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2 common forms of warehouse to rent in Vietnam

Nowadays, numerous companies and enterprises have been established, which makes the demand for finding warehouses is increasing day by day. However, various businesses are having difficulty in determining what a rental form is proper. The following article will help you have a greater understanding of the forms of warehouse to rent in Vietnam.

More foreign enterprises find warehouse to rent in Vietnam

2 common forms of warehouse to rent in Vietnam

According to the purpose of use and the ownership of commodities, there are numerous different forms of rental. Though, there are currently two main forms of leasing: a private warehouse and a public warehouse.

The form of leasing private warehouse to rent

A private warehouse is a warehouse built by enterprises and has ownership from factories to warehouses, manage its commodities and employees. It is executed by choosing a rental package in an agency warehouse to rent.

Advantages and disadvantages of private warehouse to rent

It can be safe to say that the advantages of a private warehouse are its high level of control and unlimited storage space in case you have to use unscheduled. The next one is that enterprises can fully control warehouses' management. Since then, it will help to create such timely changes and improvements if needed.

Private warehouse to rent is built according to specific standards to ensure space, temperature, humidity, etc. A safe and convenient warehouse will make the storage and preservation of commodities better.

warehouse to rent

Inside of a warehouse to rent

Private warehouse to rent help the ability to accumulate commodities better and convenient for transportation and distribution. You can also choose storage areas that are in traffic centers.

However, enterprises need a great source of investment to rent a private warehouse. Therefore, this form of warehouse to rent is only proper for large-scale factory companies. It can be safe to say that renting a private warehouse is considered as a long-term venture capital investment. During the process of operation, various costs can accrue like equipment procurement, staff training, etc. Besides, using a private warehouse in a short term period is unbeneficial because of not fully utilizing space. If the number of goods is less, it will be wasteful while costs and warehouse scales are unchanged.

Public warehouse to rent

The form of leasing public warehouse to rent

Public warehousing is a type of centralized warehouse from numerous different enterprises. In particular, the rental agency has the responsibility for managing and storing commodities. Moreover, only businesses that are registered have the right to own products.

The form of leasing public warehouses can be separated into two types. Accordingly, they are the short-term rental for monthly and the long-term one for more than 1 year, specifically.

Advantages and disadvantages of public warehouse to rent

Public warehouse to rent do not seem to have the accrued costs as private warehouses. On the other hand, public warehouses are not individual property. Therefore, enterprises are not obligatory to tax. Public warehouses are appropriate for small and medium companies with little capital.

Unfortunately, this form of warehouse to rent does not provide intensive services. The reason is that most types of public warehouse to rent are only available for essential services.

warehouse to rent

Does your enterprise find a warehouse to rent?

Renting public warehouse to rent in the short term will help enterprises have more flexibility in using. When the amount of goods in a month decreases, they only have to pay the used storage. Since then, they will save the cost of the rent. In contrast, when the amount of goods increases, enterprises have to spend more to rent other warehouses. In the long term, businesses can not take an initiative in changing the storage space because, at that time, the contract was still valid. However, the safety level will be higher than in the short term.

In general, the two types of warehouse to rent mentioned above have specific advantages and disadvantages. Depending on the demand and the potential of each company, they can choose the best reasonable form for their business. It can be safe to say that Kizuna is currently a reputable agency warehouse to rent on the market.

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