While the industrial and logistics real estate industries are increasing, industrial real estate and warehouses for rent in Vietnam are in great demand. Companies and manufacturers must respond to shifting conditions and hunt for a rental warehouse in Vietnam in order to cope with the new normal. As your company expands, you may need a place to procedure or store items and stocks.
The following post will help you obtain a better understanding of the Vietnam warehouses for rent, as well as how to locate a warehouse for rent in Vietnam.
Price Of A Vietnam Warehouse For Rent
When renting warehouse space, you will usually be charged based on how much square footage you utilize. While this is not always the case, it is a good starting point. Before you sign contracts, you will need to determine your specific storage requirements. For instance, do you have palletized items that can be piled on top of one another? Or are your goods available in a variety of forms and sizes?
Another critical factor to consider is where your inventory is coming from. Are your goods shipped on pallets? Then you will need a loading dock at your warehouse. Or perhaps your inventory will be delivered in enormous shipping containers? If this is the case, you will need to choose a warehouse that can handle container transportation.
Once you have determined your requirements and/or necessary warehouse logistics, you may look for real estate that ticks all of these boxes. However, since there are so many factors that directly affect your prices, estimating warehouse pricing can be difficult.
According to experts analyzing the warehouses market in Vietnam, it will continue to increase over time as a result of better industrial sectors and rising consumer expenditure. Thus, warehouse lease rates are expected to increase by 1.5 to 4% each year over the next years. To be more specific, researchers expected that the northern warehouse market will focus on Hanoi City and coastal regions such as Hai Phong City. These were the most populated areas in the region, with plenty of possible customers and personnel resources.
The southern provinces possessed an advanced highway system, as well as river ports, international airports, and seaports. The southern region of Vietnam has always been a market leader when it comes to rapid industrialization, owing to its advantageous placement near a supply chain or a logistic center.
As you can see in the diagram above, Hanoi seemed to have the highest average monthly rental price for warehouses among the given provinces in the first 6 months of the year 2021, at 5.5 US dollars per square meter. In terms of warehouse leasing costs, Ho Chi Minh City ranked second. Both Hanoi and Ho Chi Minh City were among the cities in Vietnam with the most growing warehousing sector.
Determining Factors That Affect Warehouse Rent Prices
The most important aspects influencing warehouse leasing prices in Vietnam are location, quality, and legal and administrative procedures.
Renting a warehouse in Vietnam is less expensive in the urban area than in the city center. The cost of renting a warehouse near Ho Chi Minh City is always exorbitant, particularly in the city center. Urban regions are often highly inhabited.
The warehouse should not be positioned in an industrial zone or downtown. The best warehouse is one that supports the company’s objectives. It might be near to the supplier of the resources. Basically, the warehouse must check the needs and utilizes used for each industrial operation. A professional and high-quality warehouse in Vietnam will always be pricey.
Customers who engage with the warehouse and forwarders who receive items from the warehouse are the most crucial factors of warehouse quality. A well-kept warehouse will keep employees safe. Big machines and equipment utilized in the production process generate a great deal of vibration. If the storage is of low quality, it will degrade quickly. The facility will be built with adequate ventilation to provide a safe working environment for employees.
Procedures Legal And Administrative
When renting a warehouse, practically all suppliers offer recommended after-sales services. After-sales services contain legal and administrative procedures, in addition to discounted services. Because of legal procedures or locations that are not part of the business market, it is challenging to find a site on which to establish factories.
Moreover, as the land budget for developing companies grows more restricted, land prices skyrocket. The company’s strategy is to buy pre-built warehouses. However, the production area is limited to a few thousand square meters, which makes it unsuitable for medium-sized firms or those wishing to grow.
Steps To Locate A Vietnam Warehouse For Rent
In the current economy where there is insufficient stability to acquire assets and firms are starved for operating cash, renting a warehouse is a reasonable choice.
Selecting An Industrial Real Estate Company
Brokerage services can also be obtained through the factory rental service. Industrial real estate agents in Vietnam link enterprises looking to rent facilities with leasing companies. You will not have to spend time searching for a factory if you discover a reputable industrial real estate firm in Vietnam.
Vietnam’s industrial real estate companies will aggressively deliver information to your company. Companies will learn about pricing, deposits, and processes from industrial real estate companies in Vietnam. Concurrently, contract agreements and many other concerns between the parties involved.
Locating A Proficient Factory Rental Unit
There are currently various units that provide industrial warehouse rental services to meet the needs of businesses in a number of sectors. Customer feedback on the services provided by these divisions is studied by business owners.
Businesses may deal directly with all these divisions to determine which warehouse is best for them. Investors should depend on the brand and reputation of the warehouse rental unit to determine its dependability. Organizations may make better decisions by analyzing customer feedback on warehouse rental unit services.
It can be argued that selecting the right Vietnam warehouse for rent for your purposes can help firms grow, particularly manufacturing and processing industries. When selecting a warehouse lease to establish a supply chain system, you should consider the above aspects to decide whether you should hire your chosen warehouses or not.