The developer wants to bring factories and jobs to the poorer central region.
Vietnam has become a hot investment destination in Southeast Asia, with Thai industrial developer Amata VN a major foreign player in the country. Bangkok Post reports.
Amata VN is a subsidiary of Amata Corporation, which has a 73% stake. Both companies are listed on the Stock Exchange of Thailand.
Founded in 1994, Amata VN is developing three industrial estates in Vietnam: Amata City Bien Hoa, Amata City Long Thanh and Amata City Halong. The company was the first foreign industrial developer in Vietnam.
Related: Formation of foreign invested company in Vietnam
Bien Hoa and Long Thanh are in the south of Vietnam, while Ha Long is located in the northern region.
Amata VN is studying the feasibility of establishing a fourth industrial location in Quang Tri province, in central Vietnam, on 700 rai.
Somhatai Panichewa, president and chief executive of Amata VN, said the company is teaming up with Japanese and Singaporean companies to conduct a feasibility study requested by the Vietnam government.
“The Vietnam government is calling for overseas companies to expand and invest, especially in Quang Tri, the poorest province in the country,” she said. “The government expects to bring new investment flow into the central region to create jobs.”
Mrs Somhatai said the province can connect the northern and southern regions in Vietnam.
“Further details are expected to be concluded this year,” she said. “Amata VN projects a new industrial estate based on a township concept, a combination of manufacturing, commercial and residential zones.”
She said the project will be a green industrial estate in line with the Vietnam government’s policy of eco-friendly industrial development.
Mrs Somhatai said Vietnam is the fastest-growing economy in Southeast Asia with annual GDP growth of 6-8%.
“Vietnam is an attractive country in terms of foreign direct investment, as government incentives include free leases for land,” she said.
Mrs Somhatai says the next project will be a green industrial estate in line with Vietnamese government policy. Tawatchai Kemgumnerd
The government is developing a new international airport in Long Thanh and a new seaport to connect with the East-West Economic Corridor, also known as the R9 route, and serve Vietnam, Laos, Thailand and Myanmar.
Mrs Somhatai said Amata VN will increase its 2020 development budget for industrial estates in Vietnam from 3 billion baht allocated for 2019.
The company has a permit to develop 20,000 rai in three industrial estates and has another 16,000 rai awaiting a licence.
She said Amata City Bien Hoa is obtaining an investment certificate for new development and is in discussions with potential clients for commercial areas.
Amata City Long Thanh and Amata City Halong started pre-construction work on land clearance. The company aims to start development plans and marketing activities by 2019, expecting to secure revenue in 2020.
For Long Thanh, Amata VN is developing 3,000 rai and expects sales to begin in the first quarter of 2020, Mrs Somhatai said.
“In 2019, we will sell roughly 120-125 rai to companies from Japan, Taiwan and China,” she said. “Amata VN expects 2019 revenue to grow by 10% from 1.17 billion baht in 2018 from three business types: real estate sales, utility services and rental fees.”
Amata VN plans to develop solar rooftops and wind farms in Vietnam to support power generation for clients in the three industrial estates.
Mrs Somhatai said the pilot power project is at the head office and has a capacity of 1 megawatt. Amata VN is studying the results and will outline future plans for power generation at the three industrial estates.