In the increasingly competitive business environment, finding cost-saving solutions for production infrastructure projects is crucial. Renting a factory has become the top choice for businesses, especially small and medium-sized enterprises looking to optimize their financial resources while quickly accessing high-tech production zones .

1. Cost of building a factory

Businesses need to identify the costs when deciding to build a factory

When deciding to build a factory, businesses need to identify the relevant costs to create a comprehensive budget, thereby managing and optimizing economic efficiency. Below are two main components that constitute the total cost:

1.1. Reference construction costs for a factory

The construction cost of a factory is one of the most critical components of the overall budget estimate. These costs depend on various factors, including:

• Location: Costs can fluctuate depending on land prices and the ease of transporting materials and equipment to the site.
• Scale: A large factory requires more materials and labor, increasing the total cost.
• Design: Distinctive design requirements not only demand professional construction work but also incur costs for particular materials.
• Construction standards: Building a factory with high industrial standards will result in higher costs than standard specifications.

The unit price is a crucial factor in completing a factory

The specific unit price will depend on contractor quotes and the building materials market at that time. A provisional unit price typically ranges from 3-7 million VND/m2. However, businesses may have to pay more for building a factory with a complex design or advanced construction materials and technology.

1.2. Building materials for the factory

Building materials not only determines the sustainability of the factory but also directly impacts the overall cost. Deciding whether to purchase prefabricated materials or raw materials requires careful consideration. To save costs, businesses should conduct an investigation and select materials from reputable suppliers, while considering bulk purchases to obtain better prices.

Materials determine the sustainability of the building

To minimize environmental impact, the choice of recycled building materials should be highly considered . These materials often cost less and simultaneously enhance the corporate identity regarding social responsibility and environmental protection.

2. Completion timeframe of factory construction

The completion timeframe of a factory is a crucial factor that directly affects the operational and production plans of any business. In practice, any delays in the construction process not only lead to increased direct costs such as labor, materials, and machinery but also interfere with potential profits as these delays prevent the business from starting production early.

Determining the completion schedule is extremely important

To ensure that the construction schedule is maintained effectively, close coordination with contractors, meticulous planning, and supervision of both personnel and materials are essential. Planning must also consider objective factors such as weather, working conditions, and potential risks, with preventive measures or readiness strategies to handle issues as they arise.

Applying advanced technology will shorten the factory construction time

Traditional construction processes usually take 4 to 6 months, but the specific timeframe can vary depending on the scale and specifics of each project. In some cases, where technical requirements are not too complex, the completion time can be shortened. For factories using advanced technology, such as prefabricated factories, the quick installation process and the production of parts at the factory can significantly reduce the time needed to set up production operations.

Prefabrication technology offers significant benefits by reducing on-site construction time, minimizing waste, and optimizing material usage. Moreover, using pre-made components also means less dependence on weather and other external factors that often impact traditional construction schedules

3. Why renting a ready-built factory is suitable for small and medium-sized enterprises

Renting a ready-built factory is becoming increasingly popular, especially for small and medium-sized enterprises (SMEs). The various benefits of this option are not only limited to saving initial costs but also include quick access to production facilities and scalability. Here are some key reasons why renting a ready-built factory is appealing:

3.1 Cost-savings

Building a factory requires a large financial investment, from purchasing land to design and construction costs. For SMEs, this can create significant financial pressure, especially if they are in the investment and business expansion phase. By renting a ready-built factory, businesses can avoid spending a large initial capital outlay, ensuring better cash flow and allowing them to focus financial resources on production activities and market expansion.

3.2 Immediately come into operation

One of the biggest challenges in building a new factory is the time from the start of construction to when the factory is ready for operation. During this process, businesses face not only material and labor costs but also opportunity costs due to the inability to produce. By renting a ready-built factory, businesses can eliminate this waiting period entirely and quickly begin production. This means saving time and enhancing profitability shortly after signing the lease contract.

3.3 Ready-built factories under 5,000m2 are frequently available

Small and medium-sized enterprises often do not require large factory spaces. Instead, they tend to look for spaces that meet their current production needs while allowing for future expansion. Today’s factory rental market has evolved to accommodate this demand, offering various options in terms of size and structure. Investors are aware of this demand and have developed small-scale ready-built factory projects, providing businesses with a wide range of choices.

4. Renting a factory from Gaw NP Industrial – the optimal solution for businesses

Gaw NP Industrial – a collaboration between Gaw Capital Partners and NP Capital, has established itself as one of the leading industrial real estate developers in Vietnam. Combining the financial strength and asset management experience of Gaw Capital Partners—a fund with total assets of nearly USD 35.2 billion—and NP Capital’s expertise in the Vietnamese real estate market, Gaw NP Industrial has developed high-quality industrial real estate projects. Their aim is not only to become a leading developer in Vietnam but also to extend their influence throughout the Asia-Pacific region.

The Gaw NP Industrial project is a highlight of the company’s investment and development activities, offering high-quality ready-built factory rental solutions in convenient locations, thereby supporting businesses to achieve high efficiency in production and business operations. Gaw NP Industrial’s international network and regional connections provide a strong competitive advantage, helping businesses expand their operations and service areas. With strategic locations, professional management, and comprehensive solutions, Gaw NP Industrial provides clients with not just a workspace but a holistic approach to optimizing production processes and sustainable business growth.

Gaw NP Industrial, a unit for factory rentals

Building on the success and reputation from the partnership between two renowned entities, GNP Industrial has developed numerous pre-built factory and warehouse rental projects, along with premium rental services in potential industrial zones in Northern Vietnam. This contributes to the sustainable development of the industrial real estate sector in the region and provides optimal solutions for the production and business needs of enterprises.

Renting a factory from GNP Industrial offers the optimal solution for businesses looking to expand or establish production operations in Vietnam. With outstanding advantages, GNP Industrial provides rental services from the Gaw NP Industrial project, meeting the high demands of both domestic and international manufacturers.

GNP Industrial’s projects include:

– GNP Nam Dinh Vu – Hai Phong: The factory area at GNP Nam Dinh Vu is located in the Dinh Vu – Cat Hai industrial zone, with a scale of 16.9 hectares and over 101,000m2 of factory space for rent. It serves businesses looking to access seaports and the northern market. The ideal location near Hai Phong port and Lach Huyen Deep-sea strongly supports import and export activities.

GNP Nam Dinh Vu located in Dinh Vu – Cat Hai industrial zone, Hai Phong province

– GNP Yen Binh – Thai Nguyen: With a total land area of 29.5 hectares and ready-built factory space providing more than 188,000m2 to the market, GNP Yen Binh is located in a prime location in Pho Yen, Thai Nguyen. The project is near the Hanoi – Thai Nguyen expressway and adjacent to the Samsung factory, promising to provide modern and convenient production space for high-tech enterprises.

GNP Yen Binh located in a prime location in Pho Yen, Thai Nguyen province

– GNP Dong Van 3 – Ha Nam: This project offers over 100,000m2 of ready-built factory space, located in the Dong Van 3 industrial zone, Ha Nam province. GNP Dong Van 3 is designed with synchronized, modern infrastructure and convenient transportation, connected to major routes such as National Highway 1A and the Hanoi – Ninh Binh expressway.

GNP Dong Van 3 located in Dong Van 3 industrial zone, Ha Nam province

Choosing to rent a factory from GNP Industrial helps businesses save cost, construction time, and management efficiency. The strengths include modern infrastructure, strategic locations, and smart transportation systems. GNP Industrial provides an ideal environment for businesses looking to quickly access domestic and international markets, supporting both large projects and small and medium enterprises with flexible production space needs.

5. Conclusion

Renting ready-built factories is a smart strategy, offering numerous benefits such as saving initial investment costs, minimizing risks, reducing construction waiting time, and quickly bringing the factory into production. For small and medium-sized enterprises, adopting this approach can be a crucial turning point, helping them strengthen their market position and achieve sustainable development in the future.

See more:

>> 8 advantages of renting factories in Vietnam

>> Reasons to Rent a Factory with Office Space in Vietnam

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