Since July 2026, a wave of gym closures and operational disruptions has put Vietnam’s fitness industry under scrutiny. Among the most notable cases is California Fitness & Yoga (CFY), a premium chain that once operated around 50 locations nationwide and accounted for 72.2% of the market by membership. The company has recently shut four branches in Hanoi and Ho Chi Minh City and suspended operations at three others.
CFY has also faced reports of unpaid wages, tax liabilities and questionable fees. According to Ho Chi Minh City Social Security, the company’s headquarters in the city owed more than VND 9 billion in social insurance contributions for 416 employees as of late September 2026, while its Hanoi branch owed over VND 5 billion for 319 employees.
This turbulence is not isolated to CFY. Key rivals Elite Fitness and Citigym are facing similar struggles. Elite Fitness withdrew from southern Vietnam in May 2026, retaining only its Hanoi locations. Citigym announced plans to close two major Ho Chi Minh City branches in September, then quickly reversed the decision. These developments have left members - particularly those holding premium memberships - wondering what happens to their money and training routines if their gyms close.
1. The Reasons Behind
High Operating Costs
Most major gym chains position themselves as premium fitness clubs, requiring substantial investment in facilities to attract their target clientele. This means securing prime real estate, purchasing high-end equipment, and maintaining amenities such as swimming pools and round-the-clock air conditioning, on top of paying staff salaries, bonuses and insurance. These expenses add up quickly. Each club carries a hefty monthly operating bill, regardless of whether revenue is high or low.
Changing Consumer Habits
To cover high operating costs, premium gyms rely on long-term memberships. Most require at least a six-month commitment, while some offer lifetime memberships costing VND 70 million to over VND 150 million upfront, plus annual maintenance fees of VND 1-3 million.
This model worked for years, until COVID-19, economic uncertainty and rising inflation squeezed household budgets. With wages struggling to keep up with living costs, gym memberships became an easy expense to cut. Long-time workers tightened their spending, while younger professionals often couldn’t afford the upfront cost. Meanwhile, gyms still had to pay their bills every month.
At the same time, running, pickleball and independent yoga studios have offered more flexible alternatives. They tend to cost less and rarely require long-term contracts, allowing people to exercise without feeling locked into a membership they’ve already paid for.
A Workout Experience That Falls Short Of Expectations
For premium gym chains, personal trainers (PTs) should be a key selling point, offering members a more personalized workout experience. In reality, however, they can become a reason customers stay away or decide not to return.
Browse fitness forums and online communities, and it’s not hard to find members frustrated by constant pressure from PTs to buy personal training packages or supplements. With high operating costs to cover, even trainers can end up acting as salespeople, doing whatever it takes to close a deal. Yet most receive little formal sales training. Instead of improving the member experience, these approaches often leave customers feeling frustrated and put off.
2. What Should You Do When Your Gym Closes?
With major gym chains facing closures and uncertainty, members may be wondering where to turn next. Beyond running, pickleball and yoga, here are some alternatives and emerging trends that could shape how people work out in the near future, and you can also try.
Independent And Boutique Gyms
You can turn to independent gyms - often smaller, no-frills facilitator - or boutique studios that offer a more private setting, with small-group classes or one-on-one training.
Unlike large chains, these gyms operate independently and can keep overheads lower, particularly rent. Many also offer more flexible membership options instead of pushing multi-year contracts that leave members at risk if a business shuts down. For gym-goers, they can be worth considering as an alternative to big-name chains.
Flexible Memberships
As the drawbacks of long-term memberships become more apparent, some gym chains are prioritizing more flexible payment options, such as monthly memberships and day passes. These options give members greater peace of mind by avoiding hefty upfront commitments. They also appeal to travelers and short-term visitors who want to maintain their workout routines while away from home.
Using Technology To Cut Operating Costs
Some gym chains are adapting by reducing staffing needs and using technology to run self-service facilities. One example is the gym pod - a compact workout space where users book online and enter using a QR code, facial recognition, or a personal access code. These facilities can operate without on-site receptionists, security guards, or personal trainers.
Home Workouts And Online Personal Training
Personal trainers are also moving away from traditional gyms, increasingly offering one-on-one coaching at clients’ homes or online. This model has found favor among some higher-end clients, who value the privacy of working out in their own space and the flexibility to fit training around busy schedules.
For trainers, working directly with clients also makes it easier to track their progress and provide more focused support, rather than splitting their attention among three or four clients during a single session at a conventional gym.