Laos trails many of its ASEAN peers on several fronts, including foreign investment in local real estate. That is set to change, however. Thai developer Amata announced plans to build a USD1 billion industrial estate in Laos as the company looks to scale up its overseas activity.
The Amata Smart and Eco City will be located in northern Laos with construction expected to begin shortly. It will focus on the company’s strengths: logistics and the industrial sector. The firm has already been granted a concession to develop the project on a 410-hectare site.
“The Amata Smart and Eco City Natuey project will start construction early this year, with a potential for expansion to 200 square kilometers [20,000 hectares] in the following phases,” Amata Chairman and Chief Executive, Khun Vikrom Kromadit, told the Bangkok Post. “The industrial complex will become a model for modern industrial parks, with energy-efficient infrastructure and sustainable environmental management.”
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While regional, cross-border real estate investment does happen in Southeast Asia, Laos hasn’t seen much of this action. Singaporean developers have been active in Cambodia, Vietnam and Myanmar for instance. Amata also has projects in Vietnam in addition to its Thailand operations.
However, Laos’ small size, limited growth and murky regulations have seen most firms remain on the sidelines. That being said, the Thai developer saw an opportunity and is moving full steam ahead to build an industrial estate in Laos. Khun Vikrom the project should boast the country’s GDP while bringing economic prosperity and sustainability.
The Amata Smart and Eco City is expected to help international investors in the logistics and warehousing; machinery; rubber and plastic; food and beverage processing; and chemistry and pharmacy industries.
It also announced that cooperation to support foreign trade and investments was being sought with multinational companies and governments from China, Japan, Singapore and Thailand expected to promote the industrial estate in Laos.
