Reduce 200 million VND in fixed costs each year without shrinking your scale – A real story from a Kovills client.
In an environment of rising operational costs, many Vietnamese businesses still “accept” high office rental rates without realizing the significant potential for optimization. They often assume that saving money requires moving to an older building, a less central location, or accepting cramped spaces. However, the reality is completely different: Kovills – a leading office leasing consultancy in Hanoi and Ho Chi Minh City – helped a technology company with around 100 employees save up to 200 million VND per year through just 3 smart strategic changes, without compromising work environment quality or brand image.
Real Case Study: 100-Person Tech Company – Saving 200 Million VND/Year
Our client is a fast-growing technology company that originally leased approximately 1,000 m² in a Grade B office building in central Hanoi at a relatively high rental rate. After partnering with Kovills, they not only retained their prime location but also significantly reduced their total office occupancy costs. Here are the 3 key changes implemented by Kovills’ expert team:
- Optimizing “Dead” Space – Switching to an Efficient Open Space Model Instead of the traditional layout with separate rooms (which wastes corridors, partitions, and unused areas), Kovills advised a complete redesign using a modern Open Space style. Result: The company maintained a comfortable, spacious working environment for 100 employees but only needed 850 m² instead of 1,000 m². → Immediate savings: A 15% reduction in leased area → equivalent to tens of millions VND per year just on base rent.
- Negotiating “Net Rent” (Pure Rental Rate) – Breaking Down Hidden Costs Many current office leases use the Gross Rent model (all-inclusive rent), which bundles service charges, corridor electricity, overtime fees, etc. Kovills thoroughly analyzed these items and negotiated directly with the building owner. Result: The landlord agreed to switch to the Net Rent model and reduce the rate by 2 USD/m² for a long-term contract (typically 3–5 years). With 850 m², this saving amounted to hundreds of millions VND over the lease term.
- Maximizing Fit-out Incentives – Extending Free Fit-out Period When relocating, fit-out costs (interior finishing and construction) represent a major upfront investment. Kovills successfully negotiated to extend the free construction period from the standard 30 days to 60 days. This gave the company more time to complete the space without paying additional rent during the setup phase → immediate cash savings upon move-in.
Final Outcome: 200 Million VND Saved Annually – Without Sacrificing Quality
After implementing these 3 strategies, the client’s total office occupancy costs (including base rent, service fees, indirect fit-out expenses, etc.) dropped sharply by approximately 200 million VND per year, equivalent to more than 16 million VND per month. More importantly, they retained their central location, modern workspace, and high employee satisfaction with the new environment.
Advice from Kovills: Don’t Just Look at the Listed Rental Price!
Many businesses only compare the rental price per m² on the market, but the real decisive figure is the Total Occupancy Cost. This includes:
- Actual usable area required (not the nominal leased area)
- Service charges, utilities, overtime fees
- Fit-out costs and free period incentives
- Long-term contract terms, rent escalation clauses…
With over 10 years of experience in office leasing consultancy in Hanoi and Ho Chi Minh City, Kovills is committed to optimizing every aspect for your business—from location search to transparent contract negotiation—delivering maximum financial benefits.
Are you currently leasing an office and wondering how much you could save? Contact Kovills now for free consultation and detailed quotation:
- Hotline: 0982 405 823
- Email: tuanle.kovills@gmail.com
- Website: kovills.com
- Address: Savina Building, No. 44 Trang Tien Street, Hoan Kiem Ward, Hanoi
Kovills – Smart office leasing solutions that save time and costs for Vietnamese businesses! Contact us today to receive exclusive offers on office rentals in Hanoi or Ho Chi Minh City.
