Big-name gyms are closing their doors in Vietnam. What's behind the shake-up?

Wave of closures hits big-name gym chains

California Fitness & Yoga, once one of Vietnam's most prominent fitness chains, has seen its network shrink dramatically, from around 35 clubs in 2025 to just two locations still operating as of October 26, 2026.

The chain has temporarily suspended operations at dozens of clubs across the country, including all its locations in Hanoi, leaving members who prepaid for long-term packages uncertain about their remaining benefits.

On October 19, California Fitness founder and CEO Dane Fort publicly apologized to members, employees, and partners, acknowledging shortcomings in the company's expansion strategy and operations. 

He requested another 30 days to develop a restructuring plan and address outstanding concerns.

California Fitness is far from alone.

In August, Ho Chi Minh City-based Core Fitness & Yoga suspended operations across all five of its locations, citing prolonged business difficulties and financial strain.

A group of affected members estimated that more than 600 customers had been left without access to services they had already paid for, with prepaid packages collectively worth millions of U.S. dollars.

Earlier, once-familiar names such as Elite Fitness and Lumi Fitness had also scaled back their networks, closing some locations to streamline operations.

Beyond closures, outstanding tax liabilities have added to concerns about the financial health of some operators.

According to tax authority records on October 29, the company behind California Fitness owed more than VND4.35 billion (approximately $168,500) in taxes as of the September reporting period, alongside more than VND9.02 billion ($349,000) in overdue social insurance contributions.

Fit24 and Getfit also appeared on tax debt lists, with outstanding amounts exceeding VND1.62 billion ($62,800) and VND2.4 billion ($93,000), respectively.

Yet these setbacks come against a backdrop of continued growth in the wider fitness industry.

According to the Health & Fitness Association's 2026 Global Report, a survey of 244 operators representing nearly 27,000 fitness facilities found that median revenue rose 10.7 percent in 2025.

Closer to home, Mordor Intelligence estimates Southeast Asia's health and fitness club market at $2.93 billion in 2026 and projects it will reach $4.56 billion by 2031.

The contrasting trends point to a deeper question: if the fitness business still has room to grow, why are some of its best-known operators struggling to survive in Vietnam?

What's going wrong with the gym business model?

The difficulties facing major gym chains are not simply a matter of falling demand. 

They point to a deeper problem: a business model that requires substantial upfront investment and a steady flow of new customers to sustain costly operations.

Unlike smaller fitness studios, large gym chains typically operate spacious facilities in prime locations, with expensive equipment, extensive amenities, and sizable workforces. 

While such investments help attract customers, they also create fixed costs that remain largely unchanged even when membership sales weaken.

A recent Tuoi Tre (Youth) online newspaper survey in Ho Chi Minh City found that properties previously occupied by gym chains were being advertised for rent at VND85-300 million ($3,300-11,600) per month.

With typical gym memberships costing VND400,000-700,000 ($15-27) per month, operators need a substantial customer base just to cover their rent, let alone salaries, utilities, equipment maintenance, and other expenses.

The larger the network, the greater the financial exposure. Opening more clubs may generate additional revenue, but it also multiplies rental commitments and operating costs, leaving operators vulnerable when expansion outpaces demand.

Yet high costs are only part of the equation. The way many gyms generate cash can create another layer of financial pressure.

Rather than collecting fees solely on a monthly basis, operators often encourage customers to purchase packages lasting several months or years, sometimes through substantial discounts.

This model provides immediate cash that can support operations and expansion. 

However, receiving payment does not mean the revenue has been fully earned. 

Gyms must continue providing access, classes, and other services throughout the membership period.

The financial risk emerges when cash collected for future services is spent faster than the business can sustainably replace it.

If new membership sales slow, operators may struggle to cover current expenses while still carrying obligations to existing customers. 

Offering deeper discounts can temporarily boost cash receipts, but it also reduces revenue per membership and may reinforce dependence on continuous sales.

In other words, strong membership sales today do not necessarily guarantee financial stability tomorrow.

Meanwhile, the growing range of fitness options is changing the competitive landscape for traditional gym chains.

Consumers can now choose from boutique Pilates and yoga studios, running clubs, pickleball, and digital workouts, instead of relying solely on conventional gym memberships.

The American College of Sports Medicine's 2027 Worldwide Fitness Trends report reflects these diverse interests. 

Mobile exercise apps climbed to second place, while Pilates- and yoga-related activities ranked third. 

Group fitness classes also made a strong comeback, jumping from 13th to seventh, although traditional strength training remained prominent in fifth place.

The rankings suggest that demand is evolving rather than simply shifting away from gyms. 

Consumers continue to value strength training, but expert-led classes, social experiences, and flexible digital options are also gaining prominence.

For large gym chains, the challenge is therefore not necessarily a lack of interest in fitness, but how to attract and retain members in a market offering increasingly varied exercise experiences. 

Operators with high fixed costs and extensive facilities may face greater pressure if their services fail to keep pace with these changing expectations.

And the closures themselves could make the business model harder to sustain.

Customers who once viewed long-term packages as a way to save money may increasingly see them as a financial risk. 

A membership covering several years offers little reassurance if a nearby club shuts down or promised services become unavailable.

The recent wave of closures in Vietnam has brought these risks into sharper focus, leaving prepaid members uncertain about whether they will receive the services they have already paid for or recover their money.

California Fitness has also signaled a possible shift in approach, with CEO Dane Fort announcing plans to introduce monthly payment options that would give customers greater flexibility and reduce their reliance on long-term commitments.

The move points to a broader challenge for traditional gym chains: attracting customers is no longer enough. 

Operators must find ways to retain them and rebuild trust without relying heavily on long-term financial commitments.

Ultimately, the fitness industry's growth may not be the problem. 

The question is whether the business model that helped large gym chains expand can still support them in a market where consumers have more choices and greater reasons to be cautious.