IEAT revises down expected sale of industrial land
The Industrial Estate Authority of Thailand (IEAT) has revised downward its forecast for sale of land in industrial estates across the country for the 2020 fiscal year (October 2019 to September 2020) to 2,000 rai from 3,500 rai owing to the Covid-19 pandemic, IEAT governor Somchint Pilouk said.
Though the sale of land in the first six months of the fiscal year was not badly affected by the outbreak, it is bound to feel the pinch in the second half, she added.
The contagion and subsequent lockdown have made it tough for potential customers to travel to Thailand to settle deals, while the related logistics system has also come to a near standstill.
Meanwhile, the IEAT has introduced measures to ease the burden on estate operators and factories, and is also considering slashing different annual fees for estate developers.
Anchalee Chavanich, president of the Thai Industrial Estate and Strategic Partner Association, put the decline in the sale of land in privately-run industrial estates to foreign investors, especially those from China, finding it difficult to travel to Thailand. Also, she said, some investors are holding off until the situation is favourable.
While the Covid-19 crisis has adversely affected some businesses, investment in other business like medical supplies and the health sector has expanded.
Anchalee estimated that the sale of land in private industrial estates will drop between 20 and 30 percent this year, though she believes the purchase of land for building factories will resume once things return to normal.
She added that the Board of Investment should restore investors’ confidence by launching new incentives to attract new investments as well as cut down on operating costs for investors in industrial zones, such as a reduction in land transfer and other related fees.
