SET-listed Amata Corporation Plc plans to expand the amount of developed land on its Thai-Chinese industrial estate zone in Amata City, Rayong to 1,000 rai this year to tap rising demand from Chinese investors.
Viboon: Growing Chinese investment
Chief marketing officer Viboon Kromadit said Amata has 500-600 rai of developed land on the industrial estate in Rayong which it plans to expand to 1,000 rai as more Chinese are investing in Asean, including Thailand, where the government has implemented a raft of measures to attract foreign investment.
"Chinese investors have their eyes on Asean, especially Thailand, where several Chinese industrial sectors are set to be located," said Mr Viboon.
There are about 80 Chinese companies investing in Amata industrial estates in Thailand. That number is expected to rise to 100 this year.
Amata has 10,000 rai of land on hand in both Thailand and Vietnam, 1,000 rai of which has been developed and is ready for sale.
Mr Viboon said another factor that makes Thailand, particularly Amata City in Rayong province, attractive for foreign investors is the government's policy to promote the Eastern Economic Corridor.
The EEC project is expected to help increase investment in eastern Thailand, where there is strong potential to create technology transfers that will improve industry.
The project is also expected to create demand for logistics and warehouse solution services, new business areas that will create jobs and support the domestic economy.
The project spans the provinces of Chon Buri, Rayong and Chachoengsao, which will be designated as a high-tech industry cluster with an eye towards becoming Asean's leading economic zone for industrial, infrastructure and urban development.
"The Thai government's policy to help boost investment is the right thing, especially the EEC project, which is expected to lend support to the Thai economy," Mr Viboon said. Amata is in talks with 5-6 companies that are interested in buying land on the estate in Rayong thanks to the EEC project, he added.
Mr Viboon said Chinese industries expected to invest there included food, electronics, auto and auto parts companies.
But he said there are some risks that could prevent new investment from rising substantially this year. These include unexpected political turbulence that could erupt, especially if the general election is not held as planned.
Investors are also keeping an eye on the new economic policies of US President-elect Donald Trump, he said.
Due to the risks, Mr Viboon said he conservatively forecast Amata's revenue remain in past years' range of 6.2-6.5 billion baht.
AMATA shares closed on Friday on the SET at 13.10 baht, up 10 satang, in trade worth 118 million baht.