Today, I would like to share with you the precautions you need to pay attention to when renting a factory in Vietnam, hoping to help you avoid pitfalls.
Pit avoidance 1: The owner of the factory does not have the leasing qualification and subleases
The owner of the plant reduced production due to bad production, so he rented out the idle plant. A customer took a fancy to the location of the plant and signed a lease contract with the owner of the plant and paid a deposit. Later, the client found that the owner of the factory did not have the leasing qualifications at all, so he could not apply for an investment certificate. The owner of the factory refused the customer's request for a refund of the deposit on the grounds that it could be done. The client's investment plans were also forced to be postponed.
The business license of the factory building that can be rented out should include the real estate leasing business project, if there is no this, then the external leasing is illegal leasing, and it is generally difficult to apply for the establishment of a company. If we want to rent out the factory in the future, we also need to pay attention to whether there is a leasing qualification in the investment certificate.
Generally, when subleasing a factory, we need to verify the following information:
1. Investment certificate;
2. Business license;
3. Land use right and above-ground property ownership certificate;
4. The land lease contract signed between the lessor and the industrial zone;
5. Fire protection data (fire protection design approval certificate, fire protection engineering completion inspection documents, etc.);
6. Environmental protection information (environmental impact assessment report, environmental permit, environmental protection project completion documents, etc.);
7. Construction materials (construction permits, acceptance records of project completion and use, etc.);
8. The memorandum (principle contract) and formal contract of the company's lease plant.
Pit avoidance 2: The owner of the factory rented out to the outside without approval
A customer rented a 10,000-square-meter factory with the owner, but after renting it, the owner said that 4,000 square meters had not yet gone through the relevant acceptance and licenses. According to Vietnam's latest law, approval requires the signature of the provincial governor, plus the joint approval of seven departments. The governor said that he needed to wait until ** approved, and ** approved him before signing and agreeing to ......However, the contract has been signed, the deposit has been paid, and the delivery of the plant is far away.
Generally, the supporting documents required for leasing a plant are: construction permit, completion acceptance certificate (including fire protection, etc.) and red book (land certificate), some rental plants may be built without approval (illegal construction), or the construction application procedures are incomplete, or the approved construction plan is inconsistent with the actual construction resulting in no acceptance conditions, etc., resulting in the plant has not obtained the completed property right certificate (that is, the plant is not registered in the red book), so we must review the legal qualifications of the plant itself when choosing the plant.
Pit avoidance three: a large pit for plant decoration and fire acceptance
Vietnam's fire inspection standards are comparable to "Germany", many materials are demanding, and the acceptance cost is relatively high. If the domestic contractor does not have rich experience in Vietnam and the best relationship of the place of ownership, it is likely to spend a long time in the acceptance process, thereby delaying the production time and causing huge losses to the enterprise. Therefore, it is recommended to give priority to decoration companies and fire protection installation companies with local qualifications that have construction cases in the province where Vietnam is located.
Avoid pitfalls 4: Ignore the importance of contracts
A Taiwanese customer wanted to put into production and ship in Vietnam before the holiday, and was in a hurry to settle down a place, and paid a deposit without signing a contract with the owner. Because the owner did not agree to the renovation of the plant, and the industrial park refused the customer's industry access, the customer had no choice but to surrender the lease. However, the two parties did not agree on the liability for breach of contract, and the landlord refused to return the rent, wasting the deposit in vain, not to mention the delay.
If you can't eat hot tofu in a hurry, the contract is very important in any link, and it is necessary to ask a professional lawyer to review the corresponding documents and draw up the contract. Different industrial zones have different access industries, and renting a factory requires not only communication with the landlord, but also understanding the situation of the industrial zone.
Pitfall Avoidance Five: Advice from "Old Vietnamese" Friends
These are all real-life examples, if you just rely on "I heard from a friend." I have friends who are familiar with Vietnam. I have friends over there. If you go to Vietnam to invest, there is a high probability that you will pay tuition.
Many of our clients have friends who have been living and doing business in Vietnam for many years, so they trust old friends rather than professional service companies. Although friends in Vietnam are also very enthusiastic and friendly, but due to different industries and different investment models, such as the previous most of the first-class, mainly small enterprises in the local market in Vietnam, most of them have a large number of non-compliance models for various reasons, and the current export-oriented medium-sized investment, the requirements for compliance are completely different, and the current requirements of Vietnam's first class have changed greatly, if according to the business model in Vietnam many years ago, want to bring huge risks.
Other considerations
1.When domestic enterprises first come to Vietnam to rent factories, they must choose on the premise of legal compliance and complete procedures.
2.In Vietnam, common types of industrial land are industrial land in industrial parks, industrial land within industrial clusters, and some private industrial land. Generally, the development cost of private industrial land is not high, so the rent is relatively cheap, and the corresponding supporting infrastructure is not perfect, the scope of industries that can be allowed to be stationed is small, and it is not managed by the industrial zone management committee, so it is very difficult to apply for tax incentives and company establishment, so it is recommended not to try.
3.The existing EIA and fire protection of the plant are for the owner's previous business projects, and after the establishment of the leased plant, the new EIA permit and fire protection need to be re-evaluated before production and operation.
4.Contract negotiation and compliance review is an extremely rigorous and meticulous work, and it is best to have professional translators and professional teams to help avoid risks, save time and effort, and complete the investment well and quickly.
5.Vietnam's real estate agency service personnel need a qualification certificate to work, and the agency company also has corresponding qualification requirements, but the local market in Vietnam, especially some Chinese service companies, are operating in violation of regulations, which may bring unpredictable risks.
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