Necessary information for investors when investing in Vietnam industrial zone

The decision to invest in Vietnam industrial zone can be complicated and requires contemplation. The foreign investors not only pay attention to the price of factories for rent but also to other important elements that need to be suitable for the business development of their enterprises in the long run. So, what do foreign investors need to pay attention to when investing in industrial zones in Vietnam? Read this article to have an overview of industrial zones in Vietnam as well as the procedures and possible concerns when investing in industrial zones in Vietnam. 

1. Overview about Vietnam industrial zone 

Vietnam industrial zones are the areas where big enterprises specifying in industrial goods and manufacturing services settle. Industrial zones include: free-trade zones, supporting industrial zones and eco-industrial parks. An industrial zone has defined geographical borders and is not the living place for residents. It requires the Prime Minister’s decision to be established and respect the conditions and procedures set in Decree 82/2018/NĐ-CP.

Regarding the space: Vietnam industrial zones all have a system of fence for industrial zones as their borders. All manufacturing activities are adjusted by the rules of current law and have to respect specific legal regulations, but on the other hand, are given many preferential policies. Also, the whole technical infrastructure is designed to serve industrial manufacturing activities and supporting services for the industry. 

As far as their functions are concerned, the industrial zones have industrial production function and also provide the services which support industrial production. Each industrial zone is planned to fit with specific  industries and purposes for the unity and specialization in the manufacturing process of the enterprises. 

As regards to the planning: Vietnam industrial areas can not be freely established but have to follow the planning approved by the government - which will build up environments that are favorable for investment with a unified infrastructure system and a thorough frame of mechanism and policies. 

2. Helpful information for choosing Vietnam industrial area to invest 

2.1. Valid legal documents 

When choosing Vietnam industrial area to invest, we need to pay attention to the licenses that the owner possesses and their legal documents that have been validated. 

- If the licenses of the owners are not validated for the target industry of the investors, they are not allowed to invest in this industrial zone. 

- The licenses relating to environmental regulations, and those for noise and waste needs to be paid special attention from the investors, to avoid the related problems with the authorities. 

2.2. Investment procedures 

- According to the common law, the investment procedures are the same for all industrial zones. 

- In some specific areas with their own development orientation, Vietnam industrial zones may require some other related documents from the investors. 

- It is essential to find out about the necessary legal documents before investing in any industrial zone. 

2.3. Price policies 

- For the big economic corporations in the world, the rental price of land is not a major concern as it makes up just a small part in the investing capital structure. However, it is a major problem for SMEs. Therefore, an industrial area with long-term renting policy and reasonable and stable price will be an ideal choice for investors. 

- The cost that needs to be taken in consideration: land rental, factory rental, management cost, water, electricity cost, charge for waste water treatment,...

- The rent of Vietnam industrial area with complete infrastructure is normally equal to that of factory for rent outside. The investors should consider choosing the industrial areas that are starting to be constructed and have a plan for the infrastructure to be finished in the future. 

2.4. Infrastructure and position of transportation infrastructure

- Infrastructure and position of transportation infrastructure 

- The position of transportation infrastructure refers to residential areas, national roads or highways, railways, airports and the nearest port(s). An industrial zone with complete transportation infrastructure will help to save cost for goods transportation and delivering/ reception. 

- The infrastructure includes: the main roads, the internal transportation system, the system of water and electricity, the spare electricity supplier, security system, water treatment system, ...

2.5. Professional supporting services 

Complicated administrative procedures are one of the major concerns of investors when approaching the market in Vietnam. Choosing Vietnam industrial zones which have the supporting services relating to composing and managing rental contracts, licenses, administrative procedures - HR, accounting, etc will save time and cost for enterprises and allow them to focus on manufacturing activities.

Kizuna - Optimal and high quality ready-built factory for rent 

The system of high quality workshops and factories for rent at Kizuna is strongly preferred by many companies. Here are some values and benefits that the business will receive when renting a factory at Kizuna. 

- Strategic locations: Long An - nears HCMC, harbors, airport, Phu My Hung residential zone 

- Optimal architecture: Variety scales from 250m2 to 80,000m2 with clear views and modern canopy system 

- Infrastructure system and utilities of Factory Zones are all synchronized: clean, green area, water system, three-faces electricity power, canteen and 24/7 security  

- Ecosystem provides more than 50 services 

- Our staffs can assist in all languages

- Easy in - Easy out: fast operation, can liquidate before the end of the contract, without losing the deposit. 

As a business owner, you should understand all the important and essential requirements of a workshop for rent. We hope with the given information above, you will have a better understanding to select the most optimal option for your business. Let’s contact Kizuna for more consultancy.

Efficient production with Kizuna factory rental planning!

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