Amata VN Plc expects revenue from its operation in Vietnam to reach 1.4 billion baht this year, well above last year's 800 million baht, says president and chief executive Somhatai Panichewa.
The subsidiary of SET-listed Amata Corporation, Thailand's biggest industrial estate developer, has been granted a licence by the Vietnamese government to develop an industrial estate in Halong in the north as well as others in Long Thanh and Bien Hoa in the south.
The company expects investors to start buying land in its industrial parks as soon as its first 600 rai of 650 rai of land in Amata City Bien Hoa is up for sale.
The company plans to develop the other 60 rai as commercial and residential areas by 2021.
"The company expects this year's total revenue to reach the target of 1.4 billion baht. The revenue should come from the industrial estate in Bien Hoa, where the strong potential of the growing economy is expected to attract more investors to start investing there," Mrs Somhatai said.
Amata VN is also negotiating with a Japanese investor interested in investing in Vietnam. Negotiations are expected to reach a conclusion by the third quarter when Amata is expected to sell up to 50% of its total land available there.
"Most customers of Amata VN are Japanese companies, particularly those in packaging, electrical and electronics and garments. They are new customers who have never invested in Thailand," Mrs Somhatai said.
Amata VN has 50,000 rai of land available in Vietnam. Of the total, around 3,400 rai is already developed and ready for sale.
Amata VN is a holding company involved in industrial estates and related businesses in Vietnam.
The company has been investing in Vietnam for nearly 20 years and was the first foreign company to start investing in industrial estates in the neighbouring country.
It has allocated an investment budget of US$1 billion to invest in industrial estates in Vietnam this year. It has spent $200 million on developing land to serve investors there.
Amata VN expects Vietnam's election on Sunday will help boost investment and attract more foreign investors to launch projects there.
The Vietnamese government forecast Vietnam's gross domestic product will grow by 7% this year. Its growing economy will be a positive influence to attract foreign investors to buy more land and increase Amata's revenue.
In the first quarter of this year, Amata VN posted revenue of 201 million baht thanks to sales of land in Bien Hao industrial estate.
As a result, the company had a net profit of 46 million baht in the first quarter.
Mrs Somhatai said the company would still focus on Myanmar, where the economy should grow strongly with an opportunity for the company to invest in the industrial estate sector, especially in the Dawei megaproject.