Thai developer and factory estates manager Amata Corp plans to expand its industrial zones to meet the surge in demand from Chinese investors in the next five years, according to local media reports.
Currently, there are about 60 Chinese factories in Amata zones. However, the number is expected to rise to 100 by year-end, and 300 to 500 by 2017.
The company anticipates higher investment in Amata City in Rayong by foreign firms, especially those from China, which have transferred their factories after facing trade hurdles in other countries, said Amata Corp Chief Marketing Officer Viboon Kromdit.
In addition, China’s slowing economic growth also encourages investors to look elsewhere – a move backed by the central government.
“We’ve prepared the land plots to serve rising demand for business establishments. We will expand phase by phase, each comprising between 1,000 and 2,000 rai,” noted Viboon.
The growing demand for industrial property in Thailand is due to the kingdom’s geographical proximity to other ASEAN countries. Moreover, Amata regularly holds road shows in China to attract more Chinese businesses to set-up factories in its zones.
Coupled by the government’s THB350 billion water management projects and THB2 trillion worth infrastructure projects, the surge in Chinese factories at Amata zones is expected to boost foreign investors’ confidence in Thailand as well as help Amata sell 3,000 rai of industrial property this year.
At present, Amata operates one estate in Vietnam, the Amata City Bien Hoa Industrial Park, and two estates in Thailand, namely Amata Nakorn in Chon Buri and Amata City in Rayong.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg
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