Thai Nguyen has become an industrial highlight due to its advantageous location, effective support policies, and complete infrastructure. The increase in investment has led to a high demand for rental factories to meet the production needs of businesses. In the article below, let’s join Gaw NP Industrial in analyzing the detailed industrial growth drivers and the demand for rental factories in Thai Nguyen.

1. Drivers of industrial growth in Thai Nguyen

Many motivational factors in industrial growth in Thai Nguyen, which include the strong growth of some mainstream industries, beneficial policies from the local authorities, investments in the infrastructures and the attraction to overseas investors. These elements have built up a strong base and helped Thai Nguyen to become one of the important industrial capitals of Vietnam.

Thai Nguyen – one of the most important industrial centers in Vietnam

1.1 Key industries in Thai Nguyen

Thai Nguyen has become one of the main industrial centers of Vietnam, especially in electronics manufacturing and metallurgy. With the presence of big companies such as Samsung and Foxconn, this province attracted most of the foreign direct investment (FDI) and created thousands of jobs.

Some main industries include electronics manufacturing, mechanical engineering, food processing and textiles. Among these, electronics manufacturing, led by Samsung, accounts for the biggest proportion of 90% in the total industrial value of Thai Nguyen.

1.2 Support policies from the government and local authorities

Thai Nguyen with many policies which promotes the industrial development

The government and local authorities have implemented numerous support policies to promote industrial development in Thai Nguyen. These policies include tax reductions, financial support, administrative procedure reforms, and the development of technical infrastructure. Resolution No. 58/NQ-CP has been applied to assist businesses in adapting, recovering, and developing sustainably after the COVID-19 pandemic​​.

To encourage investment in industrial zones, Thai Nguyen province offers corporate income tax (CIT) incentives, including the “2-year exemption and 4-year reduction” policy – exempting CIT for the first 2 years and reducing it by 50% for the following 4 years​​. Additionally, Decision No. 222/QD-TTg on the “Thai Nguyen Provincial Planning for the period 2021-2030, with a vision to 2050” clearly defines the province’s industrial development strategy, focusing on high-value-added and advanced technology industries​​.

1.3 Investment in infrastructure, development of industrial parks and industrial clusters

Thai Nguyen has strongly invested in the infrastructure for developing industrial parks and clusters. The province already has 5/7 areas in cooperating, attracting 269 investment projects and 199 currently in cooperating organizations.

Some areas such as Song Cong II, Yen Binh and Diem Thuy are already expanding to preserve the continuous growth in organizations. Yen Binh, with its location and Samsung Thai Nguyen factor, have already become a best option for investors.

1.4 Abundant workforce

Thai Nguyen has an abundant labor force

Thai Nguyen has an abundant workforce, accounting for more than 40% in total laborers working mainly in the industrial field. Thai Nguyen also focused on enhancing the work-related experiences for the workers to meet the requirements of some industrial companies. Many places provide vocational training, which collaborate with many organizations to help in providing high trained workers to fit in many criteria of some companies.

1.5 Foreign investment and its impact on industrial growth

Foreign investment plays an important role in Thai Nguyen’s industrial development. Some big companies such as Samsung, Foxconn and Panasonic had strongly invested in many major projects, creating many jobs and promoting economic growth of Thai Nguyen. These companies also make Thai Nguyen a profitable attraction to other investors and contribute to the development of supporting industries and increase product localization rate.

2. Impact of industrial growth on the rental factories for real estate

The growth of industry in Thai Nguyen has created a huge demand in rental factories. New companies and overseas investors have come to Thai Nguyen to construct factories for productions, which led to a high demand for high quality and well-located factories.

Ready-built factories’ rental prices have increased due to high demands, reaching 4-5 USD/m2/month, depending on the location and utilities of each industrial park. Industrial parks such as Yen Binh and Song Cong II provide column-less factories, utilize the area for manufacturing and are equipped with modern infrastructure.

3. Criteria for selecting factories suitable for business needs

Criteria of factory before renting

Before renting a factory, businesses need to look out for many factors, such as:

• Location: Factories need a critical position, convenient for shipment and connected to many main traffic routes. For example, Yen Binh is located near Hanoi and many main routes, which is convenient for transporting and trading.
• Infrastructure: Factories must have modern equipment such as fire protection systems, three-phase electricity systems, internal roads, parking lots and 24/7 security cameras. These equipment provided a secure and effective working environment for businesses.
• Design and area: Factories must have a column-less design to maximize the area for producing and manufacturing, which can suit many businesses.
• Rental prices and policies: A reasonable price and government policies such as exempted and reduced taxes, financial support and revolutionized basic procedures, also an important factor for businesses to consider before choosing rental factories.

4. GNP Yen Binh 1& GNP Yen Binh 2 – Factories in Thai Nguyen meet the needs of businesses

When choosing a rental factory in Vietnam, many businesses need to consider some factors such as location, infrastructure, supportive services and the most important is the reputation of the owners of rental factories. Therefore, one of the most trustworthy for rental factory units, Gaw NP Industrial, a top choice for many businesses to look for high quality manufacturing factories.

Gaw NP Industrial is one of the top specialized industrial real estate markets in Vietnam. With longstanding experiences and impressive background investments, Gaw NP Industrial provides factory leasing solutions with modern infrastructure, suitable for various businesses, from light to heavy industry.

GNP Yen Binh 1 & GNP Yen Binh 2 – Factories for rent in Thai Nguyen

GNP Yen Binh 1 and GNP Yen Binh 2 have strategic locations

GNP Yen Binh 1 & GNP Yen Binh 2, located in a 29.5 ha area, with a critical position, about 1 hour ride to Hanoi through Hanoi – Thai Nguyen Expressway. With a location near Samsung factory, as well as a only 40-minute ride to Noi Bai International Airport, these two factories bring a huge advantage in logistics and market approach.

Modern amenities and infrastructure

• Modern infrastructure: The factories are fully equipped with amenities such as an advanced fire protection system, 31m wide internal roads, large parking areas, and a common canteen, providing a safe and efficient working environment.
• Large production space: With a total area of nearly 30 hectares and over 188,000m2 of ready-built factories, offering various sizes from 2500m2 upwards, suitable for the needs of different businesses.
• Column-free design: The factories feature a column-less design that optimizes production space, with an 8m distance between side columns and a column-less span of up to 51m.

GNP Yen Binh 1 & GNP Yen Binh 2 – outstanding with column-less design factories

Business advantages

• Priority industries: The factory is suitable for many industries such as metal mold manufacturing, electronics accessories, automation products and mechanical machinery for mobile devices and other.
• Convenient transportation connections: With its location, GNP Yen Binh 1 & GNP Yen Binh 2 allow businesses to traverse to some major markets such as Hanoi, Bac Ninh and Bac Giang, as well as the border gate between Vietnam and China.

With advantages in location, modern infrastructure, and flexible design, GNP Yen Binh 1 & GNP Yen Binh 2 are ideal choices for businesses seeking production space in Thai Nguyen.

>>> See more: High demand for factory rentals in Thai Nguyen driven by its strategic location

Conclusion

The strong development of the industrial sector in Thai Nguyen, supported by government incentives and infrastructure investments, has created a significant demand for rental factories.

If your business needs to rent a factory in Vietnam, please contact our Hotline at +84 789 75 77 88 to receive specific and detailed consultation from Gaw NP Industrial’s expert team.

>>> See more: A step-by-step guide to renting a ready-built factory at GNP Yen Binh 2 in Thai Nguyen

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