Vietnamese government recently grants the third investment certificate to develop the Amata Township Long Thanh on a 753-hectare land to develop city for residential, shopping center, commercial and service complex, hospital, and education center to welcome foreign investment in Vietnam.
Mrs. Somhatai Panichewa, Director and Chief Executive Officer of Amata VN PCL. (AMATAV), reveals the progress of the plan to develop a perfect city under Amata Long Thanh in southern Vietnam, that the Company has received the third investment certificate from the Vietnamese government to develop Amata Township Long Thanh covering 753-hectare land for residential, shopping center, commercial and service complex, hospital, and school. The total investment is targeted at approximate USD 300 million with the first phase investment about USD 9.2 million on an area of 333-hectare land with the expectation to welcome investors starting from year 2018.
Overall, the Company has total 4 projects planned under Amata Long Thanh with the total area of 1,270.39 hectares. Previously, the Vietnamese government has already granted investment certificates for two projects covering 465.4 hectares. The projects are 1. Amata City Long Thanh (High-Tech Industrial Park) covering 410 hectares to accommodate environmentally friendly high tech industries that do not create pollution and use advanced technology in the production process for value added products. This project expects to start in 2017.
2. Amata Service City Long Thanh 1 on a 55.4-hectare land to develop residential buildings, commercial area and areas for logistics and warehouse business is expected to start construction in 2018 in order to accommodate investors in 2019. Another project, Amata Service City Long Thanh 2 on a 51.9-hectare land is expected to receive the investment certificate within quarter 3 of this year. The total four projects are expected to have investment budget of USD 640 million.
Ms. Somhatai indicated that Amata City Bien Hoa in Dong Nai province is the first project that Amata started its investment in Vietnam in 1995. The projects has brought investors from more than 21 countries to establish factories. The industrial area under Amata City Bien Hoa is expected to be fully leased by 2019, resulting in the plan to expand its project to Amata City Long Thanh in Dong Nai province.
Vietnam has become an attractive investment destination due to the young labor force and the benefits received from several trade agreements including Trans-Pacific Partnership (TPP), Asia-Pacific Economic Cooperation (APEC) and ASEAN Economic Community (AEC). In addition, Vietnam is also entitled to receive the Generalized Scheme of Preferences (GSP) privileges with European Union which creates attractiveness for investors to use Vietnam as the production base for export. Therefore, Amata’s industrial estate in Vietnam will be the target destination for investment at present and in the future.