AMATA Industrial Estate in Thailand is home to more than 1,400 manufacturers from 33 countries comprising a wide range of industries generating the 2019 Gross Domestic Product (GDP) of over 1.9 trillion baht, directly affecting the national economy and the distribution of economic value to various stakeholder groups.

The continuous development of products and services through innovation and technology on the Company’s strategic locations is, therefore, greatly important to its capability to respond to the needs of its customers and related stakeholders that have changed according to the time and global trends in responsibility of ESG impacts and also directly affect the sustainable growth of the Company.

Risks

The Company may lose the business opportunities and competitiveness if unable to develop its products and services responding to the needs of both current customers and future customers whose requirements keep on changing or increasing from their basic requirements.

In addition, the high-performance newcomers in the service and utilities business lead to the intense competition in the market which may cause the Company significantly lose its revenues from products and services.

Opportunities

The Company has a wide range of customers who are the leading companies in various industries. The close engagement with customers has resulted the Company to be able to monitor and 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.

Management Approach

The Company is determined to develop AMATA City Industrial Estates under the concept of a perfect city that creates values to all groups of stakeholders in accordance with the Company’s ALL WIN philosophy of which principle focusing on stakeholder centric.

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 support their business success in the long run, as well as, respond to the needs of direct stakeholders, who are affected by the Company's business operations, 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 stakeholders. The framework emphasizes on the 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 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; 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.

In 2022, the Company has set a goal to develop a SPRINT Team that consists of talent and creative employees to jointly accelerate the development of products and services and to meet the customers' needs more precisely.

Customer Engagement

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 strengthening the good relationship and communication in order to survey the opinions, needs and problems of customers. The results obtained will be considered to further develop, improve and extend the products and services. The results of 2021 performance are as follows:

  • Customer Communities

    Objective: To be a center in business communication with Japanese customers in AMATA City Chonburi and AMATA City Rayong Industrial Estate because 63% and 29% of the customers respectively are Japanese.

    Member: The AMATA Japanese Society had the total of 235 consists of 190 and 45 factory members in AMATA City Chonburi and Rayong, respectively.


    Customer Needs and Expectations

    Good quality of after sales services

    • Linking of technological and innovative solutions to support customer manufacturing.
    • Facilities and Residential area for increasing foreign customers in the industrial estate

    Our Response

    Hotel Nikko Amata City Chonburi

    AMATA together with Fujita Corporation Co., Ltd. and Japanese Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN), a Japanese government entity, have been developing Hotel Nikko AMATA City Chonburi, a four-star environmental-friendly hotel and facilities to support both Thai and foreign operators and investors in the eastern region as a residence close to workplace. The hotel is expected to operate in 2022.

  • Customer Communities

    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.


    Customer Needs and Expectations

    Good quality of after sales services
    Providing information and knowledge about laws and regulatory compliance in factory management

    Waste Management
    Real-time tracking of waste management route and information


    Our Response

    Environment and environmental laws and regulation training service:

    • The seminars on "Environmental management within the factory comply with laws and regulation."
    • Training courses "The development of safety officer: Supervisor level." Class 1
    • Online meeting on "flood prevention management and plans in AMATA City Chonburi Industrial Estate 2021."

    Efficient Waste Management Service
    AMATA Corporation PCL. and Siam Cement Group (SCG) have developed and implemented “Koom Kah Smart Manifest,” a digital application that will enhance Amata's smart waste collection system. It will promote sustainable recycling practices, in line with AMATA's concept of Circular Economy.

  • Customer Communities

    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.


    Customer Needs and Expectations

    Risk and Crisis Management

    • Providing the cleaning and disinfection services with standardized chemical disinfectants to assure the customers' employees in working at the safe workplaces during COVID-19 crisis.
    • Training courses that meet customer needs

    Our Response

    Disinfection Service
    Providing the cleaning and disinfection services with standardized chemical disinfectants to assure the customers' employees in working at the safe workplaces during COVID-19 crisis.

    Environmental and Safety Training service
    Training courses "The development of safety officer: Supervisor level."

    Online-training Service
    The Company provides various training courses and online trainings.

  • Customer Communities

    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 2021.


    Customer Needs and Expectations

    Waste Management
    Waste management consulting

    Risk and Crisis Management
    Integrated fire evacuation training and develop an emergency prevention plan


    Our Response

    Evacuation Fire Drill Training service
    Providing integrated fire evacuation training and develop an emergency prevention plan with customers.

    Waste Management Consulting Service
    Providing advice on managing various types of waste within the factory by experts to support and encourage customers to comply with environmental laws and regulations.

AMATA Smart City Development

The Company is committed to becoming a Smart City developer to more efficiently respond to the global emerging trends and risks including business development to support economic, social and environmental challenges, as well as, the changing needs of future customers in the New/Next Normal era by development of new investment zones with international standards, social and environmental development, as well as, development of quality workers in order to make AMATA Smart City a perfect investment area in the Eastern Economic Corridor (EEC) and to be a learning center in this region, as well as, to create economic growth in the region and the economic value for Thailand. The concept of AMATA Smart City will begin with the development and level 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.

Business development in foreign countries

The Company has foreseen the opportunities in CLMV countries where its strategic locations have high potential in connection to the global supply chains and now are in the focus of leading investors. Besides, the CLMV’s policies promoting the regional economic development have become more connected and resulted in being high potential to support the continuous economic growth in the future. The Company, therefore, has expanded its environmentally friendly 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.
Projects in Vietnam

In the past several years, Vietnam has been distinguished by the rising foreign direct investment in the manufacturing sector, especially by the investors from China and Japan.  Even in the early stage of the COVID-19 pandemic that Vietnam's Gross Domestic Product (GDP) was dropped due to the investment in manufacturing sector had been slow down,  the effective epidemic management and control in early 2021 had helped the manufacturing investment ecosystem in Vietnam rebounded during Q3 – Q4 of 2021 and according to the World Bank forecast, the potential Gross Domestic Product (GDP) of Vietnam was forecasted to grow from 2.6% in 2021 to 5.5% in 2022. Vietnam is, therefore, one of the countries in the Greater Mekong Region that we should keep an eye on because of their rapid economic recovery rate after COVID-19 crisis.

The Company has expanded its investment to Vietnam since 1994, which is considered to be 28 years of investment experience in Vietnam. Presently, the Company has developed 6 industrial estates and cities under the concept of “Perfect Smart City” in Vietnam, covering a total of 2,616 hectares or 16,350 rai of land already approved by the Investment Registration Certificates in the regions of Southern and Northern Vietnam.  During 2021, the Company's projects in Vietnam, which are managed by AMATA VN Public Company Limited, have grown up due to the expansion of the technology and clean energy industries that have been positively affected by the change of consumer behaviors during the COVID-19 crisis.  In addition, AMATA VN Public Company Limited has joint ventured with local Vietnamese companies to establish AMATA Service City Long Thanh 1 Co., Ltd. and AMATA Service City Long Thanh 2 Co., Ltd. in order to develop commercial city projects to support the expansion in the current Long Thanh Region.

Project in Laos P.D.R.

The emergence of the China-Laos railway has provided a great opportunity to connect the high potential economy of both China and Southeast Asian Region inspiring the Company’s vision to develop a perfect city that creates opportunities to all groups of stakeholders.  Hence, the Company had foreseen many potentials of business development in Laos P.D.R. resulting to the establishment of AMATA City Lao Sole Co., Ltd. in 2020 to develop a Smart and Eco City in Laos which is expected to be able to operate in early 2022.

However, for business development in Laos, the Company has focused on the importance of preserving the quality of environment along with the local economic development. The Company has, therefore, adopted the environmental care and management models of several project areas in Thailand to be applied for the project in Laos such as water and waste management policies, development, green area management, and stakeholder engagement to create a balance of growth according to the Company's ALL WIN business philosophy.


The emergence of the China-Laos railway has provided a great opportunity to connect the high potential economy of both China and Southeast Asian Region inspiring the Company’s vision to develop a perfect city that creates opportunities to all groups of stakeholders.  Hence, the Company had foreseen many potentials of business development in Laos P.D.R. resulting to the establishment of AMATA City Lao Sole Co., Ltd. in 2020 to develop a Smart and Eco City in Laos which is expected to be able to operate in early 2022.

However, for business development in Laos, the Company has focused on the importance of preserving the quality of environment along with the local economic development. The Company has, therefore, adopted the environmental care and management models of several project areas in Thailand to be applied for the project in Laos such as water and waste management policies, development, green area management, and stakeholder engagement to create a balance of growth according to the Company's ALL WIN business philosophy.

Business Development in Myanmar

The Company has started to develop the Yangon AMATA Smart and Eco City Project located in East and South Dagon Township in the Yangon Region of Myanmar. The first phase of the Project covers an area of approximately 5,508 rai or 8.09 square kilometers, operated by AMATA Asia (Myanmar) Co., Ltd. The Company has driven the Yangon AMATA Smart and Eco City Project in accordance with AMATA Group's sustainability management framework that focuses on the utmost use of resources and effective environmental management to develop the Project to be a “Livable City” facilitating the business operations and living by introducing the technology and the design of smart city. Moreover, this Project has also aligned and supported the Myanmar Sustainable Development Plan under Goal 3 of Pillar 2, that is “Job Creation & Private Sector Led Growth”.

However, the volatile political situation in Myanmar in early 2021 have a direct impact on foreign investors invested in Myanmar including the Company.  After such circumstance, the Company had immediately implemented a risk and crisis management plan by taking care of the security of its employees as the first priority including implementing the measures to mitigate the financial risks in accordance with the resolution of the Board of Directors and the shareholders to decelerate its investment in Myanmar until the situation returns to normal and to closely monitor the situation.

Strategic Innovation Management

The Company has emphasized on the importance of the innovation management process to make the difference and increase the value-added to the products and services of the Company including enhancing the development and improvement of work processes to be more efficient in order to reduce the operating costs and mitigate the negative impacts on society and the environment.

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 from the development of innovative thinking skills, knowledge and competency of Company’s personnel as defined in the attributes of AMATA DNA regarding the innovative creativity and trying new ideas for development which are also applied to be the indicators of employee performance evaluation of all levels.

In 2021, the Company has developed a strategic innovation management process to enable the Company's innovation management to support its business strategy, create value-added products and services, enhance work efficiency and also minimize negative environmental impacts and leverage quality of life of all groups of stakeholders.

In this regard, the Company has two approaches to acquire the business innovations (INPUT), which are 1) collaborating with strategic partners to develop innovations (EXTERNAL) and 2) promoting its employees to be the creator of business innovations (INTERNAL).  The obtained innovations, either concepts or already implemented projects, will be supported the resources required for the further development to create additional value before delivery to customers and stakeholders.

1) Collaborating with strategic business partners to develop innovations

The Company has set the strategies for development of smart cities and support projects through its strategic business partners in order to rapidly achieve the 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 AMATA Smart City concept.

The cooperation with these leading companies and organizations not only concretely driving a smart city under various projects, but also being beneficial to Thai entrepreneurs of related industries in learning the concepts of new technology from foreign experts through 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 driving Thailand forward sustainably.

In 2021, the Company had signed a Memorandum of Understandings and agreements with the key strategic business partners as follows:

  • On February 19, 2021: Joint Venture Agreement (JVA) was signed between the Company and Sinotech Engineering Consultants Ltd with the objective of developing AMATA Taipei Smart City located in AMATA City Chonburi Project 2. The development concept of AMATA Taipei Smart City consists of smart city, commercial and mixed development with the aim to bring in Taiwanese investors and customers from high-tech industries and showcase Taiwanese technologies, innovation, and cultures.

  • On September 13, 2021: Memorandum of Understanding (MOU) is made by and between the Company and Japan Foundation of Cancer Research (JFCR) with the objective of conducting a feasibility study of setting up a cancer center at AMATA City Chonburi. JFCR collaborates with the Company as a project consultant and help to create guidelines for establishing a cancer center in collaboration with world-class cancer institutes and medical universities in many countries.

  • On September 16, 2021: Memorandum of Understanding (MOU) is made by and between the Company and Chia Tai Co., Ltd with the objective of studying for business opportunities on AMATA Food City project and/or other potential collaboration in Lao PDR, Thailand, Myanmar and Vietnam.

2) Promoting employees to be innovation creator

The Company has promoted and given the opportunities to the employees of all levels to demonstrate their potentials and to create innovations for business, society and 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 potentials and present their ideas to develop the products, services and effective team collaboration in the workplace.

In 2021, the Company had organized a "AMATA INNO Awards 2021" contest of which potential projects had been considered and selected by the committee consisting of the Chief Executive Officer and senior executives for extending the results and further development in the future.  The award was supported by a private fund from Mr. Vikrom Kromadit for an amount of 2 million baht to motivate the employees to participate in sending their projects and innovative ideas. This year, 74 employees from 29 teams had participated in the contest comprising of 9 projects and 29 innovation ideas, totally 38 projects.  The number of projects and innovative ideas submitted by the employees was 40.7% increased from that of 2020.

According to the information of innovation projects that had been implemented during the 2020-2021, the total operating costs was found reduced by 11.93 million baht resulted from 3 environmental impact mitigation projects and 6 social innovation projects.

11.93 MB
The Decreased Operating Costs
3 Projects
Environmental Impact Mitigation
6 Projects
Social Innovation

Economic Performance

In 2021, the Company had total revenue of 5,841.76 million baht, increased by 34.37% from 2020, and had a net profit of 1,402.29 million baht, increased by 27.08% from 2020.

The revenue can be classified into three main sources: revenue from real estate sales of 2,196.28 million baht, revenue from utility and industrial services of 1,976.55 million baht, and revenue from rental and others of 923.98 million baht.

Revenue from
Real Estate

2,196.28

million baht

Revenue from
Utility & Industrial Services

1,976.55

million baht

Revenue from
Rental & Others

923.98

million baht

Despite the COVID-19 pandemic, in 2021, the Company's revenue from real estate sales increased by 42.56%  from 2020 as a result of increasing land transfers both in Thailand and abroad due to the economic recovery. In addition, the COVID-19 pandemic has changed consumer behaviors, which accelerate the business expansion of certain industries such as data center and electronics in AMATA industrial estates where completely support their t needs of high energy security and utility services.

In 2021, the business sector has become more resilient and expedited their production to serve the rising demands. As a result, the Company's revenue from utility services increased by 7.35%, and revenue from rental of ready built factories grew by 12.63% from 2020.

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