The Amata Times
News from the World’s Leading Industrial City Developer – Q3 / 2016

Amata
VisionCustomersin Profile:
Bruce
McLeodThe World
We Live inCustomerNews

CSR atAmata

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Learn more about Amata at www.amata.com

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Streamlined:

The allure of ready built
industrial facilities

The new normal for businessHow connectivity is changing Asia’s trade landscapeTwo new forms of connectivity are radically altering Asia’s businessoutlook: the standardization defined by the AEC and TPP agreements, and the online retail marketplace made possible by the newgeneration of apps and devices. These shifts feed off of one another,and they both have extraordinary implications for the worlds ofmanufacturing, warehousing, and logistics, in particular.

activity and in e-commerce requires separate initiatives to meet the
new challenges created by the boom.

The appeal of e-commerce lies in its structure of allowing micropurchases to diverse destinations, with an emphasis on speed – theopposite of traditional logistics practice. Recent adaptations haveincluded multi-story warehouses located in big cities, and an UberWith 8% of the world’s population living in ASEAN, the region’s ization of delivery assignments based on algorithms that maximize
ongoing shifts to standardized trade rules and e-commerce mean driver efficiency. If e-commerce created this challenge, it can alsothat the business world at large has needed to undergo a massive help to solve it.
adaptation as quickly as possible. The interconnected economies of
the region have incentivized central production strategies based in Ripple effects are felt elsewhere in the retail economy, with shopping
countries like Thailand and Vietnam, on account of their relatively malls an example of another sector needing to adapt. With e-retailers
low costs for land, labor, and taxes.
like Lazada now providing the type of convenience that shopping
malls have long enjoyed, malls will need to invest in new features andThis surge in private sector activity has necessitated corresponding experiences if they wish to hold onto their customer base.
increases in infrastructure investment from the corresponding governments, as well as a dramatic increase in warehouse space (dou- To understand this pivotal moment in the business world, it is worth
bling in Thailand between 2011 and 2015). The simultaneous rise in taking a moment to consider the current state of affairs, as well as
Chonburi 884,431 / 24%

Current Warehouse Supply
by Province

Chachoensao 389,040 / 11%
Ayutthaya 366,548 /10%
Bangkok 311,228 / 9%
Rayong 178,736 / 5%

Getting production underway in a highly functional manufacturing space no longer requires long meetings with developers
or moving into used factories that were designed with anothertenant in mind. Amata’s ready built facilities are designed toprovide a flexible production space for a wide range of industries, and come in a host of different sizes all the way from 320
sq.m. to 5,000 sq.m. of floor space.
The ready built factories come with beautifully finished officespace, utilities, landscaping and seamless, top-quality service.
Add in the other advantages – flexible lease terms, quick setup
time, and no need to make investments in land – and yourcompany’s move to fully functioning production has neverbeen easier.
Ready built facilities can be found at Amata’s strategically located properties in both Vietnam and Thailand, whose proximity to major motorways, shipping ports, and airports means
significant advantages in transportation and logistics.
Standard Amata ready built facilities feature 850 sq.m. to
5,000 sq.m. of floor space, a live load of 2-3 tons per sq.m. A
security guard booth is set up, as well as a reception area, mezzanine office, restrooms on both floors, and a production areawith a shutter door.
A special variant on our standard ready built factories can also
be found at Amata’s OTA Techno Park (OTP) in Amata Nakorn Industrial Estate in Chonburi. These ready built factories
are designed in particular for Japanese SMEs with compact
Continue Streamlined on Page 2

Pathumthani 130,340 / 4%
Saraburi 37,494 / 1%
Samut Sakorn 19,516 / 0%
Khon Kaen 9,660 / 0%
Source: Knight Frank Thailand

Samut Prakarn 1,312,105 / 36%
Continue The new normal on Page 2

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Amata Times			

Q3 2016

The new normal
Continued from Page 1
how we got here, so that we may understand theforces that will continue to shape the landscape in
the future.
Large-scale global trade became truly viable thanks
to the invention and regulation of the modern
shipping container within the last fifty years, accelerating the need for the recent wave of standardized trade agreements that would allow companies
to take advantage of the new possibilities. Just as
upgrades of roads and rails allowed goods to betransported reliably overland, the new acceptanceof digital communication did the same with information, facilitating efficient coordination between
remote locations within a business. Each of theseindustry-wide leaps contains a common element
at its core: connectivity.
The connected world soon saw hundreds of industrial estates spring up across the region, with tax
incentives, reduced import tariffs, and streamlined
visa and work permit processes among the benefits
accorded to businesses located in various countries’
industrial parks.
Both Thailand and Vietnam are in position to gainas much as they give regarding industrial estates
and their tenants. Among the benefits conferredby the Industrial Estates Authority of Thailand are
the abilities of multinational investors in these estates to own their own land and also to do businesswithout taking a local partner. These and other attractive options have helped the country’s manufacturing scene thrive, turning it into ASEAN’s
leading automotive producer, as well as its leading
supplier of electronic parts and components destined for further processing in Asia.
Vietnam alone now features over 200 industrial
parks, whose 84,000 combined hectares outnumber the roughly 20,000 hectares devoted to similar
operations in Thailand. The country offers steadilydecreasing corporate tax rates (28% in 2008, 25%
in 2013, 22% in 2015, 20% now) and preferential

treatment for investment in high-technology industry, as well as other especially desirable sectors,
including infrastructural development, environmental protection, scientific research, and software
manufacturing.
This targeted use of incentives has played a partin transforming the country’s export production
from basic products such as crude oil, textiles,
and footwear, into its current growth into a sourcefor higher value-added products, as evidenced by
Samsung’s decision to invest USD 3 billion into
production there. This shift towards higher-end
production is part of the reason why Vietnam’s
GDP is on track to triple its GDP from USD 116
billion in 2010 to USD 350 billion in 2020.
The current state of logistics has Thailand ranked
third in ASEAN, behind Singapore and Malaysia
but ahead of many others, according to the WorldBank’s Logistics Performance Index (LPI). With
excellent roads and related commercial services,
but failing to make the necessary steps toward
quality rail development, the country remains oneof the top exporters of the region. Vietnam’s scoreis alongside that of Indonesia, with somewhat lessdeveloped roads and customs procedures.
Countries across the region are increasingly awareof the vital role that foreign investment plays intheir economic development, and, as such, theAsia of tomorrow is likely to be even better optimized for success in the world of trade.
The business world is at its best when it adapts
quickly to changing conditions, and pushes forward with innovative ideas to address real-world
needs. The new generation of industrial estates,
modern warehouses, and highly adapted logistics
companies dotted across the ASEAN landscapemake for an excellent example of utility createdthrough design, and the economic engine harnessed by these drivers of commerce will play a keyrole in business success for a long time to come.

Streamlined
Continued from Page 1

manufacturing needs, and a choice of floor space dimensions is available between 320, 640, 960, and
1,280 sq.m.
Tenants here will enjoy shared facilities and resources such as a Japanese help desk and Japanesespeaking staff, reception and common area, meeting and training rooms, as well as product display corners.
Occupying a total area of 15 rai, OTP is part of Amata’s continuing mission to adapt and innovate
according to the needs of a highly diverse global manufacturing industry.
For more information about Amata ready built facilities in Thailand, please call +66 (0)38 939 007
ext. 420, or send an email to tirakarn@amata.com or piyatida@amata.com (English speaking), or
krichaya@amata.com (Japanese speaking).
For OTA Techno Park inquiries, contact ota@amata.com.
For Vietnam, contact marketing@amata.com.vn, or call +84 61 399 1007.

Amata Vision

Living Up to the Promise of the AEC
By Dr. Surin Pitsuwan Chairman of the Board
at Amata Corporation Public Company Limited
The new ASEAN Economic Community (AEC) was conceived as a competitive
economic platform for all of its member
states. To maintain our competitivenessagainst other countries or regions, suchas China, India and even Africa, the
AEC will have to be more knowledgedriven in our industries. This effort will
require massive investment from governments as well as foreign businesses, but
the rapid development within ASEAN isa testament to the lasting value that thisinvestment brings.
It’s crucial to note that the quality of FDI
is at least as important as the quantity.
With the globalized world now focusedon high-tech innovation, there is a perfect overlap between the skills needed intoday’s advanced economy, and the typeof education and infrastructure needed
to modernize entire societies. As hightech production comes to the AEC, it
provides incentives for the very types ofinternal advances that will put ASEAN
on equal footing with the rest of theworld in the decades to come.
By helping to bring in much-needed
FDI in advanced fields, industrial estates
like Amata ensure the establishment ofa well-educated workforce, a larger poolof managerial talents, training facilities,
as well as research and development services that have close connections with
universities and academic institutions
both domestic and international.
Amata continues to lead the way in pro-viding the necessary electricity, water,roads and other soft infrastructure suchas customs facilities, bonded warehouses, licensing agencies, and more. Amata
was among the first of its kind in ASEAN offering these services four decadesago, and we have since expanded tomany locations in Vietnam – with possible future sites in Myanmar and other
ASEAN member states.
Amata’s mission is to remain the best in
its class, leading the pack with innovative services to our foreign clients for along time to come. We provide much
more than just land for factories, by also
improving the quality of life for executives, managers, and workers in all areas. Here in Thailand, we are broadening our services into education, healthcare, sport facilities, technical training,
research and other incubators for innovation. We can proudly say we areproviding Thailand and ASEAN with acompetitive edge to achieve the vision of
the AEC.
Ultimately, lasting success comes when
expectations within the business community and the wider population areboth fulfilled. Production will always
be a key ingredient, but its benefits are
best experienced within a more holistic
vision of progress. Good governance,
far-sighted policy and further developments in education can help ensure thatthe majority enjoy the promised benefitsof integration, and share in the bright vision of the AEC as it looks ahead.

CONTACT US
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https://www.facebook.com/AmataCorp

www.amata.com

https://www.linkedin.com/company/amata-corp.-pcl

Email us at marketing@amata.com

Amata Timeswww.amata.com					

3Customers in Profile
Bruce McLeod, Director & General Manager
Fisher & Paykel Appliances (Thailand) Co., Ltd.
Finding out where the company belonged was a separate matter,and one that took much longer to resolve. Originally founded in
New Zealand, Fisher & Paykel enjoyed decades of prosperity before beginning to see itself out-competed on the world stage by giant multi-nationals that benefited from cheaper land, labor costs,
You won’t often meet a more friendly or good-natured business- and tax rates; preferential treatment from raw materials suppliers;
man than Bruce McLeod. As a man who often finds himself relo- and economies of scale in terms of production.
cating with his family – back and forth between New Zealand andAustralia, then out to Mexico, and now settling into Thailand – an With the future of the company in doubt, Fisher & Paykel opened
easygoing approach is important when building the human con- up factories in Mexico and Thailand to try to offset rising costs.
nections that help turn each new setting into a comfortable home. Its branch in Thailand has since become the main center of operations, with the factory in Mexico now primarily servicing theThose connections, together with a strong focus on achieving re- needs of the U.S. market. Even so, the company determined thatsults, have helped Bruce inspire a team of motivated and ener- long-term survival meant being absorbed into a larger entity, andgized employees who believe in their work. When discussing his in 2012, it was taken over by the Chinese manufacturer Haier.
approach to management and teamwork, however, he is quick to
acknowledge the values he learned from some highly influential Now able to enjoy the benefits of size, as well as having a reliablefinancial backer behind it, Fisher & Paykel has been able to renew
people in his life.
its commitment to research and development, leading to new inBorn and raised in New Zealand, Bruce singles out his uncle as novation.
someone he looked up to throughout childhood. While working
on the family farm, he learned morals and ideals from his uncle Bruce’s road to Thailand also went through Mexico, where he– as well as the importance of hard work. Bruce also credits his for- spent seven years managing the company factory and watching
mer boss at Fisher & Paykel for showing a level head for business his family immerse themselves into North American culture andsports. As for Bruce, golf is his personal sport of choice. He also
while always challenging his team to achieve more.
finds plenty of comfort in following his country’s rugby team, theA full thirty years after joining Fisher & Paykel as an engineer on All Blacks. “It helps if you know that your team is going to win
the factory floor, Bruce has grown into the role of leader and men- most of the time,” he says.
tor to other people. A large part of that job involves motivating his
staff constructively, just as his predecessors did. In practical terms, Fisher & Paykel has also found its formula for winning. By setthis means listening to other ideas, rewarding dedication, stick- tling on Thailand as its main source of production, the company
ing to deadlines, and encouraging an atmosphere of collaboration, is able to concentrate its key personnel, a mix of Thais and expats,quality, honesty, respect, and trust. It means making everyone feel in Rayong – and therefore invest in that location as its hub forlike they belong.
production.

The approach is paying off. With perhaps more new products introduced in the past year than in the previous five years combined,
the company is setting its sights on continually advancing its commitment to quality kitchen and laundry appliances, and leading
the field in efficiency and sustainability.

Founded in 1934, Fisher & Paykel manufactures
quality kitchen and laundry appliances. Theirproducts have won prestigious ‘Red Dot’ awards inrecognition of their excellence in design.
Employees: 3,300, including 1,500 in Thailand at
Amata City.
Product line: Active Smart refrigerators, AeroTech
ovens, DishDrawer dishwashers, Smart Drive washingmachines. The company also manufactures gas andelectric cooktops.
Market reach: Available in more than 80 countries.
Corporate Office: Auckland, New Zealand.
Parent company: Haier (China), acquired in 2012.
Community involvement: Participating in fundraisingefforts in Rayong, helping to clean up neighborhoodparks, visiting schools and giving talks to students.

The World We Live In
Adapt

If you read the news regularly or listen to conversations atbusiness conferences or Chamber of Commerce events, it
becomes clear that the outlook for the global economy ismodest at best. There is a distinct lack of optimism among
economists, business leaders, and government ministers. Indeed, many would call the current situation “gloomy”. Worldeconomic growth is only expected to be 3.2% this year, while
volatile oil prices, a dip in global consumption, and fears
about the Chinese economy all contribute to these somber
assessments of the economic outlook for 2016.
Thailand in particular seems to be headed for a tough year
economically: one of the worst droughts in modern memory
has profoundly affected the agriculture sector, Thai exports
have dropped year-on-year due to falling global demand, andgovernment infrastructure projects have been somewhat slow
to get off the ground.
So amidst all of this “doom and gloom”, how should businesses and individuals adapt and even thrive in such a seemingly stagnant global economy?
Some of the keys to success in an economic downturn, according to many investors and commentators, are planning,
preparation, and making strategic investments.
Individual consumers often react to economic strain by looking for “value-for-money”, improving their skills, and preparing for future opportunities. Companies can, and should, dothe same by looking for areas of strategic investment, maximizing efficiencies internally, and improving the experienceof their clients and customers.

The current Chairman, President, and CEO of JPMorgan
Chase states, “Companies that grow for the sake of growthor that expand into areas outside their core business strategy
often stumble. On the other hand, companies that build scale
for the benefit of their customers and shareholders more often
succeed over time.”

And there are a number of industries that offer potential
growth for companies in Thailand, and have been earmarked
by the government for tax and non-tax incentives this year.
These include smart electronics, digital and medical technologies, robotics, biotechnologies, aviation and logistics, andnext-generation automobiles.

Savvy investors also become more active when things are
not going well, as M&A can be a strong area of growth forcompanies that have the financial resources. The “Oracle ofOmaha”, Warren Buffett, famously says, “We simply attempt
to be fearful when others are greedy, and greedy when others
are fearful.” Seeing the “bright spots” is an essential skill whenit comes to evaluating prospects and potential in a gloomy
economy.

Finance Minister Tantirorawang recently told the Asian Development Bank, “Not only are we seeking to strengthen
growth, but we would also like to achieve growth with quality. For this reason, we will also try to put in place policies toencourage green consumption and green investment in linewith the widely recognized Sustainable Development Goals.”

As in all seemingly dire situations, the news about the global
economy is not all bad. In fact, there is reason for hope. In
China, GDP grew by just 6.9% in 2015, its lowest rate in 25
years, but domestic consumption is up. India’s economy isexpected to grow by 7.3% in 2016, and there are some signs
that the U.S. economy is moving in the right direction, with
April retail sales seeing the biggest increase in over a year.
Even for the Thai economy, there is reason for optimism. According to Finance Minister Apisak Tantirorawong, growthin 2016 is still expected to reach 3%. This will be fuelled by
tourism, with income projected to be 1.5 trillion baht (upfrom 1.4 trillion last year), and by public spending. Recent
reports also indicate that luxury brands are still strong in theKingdom, and overall private consumption appears to be improving.

With its experience in manufacturing and high-tech, Thailand is also well placed within ASEAN to be a leader in ecommerce, FinTech, and the Internet of Things (IoT) industries. The growing middle class in both domestic and regional
markets makes these service sector industries a perfect opportunity for investment. With the right combination ofprivate sector investment and government incentives, theseindustries could lead to increased GDP growth and enhanced
confidence in the Thai economy.
A gloomy economy doesn’t have to be bad for an individual
or for a company. In fact, being able to adapt to a stagnant
or depressed economy has been the reason for many individual fortunes and business success stories over the years. All ittakes is being ready for the opportunity when it comes along.
As the Roman philosopher Seneca reminds us, “Luck is what
happens when preparation meets opportunity.”

4

Amata Times			

Customer News
Amata Vietnam

Q3 2016

Amata Cares: CSR
Amata Thailand

Amata Vietnam

Asahi Kasei Homes Group opens
its first overseas production plant
Mr. Koki Kaneyuki, General Director of Asahi
Kasei Jyuko Vietnam Co., Ltd., receives a giftfrom Ms Pham Thi Thanh Huong, Vice Presidentof Amata (Vietnam) Joint Stock Company

The grand opening ceremony of Asahi Kasei
Jyuko Vietnam Co., Ltd. group’s first overseas
plant was held on May 18th. The company isa joint venture of Asahi Kasei Homes Groupand Asahi Kasei Engineering, among Japan’s

biggest construction materials manufacturers
San Steel Industries and Yamato Koki. Located on a plot of 2 hectares, with an investmentof approximately USD15 million, the factory
produces steel frames with an annual output
capacity of 7,000 tons.

www.asahi-kasei.co.jp

Muro Tech Vietnam Corporation
holds ground-breaking ceremony

Amata City dedicated World Environmental
Day activities to the honor of H.M. King Bhumibol Adulyadej, who is this year marking his
70th year on the throne as the world’s longestreigning monarch. In H.M.’s eyes, “life should
return to the forests.” This was, therefore, thetheme for Amata and the 500 participants fromfactories, government agencies, and schools
who participated in the tree-planting exercise.
It is not only about increasing the green spacein and around the industrial estate, but also
about re-establishing Mother Nature’s integrityby bringing people from different communities
together to do good. Amata planted some 2,000
trees that day.

Mr. Hideki Fujita, General Director of
Muro Tech Vietnam Corporation, Ms PhamThi Thanh Huong, Vice President of Amata(Vietnam) Joint Stock Company, andother VIPs attended the ceremony.

On May 30th, Muro Tech Vietnam Corporation kicked off construction of a new manufacturing plant with an auspicious groundbreaking ceremony. It is a subsidiary of Muro
Corporation Japan. Muro produces over
18,000 auto parts that are indispensable for
automobiles to run safely, used by eleven major
Japanese automakers. Further, Muro invented
the Vislider, a system that automates the taskof screw-driving. Besides Japan, Muro has
manufacturing plants in the U.S., Canada,
Thailand, and Indonesia. The Vietnam factory, an investment of about USD4.7 million, will produce automobile parts for engines, transmissions, and axles, as well as
computer parts and precision parts.
We would like to extend our heartfelt congratulations to Muro Tech Vietnam!

www.muro.co.jp

South Korean Hansungbolt
signs a deal with Amata Vietnam

Kim Do-Joon, President of Thai Hansungbolt Co.,
Ltd, and Mai Lieu Ngoc, Marketing Executive,
Amata (Vietnam) Joint Stock Company, present
the signed agreement.

Hansungbolt Vina Co., Ltd. was established as a subsidiary in Vietnam of
Hansung Bolt Co., Ltd., Seoul, South
Korea. It entered into an agreementwith Amata (Vietnam) Joint Stock
Company for the lease of land to build
a new manufacturing plant. Hansung
specializes in the making of bolts,
screws, and nuts.
We cordially welcome Hansungbolt
to Amata City Bien Hoa!

Deputy PM chairs grand openingof Posco-Thailand Coated Steeltive steel plates last years, accounting for ten
percent of the total global need of automotive steel plates. With the newly establishedautomotive steel plate plant in Thailand, theKorean steelmaker aims to sell over 9 million
tons of it this year and more than 10 million tons a year starting from 2018, it added.
Thailand’s Deputy Prime Minister Tanasak Patimapragorn and some 200 officials attended the
grand opening celebration of Posco-Thailand
Coated Steel Company at Amata City industrial
estate, Rayong. It is Posco’s first automotive steel
plate plant in Thailand with an annual capacity of
450,000 tons, an investment of US$300 million.
Posco is Korea’s biggest steelmaker; the company sold about 8.7 million tons of automo-“As a hub country for the ASEAN (Associationof Southeast Asian Nations) Economic Community that was launched last year, Thailand isbecoming the vehicle production base and thecenter of the consumer-electronics industry inSoutheast Asia,” said Posco Chairman and CEO
Kwon Oh-joon in his opening speech at thecompletion ceremony. “With the newly completed plant, Posco will do the best to become atotal solutions partner for Thailand with differentiated products and tailored solutions.”

Earlier this year, Amata attended the Environmental
Governance Award (Green Star Award) run by theIndustrial Estate Authority of Thailand. Seven Amata
customers – Oriental Copper, Suncall High Precision,
Transitions Optical, Amata B. Grimm Power 3, Yamaha Motor Parts Manufacturing, USUI International
Corporation, and Daikin Industries – received awards
for their efforts in the environmental governanceassessment program.

For World Environment
Day(WED) on June
5th, Amata (Vietnam) Joint Stock
Companyorganized an awarenessraisingprogramdemonstrating theimportance of environmental protection and care.
Since 2005, Amata has been organizing annual events on Environment Day. Aside fromplanting trees – several thousand have now beenplanted – Amata sponsors a parade, a fun quiz,and clean-up work.
“Go Green” was Amata’s theme for this year’s
WED. Prior to the day, Amata and membersof 22 customers from Amata City Bien Hoa
Industrial Estate planted 3,500 Melaleuca trees
alongside 1.3 kilometers of road.
The “Go Green” theme was not meant solely tohonor Environmental Day. The theme is alsomeant to carry an encouraging message to the
Amata City Bien Hoa community. That message is to stimulate businesses and individuals
to respect the environment through compliancewith environmental standards, to recycle waste,
and to save energy and natural resources for thelong term. Such sustainable thinking will help
us build a prosperous future.

Fujipoly expands into Amata Nakorn

Hirotoshi Ota, President, Fujipoly (Thailand)Co., Ltd., centered right, exchanges
the agreement with Amata’s Corporate
Marketing Officer Viboon Kromadit,
centered left.

A fully-owned subsidiary of Fuji Polymer Industries Company of Japan, Fujipoly (Thailand)Co., Ltd. has been well established in Thailand
since the 1990s and runs a manufacturing plant

north of Bangkok. With business growing, Fujipoly has recently entered into an agreementwith Amata Corporation PCL. for the purchaseof land at Amata Nakorn. Fujipoly is a leader
in producing Silicone Rubber Products, such as
thermal interface materials, silicone extrusion
products, and other silicone parts, such as tubes,
check valves, O-rings, tapes, and others, mainly
serving the automotive industry.
Fujipoly’s new factory is being built on a plot ofover five rai.
We would like to cordially welcome Fujipoly to
the Amata family!

www.fujipoly.com

Boaifeng Biotechnology
opens Thailand branchcysts in Asia. Artemia are tiny eggs, serving asliving food in agriculture and aquatic farming
industry; in Thailand, in particular, it is usedby shrimp farmers. Boaifeng Biotechnology(Thailand) Co., Ltd. is located at Amata City
industrial estate in Rayong. The new factory cancultivate and process 500 tons of artemia cysts
annually. Boaifeng’s headquarters and three
production facilities are located in China andKazakstan.
Second from right: Mr. Zhijun Gao,
Owner Boaifeng Technology

Boaifeng specializes in the production of artemia cysts and is the largest producer of theseAmata wishes Boaifeng Biotechnology every
success to come!

www.bafsw.com+66 (0)38 018 257