Healthy sales drive new projects for Amata
YUTHANA PRAIWAN
Ho Chi Minh City _ Amata Corporation Plc plans to develop another 3,000 hectares, or 18,750 rai, of industrial land in Vietnam, with its existing developed sites expected to be completely sold out over the next three years.
The expansion by subsidiary Amata (Vietnam) Co is aimed at supporting the rising demand for industrial land in southern Vietnam, expected to see continued growth in the future. This is due to attractive investment incentives, as well as low labour costs, a good workforce and well developed infrastructure.
The company has developed 700 hectares of land in Bien Hoa City, known as the Amata City Bien Hoa industrial park, around 30 kilometres northeast of Ho Chi Minh City, mainly for automotive, electronics and consumer-goods plants.
About 300 hectares of development land in Bien Hoa City had been sold and the remainder was expected to be sold within three years, said Somhatai Panichewa, the senior vice-president for business development of SET-listed Amata.
Amata (Vietnam), a joint venture between Amata and Sonadezi Bien Hoa of Vietnam, the state developer of industrial estates in Dong Nai province, expects to be awarded a licence this month to conduct land surveys and a feasibility study for the new project, Amata Express City.
Sales of the new industrial land are expected to begin in 2008.
The site of the new Amata project was a military facility during the Vietnam War but was deserted when the war ended.
The government of Vietnam is planning to build a new international airport near the site of the project to help ease air congestion at the existing Tan Son Nhat international airport. A deep seaport and water reservoir will also be developed at Vang Tau, along with an energy complex near the site of the new Amata project.Amata (Vietnam) started selling industrial land in Vietnam in 1994 but sales slowed following the Asian economic crisis in 1997.
Sales improved rapidly in 2003 after Vietnam began opening up more foreign investment opportunities.
According to Ms Somhatai, revenue from Vietnam currently accounts for 30% of total group revenue.
The group also plans to develop an industrial project in Burma to diversify its risks from business in Vietnam.
Amata shares closed yesterday on the SET at 15.80 baht, down 10 satang, in trade worth 11.22 million baht.
Source - Bangkok Post, Tuesday 8 August 2006