Factors affecting the cost of factory construction in 2022

2 Tháng Tám, 2021

Nowadays, with the development of industry, there is a rising number of enterprises being interested in factory construction and owning a factory. Owning a factory brings a lot of benefits to the production process and development of the business.

However, the issue of costs in factory construction is always a concern for businesses. To help businesses better understand, here are some factors that affect the cost of this process. This information will help you better understand about construction cost and control it. 

Benefits when businesses participate in the process of factory construction and owning factories: 

Designed according to the business’s wishes:

When participating in the factory construction process, enterprises can make requirements and adjust the design according to their wishes. This gives you peace of mind, but it also gives you the flexibility to make the necessary adjustments to ensure your business is running at full capacity.

Furthermore, having full control over your factory gives you the flexibility to expand your business in the future. Owning the factory and being directly involved in the factory construction allows businesses to have autonomy in design now and in the future. Therefore, in the future, if your business wants to expand production and requires a change in the structure and design of the factory, it can be easily repaired.



If you are looking for a long-term solution, nothing can replace being directly involved in the factory construction process. Building a factory for the production process of an enterprise is a long-term investment, helping to create its reputation and brand in the area in the future. 

In the factory construction process, when choosing the location of the factory, investors should consider the factors of local zoning laws, community planning, traffic patterns and population forecasts because, in the future, these factors will change and affect the advantage of the factory

Owning a factory helps build a reputation and brand in that area

Owning a factory helps build a reputation and brand in that area

Cash flow: 

If you decide to build a factory and own it, you are investing in the current prospects and the longevity of the business. Although factory construction requires a larger investment at the start, it also significantly reduces costs. When the lease term ends, the rental costs usually increase with the signing of a new lease.

By building your own factory, you’ll be able to avoid those rental increases and fixed-rate loans, guaranteeing the same monthly payment for your factory. Alternatively, you can also eliminate any monthly payments to your factory once your mortgage is paid off. If your facility is large enough, you might consider leasing any unused space to another company. These can be significantly profitable for your business and allow you the financial freedom to expand, hire new employees, or raise your retirement fund.

This decision is not only an investment in the current prospects but also the longevity of the business

This decision is not only an investment in the current prospects but also the longevity of the business

Create value: 

Owning a factory can help a business raise capital over time. This is a long-term investment and allows the business to profit in the future. Enterprises have factories to stabilize production without being affected by the lessor.

In addition, this also helps businesses deduct tax. As a result, choosing to build a factory will save you a lot of long-term costs.

In short, if your goal is to create long-term value, then building an industrial factory is an excellent choice. 


Factors affecting the cost of factory construction

Although factory construction brings long-term values, reducing construction costs is always a matter of concern for many businesses. To reduce costs, businesses should understand the factors that will affect the cost of factory construction.

The function of the factory:

The function of the factory determines the design and structure plan. Functionality determines construction materials, foundation solution, steel structure options, heat-resistant materials, covering solutions, accompanying ancillary items, etc. Factory’s function is the first factor to be considered, determining the cost of factory construction. 

As an exemplify, the factory serves as a warehouse for light goods, the requirements for the factory are not too strict. On the other hand, if the factory is a warehouse for valuable machinery or products, the factory’s floor is required to be high, it may be necessary to add a crane to serve the lifting and transportation. 

Function- one of the most important factors affecting the construction cost

Function- one of the most important factors affecting the construction cost

In addition, if the factory also serves business, it needs to add other auxiliary works such as offices, canteens, warehouses for supplies, garages, and so on.

Factory construction site: 

The location of the faction has a significant influence on the cost and unit price of construction.

The first factor is the geological situation of that area. If the location to build your factory is on good and flat geological land, this will reduce the cost of the foundation. On the contrary, if the construction site is located on flexible soil with uncertain geology, there will be a solution to reinforce the foundation, requiring higher costs.

Moreover, the second factor is whether the construction site is convenient for transporting materials for factory construction. The availability of electricity and water lines for daily life and construction also affects the unit price of the work.

Factory construction scale: 

The scale of the factory greatly affects the construction cost. Large-scale factories often have cheaper construction units/m2 than factories with a small area. 

The scale of the warehouse greatly affects the cost

    The scale of the warehouse greatly affects the cost

For example, with the same structural plan and material solution, a 1000m2 factory will have a cheaper unit price per m2 than a 5000m2 factory. Thus, the unit price of the factory will be greatly affected by the area.

Factory construction time: 

If a project construction time is too short, forcing contractors or construction companies to put all their forces into the project. In particular, in the construction of factories, the project construction time may be specific (working at night because it is impossible to work during the day because the workers are still working), the construction cost of that project will also be raised. significantly.

In addition, if the construction time is at a high price of raw materials, the construction cost will also be pushed up.

Factory building materials: 

A large part of the cost of factory construction is determined by the materials of that project. The same type of steel for building factories, but there are many brands for you to choose from.

Famous brands often have high prices and vice versa. Many investors are quite careful in choosing materials in construction, so the high or low construction cost of factories depends quite a lot on the equipment requirements of the investors.

The cost of factory building is also determined by the materials

The cost of factory building is also determined by the materials

Factory’s design: 

Simple or complex factory design plays a very important part in pricing for the construction of that factory or factory. The more complex and detailed it is, the more it requires that all the things following such as materials, labor, and engineers also have higher standards.

The level of workers involved in the factory construction process: 

A difficult project needs experienced and skilled workers and engineers to come up with the best construction plans and methods. 

However, management costs and labor costs are quite high, making the construction cost of factories and workshops also higher than those of conventional projects. 

Factory construction service provider: 

Prestigious and professional factory construction companies will provide you with appropriate solutions to minimize construction costs. In addition, they also have a guaranteed supply of materials at cheaper prices, so the construction unit price is also significantly reduced. They can also provide your project with a team of professional workers, ensuring the quality and progress of the work.

Furthermore, a good company will help you balance costs to suit the financial situation of the business. Thus, the company you choose is very important.  

Professional companies will provide your business with appropriate solutions

Professional companies will provide your business with appropriate solutions

VixCons- Professional factory construction company: 

From the above factors, choosing the right construction company is very important. With a team of professional workers and a secure supply of raw materials, VixCons has cooperated with many prestigious partners and participated in many factory construction projects. 

Cooperating with VixCons, you will own the factory you want at a reasonable cost. VixCons always wants to bring satisfaction to our customers and prioritizes the interests of customers

The useful information above will help you have more knowledge about the factors that affect the cost of building a factory. Moreover, you should refer to some factory designs

If investors are planning to build a factory and need to get the best construction price, please fill in our form below, or investors can contact us directly with the information provided below.

Contact information: 

Hcm Office: No. 22 Nguyen Trung Ngan Str, Ben Nghe Ward,  District 1, HCM City, Vietnam

Tel: +84-28 668 06 166     – Hotline: +84-975 969 608

Email: info@vixcons.com  w:// vixcons.com

Hanoi Office: 148 –D Yen Hoa Str, Cau Giay District, Hanoi, 100000, Vietnam.

Tel: +84-822 246 444       – Hotline : +84-937 927 925

Email: info@vixcons.com  w:// vixcons.com

Central Branch: 18 Pham Kinh Vy Str, Vinh City, Nghe An Province, Vietnam

Tel: + 84 – 975 969 608     Email: info@vixcons.com  w:// vixcons.com



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