CP Group subsidiary VNS Property Co will spend 3.7 billion baht to develop its first industrial estate in Phraek Sa subdistrict, Samut Prakan province.

The Industrial Estate Authority of Thailand (IEAT) has already approved the company's project, which acquired an undeveloped plot of 1,000 rai adjacent to Bangpoo Industrial Estate.

The new location is named Phraek Sa Industrial Estate and is expected to be completed by 2021.

Kachorn Chiaravanont, chief executive of VNS, said land development is scheduled for two phases, with the first starting next year on 650 rai worth 2.5 billion baht.

"The 650-rai first phase is set to serve light industry such as electronic parts, automotive parts and medical devices and equipment, while the remaining 350 rai is for warehouses and logistics-related businesses," Mr Kachorn said.

He said the company aims to serve expansion of light industry in that province, as it is a strategic location only 22 kilometres from Bangkok Port and 25km from Suvarnabhumi airport.

Local and foreign investors have already expressed interest in Phraek Sa Industrial Estate, with foreign businesses ranging from Taiwan and Germany to China and Japan buying land.

VNS expects to generate roughly 4-5 billion baht in revenue in 2021 due to the flagship location, the large industrial estate near Bangkok and connecting with the government's Eastern Economic Corridor scheme, said Mr Kachorn.

Suwatana Kmolwatananisa, IEAT's deputy governor for corporate strategy and development, said Phraek Sa Industrial Estate will be developed as an eco-industrial town, with a focus on environmental friendliness.

IEAT will be the co-manager of this industrial estate.

VNS is awaiting approval of the environmental impact assessment, which it submitted to the government over a year ago.

"We expect the government will give the green light for the Phraek Sa project within this year," Mrs Suwatana said.

Last month, IEAT approved Thai-Chinese joint venture CG Corporation to develop a 3,068-rai industrial estate in Rayong province with an investment of 10 billion baht.

The land will be separated into three phases of development, all to be completed by 2021.