[Vietnam Biz – Part 5] Land Purchase, Rental, or BTS in Vietnamese Industrial Parks: A Complete Comparison! What Determines the Right Choice? (Middle Part)

2. Key Factors in Selecting an Industrial Park

When choosing an industrial park in Vietnam, it is essential not only to compare land purchase, rental factories, and BTS (Build to Suit), but also to consider factors such as investor type, industry characteristics, and geographical conditions. For land purchase, remaining land-use years, minimum lot size, and regional price differences between the north and south are critical. For rental and BTS options, points of evaluation include initial investment, flexibility, and factory specifications.

Additionally, the investor (developer) of the industrial park, the suitability for your industry, and the surrounding logistics and infrastructure environment all significantly influence decision-making. Identifying the most suitable option based on your business plan and risk tolerance is the key to a successful entry.

• Initial costs and risk levels differ significantly depending on land purchase or rental.

• Support systems and infrastructure quality vary depending on the developer’s capital background.

• Selecting a location aligned with your industry and production requirements is essential.

• Logistics access and infrastructure readiness should be compared carefully.

• Ease of administrative procedures and licensing is also an important evaluation point.

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2.1. Differences by Industrial Park Developer Type (Local, Japanese, and Other Foreign Investors)

Industrial parks in Vietnam are broadly categorized into three types based on the developer’s capital: local investors, Japanese investors, and non-Japanese foreign investors.

Local-invested industrial parks offer relatively low land and rental costs; however, infrastructure and language support may be limited, and communication is typically only in Vietnamese or English.

Japanese-invested industrial parks provide high-quality infrastructure and strong support systems with Japanese staff on-site, though land and rental costs are generally higher.

Other foreign-invested developers—often from Western countries or Singapore—offer infrastructure comparable to Japanese developers, and in some cases, Japanese language support is available. Their pricing is usually lower than Japanese-invested parks.

In all cases, it is vital to check their capabilities in licensing support and handling issues after entry.

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2.2. Selection Criteria Based on Industry and Location

Selecting an industrial park requires setting criteria based on your industry and desired location. For high-tech industries, high-tech parks offering tax incentives are ideal. Heavy industries must consider factors such as ground conditions and floor load capacity.

For supporting industries, choosing an industrial park close to major manufacturers can help reduce transportation costs. For export-oriented companies, the availability of EPE (Export Processing Enterprise) licenses or export processing zones is essential for customs and tariff advantages.

It is important to thoroughly evaluate the specifications of each industrial park, administrative support systems, and logistics infrastructure to select the most suitable location for your business operations.

• Required infrastructure and available tax incentives vary by industry.

• Export-oriented businesses must check EPE availability and export processing zone designation.

• Proximity to logistics routes and suppliers is a major factor.

• Smooth administrative procedures and service windows should be evaluated.

• Factory specifications such as ground strength and floor load capacity must be verified.