Cam International - The journey from short-term FACTORY LEASE to FACTORY OWNERSHIP at KIZUNA Ready Serviced Factory

At the beginning of 2020, Cam International Co., Ltd. (CAMV) - a Singapore enterprise in the field of manufacturing and processing technology, operating at Kizuna 2 Ready Serviced Factory, officially signed a contract of transferring land use rights and other properties associated with land (referred to as workshop purchase contract) with Kizuna. This is the second enterprise that owns a long-term factory in Kizuna Ready Serviced Factory. The following article will analyze the trend of going from RENTING READY-BUILT FACTORIES to OWNING FACTORIES of foreign small and medium-sized enterprises in Vietnam as well as CAMV's journey at Kizuna.

The trend of renting production workshops of foreign enterprises in Vietnam

For foreign enterprises that decide to invest, expand production and business in Vietnam for the first time, they always wonder whether they should buy land to build workshops or rent ready-built factories, and the suitable factory must meet many factors. Firstly, the factory must have a strategic location for easier transportation and commuting. Next, the size and design of the workshop should be optimal to match the production needs of the business, optimizing investment costs and operating costs during the production process. If enterprises can choose the factory located in the industrial park with synchronous technical infrastructure and utilities, they can save a lot of construction time as well as investment costs. An equally important factor is that businesses need to have shared facilities, support services from the factory owner, not only at the beginning but also throughout the operation of the business, especially issues related to workers and legal procedures.

The choice of renting a ready-built factory in Vietnam with ready technical infrastructure of the industrial park with full synchronous support services from the investor is the most suitable solution for foreign businesses in need for small and medium-sized production space but still ensures an efficient production environment, especially they can own long-term assets for a solid investment in the future in Vietnam.

The solution helps enterprises going from renting a short-term workshop to owning a workshop at KIZUNA Ready Serviced Factory

Understanding the businesses’ needs, Kizuna's ready-built factories range from 100m2, 300m2, 500m2 to more than 20,000m2. This facilitates the selection of ready-built factories with an area suitable for investment needs & production scale at the beginning stage as well as the need to expand in the future. Besides, Kizuna also offers flexible policies for businesses in the process of renting a factory. Enterprises can stop renting at any time to switch to the form of "buying" to quickly and easily own the factory at Kizuna Service Factory. Businesses who choose to buy workshops will be issued with ownership certificates, so there is absolutely no need to worry about related legal issues. Similar to hiring ready-built factories, Kizuna will continue to provide services in Kizuna's comprehensive support service ecosystem, helping businesses feel secure in an efficient production and investment environment.

The journey from renting to owning a factory of Cam International (CAMV) at KIZUNA

CAMV's investment journey at Kizuna Ready Serviced Factory is the clearest evidence for the trend from renting to owning factories of foreign small and medium enterprises in Vietnam

Cam International is invested by Cam Resources, headquartered in Singapore. The enterprise has nearly 25 years of experience in manufacturing and processing mechanical parts.

In 2015, Cam Resources began to explore the investment environment in Vietnam and consider suitable investment locations, including Kizuna. The reason they set up a factory here is to support customers in Vietnam and overseas markets in Thailand, Japan, Malaysia and the United States. Vietnam is considered as a potential market thanks to its young workforce, relatively low labor costs compared to ASEAN countries and is currently an attractive investment destination for many major corporations in the field of precision mechanical processing.

In February 2016, they officially signed a Workshop reservation agreement, and decided to rent D5 workshop with an area of 290m2 at Kizuna 2 Ready Serviced Factory as the starting point for their investment journey in Vietnam. After more than 3 years since its official operation, realizing the increasing production demand, CAMV decided to expand the factory scale to accommodate the increase in machinery as well as labor. In May 2019, they officially signed a Workshop reservation agreement for the A8 factory with an area of 1000m2 in Kizuna 2. With the close location in the same area, the moving and installing the production line process became faster and easier than ever.

Not only that, in January 2020, CAMV decided to buy this workshop to own the right to use the factory for a long time. This shows that the production environment in Kizuna perfectly fits the needs and long-term development plans of CAMV in the Vietnam market

In terms of long-term value, going from renting to owning a workshop not only saves businesses time and money, helps them quickly go into production in the time of initial investment but also satisfies the enterprise's desire for long-term asset ownership and sustainable development.

It is strongly believed that in the coming time, many FDI enterprises will continue to choose the efficient production and secure investment environment in Vietnam with the start from renting a workshop with services and then switching to own the workshop like the journey of Cam international’s sustainable success at KIZUNA Ready Serviced Factory.