Amata earmarks B3-4bn for strategy
Amata Corporation Plc, the industrial estate developer, plans to spend 3-4 billion baht in 2020 for land development, business efficiency and infrastructure improvement.
The budget includes both Thailand and Vietnam operations.
Viboon Kromadit, chief executive, said Amata will continue to develop and improve five industrial estates: two in Thai provinces and three in Vietnamese provinces.
Amata will seek potential opportunities in both countries to expand its industrial estates in the future.
With the 2020 budget, Amata is interested in partnering with the state-run Industrial Estate Authority of Thailand (IEAT), which is seeking to go overseas like other state enterprises.
The IEAT manages most industrial estates across Thailand. It runs some operations while granting licences to private industrial estate developers.
"The government encourages state enterprises to expand their business presence in overseas markets and create new revenue streams from those markets," Mr Viboon said. "The IEAT plans to establish a new company with the private sector to oversee the international market, while Amata is ready to join with the IEAT after being approached by the agency."
He said Amata expects to sell new developed plots at Amata City Chon Buri and Rayong to grow by 10% in 2020.
The company predicts sales of 700 rai of land in two provinces in Thailand and 125 rai for the Vietnam operations.
But Amata has yet to forecast new land sales for Vietnamese operations for 2020. Its subsidiary Amata VN Plc is overseeing those three industrial estates in Vietnam.
Mr Viboon said industrial land sales in Vietnam depend on the demand of local and foreign companies.
"Vietnam and Thailand are benefiting much from the US-China trade war, resulting in Chinese companies investing heavily in Southeast Asia," he said.
In addition, Amata is optimistic about the implementation of the government's Eastern Economic Corridor (EEC) scheme because each development project is needed for the state's budget disbursement in the three EEC provinces to beef up the local economy and boost investor confidence.
Mr Viboon said Chinese players are investing heavily in Thailand, with the number of Chinese companies increasing every year.
"The EEC seems to be an attractive scheme for foreign investors," he said.
Chinese investors at Amata City Chon Buri account for 2-3% of total companies, while Japanese investors control 60-62%.
Chinese companies represent 36% at Amata City Rayong, while Japanese companies make up 32%.
Amata has 8,837 rai of undeveloped land, with 7,998 rai in Chon Buri and 839 rai in Rayong.
For Vietnam, the group has 1,269 rai in three industrial estates: Bien Hoa, Halong and Long Thanh.