Viet Nam

Industrial Park Status

Text by Saito Hiroshi

The 53th: Custom-made rental factories

Traditionally, when manufacturing companies entered Vietnam, they had two options: build a factory on their own land or move into an existing rental factory. However, Eco-Nova Factory (BTS Style), which recently held a groundbreaking ceremony in the Ecoland Industrial Park in Hung Yen Province in northern Vietnam, uses a BTS (Build to Suit) model. This scheme allows the industrial park developer, Eco-Nova Factory, to build a factory to the client’s specifications, bearing the land and construction costs, with the client paying for it through a 5-10 year lease.

This BTS rental factory offers the following advantages:

1. Reduction of initial investment costs

While purchasing land and constructing one’s own factory requires an initial investment of several hundred million to several billion yen, the major advantage of this BTS scheme is that the initial investment costs can be paid in installments through a long-term lease.

2. It’s a rental, but it’s made to order.

Conventional rental factories have fixed specifications such as size, ceiling height, and floor load capacity, which often do not meet the client’s requirements. With this BTS scheme, it becomes possible to construct a factory with specifications that meet the client’s requirements, even if it is a rental factory.

3. It is possible to simultaneously proceed with new company establishment procedures, talent acquisition, and market development.

In the case of rental factories and warehouses under this BTS scheme, procedures for establishing a new company (IRC/ERC), securing personnel, and developing markets can be carried out in parallel during the construction period.

4. We can handle building maintenance and administrative procedures on your behalf.

In the case of rental factories and warehouses under this BTS scheme, Eco-Nova Factory, the development and operation company for the rental factories and warehouses, will continuously provide maintenance services throughout the lease period. Furthermore, the development and operation company will handle administrative procedures and periodic government inspections on behalf of the client.

This groundbreaking and unique scheme was made possible because JCM Group, which operates real estate development and general construction businesses, and Eco-Nova Factory, a company that develops and operates rental factories and warehouses, are both part of the same group.

After graduating from university, he joined a PHP research institute and served as the head of the New York office. He then worked on the “Nagoya Port Redevelopment Project” at a subsidiary of the Chubu Nippon Broadcasting (CBC) company. He later shifted his base to Asia, where he was involved in the launch of “FM96.3” in Singapore, and the creation of “Hello Vietnam” and “Invest Asia” magazines in Vietnam. He then joined BW Industrial Development JSC, Vietnam’s largest rental factory development company, where he was responsible for attracting Japanese manufacturing companies. Currently, he is active as a consultant for the entry of Japanese companies at “G.A. Consultants”, one of the longest-standing Japanese HR consulting firms in Vietnam.