Thai industrial estate developer Amata VN Pcl plans to disburse up to $200 million this year for two industrial park projects in Vietnam, which has seen a strong influx of foreign direct investment, Reuters reported.
The amount will be spent on two sites namely Amata City Bien Hoa, its first project in Vietnam, and a hi-tech industrial part named Amata City Long Thanh in the southern province of Dong Nai
The firm in 2015 was granted a license to develop the second estate Long Thanh on 410 hectares of land, which is expected to come online in 2017, Chief Executive Officer Somhatai Panichewa said.
Amata VN is also asking for approval to develop two projects with a combined area of 801 hectares and is expected to receive the licenses in the third quarter, it said.
According to a statement sent to the Stock Exchange of Thailand (SET), Amata said that it has formed a joint venture named Amata City Halong JSC with a local firm to develop an industrial city in the northern province of Quang Ninh
The joint venture will have a registered capital of $60 million, in which Amata VN Pcl will hold a 70% stake, while Tuan Chau Investment Hi-tech Infrastructure Development JSC, owned by tycoon Dao Hong Tuyen, will take a 29% stake.
Amata VN Plc expects its revenue to reach 1.4 billion baht ($39.3 million) this year, a rise of 75% from a year earlier.
“The revenue should come from the industrial estate in Bien Hoa, where the strong potential of the growing economy is expected to attract more investors to start investing there,” CEO Somhatai Panichewa was quoted by Bangkok Post as saying.
Amata VN is also negotiating with a Japanese investor interested in investing in Vietnam. Negotiations are expected to reach a conclusion by the third quarter when Amata is expected to sell up to 50% of its total land available there.
“Most customers of Amata VN are Japanese companies, particularly those in packaging, electrical and electronics and garments. They are new customers who have never invested in Thailand,” Somhatai Panichewa tipped.