Renting ready-built factory space involves more than just looking at the “number”. Various crucial factors need careful considerations. In this article, Gaw NP Industrial will provide an overview of rental rates for RBFs in Vietnam and important considerations that businesses should bear in mind when choosing a space that aligns with their needs.

Rents list for renting manufacturing factories in the Northern region

The manufacturing factory market in the Northern region

According to Cushman & Wakefield, in the third quarter of 2023, the ready-built manufacturing factory market in the Northern region has become lively with the opening of 4 new projects in Hung Yen, Hai Phong, and Bac Ninh, providing a total area of about 264,000 m2 for the market.

Although the occupancy rate in the quarter is at 71% (a decrease of 3% compared to the previous quarter and a decrease of 13.4% compared to 2022), leasing activities for ready-built factories in the Northern region remain vibrant.

Net absorption is about 97,000 m2, an increase of 27.6% compared to the previous quarter. Enterprises in sectors such as electronics, computers, optics, machinery, and equipment are still major players in factory rentals, especially large manufacturing enterprises in industrial parks.

According to Cushman & Wakefield’s forecast, the Northern region is expected to welcome about 1.1 million m2 of ready-built factories by 2026. Demand for factory rentals is projected to continue rising, followed by investment and the relocation of large manufacturing enterprises from China to Vietnam. However, in the context of intense competition, the pace of increase in rental rates for ready-built manufacturing factories may be slower than before.

Manufacturing factory market in the Northern region

Reference rental rates for manufacturing factories

The average rent for ready-built factories reached $4.9 USD/m2/month, up 1.4% from the previous quarter and 4.5% compared to the previous year. With the highest rental growth rate, Vinh Phuc recorded an increase of up to 18%.

Rents list for renting manufacturing factories in the Southern region

Manufacturing factory market in the Southern region

According to information from Cushman & Wakefield, in the third quarter of 2023, the ready-built factory sector in the South saw new projects in Dong Nai, with an area of up to 32,500m2. Ms. Trang Bui stated that, alongside the recovery of the industrial sector, factory rental activities have become more vibrant. The occupancy rate increased by 2.2%, equivalent to 143,000m2.

The demand for ready-built factories in the South is diverse across various industries such as textiles, chemicals, and electronics. Dong Nai leads in rental demand, accounting for nearly 60% of the total absorption.

Cushman & Wakefield predicts that the ready-built factory market in the South will continue to be lively, with approximately 2.5 million m2 of manufacturing factories being introduced to the market from late 2023 to 2026, with the participation of both domestic and foreign investors.

Forecasts indicate that the absorption rate of ready-built factories will continue to increase in the coming quarters, thanks to major players shifting their manufacturing bases from China to Vietnam.

Manufacturing factory market in the Southern region

Reference rental rates for manufacturing factories

Despite the increase in occupancy rates, the average rental rate of manufacturing factories in the Southern region has remained stable both quarterly and annually. Specifically, the rental rate is at $4.7 USD/m2/month. Most projects maintain unchanged rentals amid fierce competition among major supply sources.

However, in locations with high demand such as Dong Nai and Ba Ria-Vung Tau, rental rates have seen the highest growth rate, around 2.4-2.5% annually.

Considerations when renting manufacturing factories

Rents for manufacturing factories

When renting a manufacturing factory, the rental rate should be one of the most important factors to consider. Rental rates will vary depending on the region, convenient location, area, facilities, environment, etc.

To choose a factory with a rental rate that suits your needs and budget, research and compare rental rates from different providers to ensure that your business is getting reasonable rent based on the current market.

Furthermore, contract terms such as: Rent in the contract, lease term, conditions for rent increases, payment terms should also be carefully considered to avoid future complications.

Rental rates for manufacturing factories should match the needs and budget

Factory Area

The factory area needs to be suitable for the industry and production scale of the business. Businesses need to understand the workforce, machinery, and inventory to choose a suitable factory area.

Additionally, businesses should also consider the design of the factory including length, width, height, and whether the factory model is suitable or not.

Services – Facilities

Services and facilities are two important factors when renting manufacturing factories. Here are some points to consider:

Electricity and water supply: During production, electricity and water supply play a crucial role. Ensure that the factory has a stable and sufficient supply of electricity and water to meet your needs. Consider factors such as electrical load, water pressure, and energy-saving capabilities.

Security and safety: Check whether the factory’s security system is modern, including surveillance cameras, and safety measures for workers. This helps protect your assets and employees.

Maintenance and repair services: Maintenance and repair of manufacturing factories often occur frequently. Consider whether the investor provides fast and efficient maintenance and repair services. This ensures that the factory operates smoothly and does not cause disruptions in the production process.

Surrounding infrastructure: Consider not only the infrastructure inside the factory but also the surrounding amenities. Are there convenience stores nearby, convenient transportation, and other support services? These factors can affect the business’s performance and convenience for employees.

Services and amenities are two important factors when renting manufacturing factories

Investor

What considerations do businesses need to grasp in choosing a good investor?

Before selecting a factory for rent, businesses should research the investor, such as their level of credibility and financial stability. Additionally, businesses should also pay attention to policies and customer care attitudes. Good customer care policies will help address business issues quickly and effectively.

Why choose Gaw NP Industrial’s ready-built factories

Gaw NP Industrial is one of the leading companies in factory rental in Vietnam. With many years of experience and reputation, Gaw NP Industrial has demonstrated its professionalism and reliability.

Gaw NP Industrial’s projects

– GNP Dong Van 3 located in Dong Van 3 Industrial Park in Ha Nam province with an area of ​​16 hectares.

– GNP Nam Dinh Vu: This ready-built factory is constructed in Nam Dinh Vu Industrial Park – Hai Phong with an area of ​​16.9 hectares.

– GNP Yen Binh 1 & GNP Yen Binh 2 with a total area of ​​29.5 hectares, located in Yen Binh Industrial Park, Thai Nguyen province.

Ready-built factories by Gaw NP Industrial

Here are the reasons why you should choose Gaw NP Industrial’s ready-built factories:

Convenient geographical location

Gaw NP Industrial has invested in building factories in strategic locations, near seaports, airports, and major transportation routes. This facilitates convenient and fast transportation of goods and import-export activities. The convenient geographical location also makes it easier to access markets and customers.

Quick and cost-effective

Gaw NP Industrial’s ready-built factories are designed and constructed to high standards, ensuring both quality and safety. Choosing to rent ready-built factories helps businesses save time and construction costs. Businesses don’t have to wait for the construction process to complete but can quickly start production and business operations.

Flexible scalability of production

Gaw NP Industrial offers various factories with different sizes and scales, from small to large, suitable for the production needs and expansion of businesses. This flexibility allows businesses to adjust their production scale response to market demands without significant infrastructure investments.

Complete legal procedures

Gaw NP Industrial has completed the legal procedures related to factory rental. Businesses only need to negotiate and sign the rental contract, without worrying about complex procedures. This helps businesses save time and effort, allowing them to focus on core business activities.

Renting a factory at Gaw NP Industrial comes with complete legal procedures

Conclusion

Choosing and pricing production factory rentals requires careful consideration. Therefore, understanding the rental rates and important considerations above can help you make the right decision when choosing a production factory for rent. Don’t miss out on useful information in Gaw NP Industrial ‘s next articles to get more useful insights into renting production factories !

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