The Savills Blog

Key Considerations in Industrial Project Operations

The robust development of industrialisation in Viet Nam has raised the standards for management and operational teams in the industrial sector. Facility management ensures continuous and efficient operations and strategically enhances infrastructure quality in order to attract tenants and optimise costs. 

Most industrial projects in Viet Nam were established by the government, with management tasks delegated to local authorities who, in turn, have entrusted the building owners' committee to handle daily operations. This model has made the market unaware of professional facility management providers.

However, unlike the traditional model, in which local management boards are responsible for operations, modern industrial projects are developed by private businesses in a more integrated manner. This diversity includes ready-built factories, cold storage, logistics centres, worker housing, and green spaces, raising the bar for comprehensive, tailored, and sustainable management capabilities. These new developments create a real demand for professional facility management agents, particularly companies with international standards who can satisfy global trends such as Green Standards and Net Zero.

The robust development of industrialisation in Viet Nam has raised the standards for management and operational teams in the industrial sector.

06 Main Types of Industrial Real Estate 

  • Distribution Warehouses: These facilities are typically equipped with modern inventory management systems, lifting equipment, and handling areas. They focus on the construction and management of warehouses and distribution centres.
  • Manufacturing Plants: These projects involve building facilities to create products from raw materials. The scope can include automated production lines, safety equipment, and stringent management.
06 Main Types of Industrial Real Estate
  • Flexible Warehouses: These facilities have various purposes, including manufacturing, storage, or office space. They typically feature open designs that allow for easy repurposing as needed.

  • Multi-Tenant Properties: With a diverse tenant mix, the property benefits from lower operating costs through shared services and flexible lease terms. The management must optimise space and remain flexible.

  • Transport Real Estate: Developments designed for the movement of goods. These typically include truck parking areas, loading and unloading equipment, and smart transport management systems.

  • Telecommunications Infrastructure: Projects related to building infrastructure for telecom networks, such as transmission towers and data centres. They often include signal transmission equipment, data security systems, and facilities for maintenance staff.

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Each type of industrial property requires distinct maintenance and risk management solutions, highlighting the importance of a professional facility management provider to maximise efficiency and performance. 

Responsibilities of Industrial Project Facility Management

Facility management within an industrial project extends beyond maintenance of projects or machinery. It is a comprehensive management system that optimises operations, ensures regulatory compliance, and enhances investment returns for developers and factories.  

1. Operation and Maintenance of Technical Systems & Infrastructure 

  • Maintaining and regularly repairing M&E systems (electricity, water, HVAC, fire safety). 
  • Monitoring wastewater treatment and operating clean water supply systems. 
  • Ensuring technical systems remain stable to minimise production disruption risks. 
  • Maintaining internal transport systems.

2. Asset & Equipment Management 

  • Inventorying, monitoring, classifying, and maintaining common assets (equipment, production machinery, operational tools). 
  • Planning for replacements and repairs to lengthen asset lifecycles. 

3. Industrial Hygiene & Waste Management

  • Managing cleaning teams for common areas, internal roads, restrooms, and waste collection areas.
  • Collecting, sorting, and processing industrial and household waste following regulations.
  • Ensuring a green and clean environment that meets ISO 14001 standards or equivalent. 

4. Security & Safety Management 

  • Organising 24/7 security personnel, developing emergency response procedures, and conducting regular fire drills. 
  • Advising on improving workplace safety and protective standards for production areas.
  • Consulting and supporting the implementation of appropriate insurance packages (fire, property, liability) to comprehensively protect the project in case of risks.

5. Support for Developers & Tenants 

  • Receiving and addressing service requests from tenants. 
  • Assisting with setup, handover of premises, and technical connections for new tenants. 
  • Providing customer care services and supporting administrative procedures (if requested).

6. Procurement & Supplies Management 

  • Planning and implementing procurement processes for supplies and equipment needed for the entire industrial project's operations. 
  • Selecting reputable suppliers and controlling quality and delivery schedules. 
  • Managing expenditures effectively, ensuring investment efficiency and budget transparency for developers.

Conclusion

As the industrial sector in Viet Nam enters a phase of intensive and sustainable development, facility management transcends mere logistics. It is an essential strategic element that helps developers enhance their competitive edge, ensure stable operations, reduce costs, and create a safe, professional, and modern working environment.

Contact Savills Property Management Department for advice on the most optimal operational solutions.

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