This pandemic period is a very difficult time to some companies, but by contrast, a number of our clients have their business thriving during this time and have requested us to assist them to expand their business.

One of Purple Tomato’s regular clients requested our help to open other factories for their production since there is an increase in furniture sales in the market. Purple Tomato has many times involving in exciting projects like this.

After understanding the client’s requirements regarding location and budget for their new factory, Purple Tomato quickly gathered information and utilised our connection network to work with local province government at which the new factory soon to be located. We also helped our client to connect with Provincial Investment Department to express their interest in investing a new factory in the province which will bring a lot of benefits to the province in terms of contributing to provincial economics, creating jobs for locals and diversifying the provincial business or industry.

Having an understanding and approval from the local government is a very crucial step. Purple Tomato now can base on government planning & their approval for the land use to look for the most suitable location for our clients. For choosing the new factory location, we also have to consider many factors, a few could be listed as follows:

  • Road infrastructure

Whether road infrastructure surrounding the land is convenient for container trucks, loading and unloading of goods in the future;

Whether the roads can connect the factory to any ports or major cities / local towns.

Road infrastructure to factories
  • Surrounding neighbourhood

Crowded neighbourhood around the factory can be good and bad. The advantage of this is that our client can have big local labour locating near the factory and could commit a long work time with the factory. However, the disadvantage is during the peak season of the factory, there might be complaints to the local government due to the noise caused by container trucks in & out of the factory or noises of loading/unloading goods.

Surrounding neighbourhood of factories
  • Future development of the area

As mentioned, understanding government planning is important to plan the future development for the factory. How to upgrade the factory? Will the planned land use purpose be changed in the future? Is the local government focusing on agriculture or industry?

Government planning for land use also plays an important part in choosing the factory location

After carefully analysing all of the aspects, we are able to select the best location for our client. Currently, the transaction is on-going and we are happy that our client will construct the new factory soon in January 2021.

Purple Tomato offers help to companies that wish to connect with the right local government agency to serve their purposes. We believe that we would be a great help, especially for foreign companies to invest in Vietnam, with little knowledge or connection with the local government.

Do not hesitate to seek our consultancy. Please contact us here for more information.