Industrial estate land sales are expected to meet this year’s target of 3,000 rai despite lacklustre first-quarter sales stemming from the ongoing political conflict, says the Industrial Estate Authority of Thailand (IEAT).
Governor Veerapong Chaiperm yesterday said despite the sale of only 900 rai in the first quarter, the figures should improve in the second quarter.
“The political conflict has slightly affected land sales, and the IEAT still believes the target can be reached by year-end,” he said.
The increasing numbers of projects approved by the Board of Investment will encourage investors to come to Thailand, added Mr Veerapong.
At present, the IEAT is in charge of 55 of industrial estates covering a total area of 154,853 rai in 15 provinces. It also operates one industrial port.
From October-March this year, 1,770 rai of land in industrial estates nationwide were sold.
Meanwhile, the IEAT is cooperating with Muang Udonthani Co to develop Udon Thani Industrial Estate. With a total investment of 2.9 billion baht, the estate is expected to operate in 2016.
Covering 2,219 rai in the northeast province, the Udon Thani estate aims to attract investment of 60 billion baht and create 16,900 jobs. It major focus will be the automotive and electronics industries.
Udon Thani is one of the estates that IEAT chose to jointly develop due to suitable areas. Others include those in Nakhon Ratchasima and Nong Khai.
Foreign investors have begun to express an interest in the new estate, said the governor.
“Though we haven’t started selling the land, investors from China and Japan have been contacting us to buy the land,” said Muang Udonthani managing director Suwit Pipatwilaikul.
He said the first phase of 990 rai is undergoing environmental impact assessment, while sales are expected to begin once the EIA is completed in November.
Chinese investors are interested in agribusiness, while Japanese investors are keen on manufacturing electronic products, Mr Suwit said.
Udon Thani Industrial Estate also plans to develop a 300-400-rai plot train station into a distribution centre to offer logistic advantages to customers.
Located near an airport and train station in the province and the border with Laos, Udon Thani Industrial Estate provides advantages to transport goods to neighboring countries, he said.
Udon Thani Industrial Estate is the 56th industrial estate in Thailand and the 16th in which the IEAT has invested.