Looking to lease factory in Vietnam? Here are 8 things to consider

Many businesses choose to rent a factory that has already been built to save time and costs. Customers and partners can refer to the following 8 criteria to lease factory in Vietnam.

Lease factory in Vietnam can help you save time and costs

Search for a reputable factory for rent

A reputable factory rental project is a project implemented by a trustworthy investor or real estate company and meets quality, safety, and legal standards and requirements. This project provides factories for rent to businesses and organizations that need to use production, storage or business space.

The factory is built according to current technical standards and regulations, ensuring quality, safety and sustainability. Construction projects must comply with quality control procedures and be inspected periodically to ensure safety during use.

Select factory location

This is one of the issues that should be given top priority when looking to lease factory in Vietnam. The factory for rent needs to ensure convenience, ensuring the process of transporting and loading and unloading goods is quick and easy. Thus, locations located near major roads and convenient for transportation will be easier for the production and operation process.

Select suitable location when you are looking to lease a factory in Vietnam

Factory design for rent

When looking to lease factory in Vietnam, business owners need to choose factories with the following criteria:

• The factory is built in a high and airy location.
• The workshop area is large enough for vehicles to easily get in and out.
• Full design of drainage system, wastewater treatment system, electrical system,… to serve production work.

Unlike other types of real estate investment, factories for rent do not require too much aesthetics. Instead, tenants should pay attention that the workshop must have a space large enough, spacious, solidly constructed, combined with a convenient location and reasonable rental price.

Warehouse area

The operating needs of each business are different, so requirements for factory and warehouse space will also be different when you’re looking to lease factory in Vietnam. Businesses need to choose the appropriate area based on their business line. If the factory area is too large it will cause waste, if the area is too small it will hinder production activities.

Determine specific rental price

Factory rental price depends on many different factors such as: location, area, facilities, accompanying utilities, etc. Therefore, based on the current condition of the factory, the tenant can negotiate a suitable price. Before signing the contract, customers can refer to the price list of factory construction projects for rent to find a reasonable price.

Factory rental time

Tenants signing long-term leases will bring more benefits than short-term leases. Normally, investors should offer preferential pricing policies for tenants who want to rent a factory for a long time. This will ensure stable operation in the long term. And of course, the contract needs to clearly state the lease term to avoid the lessor changing his mind, affecting the operations of the business.

Provide accompanying services

Models of building factories for rent also need to integrate additional service utilities such as electricity, water, fire protection systems, transportation services, loading and unloading of goods, recruitment… These services will contribute to supporting business operations when using warehouse rental services. You should choose a project to build a factory for rent that has a construction plan and add these service items to the factory for rent. All accompanying service utilities also need to be clearly stated in the contract to avoid future disputes.

Make sure the rental contract is detailed and clear

Contracts are extremely important items in renting a ready-built factory. Accordingly, tenants and investors need to draft a specific contract, fully listing items to avoid problems that arise once the contract has been put into effect. Below are the items that need to be clearly stated in the rental contract:

• Factory rental price and payment method: This is an important and indispensable item in the contract. The lessor will need to specifically state how much the factory rental price is, payment method, payment date, penalty terms for late payment, etc. In addition, it is also necessary to clearly state the costs of accompanying services such as electricity, water, garbage, maintenance,…
• Deposit: According to regulations, the deposit for long-term rental contracts is 3 months. However, it can also be changed depending on the agreement between the parties. This item needs to be clearly stated in the contract, and should not be agreed upon orally.
• Commitment to goods: This section requires the lessee to clearly state the type of goods produced or stored to avoid legal violations. Accordingly, the lessee needs to commit not to produce or store banned substances in the warehouse. In case of renting land in an industrial park to build a factory, investors also need to clearly understand the industries allowed to operate there to ensure they do not violate regulations.
• Lease term and rent increase rate: Factory rental costs will be calculated to increase over time (for long-term lease contracts). Therefore, the lessor needs to clearly stipulate in the contract when the factory rent will increase and by what percentage.
• Other items: It is indispensable to include items such as responsibilities and obligations of the parties as well as contract liquidation terms.

Signing contract to lease a factory in Vietnam

Conclusion

If you are looking to lease factory in Vietnam, please pay attention to the above information because it will help you tremendously in finding a suitable factory for your business. We hope that you can make a good decision very soon in the near future.

>>> See more: The demand for leasing factories in Vietnam is on the rise