A factory is an indispensable part if a business wants to do business successfully. Currently, there are many different types of factories, so depending on the financial situation, type of business, …, business owners choose the appropriate type of factory. So what is a factory? Which type of factory should business owners choose? All questions will be answered by KTG Industrial in the following article.
What is a factory?
Simply put, a factory is a location used for the purpose of producing and storing goods or operating to provide a certain service. This is where all the raw materials, human resources, equipment, … that a business needs are gathered. Depending on the business sector, the factory exists in different shapes and sizes [1,2].
For example, if company A sells children’s clothing, the factory of this company focuses on the stages of creating products. Including importing fabrics, processing raw materials, sewing clothes, dyeing, packaging, etc.
The factory is where the product manufacturing process takes place
Currently, there are many types of factories for businesses to choose from, but below are some of the most basic types of factories:
- Workshop combined with office: Is a model of production and management office arranged in the same space.
- Standard factory: Is an area designed and built to serve the production, assembly, processing and storage of goods.
- Factory with ecosystem: Is a production area with additional ecological elements such as trees, lakes, etc.
Related article: Top 7 Popular Types of Industrial Factories
Factory with green ecosystem
Notes when choosing to rent a factory
To determine which type of factory is suitable, business owners can rely on the following important criteria:
Business needs
Business owners should ask themselves what is required in a factory. For example, business owners need to determine mandatory factors such as light, water source, labor, and convenient traffic location. Non-essential factors can be flexible. Based on this information, business owners will easily find the desired factory location.
In addition, businesses need to answer some basic questions to find a convenient factory. Including what are the current resources of the business, how much capital is available, what is the position of the business in the market, etc. to choose a factory with reasonable costs.
Business owners should base on the criteria they most desire to choose the right type of factory
Infrastructure
If the infrastructure meets the standards, business owners can rest assured that the factory will operate stably and long-term without spending too much on upgrading, only needing periodic maintenance. On the contrary, if the infrastructure is temporary and of poor quality, the initial investment capital must be very high.
Because if not repaired, it can be dangerous for workers, affecting the profits of the business. Therefore, a factory must have at least full fire prevention and fighting equipment, ensure good ventilation and have a heat dissipation system.
Convenient location
An optimal factory should be located near the main roads of the province/city or seaport, airport. This creates favorable conditions for businesses in importing/exporting raw materials, goods, … and distributing products to consumers.
In addition, business owners can choose the location of the factory based on the requirements of goods production. For example, suppose the business item requires a large workforce, the factory should be located in a densely populated area
Optimal design
To save investment costs but still ensure effective business, business owners should choose an optimal factory design. For example, instead of choosing a factory with only one floor, business owners should consider using a multi-storey factory with a solid structure to take advantage of the existing land fund.
Multi-storey factory helps optimize limited land area
The factory area has a convenient internal road system
An ideal factory should have all the necessary elements such as lighting, electrical system, water system, ventilation and air ventilation, waste treatment capacity, etc. In addition, this production location must also create favorable and comfortable conditions for workers to work, achieving high efficiency.
Challenges when operating a factory
When wanting to operate a factory/a factory system by themselves, business owners may face unexpected challenges. Typical examples include:
Supply chain and raw material management
The better the raw materials, the more stable the supply chain, the higher the quality of the output products. This is a solid foundation if the business wants to be successful in the long term.
However, it is indeed very difficult for the production of goods to always meet this criterion. Therefore, business owners can only minimize this risk by choosing a reputable supplier with a good reputation.
Personnel and machinery management
In addition to factors related to supply chains and raw materials, business owners need to implement an effective personnel and machinery management system. Based on job requirements, businesses should select personnel with skills and adaptability, who can keep up with technology and rapid growth.
For machinery, instead of constantly chasing new technology, businesses should focus on choosing the most suitable options for their production needs. Regular maintenance is also essential to ensure smooth operation of equipment.
Effective personnel management is a mandatory criterion for optimal production
Issues of occupational safety and environmental protection
Occupational safety is an important criterion for sustainable business development, so environmental protection policies should be followed to ensure stable operations and compliance with the law.
Specifically, businesses should carefully calculate costs to purchase adequate equipment to ensure worker safety. Along with that, any process of processing raw materials or manufacturing products must have a waste treatment stage before releasing them into the environment [3].
New trends in manufacturing workshops
To keep up with the rapid pace of change in today’s market, businesses need to grasp some current trends in manufacturing workshops such as:
Rooftop solar power application
Rooftop solar power is a solution to provide green energy for production activities. In particular, manufacturing workshops will take advantage of high areas such as on the factory roof, which can receive the most light to generate solar energy.
Thanks to that, business owners can ensure that the production process is not interrupted, but still save maximum monthly costs.
Modern factory meeting international standards
The factory has a high-quality construction process, optimizes time and cost, operates sustainably, is stable for a long time and is committed to effective environmental protection.
These are all determined by standards such as ISO 9001, LEED (Leadership in Energy and Environmental Design), OSHA (Occupational Safety and Health Administration), GMP (Good Manufacturing Practice) & HACCP,…
Using smart construction materials
Instead of choosing concrete and steel as before, many factories have switched to using more flexible materials, such as self-healing concrete. The highlight of this material is that it has better expansion capacity than conventional concrete, so it is difficult to crack, break,… Thanks to that, periodic maintenance costs are significantly reduced.
KTG Industrial – Modern factory rental solutions
With more than 20 years of establishment and development, KTG Industrial has a clear awareness of the constant changes in the design and construction of factories at present. Therefore, the unit proactively changes the structure, construction materials, … to bring the most optimal, economical and sustainable solutions for businesses.
In addition, the unit also accepts to design and construct factories according to customer needs as well as meet international construction quality standards on quality, safety, ensuring customer completion results.
KTG Industrial specializes in providing smart, modern factory designs
Above is a detailed answer to questions about factories. In general, this structure can exist in many different forms to meet customer needs. Therefore, to choose the right type of factory for your needs and business, business owners should contact a unit specializing in providing industrial real estate and high-end, international-standard factories and warehouses for detailed instructions.
References
[1] Truong, M. (2023, December 2). Theo quy dinh thi xuong san xuat co duoc xem la dia diem kinh doanh hay khong? Retrieved April 25, 2025, from Cong ty Luat TNHH Minh Khue website: https://luatminhkhue.vn/theo-quy-dinh-thi-xuong-san-xuat-co-duoc-xem-la-dia-diem-kinh-doanh-hay-khong.aspx.
[2] Pham Thi Xuan Huong. (2023, November 30). Xuong san xuat la gi? Xuong san xuat co duoc xem la dia diem kinh doanh cua doanh nghiep hay khong? Retrieved April 25, 2025, from Thuvienphapluat.vn website: https://thuvienphapluat.vn/phap-luat/xuong-san-xuat-la-gi-xuong-san-xuat-co-duoc-xem-la-dia-diem-kinh-doanh-cua-doanh-nghiep-hay-khong-162450-127416.html.
[3] Quang, T. (2022, March 16). Bao ve moi truong doi voi khu san xuat va bao ve moi truong doi voi co so san xuat quy dinh nhu the nao? Viec tai che thuoc trach nhiem cua ai? Retrieved April 25, 2025, from Thuvienphapluat.vn website: https://thuvienphapluat.vn/phap-luat/bao-ve-moi-truong-doi-voi-khu-san-xuat-va-bao-ve-moi-truong-doi-voi-co-so-san-xuat-quy-dinh-nhu-the-1370.html.
