The impact of the pandemic caused a slight drop in land sales in industrial estates in fiscal 2020, but investment value rose sharply by 683%, says the Industrial Estate Authority of Thailand (IEAT).
From October 2019 to September 2020, overall industrial land sales decreased by 1.52% year-on-year to 2,150 rai, with sales in Eastern Economic Corridor (EEC) decreasing by 7.2% year-on-year to 1,841 rai.
In fiscal 2019, sales tallied 2,184 rai, with sales in the EEC at 1,984 rai.
IEAT governor Somchint Pilouk blamed the decrease on the pandemic affecting businesses, as well as lockdown measures that hindered foreigners from travelling to Thailand.
"We expect the world will soon use vaccines to stave off the pandemic, helping boost the global economy next year," she said.
Despite the unimpressive land sales, higher investment value led to more employment in industrial estates, reported the IEAT.
The investment value increased by 683% to 239 billion baht in fiscal 2020 mainly because existing investors expanded their investment, said Ms Somchint.
The expansion increased employment to 32,753 from 5,512 jobs, a 494% increase.
"These manufacturers work in the fields of electrical appliances, electronics, scientific equipment, automotive and logistics," she said.
The IEAT operates or co-operates with companies 60 industrial estates in 16 provinces.
The most attractive industry for investors in fiscal 2020 was automotive and logistics; followed by steel and metal products; rubber, plastic and artificial leather; engines and machinery; and electrical appliances, electronics and scientific equipment.
Japanese investors had the highest value of investment, followed by China, Taiwan, Australia and Hong Kong.
In fiscal 2021, IEAT aims to sell 2,500 rai of industrial land and expects to develop 2-3 new industrial estates.
"We expect good business prospects in fiscal 2021 because of positive factors, including infrastructure development projects in the EEC," said Ms Somchint.