In recent times, ready-built factory for lease in Da Nang has thrived strongly, helping to tackle an urgent need for business premises amongst domestic and foreign-invested enterprises, especially small and super small ones, as well as creating favourable conditions for the industrial real estate to take a new progress step.

An impression of the Long Hau JSC-developed hi-tech factory cluster for lease in the Da Nang Hi-tech Park

The Long Hau JSC, the developer of a number of industrial parks in southern Viet Nam, late February, started the construction of the hi-tech factory cluster for lease in the Da Nang Hi-tech Park, which is the first of its kind in Viet Nam.

Covering a total of over 29.6 ha of land, the 1,050 billion VND cluster, once completed, will provide ready-built factories, with an area of 500 - 3,300m² each, for investors, plus 170m² offices for rent.

The factories are expected to be very attractive to firms operating in technology and supporting industries such as precision engineering and electronic parts, and sensor manufacturers.

In addition to its ready-built factory for lease, the project will offer construction consultancy, job introduction, environmental sanitation, and support services for businesses, especial small and medium-sized ones.

When the project is completed, it is expected to attract about 120 support enterprises with a total investment capital of about 1.1 billion US$, and create employments for about 8,000 job seekers.

Bui Le Anh Hieu, the Marketing Manager of the Long Hau JSC, said, most foreign investors, especially small and medium-sized enterprises (SMEs), when entering the Vietnamese market, want to use the ready-constructed infrastructure to explore the market before making long-term investment decisions.

On the other hand, the rising investment wave poured into the country also made the land fund become narrow. Therefore, a hike on land rental fees is hindering local SMEs to find production premises, especially in urban areas with limited land fund like Da Nang.

Based on these facts, that is no denying that ready-built factories help businesses save costs and quickly go into production, and facilitate the industrial real estate to thrive as well.

Japan’s Hatsuta Seisakusho Co., Ltd has pledged to build a hi-tech fire fighting equipment manufacturing factory, the first of its kind in Viet Nam, on a 6,000m² factory which is being built by the Long Hau JSC.

According to business insiders, ready-built factory for lease will continue thriving in the next few years, especially when Viet Nam emerges as a new Asian production hub, with Da Nang being a greatly potential market.

Currently, the average monthly rental rate is set at about 2.5 - 3.5 USD per m².

During this year, FDI attraction in such aspects as IT, hi-tech and supporting industries is a priority.

Therefore, the demand for ready-built factories amongst enterprises involved in support and high-tech industries is increasing rapidly.

Pham Bac Binh, the Chairman of the city’s SMEs’ Association, highly appreciated the upward trend in the construction of ready-built factories for rent in the face of a shortage of business premises. However, it is worth noting that reasonable rental charges must be ensured.

Currently, factories for lease cover a total of over 216,610m² in the city’s 6 industrial parks.