What should be noted when building a large factory
To build a new factory, it is not a problem can be solved "overnight". Therefore, many investors to Vietnam select factory for rent near ho chi minh for their production. A completely built factory must be invested a lot of costs, take a long time to complete, etc. What are the disadvantages that you will encounter when building a large factory?
6 Disadvantages when selecting to build a large factory
1. High cost of buying real estate
This is the most essential issue when deciding to build a large factory. A professional factory cannot be built as small, narrow as a living house. You really need a quite large area to be able to operate the factory smoothly. With the land escalating price in Vietnam today, if you want to own a large land, you will have to invest quite a lot. The mobilization of such a large amount of money will affect the cash flow of enterprises. With a reasonable amount of money, you can select a factory for rent near Ho Chi Minh to develop the business.
2. Preparation for real estate price reduction or low liquidity
Buying and selling real estate is not as simple as you think. Buying, paying money and receiving land to expand production is easy. But the name transfer, tax, factory licensing procedures etc,. consume a lot of time. You will have to wait quite a long time before starting construction. Normally, the average time for issuing construction permits in Vietnam is 166 days. Therefore, with factory for rent, enterprises will step right into the production process without losing waiting time.
In addition, you need to prepare as the real estate after buying will have fluctuations. No one can predict the price will go up or down after a few months of buying land. Risks of low liquidity will make enterprises delay investment in other items. It may be due to many different causes leading to that. But in general, enterprises need to consider carefully before selecting to buy land for building large factory or small factory.
3. Responsibility for paying related taxes
For different construction models with different purposes, you need to pay different taxes. The laws that are also different in each country, will bring many shortcomings. This tax amount is not fixed, varying according to conditions for example used land area, revenue, value-added tax, tax rate, etc.. You will have to pay in full to get a business license. Moreover, enterprises must set up a team with a clear understanding of laws in the host country. Thus, you can avoid legal problems and risks.
So, if you have chosen a factory for rent near Ho Chi Minh, you can ask for assistance from the renting unit. For example, with factory for rent supplier Kizuna, enterprises will receive many free supporting services. They are business registration, recruitment, initial accounting procedures etc.. Not only but Kizuna also has a supporting team with multi-languages to provide information to customers. So, enterprises will no longer worry about this anymore but can focus on your comprehensive development.
4. Preparation of money to repair both inside and outside the factory, repairing costs can be very high and often unspecified.
The wear and tear that occurs during construction and operation are inevitable. For new construction works, there will be damages on the outside and inside of the work. And enterprises will have to spend money to overcome those losses. These costs are very big and are directly proportional to the large factory or small factory. In general, enterprises should invest in designing equipment and operation areas. This will reduce losses and help enterprises save money in the long term.
5. It is very difficult to move to other areas to suit business purposes
Once you decide to build a building, you must accept to use it in the long term. Many enterprises have to vacate parts of the factory area as they are not suitable for their production model. If it continues, it can cause losses for enterprises. On the contrary, vacating the factory does not bring any benefits and causes waste.
As for factory for rent, if you feel it inappropriate, you can move to a more convenient factory. For example, from large factory, enterprises can easily move to a 200m2 workshop for rent. You just need to contact the rental unit, they will provide diverse factory scales according to your needs.
6. Easily affected by economic changes
The economy never stands still. There will be a time when it has great development, there is also the time when it is in the opposite. Building factories always have many potential risks for investors. If you do not dare to do "all in" in expanding your business by building a new factory, you need another option. Ready-built workshop for rent will be the best, slow and reliable solution. This will help enterprises limit risks by economic changes.
Building a new factory is a bold and expensive step. If enterprises do not have enough potential sources or experience in the investment market, this step will be quite risky. Especially when investing in building a large factory. Come to Kizuna factory - the leading factory for rent supplier in Vietnam to feel the best service.