The Fit24 gym chain has officially announced the closure of all locations in Ho Chi Minh City, evidence of the tough and stagnant conditions in the local fitness industry.

According to the announcement, Fit24 had closed all its gyms in Ho Chi Minh City by Saturday.

While Vietnamese gym giants like Fit24 previously reported enormous revenues around 2018, surviving six years later is a significant challenge.

Fit24 is not alone, as the Getfit Gym & Yoga chain also temporarily closed its locations due to financial difficulties in September.

The gym business is facing tougher times as investor interest wanes.

Recently, in one episode of Shark Tank Vietnam, a business reality television series, a Spanish entrepreneur sought US$500,000 for a 25-percent stake to expand his Ho Chi Minh City-based Hustle Vietnam boutique fitness gym system, founded in 2019.

Despite impressive revenue growth – such as the Thao Dien facility in Thu Duc City expanding about 20 percent annually over three years or the Go Vap District location increasing 60 percent per year – these ventures have faced multiple rejections from investors.

Nguyen Thanh Huu, a personal trainer and owner of two gyms in Phu Nhuan and Binh Thanh Districts, noted a decline in membership over the past two years.

“The most significant drop occurred in April this year,” Huu shared.

“My gym targets the middle-income segment, and summers typically bring in many patrons.

"However, this year has seen a dramatic drop.

"A classmate of mine opened a gym with great enthusiasm, only to close it quietly after just three months.”

In Vietnam, the gym market is currently dominated by high-end brands, with low-end gyms capturing only a tiny slice.

Prominent names like California Fitness & Yoga, Getfit Gym & Yoga, Elite Fitness, and Fit24 are easily recognizable, with some generating massive annual revenues.

The startup costs for this type of business are significant.

According to Ho Thanh Van, an architect specializing in interior design for gyms and similar spaces, establishing a low-end gym requires around VND500 million ($20,114) for an area of 250-300 square meters.

“High-end gyms demand design and construction costs exceeding VND20 billion [$804,600], as they typically require larger spaces – often 2,000-3,000 square meters – plus high rental fees and investment in imported equipment,” Van explained.

“Generally, only well-established businesses can afford to invest in this segment.”

An economic expert in Ho Chi Minh City remarked that the fitness industry is facing tough and stagnant conditions.

“The economy is challenging, and consumers are cautious about their spending," the expert commented.

"There’s growing competition from private services, such as all-in-one and boutique gyms, as well as affordable sports like marathons and pickleball, which are gaining popularity.”

Like us on Facebook or follow us on X to get the latest news about Vietnam!