What we should notice to rent factory for mechanical production

Currently, many enterprises need to rent factories for mechanical production in Ho Chi Minh or for expanding or moving production into industrial zones instead of operating business in residential areas. However, before choosing a suitable for mechanical production, some key points should be noticed as follows:

1. Determine your rent needs

For renting a factory, it is also necessary to specify the real needs that your enterprises need to open a mechanical production project. How large of factory do you need to manufacture your mechanical products? Is your production chain size long? How high workshop ceiling is? The width of the workshop should be enough to arrange production lines? The minimum width of the welding place in the workshop should be?

The above questions are essential for you to determine in advance in order for the project to run smoothly from the beginning, which will help you avoid the situation that machinery and equipment has no space to arrange due to big-sized production line or high loading (especially stamping machines), it is definitely necessary to have a careful survey for the location of the rented factory.

2. Know your pocket

Investment capital is one of the most important things when opening a mechanical workshop - machine manufacturing or any industry. Because, this will be a decisive factor in the success of your mechanical production project. So how much capital do you need to open a mechanical workshop?

In fact, this problem will depend on many conditions, such as the size of the factory, the expected production capacity and financial condition of each enterprise. Also, what products do you manufacture and how modern of machinery technology is? (semi-automatic or totally automatic). For example, a large workshop will require a large initial investment capital, and if the enterprise's mechanical-machinery products have high technology content and automatic, the value of machinery and equipment is also very large for investment too.

Therefore, it is advisable to proactively evaluate the cost of renting a factory, the initial capital for machinery assets, the cost of materials and labor, and the estimated value for the product to market. Take these factors into consideration to come up with the best number for your project. Even if you are in the supporting industry, you can access current incentive packages for ancillary projects according to regulations of investment.

3. Define project area

Not all listed industrial parks have the same location and rental rates. If you are an enterprise that is manufacturing mechanical - manufacturing machines in Binh Chanh district, you obviously have a lot of options for expanding production or moving production into industrial zones because there are many industrial zones in Binh Chanh, Ho Chi Minh. So, it takes time to make consideration.

However, if you have production or processing contracts for large partners with large orders with a limited time, but your partners are in industrial zones in inner districts or in provinces bordering Ho Chi Minh City, how do you think about that? You will definitely need to choose a location that has a relative advantage, not only location advantage, then it must be close to your supplier or maybe the cost advantage of renting a factory.

In my opinion, the project area should be neutral among many factors. Especially for small and medium-sized enterprises without large amount of capital, it is necessary to consider carefully because it affects product prices and your competitiveness in the market.

4. Make survey and investment industry survey are accepted

After selecting the appropriate area and filtering out a list of industrial parks that you consider ideal place, the next thing is to contact as many industrial parks you are interested to check whether the project should be opened there.

The fact is that industrial zones can approve many industries, but not all manufacturing industries in mechanical sector are accepted. Therefore, you should ask the management office of industrial park whether they approve through the preliminarily environmental impact assessment such as generating solid waste, wastewater or noise in the production process, then you know if your project can satisfy or not.

5. Select and plan the layout of machinery and equipment

After choosing which industrial park is suitable for mechanical-machine manufacturing industry, you need to negotiate with the industrial park on how to rent the factory space, how to arrange electricity and water use volume. You will then provide the industrial park side with your preliminary layout based on the factory premises provided. Does your project need an office? You may need an office for 3-5 people if you need an on-site production and business management department or you can simply rent a warehouse to store raw materials and finished products. However, the factories for rent developed by Sai Gon VRG in Binh Chanh district, Ho Chi Minh have convenient basic office layout with a convenient ground floor and a mezzanine.

An important thing for mechanical production project is that you need to ask from the beginning whether the workshop uses a crane or not and if there is no crane, the two sides negotiate how to arrange the crane in workshop. For many mechanical and machine production projects, manufacturing may need 5 ton or 10 ton cranes to lift steel or weld and complete products.

6. Complete investment dossiers

During the negotiation on how to arrange the workshop layout, you also need to complete the procedures for investment registration and establishment of a business (or branch of the company). In order for the investment project to be approved, the production process of the mechanical project should be provided sufficiently and clearly so that the local industrial park management board has enough basis to assess the feasibility of your project.

Sai Gon VRG - the developer of industrial property for lease in Le Minh Xuan 3 Industrial Park (Binh Chanh district, Ho Chi Minh) will support businesses with the procedures for applying for Investment Registration Certificate and Business Registration for free of charge.

7. Install machine and production operation

After receiving the Investment Registration Certificate, you will proceed to install machinery or install cranes (if any), then about 1-2 months after installation, the project can be put into production. With Sai Gon VRG's factory for rent, you can be assured of the quality of the work. You can rest assured to manufacture in our factory and aim for sustainable development.