In Vietnam, the land is owned by the State. The investors can lease land lot to establish their project. The foreign investor can either lease land or rent an existing factory space. There are three ways of leasing a factory site.
a. The investor can approach the Hanoi People Committee requesting recommendations on different properties available for setting up a factory. If the authority finds a site which would be convenient for the investor to set up its factory then the proposal shall be discussed with the investor. If the site is not vacant then the investor would have to take necessary steps to make the site ready for operation..
b. The other option is to lease out a site at some Industrial Parks which is an attractive alternative for the facilities and investment cost. The investor can enter into an “In-Principle Agreement for the Land Lease” with the landlord of the site or concerned authorities of the Industrial Park.
c. The last option would be to lease an existing factory site and enter into an Agreement with the concerned Vietnamese company.
On the basis of little research conducted, we propose the following locations for consideration to set up your operations.
1. The first suggestion is leasing out a site in the Phu Nghia Industrial Park in Hanoi. Investor would be in a position to lease out a site for a period of 45 to 50 years.
2. The second suggestion is the site in Quang Minh Industrial Park in Hanoi. This site can be leased out for a period of 45 to 50 years.
3. In Hanoi, the last option would be site in South Hanoi Industrial Park. This site also can be leased out for a period of 45 to 50 years.
4. Another alternative available for investor is to lease out a site at VISIP Bac Ninh, in the outskirts of Hanoi.
Investor can consider one of the above options for setting up a factory site.