Linh Trung EPZ 

TAT, a Japanese metalworking company, has leased a serviced workshop in Tan Kim IZ in Can Giuoc district of Long An province.

Before leasing the workshop, Hosomi Juny, TAT’s director, considered two options. 

With the first option, he would have built a 500 square meter workshop which would have cost $350,000, with two years needed to fulfill procedures on leasing land, building workshops and applying for investment license.

With the second option, he would have to rent a ready-made workshop and pay $2,500 in rent, or $5 per square meter, a month. 

He finally decided to choose the second solution to save time for procedures and have  reasonable rent. 

Byun Joon Seok, CEO of Somang Vina, said he was satisfied with the infrastructure and services in the ready-made workshop provided to his company.

He can lease many items and does not have to buy a forklift truck which would cost VND400-500 million. Instead, he leases the truck as well as a safe and a printing machine.

The demand for small-size production workshops has been increasing rapidly, giving more opportunities to real estate developers. The most ideal positions for the business model are land plots near industrial zones, ports or suburbs of large cities.

Opening in 2012, Kizuna workshop in Long An, developed by a Vietnamese businessman, is believed to be the pioneer in the field.

To date, the investor has built three workshop blocks in HCMC and Long An province, providing 100,000 square meters of workshop in 2017. Its clients are from many countries, including Japan, South Korea, Australia, the US and Hong Kong. 

Kizuna not only leases ready-made workshops, but also provides associated services, including legal and administrative procedures and IT services. It also rents vehicles, office equipment, and conference rooms, and provides entertainment services.

Following Kizuna, ready-made workshops have arisen in many IZs in HCMC, including multi-storey ones. Tan Thuan Company, for example, has three standard 8-storey workshop blocks in Tan Thuan EPZ for lease. 

The multi-storey workshop model is also in Linh Trung EPZ and Hiep Phuoc IZ. The former designs workshops with seven floors and one basement, while Hiep Phuoc plans to build a 6-storey workshop on an area of 20,000 square meters in the first phase. In the future, four workshop blocks will arise with total floor area of 45,400 square meters.

Nguyen Hoang Nang, head of the HCMC IZ and EPZ Management Board, said multi-storey workshops are a new model in Vietnam but its development potential is are great.

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Mai Chi