Is renting a Factory in Industrial Zones more efficient than constructing a new one?

Besides, with large capital investment, especially on fixed assets. With respect to land law in Vietnam, the acquisition of land use rights, initial purchase and depreciation costs is extremely high. This is the reason why businesses have"headache" in planning business. And to achieve the optimal plan, business enterprises have chosen to rent factories.

1, Factory leasing - When should you choose to rent a factory? 

Before a business plan, managers will always have many directions for their projects. And each option will have different advantages and disadvantages. Therefore, when choosing whether to rent a factory or build a new, we need to consider the benefits of the project.

1.1.1 Saving initial capital investment 

When starting a business, you save a considerable amount of capital invested in fixed assets: premises, factories, protective equipment, attached infrastructure, ....

Related issues such as capital rotation, costs for factory equipment and machinery, will also cost you  a considerabe amount. So by choosing a ready-built factory can save you a large part of your initial investment.

1.1.2 Reduce depreciation costs when renting a factory

Some business projects when established, depreciation costs must be completed within the first 3-5 years. While factory rental costs will be deducted directly from the annual fixed costs. This can help reduce taxes in operation.

1.1.3 Easy choose "prime" locations 

Optimizing transportation - utilizing local human resources - is an advantage that you may not always be able to achieve when choosing a fixed factory investment.

The choice of factory location is extremely important while locating the business. If your business operates in logistics, you should choose a location near the port area, convenient for logistics. But if you work in the garment industry, leather shoes, or food manufacturing, it is reasonable to put your factory in a centralized industrial park, or on the edge of a crowded residential area.

So, choosing a factory for rent will be more convenient when you want prime locations.

1.1.4 Advantages in logistics when renting Factory

Thanks to the choice of a prime location, the transportation of goods has thus become easier. From there, also save shipping costs.

2, Various factories for lease for business purposes 

If you are wondering whether the factory will be limited and not suitable for producton? Rest assured because during the development of factory leasing, developers in this field have always calculated the advantages that best suit the business and manufacturing industries.

2.1 Frozen factory for rent 

For cold storage warehouses, there are many related standards such as insulation, cooling technology, ... which can cost you a fair amount of investment. In particular, standards for the cold storage are also important.

Currently, many factories for rent meet most of these requirements of tenants of cold storage warehouses.

2.2 Warehouse for Logistics purposed 

For rental logistics warehouse/factories, in addition to the standard infrastructure system, the location of logistics is also important for businesses. The best location is near transit areas. However, depending on the nature of the business, you can also consider to locate adjacent to residential areas or within Industrial zones.

See more: NGJSC's Loc An Binh Son Convenient location for warehouse.

2.3 Food factory 

Food industry factories will often need favorable locations, convenient for workers to travel to, or at specific locations allowed by law.

So before proceeding to rent at a location, you should carefully consider your business plan, and choose the appropriate warehouse location. 

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