Thai industrial estates forecast to expand despite pandemic.
In the wake of the pandemic, manufacturing in Thailand is proving its resilience. The Kingdom’s industrial estates will expand this year, according to global real estate consultancy Colliers, which said that government investment in infrastructure was giving investors confidence.
Phattarachai Taweewong, Director of Research and Communications at Colliers International Thailand, said that land sales at the estates would be better than last year. He expects sales and leases will grow by 5-10 percent on average, driven by the government’s investment. He described private-sector investment that it was in a “recovery trend.”
“With a development plan started in Thailand’s Eastern Economic Corridor (EEC) area, there will be several industrial estates being prepared for an upgrade to a special promotion zone to support targeted industries in the EEC,” Phattarachai said.
The EEC is Thailand’s showcase advanced development zone. A three-province area adjacent to Bangkok, the EEC is home to cutting edge and next-generation industries and is proving to be a favorite location among foreign investors.
Although the Kingdom’s outbreak was not severe, companies delayed their decisions to buy or lease land at Thailand’s industrial estates last year because of the Covid-19 pandemic.
While Thailand’s tourism industry has suffered from the containment measures to curb the pandemic, the Kingdom’s manufacturing sector has been able to cope by and large. The pandemic forced some countries to shut down their factories, affecting global supply chains. Thailand was able to keep its plants open, and some multinationals shifted some parts of their production to the Kingdom.
Photo courtesy of https://www.eabc-thailand.org/