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How does transportation affect the location of production?

August 27, 2024 07:43 AM

When choosing a location for factory lease in Vietnam, transportation is a key factor influencing the decisions of businesses. A location with convenient transportation not only helps to improve business but also promotes the economic development of the area. 1. Advantages of factories with convenient transportation In the high competitive market, the transportation location of […]

When choosing a location for factory lease in Vietnam, transportation is a key factor influencing the decisions of businesses. A location with convenient transportation not only helps to improve business but also promotes the economic development of the area.

1. Advantages of factories with convenient transportation

In the high competitive market, the transportation location of factories plays an important role, helping businesses optimize costs and promote development. Here are the specific advantages of choosing a factory lease in Vietnam with convenient transportation:

1.1 Attracting multiple businesses

Factories in locations with convenient transportation attract investment from many domestic businesses and international investors, thanks to easy and efficient access to major markets and key infrastructures.

These areas, with superior connections to main roads, railway stations, and seaports, provide significant advantages in the distribution and export of goods, helping businesses optimize their supply chains and minimize operational costs.

Hai Phong attracts significant international investment with its advantageous location

Hai Phong attracts significant international investment with its advantageous location

An example is Hai Phong, with its convenient transportation location near Hanoi and on the Ha Noi – Hai Phong expressway, which has made it a hotspot for foreign investors. According to the latest figures from the Ministry of Planning and Investment in 2023, Hai Phong leads the country in FDI attraction, with total investment reaching $3.5 billion, showing significant growth compared to previous years.

1.2 Abundant labor force

Factories with convenient transportation locations are often near urban centers or main transportation routes, attracting labor force from nearby areas. The ease of access to the factory helps businesses quickly recruit and reduce costs related to employee commuting.

This not only enhances labor productivity but also improves talent retention, contributing to the long-term stability and development of the business.

1.3 Convenient transportation

Factories with convenient transportation locations play a crucial role in optimizing transportation and distribution. This helps minimize operational costs and significantly improves delivery times, thereby enhancing overall business efficiency.

  • Reducing transportation costs: Factories near main roads, highways, and seaports can significantly lower logistics costs. Reducing the distance to major distribution helps businesses to save on fuel and vehicle maintenance costs.
  • Increasing delivery speed: Factories in advantageous locations allow goods to be quickly transported to customers. This is particularly important for businesses in e-commerce and distribution, where delivery time is one of the main competitive factors.

Factories with convenient transportation locations play a crucial role in optimizing the transportation process

Factories with convenient transportation locations play a crucial role in optimizing the transportation process

  • Easily expanding the market: Convenient transportation locations also open up opportunities to access new markets, enhancing the ability to distribute products beyond the local area. This is particularly important for businesses that are expanding their operations.
  • Improving customer relationships: The ability to deliver quickly and reliably improves relationships with customers and increases customer retention. The ability to quickly fulfill orders and resolve issues during transportation contributes to higher customer satisfaction.

1.4 Promoting economic development

Factories located in areas with convenient transportation not only bring direct benefits to businesses but also play an important role in promoting regional economic development.

The presence of factories in strategic locations contributes to the creation of numerous new jobs, from production workers to administrative staff, thereby significantly improving the income and quality of life for local residents.

A factory lease in Vietnam with advantageous locations indirectly promote regional economic development

A factory lease in Vietnam with advantageous locations indirectly promote regional economic development

The development of factories not only attracts investment but also stimulates the supporting industries and services, creating a robust economic value chain.

Industrial zones, often located near main roads and seaports, increase convenience for transportation and import-export activities, while also boosting regional economic activities from trade to tourism and services.

Furthermore, the development of factories drives the upgrading and expansion of transportation and public infrastructure to meet the demands of transportation and logistics. As a result, property values in the area increase, and the quality of life for residents improves significantly through better roads, efficient public services, and a higher quality living environment.

>>> See more: 8 advantages of renting factories in Vietnam

2. Gaw NP Industrial – Factory lease in Vietnam with convenient transportation

Gaw NP Industrial is a leading enterprise in the industrial real estate development sector in Vietnam. With extensive experience and an impressive portfolio, Gaw NP Industrial provides factory solutions in Vietnam with modern infrastructure. Additionally, the locations of their factories are extremely convenient, meeting the diverse needs of businesses from light manufacturing to heavy industry.

Gaw NP Industrial provides ready-built factory solutions with modern infrastructure

Gaw NP Industrial provides ready-built factory solutions with modern infrastructure

2.1 GNP Yen Binh 1 & GNP Yen Binh 2 Industrial Centers

GNP Yen Binh 1 & GNP Yen Binh 2, with a total area of up to 29.5 hectares, are located in a strategic position just about an hour’s drive from Hanoi via the Hanoi-Thai Nguyen expressway.

The factory areas are near the Samsung Thai Nguyen factory, one of Samsung’s largest factories in Vietnam, and only about 40 minutes from Noi Bai International Airport, providing logistical advantages and market access.

  • Location connectivity of GNP Yen Binh 1 & 2 factories:
  1. To the Vietnam-China border gate: ~140 km (140 minutes)
  2. To Noi Bai International Airport: ~30 km (30 minutes)
  3. To Hanoi capital: ~60 km (60 minutes)
  4. To Cai Lan Port: ~150 km (110 minutes)
  5. To Lach Huyen International Deepwater Port: ~160 km (120 minutes)
  6. To Cat Bi International Airport: ~160 km (120 minutes)

The GNP Yen Binh 1 & 2 factory areas are well-connected to nearby regions such as China

The GNP Yen Binh 1 & 2 factory areas are well-connected to nearby regions such as China

2.2 GNP Nam Dinh Vu Industrial Center

GNP Nam Dinh Vu, a project by Gaw NP Industrial, is located in the Nam Dinh Vu Industrial Park, at the center of the Dinh Vu – Cat Hai Economic Zone in Hai Phong. This project not only provides modern factories but also meets the diverse needs of both domestic and international businesses, thanks to its strategic location and superior infrastructure.

  • Location connectivity of GNP Nam Dinh Vu factories:
  1. To Van Don International Airport: ~100 km (80 minutes)
  2. To Cai Lan Port: ~49 km (48 minutes)
  3. To Hai Phong Port: ~15 km (25 minutes)
  4. To Lach Huyen International Deepwater Port: ~11 km (15 minutes)
  5. To Hai Phong city center: ~16 km (28 minutes)
  6. To Cat Bi International Airport: ~13 km (20 minutes)
  7. To Noi Bai International Airport: ~130 km (110 minutes)
  8. To Hanoi capital: ~122 km (100 minutes)

GNP Nam Dinh Vu is located directly connected to the largest seaports in the country

GNP Nam Dinh Vu is located directly connected to the largest seaports in the country

2.3 GNP Dong Van 3 Industrial Center

GNP Dong Van 3, a significant industrial development project by Gaw NP Industrial, is located in the Dong Van 3 Industrial Park, Ha Nam province. With a scale of 16 hectares and modern facilities, this project provides an ideal production space for both domestic and international businesses, especially those in high-tech and supporting industries.

  • Location connectivity of GNP Dong Van 3:
  1. To Hanoi capital: ~50 km (45 minutes)
  2. To Noi Bai Airport: ~80 km (70 minutes)
  3. To Cat Bi International Airport: ~130 km (100 minutes)
  4. To Lach Huyen Port: ~120 km (100 minutes)
  5. To Hai Phong Port: ~130 km (100 minutes)

GNP Dong Van 3 has an advantageous location connecting to various regions

GNP Dong Van 3 has an advantageous location connecting to various regions

GNP Nam Dinh Vu, GNP Dong Van 3, and GNP Yen Binh 1 & 2 are three projects that Gaw NP Industrial focuses on in terms of connectivity and advantageous transportation locations to access the market. Gaw NP Industrial is not only a provider of high-quality industrial real estate but also a strategic partner in supporting and developing the regional economy through efficient and sustainable industrial projects.

Conclusion

Businesses choosing to rent factories in Vietnam with convenient transportation not only enhance business efficiency but also contribute to the sustainable economic development of the region.

If your business is looking for a high-quality factory lease in Vietnam, please contact the hotline: (+84) 789 75 77 88 for detailed consultation from the Gaw NP Industrial expert team.

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