Hemaraj Land and Development Pcl., one of Thailand’s top industrial real estate developers, is seeking permission to build two massive manufacturing zones in the central province of Nghe An, the provincial government’s website reported on Wednesday.
Located near each other in the southeast of Nghe An, one of the industrial parks will cover more than 2,000 hectares and another around 1,100 hectares.
Hemaraj plans to apply for licenses with the province’s authorities this July, according to the website.
On Wednesday Hemaraj also signed an investment agreement with state-owned Civil Engineering Construction Corporation No. 4 (Cienco 4) to co-develop other industrial parks in the province’s Dong Nam Economic Zone, the website reported.
Cambodia, Myanmar and Vietnam are the newly-targeted markets of Thailand’s warehouse developer WHA Corp, which acquired Hemaraj in November last year, for expansions over the next five years.
WHA reportedly plans to spend more than 32 billion baht boosting its activities at home and across Southeast Asia.
Amata Corp Pcl is currently the only Thai industrial park developer to operate in Vietnam with its first park opened in the southern province of Dong Nai in 1994. Amata is expected open the second complex also in Dong Nai next year.
Operating industrial parks is a hit-or-miss business in Vietnam. The country’s stable economic growth has been in large part dependent on these manufacturing hubs, but not all of them manage to be successful.
Latest figures from the government showed nearly 71 percent of 299 industrial parks around the country were operative as of September last year. They had 67 percent of their space filled up on average, up more than 2 percent from a year before.
In several central provinces such as Binh Thuan, Ninh Thuan and Ha Tinh, many industrial parks had less than 30 percent of their space filled up.