Small-scale factory rentals in Vietnam are becoming an ideal choice for small and medium-sized enterprises (SMEs) looking to minimize initial investment costs while ensuring an efficient production space. With flexible sizes ranging from 100m² to 1,000m², these factories cater to various industries, including manufacturing, warehousing, and processing. This article explores the benefits of renting small-scale factories in Vietnam, key considerations when leasing, and recommended locations for SMEs.
Why should you choose to lease a small factory?
Save space
Leasing a small-scale factory allows businesses to use space efficiently, particularly when storage or production demands are not extensive. It is also an effective way to reduce monthly rental costs and additional expenses such as electricity, water, and maintenance. For SMEs, optimizing space usage ensures stable cash flow and enhances financial flexibility.
Save space
Optimize production
Another key advantage of renting a small factory is the ability to streamline production processes. Efficient use of storage space and inventory management enables businesses to arrange machinery and equipment scientifically, creating a productive working environment for employees. High-quality rental facilities also help maintain strict inventory control before dispatching goods, ensuring product quality upon delivery. This approach not only boosts production efficiency but also lowers operational costs.
Maximum cost savings
Small-scale factories are well-suited for SMEs as they help reduce initial investment costs, alleviate financial burdens, and minimize operational expenses. This allows businesses to allocate capital more efficiently without compromising critical production investments.
Moreover, leasing a small-scale factory mitigates risks when entering new markets. If business operations do not perform as expected, potential losses are significantly lower compared to leasing larger facilities. When business operations stabilize, scaling up becomes more accessible. Additionally, renting eliminates the need for construction expenses, infrastructure investments, and large workforce requirements, allowing businesses to optimize capital for reinvestment in market expansion.
Leasing a factory helps save initial costs.
More flexibility
Renting a small-scale factory provides high flexibility in adjusting production scale. As demand increases, businesses can expand their space by negotiating with landlords or relocating to larger facilities with minimal hassle. Conversely, if downsizing is necessary, businesses can easily reduce rental space to cut costs.
Furthermore, renting enables businesses to adapt their production environment quickly, rearranging interiors and machinery to suit operational needs. The standardized design and technology-friendly infrastructure of factories in industrial zones allow companies to modify production layouts efficiently, improving logistics and material handling.
Reduce maintenance and management burden
Leasing warehouses and factories helps businesses reduce the burden of maintenance and management, as the responsibility for infrastructure repairs and upkeep typically falls on the property owner. This allows businesses to save time and costs while focusing more on core operations. Additionally, by using pre-built factories, companies do not have to worry about unexpected maintenance costs, enabling more effective budget management.
Important factors to consider when renting a small factory
Area
When leasing a warehouse or factory, businesses must pay close attention to size and structure to ensure smooth production and storage operations. The leased space should be spacious enough to accommodate machinery, equipment, and inventory efficiently, avoiding disruptions in workflow. Additionally, the structure of the warehouse, such as ceiling height and shelving layout, directly impacts inventory management and storage efficiency.
Moreover, businesses should carefully consider the leasing format that best suits their needs. Options include renting an entire warehouse or a portion of it, leasing within or outside an industrial park, depending on the intended use. The required space should also be determined based on inventory levels, storage arrangements, and product categorization.
Space
Location is a crucial factor when leasing a factory. The facility should be conveniently located for both employees and customers, with easy access to major transportation routes, highways, and airports to facilitate logistics and distribution.
Furthermore, the size and layout of the factory should align with production and storage requirements. The space must be spacious and well-organized to optimize workflows, including storage areas, production zones, offices, and other essential facilities.
It is essential to choose a factory with space suitable for the business’s needs.
Infrastructure and utilities
Before signing a lease agreement, it is essential to thoroughly inspect the infrastructure and available utilities, such as electrical and water systems, ventilation, waste treatment, parking areas, and loading docks. Ensuring that the factory has the necessary facilities for business operations is critical. Additionally, businesses should evaluate support services like security, power and water supply, cargo handling, warehouse management, and investment assistance for new enterprises.
It is also important to explore industrial park incentives, such as tax exemptions, VAT discounts, and wastewater management services. When assessing factory locations, businesses should consider traffic conditions, congestion, load restrictions, and permitted vehicle types to avoid unexpected costs and logistical risks.
Security and safety
When leasing a factory, businesses should prioritize locations with robust security systems to safeguard assets and ensure compliance with fire prevention and workplace safety regulations. Additionally, before making a decision, conducting on-site inspections is recommended to assess the actual condition and quality of the facility rather than relying solely on advertisements or referrals.
Steps to rent a suitable small factory
Research and search
To effectively find a suitable factory for lease, businesses can utilize various channels such as online rental platforms, real estate brokers, or personal networks. It is advisable to select a factory with a location, infrastructure, and size that align with business needs. Additionally, thorough comparisons between available options help identify the best solution at a reasonable cost.
Businesses can also refer to industry forums, online community groups, or conduct site visits to evaluate transportation and surrounding amenities. Before beginning the search, preparing a list of criteria—including size, location, cost, and other requirements—helps streamline the decision-making process.
Check
After identifying potential factory options, businesses should conduct on-site inspections to assess their condition, utilities, and overall suitability for production needs. These visits provide a clearer understanding of space, location, infrastructure, security, and surrounding facilities.
During inspections, businesses should compare different options and negotiate with property owners to make necessary adjustments. This step ensures that the chosen factory meets all operational requirements.
Negotiate contract terms
Once a suitable factory is selected, businesses must negotiate and sign a lease agreement with the property owner. Effective negotiation helps secure favorable lease terms, including rental duration, costs, maintenance responsibilities, and included services.
The contract should clearly outline the rights and obligations of both parties, ensuring compliance with all agreed-upon terms. After signing, businesses must fulfill rental payment commitments accordingly.
Consider legality
Before finalizing a lease agreement, businesses should consult legal experts or lawyers to thoroughly review all contract terms, ensuring their legality and safeguarding their interests.
For instance, before signing a factory lease, businesses should have a lawyer examine terms related to maintenance responsibilities, contract termination conditions, and additional costs to avoid legal risks or unforeseen expenses in the future.
Factory Leasing – A Growing Trend
KTG Industrial’s factory for lease solution in VietNam
KTG Industrial, a leading provider of industrial real estate solutions in Vietnam, is a strategic collaboration between Khai Toan Group and Boustead Projects (Singapore). KTG Industrial offers high-quality facilities, including:
- Pre-built factories: Floor load capacity of 1-2 tons/m², floor height of 0.2m – 0.3m, and clear height of 6.5m – 8.7m.
- Pre-built warehouses: Floor load capacity of 2-3 tons/m², floor height of 1.2m – 1.3m, and height of 9m – 10m.
KTG Industrial’s projects are strategically located in Dong Nai (Nhon Trach 2, Nhon Trach 3A, An Phuoc, Tam Phuoc) and Bac Ninh (Yen Phong I, Yen Phong II), with convenient access to airports and seaports. KTG also pioneers the implementation of rooftop solar energy systems and international-standard wastewater treatment facilities, ensuring quality and safety compliance.
Conclusion
Leasing small factories offers businesses cost optimization and flexibility in scaling operations. When making a leasing decision, businesses should carefully evaluate location, infrastructure, and associated services to ensure long-term operational efficiency. KTG Industrial provides reliable factory and warehouse solutions in Vietnam, meeting international standards with modern designs, strategic locations, and top-tier services.
