1. What is an I-REC?

An I-REC (International Renewable Energy Certificate) is an internationally recognized renewable energy certificate that certifies one unit of electricity (1 MWh) generated from renewable sources such as solar, wind, or hydropower. I-RECs enable companies and organizations to demonstrate their commitment to clean energy consumption, reduce Scope 2 emissions in line with the Greenhouse Gas (GHG) Protocol, and enhance credibility by ensuring transparency of energy sources in ESG reporting. 

The I-REC system is designed to create a transparent and standardized mechanism for tracking, certifying, and trading renewable electricity in countries that do not yet have a national certification program. Each I-REC not only records the volume of renewable electricity generated but also includes detailed information such as:

• Generation technology type (solar, wind, hydro, etc.)
• Location and time of production
• Project capacity and associated emission factors

I-REC holders have the legal right to claim the use of renewable energy, thereby reducing Scope 2 emissions in ESG reporting and meeting international standards such as RE100, CDP, the GHG Protocol, and ISO 14064.

Today, I-RECs have been implemented in more than 50 countries and have become one of the most widely adopted instruments for enabling companies worldwide to pursue Net Zero strategies and strengthen their brand credibility.

2. Types of I-REC Renewable Energy Certificates

Within the global EAC (Energy Attribute Certificates) system, I-RECs are renewable energy certificates applied in countries that do not have their own certification schemes. In essence, I-RECs are not divided into multiple variants, but they can be categorized based on the renewable generation technology, including:

• Solar I-REC: certifies the electricity generated from solar power projects.
• Wind I-REC: applies to both onshore and offshore wind projects.
• Hydropower I-REC: covers electricity produced from large-scale as well as small and medium-sized hydropower projects.
• Biomass/Biogas I-REC: certifies electricity generated from organic waste or biogas.
• Geothermal I-REC: issued for projects that generate electricity from geothermal resources.

In addition to I-RECs, there are other certification mechanisms on the international market that also fall under the EAC (Energy Attribute Certificates) category, specifically:

• GO (Guarantee of Origin): certificates used within the European Union.
• REC (Renewable Energy Certificate): applied in the United States and Canada.
• TIGR (Tradable Instrument for Global Renewables): issued by APX, enabling the creation, verification, and transparent trading of renewable energy certificates on a digital platform.

3. Benefits of Renewable Energy Certificates (RECs)

Owning renewable energy certificates (RECs, including I-RECs, GOs, TIGRs, etc.) delivers significant value to businesses, communities, and the energy market as a whole.

Key benefits of RECs for businesses: 

• Proof of renewable energy consumption: RECs provide transparent evidence that the electricity consumed originates from clean energy sources.
• Reduction of greenhouse gas emissions (Scope 2): RECs help companies meet Net Zero commitments and comply with international environmental standards such as the GHG Protocol, RE100, and CDP.
• Enhanced brand reputation: RECs create a competitive edge with partners, investors, and environmentally conscious consumers.
• Access to international markets: Many multinational corporations require their suppliers to hold renewable energy certification.
• Improved access to green finance: Companies with I-RECs strengthen their ESG reports, making them more attractive to green investors and funding opportunities.

Benefits of Renewable Energy Certificates (RECs) for energy producers:

• Increased revenue: In addition to income from selling electricity, renewable energy projects generate extra income through REC trading.
• Shorter payback period: Additional revenue streams create stronger incentives for new investments in clean energy.

Benefits of Renewable Energy Certificates (RECs) for society and the environment:

• Encouraging the green energy transition: RECs promote higher adoption of renewable energy within national power systems.
• Contributing to the Sustainable Development Goals (SDGs): particularly SDG 7 (affordable and clean energy) and SDG 13 (climate action).

4. How are Renewable Energy Certificates (RECs) created?

Renewable Energy Certificates (RECs) are generated through a rigorous process designed to verify and separate renewable electricity production from other energy attributes (such as commercial electricity or carbon credits).

The creation process of RECs generally involves the following steps:

• Step 1: Renewable electricity generation
  • Solar, wind, hydropower, biomass, and geothermal plants generate electricity and feed it into the grid.
  • For every 1 MWh of renewable electricity produced, the plant is eligible to issue 1 REC.
• Step 2: Data recording and verification 
  • Electricity generation is measured through reliable metering systems.
  • The data is verified by an independent third party to ensure accuracy and transparency.
• Step 3: Registration and issuance 
  • Generation data, including technology type and production location, is submitted to a recognized registry (e.g., I-REC Standard Foundation, Evident Services).
  • The registry issues an electronic certificate, each with a unique identifier.
• Step 4: Trading and transfer 
  • RECs can be bought and sold on the voluntary market or through official exchanges.
  • Electricity consumers purchase RECs to demonstrate renewable energy use in ESG and sustainability reporting.
• Step 5: Cancellation (Redemption) 
  • Once used for reporting, RECs are permanently cancelled in the registry to ensure they cannot be reused.
  • This prevents “double counting” of environmental benefits and maintains system integrity.

Through this mechanism, RECs provide transparency and allow companies to credibly demonstrate their clean energy commitments without directly purchasing electricity from renewable plants.

5. Registering and Purchasing I-RECs in Vietnam

In Vietnam, the demand for proving renewable energy consumption is increasing, especially following the country’s Net Zero commitments. The International Renewable Energy Certificate (I-REC) has become a transparent tool for companies to meet international standards such as ESG, RE100, and CDP, while enhancing their brand credibility in global markets.

To register and purchase I-RECs, companies can follow these steps:

• Register renewable energy projects: Solar, wind, hydropower, and biomass plants must register with the I-REC Standard Foundation or through authorized partners.
• Verification and issuance: Renewable electricity output is measured and verified by an independent third party, then converted into electronic I-RECs (1 I-REC = 1 MWh).
• Trading and procurement: Companies can purchase I-RECs directly on international exchanges or through local distributors in Vietnam. Alena Energy, the official partner of I-REC Standard, is a pioneer in supplying I-RECs to major corporations such as Samsung, LG, Foxconn, IKEA, and Microsoft.
• Certificate redemption (cancellation): Once used for ESG reporting, I-RECs are permanently cancelled to ensure transparency and prevent double counting of environmental benefits.

Benefits of owning I-RECs in Vietnam: 

• Enable companies to demonstrate renewable energy consumption and meet requirements from global partners.
• Facilitate access to demanding export markets, particularly in Europe.
• Enhance competitiveness and attract green investment capital.
• Support Vietnam’s national goals of reducing greenhouse gas emissions and promoting sustainable development.

With a stable distribution system, diverse supply sources, and a team of experienced experts, Alena Energy is regarded as the most trusted partner for companies seeking to register and purchase I-RECs in Vietnam.

6. REC Markets Worldwide and in Vietnam

6.1 Global REC Market

The global Renewable Energy Certificate (REC) market is entering a phase of strong growth, driven by the rising demand for clean energy and supportive government policies. According to forecasts by the International Energy Agency (IEA), the REC market could reach a value of USD 300 billion by 2030.

• Leading regions: North America and Europe currently hold the largest market shares. The United States and Canada operate their own REC systems, while the European Union uses the Guarantee of Origin (GO) mechanism.
• Energy type segmentation: Solar RECs account for the largest share, followed by wind and hydropower.
• Main applications: Compliance with regulatory requirements, carbon offsetting (Scope 2 emissions), and participation in energy trading.
• Key trends: Increased investment in renewable energy, stronger government incentives, rising demand for carbon offsets, and market expansion in emerging economies.

In particular, the International Renewable Energy Certificate (I-REC) is becoming the recognized standard in many countries. As of August 2023, more than 512.33 million I-RECs had been issued, representing 195.2 GW of renewable capacity, with over 4,200 projects across 48 countries being certified.

6.2 REC Market in Vietnam

In Vietnam, the REC/I-REC market is still relatively new but has been growing rapidly in line with the country’s green energy transition. According to estimates by the Ministry of Industry and Trade (MOIT), the REC market in Vietnam could reach a value of USD 1 billion by 2030.

• Market composition: Solar RECs account for the largest share, followed by hydropower and wind power.
• Main applications: ESG reporting, regulatory compliance, and participation in international energy trading.
• Project scale: As of October 2023, Vietnam had 492 projects certified with I-RECs, with a total capacity of over 8,000 MW, including:
  • 353 solar power projects
  • 124 hydropower projects
  • 15 wind power projects
• TIGR in Vietnam: There are currently 196 projects certified under the TIGR system, with a total capacity of over 864 MW, primarily from solar power.
• Issuing body: I-RECs in Vietnam are administered by the I-REC Standard Foundation through an authorized independent local entity.

Future trends indicate that the demand for I-RECs in Vietnam will continue to grow strongly due to:

• The rapid expansion of solar and wind power.
• The Government’s Net Zero 2050 commitment.
• Increasing pressure from export markets, particularly in Europe and the United States, requiring proof of renewable energy consumption across supply chains.

Vietnam is emerging as a promising I-REC market in Asia, not only fostering investment in renewable energy but also creating opportunities for green financing for businesses.

7. Distinguishing Between I-RECs and Carbon Credits

In sustainability strategies, many companies often confuse International Renewable Energy Certificates (I-RECs) with Carbon Credits. In reality, these are two distinct instruments that differ in nature, creation, and purpose of use.

• I-REC (International Renewable Energy Certificate): certifies that renewable electricity has been generated and fed into the grid.
• Carbon Credit: certifies that a certain amount of CO₂ or other greenhouse gases has been reduced or removed from the atmosphere.

In summary:

• I-RECs enable companies to demonstrate renewable electricity consumption, making them suitable for ESG and Net Zero (Scope 2) targets.
• Carbon Credits allow companies to offset direct emissions, aligning with regulatory compliance obligations or comprehensive emission reduction commitments.

Overall, I-RECs are not only a transparent tool for verifying clean electricity use but also a strategic lever for enhancing brand credibility, meeting international ESG standards, and supporting Net Zero strategies. As both the global and Vietnamese REC markets continue to grow rapidly, understanding the nature, benefits, and registration process of I-RECs will help businesses take a proactive role in their sustainability journey.

To seize opportunities and optimize costs when participating in the I-REC market, companies should partner with authorized and reputable providers to ensure transparency, safety, and efficiency in transactions. This is a practical step for Vietnamese enterprises to strengthen their position, expand into international markets, and contribute actively to the global green energy transition.

8. FAQ – Frequently Asked Questions about I-RECs

8.1 How long is an I-REC valid?

Each I-REC is issued to represent the generation of 1 MWh of renewable electricity within a specific time period. Once it is redeemed/cancelled, the certificate becomes permanently invalid and can no longer be traded.

8.2 Where can companies register for I-RECs?

Businesses can register directly with the I-REC Standard Foundation or through authorized partners in Vietnam such as Alena Energy or VNEEC. The process requires technical documentation, verification of generation data, and third-party validation to ensure accuracy and credibility.

8.3 Do small and medium-sized enterprises (SMEs) need I-RECs?

Although I-RECs are not mandatory, SMEs are strongly encouraged to obtain them. Holding I-RECs helps enhance corporate branding, demonstrate commitment to renewable energy, and meet the sustainability requirements of larger supply chain partners that are increasingly focused on ESG criteria.

1. Overview of Office Rental Prices in HCMC and Hanoi in 2026

The office leasing market in HCMC and Hanoi in 2026 remains stable, but the price gap between the two major economic centers is still significant. HCMC leads with an average rental rate of VND 833,000 – 843,000/sqm/month (about 4% year-on-year growth), which is 30–40% higher than Hanoi (about VND 564,000/sqm/month). In the Grade A segment, the difference is more pronounced, with HCMC averaging USD 54.05/sqm/month, while Hanoi records about USD 31.71/sqm/month.

The difference in rental prices stems from the concentration of FDI companies and multinational corporations in HCMC, where businesses place high priority on central locations, professional property management services, and brand image. Meanwhile, Hanoi maintains more stable rental levels thanks to its diverse office supply, which is suitable for Vietnamese companies seeking larger floor areas and optimized budgets.

In HCMC, the Grade A vacancy rate is only about 12.3%, particularly in the CBD, which remains highly attractive due to office buildings meeting ESG, LEED, and WELL standards. These factors lead to higher service charges but also better operational efficiency. In Hanoi, rental rates are expected to increase slightly by 1–3% per year as new projects such as My Dinh Pearl, Shilla Tower, Tien Bo Plaza, Rox Tower Goldmark City, Oriental Square, and others are completed, contributing to improvements in the overall quality of the market.

In terms of operating costs, the difference is also quite clear. HCMC ranges from 10 – 15 USD/sqm/month, which is 20 – 30% higher than Hanoi (8 – 12 USD/sqm/month). However, Hanoi is gradually narrowing this gap by adopting green building operations, helping reduce energy consumption by 10 – 20% and improving building management efficiency.

Overall, the office leasing markets in HCMC and Hanoi are moving toward standardized operational quality, encouraging positive competition among developers in developing green, energy-efficient, and environmentally friendly office buildings, in line with the sustainable development trend of businesses during 2025–2027.

2. Comparison of Office Rental Prices by Segment

The office leasing market in HCMC and Hanoi in 2026 is clearly divided into three main segments: Grade A, Grade B, and Grade C, reflecting significant differences in location, service quality, and building management standards.

2.1 Comparison of Grade A Office Rental Prices

Grade A office rental prices in HCMC range from 45 – 68 USD/sqm/month, which is 25 – 40% higher than in Hanoi (31 – 42 USD/sqm/month). This difference mainly stems from HCMC attracting more FDI, technology, and financial companies, while Hanoi is more concentrated in consulting, education, and IT sectors.

2.2 Comparison of Grade B Office Rental Prices

Grade B offices have a large supply in both HCMC and Hanoi. Rental prices in HCMC range from 25 – 40 USD/sqm/month, while Hanoi ranges from 18 – 30 USD/sqm/month. This segment is widely chosen by Vietnamese companies and SMEs due to its reasonable cost and convenient locations.

2.3 Comparison of Grade C Office Rental Prices

The Grade C office segment continues to play an important role in meeting flexible leasing demand, especially for startups and small to medium-sized enterprises. Rental prices for Grade C offices in HCMC range from 10 – 24 USD/sqm/month, while Grade C office rents in Hanoi are about 15% lower, ranging from 8 – 20 USD/sqm/month.

Despite the lower prices, many Grade C buildings in both cities are being upgraded with improved infrastructure and additional amenities, moving toward more sustainable operational standards.

3. Comparison of Office Rental Prices by Area

3.1 Office Rental Prices in HCMC by Area

The office leasing market in HCMC is witnessing a clear segmentation between the traditional CBD (District 1) and emerging areas such as Thu Thiem, District 3, and District 7.

• Office rental prices in the CBD (District 1) are the highest in the market, ranging from 10 – 68 USD/sqm/month, with an occupancy rate above 88%. Many Grade A buildings attract FDI companies due to their central location and international operating standards.
• Office rental prices in Thu Thiem (Thu Duc City) are emerging as an extended commercial hub, with rents ranging from 10 – 48 USD/sqm/month, about 30% lower than the CBD. The area stands out for its integrated planning, modern workspace environment, and new Grade A office supply.
• Office rental prices in District 3 range from 10 – 47 USD/sqm/month, offering a balance between cost and central location, suitable for Vietnamese companies and professional service firms.
• Office rental prices in District 7 range from 10 – 35 USD/sqm/month, with a high occupancy rate thanks to well-developed infrastructure and a green working environment, suitable for technology, logistics, and manufacturing companies requiring larger floor areas.

3.2 Office Rental Prices in Hanoi by Area

In Hanoi, office rental prices remain relatively stable, with a clear distribution between the central districts (Hoan Kiem, Ba Dinh) and expanding areas such as Cau Giay District, Nam Tu Liem District, and Bac Tu Liem District.

• Hoan Kiem – Ba Dinh: The administrative and financial center of Hanoi, concentrating many Grade A office buildings. Rental prices range from 30 – 45 USD/sqm/month, with an occupancy rate of 85 – 87%, attracting FDI companies and international organizations.
• Cau Giay: A dynamic office hub in western Hanoi with a large supply of office buildings. Rental prices range from 10 – 25 USD/sqm/month, suitable for technology companies, education firms, and startups.
• Nam Tu Liem: A new commercial center with many large-scale Grade A buildings, with rents ranging from 10 – 30 USD/sqm/month. Leasing demand remains stable thanks to well-developed infrastructure.
• Bac Tu Liem: An emerging market with rental prices ranging from 10 – 18 USD/sqm/month, suitable for companies requiring larger office spaces and cost optimization, with strong growth potential in the coming years.

4. Factors Affecting Rental Prices and Operating Costs

Office rental prices depend not only on location or building grade but are also influenced by various factors related to market conditions, operating costs, and lease terms. Companies need to understand these factors to accurately evaluate workspace value, optimize costs, and negotiate leasing terms more effectively.

Nine key factors directly affecting office rental prices include:

• Building location: A core factor determining rental rates, reflecting business connectivity, area development level, and corporate brand image.
• Architecture & building scale: Buildings with modern design, premium lobbies, large floor plates, and integrated technical infrastructure are typically priced higher.
• Service quality & property management: Buildings operated by professional management companies usually have higher rents but provide stable quality and international-standard services.
• Leased area: Companies leasing larger spaces often receive better rental rates, while smaller spaces suit SMEs and startups seeking cost flexibility.
• Service charges & additional costs: Including management fees, electricity, water, overtime charges, parking, and VAT, typically accounting for 15–25% of the total leasing cost, and should be considered in budget planning.
• Market fluctuations: Supply and demand, occupancy rates, and the position of the area (CBD, emerging districts, suburban zones) significantly influence rental levels.
• Timing of lease: The end-of-year period (Q4) often offers incentives such as 1–2 months rent-free or reduced service charges, making it a favorable time for negotiation.
• Lease term: Long-term contracts (3–5 years) help stabilize costs and usually provide better rental rates compared to short-term agreements.
• Lease conditions: Terms such as fit-out incentives, renewal options, and annual rent escalation should be carefully reviewed to control the total actual cost.

5. Outlook for Office Rental Prices in HCMC and Hanoi (2025–2027)

During 2025–2027, the office leasing markets in HCMC and Hanoi are expected to remain stable with clearer segmentation. Rental prices in HCMC are projected to increase by 3–5% annually due to demand from FDI, technology, and financial companies, while Hanoi is expected to see a modest increase of 1–3% per year, with new supply mainly concentrated in western districts such as Cau Giay and Nam Tu Liem.

Green office buildings following LEED, WELL, and ESG standards will become a key trend. These buildings may maintain rental rates 5–10% higher while reducing energy consumption by 15–25%. By 2027, about 73% of Grade A supply in HCMC and 65% in Hanoi are expected to meet green building standards.

Overall, the market is entering a phase of stronger competition and greater professionalization. Companies should consider securing long-term leases, prioritizing green-certified buildings, and choosing locations near metro lines to optimize operating costs.

6. Maison Office – Trusted Office Leasing Consultant in HCMC & Hanoi

Maison Office is a professional office leasing consultancy with over 10 years of experience in the HCMC and Hanoi markets. The company provides end-to-end advisory services including location research, rental comparison, negotiation support, and contract completion to help businesses secure suitable workspaces while optimizing time and costs.

With an exclusive database of more than 2,000 office buildings regularly updated with rental prices, vacancy rates, and leasing incentives, Maison Office delivers transparent market insights. Its experienced consultants offer detailed comparisons across key business districts, enabling companies to make informed leasing decisions based on real market data.

1. Office Lease Deposit Terms in Vietnam 

Office lease deposit Vietnam serves as a financial security measure for both landlords and tenants. To ensure a smooth leasing process, businesses need to understand the purpose of the deposit, the standard deposit amount, refund conditions, and non-refundable cases. These factors have a direct impact on financial planning and risk management throughout the lease term.

1.1 Purpose of the Deposit

The office lease deposit Vietnam plays an important role as a financial security measure, helping to balance the interests of both the landlord and the tenant. It is an upfront payment made by the tenant to the landlord to ensure fulfillment of financial obligations and responsibilities as outlined in the lease agreement.

The main purposes of the deposit include: 

– Payment security: One of the most common risks is that tenants may fail to pay rent on time or in full during the lease term. This can significantly impact the landlord, especially when they must cover operational and maintenance costs. In such cases, the deposit serves as a “reserve fund” that the landlord can use if the tenant breaches their payment obligations.

– Damage compensation: The deposit also serves as compensation in case the tenant causes damage to the property or office facilities. If any damage occurs due to the tenant’s fault during the lease term, the landlord has the right to deduct the repair costs from the deposit without needing to claim additional charges. This helps minimize potential disputes later on.

– Contract performance commitment: The deposit also serves as a form of commitment from the tenant to fulfill the lease agreement. Requiring a relatively large upfront payment encourages tenants to carefully consider their decision before signing and shows their seriousness in maintaining the lease. If the tenant unilaterally terminates the contract without a legitimate reason, the deposit may be partially or fully forfeited as a penalty.

– Allowing tenants to secure their space: In today’s competitive office market, finding a suitable space with the desired location, size, and price is not always easy. The deposit helps tenants hold the space while waiting to sign the official contract or complete legal procedures, as well as office design and renovation according to their specific requirements.

By clearly understanding the purpose of the deposit, businesses can better prepare for contract negotiations and manage risks effectively.

1.2 Standard Deposit Amount 

In Vietnam’s office leasing market, the deposit amount is a key factor that reflects the level of financial risk faced by landlords as well as market conditions. The standard deposit typically ranges from 1 to 3 months’ rent, depending on various factors such as location, office type, lease term, and mutual agreements between the parties.

In major cities like Ho Chi Minh City and Hanoi, where many Grade A and B office buildings are concentrated, landlords often require higher deposit amounts – typically equivalent to 3 months’ rent. This is especially common for offices located in central areas such as District 1, District 3 (HCMC) or Hoan Kiem District, Ba Dinh District (Hanoi). This high deposit requirement reflects the premium value of these properties and strong demand from multinational corporations or large enterprises that are willing to pay a premium for strategic locations.

Conversely, in suburban areas or for Grade C offices and spaces in smaller buildings, the required deposit is typically lower – typically equivalent to 1 month’s rent. This lower deposit is more suitable for small and medium-sized enterprises (SMEs) or startups with limited budgets.

–> For example: In a lease contract for a Grade C office with a monthly rent of 10 million VND, the typical deposit ranges from 10 to 20 million VND (equivalent to 1 – 2 months’ rent).

1.3 Refund Terms

In office lease agreements in Vietnam, the deposit refund terms are a crucial element to ensure that the rights of both tenants and landlords are enforced transparently and fairly. These terms not only specify the timeline and refund process but also outline the responsibilities the tenant must fulfill to receive the full deposit back at the end of the lease.

According to common practice in Vietnam, the deposit is usually refunded within 15 to 30 days after the lease ends, provided that the tenant meets all conditions stated in the contract. The exact time frame depends on the agreement between both parties and is typically detailed in the lease terms. To receive the deposit refund, tenants must meet the following key conditions:

– Full payment of all fees: The tenant must have settled all rent payments, utility bills (electricity, water, internet), and any other charges such as building management or service fees during the lease period.

– Preservation of property condition: The office must be returned in good condition, with no significant damage beyond normal wear and tear. Damages such as broken glass doors, malfunctioning air-conditioning systems, or unauthorized structural changes may result in deductions from the deposit.

– Compliance with contract terms: The tenant must adhere to the lease terms, including proper notice of termination – typically 30 to 60 days before the lease ends.

By clearly understanding this process and preparing carefully, businesses can ensure they receive the full deposit refund while maintaining a positive relationship with the landlord in an increasingly competitive office leasing market.

1.4 Non-Refundable Cases

The security deposit serves as a financial safeguard for the landlord in office lease agreements and is typically refunded to the tenant upon the conclusion of the lease. However, in certain specific cases, all or part of the deposit may not be refunded. Common situations include:

– Early termination: If the tenant ends the lease before its agreed term without following the notice period requirements or without a valid reason stated in the contract, the landlord may retain all or part of the deposit. This is intended to compensate for the lost rental income during the time needed to find a new tenant.

– Property damage: If the tenant causes significant damage to the office beyond normal wear and tear, the landlord may deduct repair costs from the deposit. Such damages may include broken glass doors, structural damage to walls, ceilings, or floors, and damage to equipment or fixtures.

– Unpaid debts: During the lease period, if the tenant fails to fulfill financial obligations such as monthly rent, utility bills or other incurred charges, the landlord has the right to retain part or all of the deposit to offset these outstanding debts.

2. Rental Payment Terms and Common Practices

Payment terms for office rental in Vietnam are one of the key elements that directly impact a company’s budget and financial planning. Therefore, businesses need to clearly understand common practices regarding payment schedules, payment methods, and regulations for handling late payments to ensure contract compliance and avoid unnecessary disputes.

2.1 Payment Frequency and Methods

Payment frequency and methods refer to how often the rent is paid during the contract term and the manner in which the payment is made. The payment frequency for office rentals in Vietnam is typically negotiated based on the tenant’s needs and the landlord’s policies. Monthly payments are the most common, especially for short-term leases (under 2 years) or small businesses. For long-term contracts or premium office spaces, landlords may require quarterly or even annual payments to reduce financial risk and administrative costs.

In terms of payment methods, bank transfers are the most common choice due to their transparency and convenience, especially in Grade A and B office buildings managed by professional firms. Some landlords may still accept cash, but this is becoming increasingly rare due to VAT invoice requirements and financial transparency. Additionally, some contracts allow payment via letter of credit or bank guarantee for large enterprises with long-term leases, ensuring timely and secure payments.

2.2 Due Dates and Late Penalties

Office rent due dates are typically clearly defined in the lease agreement, based on the agreed payment frequency (monthly, quarterly, or annually). The most common practice is requiring payment between the 1st and 5th of the month for monthly payment terms. For quarterly payments, the deadline usually falls within the first 5 to 10 days of the quarter. Some landlords may offer more flexibility, allowing late payments within 7 to 10 days after the due date, but this must be pre-agreed and clearly stated in the contract.

Late payment penalties are a common practice in office lease contracts in Vietnam, designed to ensure tenants fulfill their payment obligations on time. These penalties are usually calculated as a daily interest rate on the overdue amount – commonly ranging from 0.05% to 0.2% per day.

–> For example: If a company rents an office in Hanoi for 15 million VND/month and is 10 days late in payment, with the contract stipulating a penalty of 0.2% per day, the late fee would be: 15,000,000 * 0.2% * 10 = 300,000 VND.

In some cases, repeated late payments may lead to further consequences, such as temporarily suspending the tenant’s right to use the office, contract termination or forfeiture of the security deposit.

2.3 Additional Charges

In addition to the base rent, tenants are often required to pay additional charges to maintain the building’s service quality. These fees not only impact the total rental cost but also reflect the level of convenience and professionalism of the office space. Clearly understanding the types of additional charges, how they are calculated, and how to manage them is essential for businesses to plan their finances effectively.

Common types of additional charges include: 

– Building Management Fee: This is the most common charge, covering expenses for operations, maintenance, cleaning, security, and shared utilities such as elevators, central air conditioning, and common areas.

– Utility Bills: Electricity, water, and internet charges are typically calculated separately based on meter readings or actual usage. Air conditioning costs are often the largest utility expense.

– Parking Fees: In major cities like Ho Chi Minh City and Hanoi, parking is a significant cost due to limited space. Fees usually range from 1 – 3 million VND/month per car and 100,000 – 300,000 VND/month per motorbike.

– Overtime Usage Fees: If tenants use the office outside of normal business hours (typically after 6:00 PM or on weekends), landlords may charge overtime fees to cover electricity, air conditioning, and security services.

2.4 Variations by Building Grade (A, B, C)

Payment terms for office rental in Vietnam vary significantly depending on the building Grade (A, B, or C), reflecting the differences in quality, location, and services offered by each type.

– Grade A buildings: Operated by professional management firms and primarily serving large enterprises or multinational companies, these buildings often impose stricter payment requirements. Tenants are typically required to pay quarterly or annually via bank transfer, and in some cases, provide a bank guarantee letter.

– Grade B buildings: With a moderate level of professionalism and a more diverse tenant base, payment terms are generally more flexible. Tenants may pay monthly or quarterly, mainly via bank transfer, and there is usually more room for negotiation compared to Grade A buildings.

– Grade C buildings or small offices: Typically owned and operated by individual landlords, these properties often come with simpler terms. Monthly payments are common, and some landlords may still accept cash. However, businesses should exercise caution, as legal and financial risks may be higher (e.g., lack of VAT invoices, poorly defined contract terms).

>> See more: What is Grade A Office Space? Building Classification Types

3. Key Considerations When Negotiating Office Lease Contracts

Negotiating an office lease contract is a critical step to ensure the business secures optimal terms in cost, conditions, and flexibility. This section analyzes key considerations when negotiating office lease contracts, offering practical guidance for businesses to protect their interests in a competitive market.

3.1 Clarify Payment and Deposit Terms in Writing

To avoid misunderstandings and disputes between both parties, all deposit and payment terms office leasing in Vietnam must be clearly stated in the contract. This includes the payment frequency (monthly, quarterly), payment methods (bank transfer, cash), payment schedules, and late payment penalties. At the same time, conditions related to the security deposit and its refund must also be clearly specified, providing a solid legal basis to ensure a transparent leasing process.

3.2 Request Separate Invoices for Rent and Service Charges

To facilitate accurate financial management and tax compliance, businesses should request landlords to issue separate invoices for office rent and associated management and utility fees. Separating invoices helps businesses better control expenses and allocate budgets clearly, while ensuring transparency during VAT declaration. Additionally, separate invoices make it easier to reconcile and resolve any payment disputes, avoiding confusion between different cost items in the lease contract.

>> See more: How to Account for Office Rent Expenses [New Regulations] 

3.3 Negotiate Reduced Deposit for Long-Term Leases

The security deposit often creates a significant initial financial burden for businesses, especially small and medium enterprises or startups with limited capital. This amount usually ranges from 1 to 3 months’ rent, and can be even higher for Grade A offices or those in prime locations. However, with long-term leases, tenants have the opportunity to negotiate a reduction in the number of deposit months or seek more flexible refund conditions. This not only helps improve cash flow but also reduces initial financial pressure, creating more favorable conditions for businesses to focus on their core operations.

Additionally, it contributes to building a trustworthy and long-term relationship between tenants and landlords, supporting stability throughout the lease period. Therefore, careful preparation and proactive negotiation of the deposit are crucial factors for businesses to manage their finances effectively when renting office space.

3.4 Legal Review and Risk Mitigation

Businesses should engage an experienced lawyer or legal expert to thoroughly review the office lease agreement before signing. This is especially important when dealing with complex deposit and payment terms in office leasing in Vietnam, as unclear or unfavorable clauses can lead to legal disputes.

A legal professional can help identify potential risks and recommend appropriate revisions to ensure the contract balances the interests of both parties and complies with current legal regulations. Doing so not only minimizes the risk of legal conflicts but also safeguards the business’s long-term rights and interests of the business throughout the lease term.

In conclusion, deposit and payment terms for office leasing in Vietnam play a vital role in shaping the financial and operational stability of a business. A Clear understanding and careful negotiation of these terms are essential to avoid unexpected costs and legal disputes. Businesses that invest time in reviewing contracts and seeking expert advice are better positioned to secure flexible, fair, and sustainable leasing arrangements in Vietnam’s office rental market.

>> See more: Understanding what a lease entails is crucial for defining payment responsibilities and commitment levels. 

1. Why Your Business Type Influences Office Selection

Choosing an office is not simply about location or cost – it must also fit the specific nature of the business operations. So understanding how to choose office based on business type is very essential.

Each type of business has its own unique characteristics, from work organization, operational models to infrastructure requirements. Therefore, having a clear understanding of your industry is the first step to choosing the optimal workspace. Below are the factors explaining why the type of business plays a decisive role in choosing an office:

– Business objectives: The development goals of a business are one of the key factors determining its office space needs. Startups aiming to create a flexible environment that fosters creativity may prioritize open and easily adjustable spaces. In contrast, large enterprises focused on stability and security require offices designed in a traditional layout with private workrooms.

– Industry characteristics: Each industry has its own operational processes, leading to different needs for office space and design. Tasks that require high concentration and minimal interruptions demand office designs with private rooms or quiet areas. Meanwhile, work that involves frequent teamwork and idea exchange needs flexible spaces that can be easily reconfigured or shared common areas.

– Customer interaction requirements: Businesses with frequent client meetings – such as consulting firms or real estate agencies – should prioritize offices in central locations, with dedicated reception areas and professional meeting rooms. Conversely, internal operations or manufacturing companies can locate further from the city center to save costs while maintaining smooth operations.

– Operating costs: Finally, the operating costs vary for each business. Startup types usually prioritize cost-effective offices with flexible short-term leases to reduce expenses. Large, stable enterprises can invest in high-end, long-term offices to build their brand and enhance credibility. Meanwhile, manufacturing companies often choose simple offices near industrial zones to cut transportation costs and optimize operations.

Choosing an office that fits the type of business not only improves operational efficiency but also helps build a unique culture and brand. This is a fundamental yet crucial step for sustainable business development.

2. Office Options Overview: What Are Your Choices?

When starting to look for a workspace, businesses often face various options regarding office types. Depending on the business type, companies can consider different office formats – from traditional offices, coworking spaces to serviced offices. This section provides an overview of current office options to help businesses make the most suitable decisions based on their specific characteristics and strategies:

2.1 Traditional Office – private, long-term space

A traditional office is an independent workspace that a business rents or purchases for long-term use, typically under contracts lasting 2 to 5 years or longer. This type of office is a dedicated space designed and operated entirely according to the company’s needs, from interior layout and workspace arrangement to technological systems. Traditional offices are usually suitable for large companies, corporations, or industries that require stability, high security, and a workspace that strongly reflects their brand identity.

Advantages of Traditional Office: 

– Full control over office design, layout, and branding, allowing a strong company identity.

– Stable, dedicated space that supports consistent operations.

– High level of privacy and security, ideal for handling sensitive information.

– Enhances company image and professionalism in the eyes of clients and partners.

– Easily customizable to meet specific business requirements and workflows.

Disadvantages of Traditional Office: 

– High initial setup and ongoing maintenance costs can strain budgets.

– Long-term lease commitments reduce flexibility to adapt to market changes.

– Difficult to quickly scale space up or down in response to business growth or downsizing.

– Responsibility for all facility management and utilities lies with the tenant.

– Potentially slower to adapt to changing business conditions or new work models.

2.2 Serviced Office – flexible, fully furnished 

A serviced office is a turnkey workspace that comes fully furnished and equipped, managed by a professional real estate provider. This space includes furniture and amenities such as high-speed internet, electricity, water, meeting rooms, reception areas, and support services like front desk, cleaning, and maintenance. Businesses can simply move in and start working without the need to invest in setup or facility management.

Serviced offices typically offer flexible lease terms, ranging from a few months to one year, making them suitable for businesses that need convenience and the ability to adapt quickly.

Advantages of Serviced Office: 

– Fully furnished and equipped, saving setup time and allowing immediate move-in.

– No upfront investment in furniture, utilities, or facility setup, reducing initial costs.

– Short-term contracts offer high adaptability to changing business needs.

– Support services (reception, cleaning, IT support) reduce management burden.

– Easy to upsize or downsize as business needs change.

– Often located in central business districts, enhancing accessibility and brand image.

Disadvantages of Serviced Office: 

– May be more expensive than traditional offices in the long run.

– Restricted ability to modify layout or branding.

– Less privacy in common areas like meeting rooms or lounges.

– Service quality depends on the provider’s reliability.

2.3 Coworking Space – cost-effective, connecting startup communities

Coworking space is a shared office model where multiple businesses or individuals work together in an open space, sharing resources and infrastructure. These spaces provide a professional working environment with amenities such as desks, high-speed internet, meeting rooms, lounge areas, and sometimes free coffee. Rental costs are very flexible (daily, weekly, or monthly) and are usually lower than traditional or serviced offices.

This model is especially suitable for startups, freelancers, and small businesses looking to leverage a creative environment, community connections, and minimize fixed costs.

Advantages of Coworking Space: 

– Lower rental costs compared to traditional or serviced offices.

– Access to shared amenities without upfront setup investment.

– Flexible rental terms (daily, weekly or monthly), suitable for changing needs.

– Opportunities to meet and connect with professionals, freelancers, and startups.

– Creative, dynamic environment suitable for startups and freelancers.

– Often located in central, convenient areas with easy access to transportation.

Disadvantages of Coworking Space: 

– Limited privacy due to open layout.

– Noise and distractions may affect productivity.

– Limited ability to personalize space or reflect company branding.

– Shared facilities can be overbooked during peak times.

– Less control over office security and access compared to private offices.

>> See more:

– Coworking Spaces in Ho Chi Minh City

– Coworking Spaces in Hanoi

3. Key Factors to Consider When Choosing Office by Business Type

To ensure the office meets current needs and supports future goals, businesses need to carefully consider factors such as space requirements, operational model, and expansion plans.

3.1 Space requirements

Office size is a key factor to consider when choosing a workplace, as it directly impacts employee comfort, productivity, and the ability to meet operational needs. To make an informed decision, businesses should assess their current workforce size as well as future growth projections. For example, a small startup with 5 – 10 employees may only need 50 – 100 m2 in a coworking space. In contrast, a large company with hundreds of employees might require an office of 500 m2 or more.

The office size should not only cover the working area but also consider amenities such as meeting rooms, lounge areas, and spaces for specialized equipment. An example would be a tech company that may need extra space for servers or labs, while a creative studio requires areas for filming and editing equipment. Accurately assessing space needs enables businesses to expand or reorganize their office quickly to meet changing demands without disrupting operations.

3.2 Operational model

The operational model of a business plays a key role in shaping the structure and functionality of the office, serving as a critical basis for making office leasing decisions.

– Remote work model: Businesses adopting this model only need minimal office space, mainly for periodic meetings, partner visits, or flexible support for employees who choose to work on-site. Office lease terms are often short-term to allow flexible adjustment when office space needs change or expand in the future.

– Hybrid work model: Businesses adopting this model need to provide sufficient space for both individual and team work, with flexible areas that employees can use on a rotating basis. It is also important to equip common amenities such as virtual meeting rooms, relaxation zones, and creative spaces to boost productivity and employee engagement.

– Traditional office model: Suitable for businesses that require strict supervision, frequent direct interaction, or operate in specialized fields such as customer service centers, laboratories, or manufacturing. The office should be clearly organized, with fixed workspaces for individuals and departments, and fully equipped with necessary tools to optimize productivity and work efficiency.

3.3 Expansion plans

Planning for future growth is essential to avoid complications and extra costs associated with relocating the office later.

– Staff growth: If the business plans to increase the number of employees within the next 1 – 3 years, it should choose an office that can be expanded on-site or within the same building/area. Serviced offices or coworking spaces are usually more flexible in meeting this need compared to traditional offices with long-term leases.

– Market strategy: Companies planning to expand into multiple regions or new markets should choose offices in convenient locations that are easily accessible to customers and partners. This helps enhance brand presence and facilitates efficient business operations. At the same time, they should consider offices with flexible lease terms to allow easy expansion or relocation when needed.

– Long-term budget: Expansion plans must align with financial capacity. Businesses need to anticipate costs for rent, equipment, operations, and other expenses to ensure stable operations. Choosing an office that fits the budget helps avoid financial risks and creates favorable conditions for sustainable growth.

4. Maison Office – Your Trusted Partner in Office Leasing Across All Business Types

Maison Office is one of the leading office leasing consultants in Hanoi and Ho Chi Minh City, with over 10 years of experience in the industry. Here are the key reasons why Maison Office is a trusted partner for businesses:

– Experienced consultancy team: Maison Office’s consultants have deep market insight, helping businesses quickly find office spaces that match their budget, scale, and business goals.

– Diverse options: With a network of over 2,000+ professional office buildings located in central business areas, Maison Office offers clients a wide range of flexible choices – from premium Grade A buildings to more budget-friendly Grade B and C options. This allows us to meet the needs of all types of businesses, from startups and SMEs to multinational corporations.

– Strategic locations: We are committed to providing offices in strategic locations, ensuring easy access for clients and partners. Additionally, essential amenities such as online meeting rooms, pantries, and parking are always available to boost work efficiency and employee satisfaction.

– Future-proof solutions: We not only help you find the right office that meets your current needs but also advise on future expansion options that align with your growth plans and financial capacity. This approach helps mitigate financial risks and avoids unexpected costs.

– Comprehensive support: Maison Office assists businesses at every step of the office leasing process, from providing detailed information, scheduling site visits, preparing comparison reports, to negotiating rental prices and contract terms.

With a professional approach and strong market presence, Maison Office is committed to delivering effective, tailored office leasing solutions for businesses of all types and sizes.

Let us be your trusted partner in discovering the best office solutions tailored to your business needs, and take the first step toward a productive, flexible workspace. Contact Maison Office now for expert, free consultation!

See more: 

– Office for Lease in Ho Chi Minh City

– Office for Lease in Hanoi 

1. What is Office Rental Cost?

Office rental costs encompass all the expenses a business needs to pay in order to use and operate a workspace in a commercial office building. It is not just the rental rate per square meter, as many people mistakenly believe, but also includes various additional items related to operations, management, utilities, and legal matters.

For many businesses, having a thorough understanding of office rental cost Vietnam is key to:

– Developing an effective operational budget.

– Avoiding uncontrolled cost overruns.

– Ensuring that costs are properly accounted for in accordance with tax regulations.

“According to an internal survey conducted by Maison Office with over 500 clients in Ho Chi Minh City and Hanoi, 47% of businesses reported that their actual total costs were 15 – 25% higher than the listed rental rate, primarily due to overlooked additional expenses or miscalculations in the contract terms.” 

2. 12 Common Types of Office Rental Costs in Vietnam

When renting office space, many businesses focus solely on the rental rate per square meter without fully assessing the related costs. This can lead to budget discrepancies and impact overall financial efficiency.

In practice, the types of office rental costs in Vietnam are typically divided into 04 main categories: fixed costs, variable costs, one-time costs, and costs affected by contract terms.

2.1 Fixed Monthly Costs

Fixed monthly costs are the mandatory and relatively stable payments throughout the office rental period, including:

– Office Rent: Calculated based on area (net usable area or wall-to-wall), with the unit price varying according to the building class (A, B, C) and geographical location.

– Service Fees: Covering costs for management, cleaning, maintenance of common systems, typically calculated per square meter (m2) per month.

– VAT (Value Added Tax): Applied at 10% on the total rent and service fees, in accordance with current tax regulations.

2.2 Variable Costs

These costs arise depending on the business activities and the extent of space utilization. They typically include:

– Electricity costs: Usually separate from service fees, calculated based on individual meters or the building’s specified unit price.

– Parking fees: Charged based on the number of motorcycles/cars registered by employees.

– Overtime fees: Many office buildings charge fees for working outside regular business hours or on weekends.

>> See more: After-Hours Office Rental Fees: What You Need to Know 

2.3 One-time Costs

One-time costs occur at the beginning or end of the rental contract and can represent a significant portion of the total cost if not carefully considered. These include:

– Office interior design and construction costs: This includes design, construction, and finishing office space, typically not considered part of the rental cost but affects the overall budget.

– Space restoration costs: A mandatory expense when the contract ends if the space needs to be returned to its original condition.

– Office rental insurance: Some buildings require the purchase of property and fire insurance for the rented area.

2.4 Costs Affected by Contract Terms

These costs are often unclear unless carefully reviewed with proper consultation. Therefore, businesses need to carefully consider the following terms:

– Rental area calculation: The method used to calculate the rental area (wall-to-wall or net usable area) will impact the total cost.

– Rent adjustment based on the CPI index: Some contracts stipulate annual rent adjustments based on inflation (Consumer Price Index).

– Exchange rates and unfavorable adjustments: For contracts priced in USD but paid in VND, fluctuations in the exchange rate can lead to unforeseen additional costs.

3. Guide to Calculating Total Office Rental Costs

Instead of solely relying on the rental rate per square meter, businesses should evaluate office rental cost Vietnam based on the total actual expenses. These include: base rent, service fees, VAT, variable costs, one-time expenses, and contract adjustment factors such as CPI or exchange rates.

3.1 Formula for Monthly Office Rental Costs

Example: 

3.2 Calculating Initial One-time Costs

– Deposit fee: Typically 2 – 3 months of base rent

– Interior fit-out cost: Depending on design, around 2 – 5 million VND/m2

– Restoration cost: Applicable if there’s a commitment to return the space to its original condition

– Office insurance fee: If required by the building

These are not part of the monthly fees but directly impact the total budget in the first year.

3.3 Estimating Total Rental Costs over 12 Months

Suggestion: Businesses should create a detailed Excel spreadsheet outlining each cost item to assess financial capacity and compare different leasing options effectively.

4. Which Office Rental Costs Are Eligible for Accounting?

For businesses, office leasing is not just an operational issue – it also directly impacts deductible expenses when determining corporate income tax (CIT). However, not all office rental-related costs are considered eligible deductible expenses.

Office rental costs are considered eligible deductible expenses if they meet the following 03 conditions (as stipulated in Circular 96/2015/TT-BTC):

Common office rental expenses considered deductible:

– Office rent as specified in the lease agreement

– Building management service fees (if clearly stated in the contract and invoice)

– Input VAT (if eligible for deduction)

– Electricity, water, and overtime charges (with valid invoices)

– Depreciation of office furniture and fixtures invested by the business

– Restoration costs (if contractually required upon lease termination)

Cases where office rental costs are NOT considered deductible: 

– Renting an office without a valid lease agreement or invoice

– Rent payments made in cash exceeding 20 million VND per transaction

– “Virtual offices” used solely for business registration without actual usage

– Interior expenses that exceed allowable depreciation or are not properly allocated

For examples: 

– A business rents an office for 30 million VND/month with a valid contract, VAT invoice, and bank transfer → 100% deductible expense.

– Renting an office from an individual for 6 months without a contract and paid in cash → Not deductible.

5. How to Record Office Rental Costs in Accounting Books

To ensure office rental expenses are properly recognized and deductible for corporate income tax purposes, businesses must accurately account for these costs in compliance with Vietnamese accounting standards and current regulations, including Circular 200/2014/TT-BTC and Circular 96/2015/TT-BTC.

Depending on the payment method (prepayment, post-payment, or periodic payments), office rental expenses should be recorded in the appropriate accounts such as 242, 335, 154, 627, 641, 642, etc.

5.1 Accounting for Full Advance Payment of Rental Costs

This method applies when the business pays the full rental amount under the contract at the beginning of the term.

Debit Account 331 – Payables to lessor

– Credit Account 111, 112 – Cash or bank transfer

5.2 Accounting for Advance Payments for Multiple Periods (Prepaid Expenses)

When a company makes a one-time payment for 6 months to 1 year of rent, the expense must be allocated evenly each month.

Accounting entry upon receiving the invoice: 

Debit Account 242 – Long-term prepaid expenses

Debit Account 133 – Input VAT (if applicable)

– Credit Account 111, 112, or 331 – Cash, Bank Transfer, or Payables

Monthly Allocation Accounting Entry: 

Debit Account 154, 627, 641, or 642 (depending on usage purpose)

– Credit Account 242 – Prepaid expenses

5.3 Accounting for Monthly Rental Payments

This method is used when the business pays or receives the office rental invoice on a monthly basis.

Debit Accounts 154, 627, 641, 642 – Operating expenses

Debit Account 133 – Input VAT (if any)

– Credit Accounts 331, 111, 112 – Payables or immediate payment

5.4 Accounting for Post-Payment (or Upon Receiving Invoices)

Example: The company rents the office from January to June but only receives the invoice or makes payment to the lessor in July.

Monthly expense recognition entry (even if unpaid):

Debit Account 154, 627, 641, 642 – Operating expenses

– Credit Account 335 – Accrued expenses

When payment is made or an invoice is received: 

Debit Account 335 – Accrued expenses

– Credit Account 111, 112 – Cash or bank transfer (upon payment)

Debit Account 331 – Payables (if a VAT invoice is issued)

6. Regulations on Office Rental Costs Related to Taxes

When renting an office, in addition to calculating rental rates and operating costs, businesses must pay close attention to tax considerations to ensure expenses are recognized as deductible. A lack of understanding of tax regulations may lead to disallowed expenses or penalties. Below are 3 key types of taxes to note:

>> See more: Office rental tax rate 8 or 10? Can VAT be reduced? 

6.1 Conditions for VAT Deduction on Office Rental Costs

Value Added Tax (VAT) is a common tax that businesses are required to pay when leasing office space from legally recognized lessors (i.e., organizations with legal entity status).

When leasing office from a registered business or organization, the tenant will receive a VAT invoice with a standard tax rate of 10% applied to the total rental fee plus service charges. This VAT amount can be deducted if the business meets the legal requirements, including:

– Having a clear and valid lease agreement

– A legitimate VAT invoice from the lessor

– Payment made via bank transfer if the amount exceeds 20 million VND

Note: In cases where the lease is from an individual who does not issue a VAT invoice, the business cannot deduct this tax.

6.2 Personal Income Tax (PIT) for Individual Landlords

When a business rents office space from an individual, the lessor must pay personal income tax (PIT) and VAT if the total rental revenue exceeds 100 million VND per year. In this case, the business is obligated to:

Withhold and pay on behalf of the lessor:

– VAT: 5%

– Personal Income Tax (PIT): 5%

Prepare a clear lease agreement, declare and pay taxes on time

Properly record the rental expense in the accounting books

Note: If an individual’s rental income is under 100 million VND per year, they are exempt from all 03 taxes: VAT, personal income tax (PIT), and business license tax.

6.3 Periodic Tax Declaration Requirements for Office Rental Costs

To ensure office rental costs are recognized as valid expenses and not disallowed during tax finalization, businesses must:

– Declare in the correct accounting period (monthly or quarterly)

– Keep complete invoices, contracts, and payment documents

– Declare input VAT (if deductible)

– Declare and pay taxes on behalf of individuals (if renting from individuals)

Timely tax declaration and payment also help avoid errors and administrative tax violations.

7. Common Mistakes in Evaluating Office Rental Costs

Many businesses, especially startups or first-time office renters, often underestimate the full range of actual costs. This can easily lead to budget overruns, affecting operational efficiency and long-term financial planning.

Here are 5 common mistakes businesses should avoid:

– Focusing only on the rental rate per m2 and overlooking additional costs such as VAT, service fees, electricity cost, parking fees, etc.

– Failing to review lease price adjustment clauses in the contract carefully.
Not negotiating one-time costs or annual rent increase rates thoroughly.

– Misunderstanding how the leased area is calculated (gross vs. net), leading to inaccurate total cost estimates.

– Not preparing a comprehensive rental cost summary for comparison and budgeting.

Suggestion: Before signing the office lease, businesses should create a detailed Vietnam office lease cost breakdown and compare options across buildings. If needed, Maison Office can help you analyze rental costs, negotiating lease terms, and review contracts.

>> See more: What’s the difference between Net area vs Gross floor area? 

8. Maison Office Supports Businesses in Optimizing Office Rental Costs

With over 10 years of experience advising and representing tenants in negotiations with landlords in Hanoi and Ho Chi Minh City, Maison Office not only helps businesses find the right workspace but also supports them throughout the negotiation process to optimize total rental costs.

Here are 5 ways Maison Office can help your business save time, budget, and reduce unexpected risks:

Transparent and comprehensive cost consultation 

– Analyze total rental costs: base rent, service charges, VAT, parking fees, after-hours usage, fit-out costs, reinstatement fees, etc.

– Provide clear monthly and yearly cost estimates to avoid being misled by low rent offers with unexpected extra fees.

Compare rental costs across buildings in the same segment 

– Maison Office maintains a database of 2,000+ office buildings in central districts.

– We help clients compare actual rental costs, chargeable areas, and incentives such as free fit-out or parking.

Negotiating contract terms favorable to cost

Support negotiations on terms such as:

– Waiving overtime fees, waiving charges based on vehicle quantity, etc.

– Offering 1 – 3 months of free rent for office interior design activities.

– Limiting periodic rent increases

Carefully reviewing clauses on CPI adjustments, exchange rates, and premises handover to avoid unexpected costs after contract signing.

Representing business in negotiations with building owners 

– Save time by avoiding multiple 1:1 meetings with different landlords.

– Ensure the business secures the best leasing terms aligned with a clear budget and usage requirements.

Legal and accounting support related to rental costs 

– Guide the preparation of contracts, invoices, and payment documents to ensure valid expense recognition for tax finalization.

– Coordinate with the company’s finance department to handle rental cases involving individuals, VAT deductions, and personal income tax declarations.

Maison Office is not just an office space provider but a strategic partner that helps businesses make smart, cost-effective, and legally compliant leasing decisions – from cost analysis to contract signing.

Contact Maison Office now for free consultation and a cost comparison of office rentals in your areas of interest.

9. Frequently Asked Questions About Office Rental Costs

Is an invoice mandatory for office rental costs?

Yes. To recognize office rental as a valid expense for corporate income tax finalization, the company must have a full financial invoice, lease contract, and non-cash payment evidence (if payment exceeds 20 million VND per transaction). Without an invoice, the expense will be disallowed.

Can office rentals from individuals without an invoice be eligible costs?

Yes, but compliance with regulations is required. The company must sign a clear lease contract and withhold/pay personal income tax (5%) and VAT (5%) if the individual’s annual rental income exceeds 100 million VND. Failure to follow these procedures may lead to disallowance of the expense during tax audits.

Can office interior construction costs be included as allowable expenses?

Yes, if the costs serve business activities and are properly allocated or depreciated over their useful life. Large expenses for interior work usually must be capitalized as fixed assets and depreciated according to tax regulations.

Can businesses deduct VAT from office rental costs?

Yes, if renting from an organization issuing valid VAT invoices and payments are made via bank transfer. If renting an office from individuals without VAT invoices, VAT cannot be deducted.

Is a notarized contract required for office rentals?

No, it is not mandatory. Under current law, commercial office lease contracts do not require notarization as long as both parties clearly agree and the contract is legally signed. However, notarization is recommended for long-term leases to enhance legal certainty.

1. Understanding Short-Term and Long-Term Office Leases

As Vietnam’s commercial real estate market becomes increasingly dynamic and competitive, choosing between a long term lease vs short term lease has become a strategic decision for businesses.

1.1 Short-term office lease

Short-term office leases typically have durations ranging from a few months up to just under 12 months. This type of lease is often associated with flexible workspace solutions such as coworking spaces, serviced offices, or temporary rental agreements that allow businesses to quickly adapt their office needs. These options are especially popular in major urban centers like Ho Chi Minh City and Hanoi, where demand for flexible office solutions is steadily increasing.

Short-term leases are designed to meet the needs of businesses that require flexibility, such as:

– Startups looking to minimize upfront costs.

– Representative offices setting up a temporary base.

– Project teams needing space for limited durations.

– Companies testing new markets before making longer-term commitments.

1.2 Long-term office lease

Long-term office leases usually last from 2 to 10 years or more, providing a stable foundation for well-established businesses with long-term development plans. This type of lease is typically associated with traditional office spaces, often located in Grade A or B office buildings within central business districts.

Long-term leases are particularly favored by: 

– Large corporations with strong and stable financial capacity.

– Well-established businesses with long-term operational plans.

– Government agencies that need stability and clear legal terms over the long term.

– Multinational corporations that have established a stable presence in the Vietnamese market.

Both types of leases offer distinct advantages and disadvantages that need to be carefully evaluated in the dynamic Vietnamese market. By thoroughly understanding these leasing options and their implications, businesses can make informed decisions that align with their operational goals and market strategies in Vietnam.

2. Pros and Cons of Short-Term Office Lease

In today’s fast-changing business environment, flexibility has become a top priority for many companies. Short-term office leases have emerged as a practical solution to meet these needs, offering a range of benefits while also presenting certain limitations. Understanding the pros and cons of this leasing model is essential for businesses to make informed decisions.

2.1 Pros of Short-Term Office Lease

– High flexibility: Short-term leases allow businesses to easily change office location or scale based on operational needs. For example, a tech startup can quickly scale up or down its workspace based on growth pace without being tied to a long-term lease.

– Low initial investment: Short-term office spaces, especially serviced offices or coworking spaces, are often fully furnished and equipped with utilities (electricity, water, internet) as well as support services such as reception, security, and cleaning. This significantly reduces initial setup costs compared to traditional office leases, where businesses have to invest in furniture, equipment, and renovation expenses.

– Quick access to prime locations: Short-term office leases often allow businesses to access prime locations in central business districts without the long-term financial commitment. These locations typically come with high rental costs, but serviced offices and coworking spaces offer more affordable options. This allows small or newly established businesses to build a professional image and connect with a dynamic business ecosystem.

– Reduced management and maintenance responsibilities: Short-term office leases often include maintenance, cleaning, and technical support services such as IT troubleshooting or office equipment repairs. This allows businesses to focus on their core operations without the burden of managing facility-related issues.

2.2 Cons of Short-Term Office Lease

– Higher monthly costs: Although the initial costs are low, short-term lease rates per square meter are typically much higher than those of long-term leases. Due to the short contract duration and ease of termination, landlords often apply higher rates to offset risks. In addition, if a business continues to renew short-term leases over an extended period, the total cost may far exceed that of signing a long-term lease from the beginning.

– Limited customization options: Short-term office spaces often restrict a company’s ability to customize the layout or design to fit specific branding or operational needs. This is because providers typically favor standardized setups to accommodate multiple clients efficiently. As a result, businesses may find it challenging to create a fully personalized work environment that reflects their identity or supports specialized functions.

– Risk of non-renewal: Short-term leases often do not guarantee contract renewal, especially in Vietnam’s real estate market where occupancy rates are high (over 90% in central areas). If landlords or office providers decide to raise rent or prioritize other clients, businesses may be forced to relocate, causing operational disruptions and affecting stability.

– Limited contract negotiation power: Compared to long-term leases, businesses renting short-term offices often have less room to negotiate contract terms such as rent price, lease duration, or additional benefits. Landlords or providers usually offer standardized service packages, making it difficult for businesses to negotiate terms tailored to their specific needs.

3. Pros and Cons of Long-Term Office Lease

With extended lease terms, long-term office leases offer stability and opportunities for cost optimization but also come with several challenges. This section will analyze in detail the pros and cons of long-term office leasing, providing essential information to help businesses make decisions that align with their goals and operational needs in the Vietnamese market.

>> See more: Office Space Lease Agreement Template in VietNam 

3.1 Pros of Long-Term Office Lease

– Stable rental costs: One of the biggest advantages of long-term office leases is the ability to fix rental costs throughout the contract period, helping businesses avoid fluctuations in the real estate market. In recent years, office rental prices in central areas of Ho Chi Minh City and Hanoi have increased significantly due to high demand and limited supply. In this context, a long-term lease contract can lock in lower rental rates, providing a financial advantage over the long term.

– Workspace customization: A long-term lease provides businesses with greater autonomy to design and modify their office space to match operational needs and brand identity. This enables companies to invest in tailored layouts, install technology systems, or build specialized areas such as creative zones or laboratories, enhancing operational efficiency and corporate image.

– Ensuring business continuity: A long-term lease provides stability in workplace location, allowing businesses to maintain a fixed address in key commercial areas. This consistency not only facilitates daily operations but also helps attract talent and build trust with partners and customers. It is especially critical in sectors such as finance, legal services, or manufacturing, where geographic stability plays a vital role in sustained business operations.

– Stronger negotiating power: In Vietnam, Grade A office buildings such as Keangnam Hanoi Landmark Tower or Vietcombank Tower often offer attractive incentives to long-term tenants, particularly multinational corporations and large enterprises. Businesses may negotiate benefits such as rent-free periods during the initial months, fit-out allowances, or more flexible lease renewal terms.

>> See more: What is Fit Out? How long does it take to Fit Out of the office? 

3.2 Cons of Long-Term Office Lease

– High initial costs: Long-term office leases typically require a significant upfront investment, including security deposits (usually equivalent to 3 – 6 months’ rent), fit-out expenses, and costs related to equipment or furnishings. This can create financial pressure for small and medium-sized enterprises or companies with limited capital.

– Lack of flexibility: In Vietnam’s rapidly evolving economic landscape, being tied to a long-term lease can limit a business’s ability to seize opportunities for relocating to more strategic locations. This rigidity may hinder quick adaptation to market changes or shifts in operational needs, such as expanding, downsizing, or relocating.

– Financial risks: In Vietnam, lease contracts often include strict clauses regarding early termination, requiring businesses to either continue paying rent or find a third party to transfer the lease. This can create significant financial burdens, especially when a company faces business difficulties or needs to change its strategy abruptly.

– Maintenance and management responsibilities: Unlike short-term leases, long-term office leases may require tenants to take full responsibility for maintenance, repairs, and compliance with building regulations. This increases overall operational costs and necessitates a dedicated facility management team within the business.

4. Key Factors to Consider When Choosing Lease Term

With the rapid development of various office rental models, Vietnam’s office market offers numerous opportunities but also presents distinct challenges for businesses. Among these, choosing between short-term vs long-term office lease Vietnam is a strategic decision that requires businesses to carefully evaluate multiple factors. They may include:

4.1 Stage of development and business objectives

The stage of business development plays a key role in determining the appropriate lease term. Startups or rapidly growing companies often prefer short-term leases to maintain flexibility. Conversely, established businesses such as financial corporations or manufacturing companies usually opt for long-term leases to ensure stability and build a lasting brand image.

For FDI companies entering a new market, short-term office leases are often the preferred option. This model allows businesses to test the market potential without committing to long-term financial and operational obligations, thereby minimizing risk. This makes short-term leasing the best lease type for FDI companies in Vietnam during their initial market entry phase. Once the business stabilizes and growth potential is confirmed, transitioning to a long-term lease can help optimize costs and solidify operations.

4.2 Business financial capacity

Financial resources heavily influence a company’s choice between short-term vs long-term office lease Vietnam.

• Short-term leases typically require lower upfront costs, as spaces are often pre-furnished and include bundled services such as internet, cleaning, and maintenance. This makes them suitable for small businesses or new market entrants with limited budgets.
• In contrast, long-term leases involve higher initial investments, including a security deposit and fit-out expenses. However, companies with strong financial resources, such as multinational corporations, can leverage long-term leases to lock in lower rental rates and hedge against future price fluctuations.

Accordingly, businesses need to assess their cash flow, long-term budget, and risk tolerance to determine the most suitable lease duration.

4.3 Industry Characteristics

The nature of a business’s industry greatly influences the choice of office lease term. Sectors that demand flexibility and rapid innovation – such as technology, advertising, or e-commerce – tend to favor short-term leases to quickly adapt to shifts in business strategy or market trends. In contrast, industries requiring stability and long-term investment in infrastructure usually prefer long-term leases to develop spaces tailored to their specialized needs.

4.4 Market conditions

Vietnam’s office real estate market is subject to significant fluctuations, especially in major cities like Hanoi and Ho Chi Minh City. Researching market trends is crucial when deciding between a short-term or long-term lease.

For instance, during periods of rising rental prices, securing a long-term lease can help businesses lock in lower rates and achieve cost savings over time. On the other hand, in a market with signs of oversupply, short-term leases offer more negotiating leverage and allow businesses to take advantage of lower rates without long-term commitments.

4.5 Expansion and growth plans

Businesses also need to assess their growth trajectory when choosing the lease term. Companies planning rapid expansion – such as those in technology or e-commerce – often prefer short-term leases for flexibility to adjust office space according to staff size or operational needs. Conversely, businesses with stable, steady growth plans typically opt for long-term leases to secure sufficiently large and consistent space for sustained operations.

Choosing between short-term vs long-term office lease Vietnam depends on various factors such as financial capacity, growth plans, industry characteristics, and market conditions. Each option offers distinct advantages and limitations, suitable for different development stages and operational goals. Carefully evaluating these factors before making a decision not only helps minimize risks but also supports sustainable growth in today’s dynamic business environment.

>> See more: How to Negotiate an Office Lease – Key Tips for a Better Deal 

>> See more: Office Space Lease Agreement Template in VietNam

1. Documents Required from the Tenant (Lessee)

To ensure the legality of office lease transactions, both the tenant and the landlord must provide valid documents in accordance with Vietnam office lease requirements set by the State. So, what documents are required for office leasing in Vietnam?

For the tenant, the documents required will depend on the type of legal entity such as:

– Vietnamese companies

– Foreign-invested Companies (FDI)

– Representative offices

>> See more: FDI Company in Vietnam: Opportunities for Foreign Investors 

1.1 Vietnamese Companies

For Vietnamese companies leasing office space, the following documents are typically required, as stipulated under the Law on Enterprises (Law No. 59/2020/QH14):

– Business Registration Certificate (BRC): A notarized copy of the certificate showing the company’s name, registered address, and business activities. This document confirms the legal status of the entity when entering into a lease agreement.

– Identification of the legal representative (ID card/Citizen ID/Passport): Used for identity verification during contract signing.

– Authorization letter or power of attorney: If the signer is not the legal representative and must be accompanied by the identification of the authorized person.

– Official letter requesting to sign an office lease contract: For large companies with internal procedures, applicable to enterprises with strict legal and accounting control processes.

– Company seal sample (if the contract requires stamping): Needed to complete the lease contract and payment procedures.

These documents confirm the company’s legal status and authority to enter into lease agreements.

Note: In cases where the business has not yet obtained a business license, some buildings may offer flexibility by allowing the lease contract to be signed under an individual’s name first. This contract can then be used to register the business license using the building’s address. Once the license is issued, the lease agreement can be updated to reflect the company’s legal entity.

1.2 Foreign-invested Companies (FDI)

Foreign-invested companies (FDIs) must submit additional documents reflecting their foreign ownership and compliance with Vietnam’s regulations, as stipulated in the Law on Investment (Law No. 61/2020/QH14) and the Law on Enterprises (Law No. 59/2020/QH14). The required office rental documents in Vietnam include:

– Investment Registration Certificate (IRC): A notarized copy of the IRC, issued under Article 38 of the Law on Investment, detailing the scope of the investment project, capital contribution, and foreign investors.

– Enterprise Registration Certificate (ERC): Confirms the company’s official business registration and legal establishment in Vietnam.

– Legal Representative’s Identification: A notarized copy of the passport or ID card of the legal representative.

– Power of attorney: If the lease is signed by an authorized representative, a power of attorney and the signatory’s identification documents are required, consistent with the Civil Code (Law No. 91/2015/QH13).

– Tax code certificate and seal (if applicable): Used to confirm the company’s tax registration status and to complete official contract signing procedures when required.

– Official request letter for office lease: The original document with the company’s seal (if available).

Note on consular legalization and translation:

– For documents issued by competent authorities abroad (e.g., the business registration certificate of a foreign parent company), consular legalization must be carried out at the Vietnamese diplomatic mission in that country or at the foreign diplomatic mission in Vietnam (Decree No. 111/2011/NĐ-CP).

– All documents in foreign languages must be notarized and translated into Vietnamese by an authorized translation organization in Vietnam (Decree No. 23/2015/ND-CP).

>> See more:

– Vietnam IRC: Step-by-Step Guide for Foreign Investors 

– Company Registration in Vietnam: Step-by-Step Guide 2026

1.3 Representative Offices

For representative offices, documents required for leasing office in Vietnam typically consist of establishment licenses and identification of legal representatives. Specifically, these include:

– Establishment License of the Representative Office: Issued by the relevant Vietnamese authority (usually the Ministry of Industry and Trade).

– Appointment Letter: A letter from the parent company appointing the chief representative of the representative office, specifying their authority.

– Identification of the Chief Representative: A notarized copy of the passport or ID card of the chief representative.

– Power of attorney (if applicable): If the lease contract is signed by an authorized person instead of the legal representative.

Note: Documents issued by foreign authorities (such as the appointment letter) must be consular legalized by the Vietnamese diplomatic mission abroad or the foreign mission in Vietnam and translated into Vietnamese by an authorized translation agency.

2. Additional Documents During Lease Process

Depending on the company’s size, business sector, and the landlord’s specific requirements, additional documents may be requested. These documents may include:

– Additional operation licenses (if applicable): For certain conditional business sectors (e.g., healthcare, education), subsidiary licenses must be provided in accordance with the Investment Law 2020 (Law No. 61/2020/QH14) to prove that the leased premises are used for the intended purpose.

– Most recent financial report: A copy of the audited financial statements (if available), in accordance with the Accounting Law 2015 (Law No. 88/2015/QH13), to help the landlord assess the financial capacity of the company.

– Usage plan: Some landlords may require a document describing the intended use of the premises (e.g., office, retail store, representative office) to ensure compliance with legal regulations and local zoning plans.

– Board of Directors’ or Parent Company’s Resolution: For high-value lease agreements, an approval decision from the Board of Directors or the parent company must be provided.

– Bank Reference Letter: It is often requested by landlords during office lease negotiations to assess the tenant’s ability to meet rental payment obligations.

>> See more: Vietnam Company Tax Rate: Corporate Tax, VAT, Iincentives 

3. Documents Required from the Landlord (Lessor)

When leasing office space in Vietnam, not only the tenant but also the landlord must provide a set of legally required documents. These documents verify ownership rights, construction legality, and the landlord’s authority to lease the premises. The proper and complete preparation of these documents is the first step toward establishing a transparent and legally compliant lease transaction, minimizing legal risks for both parties.

Below are the essential office rental documents in Vietnam that the landlord (lessor) is required to provide, categorized by specific cases:

– Individual as the Landlord

– Company or Organization as the Landlord

– Special Case: Subleased Property

3.1 Individual as the Landlord

When the landlord is an individual, the following documents are typically required to verify ownership and ensure the legality of the lease. These typically include:

– Certificate of land use rights, ownership of houses and other assets attached to the land: Confirmation of the landlord’s ownership or lawful right to use the property.

– Personal identification documents: A certified copy of the ID card or passport of the property owner.

– Power of attorney: If the landlord authorizes another person to sign the lease, a power of attorney along with the authorized person’s ID must be provided.

– Construction permit: To confirm that the construction on the land is legally built, especially for commercial or office spaces.

– Office lease agreement: A formal contract outlining the rental terms between the individual landlord and the tenant.

These documents together form the essential legal basis to conduct a secure and transparent office leasing process with an individual landlord.

3.2 Company or Organization as the Landlord

When the landlord is a company or organization (including Vietnamese enterprises and Foreign-invested companies), the required documents include:

– Certificate of land use rights, ownership of houses and other assets attached to the land: Confirms legal ownership or usage rights of the property.

– Construction permit: Certifies that the building was legally constructed and is approved for use as office space.

– Completion certificate: Confirms that the building has been constructed in accordance with the construction permit and technical regulations.

– Business registration certificate: Demonstrates the lessor’s legal status and capacity to enter into lease agreements.

– Fire safety certificate: Mandatory for office buildings with 5 floors or more or large floor areas.

– Power of attorney (if signing on behalf of the owner): A legal document proving the signer has the lawful authority to represent the owner.

– Office lease agreement: A detailed contract between the building owner and the tenant outlining terms such as rental price, lease duration, and office usage.

– Brokerage authorization documents: Consulting and brokerage units such as Maison Office must have a cooperation agreement or an introduction letter from the building owner to ensure legitimacy.

3.3 Special Case: Subleased Property

In cases where the office space is subleased, additional documents are required to verify the legal rights of the sublessor. These typically include:

– Original lease agreement: A copy of the original lease between the sublessor and the property owner, confirming the legal right to use the space.

– Consent letter from the property owner: Written approval from the owner allowing subleasing, unless the original lease already grants this right.

– If the sublessor is an individual: 

– Certified copy of personal identification (ID card, passport)

– Power of attorney (if another person signs on behalf of the sublessor)

– If the sublessor is a company: 

– Business Registration Certificate (BRC)

– Personal identification of the legal representative.

– Power of attorney (if the contract is signed by someone other than the legal representative).

– Official company seal or seal sample (if required by the lease agreement).

– Office lease agreement: A detailed contract between the sublessor and the tenant.

These documents are part of the standard office rental documents Vietnam and help confirm the sublessor’s legal status and signing authority.

Note: 

– The documents provided must be valid, not expired or revoked.

– Some documents require notarization or authentication according to regulations to ensure legal validity.

– Information on the documents must be consistent and match the office lease contract (e.g., company name, address, representative).

– The office lease agreement must be notarized if the lease term exceeds 6 months (according to Article 124 of the 2014 Housing Law No. 65/2014/QH13).

– To avoid disputes or errors, it is recommended to have legal experts carefully review the documents.

4. Maison Office: Your Trusted Partner in Preparing Office Lease Documents

Navigating the legal and procedural requirements for leasing office space in Vietnam can be complex, especially for foreign businesses unfamiliar with local regulations. Maison Office is a reputable office space consulting and brokerage firm that helps businesses identify and secure a suitable, professional workspace.

With deep expertise in Vietnam’s commercial real estate market, Maison Office supports businesses in preparing and reviewing all essential office rental documents. We assist both tenants and landlords in collecting, verifying, and organizing the documents required for leasing office in Vietnam. For foreign-invested enterprises, we also provide guidance on document legalization, translation, and licensing procedures in accordance with Vietnamese laws.

With an experienced team of consultants and legal experts, Maison Office ensures a smooth, transparent, and legally sound leasing process – minimizing risks and saving valuable time for your business. Whether you are setting up a new office, relocating, or expanding operations, we are committed to delivering end-to-end support tailored to your needs.

Maison Office not only assists in preparing legal documents but also offers strategic advice on choosing office locations that fit your industry and business size. With a database of over 2,000 buildings in central districts of Hanoi and Ho Chi Minh City, we help clients quickly access and find the perfect office for their needs. Additionally, Maison Office also supports clients in negotiating contract terms to ensure clear rights and responsibilities between parties.

Contact us now for a free consultation. Let Maison Office be your trusted partner for every step of your business growth in Vietnam!

>> See more: How to Set Up a Company in Vietnam – A Complete Guide 

1. Usage-Based Hidden Costs

When operating an office in Vietnam, businesses often focus on fixed costs such as rent, employee salaries, or office equipment. However, some usage-based hidden costs can significantly increase total operational expenses if not properly anticipated and managed. These costs often arise from daily operations and can vary depending on the business scale, resource usage, and employee habits. These typically include:

1.1 Air-conditioning electricity charges

Electricity costs for air conditioning systems are one of the significant hidden costs office in Vietnam, especially given the year-round hot and humid climate. Office buildings often charge air conditioning electricity fees separately, based on usage hours or office area. Many businesses fail to anticipate the high power consumption caused by continuous air conditioner use, particularly during summer months. If not managed effectively, this cost can significantly increase the total operating expenses, impacting the company’s budget.

In reality, an average office may have to pay from 500,000 to 2,000,000 VND per month just for air conditioning, depending on the unit’s capacity and frequency of use. Additionally, lack of regular maintenance or using old air conditioning units can increase these costs, as inefficient machines consume 1.5 to 2 times more electricity than modern systems.

1.2 Power consumption for private office use

Power consumption costs for privately used areas within the office (such as personal workspaces, meeting rooms, pantries, etc.) are also a significant hidden expense that businesses in Vietnam often underestimate when budgeting. These areas often use multiple electrical devices such as computers, monitors, projectors, and dedicated lighting systems.

In Vietnam, commercial electricity rates are typically higher than residential rates, ranging from 2,500 to 4,000 VND/kWh depending on the time of use. For example, an office with 10 separate rooms, each using an average of 5 – 7 electrical devices for 8 hours a day, may incur electricity costs ranging from 5 – 15 million VND per month solely for power consumption.

In addition, another factor driving up costs is inefficient device usage habits, such as leaving computers on standby, not turning off lights when leaving a room, or using outdated equipment with low energy efficiency.

1.3 Monthly parking fees for motorbikes and cars

One of the hidden costs that many businesses in Vietnam often overlook is the monthly parking fee for motorbikes and cars. In major cities like Hanoi and Ho Chi Minh City, where motorbikes are the primary mode of transport for most employees and cars are increasingly common among management, parking fees can accumulate into a significant expense.

On average, motorbike parking fees range from 100,000 to 300,000 VND per month per vehicle, depending on the building’s location and parking facility quality. Meanwhile, car parking fees are significantly higher, typically ranging from 1,500,000 to 3,500,000 VND per month, especially in central areas or premium office buildings.

2. One-Time & Irregular Costs

One-time and irregular costs are expenses that do not occur regularly but can have significant financial impact when they arise. Although unpredictable, managing these costs carefully is essential for accurate budgeting and avoiding unexpected financial burdens. Below are the one-time and irregular costs that businesses need to pay close attention to:

2.1 Overtime usage fees (outside standard working hours)

Overtime usage fees are irregular costs that can significantly impact a business’s budget. Many office buildings in major cities like Hanoi and Ho Chi Minh City charge additional fees for electricity, air conditioning, elevators, or security services used outside standard working hours. These fees typically range from 100,000 to 500,000 VND per hour, depending on the office size, type of service used, and the building’s policy.

If a business does not carefully calculate overtime frequency or fully understand the terms in the lease agreement, these costs can quickly exceed the planned budget.

2.2 One-time setup costs (internet cabling, signage, security systems)

One-time setup costs usually refer to the initial expenses for the office, including internet cabling installation, company signage, security systems, furniture purchase, and interior decoration. These costs are often underestimated or not fully budgeted by businesses, leading to budget overruns during the initial phase.

– In Vietnam, the cost of installing internet cables and internal network systems for an average office can range from 10 to 50 million VND, depending on the size and technical requirements.

– Installing company signage often incurs considerable costs for design, production, and installation.

– Security systems, such as surveillance cameras or electronic door locks, can further increase costs, especially when high-tech solutions need to be integrated.

Careful planning and vendor negotiation are essential to control these one-time costs and ensure a smooth start to office operations.

2.3 Construction phase costs (electricity, management fees during fit-out)

The construction and fit-out phase of an office often involves hidden costs, particularly for electricity and building management services. During this period, businesses must cover electricity usage from construction equipment such as drills, grinders, welding machines, and temporary lighting systems.

These electricity costs typically range from 5 to 15 million VND, depending on the duration and intensity of the work. Additionally, many buildings in Vietnam apply management fees during the fit-out phase, including supervision fees, elevator use for transporting materials, and cleaning services, typically ranging from 10,000 to 50,000 VND per square meter.

These fees are often not clearly stated in the initial lease agreement, leading to unexpected expenses. To manage them, businesses should request a detailed quotation from the building management before construction and plan the fit-out efficiently to shorten timelines and minimize costs.

2.4 Make-good & reinstatement fees upon lease end

Make-good and reinstatement fees are one-time costs incurred when a business ends its lease and returns the premises. Under many lease agreements in Vietnam, tenants are required to restore the office to its original condition, which may include dismantling partitions, repainting walls, repairing floors, removing installed fixtures, and fixing damages.

These requirements can lead to substantial expenses – often ranging from tens to hundreds of millions of VND – depending on the extent of the modifications made during the tenancy.

Additionally, if the tenant fails to restore the premises as required, the landlord may hire external contractors at a higher cost and impose penalties. To minimize expenses, businesses should negotiate make-good terms when signing the lease or carry out the restoration themselves to better control costs.

>> See more: Office Space Lease Agreement Template in VietNam 

3. How to Avoid Hidden Costs When Renting Office Space

When renting office space in Vietnam, many businesses – especially foreign companies – are prone to incurring hidden costs due to unclear contract terms or a lack of detailed information. Proactively identifying and managing these expenses from the outset helps optimize the budget, avoid legal risks, and ensure more efficient operations. To help businesses control costs and avoid financial surprises from hidden fees, this section outlines specific strategies they can apply:

3.1 Questions to ask before signing the lease

Before signing an office lease, businesses should ask specific questions to the landlord or leasing agent to identify and avoid hidden costs office in Vietnam. These may include:

– Does the lease include service charges (e.g. cleaning, security, elevator maintenance), or are these billed separately?

– Are there overtime usage fees (e.g. for electricity or air conditioning), and what are the rates?

– Is there a make-good requirement at the end of the lease, and what is the estimated cost?

– During the office fit-out phase, will the business be responsible for additional electricity or management fees?

– Is parking available for staff and visitors? What are the monthly parking fees for motorbikes and cars?

– What is the policy on rent increases or service charge adjustments during the lease term?

To avoid misunderstandings, businesses should request written or emailed responses and keep them for future reference. Asking these questions not only clarifies potential hidden costs but also lays the groundwork for negotiation, helping businesses optimize their budgets and avoid financial surprises throughout the lease term.

3.2 Requesting a full cost breakdown (including service charges)

In major cities like Hanoi and Ho Chi Minh City, office rental costs include not only the base rent but also service charges and other additional expenses, which can significantly increase the budget if not anticipated. Therefore, requesting a full cost breakdown is an essential step for businesses to clearly understand and control the associated costs when renting office space in Vietnam.

>> See more: Office Rental Service Fees: Definition and Classification

A cost breakdown should include the following items: 

– Base rent: Confirm whether the rent is calculated per square meter and clarify the measurement method used (actual usable area or gross floor area).

– Service charges: Request the landlord to specify which services are included (cleaning, security, elevator maintenance, etc.) and how the fees are calculated (per m2, fixed amount, or based on actual usage).

– Utilities fees: Ask whether electricity, water, and internet costs are charged separately or included in the service charges.

– Initial setup costs: Includes installation fees for internet, company signage and security systems like cameras or electronic locks. Ask the landlord if they provide support or share these costs.

– Overtime usage fees: Confirm the charges for using electricity, air conditioning, or elevators outside standard working hours, as well as the registration procedures required.

– Parking fees: Clarify the monthly costs for motorbike and car parking, the number of allocated parking spots, and any additional charges if usage exceeds the limit

– Make-good and reinstatement fees: Costs to restore the office to its original condition at lease end. Clarify specific requirements such as removal of partitions, repainting walls, and floor repairs, and request a detailed cost estimate.

– Legal and administrative fees: Include costs for business registration at the office address (if required) and contract review fees by a lawyer. Also, confirm whether there are additional administrative fees, such as signage registration fees.

– Other incidental costs: Include periodic maintenance fees, annual rent escalation (typically 5 – 10%), and penalty charges (such as late payments or misuse of premises).

Notes: 

– Ask the building owner to provide a detailed written cost breakdown, including sample invoices from previous tenants if available, to estimate actual expenses.

– Compare the breakdown with similar buildings in the area to assess its reasonableness.

– Ensure all fees are clearly stated in the contract or its annex to avoid disputes later.

3.3 Negotiation tips to minimize overheads

Effective negotiation is key to minimizing operational expenses, especially hidden costs, when renting office space. In Vietnam, many lease terms – such as base rent, service fees, and additional charges – can be negotiated if businesses are well-informed and apply the right strategies. Below are some practical negotiation tips companies should consider:

– Negotiate rent-free periods: Many landlords in Vietnam are willing to offer 1 – 3 months of rent-free periods, especially during the office fit-out phase. This is a valuable opportunity to reduce initial setup costs.

– Discuss annual rent adjustments: Instead of accepting a fixed annual rent increase of 5 – 10%, businesses can propose a cap on the increase or tie it to the CPI to ensure adjustments reflect actual economic conditions.

– Negotiate service and utility fees: Businesses should request a clear breakdown of service charges in the lease (e.g., cleaning, security, air conditioning, after-hours fees) and negotiate to remove any components that are not applicable or used.

– Leverage market downturns for better deals: During a real estate market slowdown, landlords are often more flexible with pricing and incentives to retain or attract tenants. Businesses can use this opportunity to negotiate better rental terms or additional benefits.

– Document all agreements in writing: All negotiated terms – such as rent-free periods or service charge reductions – should be clearly recorded in the lease or its appendices to avoid future disputes. Ensure these clauses are reviewed by a legal expert.

To negotiate effectively, businesses should prepare thoroughly, understand the market well, and maintain a professional yet flexible attitude. This strategy not only helps reduce costs but also builds a good relationship with the landlord, ensuring smooth office operations in the long term.

“Maison Office helps businesses find office in Vietnam while optimizing total rental costs and avoiding unexpected expenses.” 

3.4 Research the market before leasing

Market research on office spaces is a crucial step that helps businesses gain an overall understanding of rental rates, service quality, and common leasing conditions in their desired area. Knowing similar buildings allows businesses to accurately assess the value of lease proposals, thereby avoiding being overcharged or accepting unfavorable terms.

At the same time, with comprehensive market information, businesses will be more confident during negotiations, gaining leverage to request incentives, discounts, or more flexible terms from landlords. This approach also helps minimize financial risks and ensures the selection of office space that fits both the budget and operational needs of the business.

Don’t forget to seek feedback from other businesses currently leasing in the building, check reviews on platforms, or consult real estate advisory firms. This will provide practical information about service quality, additional fees, landlord attitude, and other potential issues. Such data is crucial for businesses to gain an objective view and make more informed office leasing decisions.

3.5 Importance of legal review and bilingual contracts

Legal review of office lease agreements and the use of bilingual contracts are critical in avoiding hidden costs office in Vietnam – especially for foreign companies. An experienced real estate lawyer or legal advisor can identify vague or unfavorable terms in the lease and suggest revisions to minimize costs. This process also clarifies each party’s responsibilities, helping to prevent future disputes.

For foreign businesses, a bilingual contract (in Vietnamese and English) is essential to avoid misunderstandings due to language barriers. While the Vietnamese version holds legal weight, the English version ensures that all involved parties fully understand the agreement. Both versions should be reviewed by legal experts to ensure consistency and legal validity.

Operating an office in Vietnam offers numerous opportunities but also comes with potential hidden costs – from overtime usage fees, setup expenses to make-good and reinstatement charges. Identifying and effectively managing these hidden costs office in Vietnam enables businesses to optimize their budgets, avoid financial surprises, and ensure sustainable growth in this dynamic market.

1. Is Notarization Required for Office Lease Agreements?

Notarizing an office lease agreement is not always mandatory. It depends on several factors, including the contracting parties, the intended use of the property, the lease duration, and the type of asset being leased.

According to the 2015 Civil Code of Vietnam, lease agreements – including those for housing or office space – generally do not require notarization unless specifically mandated by law. In most cases, the parties may enter into a written agreement without notarization.

However, notarization becomes mandatory in certain situations, particularly when:

• The lease term is six months or longer
• The lessor is an individual or household
• The leased property is a residential unit (as governed by the Housing Law 2014)
• The lease agreement must be submitted to a state agency (e.g., the Department of Planning and Investment) for business registration purposes

Conversely, when leasing office space from licensed real estate businesses or commercial building developers, notarization is usually not required, as the legal status of the property is already established and the lease contract is signed and sealed by authorized legal entities.

2. Legal Regulations on Notarization of Office Lease Agreements

Whether an office lease agreement requires notarization must be assessed based on current legal provisions. Three key legal frameworks govern this matter:

2.1 Civil Code 2005 and 2015

According to Article 492 of the 2005 Civil Code, lease agreements for residential property with a term of six months or more must be made in writing and notarized or certified.

However, this provision was revised in the 2015 Civil Code, providing greater flexibility:

“A lease contract shall be established based on the parties’ agreement and is not required to be notarized, unless otherwise provided by law.” 

This allows the involved parties to decide the contract form themselves – except where a specific sectoral law imposes mandatory notarization.

2.2 Housing Law 2014 (Articles 122 & 124)

Article 122 stipulates that a residential lease agreement must be made in writing, including in cases where the property is used as an office.

Article 124 further provides that if one party is an individual and the lease term is six months or more, the contract must be notarized or certified, unless otherwise agreed by the parties or governed by another specific law.

Important Note: If a business leases a residential property from an individual (not a real estate company) to use as its registered office, notarization is required to legalize the company address for business registration purposes.

2.3 Law on Notarization 2014 (Articles 4 & 42)

Article 4 affirms that notarization is the act of a notary public certifying the legality of civil contracts and transactions, ensuring they do not violate the law or social ethics.

Article 42 stipulates that notarization of house lease contracts (categorized under real estate transactions) must be performed at licensed notarial practice organizations.

This highlights that when an office lease agreement falls under a case requiring notarization, the notary is responsible for reviewing all legal documents, including ownership certificates and the full contents of the contract, to ensure its compliance with legal regulations.

3. When Is Notarization Mandatory for Office Lease Agreements?

Not all office lease agreements require notarization. However, according to the Housing Law 2014, the Civil Code 2015, and practical application, the following cases must be notarized to ensure legal enforceability:

3.1 Lease term of six months or more, and the lessor is an individual

When the lease duration is six months or longer and the landlord is not a legal entity (i.e., an individual or household), notarization is mandatory to ensure the contract’s enforceability.

Without notarization, the agreement may be declared invalid in form by the court in the event of a dispute.

3.2 The leased property is residential (under the Housing Law 2014)

Even if used as an office, leasing a residential property owned by an individual or household is still governed by the Housing Law, which requires the contract to be notarized.

3.3 The lease contract is used for legal or compliance purposes

Some authorities — such as the Department of Planning and Investment, banks, or audit partners — may require a notarized lease agreement to validate the legal company address or the tenant’s legal standing.

3.4 Either party requests notarization for stronger legal assurance

Even when not legally required, either party – especially corporate tenants or professional landlords – may request notarization to formalize the agreement and minimize potential legal risks.

4. When Is Notarization Not Required for Office Lease Agreements?

Although an office lease agreement is an important legal document, not all cases require notarization. According to current regulations, the following common scenarios do not mandate notarization:

4.1 Lease Agreement Between Two Legal Entities (Business-to-Business)

When both the landlord and the tenant are legal entities (registered businesses with company seals), the lease agreement is legally valid with signatures and company stamps only.

This is the most common structure in Grade A and Grade B commercial office buildings, where landlords or property managers are licensed real estate companies.

4.2 Lease Term of Less Than Six Months

According to the Housing Law 2014, lease agreements with a term of less than six months do not require notarization, even if the landlord is an individual.

However, it is still advisable to draft a written agreement with both parties’ signatures as legal proof in case of disputes.

4.3 Leasing Office Space in Legally Registered Commercial Buildings

In professionally managed buildings (by reputable developers or property management firms), standardized lease agreements are often provided. In such cases, notarization is not required, as the legal framework is already well established.

The agreement becomes legally effective when it includes all key elements: company details, leased area, term, rental fees, and valid signatures and stamps from both parties.

4.4 Short-Term, Flexible, or Serviced Office Leases

For coworking spaces, shared offices, or serviced office models, lease contracts are typically not notarized due to their short-term nature, fixed pricing, and flexible terms.

Note: Even when notarization is not required, businesses should always ensure that the lease agreement is in writing, with complete information, clearly defined terms, and signatures from authorized representatives to avoid future legal disputes.

5. What Is the Notarization Procedure for an Office Lease Agreement?

To ensure the legal enforceability of an office lease agreement in cases where notarization is required, both parties must complete the notarization process at a licensed public or private notary office. Below is a step-by-step overview and a list of the required documents:

Step 1: Prepare All Required Legal Documents

From the landlord (lessor):

• Certificate of land use rights and property ownership (Pink Book/Red Book)
• Personal ID: Citizen ID/passport and household registration (if individual)
• Business license and power of attorney for the signatory (if a legal entity)

From the tenant (lessee):

• Citizen ID/passport of the legal representative
• Business registration certificate (if the tenant is a company)
• Power of attorney or appointment decision of the signatory

Step 2: Draft the Lease Agreement

The lease agreement can be drafted by either party or with the assistance of the notary office.

Key elements of the lease should include:

• Description of the leased property (address, size, intended use)
• Lease term
• Rental price and payment method
• Rights and obligations of both parties
• Termination conditions and dispute resolution terms

–> Maison Office can provide legally compliant lease templates tailored to asset types and parties involved. 

Step 3: Submit Documents at the Notary Office

• Both parties (or authorized representatives) must visit a notary office near the leased property.
• The notary will verify the documentation and assess the legality of the transaction.
• If all documents are valid, notarization is typically completed within 1–3 working days.

Step 4: Sign and Receive the Notarized Lease Agreement

• Both parties sign the lease agreement in the presence of the notary.
• The notary returns the original and notarized copies with official seals.
• Multiple notarized copies can be requested for use with relevant institutions (e.g., banks, DPI, auditors).

Notarization Fees for Office Lease Agreements

• Fees are calculated as a percentage of the contract value:
• Under VND 50 million: approx. VND 50,000 – 100,000
• VND 50 million – 100 million: 0.1% – 0.3% of contract value
• Above VND 100 million: based on the official Notarization Fee Schedule

Additional fees may apply for photocopying, certified copies, and file storage (typically VND 100,000 – 300,000, depending on the notary office). 

6. Legal Risks of Not Notarizing an Office Lease Agreement

Failing to notarize an office lease agreement in cases where it is legally required can lead to serious legal consequences – directly affecting the tenant’s rights and interests, especially for businesses.

6.1 The Lease May Be Declared Legally Invalid

• Courts may rule the lease null and void due to improper legal form.
• All contractual terms and obligations become unenforceable.
• The tenant loses the right to negotiate or claim compensation in case of disputes.

6.2 Inability to Register Business Address

• The Business Registration Office may reject the lease if it is not notarized.
• This affects company incorporation, bank account opening, and applying for business licenses.
• Can cause delays in launching business operations.

6.3 Limited Legal Protection in Disputes

• No official legal evidence regarding lease term, rental price, or agreed conditions.
• The contract may not be recognized as valid evidence in court or by government agencies.
• Increases the risk of sudden termination and forced eviction by the landlord.

6.4 Not Accepted in Other Legal Transactions

• Cannot be used as collateral in bank loan applications.
• Not recognized as a legitimate expense during tax finalization.
• Not accepted in audits, mergers, acquisitions, or internal reviews.

7. Frequently Asked Questions (FAQs)

7.1 Is notarization required when leasing from an individual?

Yes. If the landlord is an individual and the lease term is six months or longer, notarization is mandatory under the Housing Law 2014 to ensure legal enforceability.

7.2 How much does it cost to notarize an office lease agreement?

Notarization fees typically range from 0.1% to 0.3% of the contract value, plus administrative costs (certified copies, file storage, etc.). For a lease valued at VND 500 million, the notarization fee may range from VND 500,000 to 1,500,000.

7.3 Will an office lease agreement be invalid without notarization?

Possibly. If the lease falls under a category that requires notarization and the parties fail to comply, the contract may be declared invalid due to formality issues in the event of a legal dispute.

7.4 Can office lease agreements be notarized online?

Currently, Vietnam does not allow remote or fully online notarization. Both parties must be physically present at the notary office to sign and verify the agreement.

7.5 Is notarization required for serviced office leases?

Generally, no. Flexible leasing models such as serviced offices, coworking spaces, or short-term agreements under six months do not require notarization, unless the address is used for business registration. However, a clear written contract is still necessary.

1. What Is an Overtime Office Usage Fee?

An Overtime Fee (OT Fee) is a surcharge that office tenants must pay when using the office space outside the building’s official working hours. Typically, office buildings in Vietnam operate from 8:00 AM to 6:00 PM, Monday to Saturday, unless otherwise specified in the lease agreement.

This fee is primarily intended to cover the additional operational costs, including electricity, air conditioning, lighting, security, and night-shift personnel required during after-hours usage.

At Grade A and B office buildings, standard free working hours are typically from 8:00 AM to 6:00 PM (Monday to Friday) and 8:00 AM to 12:00 PM (Saturday).
If a company needs to operate during evenings, weekends, or public holidays, the extra hours will be considered overtime and subject to additional charges.

In contrast, some Grade C buildings or those equipped with independent VRV/VRF air-conditioning systems may offer free after-hours access. However, this is often limited in terms of equipment usage or designated areas.

2. When Do Overtime Office Usage Fees Apply?

Overtime fees are incurred when a business uses the office outside the standard working hours defined by the building’s management. Below are the most common scenarios where tenants are typically charged overtime fees:

2.1 Evening Shifts or Late-Night Operations (Shift 2 – Shift 3)

Applies to companies operating in shifts—such as data centers, global customer service hubs, tech startups, logistics, or production teams. When working past 6:00 PM, systems like air conditioning, lighting, and elevators must be activated additionally, resulting in overtime charges.

2.2 Weekend or Public Holiday Operations

Most office buildings only offer free access on Saturday mornings. If tenants need to use the office throughout Saturday, on Sundays, or public holidays, specific overtime rates will apply based on time slots.

2.3 Meetings, Trainings, or Events Outside Working Hours

When companies hold internal meetings, staff training, or client receptions outside of regular hours, charges for central HVAC, lighting, security, and building services may be added accordingly.

2.4 24/7 Operational Needs

For businesses with flexible or cross-time-zone operations, choosing a 24/7-access office upfront is essential. Otherwise, tenants may incur a fixed monthly overtime fee, which should be carefully reviewed during lease negotiations.

2.5 Using Central Air-Conditioning Outside Business Hours

In buildings with central HVAC systems, air-conditioning is not automatically available after hours. Companies must register in advance and pay overtime fees by the hour or in fixed blocks when extended cooling is required.

Note: Some serviced offices or 24/7 office models may already include these fees in the rent. However, it’s crucial to review the lease and service level agreement (SLA) thoroughly to avoid unexpected costs. 

3. How Overtime Fees Are Calculated in Office Buildings

Depending on the building grade, technical systems, and operational policies, overtime office usage fees can be calculated using different methods. Below are the three most common pricing models that businesses should understand when evaluating long-term operating costs:

3.1 Fixed Package per Office Unit

Overtime fees are charged at a fixed hourly rate per office unit, regardless of the actual floor area or equipment used.

• Typical usage: Small offices or Grade B/C buildings with simple infrastructure
• Reference rate: VND 300,000 – 1,000,000/hour/office
• Advantages: Easy to estimate, not calculated by square meter or specific utilities
• Limitations: Tenants must pay for the entire unit, even if only a portion is used

→ Suitable for businesses needing short daily overtime (e.g. 1–2 hours/day)

3.2 Calculated by Leased Floor Area

This method is common in Grade A buildings or those with central HVAC and BMS systems.

• Formula: Overtime Fee (VND) = Leased Area (m²) × OT Rate (VND/m²/hour)
• Typical rate: VND 80,000 – 180,000/m²/hour, depending on building grade and location
• Advantages: Transparent and scalable—ideal for large office tenants
• Limitations: Can be costly for frequent overtime use or large floorplates

→ Note: Many buildings enforce minimum charge durations (e.g. 2 hours per request)

3.3 Based on Equipment Usage

Some buildings calculate overtime based on individual equipment usage, especially in offices with zoned VRV/VRF air-conditioning systems or separate metering.

• HVAC: Charged per hour per A/C unit or by usage block
• Elevators: Fees apply if lifts are turned off after hours and need manual reactivation
• Electricity & lighting: Charged based on actual kWh consumption or a fixed standby power package

→ Typically used in smart buildings with zone-level equipment control per floor or unit

Important Note: Some buildings combine multiple pricing methods – e.g., a fixed fee for HVAC plus per-square-meter charges for total usage. Always review the lease agreement and service level appendices (SLA) carefully to avoid unexpected overtime charges.

4. Reference Overtime Fee Rates – Grade A, B, and C Office Buildings

Overtime usage fees in leased office buildings vary depending on factors such as air-conditioning systems, free working hours, management standards, and building grade.
The following is a benchmark fee range compiled by Maison Office, based on data from over 500 actual lease transactions:

Key Factors Influencing Overtime Charges

• Air-conditioning system: Central HVAC systems often charge based on fixed time blocks, while VRV/VRF systems allow for more flexible usage and control.
• Duration of use: Overtime fees may be calculated per minimum time blocks (usually 1–2 hours) or as a fixed monthly package depending on the building’s policy.
• Building scale & occupancy: Larger buildings with multiple tenants tend to offer clearer, more transparent overtime pricing policies.
• Industry-specific support: Some buildings prioritize tech firms and startups by offering more flexible 24/7 access or customized overtime packages.

Real-World Examples from Maison Office 

Note: The above rates are for reference only. They may vary depending on the time, leased area, negotiation capability, and assistance from office leasing consultants. 

5. Specific Characteristics & Considerations by Building Grade

Each office building grade (A, B, C) operates with distinct management systems and after-hours charging policies. Understanding these differences enables businesses to select office spaces that align with their flexible working needs and helps avoid unnecessary operational costs.

5.1 Grade A Office Buildings

Key Features:

• Professionally managed by top firms (e.g., Savills, CBRE, JLL)
• Equipped with central HVAC systems, BMS, and high-speed elevators
• 24/7 security and international-standard operations

After-Hours Notes:

• Higher overtime fees due to activation of full technical systems
• Charges typically calculated by leased area (VND/m²/hour), often requiring advance registration
• Some buildings apply a minimum 2-hour block, regardless of actual usage

→ Recommendation: Suitable for businesses seeking a prestigious brand image but do not frequently require extended working hours.

5.2 Grade B Office Buildings

Key Features:

• Well-maintained facilities, often using VRV air conditioning
• Locally or internally managed, allowing more flexible lease negotiations
• Reasonable rental and overtime rates

After-Hours Notes:

• Overtime fees may be calculated per office unit (flat rate) or by area
• Many buildings offer flexibility for startups or tech firms
• Some allow monthly overtime packages with fixed terms

→ Recommendation: Ideal for mid-sized businesses with shift-based or flexible working hours.

5.3 Grade C Office Buildings

Key Features:

• Basic technical infrastructure, non-centralized systems
• Directly managed, less bureaucratic
• Typically equipped with standalone AC units instead of central HVAC

After-Hours Notes:

• Many buildings do not charge overtime if using independent AC systems
• However, it’s essential to review policies on elevator use, security, and lighting after hours
• Some buildings do not support weekend or holiday operations

→ Recommendation: Best for small to medium-sized companies aiming for strict cost control.

Expert Tip from Maison Office: When evaluating office spaces, don’t compare only the rental rate – always request a detailed quote on overtime fees and a sample Service Level Agreement (SLA). Negotiating overtime conditions should be part of the office shortlisting phase, not an afterthought post-contract.

6. Tips for Negotiating Overtime Fees

Overtime charges can become a significant hidden cost, especially for businesses requiring flexible work schedules. Below are effective negotiation strategies to help reduce these costs when leasing office space:

Negotiate during the initial lease discussion 

• Request the full overtime pricing schedule and Service Level Agreement (SLA) before signing any lease.
• Avoid scenarios where overtime fees are not clearly outlined in the main lease but still enforced after move-in.

Propose fixed free overtime allowances

• Suggest packages such as 2 hours per day or 15–20 hours per month at no additional charge.
• Ideal for businesses with occasional late hours but not on fixed daily blocks.

Benchmark and compare multiple buildings 

• Use quotes from similar-grade buildings as leverage in negotiations.
• Some buildings (e.g., Cobi Tower, Lapen Asset, G8 Tower) offer flexible or waived overtime policies.

Leverage a professional advisor like Maison Office 

• Maison Office assists clients in negotiating complex lease terms.
• We provide transparent price comparisons across options.
• Our guidance helps avoid hidden post-contract costs.

Negotiate an all-inclusive rental package 

• Some businesses can negotiate a fixed rental rate that includes overtime usage.
• This approach suits companies operating at night or on a 24/7 schedule.

Note: Businesses leasing over 300 m² typically have stronger leverage to negotiate reduced or waived overtime fees compared to those leasing smaller areas. 

7. Frequently Asked Questions (FAQs) about Overtime Fees

7.1 Is overtime charged for working on weekends?

Yes. Most office buildings only allow free usage on Saturday mornings. If your business operates full-day Saturdays, Sundays, or during public holidays, overtime fees will apply depending on the duration and required technical systems.

7.2 Should we choose a 24/7 office instead of paying overtime fees?

Yes – if your team frequently works beyond regular business hours. 24/7 or all-inclusive offices typically cover overtime operating costs, helping you save on expenses and gain full flexibility in working hours.

7.3 Are overtime fees invoiced?

Yes. Overtime charges are legitimate operational fees and can be invoiced monthly with VAT, subject to each building’s management or operating company policy.

7.4 Can we negotiate for free overtime hours in the lease agreement?

Absolutely. You can negotiate packages such as 10–20 free overtime hours per month, or waived fees during the first 3–6 months. This should be negotiated before signing the final lease.

7.5 If we don’t use air conditioning after hours, will we still be charged?

It depends on the building. Properties with VRV systems or independent A/C per floor often do not charge overtime if the systems are not activated. However, it’s essential to confirm this in the Service Level Agreement (SLA).

1. Overview of Serviced Offices and Coworking Spaces

1.1 What Is a Serviced Office?

A Serviced Office is a fully furnished and equipped private office space that comes with complete management and support services, allowing businesses to start working immediately without upfront setup investment. This model is typically located within professional office buildings, offering dedicated, enclosed spaces ranging from 10 to 200 square meters, ideal for teams of 2 to several dozen employees. 

In addition to private workspace, businesses also gain access to shared amenities such as meeting rooms, pantry, reception services, high-speed internet, printing, and IT support. Lease terms are flexible – available by day, month, or quarter depending on business needs.

• Serviced Offices are best suited for: representative offices, foreign companies, and SMEs seeking a professional image without spending time or resources on office management.

1.2 What Is a Coworking Space?

A Coworking Space is a shared, open-plan working environment used by multiple individuals and organizations. Unlike serviced offices, which emphasize privacy, coworking spaces foster a dynamic, collaborative atmosphere and a sense of community connection.

Coworking spaces offer various workspace options such as hot desks, dedicated desks, and small private offices – all at a significantly lower cost compared to traditional office leases.
Tenants also enjoy access to shared amenities including Wi-Fi, printers, lounge areas, and networking events.

• Coworking spaces are ideal for: freelancers, startups, project-based teams, small businesses, or short-term groups looking to expand their network and optimize their budget.

2. Benefits of Serviced Offices for Businesses

Serviced Offices are an ideal solution for modern companies seeking a professional, flexible, and cost-effective workspace. This model not only helps businesses save time on setup, but also enhances brand image and streamlines operations from day one.

• No setup time required: No need for construction or installation. Everything—furniture, internet, meeting rooms—is ready to use.
• Cost-efficient leasing & operations: One all-inclusive fee covers electricity, water, reception, cleaning, maintenance, and more.
• Professional brand image: Located in modern office buildings, leaving a strong impression on clients and partners.
• Scalable to your team size: Easily adjust space as your company grows—perfect for startups and expanding firms alike.
• Full-service support: Reception, IT, guest handling, pantry, and community events – allowing your team to focus on core business.

3. Key Differences Between Serviced Offices and Coworking Spaces

4. When Should You Choose a Serviced Office vs. a Coworking Space?

Choosing between a Serviced Office and a Coworking Space depends on your business size, budget, and operational needs. Below are key recommendations to help you determine the most suitable model:

Opt for a Serviced Office if: 

• Your business requires a private, quiet, and secure workspace
• You want to maintain a professional image for client meetings and partnerships
• You need a ready-to-use setup without investing time and cost into infrastructure
• You prefer all-inclusive services such as reception, meeting rooms, IT support, maintenance
• Your team has 3 – 50 members operating steadily from a fixed location

Opt for a Coworking Space if:

• You’re a freelancer, small startup, or project team working short-term
• You’re looking for low-cost and flexible leasing (daily/weekly/monthly)
• You want to expand your network through community events and industry meetups
• You don’t require a private space or high-level confidentiality
• You move frequently or need temporary office space in different areas

Note: Major operators like WeWork, Toong, CirCo, Dreamplex now offer both Serviced Office and Coworking Space under one roof, making it easy for businesses to scale or switch formats as needed. 

5. The Rise of Flexible Workspaces in Vietnam

Flexible workspaces – including Serviced Offices and Coworking Spaces – are becoming a preferred choice for many businesses in Vietnam, especially in major markets like Ho Chi Minh City and Hanoi.

5.1 Post-pandemic Growth & the Shift to Hybrid Work

As more companies adopt hybrid working models, demand for short-term leases, all-inclusive offices, and flexible services based on team size has significantly increased.

According to Maison Office, the total leased area of flexible workspaces in Ho Chi Minh City grew by over 35% in 2024, with key operators such as Toong, The Executive Centre, Regus, and Dreamplex capturing the largest market share.

5.2 Startups & Foreign Enterprises Driving Demand

Startups, tech companies, and newly established foreign enterprises in Vietnam often prioritize serviced offices to reduce initial setup costs and accelerate operations.

Example cases include:Cloudstorm VN (Canada), POC Pharma (Vietnam), Intrepid (Singapore) All chose serviced offices during their initial growth phase.

5.3 Premium Buildings Integrating Flexible Workspaces

More Grade A buildings are now incorporating coworking zones and serviced office floors to meet growing demand. Notable examples include: E.Town Central (District 4, HCMC), Cobi Tower (District 7, HCMC), Capital Tower (Hanoi)

5.4 Flexible Workspaces Poised for Strong Growth

With competitive pricing, faster setup, and high adaptability, flexible workspaces are expected to continue booming over the next 2–3 years. Growth will be particularly strong in districts with high startup and FDI density, such as: Thu Duc City (HCMC), Cau Giay District (Hanoi), Tan Binh District (HCMC),…

6. Frequently Asked Questions about Serviced Offices & Coworking Spaces

6.1 Can coworking spaces be rented by the hour?

Yes. Most coworking spaces today offer flexible rental options by the hour, day, or month. This is ideal for freelancers, short-term project teams, or remote workers needing a professional environment for a limited time.

6.2 Do serviced offices support business registration?

Yes. Many serviced office providers assist tenants in registering their business license and legal address, which is especially helpful for representative offices or newly established companies.

6.3 Are serviced offices suitable for foreign companies entering Vietnam?

Absolutely. Serviced offices significantly reduce setup time, streamline administrative processes, and provide full operational support. This makes them a perfect solution for FDI enterprises, representative offices, or businesses testing the Vietnamese market.

With experience advising over 500 businesses in Hanoi and Ho Chi Minh City, Maison Office has developed this comprehensive guide to help you thoroughly assess office buildings – from location, floor area, amenities, and tenant community to lease terms – so you can make the most accurate and cost-effective leasing decision.

1. Quick Checklist for Evaluating Office Buildings During Site Visits

Viewing and evaluating an office space prior to leasing is not just a routine site survey – it is a decisive factor that enables businesses to choose a suitable workspace, optimize costs, and ensure long-term operational efficiency.

Key evaluation criteria can be divided into three main categories:

• General Overview of the Office Building
• Characteristics of the Leased Space
• Building Amenities and Services

1.1 General Overview of the Office Building for Lease

Expert Tip from Maison Office: Ask for the typical floor plan, list of existing tenants, and scale of operations on each floor to assess the overall stability and professional environment of the building.

1.2 Characteristics of the Leased Space

1.3 Building Amenities and Services

Expert Tip from Maison Office: A well-equipped office building that offers both core operational amenities and expanded lifestyle facilities helps businesses retain talent more effectively while also optimizing operating costs and brand positioning.

2. Why Is Office Site Visit and Evaluation a Must Before Leasing

Conducting a thorough inspection and evaluation of the building is a critical step that enables businesses to select an office that aligns with their operational model, optimizes operating costs, and minimizes legal risks.

2.1 Choosing the Right Space for Your Business Model

Each business operates with its own workflow, industry requirements, and staffing model. A site inspection helps clarify whether:

• The leased area meets the actual usage demand
• The floor layout fits the team’s functional divisions
• Ceiling height, lighting, and views ensure a productive work environment

Example: Tech companies or startups often require open layouts, high ceilings, and natural light, while finance firms prioritize dedicated reception areas and private meeting rooms. 

2.2 Avoiding Hidden Costs During Occupancy

Many costs are not listed in the initial quoted rental rate and can only be verified through an on-site evaluation, such as:

• Parking fees, after-hours air conditioning charges, separate electricity/water billing
• “Grossed-up” leased areas that include unusable space

2.3 Enhancing Corporate Image & Employee Experience

A building with a modern image, a professional tenant community, and well-managed services will:

• Elevate brand perception among partners and clients
• Create a professional work environment that helps retain talent
• Leave a strong impression on visitors and business partners during meetings

Example: Buildings like Saigon Centre, Lim Tower, and Etown Central are frequently chosen by large corporations for their premium image and service standards. 

2.4 Building a Strong Foundation for Favorable Lease Negotiation

Once you clearly understand the strengths and weaknesses of a building through site visits, you can:

• Negotiate favorable terms such as rent-free periods and fit-out timelines
• Request rent adjustments based on technical or utility issues
• Anticipate legal risks and request clauses that protect your business interests

According to Maison Office:Evaluating and inspecting an office before signing a lease is not just a procedural step – it is a strategic move that supports your company’s long-term operations, helps optimize costs, reduce risks, and secure the most suitable workspace.

3. Key Considerations Before Signing an Office Lease Agreement

An office lease is a legally binding contract with long-term commitments – typically lasting from 2 to 5 years, and in some cases up to 10 years for large enterprises.
Therefore, reviewing each clause carefully before signing is essential to avoid future disputes and unexpected costs.

Expert Tip from Maison Office: Before signing the lease, request a sample contract from the landlord at least 3 to 5 days in advance, and consult with in-house legal counsel or a professional advisor to identify and avoid unfavorable hidden clauses. 

4. Frequently Asked Questions About Office Site Visits & Evaluation

4.1 What’s the best time of day to inspect an office space?

You should visit during peak hours – morning (8–9 AM) or late afternoon (5–6 PM) – to evaluate real traffic conditions, elevator wait times, parking availability, and pedestrian access around the building.

4.2 Can I visit multiple buildings on the same day?

It’s advisable to limit each trip to 2–3 buildings max to ensure sufficient time for thorough comparison and detailed notes on location, layout, and surroundings. Avoid rushing through visits, which can lead to confusion or overlooked details.

4.3 How do I estimate whether the building’s space fits my needs?

• Use a benchmark of 5–6 sqm/person, depending on your workspace model
• Consider space for pantry, reception, meeting rooms, etc.
• Confirm the net area (usable space) instead of relying only on gross figures in the lease
• Request a detailed layout and confirm whether it’s calculated Net or Gross, as it impacts total rental cost

4.4 What if I need to change the leased office area after 6 months?

Prioritize buildings that allow for modular or flexible expansion in the future. Some landlords permit space adjustments if notified in advance.

4.5 Looking for a trusted partner to assist with office search, comparison, and lease negotiation?

Maison Office is a professional office leasing consultancy based in Hanoi and Ho Chi Minh City, dedicated to helping businesses find and lease the right space efficiently.
We support you with:

• Consulting to select space tailored to your needs and growth
• Arranging site visits and providing side-by-side building comparisons
• Reviewing lease terms and advising on favorable negotiations
• Recommending fit-out contractors and assisting with handover procedures

Contact Maison Office to receive free consultation and support in selecting the most suitable workspace and rental solution for your business.