{"id":5688,"date":"2025-04-22T15:02:22","date_gmt":"2025-04-22T08:02:22","guid":{"rendered":"https:\/\/ktgindustrial.com\/?post_type=new&#038;p=5688"},"modified":"2026-01-16T00:35:51","modified_gmt":"2026-01-15T17:35:51","slug":"factory-leasing-procedures-contracts","status":"publish","type":"new","link":"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/","title":{"rendered":"Factory leasing procedures and contracts for businesses"},"content":{"rendered":"<p style=\"text-align: justify;\">Leasing a factory is a crucial step for many businesses looking to expand production or establish a new facility. However, without a clear understanding of the required procedures and legal regulations, companies may face significant challenges during operations. In this article, <span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"https:\/\/ktgindustrial.com\/\" target=\"_blank\" rel=\"noopener\">KTG Industrial<\/a><\/strong><\/span> provides a comprehensive A-to-Z guide on factory lease procedures and contracts\u2014helping businesses proactively prepare, save time, and minimize legal risks.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_72 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Factory_lease_contract_and_key_considerations\" title=\"Factory lease contract and key considerations\">Factory lease contract and key considerations<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Legal_basis_governing_factory_lease_contracts\" title=\"Legal basis governing factory lease contracts\">Legal basis governing factory lease contracts<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Regulations_on_factory_lease_price_and_lease_term\" title=\"Regulations on factory lease price and lease term\">Regulations on factory lease price and lease term<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Leasing_principles_and_contract_effective_date\" title=\"Leasing principles and contract effective date\">Leasing principles and contract effective date<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Mandatory_contents_in_a_factory_lease_contract\" title=\"Mandatory contents in a factory lease contract\">Mandatory contents in a factory lease contract<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Common_disputes_in_factory_lease_contracts\" title=\"Common disputes in factory lease contracts\">Common disputes in factory lease contracts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Suggested_approaches_to_resolving_factory_lease_contract_disputes\" title=\"Suggested approaches to resolving factory lease contract disputes\">Suggested approaches to resolving factory lease contract disputes<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Factory_leasing_procedures_in_industrial_parks\" title=\"Factory leasing procedures in industrial parks\">Factory leasing procedures in industrial parks<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Potential_risks_related_to_factory_lessors\" title=\"Potential risks related to factory lessors\">Potential risks related to factory lessors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#What_legal_documents_are_required_for_subleasing_a_factory\" title=\"What legal documents are required for subleasing a factory?\">What legal documents are required for subleasing a factory?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Prepare_complete_legal_documents_proving_the_right_to_use_the_factory\" title=\"Prepare complete legal documents proving the right to use the factory\">Prepare complete legal documents proving the right to use the factory<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Register_and_update_business_lines_to_include_factory_leasing\" title=\"Register and update business lines to include factory leasing\">Register and update business lines to include factory leasing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Ensure_the_leased_area_is_independent_and_does_not_affect_other_tenants\" title=\"Ensure the leased area is independent and does not affect other tenants\">Ensure the leased area is independent and does not affect other tenants<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Notify_relevant_authorities_and_stakeholders_as_required\" title=\"Notify relevant authorities and stakeholders as required\">Notify relevant authorities and stakeholders as required<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Establish_a_clear_and_transparent_factory_lease_contract\" title=\"Establish a clear and transparent factory lease contract\">Establish a clear and transparent factory lease contract<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Important_considerations_for_factory_tenants\" title=\"Important considerations for factory tenants\">Important considerations for factory tenants<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Registered_business_lines_must_align_with_factory_usage\" title=\"Registered business lines must align with factory usage\">Registered business lines must align with factory usage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Production_and_business_scale_should_match_the_leased_area\" title=\"Production and business scale should match the leased area\">Production and business scale should match the leased area<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Fulfill_all_legal_procedures_in_accordance_with_current_regulations\" title=\"Fulfill all legal procedures in accordance with current regulations\">Fulfill all legal procedures in accordance with current regulations<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Frequently_asked_questions\" title=\"Frequently asked questions\">Frequently asked questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Is_it_allowed_to_sublease_surplus_factory_space_in_an_industrial_park\" title=\"Is it allowed to sublease surplus factory space in an industrial park?\">Is it allowed to sublease surplus factory space in an industrial park?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Does_a_factory_lease_contract_need_to_be_notarized\" title=\"Does a factory lease contract need to be notarized?\">Does a factory lease contract need to be notarized?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Factory_lease_contract_and_key_considerations\"><\/span>Factory lease contract and key considerations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">A factory lease contract serves as the legal foundation that defines the rights and obligations of all parties involved, while also helping to minimize potential disputes during the lease term. Below are important aspects that businesses should keep in mind when drafting a factory lease agreement:<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Legal_basis_governing_factory_lease_contracts\"><\/span>Legal basis governing factory lease contracts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">A factory lease contract is a type of civil agreement governed by various current legal regulations. Drafting and executing such contracts must adhere to the applicable legal framework to ensure that the rights and obligations of the parties are properly enforced, while also minimizing risks and future disputes. Relevant legal documents include:<\/p>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\">The 2015 Civil Code \u2013 General provisions on property lease contracts.<\/li>\n<li aria-level=\"1\">The 2014 Law on Real Estate Business and Decree No. 02\/2022\/ND-CP \u2013 Detailed regulations on real estate leasing activities.<\/li>\n<li aria-level=\"1\">The 2014 Law on Housing \u2013 Applicable in cases where the factory is classified as a residential property used for business purposes.<\/li>\n<li aria-level=\"1\">The 2013 Land Law \u2013 Regulations on land use rights and conditions for leasing assets attached to land use rights.<\/li>\n<\/ul>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Regulations_on_factory_lease_price_and_lease_term\"><\/span>Regulations on factory lease price and lease term<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">The rental price for a factory is determined based on mutual agreement between the involved parties. If an agreement cannot be reached, the rental price may be determined by a third party upon request. In the absence of a specific agreement, the rent shall be based on the prevailing market price at the time the contract is signed.<\/p>\n<p style=\"text-align: justify;\">Regarding the lease term, the parties have the flexibility to negotiate a duration that suits their operational needs. If the contract does not clearly specify the lease term, either party has the right to unilaterally terminate the agreement, provided that reasonable prior notice is given to the other party. This ensures both parties\u2019 interests are protected and helps avoid disruptions to production and business operations.<\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Leasing_principles_and_contract_effective_date\"><\/span>Leasing principles and contract effective date<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">The leasing of a factory and the commencement date of the lease agreement are clearly defined as follows:<\/p>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\">Leasing principles: The factory offered for lease must meet construction quality standards, ensure operational safety, environmental hygiene, and include supporting utilities. It must also comply with the original technical design and intended use.<\/li>\n<li aria-level=\"1\">Effective date of the contract: The lease agreement becomes effective from the date agreed upon and clearly stated in the contract. If the contract is notarized, the effective date is determined based on the notarization date. If not notarized, the effective date is based on mutual agreement between the parties.<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Mandatory_contents_in_a_factory_lease_contract\"><\/span>Mandatory contents in a factory lease contract<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">A factory lease contract is a type of property lease agreement governed by the provisions of the 2015 Civil Code, specifically Article 398. In addition, since it involves real estate business activities, the contract must also comply with the 2014 Law on Real Estate Business.<\/p>\n<p style=\"text-align: justify;\">A valid and complete factory lease contract must include the following key components:<\/p>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\">Property information: The contract must clearly specify the details of the leased factory, including its location, area, structural specifications, and current condition. In addition, the property must be legally documented, such as having a land use rights certificate and construction ownership certificate, and must not be involved in any legal disputes.<\/li>\n<li aria-level=\"1\">Rental price and payment terms: The parties must clearly agree on the rental price, payment method, and payment cycle (monthly, quarterly, or annually), along with any other associated costs if applicable. If there is a legal framework regulating rental pricing, the agreed rate must comply with such regulations.<\/li>\n<li aria-level=\"1\">Rights and obligations of the parties: The contract should define the rights and responsibilities of both the lessor and the lessee, including maintenance and repair duties, proper use of the factory, and compliance with regulations on fire safety, environmental protection, and occupational safety.<\/li>\n<li aria-level=\"1\">Handling of contract breaches: This section must outline specific violations and the corresponding remedies, such as penalties, compensation for damages, or unilateral termination of the contract.<\/li>\n<li aria-level=\"1\">Dispute resolution mechanism: In the event of a dispute, the parties may choose one of the following resolution methods: negotiation, mediation, commercial arbitration, or litigation at a competent court.<\/li>\n<li aria-level=\"1\">Additional provisions (if any): These may include agreements on contract extension, rental price adjustments over time, early termination conditions, or any other terms based on mutual agreement.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Note:<br \/>\nThe factory lease contract must be made in writing. While notarization or authentication is not legally required, completing these steps can enhance legal validity and reduce risks during contract execution.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Common_disputes_in_factory_lease_contracts\"><\/span>Common disputes in factory lease contracts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Disputes in factory lease contracts often arise when one party fails to fully or properly perform their contractual obligations, affecting the legal rights and interests of the other party.<\/p>\n<p style=\"text-align: justify;\">Some common types of disputes include:<\/p>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\">Disputes over the legal capacity of the contracting parties: For example, the lessor does not have the legal right to lease the property or is not properly authorized to sign the contract.<\/li>\n<li aria-level=\"1\">Disputes related to the leased property: The factory does not match the described specifications, such as area or condition, or lacks legal eligibility for leasing.<\/li>\n<li aria-level=\"1\">Disputes over maintenance, repair, or upgrades: Unclear assignment of responsibility may lead to disagreements when issues arise.<\/li>\n<li aria-level=\"1\">Disputes over rental price and lease term: These can occur due to price adjustments, late payments, or early termination of the lease.<\/li>\n<li aria-level=\"1\">Disputes concerning subleasing rights: One party subleases the property to a third party without the consent of the other.<\/li>\n<li aria-level=\"1\">Disputes regarding liability for damages: Especially in cases of premature or unilateral contract termination.<\/li>\n<li aria-level=\"1\">Other disputes arising during the execution of the contract.<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Suggested_approaches_to_resolving_factory_lease_contract_disputes\"><\/span>Suggested approaches to resolving factory lease contract disputes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">During the execution of a factory lease contract, if a dispute arises, the resolution process must ensure the protection of the affected party&#8217;s legitimate rights and interests.<\/p>\n<p style=\"text-align: justify;\">According to Clause 1, Article 39 of the 2015 Civil Procedure Code, the People\u2019s Court at the district level where the real estate is located has jurisdiction over disputes related to factory lease contracts.<\/p>\n<p style=\"text-align: justify;\">The aggrieved party may request the court to take actions such as: declaring the civil contract void, requesting compensation for damages, applying contractual penalties, or unilaterally terminating the contract in accordance with legal provisions.<\/p>\n<p style=\"text-align: justify;\">Procedure for resolving factory lease disputes:<\/p>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\">Step 1: Submit a lawsuit petition to the competent People\u2019s Court in accordance with legal regulations.<\/li>\n<li aria-level=\"1\">Step 2: The court reviews the submitted documents and accepts the case if it meets the legal requirements for initiating a lawsuit.<\/li>\n<li aria-level=\"1\">Step 3: Fulfill the obligation to pay a provisional court fee and submit the payment receipt as requested by the court.<\/li>\n<li aria-level=\"1\">Step 4: The court conducts pre-trial procedures, including evidence collection, summoning involved parties, and organizing mediation if necessary.<\/li>\n<li aria-level=\"1\">Step 5: Conduct the first-instance trial: After the hearing and issuance of the judgment, either party may file an appeal if they disagree with the court\u2019s decision, in accordance with the law.<\/li>\n<\/ul>\n<div id=\"attachment_5690\" style=\"width: 810px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" aria-describedby=\"caption-attachment-5690\" class=\"size-full wp-image-5690\" src=\"https:\/\/ktgindustrial.com\/wp-content\/uploads\/2025\/04\/Factory-leasing-procedures-and-contracts-2.jpg\" alt=\"Disputes are accepted within the contract\" width=\"800\" height=\"480\" srcset=\"https:\/\/ktgindustrial.com\/wp-content\/uploads\/2025\/04\/Factory-leasing-procedures-and-contracts-2.jpg 800w, https:\/\/ktgindustrial.com\/wp-content\/uploads\/2025\/04\/Factory-leasing-procedures-and-contracts-2-300x180.jpg 300w, https:\/\/ktgindustrial.com\/wp-content\/uploads\/2025\/04\/Factory-leasing-procedures-and-contracts-2-768x461.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><p id=\"caption-attachment-5690\" class=\"wp-caption-text\">Dispute resolution must ensure the protection of legitimate rights and interests<\/p><\/div>\n<blockquote><p>Further reading: <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/ktgindustrial.com\/new\/factory-span\/\" target=\"_blank\" rel=\"noopener\">What is the factory span? <\/a><\/span><\/p><\/blockquote>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Factory_leasing_procedures_in_industrial_parks\"><\/span>Factory leasing procedures in industrial parks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">When leasing a factory in an industrial park, businesses must clearly understand the legal requirements and important considerations to avoid potential risks. Below are key points that both lessors and lessees should keep in mind:<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Potential_risks_related_to_factory_lessors\"><\/span>Potential risks related to factory lessors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">In today\u2019s market, there are two main groups involved in factory leasing activities. The first group consists of legal owners who directly hold the rights to use and operate the factory. The second group includes parties that sublease factories after renting them from the original developer.<\/p>\n<p style=\"text-align: justify;\">However, entities in the second group often do not meet the legal conditions required to sublease the property lawfully. Engaging in transactions with such parties carries significant legal and financial risks. Therefore, businesses must exercise caution and thoroughly verify legal documentation to avoid unnecessary losses.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"What_legal_documents_are_required_for_subleasing_a_factory\"><\/span>What legal documents are required for subleasing a factory?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Prepare_complete_legal_documents_proving_the_right_to_use_the_factory\"><\/span>Prepare complete legal documents proving the right to use the factory<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">Businesses must ensure they possess all necessary documents proving legal ownership or usage rights of the factory intended for sublease. The documentation must clearly show that the factory is not involved in any disputes, is not subject to enforcement measures, and is not restricted from transfer under any decisions issued by competent authorities.<\/p>\n<p style=\"text-align: justify;\">If the factory is currently mortgaged, a written approval from the credit institution or mortgagee must be obtained before signing the lease agreement.<\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Register_and_update_business_lines_to_include_factory_leasing\"><\/span>Register and update business lines to include factory leasing<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">Before engaging in factory subleasing activities, the owner must complete procedures to register or update their business scope in accordance with the Law on Investment, the Law on Real Estate Business, and relevant regulations applicable to industrial and export processing zones. This process requires the enterprise to prepare all legally required documents.<\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Ensure_the_leased_area_is_independent_and_does_not_affect_other_tenants\"><\/span>Ensure the leased area is independent and does not affect other tenants<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">The leased factory area must be operationally independent to avoid interfering with neighboring businesses or the overall operation of the industrial or export processing zone. In addition, the premises must meet space requirements for supporting facilities and amenities for workers\u2019 daily needs and work activities.<\/p>\n<div id=\"attachment_5689\" style=\"width: 810px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-5689\" class=\"size-full wp-image-5689\" src=\"https:\/\/ktgindustrial.com\/wp-content\/uploads\/2025\/04\/Factory-leasing-procedures-and-contracts-1.jpg\" alt=\"Factory in industrial park\" width=\"800\" height=\"600\" srcset=\"https:\/\/ktgindustrial.com\/wp-content\/uploads\/2025\/04\/Factory-leasing-procedures-and-contracts-1.jpg 800w, https:\/\/ktgindustrial.com\/wp-content\/uploads\/2025\/04\/Factory-leasing-procedures-and-contracts-1-300x225.jpg 300w, https:\/\/ktgindustrial.com\/wp-content\/uploads\/2025\/04\/Factory-leasing-procedures-and-contracts-1-768x576.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><p id=\"caption-attachment-5689\" class=\"wp-caption-text\">The factory for lease must be an independent and self-contained area<\/p><\/div>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Notify_relevant_authorities_and_stakeholders_as_required\"><\/span>Notify relevant authorities and stakeholders as required<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">The leasing enterprise must proactively notify the Industrial Park Management Board about the leasing plan and coordinate on technical infrastructure requirements. This ensures that the tenant\u2019s operations do not negatively impact the shared systems of the industrial zone.<\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Establish_a_clear_and_transparent_factory_lease_contract\"><\/span>Establish a clear and transparent factory lease contract<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">Although notarization or certification is not legally required for a factory lease contract, the contract must be drafted clearly and transparently. It should specify the responsibilities of the involved parties regarding the following matters:<\/p>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\">Connection to and flow capacity of the wastewater treatment system linked to the park&#8217;s shared infrastructure<\/li>\n<li aria-level=\"1\">Collection and disposal of solid and hazardous waste<\/li>\n<li aria-level=\"1\">Obligations to contribute to infrastructure maintenance fees and other service charges<\/li>\n<li aria-level=\"1\">Commitment to maintaining the structural integrity and quality of the factory during the lease period<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Important_considerations_for_factory_tenants\"><\/span>Important considerations for factory tenants<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Registered_business_lines_must_align_with_factory_usage\"><\/span>Registered business lines must align with factory usage<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">Tenants must ensure that their registered business lines are compatible with the intended use of the factory and aligned with the investment orientation of the industrial or export processing zone. These business activities should either be similar to those of the lessor or fall within the categories permitted under the area&#8217;s environmental license.<\/p>\n<p style=\"text-align: justify;\">Additionally, in certain localities, further requirements may apply\u2014such as the use of advanced or environmentally friendly technologies, limitations on wastewater discharge, and non-polluting operations. These criteria are often prerequisites for lease approval.<\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Production_and_business_scale_should_match_the_leased_area\"><\/span>Production and business scale should match the leased area<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">Tenants should clearly define the scale and nature of their production or business activities to ensure they do not disrupt neighboring operations or interfere with the overall functioning of the industrial or export processing zone.<\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Fulfill_all_legal_procedures_in_accordance_with_current_regulations\"><\/span>Fulfill all legal procedures in accordance with current regulations<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">After signing the lease contract, the tenant is responsible for completing all necessary legal procedures as required by law, including:<\/p>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\">Registering for the Investment Registration Certificate (IRC)<\/li>\n<li aria-level=\"1\">Registering as a generator of hazardous solid waste<\/li>\n<li aria-level=\"1\">Registering internal labor regulations and supporting the establishment of a trade union<\/li>\n<li aria-level=\"1\">Drafting and registering the collective labor agreement and wage scale<\/li>\n<li aria-level=\"1\">Reporting on labor usage and declarations as required by labor laws<\/li>\n<\/ul>\n<div id=\"attachment_5691\" style=\"width: 810px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-5691\" class=\"size-full wp-image-5691\" src=\"https:\/\/ktgindustrial.com\/wp-content\/uploads\/2025\/04\/Factory-leasing-procedures-and-contracts-3.jpg\" alt=\"Sign a factory lease contract\" width=\"800\" height=\"532\" srcset=\"https:\/\/ktgindustrial.com\/wp-content\/uploads\/2025\/04\/Factory-leasing-procedures-and-contracts-3.jpg 800w, https:\/\/ktgindustrial.com\/wp-content\/uploads\/2025\/04\/Factory-leasing-procedures-and-contracts-3-300x200.jpg 300w, https:\/\/ktgindustrial.com\/wp-content\/uploads\/2025\/04\/Factory-leasing-procedures-and-contracts-3-768x511.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><p id=\"caption-attachment-5691\" class=\"wp-caption-text\">The enterprise must complete all required legal procedures after signing the lease contract.<\/p><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Frequently_asked_questions\"><\/span>Frequently asked questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Is_it_allowed_to_sublease_surplus_factory_space_in_an_industrial_park\"><\/span>Is it allowed to sublease surplus factory space in an industrial park?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Yes, businesses are allowed to sublease surplus factory space in industrial parks to optimize operating costs\u2014as long as they comply fully with all relevant legal regulations.<\/p>\n<p style=\"text-align: justify;\">Specifically, subleasing warehouse or factory space is considered a real estate business activity under the 2014 Law on Real Estate Business and the 2020 Law on Enterprises. Therefore, businesses intending to sublease factory space must:<\/p>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\">Register real estate business as one of their official business lines in their Enterprise Registration Certificate<\/li>\n<li aria-level=\"1\">Maintain eligibility to conduct real estate business throughout their operations<\/li>\n<li aria-level=\"1\">Obtain written consent from the primary lessor (typically the industrial park developer); this should be clearly stated in the original lease agreement or as an appendix<\/li>\n<li aria-level=\"1\">Ensure the subleased facility has complete legal documentation, is free of disputes, and is not subject to seizure or enforcement. If the facility is mortgaged, written approval from the mortgagee is required<\/li>\n<li aria-level=\"1\">Clearly define in the lease contract the responsibilities related to wastewater treatment, infrastructure maintenance, facility quality, and environmental compliance, to avoid future legal risks<\/li>\n<li aria-level=\"1\">Use the leased factory in accordance with the approved purpose, as specified in legal documents related to land use rights and the original land lease agreement<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Does_a_factory_lease_contract_need_to_be_notarized\"><\/span>Does a factory lease contract need to be notarized?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Under current regulations, a factory lease contract does not require notarization or certification unless otherwise agreed upon by the parties.<\/p>\n<p style=\"text-align: justify;\">Specifically, according to Point b, Clause 3, Article 167 of the 2013 Land Law and Clause 2, Article 17 of the 2014 Law on Real Estate Business, contracts involving the lease of land use rights and assets attached to land (including factories and warehouses) are only required to be in written form. Notarization is not mandatory and depends on the mutual agreement between the parties.<\/p>\n<p style=\"text-align: justify;\">If there is no request or agreement on notarization, the lease contract remains legally valid without it. However, in certain cases\u2014such as high-value transactions, long-term leases, or to prevent future disputes\u2014it is advisable for the parties to consider notarizing the contract to ensure greater legal clarity and protection.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Leasing a factory is not merely a real estate transaction\u2014it is closely tied to a company\u2019s long-term development strategy. Understanding the legal procedures and drafting a clear, compliant lease contract will help businesses operate with confidence and maximize investment efficiency.<\/p>\n<p style=\"text-align: justify;\">Don\u2019t overlook any step in the leasing process to ensure a safe and lawful experience for both lessors and lessees.<\/p>\n<p style=\"text-align: justify;\">Thank you for following KTG Industrial\u2019s comprehensive guide. We hope you found the information helpful and practical for your business needs.<\/p>\n","protected":false},"author":5,"featured_media":5692,"template":"","class_list":["post-5688","new","type-new","status-publish","has-post-thumbnail","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.0 (Yoast SEO v24.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Factory leasing procedures and contracts for businesses<\/title>\n<meta name=\"description\" content=\"A practical guide to help you prepare documents, avoid legal risks, and confidently sign factory lease agreements in compliance with current regulations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ktgindustrial.com\/new\/factory-leasing-procedures-contracts\/\" \/>\n<meta property=\"og:locale\" content=\"vi_VN\" \/>\n<meta property=\"og:type\" content=\"article\" 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