3 Tips for choosing a factory for rent near Ho Chi Minh City Vietnam

factory rental Nov 13, 2020

Factory for rent near HCMC is receiving much attention from domestic and foreign enterprises. This model not only possesses a prime position but also optimizes the cost of the enterprises. However, how should enterprises rent a factory near HCMC for more convenient production? Let's find out what should be considered when choosing a rental factory with Kizuna.

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3 Tips must be considered when renting a factory near HCMC

1. Rent may increase gradually to rent a factory near HCMC

The amount of money enterprises have to pay to factory for rent near HCMC changes every year and often tends to increase rather than decrease. It is unable to predict whether it increases much or little. Therefore, it is necessary to estimate the rent in the worst case in which the cost increases by a large amount. Thus, production activities will face many obstacles when rental costs start to increase. In order to reduce the risk of increase in the price of factory for rent near HCMC every year, it is possible to implement the following solutions:

1.1. Solution 1: Analysis of costs to rent a factory near HCMC

Step 1: Know your total revenue and after-tax profits. Calculating the remaining amount and measuring your revenue and expenditures. Decide which amount will be used for business development and for estimated rent.

Step 2: Record specific receivables and expenses in 1 month. Don't omit any amount even the smallest one. Thus, you can identify the expenses for the most frequent items.

factory for lease in vietnam

More and more enterprises rent a factory near HCMC

Step 3: Calculate the sum of expenses in 1 month. This final number may be the prerequisite for next month's costs.

Step 4: Analysis of costs, revenues and profits: this is the last step to assess corporate finance. Based on the existing figures, enterprises perform a review of their business activities. Finally, it is possible to estimate costs of factory for lease within the permissible level of enterprises.

1.2. Solution 2: Choose a prepayment for many years

If you find cost estimating steps are relatively complicated, try another solution. That is to prepay for many years. Please consider the payment policy of the lessor. Many lessors will create favorable conditions to keep the rental price unchanged when lessees pay in advance from 3 to 5 years. And that price of factory for rent will not change during the prepayment process. This is also considered a beneficial solution for enterprises.

2. Obstacles when intending to construct to rent a factory near HCMC

In fact, there are many problems upon constructing a ready-built factory. Enterprises will face many difficulties due to not being its owner. Therefore, it is required to clarify from the beginning with the lessor about the design improvement when there is a need to change. A wide and beautiful factory but not suitable for production activities of enterprises is not a good choice. Enterprises also need to understand clearly the legal issues when deciding on construction. It is possible to ask for support to rent a factory in Vietnam from lessors for the most efficient results.

factory for rent in vietnam

It’s highly recommended rent a factory near HCMC to save cost

3. Restrictions on various issues to rent a factory near HCMC

While renting a factory near HCMC, many enterprises are restricted on operational problems. Typically, these include transportation, time and canteen for employees, etc. For example, an enterprise rents a factory near Ho Chi Minh City to produce construction steel but fails to transport heavy and bulky goods because of weak bridges and roads. Additionally, enterprises are subjected to restrictions on time for goods transportation. This will affect the delivery schedule and result in the loss of potential customers and revenue reduction. Therefore, it is vital to thoroughly understand the ability to meet the requirements of the lessor of factory for rent.

The above article shows difficulties when choosing a suitable factory for rent. Remember these 3 important notes carefully in order not to encounter risks to rent a factory near HCMC. Thus, your factory will not encounter any uncertainties during operation.

Source: rent a factory


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