Investors still spending on industrial estates in Thailand: IEAT
Investors’ interest in industrial estates has started picking up now that Thailand is recovering from the pandemic fallout, the Industrial Estate Authority of Thailand (IEAT) said last week.
There are 67 industrial estates in 16 provinces managed by IEAT and other private firms. Of the 190,150 rai (30,424 hectares) covered by the estates, 27,278 rai (4364.48 hectares) is still available for leasing.
Veeris Ammarapala, IEAT director, said this year appears to be heading in the right direction with foreign firms seeking details and wanting to know the benefits of investing in industrial estates.
IEAT has been organising tours for investors to survey the areas, he added.
So far this year, some 3,458 rai has been leased, far exceeding IEAT’s initial target of 2,500 rai. Last year saw the lease/sale of 2,016 rai.
IEAT is planning to approve another 17 industrial estates, which signals confidence in growth, especially in EV and electronics industries.
Relaxed border restrictions, geopolitical tensions and trade wars have made some investors exit China. Besides, investment policies in some countries have reached saturation points.
With this in mind, IEAT changed its leasing/sales target to 4,350 rai from 4,130 rai in May.
Veeris said currently investors from Japan, China, South Korea, Taiwan, Hong Kong, India, Europe, the US and Saudi Arabia have shown interest, mostly in industries related to EVs, electronics and semiconductors.
“In the roadshow held in Japan between June 26 and 29, investors appeared confident that Thailand’s political situation will not affect their investments,” Veeris said.
“New investors are still interested because of several factors such as availability of lots, readiness and other benefits. Most importantly, Thailand has clear policies on the environment,” he added.
International tensions and global sustainability trends rather than local politics are the catalysts driving many companies to adjust their supply chains. Many have had to look for new, non-conflicting investment sources and places that are conducive to long-term investment and support green investments.
Some investors, however, are choosing to hold off on investments while they gauge Thailand’s political situation.
During IEAT’s roadshow in Japan, investors were mainly interested in Thailand’s green energy policy as they prioritise the use of clean energy in manufacturing. IEAT has policies to produce solar energy in industrial estates under its jurisdiction.
