Disputes over industrial land zoning in the Eastern Economic Corridor (EEC) and a resulting price uptick could discourage foreign companies from investing in Thailand, says the Industrial Estate Authority of Thailand (IEAT).
Up to 40 new industrial land development projects, covering 10,000 rai of land, are delayed because development is in areas not primarily categorised for industrial purposes under town planning laws.
These projects include the expansion of existing industrial estates and the establishment of new ones.
"Industrial estate developers cannot develop land to serve foreign entrepreneurs who want to buy land for new investment or business expansion," said Sumet Thangprasert, acting governor of the IEAT.
The authority is discussing the problem with industrial estate developers and the EEC Office to determine a solution.
"We need to speed up efforts to deal with the issue because many foreign investors are postponing their investment decisions in Thailand," said Mr Sumet.
Companies in the printed circuit board and smart electronics sectors are delaying their investment pending clarity on land use as these businesses need large amounts of land, he said.
"The government is concerned the investors will eventually decide to find other investment destinations in neighbouring countries," said Mr Sumet.
The IEAT wants to make the targeted land ready for development this year, holding talks with officials from the Department of Public Works and Town and Country Planning on the possibility of changing the land status in town planning law, he said.
This will be an uphill task because the change involves 18 legal steps and usually take years before completion, said Mr Sumet.
Land prices in the EEC is another factor that may cause investors to carefully plan their budget spending. Undeveloped land prices in some areas soared from 2 to 10 million baht a rai as a result of speculation, he said.
The IEAT targets selling 8,000-10,000 rai in its industrial estates this year, up from 6,000 rai last year, as investors are expected to relocate their production facilities here to avoid the impact of the trade war.
