Thailand’s Amata invests in Vietnam industrial park

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Amata CorpStock Exchange of Thailand-listed Amata Corporation Plc, a developer and manager of factory estates in Southeast Asia, is accelerating its investment in Vietnam with the building of a modern and integrated city industrial estate in a move aimed at cashing in on the opening of the ASEAN Economic Community and economic growth in Vietnam.

Subsidiary Amata VN Plc on August 21 signed a cooperative agreement with the People’s Committee of Dong Nai to develop Amata City Long Thanh worth $530 million on 1,285 hectares.

Amata will invest 20 per cent of the amount to develop basic infrastructure in the industrial estate in Dong Nai, a province in an economic zone.

“Amata has 25 years of experience of industrial estate development Thailand and 20 years in Vietnam by operating Amata Bien Hua Industrial Estate in Dong Nai,” Amata Corporation chief executive Vikrom Kromadit

“Vietnam has a population of almost 90 million, and many people are of working age. Labour costs there are half what they are in Thailand, so manufacturing has potential to expand,”he added.

Development of the new estate will be divided into three phases. The first is the Hi-Tech Industrial Park aimed at attracting manufacturing in the biotech, research, nanotechnology and pharmaceutical sectors.

The second phase or Service Township will focus on building integrated facilities such as a housing estate, hospital, school and logistics services. The third phase will be a Mega Township that will include shopping centres, food courts and recreation areas.

The first and second parts will be managed by Amata Vietnam Joint Stock Co (JSC), a Vietnamese-listed subsidiary of Amata VN. Amata Vietnam JSC will own 65 per cent of Hi-Tech Industrial Park, while 35 per cent will be owned by Amata VN. The Mega Township will be wholly owned by Amata VN.

“We chose the area due to its proximity to the newly built highway, the proposed site of Ho Chi Minh airport, a deep-sea port and the Amata Bien Hua Industrial Estate,” said Somhatai Panichewa, chief executive of Amata VN and president of Amata Vietnam JSC.

“Amata City Long Thanh is currently in the master plan phase and will need further approval from the local government. If everything goes smoothly, we expect the project will be approved in mid-2015 and and construction begin at the end of next year. The development will be done in phases depending on the demand of customers. I expect all phases to be completed in 10-15 years,” he said.

Hi-Tech Industrial Park has already attract the interest of multinational companies that plan to relocate production to Vietnam due to cheaper labour costs.

Amata VN plans to be listed on the Stock Exchange of Thailand in mid-2015 to raise capital for developing Amata City Long Thanh.

Vikrom said the group had targeted to develop 100,000 hectares of industrial estates both in Thailand and abroad by the end of 2020, up from 10,000 hectares as of now.

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Reading Time: 2 minutes

Stock Exchange of Thailand-listed Amata Corporation Plc, a developer and manager of factory estates in Southeast Asia, is accelerating its investment in Vietnam with the building of a modern and integrated city industrial estate in a move aimed at cashing in on the opening of the ASEAN Economic Community and economic growth in Vietnam.

Reading Time: 2 minutes

Amata CorpStock Exchange of Thailand-listed Amata Corporation Plc, a developer and manager of factory estates in Southeast Asia, is accelerating its investment in Vietnam with the building of a modern and integrated city industrial estate in a move aimed at cashing in on the opening of the ASEAN Economic Community and economic growth in Vietnam.

Subsidiary Amata VN Plc on August 21 signed a cooperative agreement with the People’s Committee of Dong Nai to develop Amata City Long Thanh worth $530 million on 1,285 hectares.

Amata will invest 20 per cent of the amount to develop basic infrastructure in the industrial estate in Dong Nai, a province in an economic zone.

“Amata has 25 years of experience of industrial estate development Thailand and 20 years in Vietnam by operating Amata Bien Hua Industrial Estate in Dong Nai,” Amata Corporation chief executive Vikrom Kromadit

“Vietnam has a population of almost 90 million, and many people are of working age. Labour costs there are half what they are in Thailand, so manufacturing has potential to expand,”he added.

Development of the new estate will be divided into three phases. The first is the Hi-Tech Industrial Park aimed at attracting manufacturing in the biotech, research, nanotechnology and pharmaceutical sectors.

The second phase or Service Township will focus on building integrated facilities such as a housing estate, hospital, school and logistics services. The third phase will be a Mega Township that will include shopping centres, food courts and recreation areas.

The first and second parts will be managed by Amata Vietnam Joint Stock Co (JSC), a Vietnamese-listed subsidiary of Amata VN. Amata Vietnam JSC will own 65 per cent of Hi-Tech Industrial Park, while 35 per cent will be owned by Amata VN. The Mega Township will be wholly owned by Amata VN.

“We chose the area due to its proximity to the newly built highway, the proposed site of Ho Chi Minh airport, a deep-sea port and the Amata Bien Hua Industrial Estate,” said Somhatai Panichewa, chief executive of Amata VN and president of Amata Vietnam JSC.

“Amata City Long Thanh is currently in the master plan phase and will need further approval from the local government. If everything goes smoothly, we expect the project will be approved in mid-2015 and and construction begin at the end of next year. The development will be done in phases depending on the demand of customers. I expect all phases to be completed in 10-15 years,” he said.

Hi-Tech Industrial Park has already attract the interest of multinational companies that plan to relocate production to Vietnam due to cheaper labour costs.

Amata VN plans to be listed on the Stock Exchange of Thailand in mid-2015 to raise capital for developing Amata City Long Thanh.

Vikrom said the group had targeted to develop 100,000 hectares of industrial estates both in Thailand and abroad by the end of 2020, up from 10,000 hectares as of now.

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