READY-BUILT FACTORY (RBF)
With the fluctuation of the current industrial real estate market, along with the increasing number of foreign investors "introducing" to Vietnam, the form of leasing ready-built factories present in Vietnam about 5 years ago has become a trend of investment in expanding production, business is chosen by many business owners and companies. Because this model helps businesses save time, costs, quickly go into the production process.
Ready-built factory models will have infrastructure systems, ventilation systems, waste as well as production space. All are optimally designed, ready for businesses to rent. Currently, there are 2 types of ready-built factories for rent on the market. These are low-rise ready-built factories and high-rise ready-built factories.
The supply of ready-built factories in the northern, central and southern key provinces reached 6,203,192 m2, with a filling rate of about 79%. The supply is mainly developed by domestic investors, and some foreign investors from the United States, Singapore, Japan, typical projects completed in the past year include Kizuna high-rise workshop in Long An with more than 50,000m2 or Frasers Phu Tan in Binh Duong with about 40,000m2 of new supply into the market.
The ready-built factory market continues to operate effectively, despite the negative impact from Covid. In Q1 2022, the average rent of ready-built factories has returned to the level before the gap of about 4.0 USD/m2/month, and achieved a growth rate of nearly 5% year-on-year.
(Source: Vietnam Industrial Park 2022)