The seven important things when looking for a warehouse for rent in Vietnam

23.05.2022

Are you a new firm that wants to start a business in Vietnam? Are you in trouble in looking for a warehouse to run your business?

Does your company need more space to expand? 

Let us share the seven important things for you when renting a warehouse:

1. Location

A warehouse often is a place to store and preserve goods. There are some general criteria that a warehouse should be meet: 

  • Easy access: the warehouse must be convenient for vehicles to pick up/ unload goods to serve productions and deliver your products to customers. The warehouse must help you provide faster and occupy a better market share. Therefore, you need to find warehouses in areas with convenient traffic locations.
  • Avoid flood: flooding is the first thing to avoid in a warehouse because of the massive consequences it could cause to cargo. The warehouse needs to be built upon high ground, especially if there might be a flood in the area. A well-qualified water drainage system will be essential to considering renting the warehouse.

For example, a warehouse inside a flooded area could cause severe effects. The warehouse might be isolated when it rains, causing delayed delivery. Or the area is too moist and would not be suitable for storing food. Termites and rats easily attack the warehouse.

  • Is the warehouse located in a densely populated residential area with frequent traffic jams or prohibited from loading? Note the time limit for traffic prohibits in each site.
  • Whether a General warehouse or an independent warehouse. This is important because you may find it challenging to find workers to load, unload or transport goods for you. You need to coordinate the trucks elsewhere, and the cost will be higher. On the other hand, it is easier to choose a general warehouse, where add-on services are available such as transportation and loading/unloading. Don't forget to consider this issue to choose accordingly.

– General warehouse or independent warehouse. This is important because you may find it challenging to find workers to load, unload or transport goods for you. You need to coordinate the trucks elsewhere, and the cost will be higher. On the other hand, it is easier to choose a general warehouse, where add-on services are available such as transportation and loading/unloading. Don't forget to consider this issue to choose accordingly. 

And also, notice that you also have to pay the utilities if you choose to lease an independent warehouse. 

2. Rental models

Warehouse in ALS

There are many different rental options such as rent by sqm, pallets, tons, cubic meters, etc. Therefore, tenants need to determine the cargo amount, how many categories and items, track and trace frequencies, etc. Based on the specific requirements, the seller could offer convenient warehouse model services for your own. 

3. Rental rates

The rate of a warehouse depends on its location, facilities, equipment, standards, etc. Warehouses with management services often have higher rental rates, but the leased area will be flexibly adjusted, which will reduce the cost of personnel management, cargo risk, etc.

4. Rental period:

Warehouse tenants often require a long-term period rental. The leasing agreement term is usually 12 months. Then, you can reconsider and adjust to extend the addendum. If you determine long-term, you could negotiate to manage favorable rates and manage escalation rate in control (usually 5 - 10%).

5. Deposit:

Are you also paying attention to the warehouse rental deposit amount? Typically, a deposit amount for the rental amount is equivalent to 2 - 3 months of the rental fee. This deposit is to make sure your payment arrives on time. Otherwise, the landlord could deduct the rental cost from the deposit. 

6. Warehousing services

There are some essential services in a warehouse for rent as follows: 

- Utilities: Electricity, water, parking. 

- Loading and unloading services, forklifts, packing, counting, and labeling. 

- Transporting by trucks, motorbikes, container trucks, etc.

- Imported and exported goods management services. 

7. Contract signing:

Note that the warehouse leasing unit must have a legal business registration license with warehousing. Both parties need to sign and stamp together with the business registration license. 

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