Building a cost-saving factory with 6 tips for small enterprises

In the current economy, cost saving factory has developed rapidly. The demand to expand production factory of enterprises is very high. The investment trend of enterprises is moving to suburban areas to rent factory, mainly cost saving factory. In which, it must be mentioned the appearance of suppliers providing factory for rent in Long An. However, investors are still wondering whether to build or rent to get a cost saving factory model.

The system of cost saving factory in Kizuna

If enterprises are thinking about building a factory or particularly a cost saving factory, you should immediately take a look at the following 5 things:

6 Things need to be considered when building a cost saving factory

1/ High prices affect the purchase of cost saving factory

According to Mr. Huynh Huu Nghia - Deputy Head of International Business - Marketing Department, Ho Chi Minh City University of Economics, cost saving factory is the trend nowadays. Besides, the price of land in Ho Chi Minh City and the surrounding areas has increased significantly. Specifically, the price of land has increased continuously for 5 years from the beginning of 2014 to the end of 2018. Even in 2019, the price of land has not shown signs of cooling down. The escalating land price makes the land price increase very high, causing significant impacts on the whole economy. This is not a good thing for companies that buy land to build manufacturing factory. This also affects the construction plan of the cost saving factory of enterprises.

2/ Soil fever puts pressure on cost saving factory

Manufacturing is the first industry to be under pressure when land prices are pushed too high. With high land prices, the expense of renting or buying land is jumping. It can be seen that building cost saving factory will be quite far from reality for enterprises. Initial investment plan of enterprises as well as product price change. This has both affected the production process and caused the currency to be seriously devalued.

On the other hand, after a period of time, the cost saving factory location is not suitable for the market. Therefore, enterprises will spend a lot of money to rebuild factory, including cost saving factory at another location. Thus, if enterprises choose small workshop for rent in Long An, you will save much cost. Firstly, enterprises will have more time to learn about the host country. Secondly, enterprises can easily change production scale, Last but not least, finding a cost saving factory!

3/ Prevent dispute, fraud when choosing cost saving factory

One of thing, you need to consider when to choose factory for lease, including cost saving factory, is dispute, fraud. The rapid fluctuation of land price in Vietnam will also affect the land purchasing and selling process. Even the evaluation activities, complaints about land prices will often take place. The greed of unrelated people affects the land purchasing and selling process. Since then, the consequences such as disputes, litigation, fraudulent appropriation of assets etc,. are araised. These reasons affect both the interests of enterprises and land seller to choose cost saving factory. cost saving factory has many benefits.

Therefore, the suppliers of cost saving factory for rent in Long An are implementing many preferential policies. It is typical as Kizuna - one of the suppliers that has received a lot of investment from foreign enterprises. It can be mentioned as that the price of factory for rent in Long an will not increase during the contract period. The normal workshop renting period will be at least 1 or 2 years. Therefore, enterprises will not be adversely affected by the increase in the price of factory for rent. Since then, enterprises will ensure the stability and development of production. For all these reasons, cost saving factory should be chosen.

4/ Real estate bad debt is cost saving factory

More and more enterprises choose cost saving factory as their place production. Buying land at the moment when the land prices remain high is not good. In the current time, everyone wants to own a land area to invest in production and business. Therefore, some individuals or enterprises, due to insufficient expenses, have resorted to financial leverage. They go to the bank for loans or financial planning and asset mortgage. If the debt is not well controlled, this will become bad debt on real estate. Enterprises will have to work hard for years, even decades to resolve debts. So, the cost saving factory is the ideal choice for enterprises.

Many enterprises use cost saving factory for optimize capital

Conversely, if enterprises choose to rent a factory, they can limit the bad debt. The company's cash flow is stable and the business is invested to be expanded to make a profit.

5/ Situation of investing in cost saving factory

In a land fever, more and more enterprises use cost saving factory to optimize capital. Land fever makes some enterprises think of buying and then selling land at higher prices. This will make many enterprises transfer money from production investment to real estate business. The consequences will cause crowd effects affecting the overall economy. Enterprises do not carry out production activities but focus on trading land for profit. That is not the right step in solid economic development. On the other hand, when the real estate market cools down, we will see how bad the effects are. cost saving factory in Kizuna is fully-equipped with many utilities.

Cost saving factory is an ideal opition

6/ Cost saving factory is a effective cost reduction idea for manufacturing company

Currently, land prices are rising very fast, with no signs of sustainability. So enterprises should be cautious when investing at this time. The potential risk is very high. Instead of buying land for business development, it is safer to choose factory for rent. Suppliers of cost saving factory for rent in Long An are currently developing a lot to bring development opportunities for enterprises This will help enterprises easily choose a satisfied factory without paying too much attention to the land price and the impact of it. So far, cost saving factory is a smart choice!

Kizuna's ready-built factory for rent is a solution for saving cost for SMEs

Kizuna offers a wide range of quality ready-built factories which meet the standards of “clean and green” working environment and are chosen by more and more enterprises. When choosing a manufacturing factory for rent of Kizuna, enterprises are offered many benefits, such as: 

Kizuna's serviced factories for rent is perfect for SMEs

- Strategic location: The factories are located in Long An province, which shares borders with HCMC and is near Cat Lai Port (26 km), Tan Son Nhat International Airport (24 km), Phu My Hung residential area (16 km). Besides, factories for rent offered by Kizuna are also located by the important national roads such as: 1A, 50 and Long Thanh - Ben Tre highway. 

- Optimal factory architecture: Kizuna offers factories for rent with a wide range of areas: from 250 m2 small factory for rent and 1000 m2 factory for rent to 80.000m2 large workshop for rent. 

- Service factory with good ventilation and convenient 4-meter long roofs. 

- Uniform technical infrastructure which is green, clean and fully equipped with water, electricity (3 sources of electricity), canteen and 24/7 security. 

- A highly supportive service ecosystem with staff who are fluent in Japanese/ Korean/ English. 

- Convenient, quick and safe Easy in - Easy out policy

- Highly supportive service ecosystem with 50 various services. 

Besides the chains of factories, at Kizuna we focus on developing a uniform system of factories with stable architecture, many doors for transporting goods by trucks, separate elevators for goods and staff, and a modern fire detection system, especially for factory space for rent models. Specifically, our blocks O and P are smartly designed to fit with many industries which need to rent a factory such as fabric factory, pharmaceutical factory, food manufacturing factory, etc. 

Start your efficient production by planning factory rental with Kizuna

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