Why Premium Gyms in Ho Chi Minh City Are Closing Despite Big Investments

Citigym will close its Van Hanh Mall outlet on Oct 1. The 6,000‑square‑metre gym pays about VND800 million a month in rent. The chain says the closure is part of a relocation and restructuring plan and is offering free membership upgrades to affected members.

Retail rents have jumped after the pandemic; Cushman & Wakefield reports 90% occupancy in Hanoi and HCMC retail spaces in Q2, and Avison Young notes Van Hanh Mall rents are $50 per square metre per month.

Before Covid‑19, premium chains such as Citigym and California Fitness & Yoga invested millions of dollars in large facilities with high‑end equipment, saunas and pools. After the pandemic, they saw a sharp fall in membership numbers, according to industry players.

At the same time, low‑cost gyms are expanding fast. Ways Station, launched in 2022, now runs 37 outlets in HCMC, while The New Gym, charging VND299,000 a month, has grown from 10 to 15 locations in four years and offers 24‑hour access.

Le Thi Mai, CEO of Citigym, says high rents and rising operational costs force the chain to cut profits with heavy discounts. Dane Fort, CEO of California Fitness & Yoga, said in a July livestream that opening more outlets no longer brings profit, prompting the brand to pause expansion.

These pressures show that even well‑funded premium gyms can become unsustainable when rent spikes, memberships decline and cheaper alternatives attract customers. The trend may reshape Ho Chi Minh City’s fitness market, favouring smaller or more affordable concepts.

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