Choosing a Factory for Lease in Vietnam: Key Questions to Ask the Landlord

Leasing a factory for lease in Vietnam is a significant decision that affects a company’s operations, costs, and future growth. For tenants, it’s essential to thoroughly assess not just the size and price, but also the terms and hidden factors that can impact daily operations.

Asking targeted questions before signing the lease can prevent costly surprises and ensure the space aligns with business needs. This article provides a list of crucial questions tenants should ask landlords before committing to a large industrial facility. It’s a proactive step toward securing the right factory for lease in Vietnam for long-term success.

What Is Included in the Lease Agreement?

What fixtures, infrastructure, and services are part of the lease?

When evaluating a factory for lease in Vietnam, tenants must clearly understand what comes with the property. Some landlords provide essential infrastructure like lighting, basic machinery hookups, or water supply, while others lease out only the bare structure. It’s important to ask whether the lease includes utilities, internal roads, or office partitions. Knowing this upfront helps tenants estimate additional setup costs.

Are utilities, security, or maintenance included in the lease price?

Many tenants wrongly assume that rent covers everything. However, maintenance fees, security services, and utilities are often billed separately. It’s crucial to clarify whether waste management or 24/7 security is part of the contract. Hidden operational expenses can significantly increase the cost of occupying a factory for lease in Vietnam.

Is the lease flexible on extensions, renewals, or subleasing?

Tenants should inquire about the lease term flexibility. If expansion or business model changes are possible, having renewal options or subleasing rights in the lease provides long-term agility. In Vietnam, some industrial landlords offer built-in expansion clauses, but tenants must confirm them early.

What Are the Zoning and Usage Approvals?

Is the factory zoned for your specific industry or operations?

Before committing to a factory for lease in Vietnam, tenants must verify that the zoning regulations support their specific industry. For example, chemical manufacturers or food processing businesses require special environmental approvals. Operating in a zone that prohibits your type of activity can lead to legal penalties or shutdowns.

Are there existing permits, or will you need to apply?

Some properties come with transferable operation permits, while others require new applications. Tenants should clarify this with the landlord and determine how long the approval process typically takes. Delays in permit approval can postpone the move-in schedule and impact business timelines.

Are there restrictions on hours, noise, emissions, or renovations?

Zoning laws may also limit production hours, noise levels, or emissions. Additionally, making structural modifications might require separate approvals. Understanding these constraints is essential before occupying any factory for rent in Vietnam, especially for tenants running round-the-clock operations or using heavy machinery.

What Are the Power Supply and Infrastructure Capabilities?

What is the available electrical load (in kVA)?

For any factory for lease in Vietnam, power supply is a foundational concern. Tenants should ask the landlord about the current electrical capacity and whether it supports their machinery and production needs. If the existing supply is insufficient, upgrades may be needed—and those costs can be significant.

Is the water supply and drainage system adequate for operations?

Industries such as textiles, electronics, or food processing require large volumes of clean water and effective drainage. Tenants must ensure that the factory for lease in Vietnam can handle this demand. Inadequate systems can disrupt production or violate local environmental regulations.

Can the facility support telecom and automation systems?

Modern operations rely on stable internet and automation platforms. It’s vital to ask about telecom infrastructure, including fiber optic availability. Additionally, tenants should verify if the layout allows for installing automated systems, sensors, or smart security tools.

Are There Any Hidden Costs?

Are there service charges, waste treatment, or maintenance fees?

Tenants looking at a factory for lease in Vietnam should always go beyond the listed rental price. Ask the landlord to break down monthly or quarterly service charges. These might include common area maintenance, environmental waste processing, and landscaping costs, which can add up over time.

Who is responsible for different types of repairs?

Understanding repair responsibilities prevents disputes later. For instance, is the tenant responsible for fixing roof leaks, or is that on the landlord? Clarifying this will help tenants budget more accurately for their chosen factory for rent in Vietnam.

Is there an annual rent escalation clause?

Some leases automatically increase the rent each year. Tenants should ask if there’s a fixed escalation percentage or if it depends on market reviews. Having a predictable cost structure can support long-term financial planning.

What Is the Condition of the Factory and Its Safety Compliance?

Is the structure sound and fire safety certified?

Safety is non-negotiable when choosing a factory for lease in Vietnam. Tenants should request documentation on fire safety systems, emergency exits, and the building’s structural condition. Factories without updated safety certifications may not pass inspections, delaying business operations.

Have there been any recent renovations or upcoming works?

A freshly renovated factory may offer better conditions, but tenants must also consider whether future upgrades could cause disruption. Asking about scheduled maintenance or nearby construction projects helps tenants avoid surprises.

Are ventilation, lighting, and pest control systems in good condition?

Large-scale production requires proper airflow and hygiene standards. Before leasing a factory for rent in Vietnam, tenants should inspect ventilation systems and verify that pest control and lighting meet their operational needs.

How Is Access and Logistics Support?

Can large trucks or containers easily access the site?

A tenant choosing a factory for lease in Vietnam must consider truck access and road infrastructure. Ask if the site can accommodate 40-foot containers or frequent truck traffic. Narrow roads or low bridges can disrupt logistics and delivery schedules.

Are roads flood-prone or poorly maintained?

Factories located in areas prone to flooding can suffer major operational losses during the rainy season. Inquire about flood history, drainage systems, and road quality to ensure year-round reliability.

What are the rules on access hours and security checks?

Tenants should ask if the landlord allows 24/7 access or if there are time restrictions. Additionally, clarify security check-in protocols for staff and delivery drivers to avoid bottlenecks. A well-managed factory for rent in Vietnam should support seamless logistics.

Who Handles Maintenance and Repairs?

Is the landlord responsible for major repairs and upkeep?

In most cases, structural maintenance like roof and wall repairs should fall under the landlord’s responsibility. Tenants should confirm this before leasing a factory for lease in Vietnam to prevent unexpected costs and liabilities.

How responsive is their team when issues arise?

Ask about the landlord’s average response time for addressing facility problems. Delayed maintenance can interrupt production or damage stored goods. Reliable property management is a key indicator of a quality factory for rent in Vietnam.

Is there an on-site facility manager or point of contact?

Having a direct contact point, such as an on-site manager or technician, is a big advantage. This makes it easier to resolve day-to-day issues quickly. Tenants should verify if this support is available and how to access it.

Read more:

• Short-Term vs. Long-Term Factory for Lease in Vietnam: Which Suits You Best?
• How Factory Design Affects Workflow Efficiency in a Factory for Lease in Vietnam
• Factory for Rent in Vietnam: What to Inspect Before Signing a Lease

Selecting the right factory for lease in Vietnam goes beyond checking location and size. Tenants must proactively ask the right questions to fully understand what the lease includes, what limitations exist, and who is responsible for ongoing maintenance.

From zoning permits to infrastructure readiness and repair protocols, each detail affects operational efficiency and cost. Preparing a thorough checklist of questions to discuss with the landlord helps businesses avoid risk and secure a factory space that truly meets their long-term goals. Ultimately, a carefully chosen factory for lease in Vietnam is a foundation for future growth and productivity.

Are you new to Vietnam and seeking a factory for lease in Vietnam with nice location, ample space, modern amenities, and dedicated support? Explore the options at CORE5 Vietnam, stay updated with their latest developments, and reach out to their team to schedule a tour of the factory village.