Vietnam has witnessed a boom in the industrial and commercial sectors in recent years. In this context, the demand for production and storage space is increasing rapidly, leading to the development of ready-built Factories and Factory projects Built to suit in Vietnam. This is a solution many businesses choose to save costs and time.

What are Built to Suit Factories?

Built to suit Factories are a type of Factory designed and constructed specifically to meet the specific needs of each investor. The hallmark of this type of Factory is the flexibility in the design and construction process, adjusted to fully meet the standards and special functional requirements of each industry.

Factories built to suit  in Vietnam are chosen by many businesses

The special point of building custom Factories is that each business sector has different requirements for space, from offices to manufacturing plants, from transportation infrastructure to Factories. Therefore, the Built to suit Factory model will optimize the solution to these difficulties, ensuring that the specific characteristics of each industry and the individual requirements of each investor are met most effectively.

>>> See more: Benefits of selecting a factory with office space in Vietnam

Considerations when choosing factories built to suit in Vietnam

Construction Time

The project schedule needs to be agreed upon by both parties

Construction time is one of the most important factors to consider when selecting a contractor to build custom Factories. Businesses should inquire about the projected timeline of Factory projects, including the start date, the completion time for each major phase, as well as the entire construction process.

Typically, for industrial land, businesses will take from 1 to 2 years to complete procedures, but for Built to suit Factories, businesses can shorten the construction time to between 8 to 12 months, including the construction process and related legal procedures.

Therefore, choosing experienced and well-staffed Factories will ensure construction deadlines are met. It is advisable to prioritize Factories that have completed many similar projects, on a large scale, and met deadlines accurately.

Costs

The construction and operation costs of Built to suit Factories will help businesses save more; this is a crucial and highly important factor. Businesses need to consider comparing the costs of various types of Factories. However, the focus should not be solely on the cheapest price but also on reputation, capability, and quality of the construction.

Consider costs when choosing Factories built to suit in Vietnam

Some types of expenses when choosing Built to suit Factories for rent in Vietnam::

• Construction permit fees
• Construction materials costs
• Labor costs
• Equipment and machinery costs
• Design, consulting, and supervision costs
• Waste treatment and environmental sanitation costs
• Contingency costs, cost overruns
• Other incidental fees

If the difference between options is not significant, businesses should prioritize Factories with better reputation and capabilities.

Lease Terms

Defining lease terms is a crucial legal matter

In the process of selecting factories built to suit in Vietnam, it is essential for businesses to understand and specify lease terms, which is a vital factor for the success of the project. Below are some lease terms that businesses need to consider:

• Lease term: Clearly define the lease term for the Factory, ensuring it reflects the project’s needs accurately and does not pose any risks regarding usage time.
• Rental price: Adjust the rental price to ensure competitiveness and alignment with the project budget, considering associated costs such as maintenance, services, and other expenses.
• Maintenance and repair provisions: Clarify responsibilities between the landlord and the business for Factory maintenance and repair throughout the lease period.
• Provisions for changing the use function: Adjust regulations related to changing the use function of the Factory, including expansion or reduction of usage area.
• Contract termination provisions: Clearly define conditions and regulations for lease contract termination, ensuring transparency and fairness for both parties.
• Insurance provisions: Specify insurance requirements that the lessee needs to meet, as well as terms related to compensation in case of damage.
• Legal compliance: Ensure that the lease contract fully complies with legal regulations and relevant provisions in Vietnam…

Examining and understanding these lease terms will help ensure a smooth and efficient process of selecting built-to-suit Factories in Vietnam.

>>> See more : Increasing interest in factory rentals in Vietnam

Top Built-to-Suit and Ready-Built Factories in Vietnam

Gaw NP Industrial, a prominent name in the industrial real estate sector in Vietnam, proudly stands as a leading provider of both ready-built and built-to-suit Factories.

Gaw NP Industrial is the result of collaboration between Gaw Capital Partners – a leading investment fund in Asia, with total assets of nearly $35.2 billion USD, and NP Capital – one of the top investment and real estate development funds in Vietnam, both entities having significant influence in the industrial real estate sector in Vietnam.

The commitment of Gaw NP Industrial is to deliver increasingly high-quality industrial real estate projects to the Vietnamese market. The larger goal is to become a leading developer in this field in Vietnam and potentially expand across the Asia-Pacific region. This mission aims to meet the growing demand for high-quality and high-efficiency industrial space in the region.

One of Gaw NP Industrial’s major projects in Vietnam, comprising both built-to-suit and ready-built Factories, is GNP Nam Dinh Vu and GNP Dong Van 3.

Ready-Built and Built-to-Suit Factories in Vietnam – GNP Nam Dinh Vu

GNP Nam Dinh Vu, a large-scale industrial park spanning 16 hectares in Hai Phong, is situated in the Nam Dinh Vu Industrial Zone, Hai An District, Hai Phong. It appeals to businesses with various high-quality Factory options catering to both storage and manufacturing needs.

The GNP Nam Dinh Vu project offers a variety of high-quality Factory options

It stands out with its large scale and optimized measures such as: Factories designed to international standards – column-free, creating vast spaces for storage and production. The flexible open design is suitable for various business operations, and the Factories are equipped with modern amenities such as security systems, fire protection, utilities, ventilation, and lighting. Notably, GNP Nam Dinh Vu has achieved EDGE certification for energy-saving solutions.

With its prime location, the project is an ideal destination for transportation and logistics businesses. Seaports, airports, and deep-water ports are connected by major highways, providing favorable conditions for goods transportation. This establishes a significant competitive advantage for GNP Nam Dinh Vu.

Distances from GNP Nam Dinh Vu to key locations:

• Cat Bi International Airport: 13 km (20 minutes)
• Lach Huyen International Deep Water Port: 11 km (15 minutes)
• Hai Phong Port: 15 km (25 minutes)
• Van Don International Airport: 100 km (80 minutes)
• Cai Lan Port: 49 km (48 minutes)
• Noi Bai International Airport: 130 km (110 minutes)
• Hai Phong City Center: 16 km (28 minutes)
• Hanoi Capital: 122 km (100 minutes)

The favorable location of GNP Nam Dinh Vu connects to key locations

Additionally, favorable tax policies are one of the attraction points for businesses, with low tax rates and exemptions from import and export duties in the initial period. This not only helps businesses save costs but also enhances development activities.

Businesses renting Factories at GNP Nam Dinh Vu also benefit from many professional support services such as Factory management, cargo handling, freight transportation, cargo insurance, and legal consultation, creating favorable conditions for their business operations.

Ready-Built and Built-to-Suit Factories in Vietnam – GNP Dong Van 3

Similar to GNP Nam Dinh Vu, GNP Dong Van 3 is a Factory project that meets international standards, with many outstanding advantages in terms of area, convenient location, benefits, and attractive tax incentive policies.

GNP Dong Van 3 with EDGE energy-saving certification

The project covers an area of ​​16 hectares, with Factories designed column-free to optimize space utilization. The maximum roof height is 6.5 meters, with a large floor load capacity of up to 2 tons/m2. Equipped with modern facilities such as fire protection systems, security, utilities, ventilation, and lighting, the project ensures safety and efficiency standards for businesses. Furthermore, GNP Dong Van 3 has been certified with EDGE energy-saving certification.

GNP Dong Van 3 boasts an extremely advantageous geographical location for transportation and logistics operations:

• To Hanoi Capital: ~50 km (60 minutes)
• To Noi Bai International Airport: ~80 km (70 minutes)
• To Cat Bi International Airport, Hai Phong: ~130 km (100 minutes)
• To Lach Huyen International Deep Water Port: ~120 km (100 minutes)
• To Hai Phong Port: ~130 km (100 minutes)

With its prime geographical location, the project facilitates transportation and logistics operations, close to important transportation arteries such as National Highway 1A, Cau Gie – Ninh Binh Expressway, National Highway 38, and the North-South Railway. Businesses at GNP Dong Van 3 can easily access seaports, airports, and reduce storage and transportation time.

The Cau Gie – Ninh Binh Expressway connects GNP Dong Van 3 to key areas

The preferential tax policy is a strength of the project, with a tax exemption for the first 4 years and gradually reduced over the following 9 years. Businesses are also exempt from import taxes on machinery and equipment, helping to alleviate financial pressure from the outset.

Moreover, there are opportunities to negotiate reduced Factory rental fees during the installation of machinery, assistance with financial procedures, and labor training. With these incentives, GNP Dong Van 3 is not only an effective storage space but also an optimal choice for cost savings and maximizing profits from the early days of business operations.

Conclusion

Factories Built to suit in Vietnam not only meet the increasingly diverse needs of businesses but also serve as a strong catalyst for innovation and development in the industrial sector. With strategic locations, international standards, and favorable tax policies, these projects not only create modern working environments but also help businesses save costs and develop.

>>> See more:Key elements to consider when renting a factory in Vietnam

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