Domestic and international operators and investors are increasingly paying attention to global trends that are more concerned with environmental, social, and governance (ESG) issues, and the changing laws that affect business operations. Including those in the public sector who are more interested in the impact of business activities on their health and well-being. Therefore, the Company may lose business opportunities and competitiveness if it is unable to develop products and services that can meet the changing needs of both current and future customers, or that are in addition to their basic needs, such as customer needs related to climate change, energy, and greenhouse gas emissions. In addition, the high-performance newcomers in the service and utilities businesses lead to intense competition in the market, which may cause the Company significantly lose revenues from products and services.
The Company has a wide range of customers who are leading companies in various industries. The close engagement with customers has resulted in the Company being able to monitor and be aware of the changes in customer needs, increasing the opportunities to develop its products and services to meet its customers’ needs swiftly and comprehensively, along with the development of technology and innovative products and services to effectively serve the new S-Curve industries and increase the long-term competitiveness. In addition, having products and services that use green technology innovations will give the local communities confidence in the Company's operations and enable them to coexist with the industry in the long term.
Therefore, the Company has been focusing on the development of products and services to respond to the needs and problems of its manufacturing customers and to support their business success in the long run, as well as, to respond to the needs of direct stakeholders, who are affected by the Company's business operations, in order to gain good experiences in coexistence with the industrial sector and create mutual economic, social, and environmental values.
The Company has established a “Product & Service Development Framework” for maximizing the value of products and services to its customers and all other stakeholders. The framework emphasizes stakeholder engagement through various approaches in order to survey, assess, and analyze the needs of both current and future potential customers either regionally or globally, together with trend and megatrend analysis, which are significant to the real estate development business. Then use the information obtained to assess the impact, urgency, and level of importance to identify the main objectives of product and service development; in the meantime, prepare for market readiness, collaboration with strategic business partners, and strategic innovation management to design products and services that create competitive advantages, including opening up to listen to the opinions and recommendations for continuous development. By developing a SPRINT team that consists of talented and creative employees to jointly accelerate the development of products and services and meet the customers' needs more precisely.
The Company has established the Customer Communities to serve as a major channel to engage with the current customers operating in AMATA City industrial estates for good relations and communication to explore customer opinions, needs, and concerns. The information obtained will be taken into consideration in order to develop, improve, and extend the products and services. The results of 2022 performance are as follows:
Objective: To serve as a business communication center for Japanese companies in AMATA City Chonburi and AMATA City Rayong Industrial Estate, where 63% and 29% of customers are Japanese, respectively.
Member: The AMATA Japanese Society had the total of 235 consists of 190 and 45 factory members in AMATA City Chonburi and Rayong, respectively.
Good quality of after sales services
Hotel Nikko Amata City Chonburi
Objective: To be a center for coordinating the activities in human resource management in order to promote study and research and share of the useful academic knowledge in human resource management among factory members in AMATA City Chonburi and other organizations including government entities.
Member: There were 325 factory members. HRA organized 5 meetings on professional human resource management.
Environment and environmental laws and regulation training service:
Efficient Waste Management Service:
Objective: To advise and provide support and coordination to the members, employers, employees, government agencies and other organizations. This will lead to success in handling problems in safety, occupational health and working environment. ASEG aims to ensure that all workplace have safety, occupational health and working environment standards in accordance with the law.
Member: There were 215 members in AMATA City Chonburi.
Risk and Crisis Management
Environmental and Safety Training service
Objective: To be a center for sharing useful information especially human resources management information and providing consultation and guidance about the operating business in accordance with legal requirements among the factories in the AMATA City Rayong Industrial Estate.
Member: There were 117 factory members, which is 28.2% of all factories in AMATA City Rayong and organized 5 meetings in 2022.
Risk and Crisis Management
Evacuation Fire Drill Training service
Waste Management Consulting Service
In addition, in 2022, the Company collected information by in-depth interviewing with customers who are representatives of various industries in order to use the insights to improve the Company's strategies and develop products and services that efficiently meet customer needs. The Company found that the increasingly environmental crisis, especially climate change, has caused global awareness in addressing environmental issues in all sectors to reduce the probability and severity of negative impacts on the environment. This has become a driving force for government agencies in many countries worldwide to declare and enforce more significant policies, regulations, and new laws to prevent and control negative environmental impacts. Factory operators in the AMATA Industrial Estate, who are important manufacturers for leading global companies and have routine import and export activities to various countries, must comply with the regulations and laws of each country and strictly adhere to the environmental policies of their parent companies. Therefore, there are significantly increasing demand in circular products and services that help reduce natural resource consumption and greenhouse gas emissions.
The Company is committed to becoming a Smart City developer in order to respond more efficiently to global emerging trends and risks, including business development that supports economic, social, and environmental challenges. This also includes meeting the changing needs of future lifestyles in the post-COVID-19 era, also known as the "Next Normal". To achieve this goal, the Company has started developing new investment zones with international standards and focus on social and environmental development. Additionally, the Company aims to develop a quality workforce to make AMATA Smart City a perfect investment area in the Eastern Economic Corridor (EEC) and a learning center in the region. By doing so, the Company hopes to create economic growth in the region and add economic value to Thailand. The concept of AMATA Smart City will begin with the development and leveling up of the Company's current industrial estates; namely, AMATA City Chonburi Industrial Estate, and extend to other industrial estates of the Company in the future.
The Company has foreseen the opportunities in CLMV countries where its strategic locations have high potential in connection to global supply chains and are now in the focus of leading investors. Besides, the CLMV’s policies promoting regional economic development have become more connected and have resulted in a high potential to support continuous economic growth in the future. The Company, therefore, has expanded its Eco-Industrial City business to CLMV countries by implementing its expertise and experiences in city development and introducing its AMATA Smart City model to open new business opportunities in some of those countries.
In the past few years, Vietnam has been distinguished by increasing foreign direct investment (FDI) in the manufacturing sector, particularly from investors in China and Japan. Although Vietnam's Gross Domestic Product (GDP) dropped during the early stage of the COVID-19 pandemic due to the slowdown in manufacturing investment, effective epidemic management and control in early 2021 helped the manufacturing investment ecosystem in Vietnam rebound, leading to a GDP growth of more than 8% in 2022. According to the World Bank's forecast, Vietnam's potential Gross Domestic Product (GDP) is expected to continue expanding significantly from 2.6% in 2021 to 6.3% in 2023. Vietnam is therefore one of the countries in the Greater Mekong Region that is targeted for development projects and investments by the Company.
The Company has been investing in Vietnam since 1994, giving them 28 years of investment experience in the country. Currently, the Company has developed six industrial estates and cities in Vietnam based on the concept of “Perfect Smart City”, covering a total of 2,616 hectares or 16,350 rai of land. All of these lands have been approved for Investment Registration Certificates in the southern and northern regions of Vietnam. In 2022, the Company's projects in Vietnam, which are managed by AMATA VN Public Company Limited, experienced growth due to the expansion of the technology and clean energy industries which were positively affected by changes in consumer behaviors during the COVID-19 crisis as well as an increase in purchasing power due to the overall economic growth of domestic market.
Following the announcement of China’s Belt and Road Initiative (BRI) in 2013 to enhance the connectivity of the Chinese economy with other regions of the world, Laos is one of the land routes connecting the transportation of goods from Kunming in Yunnan, China through northern Laos to Southeast Asia via a 1,035-kilometer-long medium-speed rail. This has resulted in investment in infrastructure development, particularly the China-Laos railway from Boten on the border between China and Laos, to the capital Vientiane. This Vientiane-Boten railway was officially operated since December 2021.
The emergence of the China-Laos railway presents a significant opportunity to connect the high potential economies of both China and Southeast Asia. This has inspired the Company’s vision to develop a perfect city that creates opportunities for all stakeholders. As a result, AMATA City Lao Sole Co., Ltd. was established in 2020 to develop a Smart and Eco City in Laos. In each project, it is possible to connect to Lao’s electricity grid, with a source of renewable energy production (hydropower) and the development of a smart network within the project to fulfill the business’s renewable energy demands. It is expected that operations will commence in early 2023.
However, in developing business in Laos, the Company has recognized the importance of maintaining the quality of the environment in conjunction with local economic development. Therefore, the Company has adopted several environmental care and management models used in project areas in Thailand to be applied to the Laos project. This includes water and waste management policies, green area development and management, and stakeholder engagement to achieve balanced growth. The Company has initiated the idea of encouraging companies who will have operations in this industrial estate to contribute to environmental impact reduction and nearby forest protection by allocating their profit to these activities that also promote the participation of companies within the project according to the Company's ALL WIN business philosophy.
Innovation is, therefore, an important mechanism to drive the Company to grow sustainably. Consequently, the Company has prioritized the innovation development in the organization, starting with the development of innovative thinking skills, knowledge, and competency of Company’s personnel, as defined in the attributes of the AMATA DNA, regarding innovative creativity and trying new ideas for development, which are also applied as indicators of employee performance evaluations at all levels.
In 2022, the Company has developed a strategic innovation management process to enable its innovation management to support its business strategy, create value-added products and services, enhance work efficiency, minimize negative environmental impacts, and leverage the quality of life of all groups of stakeholders.
In this regard, the Company has two approaches to acquiring business innovations (INPUT), which are 1) collaborating with strategic partners to develop innovations (EXTERNAL) and 2) promoting its employees to be the creators of business innovations (INTERNAL). The obtained innovations, either concepts or already implemented projects, will be supported with the resources required for further development to create additional value before delivery to customers and stakeholders.
The Company has set the strategies for the development of smart cities and supports projects through its strategic business partners in order to rapidly achieve high-quality business development. The Company has, therefore, collaborated with the leading companies and organizations, both in Thailand and abroad, who are the leaders in various fields, to develop new business projects under the AMATA Smart City concept.
The cooperation with these leading companies and organizations not only concretely drive a smart city under various projects, but also be beneficial to Thai entrepreneurs in related industries in learning the concepts of new technology from foreign experts through the technology transfer process and being able to extend the results for research and development of their own technology, which will become an important mechanism to help drive Thailand forward sustainably.
The Company has promoted and given opportunities to employees of all levels to demonstrate their potentials and create innovations for business, society, and the environment, as well as, to engage in the development and improvement of Company's work procedures. Every year, the Company will organize an “Innovation Project & Idea Contest” as a stage for the employees to show their potential and present their ideas to develop the products, services, and effective team collaboration in the workplace.
In 2022, the Company organized the "AMATA INNO Awards 2022" competition, in which potential projects were considered and selected by a committee consisting of the Chief Executive Officer and senior executives for future extension and development. The competition aimed to motivate employees to submit projects and innovative ideas, with a total prize of 2.5 million baht, supported by a private fund from the AMATA Foundation of 2 million baht. This year, there were 14 teams and a total of 27 entries, including 6 innovation projects and 21 innovation ideas, that participated in the competition.
According to the innovation initiatives implemented between 2020 and 2021, the Company saved its operating expense totally 11.93 million baht. Three of them were environmental projects aiming for environmental impact reduction and six of them were initiatives for social contribution.