Site Selection in Vietnam: The Essential Checklist for choosing the Correct Industrial Location for Businesses

When planning to expand operations in Vietnam, one of the most important decisions is choosing the right factory for lease. Location plays a decisive role in supply chain efficiency, labor access, and long-term competitiveness. Northern Vietnam has become a magnet for manufacturers and logistics providers thanks to its proximity to China, international seaports, and Hanoi’s dynamic economy.

To help investors and operators make the best decision, here’s a practical site selection checklist for securing the right industrial location in Northern Vietnam.

1. Connectivity to Airports and Ports

The first step in choosing a factory for lease is evaluating proximity to major transportation hubs. Northern Vietnam offers strong advantages:

• Noi Bai International Airport (Hanoi): Ideal for air freight, high-value goods, and time-sensitive exports.
• Hai Phong Port: The region’s deep-sea port capable of handling large container vessels.
• Expressway Network: Links Hanoi to Hai Phong, Quang Ninh, and Lang Son for quick access to borders and seaports.

Companies engaged in global trade should prioritize sites with direct access to both airports and seaports to minimize logistics costs and reduce delivery times.

2. Access to Skilled Workforce

A build-to-suit factory for lease is custom-built according to a tenant’s exact requirements. The developer cA key advantage of locating in Northern Vietnam is its deep pool of skilled labor. Hanoi and nearby provinces such as Bac Ninh, Hai Duong, and Hung Yen host a wealth of technical schools and universities, providing workers trained in manufacturing, engineering, and logistics.

When selecting a factory for lease, businesses should evaluate:

• Proximity to population centers for easier recruitment
• Local labor costs compared to other regions
• Training institutions and workforce development initiatives

Access to talent can significantly impact productivity and operational success.

3. Infrastructure Readiness

Industrial zones in Northern Vietnam vary in their level of infrastructure development. Before signing a lease, companies should check:

• Road and utility connections (electricity, water, telecommunications)
• On-site facilities (fire protection, drainage, waste treatment)
• Availability of support services such as logistics providers or customs clearance offices

Choosing a factory for lease in a well-developed industrial park reduces startup delays and ensures smooth daily operations.

4. Regulatory Compliance and Incentives

Different provinces in Northern Vietnam offer varying levels of investment incentives, such as tax holidays or reduced land use fees. Companies should also confirm zoning compliance and legal requirements before leasing.

The Vietnam Ministry of Industry and Trade provides updated information on regulatory frameworks and preferential policies. Partnering with an experienced developer ensures full compliance and reduces risks during setup.

5. Total Cost of Occupancy

While rental rates are important, businesses should consider the total cost of occupancy when evaluating a factory for lease. This includes:

• Monthly rental cost per square meter
• Service charges and maintenance fees
• Utility rates (electricity, water, telecommunications)
• Transportation costs for shipping goods to ports or airports

Balancing rental rates with logistics savings often determines the most cost-effective choice.

6. Flexibility and Scalability

Business conditions change, and companies may need to expand quickly. When choosing a factory for lease, it’s important to assess:

• Availability of additional land or adjacent space for future expansion
• Lease terms that allow for modifications or adjustments
• Flexible layouts that can adapt to new production lines or technologies

Scalability ensures that your location can support both current needs and long-term growth.

7. Developer Reputation

the reliability of the developer or landlord is crucial. For those developers with international standard such as Core5 Vietnam, we pride ourselves on delivering world-class industrial properties with international standards. Our ready-built and build-to-suit factories are strategically located in Northern Vietnam’s prime industrial zones, designed for efficiency, sustainability, and scalability.

Conclusion

Selecting the right factory for lease in Northern Vietnam requires careful evaluation of logistics connectivity, workforce availability, infrastructure, regulatory compliance, costs, and scalability. By following this checklist, businesses can secure locations that not only meet current needs but also support future growth.

With Core5 Vietnam’s expertise in industrial real estate, global and local companies alike can find facilities that deliver operational efficiency and long-term value.