SET-listed Amata VN, an industrial estate developer operating in Vietnam, is facing significant short-term challenges in the country as global investors delay industrial land purchases.
Rising tariffs, geopolitical volatility and the ongoing Middle East conflict have created uncertainty, prompting investors to hold back on commitments and adopt a cautious "wait-and-see" approach.
Deputy chief executive Osamu Sudo said the Iran war has driven up logistics costs and disrupted global supply chains, while foreign exchange fluctuations have added further pressure.
He revealed that Amata VN's revenue in the first quarter of 2026 fell 19% year-on-year to 688 million baht. The slowdown in foreign direct investment has also weighed on Vietnam's industrial sector, though Mr Sudo emphasised that the company remains confident about the country's long-term prospects.
Despite these headwinds, Vietnam's economy continues to show resilience. The country's GDP expanded by 7.83% in the first quarter, marking its strongest first-quarter growth in a decade, supported by robust services and manufacturing sectors.
Amata VN believes this momentum will eventually translate into stronger demand for industrial estates, particularly as Chinese companies increasingly relocate operations to Southeast Asia to diversify their supply chains.
Amata VN also expects steady contributions from utility services and industrial land rentals to support long-term financial stability.
Looking ahead, the company is preparing to expand with its latest development, Amata City Phu Tho, after receiving official approval from Vietnam's government.
The project, valued at 5.74 billion baht, covers 2,970 rai of land and is designed to attract electronics and technology firms.
Mr Sudo emphasised that the estate, located in northern Vietnam, will be eco-friendly and aligned with the net-zero campaign, positioning it as a model for sustainable industrial development.
The Phu Tho project will be developed in two phases. The first phase, running from 2025 to 2029, will cover more than 239 hectares and focus on advanced technology and green investment.
The second phase, scheduled for 2029 to 2033, will add another 236 hectares, further expanding capacity for high-value industries.
