Twenty Chinese companies have shown interest in investing in a Rayong industrial estate to exploit greater trade opportunities expected from the creation of the Asean Economic Community (AEC) at the end of next year.
Co-developed by SET-listed industrial operator Amata Corporation and China's Holley Group since 2006, the Thai-Chinese Rayong Industrial Zone already houses 60 Chinese-owned factories, mostly in the automotive, electronics and machinery sectors.
Amata chief operating officer Viboon Kromadit said the estate is being operated by Thai-Chinese Rayong Industrial Realty Development Co on a planned area of 3,000 rai. About 1,800 rai has been developed but there are plans to open a second phase covering more than 1,000 rai.
Mr Viboon said 20 Chinese companies had shown interest in investing in the second phase.
Chinese investors want to use Thailand as a logistics centre to supply products to Asean countries, which have a population of about 600 million. China is also part of Asean+3, a forum that fosters cooperation between Asean and the three East Asian nations of China, Japan and South Korea.
Amata believes up to 200 Chinese companies will head here over the next two years, with half coming next year.
The Holley Group holds a 75% share in Thai-Chinese Rayong Industrial Realty Development, and Amata owns 25%.
The Chinese government has a policy to expand production bases overseas with plans to encourage small and medium-sized enterprises to gather in clusters even when doing business overseas. Tensions between China and Vietnam are also persuading more Chinese investors to turn to Thailand.
A total of 45 projects from Chinese companies have received incentives from the Board of Investment. With an investment value of 42.53 billion baht, the projects cover the agriculture, textiles, mining, electronics, machinery and chemical sectors.
Amata expects its revenue to grow 10% this year, with land sales reaching 1,000 rai. In the first half, its year-on-year revenue declined by 14.56% to 2.9 billion baht.
AMATA shares closed on the SET on Friday at 16.30 baht, down 30 satang, in trade worth 74.9 million baht.