Warehouses and factories play a crucial role in running a business. It defines whether your business can run efficiently. Choosing a place that suits the business’s needs is something any business owner needs to pay attention to due to its influence on many aspects of the business, such as production, logistics process or budget.
Vietnam is currently a economic powerhouse of Asia. If you are looking for opening, running of expanding your business in Vietnam, down below are 12 factors to consider when looking for a Vietnam warehouse for rent that will assist you in making the most suitable choice for you and your business.
Factors to consider when looking for a Vietnam warehouse for rent
Location and condition of warehouse
The location of the warehouse is the deciding factor in whether or not the transportation will be convenient. The location of your warehouse may not be near industrial parks or the city center but must ensure convenience in travel of raw materials and finished products. Grasping this factor will not only help you shorten goods supply time but also reduce the chances of causing unnecessary transporting costs.
In addition, the condition of the warehouse you intend to rent is also another thing you need to consider when renting a warehouse. Ideally, the warehouse that you rent should located on high ground to avoid mold. Entrance road must be wide enough for trucks and cars to easily move through. Drainage systems also need to be checked frequently to ensure a consistent quality for smooth production activities. Other factors of the warehouse that you also need to keep in mind are: cleanliness, humidity, termites, insects, etc.
Area and rental form
Determine the amount of goods your business needs to store as well as how you will arrange the products so that you can choose a warehouse with a fitting area. There are many forms of measurement such as: renting by the square meter, renting by the ton, renting by the quota, etc. In addition, you also need to calculate the area of the goods picking aisle. Normally this area will account for about 10% of the cargo loading area.
Rent cost
The location, condition and type of the ware house are factors that directly affect the rental price. You need to consider and evaluate these factors to decide on a reasonable rental price. You also need to consider the scale of your business, as well as your financial capacity to opt for the most suitable rental price.
Put rent costs into consideration when looking for a Vietnam warehouse for rent
Support services
If you are looking for Vietnam warehouse for rent, you need to pay attention support services. Services can include: electricity, water, cargo loading and unloading services, cargo care, transportation services, etc. If the warehouse supports these services, the rental price will increase. Consider every alternatives so that you can make the best choice financially for your business.
Additional costs
Incurred costs are costs you cannot predict. These costs will occur during the process of running the warehouse. Calculate, do extent research and plan carefully to avoid unplanned costs that will affect your budget.
Processes and procedures
Import and export procedures are an important factor that will affect the timing of the production process as well as the production costs. Therefore, you should discuss this issue carefully during the process of reviewing warehouses and factories before renting. From there, you can make wise decisions before signing the contract.
Managing goods
Keeping goods in warehouse long-term requires strict management by the business to avoid loss and damage. Of course, if the warehouse provides custodial services, it still requires consent from both sides. You can send someone to check the goods at a certain time or use security monitoring devices in the warehouse. This is an important experience in renting warehouses and factories that you need to remember to avoid wastage of goods.
Managing goods to avoid loss and damage to finished products
Warehouse visiting
First-hand assessment of the condition and quality of the warehouse is an necessary step that you need to take before making any decision. You can bring an expert with you to further examine the place and get advice. This action helps you gain a more objective view before deciding to rent a warehouse in Vietnam.
Rental period
The rental period is short or long depending on the needs or nature of the project of the business. However, finding a satisfactory warehouse is quite difficult, so you need to consider a stable, long-term rental plan, usually about 1 year. When the new contract renewal date comes, you can reconsider and then extend or end the contract.
Warehouse rental deposit
After deciding to rent, you and the will have to agree on the deposit amount. This is the amount of money to keep the contract between the lessee and the lessor. Normally, for a Vietnam rental house for rent, this amount is equal to the rental price for 3 months.
Terms needed in the contract of Vietnam warehouse for rent
Both parties need to carefully outline and review the terms of the contract before signing to avoid future conflicts. Terms that need to be in the contract include:
- Deposit and monthly (or annual) rental price
- Rental period and annual price increase rate if long-term rental
- Obligations and responsibilities of both parties
- Contract extension period
- If you want to change or amend or supplement any terms in the contract, the parties will create an addendum to the contract and must have the consent of both parties, not arbitrarily making unilateral changes.
- Commitment to ensuring security and safety of goods throughout the warehouse rental period.
Contracting
After agreeing and signing the contract, each party keeps one copy. If necessary, it can be notarized to increase legality and assurance.
Conclusion
We hope that the 12 experiences in renting warehouses and factories that we mentioned above will help you make wise decisions and maximize business efficiency. If you are looking for Vietnam warehouse for rent, these are the important factors that you should keep in mind.
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