How To Estimate Office Space

Your company needs to rent a new office but do not know how to Estimate office space? Based on where to calculate the office area? … These are issues that make it difficult for people to find an office.

1. Why should we estimate office space?

• Use office space effectively and for the right purpose: Based on the office plan, businesses can know each area in the office such as the main working space, director room, meeting room, area. entertainment area to function properly.
• Saving costs, avoiding waste: Thanks to the correct use of the area and functions of office space, businesses can limit redundancy or lack of space.
• Effective support for office design: architects can easily calculate, give exact design plans, limit errors, correct, and speed up project completion.
• Create a scientific working space: The office space is built for the right purpose, the scientific design will help employees comfortably use it, the comfortable working spirit will increase working efficiency.

2. Factors affecting office space

In order for the most accurate results of the estimated office space, businesses need to answer the following criteria:

• How many people work permanently and often go out?
• Does the company meet regularly? How many people per meeting at most?
• How many leadership positions are there? Is there a separate room for leadership positions?
• Does the company regularly organize staff training workshops?
• Does the company need office space?
• Workspace arranged by open space or table row?

3. Standard for calculating the office area in m2 / person

The most common way today is to calculate the amount of office space you need to rent based on the number of employees:
Permanent employees are those who work at their desks more than 60% of the day, with maximum space for them of 4.5 m².
Flexible position employees are employees who work at their desks about 40% of the time of the day. Their office space is up to 3.0 m².
Employees do not need a fixed seat: The nature of employees’ jobs does not require them to have a dedicated working seat in the office. They often work in the field, and will only be in the office for a short time to meet with colleagues or to discuss projects. Their maximum office space is 1.5 m² / person.
Another way to calculate the standard office space/person is to calculate the average office space volume per person. This standard applies generally, not divided by rank & location, where each person needs about 10m3 – 11m3 of space. So for every 3m high office, the average area per person would be 3.3m2 to 3.7m2. Offices with higher ceilings will likely need a smaller area.

4. Calculate the room area for the leader

For leaders, office managers need a larger area than employees. This is a space for companies’ leaders to work, welcome customers and partners to the office. Therefore, the recommended area for CEOs or company CEOs is 25 m2. In addition, for managers, this figure ranges from 10 to 18 square meters, which is reasonable. Usually, the leaders of businesses will have their own offices. However, at present, the trend of designing open-space offices is also in favor.

5. Calculate the area of ​​the meeting room

The meeting room is also the space that should be considered when calculating the area. The meeting room should not be too large or too small because it will cause wastefulness, distraction, or too cramped, not enough seats. Therefore, businesses that have a meeting room design should refer to the following set of standards:
The area of ​​a meeting room for 4 people to 7.5 – 8m2 is the most suitable.
For a meeting room for 8 people, the area of ​​15m2 is suitable.
A meeting room with 12 people with 12 chairs should be 20m2 wide.
The size of a meeting room of 20 people should be 40m2.
If the company does not regularly hold meetings, using a fixed amount of space and monthly expenses for meeting rooms will easily lead to waste. Instead, businesses can choose to rent meeting rooms by the hour at their own office building.

For Foreign companies that want to start or expand businesses and look for an office in Vietnam:

CONTACT US

We offer a free consultation to support you to find a suitable Office For lease In Ho Chi Minh:

Phone: (+84) 398 716 459 – Available via Whatsapp/ Viber/ Zalo

Email: contact@lookoffice.vn

Website: https://lookoffice.vn/contact

Facebook: https://www.facebook.com/lookoffice.vn/

Office For Lease at LOOKOFFICE

source https://lookoffice.vn/how-to-estimate-office-space

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Market Office for lease 2020 & Outlook 2021

In 2020, the market office for lease supply continues to increase while demand is limited due to the impact of Covid-19, vacancy rate increases & occupancy rate decreases slightly. Enterprises tend to change the flexible working model and consider moving offices from the center to the neighboring districts. However, Vietnam is considered as one of the least affected countries and prospects for economic and infrastructure development.

Office for lease Supply: Supply in 2020 increases compared to last year.

In Q4 2020, there were no new Grade A buildings in the HCMC office for rent market. However in 2020, the market burns
received 1 additional Grade A and 7 Grade B projects, providing about 139,000 m2 of net leasable area, stock of more than 2.3 million m2, up 7% QoQ and 12% YoY.

Office for lease Demand: Occupancy rate decreased slightly

Tenants struggling during the Covid-19 period mostly chose to reduce their occupancy or even switch to lower-segment buildings. Vacancy rates increased as tenants paid for floors and new projects with low occupancy, tenants moving to the lower segment or townhouses accounted for more than 50% of outbound transactions during the year.

Tenants who are financially rich, unaffected by the pandemic are moving their workplace to Grade A towers, although the number of transactions in Q4 / 2020 is much lower than the previous quarter. The supply of Grade A buildings remains stable. Despite a slight decrease compared to the same period last year, the occupancy rate in Q4 still reached over 90%.

Tendency: Tenants prefer flexible space

Due to the influence of Covid-19, enterprises cut down on the number of employees, business uncertainty caused firms to want to hire on short-term and more flexible contracts.

Some businesses will transform telework and reduce staff density in the workplace to secure season gap and reduce rented space, coworking space, or serviced private office for rent are an alternative that many businesses are considering.

In addition, the trend of moving to neighboring districts with lower rents is also sought by businesses to reduce costs.

Outlook: The market outlook for 2021 is limited, but potentials from economic and infrastructure developments

The market will welcome five new projects by 2021, which will add more than 76,000 square meters of space to the market. These projects are D ‘Saint Raffles, Geleximco, Empire 88, Cobi Tower 2, and The Graces. Other notable projects thereafter include V Plaza Towers which will add 66,000 square meters by 2023 and 35,000 square meters from The Spirit of Saigon Building in 2024.

By 2023, the office for rent market is expected to record an additional 325,000 square meters of floor space, of which supply in 2021 accounts for over 60 percent. The vacancy rate is estimated to continue to increase in 2021 as a large amount of new supply enters amid limited demand. Although the market outlook is limited, Vietnam is among the least affected countries.

According to the forecasts of FocusEconomics, the average annual GDP growth of Vietnam will reach 6.9% / year in the next three years, confidence and investor position will continue to be strengthened.

Many Foreign Trade Agreements including EVFTA, UKVFTA, and RCEP that will begin or continue in 2021 is expected to contribute to increased demand for the office for rent market. In terms of infrastructure, the introduction of Thu Duc City will most likely boost the value of the real estate market in the East of HCMC. Along with that, the Ben Thanh – Suoi Tien Metro line project makes an important contribution to connecting Thu Duc city with the central area, increasing the value of works along Hanoi Highway.

For Foreign companies that want to start or expand businesses and look for an office in Vietnam:

CONTACT US

We offer a free consultation to support you to find a suitable Office For lease In Ho Chi Minh:

Phone: (+84) 398 716 459 – Available via Whatsapp/ Viber/ Zalo

Email: contact@lookoffice.vn

Website: https://lookoffice.vn/contact

Facebook: https://www.facebook.com/lookoffice.vn/

Office For Lease at LOOKOFFICE

source https://lookoffice.vn/market-office-for-lease-2020-outlook-2021

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Remittance abroad of profits from investment in Vietnam

Time to transfer profits abroad

• Remittance of profits abroad annually

Foreign investors are entitled to annually transfer the profits shared or earned from their direct investment activities in Vietnam overseas at the end of the fiscal year, after the enterprises in which the foreign investors participate. Investment has fulfilled financial obligations towards the Vietnamese State in accordance with the law, has submitted audited financial statements and fiscal year corporate income tax finalization declarations to management agencies. direct tax.

• Remittance of profits abroad upon the end of direct investment activities in Vietnam

Foreign investors are entitled to remit profits abroad upon the termination of their direct investment activities in Vietnam after the enterprise in which the foreign investor participates in investment has fulfilled their financial obligations toward the Vietnamese State. In accordance with the law, have submitted audited financial statements and corporate income tax finalization declarations to the direct tax authority and fulfilled all obligations under the Law on Administration. tax administration.

• Responsibility of the enterprise where the foreign investor participates in capital investment

Enterprises, where foreign investors make capital investments, shall fulfill all financial obligations toward the Vietnamese State in accordance with the law regarding incomes forming profits that investors. Foreign investors move abroad.

Determine the number of profits to be remitted abroad

– Annual profit remitted abroad is the profit shared or earned by a foreign investor in a fiscal year from direct investment activities based on audited financial statements and finalization declaration. corporate income tax of the enterprise in which the foreign investor invests plus (+) other profits such as the number of profits not transferred from previous years; minus (-) the foreign investor has used or committed to re-invest in Vietnam, the profits the foreign investor has used to cover the investor’s expenses foreign countries for production and business activities or for personal needs of foreign investors in Vietnam.

– Profits remitted abroad at the end of investment activities in Vietnam are the entire profits earned by foreign investors during their direct investment in Vietnam, minus (-) profits have been used for reinvestment, profits remitted abroad during the operation of foreign investors in Vietnam, and amounts used for other expenditures of foreign investors at Vietnam.

– Foreign investors are not allowed to remit abroad the profits distributed or earned from direct investment activities in Vietnam in the year in which the profit is generated in the case in the financial statements of the enterprise in which the investor is Foreign investment in the year in which a profit is generated still has accumulated losses after the loss has been carried forward in accordance with the provisions of the law on corporate income tax.

Notice of profit remittance abroad

Foreign investors directly or authorize enterprises in which foreign investors participate in investment to make notices on the remittance of profits abroad and send them to the tax agency directly managing the enterprise in which the investor is At least 07 working days before making the remittance of profits overseas.

Source: GOV

To find more about guide for business and investment in Vietnam, you can click here: https://lookoffice.vn/economy-business-investment/guidge/

For Foreign companies want to start or expand businesses and look for an office in Vietnam:

CONTACT US

We offer a free consultation to support you to find a suitable Office For lease In Ho Chi Minh:

Phone: (+84) 398 716 459 – Available via Whatsapp/ Viber/ Zalo

Email: contact@lookoffice.vn

Website: https://lookoffice.vn/contact

Facebook: https://www.facebook.com/lookoffice.vn/

Office For Lease at LOOKOFFICE

source https://lookoffice.vn/remittance-abroad-of-profits-from-investment-in-vietnam

Read Vietnam Economy Weekly News