Off-park land rents typically run 20–40% below industrial-park rates, and that single figure is all many investors put into the comparison table. But a manufacturing project does not just buy land: it buys power, water, wastewater treatment, internal roads, security and — most importantly — a clear licensing counter. This article unpacks the hidden costs on both sides so the comparison reflects the true 50-year cost of holding the site.
Legal basis
The common framework is the Land Law 2024 (Law 31/2024/QH15, effective 1 August 2024). Inside an industrial park, the company subleases land from the infrastructure developer; land rent and infrastructure and management charges are agreed against the framework of Decree 103/2024/ND-CP on land rent. Outside a park, the company leases directly from the State at the provincially decided rate and must itself satisfy planning, environmental, fire-safety and utility-connection conditions. The licensing counter also differs: projects inside industrial parks and economic zones go through the park management board; outside, through the provincial investment registration authority (under Investment Law 143/2025/QH15, which replaced Investment Law 61/2020 from 1 March 2026).
Analysis: questions investors actually ask
How much more expensive is industrial-park land?
The raw rent gap is usually 20–40% depending on province and location, but that figure alone says little. Park rents already include finished infrastructure to the plot boundary; off-park, the company must add levelling, access roads, a substation, its own wastewater plant and the time cost of approving each item. Fully loaded, more than a few ‘cheaper’ off-park sites end up costing more after three years of operation.
What infrastructure fees sit on top of land rent?
Inside a park, expect management and infrastructure-use fees per square metre per year, wastewater charges by volume and concentration, water supply, park-specific power tariffs and sometimes internal-road maintenance. Off-park sites skip these fees but replace them with self-built infrastructure capex and land rent revised on the province’s land-price cycle — a variable that is harder to forecast than park fees locked into the sublease.
Is licensing harder for off-park land?
It is harder on proof of fit: the project must match land-use and construction planning, obtain its environmental assessment at the correct level and satisfy sector conditions for that exact location. Inside a park, detailed planning and the park-wide environmental assessment are already approved, so projects move on rails considerably faster. For emitting or fire-risk industries, the procedural advantage of park land usually outweighs the rent gap.
Practical recommendations
Our advice: ask the park developer for a whole-term fee schedule (land, infrastructure, wastewater, management) including escalation clauses; for off-park land, commission a self-build infrastructure estimate and obtain written planning confirmation from the local land authority before paying any deposit. Choose the site on total cost over the first ten years, not on year-one rent.
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FLAT Law Firm advises foreign investors on company formation, capital structure, land and joint-venture governance in Vietnam. Contact us for advice on your specific case.
For general reference only; not a substitute for legal advice on your specific case.