SET-listed Frasers Property (Thailand) (FPT) plans to spend 25 billion baht from 2025 to 2029 to expand its industrial business in Thailand, Vietnam and Indonesia, capitalising on the growth of foreign direct investment (FDI) in Southeast Asia.

Peerapat Srisukont, acting chief executive of the company's industrial business, said the proportion of FDI flowing to Southeast Asia continues to expand, increasing from less than 10% of the total worldwide in 2021 to 15.3% in 2022-23.

"The proportion grew despite the annual drop in global FDI over those three years," he said. "A key driver is the relocations resulting from the China +1 policy due to geopolitical conflicts, which has boosted demand since 2021."

Among the three countries in which FPT has a footprint, Vietnam is expected to record the strongest growth in GDP at 5.6% in 2024 and 6% in 2025, followed by Indonesia at 5.1% and 5.2%, respectively.

FPT will spend around 2 billion baht per year to construct new factory and warehouse spaces in Vietnam and Indonesia.

In Vietnam, it has land banks totalling around 50-60 rai near Ho Chi Minh City to develop an area of over 200,000 square metres over the next five years.

In Indonesia, it will develop 100,000 sq m in three locations near Jakarta.

"Though Thailand has a slow economic growth, which is below the global GDP growth rate, the industrial sector in Thailand has been robust since 2021," said Mr Peerapat.

FDI applications in Thailand last year grew 72%, reaching 663 billion baht in value, up from 386 billion in 2022. The value tallied 318 billion baht in 2021, recovering strongly from just 169 billion in 2020. This level of growth has attracted new players to the industry, including foreign investors and residential developers.

The company will spend 2.5-3 billion baht per year in Thailand to construct new factory and warehouse spaces, covering around 1.5 million sq m over five years. This expansion will increase its assets under management from 3.55 million to 5 million sq m.

It also aims to increase rental revenue from the industrial business from nearly 5 billion baht per year to 7.5 billion baht per year by 2029, with an occupancy rate of 85-90%. The occupancy rate is 86% at present, up from 81% in 2019.