Thailand’s Amata to develop industrial park near Yangon, seeking Japanese investors
NAYPYIDAW, NNA – Amata Corporation Public Co., Thailand’s leading industrial park operator, will develop a mega industrial park near Yangon in anticipation of large Japanese investments.
Amata and Myanmar’s Ministry of Construction signed a joint venture agreement in Naypyidaw on Friday on the $1 billion project, including related infrastructure developments, to attract manufacturers and boost the underdeveloped industrial sector in the emerging economy.
Yangon Amata Smart and Eco City Ltd. (YASEC), the joint venture, will undertake ground work on 80 hectares of the 800-hectare site in the initial phase as early as March. It plans to complete the first phase in five years, Amata said in a statement on Friday.
The planned park is located northeast of the country’s commercial capital Yangon, about a one-hour drive from both Yangon International Airport and the Thilawa Special Economic Zone, which is being developed by a public-private partnership between Japan and Myanmar.
Thai state-backed oil firm PTT Public Co. will build a 600,000-kilowatt gas-fired power plant to supply electricity to the industrial park and surrounding areas.
Some factories in the park named Yangon Amata Smart and Eco City are expected to commence operation in 2021, according to the Thai company.
Amid the lingering U.S.-China trade dispute, “We have already received enquiries from over 20 firms and they said they want to move in as soon as possible,” Yasuo Tsutsui, who has worked for Amata for 20 years and heads YASEC as managing director, said at a press conference in Naypyidaw, the country’s capital.
Amata operates five industrial parks in Thailand and Vietnam with around 1,300 tenants, 700 of which are Japanese companies, Vikrom Kromadit, chairman of Amata, told reporters at a signing ceremony in Naypyidaw.
The chairman said his company intends to attract many Japanese firms for the project. It plans to introduce more advanced environmental technologies in drainage, waste recycling and low-carbon emissions into the mega park than those in Thailand.
Amata holds an 80 percent stake in the joint venture, and the Department of Urban and Housing Development under the ministry owns the remaining 20 percent as it provides land as investment in kind, the statement said.
The Myanmar government estimates attracting $3.75 billion in foreign direct investments from manufacturers and creating at least 33,000 jobs during the first phase period, according to the statement.