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Amata Corporation Plc (AMATA), Thailand’s leading industrial estate operator, has come out to say that it expects the land sales this year to meet the target of 1,000 rais after estimating that the direction of investment in the second half of 2022 would be expanding better than in the previous 2-years as Thailand opens its borders.
Viboon Kromadit, Director and Chief Marketing Office for Amata Corporation Plc. revealed that investment trends in the second half of the year are expected to recover and rise again if the government maintains the policy of opening the country.
Thailand, which had closed its borders and/or put lots of restrictions on those entering the country has since July 1st lifted all restrictions and allowed fully vaccinated travelers to enter the country without ‘Thailand Pass’ or without having to go through various quarantines.
This opening of the country, he said, has helped investors who were looking to invest in Thailand to travel and make their decision easier. The continued depreciation of the Thai Baht and inflation is unlikely to have any major impact on those who are looking for long-term investments.
AMATA, he said, expects that land sales of the two industrial estates, comprising Amata City Chonburi Industrial Estate and Amata City Rayong Industrial Estate, will be able to grow as targeted, with sales of approximately 1,000 rais.
Currently, investors are starting to gradually return after spending the first and second quarters of this year collecting and analyzing data while also going to the actual area to take into account the selection of land for the third and fourth quarters making it the period where the sale of Amata’s land began to take place.
Nevertheless, it is necessary to assess the situation of the Covid-19 epidemic as it would be an important factor affecting the investors’ decision to come to the country, Viboon told.
Better H2 2022
Viboon insisted that the second half of the year (H2 2022) is the high season for investment or sale of industrial estates, however, to be able to sell more or less depends on many factors, but one that stood out from others is the convenience of traveling to the selling area.
“During the 2 years of the Covid-19 pandemic, we (Thailand and countries around the world) were all under locked down, causing travel to be halted, so, if the policy to open the country still stays, the investment would not be affected because most investors are preferring a long-term investment.”
Viboon admitted that the fact that China still using the zero-covid policy and does not allow travel outside the country and some countries still maintain a strict policy on quarantine was causing difficulties for investors, anyhow, the company remained optimistic as there are also many fully open countries, especially, Japan which would result in a more convenient traveling for negotiations.
As for the inflation and the weakening of the Thai Baht, AMATA viewed as a short-term factor that should not be prolonged, so there could be some impact, but only little due to the incoming investment is a long-term one that focuses on production for export which accounts for 70-80% of entrepreneurs in AMATA, which would certainly benefit from the weaker Thai Baht.