22-04-2025

Factory construction process in Vietnam – 2025

The construction of a factory is a pivotal phase that directly influences both the operational performance and the longevity of the facility. To ensure optimal return on investment, the project must be executed with technical precision, completed on schedule, compliant with governmental regulations, and aligned with all applicable safety standards.

In this article, KTG Industrial will walk you through the technical-standard factory construction process in detail.

What are the key stages in factory construction?

As soon as the client’s requirements and project information are received, the engineering team begins developing a comprehensive and detailed design for the facility. Below are the main stages involved in a standard factory construction process:

Preparation Stage

Step 1: Site Survey and Construction Planning

The initial step in the construction process involves conducting a thorough site survey and developing feasible construction plans:

  • Site Assessment: The construction contractor will conduct an on-site evaluation to assess the land condition, topography, and other related factors. This data collection forms the foundation for the design phase.
  • Preliminary Design Proposal: Based on the survey results, architects and technical staff will propose appropriate solutions for infrastructure and technology systems to ensure construction proceeds efficiently and logically.
  • Detailed Architectural Design: For areas with higher aesthetic requirements, such as office zones or guardhouses, the design team will propose optimal architectural solutions that balance both functionality and visual appeal.
  • Environmental and Fire Safety Assessment: The engineering team will also incorporate environmental protection and fire prevention measures in compliance with current government regulations and the specific guidelines of the industrial park or cluster where the project is located.
  • Foundation Design Plan: Finally, a foundation structure plan will be developed based on the local geological conditions. All relevant technical standards and regulations will be clearly defined to serve as a basis for accurate, high-quality design and construction.
Measuring terrain at construction site

Site survey must be conducted before developing the construction design for the factory

Step 2: Preliminary Design Development

Once the site survey is complete and initial proposals are finalized, the team of architects and engineers will begin translating concepts into a set of preliminary design drawings. These drawings typically include:

  • Master site layout: An overall plan outlining the spatial organization of the entire project.
  • Detailed floor plans: Layouts for each specific component or functional area of the facility.
  • 3D renderings: Visual perspectives that help stakeholders visualize the final appearance of the factory.

These drawings enable investors to gain a clear and intuitive understanding of the entire factory layout upon completion.

Depending on the manufacturing sector, technology lines, and the specific scale of each facility, the site layout will be tailored accordingly. The preliminary design must clearly reflect the following key elements:

  • The specific structures and components to be constructed
  • Construction density and building setback lines
  • Internal traffic and circulation systems
  • Green space distribution and landscape planning
  • Fire prevention and firefighting systems
  • Emergency exits and other essential safety measures

All of these factors must be clearly presented to ensure that the project meets technical specifications, supports efficient operation, and complies fully with legal and regulatory requirements.

Preliminary drawing design

Developing the preliminary design drawings for the factory

Step 3: Developing Detailed Construction Drawings and Cost Estimates

The preliminary design serves as a foundation for discussion between the investor and the construction contractor, allowing both parties to revise and finalize the optimal construction plan. Once agreement is reached, the engineering and architectural team will proceed with completing the detailed construction drawings.

At this stage, the drawings must comprehensively and accurately reflect the following elements:

  • Architectural details of each structure
  • Foundation design and pre-engineered steel structure solutions
  • Connection detail drawings
  • Specifications for construction materials
  • Electrical and plumbing systems (M&E)
  • Fire protection and emergency escape systems

These detailed drawings will be prepared for all specific areas within the factory complex, including:

  • Production workshops
  • Warehouses
  • Office areas
  • Canteens, dining areas, and staff rest zones
  • Underground water tanks
  • Power stations
  • Parking areas and guardhouses
  • Main gate and perimeter fencing

In parallel with finalizing the construction drawings, the investor must carry out the necessary legal procedures for obtaining construction permits and fire safety (PCCC) approvals in accordance with current regulations.

On the contractor’s side, the construction team will prepare a detailed cost estimate, which includes:

  • A breakdown of specific work items
  • Detailed quantity calculations for each component
  • The total projected investment cost

This documentation—comprising the construction drawings and the cost estimate—serves as a critical foundation for managing the construction timeline and budget. It also provides the basis for acceptance and inspection of completed work in terms of both quantity and quality.

Factory construction design

Finalizing the detailed construction design drawings for the factory

Factory Construction Phase

Once the factory design drawings have been completed and officially approved, the contractor will begin executing the construction works in accordance with technical procedures. Below are the detailed steps involved in the construction phase:

Step 1: Receiving and Managing Construction Materials

Before construction begins, the contractor must receive all building materials and supplies, ensuring they meet the approved quantities and quality standards outlined in the cost estimate. Common materials include steel, roofing sheets, bricks, cement, and more.

Given the large volume of materials typically used in industrial projects, discrepancies during the handover process are common—such as shortages, mismatched specifications, or missing small components like bolts and screws.

Once received, all materials must be transported to the on-site storage area and kept in proper condition to avoid damage, rust, or loss prior to use. Any deterioration in material quality can directly compromise the durability and structural integrity of the facility.

Construction materials

Receiving and thoroughly inspecting construction materials prior to commencement of work

Step 2: Constructing the Factory Foundation and Groundwork

The foundation and groundworks are among the most critical stages in factory construction, as they play a decisive role in the long-term stability and durability of the building. To ensure structural integrity, the entire process must strictly adhere to technical construction standards, as outlined below:

  • Site leveling: Based on the site’s current condition, the contractor will carry out land leveling to ensure a stable and technically compliant foundation surface.
  • Establishing structural centerlines: Accurately marking the building’s axis lines is essential to precisely determine the placement of foundation columns in accordance with the technical drawings.
    Excavating for the perimeter fence: Given the typically large scale of factory developments, the surrounding fence system must meet specific height and length requirements. This necessitates a robust foundation to maintain stability.
  • Constructing the foundation and tie beams: Foundation work and tie beam installation are carried out according to the pre-established structural axis. Most foundations are made from reinforced concrete, typically using isolated or pile foundation systems depending on the design.
  • Soil compaction: Once the foundation is complete, the ground is leveled and compacted to meet the required technical compaction standards.
  • Stone base compaction: A layer of stone is then laid and compacted to the specified thickness and density, as defined in the design documentation.
  • Concrete floor slab construction: After the preparation steps are completed, the team installs the steel reinforcement and pours the concrete floor slab. This step ensures the factory floor meets specifications for flatness, load-bearing capacity, and structural stability.
Factory foundation

Factory foundation and slab construction is a critical phase that determines the structural stability and long-term durability of the facility.

Step 3: Erecting the Steel Structure

The steel frame serves as the “backbone” of the entire factory, playing a vital role in the structural integrity of the building. As one of the most critical components in the construction process, the steel structure must be installed with precision, strength, and load-bearing capability.

To ensure a high degree of accuracy during assembly, contractors typically employ advanced measurement tools such as total stations and laser levels. These technologies help streamline the construction process while ensuring that all structural elements align with technical specifications.

Factory steel frame

The factory’s structural frame must be installed with precision, stability, and strong load-bearing capacity

The steel frame of a factory typically consists of two main components:

  • Installation of steel columns and beams: Structural elements such as steel columns and frames are pre-fabricated at the manufacturing plant, then transported to the construction site for assembly. Depending on the site layout, the erection process may start from the center of the factory and expand outward to both ends, or it may begin at one end and progress inward.
  • Installation of purlins and bracing systems: Once the main columns and beams are in place, the construction team will install the bracing system to stabilize the steel frame in-plane. Purlins are then added to further reinforce the structure and serve as the support for the roofing panels. All components must be installed with high precision and firmly fixed to prevent shifting, ensuring smooth execution of the subsequent construction phases.

Step 4: Constructing Perimeter Walls and Internal Partitions

The external walls and internal partitions of the factory can be constructed using various materials such as corrugated steel panels, bricks, and other approved materials. All construction must strictly follow the design specifications and be fully integrated with the steel structural frame.

For internal partitions, specialized materials such as fire-resistant panels, Gywall gypsum boards, or Smartboard insulation panels may be used to enhance safety and thermal performance.

Once the wall and partition installation is complete, the contractor will proceed with the installation of doors, windows, ventilation systems, and other related components. The technical team will then inspect all bolts, panel joints, and door frame gaps to ensure there are no leaks or water intrusion during rainfall.

Step 5: Installing the Factory Roof and Applying Heat Insulation

Roof installation—typically using corrugated metal sheets—requires a high degree of precision, as the first sheet serves as the reference point for aligning all subsequent panels. Upon completion, the overlapping joints of all sheets must align perfectly in a straight line and remain perpendicular to the underlying purlin system.

In addition, heat insulation plays a critical role in maintaining a stable temperature within the production area. The most commonly used insulation material is fiberglass wool, which must be carefully installed. All seams must be aligned, smooth, and free of wrinkles, folds, or tension to effectively block external heat and cold from penetrating the interior of the facility.

Factory roof construction

Factory roof installation requires high precision and effective thermal insulation

Read more: What is a factory roof? Key structure & types

Step 6: Infrastructure Construction for the Factory

This phase focuses on developing the infrastructure surrounding the factory, including drainage systems, yards, internal roads, and storage facilities. The primary objective is to optimize conditions for production operations and goods transportation.

Step 7: Installation of Factory Systems

Once the infrastructure is in place, the next step involves installing essential technical systems. These include electrical and plumbing systems, wastewater drainage, fire protection, waste treatment, and internal communication systems. These installations are crucial to ensuring stable and efficient factory operations.

Step 8: Final Completion and Commissioning

The final stage includes installing all necessary machinery and equipment, as well as completing any remaining construction items. The technical team will thoroughly inspect all components—such as joints, bolts, and screws—to identify and resolve any potential issues. Once everything has been installed correctly according to design and technical specifications, the production equipment and lines will be positioned and prepared for operation.

Machinery and equipment in the factory

Installing the necessary machinery and equipment to complete the facility

Step 9: Factory Landscaping and Exterior Finishing

Once the factory’s structural and technical systems have been completed, the next phase involves executing the exterior landscaping. This enhances the overall visual appeal of the facility while contributing to a professional, worker-friendly environment. Upon completion, the project is prepared for handover to the investor.

Step 10: Final Cleaning and Commissioning

In the final phase, the entire factory area will be thoroughly cleaned in preparation for official use. After confirming that all systems and equipment have been properly installed and are free from technical issues, the contractor will formally hand over the facility to the investor.

In addition to final cleaning and inspection, the contractor is also responsible for providing warranty services, scheduled maintenance, and periodic upkeep to ensure stable, efficient, and long-lasting operation of the facility over time.

Factory cleaning

Conducting final cleaning and commissioning the factory for operation

Key considerations in factory construction

After completing all phases of the factory construction process, the project must meet the following critical requirements:

  • Compliance with State Technical Standards: The construction of the factory must strictly adhere to the current national building codes and regulations. Key structural components—such as foundations, roofing systems, skylights, walls, partitions, windows, and doors—must meet the technical standards issued by the Ministry of Construction.
  • Safety During Construction and Operation: Safety must be prioritized at every stage, from construction through to operation. All workers on-site must be equipped with appropriate personal protective equipment (PPE). Every construction activity must follow strict protocols to minimize risk. In addition, safety systems—such as fire protection, hazard warning signs, and emergency equipment—must be fully installed to prevent accidents during operational phases.
  • Cost Efficiency and Resource Optimization: Investment capital must be allocated effectively and used for its intended purposes. Construction materials and equipment should be selected based on standard specifications and distributed appropriately. Upon project completion, total expenditures must not exceed the initial approved budget.

Having a clear understanding of the factory construction process enables investors to better manage progress, quality, and costs. We hope that KTG Industrial’s insights have provided you with a more comprehensive view of the key steps involved. With careful planning, your project can achieve optimal results in terms of time, cost, and quality.

KTG Industrial

Tác giả: KTG Industrial

KTG Industrial Managed by BKIM – a collaborative brand of KTG & Boustead, pioneering industrial real estate in Vietnam, specializing in ready-built factories, warehouses, and build-to-suit solutions, committed to being the ideal destination for businesses.

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