thriving Business Ecosystem at Saigon High-Tech Park

Setting up a Representative Office at Saigon High-Tech Park (SHTP) will bring many benefits and development opportunities for foreign technology companies.

Set up a representative office at SHTP - Spacious, comfortable office space and many opportunities to connect and develop

Set up a representative office at SHTP – Spacious, comfortable office space and many opportunities to connect and develop

SHTP has a high-quality workforce in information technology and communication, with a concentration of many engineers, programmers, and top technology experts in Vietnam. This helps businesses easily access and utilize high-quality human resources for research and development activities.
SHTP is the houseof many leading technology corporations in Vietnam and the world. Foreign businesses have the opportunity to collaborate on research and technology transfer with potential partners.
The modern and synchronized infrastructure of SHTP, including transportation systems, internet, urban utilities, will effectively support the daily operations of the Representative Office Vietnam.
The innovative and entrepreneurial community at SHTP provides many opportunities for learning, networking, and working with potential partners.
The procedures for establishing businesses or investment projects receive maximum support from the management board of the high-tech park. Businesses have the opportunity to expand into direct investment later with simpler procedures.

In general, SHTP is an ideal destination for foreign technology companies to establish a Representative Office in Vietnam, maximizing the advantages of human resources, technology, and development opportunities. When choosing to set up a Representative Office at Ho Chi Minh City High-Tech Park, foreign businesses should consider Onehub Saigon with its attractive incentives.

Set up a representative office at Onehub Saigon - an ideal destination for foreign businesses

Set up a representative office at Onehub Saigon – an ideal destination for foreign businesses

OneHub Saigon is a 12-hectare integrated business park, located in the Saigon High-Tech Park (SHTP). This is an ideal working space for foreign businesses intending to invest in:

Suitable for businesses in high-tech fields such as microelectronics, information technology and communication, precision mechanics, automation and robotics, new and advanced materials, new energy, biotechnology, etc.
Businesses will benefit from the city infrastructure, security, and amenities of OneHub Saigon, including 7 internationally standard office towers, multi-functional commercial area, training center, and entertainment facilities.
Businesses will connect with leading high-tech businesses both domestically and internationally, as well as functional agencies and startup support organizations in SHTP.
Businesses will participate in activities promoting trade, business cooperation, technology transfer, and high-quality human resource training in SHTP.

How to establish a representative office in Vietnam?

Steps to establish and rent a representative office in Vietnam

Steps to establish and rent a representative office in Vietnam

5.1. Conditions

Foreign businesses must be legally established and operating in their home country.
The industry and business activities of foreign businesses are not prohibited from investing in Vietnam.
Have a power of attorney from the foreign business to the individual representative to carry out the procedures for establishing the Representative Office.

5.2. Steps to Establish and Set Up a Representative Office Vietnam

Register the business.
Find a location and complete office rental procedures.
Register for taxes.
Register with relevant authorities.
Prepare the registration dossier for the Representative Office.
Wait for the operational license to be issued.
Complete the remaining procedures after obtaining the license.

5.3. Rights and Obligations of Representative Office Vietnam

Enterprises setting up representative offices in Vietnam need to note the following rights and obligations:

Comply with Vietnamese law.
The Representative Office is a dependent unit of the business, with the task of representing and authorizing for the interests of the business and protecting those interests.
The main function of the Representative Office is to represent, under authorization, the business, carrying out supporting, communicating, and engaging with partners in accordance with the Business Registration Certificate issued to the business.
The name of the Representative Office must be written in Vietnamese alphabet, the letters F, J, Z, W, digits, and symbols. Additionally, the full name must include the name of the business followed by the phrase “Representative Office”.

Conclusion

The Vietnamese market is experiencing robust growth with stable GDP growth rates, a young population, and increasing per capita income. This presents a great opportunity for foreign enterprises to expand their markets and seek profits. Establishing a Representative Office helps foreign businesses quickly establish a presence in Vietnam, save costs, and enjoy the benefits and conveniences provided by Vietnamese law for Representative Office in Vietnam. This is the main reason why many foreign enterprises choose this form to enter the Vietnamese market.

>>> See more: Hybrid Working model is ideal for businesses

After the pandemic, businesses demanded more from an office building, not only in terms of quality and energy-efficiency but also in terms of environmental friendliness. In response to this trend, modern green office buildings are becoming more common, meeting international standards for green construction. In this article, let’s learn about the EDGE and LEED standards and why green office buildings adhere to them!

What is the EDGE Standard?

EDGE stands for Excellence in Design for Greater Efficiencies, is an international standard for designing and constructing architectures that are resource-efficient and environmentally friendly. This standard was developed by the International Finance Corporation (IFC) to meet the increasing demand for sustainable designs in housing, real estate, and construction projects in developing countries.

EDGE is one of the standards that green office buildings are following

To achieve EDGE certification, buildings must meet three basic criteria including water conservation, energy efficiency, and material conservation. EDGE certification is divided into different levels corresponding to the ability to meet the criteria of the EDGE certification system, including:

Level 1 – EDGE Certification: For buildings achieving a minimum of 20% water, energy, and material savings.
Level 2 – Advanced EDGE: For buildings achieving a minimum of 40% on-site energy savings.
Level 3 – Zero Carbon: Applies to buildings achieving Advanced EDGE certification and 100% on-site renewable energy.

In addition to increasing investment efficiency and operational cost savings, buildings that meet EDGE standards can also enhance their reputation in the real estate market by demonstrating their environmental friendliness as an evidence of Corporate Social Responsibility (CSR), thereby attracting both domestic and international investments.

What is LEED certification?

LEED (Leadership in Energy and Environmental Design) is a standard specifically for environmentally friendly architectures. This standard is developed and certified by the U.S Green Building Council. To achieve LEED certification, buildings must meet certain criteria to ensure environmental friendliness.

The criteria assess green architectures and office buildings for LEED certification

The LEED system evaluates the quality of green buildings based on important criteria, including:

Sustainable building sites
Connectivity to the surrounding area
Efficient use of water resources
Effective use of energy and environmental friendliness
Material and resource conservation during operation
High-quality indoor environment
Innovative design
Education for the community in the construction area.

LEED certification has four levels and is scored on a scale of 100:

40 – 49 points: LEED Certified
50 – 59 points: LEED Silver
60 – 79 points: LEED Gold
80 points and above: LEED Platinum.

The LEED scoring system assesses the quality of green buildings

In addition to EDGE, LEED is one of the green certifications for buildings that are recognized and widely valid around the world. Many businesses choose to locate their offices in LEED-certified green office buildings, not only optimizing operational costs but also enhancing their image and reputation in front of customers, partners, and investors.

Differences between EDGE and LEED standards for green office buildings

Both EDGE and LEED certifications aim to create sustainable and energy-efficient buildings during operation. This shows that these certifications are both beneficial for investors – the owners of the buildings.

On the other hand, while EDGE certification focuses on optimizing the use of resources with reasonable costs, LEED brings even better results. LEED certification not only optimizes benefits for investors but also creates practical benefits for building users, such as office tenants. They will enjoy a good green space for their health, a high-quality working environment, etc. which in turn enhances productivity. Moreover, in many LEED-certified buildings, tenants also benefit from expanding their business network and maximizing community connections.

Sustainable development trend of businesses in the current market situation

Recent office buildings have been constructed following EDGE or LEED standards due to the responsibilities and vision of investors towards the living environment as well as the corporate social responsibility to the community. It can be seen that both standards are suitable for businesses to aim for.

In the current market situation where businesses are paying more attention to CSR activities and ESG standards, green integrated business park projects cannot be ignored. This is considered as an effective and sustainable trend for both investors and businesses seeking green offices.

Gaw NP Capital – A reputable investor in Vietnam with many internationally certified green projects, including OneHub Saigon

Gaw NP Capital, the experienced real estate development company in Vietnam, aims to create an integrated business park with modern facilities and multiple LEED-certified green office buildings in Thu Duc City. This will become a hub for sustainable office services with smart buildings, digital workplaces and efficient infrastructure – a desire of tenants in a post-pandemic world.

One of Gaw NP Capital’s prominent projects in Thu Duc City, Vietnam, is the Integrated Business Park OneHub Saigon. The green office buildings within OneHub Saigon are LEED-certified for their energy-efficient capabilities, operational cost efficiency, and prime location at the gateway of Saigon Hi-Tech Park, facilitating connections with numerous businesses in the surrounding area, especially those in the technology industry. Following the concept of Work – Live – Play – Learn, OneHub Saigon offers a comprehensive environment with internationally standardized buildings, multifunctional recreational and entertainment spaces, a high-quality training center, and 1Hub Data Center with an investment of up to $70 million.

Architectural panorama of LEED Silver-certified office building – Tower 1 at OneHub Saigon

Combined living and working spaces planned within the master plan of Integrated Business Park OneHub Saigon

A mixed-use multifunctional commercial area serving companies within the park and surrounding population of Thu Duc City will soon be implemented in the near future

It is evident that OneHub Saigon will be an ideal project leading the sustainable development trend for businesses in the current post-pandemic market situation.

Conclusion

Both LEED and EDGE certifications have a common goal of providing optimal benefits for the environment by focusing on developing buildings according to green standards. If aiming at having an internationally recognized green office building that also connects with the community, LEED standards would be a worthy consideration. Especially for businesses pursuing ESG green standards, the green office buildings at OneHub Saigon are a suitable choice for current sustainable development trends.

Access rating system guide for important information regarding the LEED certification program and how it is important to office buildings. The article delves into this standard and the OneHub Saigon project – a LEED Silver-certified office building in Ho Chi Minh City.

What is LEED Certification?

LEED stands for “Leadership in Energy and Environmental Design.” It is a certification granted by the U.S. Green Building Council, a non-governmental organization specialized in evaluating environmentally friendly construction projects. LEED certification is a widely recognized standard for green office architecture worldwide. Its purpose is to establish standards and guidelines for constructing environmentally friendly urban areas and real estate projects.

It involves creating green spaces and ensuring compliance with the investor’s budget requirements. It goes beyond focusing on a single building aspect such as energy, water, or health and considers the overall picture to create the best buildings.

What is LEED certification for green office buildings?

Advantages of LEED-certified projects include:

Environmental protection: Buildings are constructed with environmentally friendly solutions minimizing CO2 emissions, conserving energy and natural resources.
Increased property value: LEED-certified buildings are seen as environmentally friendly and energy-efficient, therefore having higher value compared to non-certified buildings.
Operational cost savings: New energy solutions help save and maximize resource usage which can reduce operational costs.
Improved air and water quality: Buildings are designed to enhance ventilation, improve indoor air quality, and effectively manage water quality for domestic use.
Creating differentiation: LEED-certified buildings demonstrate the investor’s commitment to the environment, helping differentiate them from other projects in the market.

LEED Certification Standards

LEED certification is among the widely recognized green architecture ones globally. Many businesses choose LEED-certified buildings as criteria for their offices or workplaces. In Vietnam, several reputable office buildings have achieved this certification, such as Capital Place, Deutsche Haus, OneHub Saigon, and more. LEED certification has its own rating system to evaluate the environmental friendliness of construction projects. Currently, the system has four ranking levels: Certified, Silver, Gold, and Platinum, corresponding to scores ranging from 40 to 110 on the LEED scoring scale. To achieve LEED certification, construction projects must meet the standards defined in categories such as design and construction, water and energy management, materials and resources, indoor environment, and management policies. The scores for each category are aggregated to determine the total score for the project.

LEED-certified projects are divided into four rating levels:

Certified: 40-49 points
Silver: 50-59 points
Gold: 60-79 points
Platinum: 80-110 points

The LEED rating system

Each rating level has different requirements and standards. Platinum is the highest level and requires more stringent criteria to obtain certification.

Objectives of the LEED System

LEED is a comprehensive standard that focuses on not only specific building aspects such as energy, water, or health but also considers the coordination of all important factors to create the best buildings.

The objectives of LEED are to create environmentally, economically, and socially high-standard buildings that enhance the health, comfort, and productivity of users while minimizing negative impacts on the environment. These objectives include:

Reducing the impact of global climate change
Enhancing individual human health
Protecting and restoring water resources
Preserving and enhancing biodiversity and ecosystem services
Promoting sustainable and regenerative material cycles
Improving community quality of life

In all LEED credits, 35% relate to climate change, 20% directly impact human health, 15% address water resources, 10% focus on materials and resources, 10% promote sustainable locations and transportation, 5% support energy efficiency, and 5% aim to improve indoor environmental quality.

Eventually, achieving LEED certification also helps increase the value and reputation of construction projects, especially in a market that increasingly focuses on environmental and sustainable issues.

OneHub Saigon – The first LEED Silver-certified office building in Saigon High-Tech Park

Evaluated as a new highlight of Saigon High-Tech Park and Thu Duc City, OneHub Saigon is a new kind of integrated business park and being the first LEED Silver-certified green office building in Saigon High-Tech Park.

The LEED Silver-certified office building with a new Campus-style office model

OneHub Saigon is an integrated business park project developed on Singapore standards focusing on human-centered design. It is built to meet the demand of office spaces combined with lush greenery areas for companies in the new economy, especially businesses with high growth rates and high value using advanced technology.

OneHub Saigon is positioned as a dynamic and innovative tech-hub leading the trend of decentralization – office movement to the outside of the central business district. It provides a workspace solution that meets all the requirements of financial organizations, e-commerce, fintech, internet industry and other industries.

Tower 1 of OneHub Saigon – a LEED Silver-certified office building in Ho Chi Minh City.

Located on a 12-hectare site, the buildings are designed in a campus-style model, providing a friendly environment for people working here. Renowned landscape architect Colin K. Okashimo is responsible for the landscape design. Additionally, PTW Architects (Australia) in collaboration with the consulting of G-Energy Global (Singapore) designed the office towers, enabling Tower 1 of OneHub Saigon to achieve LEED Silver green building certification.

This project is developed by Gaw NP Capital, a real estate investment fund with extensive experience in developing high-end residential projects, commercial complexes, retail, five-star hotels, and industrial real estate in Vietnam. Gaw NP Capital has also carried out many acquisition, management, and development deals for projects across major cities in Vietnam.

OneHub Saigon Grade A Campus-Style Business Park in Ho Chi Minh City

Conclusion

LEED certification provides specific standards for office buildings regarding environmental protection and human health, inspiring employees and improving their work performance. Additionally, the cost of renting LEED-certified buildings is relatively high as they are often located in central areas. Therefore, businesses can consider ideal alternatives such as OneHub Saigon – a LEED Silver certification office in the East of Ho Chi Minh City with competitive rental prices in the current economic climate.