Currently, with the fierce market competition, businesses always require the production and business process to be continuous. Along with market expansion, enterprises always need to pay more attention to production expansion. Companies have a hard time deciding to Rent Factory or Build Factory.

Let’s take a look at each options to help businesses consider whether building a new factory, or renting a factory will be more suitable for them.

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Choosing to Build your own Factory:

Pros:

• Investor have the freedom to build the factory from scratch with construction standards fitting their production needs
• Suitable for Large-scale projects
• Suitable for Long-term use

●   Annual tax depreciation deducted from business expenses

●   Can liquidate assets after the end of the production process

Cons:

• Initial Investment cost is large
• Large amount of Capital is buried in the project, can not withdraw capital. If you cannot guarantee a stable customer order source, the risk is very high
• Not suitable for Small and Medium scale projects with small lease area
• Fixed location and lease term up to 50 years
• Takes more time to begin operation due to construction time
• Investor need to have knowledge in construction for factory, real estate, etc.

If Investor choose to Rent a Factory

Pros:

• Low initial cost
• Can freely choose factory location
• Flexible Capital and lease term
• Focus on setting up production lines, recruiting labor
• No construction time, quick production setup
• Low initial cost
• Small lease area for small & medium business
• Take advantage of available facilities in the rental area

●   Expense of rent is directly deducted from the enterprise's production cost

Cons:

• Depends on the factory design of the factory developer
• Additional costs for renovating factory according to need
• Higher cost in long term

Why should Investor rent factory in Loc An – Binh Son Industrial Park?

Besides the above pros of renting a factory, Loc An – Binh Son IP Factory have its own advantages:

When renting factory in Loc An – Binh Son IP:

• Strategic location: Next to Long Thanh Airport; Across Long Thanh airport resettlement zone; 30 km (45 minutes) to HCM city business district via adjacent HCM – Long Thanh – Dau Giay Expressway

●   Factory is constructed according to international standards by New Generation Construction & Development Corporation.

More Details: The Info Loc An Binh Son Industrial - Dong Nai, Long Thanh

• Investor need not to worry about clearance planning
• The factory is located in a separate area, with a dedicated security team for the industrial park.
• Complete infrastructure system: waste treatment, wastewater treatment, water supply, power supply, greenery area etc.

Lease price at Loc An – Binh Son IP rental factory

In order to obtain the factory rental price, investor need to make sure the purpose of renting the factory such as business industry, rent demands, location of factory, size of factory, lease term, etc.

All of this affects the rental price of the factory.

Enterprises producing food, leather shoes, need to have separate waste treatment area and/or cold storage. Therefore, the cost of renting a workshop for this type of business will be higher than other businesses. For businesses in logistics, storage of goods and raw materials, Factory rental costs will be lower.

For Investor manufacturing of light industry, garment, auxiliary industries, assembling, etc., there will have an additional cost of equipment assembly. Moreover, Investors should discuss with Factory lessor about factory renovation.

Usually, Factory developers have incentives for investors who rent large factory areas. Therefore Investor should consider their decision on factory leasing and prodution expansion in a way that can maximize their profits.

The current rental price of the factory in Loc An Binh Son Industrial Park - Dong Nai province of New Generation Construction & Development Corporation ranges from VND 100,000/m2/month to VND 120,000/m2/month. Minimum leasing area is from 2000 m2.

Call now: (+84) 948 859 999 for lease consulting.