Nowadays, many businesses would prefer to warehouse for lease rather than built-in warehouses due to cost savings and effective management. This decision allows businesses to reduce investment costs and allocate budgets to other activities.

1. Reasons driving the increased demand for warehouse for lease

Currently, many businesses choose a warehouse for lease instead of constructing their own to take advantage of cost benefits and effective management. This trend not only helps save initial investment costs but also allows businesses to focus on main activities. One of the key factors to increase demand for warehouse rentals is the government’s tax incentive policy.

1.1 Tax incentive policy

The Ministry of Finance has issued several corporate income tax (CIT) incentives and land rent exemptions for many businesses. According to Article 20 of Circular 78/2014/TT-BTC (amended and supplemented by Article 6 of Circular 151/2014/TT-BTC and Article 12 of Circular 96/2015/TT-BTC), the incentives include the following three regimes:

– 4-year tax exemption, 50% tax reduction for the next 9 years.

– 4-year tax exemption, 50% tax reduction for the next 5 years.

– 2-year tax exemption, 50% tax reduction for the next 4 years.

To use the tax exemption and reduction periods as mentioned, businesses must belong to the subjects eligible for tax incentives and meet the conditions for applying tax incentives according to the regulations of the Ministry.

These are opportunities for new businesses investing in production, leading to a recent increase in the demand for renting warehouses to store goods.

The demand for warehouse for lease has increased due to the government’s preferential policies

1.2 Many large enterprises (Queen Bee) choose to invest in Vietnam

“Queen Bee” is a real estate term referring to major international corporations and investors who play a significant role in developing industrial parks and economic zones in Vietnam. These enterprises often invest in large projects, use advanced technology, and have extensive global business networks.

Large businesses choose Vietnam as a production location when the world situation is unstable

Post Covid-19, “Queen Bees” have significantly shifted and are now leading the global supply chain. Vietnam has become one of the best locations in Southeast Asia for production due to its stable political environment, which has attracted the interest of these “Queen Bees.”

• Improving the investment environment: The Vietnamese government has been implementing various policies to enhance the investment climate, creating favorable conditions for foreign enterprises to operate in Vietnam.
• Cost advantages: Production costs in Vietnam are lower than in many other countries in the region, particularly labor costs.
• Complete supply chain: Vietnam has a relatively complete supply chain for many industries, especially textiles, footwear, and electronics.

The increased investment from large enterprises has led to high demand for warehouses to store raw materials, finished products, and import-export goods.

1.3 Abundant labor

In addition to tax incentive policy and stable politics as mentioned above, Vietnam also has a young labor force with high level education, offering the human resource for businesses.

According to data from the General Statistics Office of Vietnam, in the fourth quarter of 2023, the labor force aged 15 and above was 52.5 million people, an increase of more than 113.5 thousand people compared to the previous quarter and 401.9 thousand people, compared to the same period last year.

Simultaneously, the current education level has significantly improved through vocational training programs and higher education. Low labor costs are also an attractive point for businesses. This is a positive sign indicating that Vietnam has a high level of labor force, meeting the increasingly high-quality labor needs for businesses investing in Vietnam.

2. Reasons why businesses choose to lease warehouse

Businesses choose the warehouse for lease instead of building their own not only for economic reasons but also for other benefits that provide flexibility and efficiency in operations. Renting warehouses allows businesses to easily adapt to market fluctuations and optimize resources.

2.1. Location of warehouse for lease

Location of warehouse for lease offers convenience for businesses when renting

The location of rental warehouses plays a crucial role in optimizing logistics costs and enhancing the efficiency of a company’s goods distribution. Choosing an appropriate warehouse location can help businesses save on shipping costs, shorten delivery times, and improve customer service quality.

Rental warehouses provide businesses with high flexibility in selecting locations, such as being close to production areas, which helps reduce shipping costs for raw materials. It also shortens delivery times to customers, reduces risks, and improves reliability with customers.

2.2 Cost savings

Businesses do not need to spend a large amount of money to purchase land and construct warehouses when choosing warehouses. This capital can be spent on investing in other business activities to offer more effective profits.

Additionally, when choosing a warehouse for lease instead of buying land, businesses can increase profit, offer products with better prices, and enhance competitiveness in the market.

2.3 Easy expansion

When the demand of businesses grows, companies can easily expand the space of rental warehouses or rent additional warehouses without investing in entirely new construction.

The flexibility in warehouse expansion allows businesses to increase storage space for additional goods as the demand grows, thus distributing goods more efficiently. Expanding the warehouse for lease also helps businesses make a good impression for customers who visit the business’s warehouse, strengthening customer trust.

2.4 No concerns about legal procedures

Building your own warehouses usually involves numerous complex and time-consuming legal procedures, along with various permits such as construction permits, warehouse operation permits, fire safety permits, and many other documents.

Renting warehouses helps businesses minimize such complicated legal procedures, saving time by allowing the warehouse to be operated.

3. Gaw NP Industrial – Leading provider of rental warehouses in Vietnam

When it comes to a rental warehouse in Vietnam, Gaw NP Industrial cannot be overlooked. The company aims to become the top industrial real estate developer in Vietnam.

3.1 GNP Nam Dinh Vu project in Hai Phong

The GNP Nam Dinh Vu project has an area of 16.9 hectares, offering many benefits for businesses such as a strategic location for goods trade and modern column-free design, optimal for production and storage. The warehouse for lease is equipped with hydraulic dock levelers, a fire protection system, 24/7 security, and many other amenities to meet the diverse needs of businesses.

GNP Nam Dinh Vu achieved EDGE certification to ensure green and sustainable standards

With these advantages, GNP Nam Dinh Vu promises to be an ideal destination, providing diverse infrastructure suitable for all customer segments. Currently, the warehouse for lease has attracted many businesses from various industries such as automotive, electronics, and semiconductors to invest.

3.3 GNP Dong Van 3 project in Ha Nam

With a scale of 16 hectares in Ha Nam province, GNP Dong Van 3 provides over 20,000m² of ready-built warehouses for lease with various sizes. The project has a favorable location near major routes such as National Highway 1A, National Highway 38, and the Cau Gie-Ninh Binh Expressway. The flexible space and column-free design optimize production areas. Additionally, the project achieved EDGE certification for green building, helping to save energy consumption.

GNP Dong Van 3 offers comprehensive amenities for businesses

>>> See more: Discover Gaw NP Industrial’s premium warehouses for lease in Vietnam

Conclusion

Currently, the global economic and political situation is not stable so large businesses choose stable countries like Vietnam to develop and offer long-term advantages for businesses. To optimize costs and gain long-term benefits, warehouse for lease is a worthwhile consideration for any business looking to expand its operations and production.

Businesses in need of quality warehouses for rent in Vietnam, contact Hotline +84 789 75 77 88 to get detailed consultation from the expert team at Gaw NP Industrial.

See More:

>>> 10 essential factors to consider when selecting warehouses in Vietnam

>>> The professional perspective on ready-built warehouses in Vietnam

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