The demand for locating a manufacturing facility in Vietnam has significantly increased in recent years, driven by significant growth in high-tech and electronic industries. This leads to a need for flexible and cost-effective production spaces. However, how to identify reputable and high-quality manufacturing facilities in Vietnam to save costs and mitigate risks?

High Demand for Finding Manufacturing Facilities in Vietnam

In recent years, Vietnam has gained recognition as a manufacturing hub in the Southeast Asian region and globally.

International corporations have started paying attention to Vietnam to expand their supply chains. The shift of industry giants has made the market for renting manufacturing factories in Vietnam more attractive than ever. Additionally, the strong increase in domestic purchasing power and consumption in recent years has also had very positive impacts on finding manufacturing facilities for many local businesses to expand their business scales.

In Q3/2023, according to CBRE records, the occupancy rate in Southern industrial zones averaged 81.9%, while in the Northern region, it reached 83%.

The Real Estate Market for Manufacturing Facility Rentals is Heating Up in Recent Years

In Vietnam, the demand for renting manufacturing facilities by industry sectors is statistical as follows:

• F&B sector accounts for 20%
• Plastic industry accounts for 19%
• Printing industry accounts for 18%
• Electronics industry accounts for 13%

It can be said that the model of ready-built factories in Vietnam is still leading in the real estate market for rentals and is actively explored by many local businesses and FDI enterprises seeking investment opportunities for production and development.

Thanks to the investments from industry giants such as Samsung, LG, Foxconn, a series of suppliers for these companies have also become operational in Vietnam. The majority of these suppliers have a demand for renting manufacturing facilities.

Experience in Finding Manufacturing Facilities in Vietnam

What to Consider When Finding Manufacturing Facilities

– Location of the Factories:

When searching for manufacturing facilities, businesses should prioritize factories at convenient locations. This plays a crucial role for businesses looking to expand and explore new markets.

For example, renting a factory in the Southern region near major connecting routes such as Cat Lai port, Long Thanh airport, and Ring Road 3 can be a tremendous advantage for enterprises.

The strategic location of the factories for businesses

– Rental Price:

Rental price is one of the key factors that businesses are highly concerned about. Generally, the rental price of manufacturing factories depends on:

• Location
• Infrastructure
• Facilities
• Condition of the factory

The rental price is often calculated based on square meters, and long-term lessees usually receive better rates than short-term lessees. When reviewing contracts, pay attention to:

• Lease duration and annual rent increase
• Deposit and monthly or yearly tax rates
• Obligations, rights, and responsibilities of both parties
• Contract extension period
• Contract appendices
• Security commitments during the lease period

Additionally, businesses should consider:

• Rental prices for storage services and whether a deposit is required
• Whether there are fees associated with the import and export process
• Other incurred costs

– Infrastructure and Facilities:

Physically visiting the location to assess the scale and infrastructure of the factory is essential. Observing machinery systems, water supply, power sources, wastewater treatment, internet, security, and fire protection systems, etc., is necessary to ensure they are sufficient and of high quality. Additionally, consider amenities such as loading and unloading services, transportation services, management services, import and export services, offices, cafeteria, and worker areas to determine if the factory aligns with the business’s criteria.

Standard infrastructure and facilities to support the production process

– Investor/Owner:

To find a reputable factory for rent, businesses should research the investor or owner of the factory project. Well-known and reliable investors typically meet strict standards and requirements of businesses. They possess the professional expertise needed to ensure safety from physical facilities to legal support, as well as providing all necessary amenities tailored to the specific nature of each business.

Choosing a trustworthy manufacturing factory helps businesses minimize risks when investing in production and enables continuous development.

Top reputable industrial factories for rent

In response to the demand for renting manufacturing factories from businesses, especially Foreign Direct Investment (FDI) enterprises preparing to enter Vietnam, Gaw NP Industrial would like to introduce three strategically located factories in Thai Nguyen – Hai Phong – Ha Nam that are attracting significant attention from both domestic and international enterprises. GNP provides the best and diverse products and services in every investment experience for businesses.

Manufacturing factory in Thai Nguyen – GNP Yen Binh 1 & 2

GNP Yen Binh 1 & GNP Yen Binh 2 manufacturing factories cover an area of 29.5 hectares with many large enterprises operating here. These factories have a strategic location that facilitates convenient transportation of goods both domestically and internationally, including:

• To the Vietnam-China border: ~140 km
• To Noi Bai International Airport: ~30 km
• To Hanoi Capital: ~60 km
• To Cai Lan Port: ~150 km
• To Lach Huyen Deep-water Port: ~160 km
• To Cat Bi International Airport: ~160 km

In addition, GNP Yen Binh 1 & GNP Yen Binh 2 also own various facilities such as spacious internal roads convenient for transportation, a canteen, and ATMs.

The industrial estate prioritizes certain industries such as:

• Manufacturing metal and plastic molds for mobile phones and other electronic devices.
• Producing mobile phones, tablets, digital cameras, and components for mobile phones.
• Manufacturing electronic components.
• Producing automation equipment (for electronics and mobile phones); processing and assembling electronic components and mobile phone accessories.
• Manufacturing semiconductor and LCD devices.
• Mechanical processing for mobile phones and other mobile devices.
• Clean industry, supporting industry, high-tech industry.

The GNP Yen Binh 1 & 2 manufacturing industrial estate

Factory for lease with an area starting from 2,500m2 is spaciously designed without columns, optimizing space for businesses to set up production lines. Additionally, the GNP Yen Binh 1 & GNP Yen Binh 2 project is equipped with a modern fire protection and prevention system, ensuring safety for both businesses and laborers.

Manufacturing factory in Hai Phong – GNP Nam Dinh Vu

Located in Hai Phong, touted as the new industrial center of Vietnam, GNP Nam Dinh Vu manufacturing factory spans an area of 16.9 hectares.

One of the key advantages drawing foreign businesses to GNP Nam Dinh Vu is its strategic location, including:

• Distance from Van Don International Airport: 100 km
• Distance from Cai Lan Port: 49 km
• Distance from Hai Phong Port: 15 km
• Distance from Lach Huyen International Deep Water Port: 11 km
• Distance from the city center of Hai Phong: 16 km
• Distance from Cat Bi International Airport: 13 km
• Distance from Noi Bai International Airport: 130 km
• Distance from Hanoi Capital: 122 km

Notably, this factory is certified with the EDGE green certificate, a standard for measuring sustainability factors and the impact of businesses on the community based on international standards.

Some priority industries at GNP Nam Dinh Vu include:

• Precision mechanical manufacturing.
• Production of new materials, specialized materials, and construction materials.
• Manufacturing of electronics, electrical appliances, telecommunications, information technology, and high-tech.
• Production of paint (meeting conditions), chemicals, rubber, and cosmetics.
• Packaging and plastic products.
• Logistics and factory.
• Light industry (textile industry excluding dyeing processes).
• Automobiles.

Interior design without columns in the GNP Nam Dinh Vu manufacturing factory – Hai Phong

The interior of the factory maintains its characteristic column-free design, but with an additional system of rolling doors measuring 3 meters wide and 4.5 meters high, with a floor load capacity of up to 2 tons/m2. In addition, GNP Nam Dinh Vu comes with accompanying amenities such as:

• Fire protection and prevention system (PCCC).
• Specialized office area.
• Restrooms with all necessary facilities.
• Convenient internal roads for transportation.
• Parking area, truck yard, and a common cafeteria.
• Surveillance cameras and lighting systems for common areas.
• 24/7 security.

Currently, the factory leasing area at GNP Nam Dinh Vu starts from 2,500m2, and the warehouse leasing area starts from 4,896m2. Being located in the Dinh Vu – Cat Hai Economic Zone, GNP Nam Dinh Vu offers investors the highest investment incentives in the Vietnamese market:

• Corporate income tax rate of 10% for 15 consecutive years, calculated continuously from the first year the enterprise generates revenue from its operations benefiting from the industrial park investment incentives, and 20% in the subsequent years.
• Exemption from tax for 4 years, and a 50% reduction in the tax payable for the following 9 years, calculated continuously from the first year the enterprise earns taxable income from the investment project. In case the enterprise has no taxable income in the first 3 years from the date of earning revenue from the investment project, the tax exemption and reduction period will be calculated from the fourth year onward.

Manufacturing factory in Ha Nam – GNP Dong Van 3

Situated in Ha Nam, GNP Dong Van 3 manufacturing factory boasts a scale of 16 hectares and economic advantages due to its strategic location:

• Distance to Hanoi Capital: 50 km
• Distance to Noi Bai International Airport: 80 km
• Distance to Cat Bi International Airport: 130 km
• Distance to Lach Huyen Port: 120 km
• Distance to Hai Phong Port: 130 km

Dong Van 3 Industrial Zone is currently prioritizing certain industries, including:

• Mechanical engineering, assembly, automobiles, and motorcycles.
• Electrical, electronic, telecommunications, and information technology.
• Support industries, new materials.
• Other supporting industries.

Manufacturing factory GNP Dong Van 3 in Ha Nam

Simultaneously, GNP Dong Van 3 also features spacious internal roads, a large parking area, a fire protection and prevention system, and a 24/7 security system to facilitate smooth, safe, and convenient production processes for businesses.

The minimum leasing area for this factory is currently 2,500 m2, and for the warehouse, it is 9,000 m2.

Conclusion

Overall, leasing production factories has provided flexible, cost-effective solutions for businesses in Vietnam, including FDI enterprises. Moreover, this real estate model has the potential for further development due to its flexibility and lack of constraints, enabling businesses to mitigate unnecessary risks associated with self-investment in constructing their own factories.

In response to these business needs, Gaw NP Industrial continually enhances and upgrades its offerings, aiming to introduce more high-quality industrial real estate projects. The goal is to meet the demand for reliable and high-quality production factories for both domestic and international businesses.

 See more: Reasons to rent a factory with office space in Vietnam

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