How much does it cost to build a factory in Viet Nam? (2020)
15 January, 2021
The cost of building a factory in Vietnam is constituted by 3 main factors: land, construction fee and certificates.
- Land: The price of land depends on the location. Land price close to big cities like Ha Noi and Ho Chi Minh is about $90/m2 to $100/m2, Locations are more than 200 km away from Ha Noi like Thanh Hoa province, land price is just about $50/m2, Land close to port also is more expensive than land in a remote area. And the land-use term is 50 years.
- Certificate: It is obtained after you own land, including: certificate of investment, construction permit, certificate of environment protection, etc. The total cost is not over 2% of the project.
- Construction fee: The construction fee including: design, pre-fabrication steel, foundation work, slab concrete work, fire-fighter system etc. The construction fee depends on location, client’s standard, design etc. For example, the construction fee in an industrial zone about 40km from Ha Noi varies from $70 to $130 per square meter.
So total investment cost in Vietnam including 3 major things: Certificate/Licence, Land, Construction.
For example, if a client is going to build a 1-hectare factory around Ha Noi the cost will be about 1.6 million to 2.3 million USD.
Should rent a ready-built factory or build a new one by your own?
Also there is another way without having to build a factory from the ground. Investor can rent a ready-built factory inside or outside an industrial zone. This way will save time for certificates like construction permit, environment protection permit but not immune from investment certificate and business registration certificate.
The cost for leasing varies from $3 to $7 per square meter a month.
Choosing to rent a warehouse or factory is only suitable for a small-medium company who wants to stay short term in Vietnam.
By our estimation: your pay for a 2 year ready-built factory leasing contract is almost enough for you to build a new warehouse from the ground (with the same condition).
Let’s reach at our service: SETUP COST ESTIMATION, 100% REMOTE for your detail REPORT.
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–Tip to rent a factory or warehouse in Vietnam
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