Strong trade development, the relocation of manufacturing from China to Vietnam, and the increasing number of companies choosing to rent existing factories rather than construct new ones are the main drivers of the increase in Vietnam warehouses for rent. The growing amount of foreign direct investment (FDI) in Vietnam, significant M&A transactions, and changes in the global industrial supply chain have made high-rise warehouse and factory space rents enticing.
Renting a warehouse in Vietnam plays an important role for businesses looking for offshore operations, as it’s a cost-saving method with great flexibility and scalability. The strategic location of Vietnam’s warehouses is essential to the business’s supply chain management. They can facilitate effective delivery and lower transportation expenses as they are conveniently accessible from a number of transportation hubs.
Types of warehouses available for rent in Vietnam
- Modern logistics parks and industrial zones
Modern storage facilities are available and in high demand in logistics parks and industrial zones in Vietnam for companies in the manufacturing, distribution, and logistics industries. Large-span layouts and tall ceilings are typical features of these Vietnam warehouses for rent. They’re all established with automated systems and material handling equipment. Plus, companies will benefit from their locations, ideally close to important transportation hubs.
- Standard warehouses in urban and rural areas
In Vietnam, standard warehouses are widely used by a range of companies and sectors. Their size, design, and services vary from small storage facilities to large distribution hubs, making them ideal for all businesses. They typically have amenities like office space, overhead doors, concrete flooring, and loading docks. Depending on the business requirements, their locations can be in commercial urban or rural areas.
- Temperature-controlled warehouses for specialized goods
With Vietnam’s fast-growing economy and technology, the country can provide companies with various temperature-controlled warehouses. They are well-equipped with insulation and HVAC systems, keeping your products in ideal temperature and humidity conditions.
Factors to consider when choosing a warehouse in Vietnam
- Location and proximity to ports, airports, and major cities
One of the purposes of renting an offshore warehouse in Vietnam is to lower costs, increase supply chain efficiency, and decrease transportation time. Thus, a warehouse that can benefit your transportation and distribution should be around large cities, ports, or airports.
- Size and capacity of the warehouse
Depending on your product type (fragile or tough) and size (bulky or small), you will decide how much storage space and inventory volume of the warehouse you should go for. Plus, it’s necessary to think about equipment and machinery handling space.
- Infrastructure and facilities (e.g., loading docks, security systems)
A warehouse should be well-infrastructured to assist the operation. That’s why renting a storage space with floor load capacities, overhead doors, loading docks, and ventilation systems is important.
Plus, you should ensure it has the necessary security systems, including perimeter fencing, alarm systems, surveillance cameras, and access control systems. Therefore, your products can be safely stored and reduce unnecessary risks.
- Lease terms and rental rates
You need to examine the lease terms and rental rates the warehouse landlord offers to ensure they fit your long-term financial plans and budget. If possible, negotiate conditions that include flexibility, renewal possibilities, and allowances for tenant improvements.
- Compliance with local regulations and customs procedures
To avoid legal problems and regulatory obstacles, make sure the warehouse conforms to construction rules, zoning laws, and local restrictions. You also need to confirm that the warehouse complies with customs laws and procedures (especially in the import-export field); otherwise, you may need to pay penalties.
Steps to renting a warehouse in Vietnam
- Researching available options and market trends
Using industry databases, online platforms, and real estate listings to figure out the market and available options. Before choosing a Vietnam warehouse for rent, you need to pay attention to its size, location, facilities, infrastructure, and lease terms.
- Inspect potential warehouses
You can’t rent a warehouse without checking it in reality. You should visit the site to ensure every detail is correct as described and the place is what you exactly need. Ask the landlord for clarification if there’s something you’re unclear about the storage’s layout, conditions, and security features.
- Negotiating lease terms and signing a rental agreement
Negotiation is a must-have step for all contracts. There are some issues you should pay attention to, such as rental rates, deposits, attached amenities and services, lease duration, renewal options, etc. Review the contract carefully before signing and ask for legal advice if necessary.
- Setting up logistics and inventory management systems
The next step is to set up logistics and inventory management systems to start the warehouse operation. Inventory tracking software and warehouse management systems will help you track stock levels and maximize control. Plus, equipment and storage arrangements should be set up to make the best use of the available space.
- Ensuring compliance with local laws and regulations
Once you’ve rented a warehouse in Vietnam, make sure you follow the local laws and regulations. The Ministry of Industry and Trade, the Department of Planning and Investment, and other local government agencies may ask your company to obtain different licenses. You need to fulfill all the legal requirements so your warehouse operation can go smoothly without legal issues or penalties.
Challenges and risks of renting warehouses in Vietnam
- Quality and reliability of infrastructure and services
The quality of warehouse infrastructure and services can differ depending on the region. Some may not be featured with modern infrastructure or reliable utilities, creating difficulties for operation. Besides, sometimes, some warehouses are too far from highways, ports, or airports, posing challenges for businesses.
- Legal and regulatory uncertainties
Local law can change, and it may affect the effectiveness of some or all articles in the lease agreements. Thus, companies’ rights and responsibilities may be changed.
To ensure you’re updated with the changes in rules and the warehouse operation goes according to local law, you should contact a trustable real estate consultancy firm, such as Savills Industrial. They can give you the necessary advice and help you find the most suitable Vietnam warehouse for rent.
Conclusion
There are many reasons why Vietnam is a desirable offshore destination. The country is developing rapidly, with the expanding commercial, transportation, and logistic sectors, offering opportunities for businesses to grow offshore.
If you choose a Vietnam warehouse for rent, be sure to research the country’s market, transportation system, and relevant laws and terms. Remember that professional consultants like Savills Industrial can always give you the best advice on the issue. Thus, if you have any questions, contact them right now.
