Amata put off by EEC delays, cites state failure

SET-listed Amata Corporation remains sceptical amid the many project delays in the Eastern Economic Corridor (EEC), maintaining a land sales target of 950 rai in 2019.

Viboon Kromadit, chief executive of the industrial estate developer, said that while the EEC is a positive development for many industrial operators and land developers, megaprojects under development by the government are running behind schedule.

“We have the EEC Act of 2018 to support new projects and the establishment of new related agencies, but a one-stop service centre in the EEC has yet to form,” he said. “On the government’s end, the EEC Office does not have enough officials to push forward the plans in the pipeline.”

Mr Viboon said the EEC has fuelled sharp price increases for land in the three EEC provinces and many industrial companies have underpriced land in order to nab potential buyers.

The underpricing action is not part of Amata’s plan, he said, because the competition is not sustainable.

Despite the murky EEC prospects, Amata is gaining a windfall from the trade dispute between the US and China, Mr Viboon said.

“We have secured 200 rai in plot sales in the first half of 2019 while new investment flows from China will be seen in the second half,” he said. “The rising trade war has brought Chinese investors who are trying to divert their business presence to Southeast Asia.”

Mr Viboon said Chinese companies want to avoid risk impact from the trade war.

“Amata has to be prepared from this windfall as we target to sell 150 rai at the Thai-Chinese industrial park this year at Amata City in Rayong,” he said. “We are in talks with 7-8 Chinese companies that plan to invest in new manufacturing facilities in Rayong.”

The Thai-Chinese Industrial Park is operated by an Amata subsidiary, Thai-Chinese Industrial Realty Development, which holds a 25% stake, while Chinese counterpart Zhejiang Holley Group owns 75%.

Mr Viboon said the Thai-Chinese Industrial Park is open for automotive, rubber and electronics activity.

Amata has developed plots for sale this year in two EEC provinces: 200 rai in Chon Buri and 1,500 rai in Rayong.

The company has set aside a budget for Thailand’s industrial estates at 3-5 billion baht in 2019, up from 2 billion baht in 2018.

The total investment in Amata is 10 billion baht in 2019, and the remaining budget is allocated to industrial estates in Vietnam.

‘‘ The EEC Office does not have enough officials to push forward the plans in the pipeline.

VIBOON KROMADIT Chief executive, Amata Corporation