4 Benefits of leasing a factory in Vietnam that attracting foreign company

factory rental Sep 27, 2020

Most enterprises starting production and business always face a variety of challenges. Should they chose to build or lease a factory to begin their production? Each form will have specific advantages and disadvantages. In which, leasing a factory has promoted the essential benefits for new businesses. Let’s find out why enterprises should choose a ready-built factory for lease to start production.

Spending lower costs when leasing a factory in Vietnam

Enterprises that want to expand production will often have to mobilize and concentrate on many economic resources. Meanwhile, the construction of a new manufacturing plant must go through a lot of different steps. These include land purchase costs, construction materials, design, infrastructure construction, etc. There are various items businesses need to prepare to build a new factory. Besides, some problems are arising during the factory operation process.

Leasing a factory

Meanwhile, if enterprises choose the leasing a factory form, the costs are maximized. Specifically, businesses will only have to pay rent, the cost of using support services (if any) and some other costs. It is considered the best advantage, hitting the psychology of newly-established enterprises.

A safe beginning with ready-built factory for lease

Leasing industrial factories will be a safe start that businesses need to aim for. What are the enterprises if in the process of building new factories, they meet some capital problems? At this time, enterprises will hover between life and death that they can neither continue to construct and develop factories nor stop the construction progress because the charge is too big. Instead, if the businesses choose a ready-built workshop for rent, they will have a safer start, which can change the production model at a disadvantageous circumstance.

Legals problems are those that businesses need to ensure a strict and sufficient implementation when they want to start production. Choosing the leasing a factory form will optimize for business’s legal issues. Rental units often prepare legal documents for enterprises. Before signing a contract, enterprises should read and understand all the information carefully. Rental providers are always ready to explain and support businesses. It will ensure benefits for new enterprises that are less experienced step by step to resolve legal procedures.

Leasing a factory

Factory leasing saves time effectively

The time that businesses spent on completing a new factory will be very long. It can be several months or even several years based on scales and progress. Besides, if enterprises meet some legal or capital problems, the time will be extended. Since then, new businesses can’t ensure the time to start production and operate their factories. If leasing a factory, the above stages will be resolve. Enterprises don’t need to mobilize too much capital when renting factory. Therefore, you can arrange the machines and start production quickly.

These are four main benefits that help start-up enterprises take steady steps. Enterprises with small and medium business models should choose a ready-built factory for rent instead of building a new one. Those are the best advantages to support enterprises invest and recover input quickly. Businesses can ensure safety, save both time and costs.

Factory leasing or buying, which is the better choice?

There are many factors that you should consider when deciding whether to buy or lease a factory. If your business is a startup or SME or you have a plan to extend your business in Vietnam, leasing a factory is the better choice. First, leasing a factory with 4 benefits above will help you to jump into manufacturing in a short time. You don’t need to have a huge capital when moving to a new market. Second, factory leasing service will support you during the operation process with their supporting services such as legal services, human resource services, accounting service, maintenance services,... Your company can focus on production for sustainable development.

Source: Factory leasing

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