09/20/2019 14:00, Tin tức - Sự kiện

Start a business firmly with a small and medium-sized factory

With the shift of production from China, many small and medium foreign enterprises have actively invested in Vietnam. Meanwhile, industrial land rent tends to increase. This has causes them to pay more attention to renting ready-built factories. However, not all startups have capital to invest in large-scale workshops. Therefore, investing in renting a small or medium-sized factory is considered a solid start-up.

Situation of investment and construction of small and medium-sized factories

Many investors have changed their mind from leasing industrial land to building factory for rent. The values varies based on the area and location. Price of factory for rent near HCMC can range from 2.5 to 5 USD/ m2/ month. Depending on practical needs, the investors will choose the appropriate design and factory area.

medium-sized factory

CBRE, a global real estate consultancy and management group, reported that: "The ready-built factory market in Vietnam is very active." CBRE has received a wide variety of rental inquiries from its customers. However, the most common area required is from a 500m2 factory for rent to a factory under 1000m2. It can be said that the trend of renting small workshops is also a noticeable direction.

 3 reasons to choose a small and medium-sized factory for your start-up

Reduce initial investment costs 

 Establishing, maintaining and developing enterprises in the right direction is not easy at all. However, many small and medium enterprises are currently facing difficulties in capital. In the immediate future, the construction of factories is almost a prerequisite. Therefore, renting a small and medium-sized factory is an appropriate option. According to many enterprises, the selection of ready-built small and medium-sized factory helps them reduce initial costs up to 20% - 30%.

Limit risks 

 Newly established enterprises often do not know what to wait them in the future. Therefore, they usually only identify this as a commissioning phase before going into production. As a result, it is risky if they spend a huge amount of capital to rent land and build solid factories. Moreover, investing in medium-sized factories or small workshops helps them minimize risks during their early start-up. At the same time, if after a while when their business is stable and they have enough potential, the expansion of the factory size is absolutely not difficult.

medium-sized factory

Saving time and quickly putting into operation

 In fact, construction of a factory usually takes a lot of time. It need many steps from determining the location, renting land, obtaining a construction permit, drawing design, etc. This process, if it goes smoothly, takes one to two years or even longer. As a consequence, the investment process of enterprises must also be scheduled for a longer time. Therefore, the small ready-built workshop for rent is an effective solution. It only takes a few months for enterprises to prepare for official operation.

Starting a business is never easy. Therefore, making an appropriate choice will be a stepping stone for enterprises for their steady development. At the same time, choosing to invest in small and medium-sized factory is a choice not to be missed.

 

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