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Industrial estate boom to continue

By on Oct 10, 2012 in Property News

The Industrial Estate Authority of Thailand expects a good year in fiscal 2013 as land sales and rentals in the first 11 months of fiscal 2012 surged well past the full-year target.

The authority’s target was 2,500 rai for the 2012 fiscal year, but rentals and sales totalled 3,843 rai (615 hectares) in just 11 months, up 4.4 per cent from the same period a year before, said IEAT governor Verapong Chaiperm.

Of the total, 3,806 rai belonged to industrial estates and 37 rai to the IEAT. About 195 operators bought or rented the land. Of these, 40 per cent were Thai, 30 per cent Japanese, 15 per cent Chinese, 5 per cent American, 5 per cent Australian and 3 per cent South Korean.

Of total operations buying or renting land, 73.3 per cent, or 143 operations, were in the automotive industry, 20 per cent, or 39 operations, were in steel and other metal products, and 1.5 per cent, or three operations, were in rubber and plastic. One operation was in electrical appliances and electronics, Verapong said.

IEAT has set the fiscal 2013 target for industrial estates’ land sales and rent to be no less than 3,800 rai.

Next fiscal year, IEAT plans to set up industrial estates for the plastic industry and aviation.

It is also looking at establishing estates to deal with increased border trade expected under the Asean Economic Community, including in Chiang Khong district of Chiang Rai, Khon Kaen, Udon Thani and Nakhon Phanom.

In fiscal year 2012, IEAT approved establishment of ST Power Group’s Banbung Patana Industrial Estate on 1,739 rai in Chon Buri province. This estate is for the auto-parts, utilities and logistics industries, as well as processed agricultural products.

The authority also approved expansion of three industrial estates with a combined area of 482 rai. These were Eastern Seaboard Industrial Estate, Amata Nakorn Industrial Estate and Pinthong Industrial Estate.

Meanwhile, the Board of Investment (BOI) disclosed that 1,583 projects applied for investment promotion privileges for the first nine months of this year, up 21.6 per cent from the same period a year earlier. Total investment nearly doubled to Bt804 billion from the same period last year and exceeded this year’s target of Bt800 billion.

In September alone, about Bt121.8 billion worth of projects applied for BOI privileges.

Of total operations applying for privileges in the first nine months, 415 worth Bt237.4 billion were in services and utilities, while 397 projects worth Bt186.5 billion were in the automotive, machinery and metals segments. A total of 255 projects worth Bt104.8 billion were in electrical appliances and electronics while 214 projects worth Bt174 billion were in the petrochemical, paper and plastic sectors.

Of total projects applying for BOI privileges in the nine-month period, 1,057 were foreign direct investment, up 36 per cent year on year. Total combined investment jumped 70 per cent to Bt433.37 billion.

source : The Nation 6 October 12

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