SET-listed Amata Corporation Plc, the largest industrial estate developer, says it is partnering with Tuan Chau Group to develop Amata City Halong Industrial Estate on 36,000 rai of land in the northern Vietnamese city of Quang Ninh.
Somhatai Panichewa, president of Amata (Vietnam) Joint Stock Company (Amata VN), said it invested 70% in the joint venture with the Vietnamese Tuan Chau Group, which owns 30%.
The company plans to start developing the first phase of the industrial estate comprising 3,125 rai with a budget of US$60 million. Construction is scheduled to start next year, finishing in 2018.
It expects some 1,000 factories to be set up in the first phase.
Somhatai: First phase to start in 2016
The plan has the company spending 10-15 years and a budget of $1.6 billion to develop all 36,000 rai of the estate, separated into 10 phases and completed by 2030.
"Amata VN submitted an investment application this month and expects to get approval by the third quarter of this year. We expect construction of the first phase to start next year. This project should create investment value of up to $5 billion and roughly 300,000 jobs for villagers," she said.
Amata Corporation has invested in Vietnam for 20 years, with projects in Long Thanh, Bien Hoa and Halong.
Ms Somhatai said Amata VN planned to sell 139.83 million shares in an initial public offering (IPO) in the third quarter in order to raise funds for investment.
"At this stage, we are working on the filing procedure with the Securities and Exchange Commission and we expect the procedure to be completed in the third quarter of this year, when we would launch the IPO," she said.
Amata VN expects investors from Japan, South Korea and Taiwan will be interested in moving their production bases to Vietnam, especially developing high-technology companies in electronics. It plans to develop land in the estate for high-tech investments.
This year Amata Corporation plans to invest 4.5 billion baht for both domestic and overseas investments.
"We will focus on Vietnam this year, spending the lion's share of the investment budget there," said Ms Somhatai, adding the company does not have any plans to invest in Myanmar yet.
She said with Vietnam's ambitious plan to expand its economy substantially this year by attracting foreign investors, Amata VN was hopeful companies will opt for its industrial estate.
The company expects more corporations and giant high-technology companies will invest in Vietnam such as Samsung and LG, which have already moved their production bases there.
The Vietnamese government forecast the country's economy would grow by 5.8-6% this year.
AMATA shares closed yesterday on the Stock Exchange of Thailand at 17.90 baht, unchanged, in trade worth 34.5 million baht.