With the increasing demand for industrial land in Ho Chi Minh City area, industrial land fund in Ho Chi Minh City is not enough for offers. Particularly expanded industrial land Ho Chi Minh has been squeezed much.
So, which options of properties for lease will investors choose for production investment? The answer will be: standard ready-built factory for rent. 1. Necessity of developing a standard factory for rent As noted above, investors often opt to sublease land over the long term (usually 50 years), and then self-initiate the necessary procedures to build the factory. However, if the investor positions Ho Chi Minh City as a destination for investment in production expansion, it is extremely expensive. The land rental price in this area has increased dramatically in the past 5 years, but in fact, regardless of the price level, the industrial land fund in this area is not much. Red-eyed investors look for land to rent while most industrial parks in Ho Chi Minh are out of land for rent or if they have been expanded, they will have to wait a long time to complete basic infrastructure. At this time, locating Ho Chi Minh City for investment becomes difficult, but the other option is to rent ready-built factories in the industrial park to invest in production. 2. REASONS FOR RENTAL FACILITIES AVAILABLE IN INDUSTRIAL ZONES 2.1 Prefabricated factories in industrial zones still have investment incentives such as land lease Investors who are interested in renting land will have investment incentives under the current Law on Investment such as corporate income tax incentives, land rent, etc. but that is not reasonable. The investors renting ready-built factories with only 500 to 1,000 square meters area still enjoy incentives like businesses renting 2 hectares or 3 hectares. Even firms that hire ready-built workshops just move into production and can cut down on environmental and investment procedures. 2.2 The opportunity is divided equally among all small, medium or even large enterprises Why is that? In fact, small and medium enterprises in Vietnam currently account for more than 80% of the total number of operating enterprises, and there is a fact that the majority of enterprises have been operating in between residential areas. This is being gradually overcome by local authorities through the relocation of businesses to industrial parks and industrial clusters to ensure safety for residential areas. If your business is doing business with foreign countries and unfortunately the foreign partner requires some environmental permits, international safety certificates, you cannot give them to them because you will not granted if producing in a residential area. And the long-term future of your business will be in industrial zones, for sure. However, it is not easy to enter an industrial park in Ho Chi Minh City because the land is exhausted, the price is very high and the new plan is currently only for rent in one hectare unit, like a business. Small, limited capital scale can not rent 2ha or 3ha at a high price. You need to know that renting a factory with only 1,000 square meters in Dong Nam Cu Chi Industrial Park will give your business significant advantages in terms of tax incentives, investment procedures and above all about convenience. Maybe you can choose a factory location near your partner, it is SO great, right?
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