[Vietnam Biz – Part 7] How to choose the right Industrial Park in Vietnam: 5 key secrets for avoiding failure

5 essential tips for selecting an Industrial Park in Vietnam

When choosing an industrial park in Vietnam, it is crucial to evaluate multiple factors such as unit size, factory/warehouse specifications, auxiliary facilities, fire protection systems, infrastructure quality and building age. On-site inspection is indispensable—relying solely on catalog information can lead to costly regrets. Since standards for facility size and specifications can differ from those in Japan, attention must be paid to installation costs and operational workload. Keep the following key points in mind to ensure a successful selection:

• ・Be aware of differences between Japanese and local standards
• ・On-site inspection is essential for preventing mistakes
• ・Do not rely solely on catalog information
• ・Equipment and infrastructure specifications vary between parks
• ・Estimate medium- to long-term operating costs

1. Choosing the right unit size

In Vietnamese industrial parks, the mainstream unit size ranges from 2,000 to 3,000 m², while smaller units under 1,000 m² are limited in supply and rarely available. For larger space requirements, businesses can rent multiple adjacent units. It is important to select a unit with sufficient space based on actual production plans and future expansion needs. During site inspection, consider the shape of the lot and loading/unloading space to ensure it matches your operational needs.

Point	Details
Mainstream unit size	2,000–3,000 m²
Supply of small units	Under 1,000 m²: scarce
Multi-unit option	Adjacent units can be combined
Future planning	Choose with anticipated expansion in mind
Site layout	Check loading/unloading flow and space

 

2. Factory/Warehouse specifications: Ceiling height & floor load capacity

Ceiling height and floor load capacity vary depending on the industrial park. In Vietnam, the standard ceiling height for rental factories and warehouses is 6–9 meters, and the typical floor load capacity is 2–3 tons per square meter. It is essential to confirm in advance whether the equipment to be installed and the expected volume of goods can be accommodated within these standards. Since these specifications directly affect the efficiency of loading/unloading and storage operations, insufficient capacity may lead to higher costs and operational inefficiencies later on. During site inspections, do not forget to check the condition of the walls and columns, as well as any signs of ground subsidence.

Checkpoint	Details
Ceiling height	Typically 6–9 m
Floor load capacity	Standard 2–3 tons/m²
Planned equipment	Confirm compatibility with specs
Storage efficiency	Affects overall operational efficiency
Building condition	Inspect walls, columns, ground stability

 

3. Checking auxiliary facilities: Office, toilets, etc.

Many industrial parks come equipped with basic auxiliary facilities such as offices and toilets. If not provided, tenants must install them at their own expense. Additionally, tenants are obligated to restore the property to its original condition when the lease ends, meaning all tenant-installed facilities must be removed. Facilities such as cafeterias and rest areas significantly influence worker productivity and satisfaction. Therefore, it is essential to review both floor plans and the actual site, and estimate any additional construction or future burdens.

• ・Confirm auxiliary facilities on-site
• ・Include installation and removal costs in the budget
• ・Cafeterias and rest areas impact employee satisfaction
• ・Check both drawings and actual conditions

4. Importance of fire protection systems & sprinkler installation

Fire safety regulations in Vietnam have become increasingly stringent, and more industrial parks now require automatic sprinkler systems. While many factories have ceiling-mounted sprinklers installed as standard, tenants must bear the cost of installation when they are absent. Since fire protection affects both risk reduction and insurance conditions, we should carefully review the presence and specifications of fire-fighting equipment. You will have greater peace of mind if you check the installation status and upcoming regulatory changes during site inspections or pre-contract discussions.

Checkpoint	Details
Sprinkler installation	May be standard or absent
Fire equipment specifications	Tenant must install if required
Regulatory trends	Stay updated on fire safety law changes
Insurance impact	Equipment presence affects insurance conditions
Inspection & contracting	Confirm current and future compliance requirements

5. Infrastructure, building age, and other key factors

Infrastructure quality and building age are also critical selection criteria. Electricity capacity, water supply/drainage rates, and other utilities differ between industrial parks—insufficient infrastructure can lead to production disruptions. Buildings older than 5 years may have higher risks of leakage, cracks, or power outages, making on-site inspection indispensable. Additionally, evaluate security arrangements, management services, and surrounding environments (such as housing for expats and nearby facilities) to assess long-term suitability and operational safety.

• ・Infrastructure capacity varies across industrial parks
• ・Older buildings present higher maintenance risks
• ・Security and management quality are important factors
• ・Surrounding environment affects long-term operational comfort