Amata VN Pcl, a subsidiary of Thailand’s industrial estate developer Amata Corporation, has set aside $200 million to develop its second project, Amata City Long Thanh, during 2016-18.
Thanks to its strategic location near Ho Chi Minh City, the company says it can make this project a small community on around 3,200 acres of land. Of the total land, 40 per cent will be an industrial estate and 60 per cent will be accommodations and other commercial buildings.
“We will start developing the industrial part first. For accommodations, we will start it once the [Vietnamese] government constructs the express way, scheduled to start by 2019, by then the value of this project and the land will rise sharply,” chief executive officer Somhatai Panichewa told DEALSTREETASIA.
The overall budget for this project is estimated to be around $800 million, she added.
AMATA VN, one of top three foreign-owned industrial estate developers in Vietnam, had invested in its first project – Amata City Bien Hoa – about 22 years ago. So far, it has injected around $800 million into the development there.
This year, it is developing the third phase of Bien Hoa to serve the demand from Japanese and Korean high-technology industrial firms. Panichewa further added the company has signed contracts to sell around 20 per cent of the third phase which is expected to transfer to the clients next year.
Vietnam is one of the fastest growing markets in Southeast Asia with foreign direct investments of $4 billion in the first quarter, rising to $5 billion in April. However, the chief executive of Amata said that the gross domestic products might be a bit slowdown due to the drought this year.
Currently, it is applying for another licence to set up another industrial park in the north of Vietnam, which will comprise both an industrial park and accommodations like Long Thanh, but the size will be larger on a strategic location near a deep sea port.