A factory office for rent in Vietnam is currently a popular choice for businesses operating in various sectors such as trade and manufacturing. Unlike constructing new factory offices, which is cost-intensive, renting factory offices is a flexible option that offers many benefits to businesses. However, despite the numerous advantages, renting factory offices also presents several challenges that businesses need to be aware of before making a rental decision.

1. What are factors affecting rental prices of factories in Viet Nam ?

Prices of a factory office for rent in Vietnam vary widely, depending on several factors such as location, size, amenities, and lease terms. Prices can fluctuate based on the specific needs and negotiations of the business.

1.1. Location

Rental prices differ significantly across various areas. Major cities like Hanoi and Ho Chi Minh City typically have higher prices compared to other provinces. Factories located farther from the city center are generally more affordable than those in central city areas.

Especially after the Covid-19 pandemic, real estate rental prices have tended to increase and fluctuate, according to Mr. John Campbell, Head of Industrial Real Estate, Savills Viet Nam, regarding the situation of the industrial real estate market in Viet Nam. Mr. John Campbell stated that “the demand for land, factories, and warehouses has increased rental prices in industrial zones near major cities. High prices remain a concern for low-value and low-margin manufacturing sectors such as textiles and furniture.”

Location affecting the price of factory office for rent in Vietnam

A good location helps businesses to move more conveniently when meeting clients, facilitates the transportation of goods, and provides more opportunities for client collaboration. Therefore, rental prices for factory offices will be changed, based on the location.

1.2. Size

In addition to location, the size of the factory is directly proportional to the rental prices. Larger factory offices require higher construction and maintenance costs. Therefore, if a business chooses a space that exceeds its actual needs, it will incur unnecessary rental costs, leading to a waste of financial resources.

Renting larger factory results in higher costs

On the other hand, choosing a factory office for rent in Vietnam that is too small can hinder production expansion and storage of goods, negatively impacting business operations. Location also plays an important role in making a strong positive impression on clients during visiting, building trust and credibility with the scale of the business, leading to quicker purchasing decisions. Therefore, businesses need to carefully consider their current and future needs to select an appropriate size, building a professional image in the minds of partners and employees while optimizing costs effectively.

1.3. Amenities

When discussing rental factories, the factor of amenities cannot be overlooked as it directly affects rental prices. Factory offices equipped with full amenities such as fire protection systems, electricity, water, air conditioning, and security are highly sought after by businesses in the market. Consequently, the rental prices for factory offices with comprehensive amenities are usually higher than those without.

Factory offices also provide many benefits for owners, such as not having to spend excessively on purchasing equipment, allowing for budget savings for other purposes.

1.4. Lease terms

When renting any real estate or other business models, there will always be a contract, accompanied by lease terms agreed upon by both parties. The more detailed the terms, the lower the risk for both parties. This is also a reason that affects the rental prices of factory offices.

The contract often includes many lease terms, which can cover the lease period, regulations, rental prices, and more. Therefore, businesses should discuss and negotiate with the landlord to secure the best lease terms for their needs.

The terms of the contract will also affect the rental price of the factory

2. Common terms for factory office for rent in Vietnam

2.1. Lease conditions

To effectively rent a factory office, businesses should prepare all necessary conditions to ensure smooth and easy operations. Each rental unit will have different conditions for tenants, so businesses need to thoroughly understand the regulations of each location before deciding to rent.

• The business must have sufficient legal and financial capacity.
• The purpose of the lease must align with planning and legal regulations.
• A feasible business plan is required.
• Compliance with environmental protection, fire prevention, and safety requirements.

2.2. Lease duration

The longer the lease duration, the lower the monthly rental rates

Lease terms typically range from 3-5 years and can be extended based on mutual agreement. Generally, the longer the lease duration, the lower the monthly rental prices. This is because the landlord can ensure a stable income over a longer period, minimizing the risk of vacancy. Shorter lease durations often come with higher rental rates to offset the risks and costs associated with finding new tenants.

2.3. Prices of factory office for rent in Vietnam

Rental prices are negotiated between parties and specified in the contract. The rental prices for factory offices are determined based on several factors such as location, size, amenities, and the condition of the factory. Rental rates can be fixed for the entire lease duration or periodically adjusted according to the agreement between the parties. Businesses should compare the rental prices of different factory offices to find the most suitable option for their budget and needs.

2.4. Security deposit

The security deposit is an amount that the tenant must pay to the landlord upon signing the contract. Typically, the tenant must deposit an amount equivalent to 2-3 months’ rent. The purpose of the security deposit is to ensure that the tenant adheres to the terms of the contract. The deposit is usually equivalent to 2-3 months’ rent and will be refunded at the end of the lease if the tenant does not violate the contract.

2.5. Maintenance and repairs

The responsibility for maintaining and repairing the factory office can belong to the tenant, the landlord, or be shared between both parties as agreed upon in the contract. Clearly defining maintenance and repair responsibilities is crucial to avoid disputes that may arise during the rental period.

2.6. Utility services

The utilities of the factory office include services such as electricity, water, internet, security, and cleaning. These utilities can be included in the rental prices or charged separately. Businesses need to carefully review the included utilities to comprehensively assess the rental costs.

2.7. Taxes and fees

The tenant is responsible for taxes and fees related to the lease as per legal regulations. In addition to rental rates and utility costs, businesses renting factory offices must also pay for other taxes and fees, such as value-added tax (VAT), non-agricultural land use tax, environmental protection fees, and various other charges. Businesses need to be aware of these taxes and fees.

Conclusion

The demand for choosing a factory office for rent in Vietnam is growing rapidly, offering many opportunities for businesses. However, to use this opportunity fully, it is essential to understand rental prices, legal regulations, and contract terms. Businesses should carefully consider factors such as location, size, amenities, and the condition of the factory office to make an appropriate rental decision.

>>> See more: Advantages of renting a factory with integrated office space in Vietnam

Warehouse for lease in Vietnam | Warehouse for rent in Vietnam | Factory for lease in Vietnam | Factory for rent in Vietnam