Amata eyes big increase in clients

Amata eyes big increase in clients

Industrial-estate developer Amata Corp aims to expand the number of factories at its parks to more than 1,000 and contribute 10 per cent of gross domestic product within the next three to five years, CEO Vikrom Kromadit said.

Published on January 8, 2008

The group operates Amata Nakorn and Amata City industrial estates in Chon Buri and Rayong respectively, with a total land area of 40,000 rai.

About 20,000 rai have been developed while another 10,000 rai have been set aside for new developments.

"We now have about 600 factories operating in our estates. They contribute about 7 per cent of the country's GDP. We expect to increase that number by more than 100 factories per year," Vikrom, 55, said in a recent exclusive interview with The Nation.

"We have set a target of attaining more than 1,000 factories in three to five years, which should contribute 10 per cent of the country's GDP," he said.

Vikrom spends most of his time at his house in Khao Yai. "I spend 11 days out of every two weeks at my house in Khao Yai to finish my writing works, as well as deliberating ideas to help resolve challenges at my company."

He published two books last year and is planning four new titles for this year.

"We have a programme to promote young blood among our staff. We will encourage senior staff, aged more than 50, who have worked with Amata for more than 10 years to resign and set up their own companies.

"We will first invest in these firms and sell our shares back to them after they are up and running after three or five years," he said, adding that by doing so, Amata can reduce its senior staff members and hire younger workers.

Amata Holding has 20 subsidiaries, including Amata Power, which generates and sells electricity.

"We have a policy to grow at the same rate as the national GDP," he said.

Vikrom suggested the new government should implement a policy that fully opens up the country to foreign investment.

The current policies are too protective and are keeping out many investments that can benefit Thais, he said.

Over-protection weakens Thailand's ability to compete, he said. Worse, it promotes an over-dependence on government subsidies.

"Of late, we have not fully opened ourselves to foreign investors. In turn, they have shifted capital to other countries," he added.

"We have lost many opportunities as local investors alone cannot bear the full cost of large-scale projects."

Vikrom said China had more than US$1.5 trillion (Bt50 trillion) in reserves. About $1 trillion of that comes from investment capital from abroad.

China has also set up sovereign investment funds similar

to Temasek Holdings in Singapore, which in turn spreads risk by buying into top global companies.

"Reshaping the country's policy is not an expensive task," said Vikrom, adding that the new government can quickly stimulate GDP growth by encouraging foreign investment.

In doing so, the government need not provide costly or risky loans.

In return, Thais obtain technology transfer and learn valuable management skills.

Vikrom warned the new government not to be overly aggressive, which could create a social divide.

Instead it should promote unity, as a harmonious nation is a most powerful force, pulling the country in a common direction, he said.

"The future of Thailand rests with a small group of decision-makers whose priority should be to forge understanding and harmony among all Thais, so that we may all share a better tomorrow."

The new government needs to be transparent, he warned, as corruption only drains a country's wealth.

China and Vietnam are examples of countries that have expanded solidly because their people are fiercely united.

Similarly, he said, the price that a divided people pays in an escalating conflict is that they bring down their country.

"I expect Thailand's GDP to grow at least 6 per cent this year, provided that people perform their tasks diligently," he added.

The well-being of a country rests with capable state workers, he said, but government officers need to show greater enthusiasm for their jobs as they are role models for many workers under them.

An improvement in Thailand's workforce must be accompanied by an improvement in the country's infrastructure, he said.

Most pressing is the need to make Bangkok a cleaner, more efficient, less polluted and more efficient city, he urged.

Bangkok must match the world's top financial cities such as Zurich, which is clean, free of pollution and provides good public transport and other services.

Bangkok needs to be safe from crime, well managed and run by capable administrators.

"At this moment in time, it appears too many Thais are self-centred. They care little about the welfare of society as a whole," he said.

This must change, Vikrom said. "We need to help build a more civic-minded society."

He added that today's economic problems - such as high petrol prices - had been brought on by external forces beyond the control of the country. But companies can do their part to offset higher costs by reducing waste and become more cost-efficient.

"The new government's priority should be to raise GDP, which needs to be higher than inflation and interest rates. It also needs to boost the country's cash reserves.

He warned that unless GDP can overtake high inflation rates, which are pushing up the cost of living and hurting low-income groups the most, the economic situation would remain bleak.

Vikrom said he would like to see GDP reach 8 per cent a year, just below India's growth rate.

Kwanchai Rungfapaisarn

The Nation