RePlus - Vietnamese businesses taking virtual offices to the global stage.

DNHN - Vu Thi Ngoc Phuong - CEO of Replus Joint Stock Company believes that a virtual office is the key to 'untangling the knot' of initial challenges for daring businesses to step out of their comfort zones and build aspirations for Vietnam's global image.

The journey of a thousand miles begins with the first step. With the desire and deep belief that Vietnamese businesses will step onto the global stage, joining hands to conquer the international market.

In the fiercely competitive international market, it is not easy for a Vietnamese business to take the lead in going global and making a mark. However, Replus, with its virtual office model, is shining on the global business map as an exception, serving as evidence that with vision, courage, and ambition, all challenges can be overcome.

Opening the international market marks a decade of continuous brilliance.

Recently, Replus proudly became one of the pioneering Vietnamese businesses, inaugurating its first international office headquarters in Sydney, Australia. This event not only marks the celebration of its 10th anniversary but is also a significant milestone in showcasing the substantial growth and ambitious progress of a Vietnamese business on its development journey. Replus continues to expand its scale, bringing a special advantage to its customers with a network of virtual offices, and co-working spaces throughout Vietnam and internationally, as an unwavering commitment to consistently delivering the best products and amenities to customers, helping them become leading brands in the industry.

"Is choosing to expand into foreign markets at this time a risky endeavor?" - Replus Founder, Ms. Vu Thi Ngoc Phuong shares, businesses should not be afraid when the market is in decline; instead, they should be courageous in facing challenges and overcoming their fears.

Strong leadership and intelligent breakthrough strategies, along with a long-term vision, are the key factors in taking a Vietnamese business onto the global stage. Therefore, on the very first day of its opening, more than 10 Vietnamese companies from various fields "joined hands" and signed contracts to lease Replus' virtual office in Sydney. From here, Vietnam has more companies and multinational corporations with a 'Vietnamese passport' making their mark on the world economic map. Ms. Vu believes, "While domestic businesses are often fearful and uncertain, waiting for opportunities, some businesses see opportunities even when the market is at its lowest and they prepare several steps to seize those opportunities when the market rises."

One economic challenge when setting up offices in other countries is a barrier for small and medium-sized Vietnamese businesses. They hesitate to expand into the global market due to the high costs involved. According to research by CBRE and Savills, office rental prices in Hong Kong, Singapore, Tokyo, Australia, and other locations are among the top 10 highest in the Asian region, with average prices ranging from $123/m2 to $242/m2.

Replus brings the virtual office model to the world in Australia. (translate)

Understanding the difficulties faced by Vietnamese businesses, Replus maintains its rental prices for virtual offices at just 85 – 125 AUD per month, right in the premium buildings in the center of Sydney. This pricing is equivalent to what you would find in the Vietnamese market, which has always been Replus' competitive advantage in terms of cost. They stand by their motto: "10 years of unchanged prices, continuously increasing amenities."

Mr. Nguyen Minh Hoang, CEO of T&A Real Estate Investment Company, specializing in the real estate business, stated that, 'Our goal is to build a Vietnamese brand presence worldwide, but the biggest obstacle is the cost of office rentals and operational staff. Fortunately, we came across Replus's virtual office model, and I highly appreciate the support and professional services provided by the Replus team in Vietnam and Australia. Opening our office has helped us achieve impressive numbers of customers and brand recognition with costs only 1/10 of traditional office rentals.'

On the occasion of the company's 10th anniversary and the headquarters opening, Replus has also introduced several promotional policies and incentives for customers renting offices across its entire system, which includes 13 offices.

Virtual Offices - The Key to Success in Challenging Times

One of the key benefits of virtual offices is the ability to promote flexibility in the work model. Businesses are no longer constrained by the cost of physical workspace and can maximize their financial resources for other purposes. Additionally, the pre-designed virtual office model saves both resources and costs for businesses.

When starting her entrepreneurial journey, Ms. Vu Thi Ngoc Phuong chose a niche market to do business. Ten years ago, the concept of virtual offices was entirely new. How could startups and small companies afford office space in prime locations? Traditional office rentals were too expensive for their operations and production costs. Ms. Vu saw this as an opportunity and a future trend.

She invested her capital in this field, choosing to rent Grade A offices and providing accompanying services such as company establishment, tax identification numbers, tax reporting, legal consulting, with competitive costs starting from 295,000 VND per month. As a domestic company, Replus understands the desires and strategic business visions of each customer. After just 10 years of development, as of October 2023, Replus has expanded its scale with a network of 13 offices in strategic central locations in two countries worldwide. This allows customers to rent at one point but use the amenities associated with all Replus offices, including booking meeting rooms, workspaces, reception areas, office equipment, and more.

Choosing Australia as the launchpad to shape the Vietnamese brand with a ‘'Vietnamese passport'’.

While doing business, looking at their client list, which includes FDI companies and multinational corporations, Ms. Vu noticed that they rarely seem to physically occupy the offices they rent. She realized, 'It turns out they need a transaction address in a central location, both to establish credibility for their customers and to maintain their status, affirm the value of their brand... So why not help domestic customers expand into international markets by setting up virtual offices for transactions when they go global?'

Therefore, Replus didn't stop at domestic rentals. The female founder of Replus saw that if foreign companies could globalize and succeed, why shouldn't we dare to dream big like them and step out of our comfort zone to develop? Stepping out to learn from international businesses and bringing opportunities from foreign businesses to Vietnam contributes to affirming the commercialization of the Vietnamese economy on the international stage, which is highly encouraged for development.

In the context of the post-COVID market, with economic downturn, many businesses hesitated to take action and waited for an opportunity to recover. However, Ms. Vu thought that 'opportunity exists within danger,' and opportunities will be for those who dare to act and have the courage to go against the wind. Choosing Australia as the first steppingstone out of the 'comfort zone' has multiple reasons. Australia is close to Vietnam, has an open policy, and a robust legal system to protect businesses. Another interesting aspect is that it has a 'sharing' economy. Anything that can be shared, they incorporate into business, which reduces costs and conserves resources.

Not stopping at Australia, Replus will enter other markets like the United States, Canada, Japan, Singapore, and more in the near future.

In a crisis, there is opportunity, and the franchise model emerges.

In 2021 - 2022, during the COVID-19 pandemic, many businesses returned to their rented office spaces, and there was a significant surplus of vacant office space. According to a 2022 study by CBRE, there were times when office space exceeded demand by up to 5,000 square meters.

CEO Vu Thi Ngoc Phuong, on the other hand, saw a business opportunity for herself and landlords. She did so by offering a standardized model for virtual office rentals and developing a franchise model. With this approach, Replus could rapidly expand its office space while sharing some of the risks with landlords.

Ms. Vu believes that many landlords currently leave their spaces vacant, and if they manage them on their own, they lack the experience and customer base. However, by collaborating with us, they can share in the profits and risks. We have customers and property management expertise, while they have rental space. Therefore, the virtual office franchise model is attracting the interest and cooperation of many landlords.

It is estimated that small and medium-sized businesses or startups will be the primary target for this type of rental because the cost is only 1/10 of traditional office rentals.

Since 2000, the number of startups has been steadily increasing in Vietnam. The report "The Landscape of Innovation Startups in Vietnam 2019," by the Australian Trade and Investment Commission (Austrade), indicates that Vietnam ranks third in Southeast Asia in terms of the number of startup businesses. The startup ecosystem in Vietnam has developed through three phases: the first wave (2000 - 2006), the second wave (2007 - 2014), and the third wave (2015 to the present).

In the third wave of startups, specifically, the number of Vietnamese startup businesses has grown significantly. In 2012, there were only 400 startup businesses, but by 2018, there were over 4,000. Despite being affected by the pandemic, the number in 2022 still hovered around 4,000 startups. The ratio of startups in Vietnam is about 20 startups per 1 million people. This is an opportunity for the development of the virtual office business in Vietnam.

Ms. Vu hopes is to continue supporting and assisting more entrepreneurs. With affordable rental costs, she aims to provide them with the motivation to start and grow their businesses.

Thu Hien