Bangkok Post: The world windows to Thailand

Land sales of Amata Corporation Plc, the country's biggest industrial estate developer, dropped almost 74% year-on-year to about 50 rai in the first half, says director Viboon Kromadit.

Last year, sales totalled 896 rai, of which 191 rai were sold in the first half.

The company expects the decline in land sales to continue into the second half of the year, due to the impact of local politics and the economic slowdown, said Mr Viboon, also the company's chief operating officer.

The economic crisis will linger for another three to six months, he said.

"It [the fall in sales] comes from economic and political factors, which are both internal and external factors," he said. "I don't think that the external factors already show a revival. Currently, we're at the bottom of the U-shape (in terms economic decline), but how long will that last?"

The Japanese are the biggest investors in Amata's industrial estates.

Currently Thailand's main competitor in attracting foreign direct investment (FDI) is Vietnam.

Last year Vietnam netted $64 billion in FDI, and recorded positive economic growth. In the same period, Thailand only attracted $10 billion in FDI, while its economy contracted.

About 20 customers are considering investing in Amata projects, but several other investors, including Posco Thailand, opted for Vietnam instead of Thailand, said Mr Viboon.

"They [investors] compare us with Vietnam mostly on the political factors. They think that our home is not a suitable place to live," he said. "Nowadays the Vietnamese also have an increased understanding in business."

Amata generates 8% to 10% of its income from Vietnam, where it currently has some 600 hectares (4,000 rai) of land being leased.

About half of the area is occupied by industrial clients, the rest is used for commercial purposes.

Amata's rental yield in Vietnam should grow by 5% to 10% this year, in line with the country's economy, he said.

The company currently more than 10,000 rai of land for sale in Thailand.

"Before the economic crisis, our intention was to sell 2,000 rai per year so the amount should be sold in four to five years. It should have been sold out by 2011," said Mr Viboon.

Only five to six factories were built on its land this year, compared to 102 in 2004, a rate of almost two factories per week.

"If we continue selling like this, the 10,000 rai wouldn't be sold out even when I'm old," he said.

AMATA shares closed yesterday on the Stock Exchange of Thailand at 4.72 baht, down six satang, in trade worth 54.1 million baht.