SET Seeks Tax Exemptions for M&A Deals, Launches Growth Initiative
The Stock Exchange of Thailand (SET) plans to request a tax exemption for retrospective mergers and acquisitions (M&A) involving listed companies to encourage expansion and enhance the domestic stock market’s appeal. SET President Asadej Kongsiri stated that this measure would help listed firms acquire non-listed peers without facing tax burdens, promoting business growth and increasing government tax revenue in the long run.
As part of its strategy, the SET will launch the Jump+ project in 2025, targeting high-potential firms with “lazy balance sheets” to drive market capitalisation. The initiative includes advisory services, ESG advancements, AI-driven analytics, and incentives to enhance operational efficiency. Additionally, the SET aims to establish Thailand as a listing hub for flagship industries such as healthcare, data centres, and wellness, while leveraging AI to provide analysis on smaller stocks to improve investor decision-making.
https://www.bangkokpost.com/business/general/2926726/call-to-exempt-listed-firms-from-tax-on-mergers
Editor’s Note: The Stock Exchange of Thailand (SET) plans to seek tax exemptions for retrospective M&A deals involving listed companies to encourage expansion and attract more investments, while also launching the Jump+ project in 2025 to boost market capitalization for high-potential firms. The initiative will include advisory services, ESG advancements, AI-driven analytics, and incentives, aiming to establish Thailand as a listing hub for key industries like healthcare, data centers, and wellness.
Thailand to Implement Top-Up Tax in 2025, Targeting Multinational Corporations
The Thai government plans to implement the Top-Up Tax starting January 1, 2025, aiming to generate over 10 billion baht annually and align with the OECD’s global minimum tax (GMT) initiative. Deputy Finance Minister Julapun Amornvivat confirmed that the emergency decree for the tax has been approved by the cabinet and is under drafting, with completion targeted by year-end to ensure timely enforcement. The Top-Up Tax mandates multinational corporations with global revenues exceeding €750 million to pay a minimum corporate tax rate of 15%, addressing tax base erosion and profit shifting.
Revenue from the Top-Up Tax will be directed to the National Competitiveness Enhancement Fund to support sustainable investments in Thailand, including green economy initiatives and pollution reduction. Mr. Julapun emphasized that while some multinationals may face higher tax rates, many prefer paying the 15% rate in Thailand due to its supportive measures. This reform positions Thailand as an early adopter among over 20 nations implementing GMT regulations, reinforcing its commitment to fair taxation and investment appeal.
https://www.bangkokpost.com/business/general/2925917/decree-to-ring-in-top-up-tax-in-2025
Editor’s Note: Thailand will introduce a Top-Up Tax starting January 1, 2025, targeting multinational corporations with global revenues over €750 million to ensure a minimum 15% corporate tax rate, aligning with the OECD’s global minimum tax initiative. The tax aims to generate over 10 billion baht annually, with proceeds directed to the National Competitiveness Enhancement Fund to support sustainable investments and green economy initiatives. While some multinationals may face higher rates, the reform positions Thailand as an early adopter of global tax standards, enhancing its appeal as an investment destination.
Thailand’s GenAI Market Poised for Growth Amid Adoption Challenges
Thailand’s generative AI (GenAI) market is projected to reach $80 million in 2024, with an annual growth rate of 46.5% through 2030, according to Statista. Industry leaders highlight the growing adoption of small language models (SLMs) and open-source AI solutions to reduce costs and address specialised needs. IBM and AWS are spearheading initiatives to boost GenAI adoption, with IBM targeting a rise from 6% to 20% among Thai organisations by next year and AWS providing AI training to 100,000 people by 2026. GenAI’s potential to enhance productivity and drive innovation makes it an attractive tool for sectors like finance, healthcare, and manufacturing.
Despite optimism, experts caution about challenges such as skill shortages, unpredictable costs, and security risks. Leaders like Microsoft and Accenture emphasize the need for policy guidelines, workforce development, and real-time cost tracking to ensure scalable GenAI adoption. Nvidia CEO Jensen Huang highlighted the transformative potential of AI across industries, noting that advancements in robotics and AI infrastructure will shape Thailand’s future as a digital economy hub. As businesses move from experimentation to scaled deployment, the focus will shift toward achieving measurable returns on investment by 2025.
https://www.bangkokpost.com/business/general/2925276/thailand-stands-on-precipice-of-major-ai-boom
Editor’s Note: Thailand’s generative AI (GenAI) market is projected to reach $80 million in 2024, growing at an annual rate of 46.5% through 2030, with key players like IBM and AWS driving adoption in sectors such as finance, healthcare, and manufacturing. Despite its potential, challenges such as skill shortages, unpredictable costs, and security risks remain, with leaders urging for policy guidelines and workforce development. As businesses scale GenAI adoption, the focus will shift towards achieving measurable returns on investment by 2025, positioning Thailand as a digital economy hub.
Thailand’s Big Data Platform Set for 2025 Launch to Drive Innovation
The Big Data Institute (BDI) is poised to launch the initial phase of a national big data platform in 2025, centralizing four key systems: Health Link, Envi Link, Travel Link, and Smart Data Analytics. This initiative, part of the BDI’s 2025–27 strategic roadmap, aims to generate over 1 billion baht in economic, social, and environmental benefits and create more than 10,000 data-related jobs in its first year. The roadmap, under review by the National Economic and Social Development Council, outlines strategies for enhancing the data value chain, fostering AI development, and building a skilled talent pool.
BDI President Tiranee Achalakul highlighted plans to expand Health Link’s nationwide health data coverage, enhance Envi Link’s environmental data services for smart cities, and broaden Travel Link’s reach to key tourist hubs. The Smart Data Analytics platform will drive smart city solutions in provinces like Nan and Songkhla. Concurrently, the BDI is collaborating on the Thai Large Language Model (ThaiLLM) project to develop advanced AI tools tailored to Thai-language applications, focusing on healthcare and environmental sectors. This national platform will enable seamless, secure data integration across government agencies and unlock advanced analytics capabilities.
https://www.bangkokpost.com/business/general/2925146/bdi-lines-up-national-big-data-platform
Editor’s Note: The Big Data Institute (BDI) plans to launch Thailand’s national big data platform in 2025, centralizing systems like Health Link, Envi Link, Travel Link, and Smart Data Analytics to drive innovation and economic growth. The initiative aims to generate over 1 billion baht in benefits, create 10,000 data-related jobs, and enhance AI development, with a focus on healthcare, environmental data, and smart city solutions, while also supporting the Thai Large Language Model (ThaiLLM) project.
SET ESG Ratings 2024 Hits Record High with 228 Companies Recognized
The Stock Exchange of Thailand (SET) announced a milestone in its 2024 ESG Ratings, with 228 listed companies earning recognition for their sustainability efforts. Among them, 56 firms achieved the highest AAA rating, while 80 secured AA, 71 received A, and 21 attained BBB. Collectively, these companies represent 82% of the total market capitalization of the SET and Market for Alternative Investment as of Dec 12, according to SET senior executive vice-president Soraphol Tulayasathien. The ratings serve as a critical tool for investors, analysts, and fund managers to evaluate business risks and growth opportunities, aligning with the increasing focus on sustainable investments.
Notably, small and medium-sized companies with market capitalizations below 10 billion baht showed significant progress, with 106 firms meeting ESG criteria—an increase of 43% from the previous year. Companies also improved in areas such as climate risk management and carbon emissions disclosures. As sustainability gains traction, ESG-focused funds like Thailand ESG Funds and Vayupak Fund 1 are driving investment trends, managing assets of 14.6 billion baht and 150 billion baht, respectively. SET ESG Ratings will transition to the globally recognized FTSE Russell ESG Scores by 2026, with public disclosures of results enhancing transparency and investor trust.
https://www.bangkokpost.com/business/investment/2920972/set-esg-ratings-reaches-all-time-high
Editor’s Note: In the 2024 ESG Ratings, 228 companies listed on the Stock Exchange of Thailand (SET) were recognized for their sustainability efforts, with 56 earning the highest AAA rating. The ratings highlight significant progress, especially among small and medium-sized companies, and reflect growing investor focus on sustainable investments, with plans to transition to FTSE Russell ESG Scores by 2026.
Thailand’s Digital Economy Surges with Foreign Investment and Government Initiatives
Thailand’s digital economy is experiencing robust growth, fueled by over 100 billion baht in investments from global tech giants like Google, Microsoft, and Datamax, alongside strategic government initiatives, according to Digital Economy and Society (DE) Minister Prasert Jantararuangtong. In 2024, the digital sector contributed 4.44 trillion baht to the economy, a 5.7% increase over the previous year and accounting for 23.9% of the country’s GDP. Exports of digital goods and services reached 44.6 billion baht, underscoring the sector’s role in driving economic and export growth.
The ministry has unveiled three key initiatives to sustain momentum: leveraging advanced technologies like cloud computing and Large Language Models, bolstering cybersecurity, and addressing the significant digital talent gap by collaborating with the private sector to meet an annual demand of 100,000 skilled workers. Acting secretary-general of the Digital Economy and Society Commission, Wetang Phuengsap, noted that private digital consumption grew by 5.6%, surpassing overall consumption growth. With current trends, the National Assembly projects the digital economy could contribute up to 30% of GDP by 2027.
https://www.nationthailand.com/business/tech/40044146
Editor’s Note: Thailand’s digital economy is growing rapidly, with over 100 billion baht in foreign investments and contributing 4.44 trillion baht to the GDP in 2024, accounting for 23.9% of the economy. Government initiatives focusing on advanced technologies, cybersecurity, and addressing the digital talent gap aim to sustain this growth, with projections indicating the sector could contribute 30% of GDP by 2027.
AI System to Detect 100,000 Substandard Goods Daily, Industry Ministry Reports
The Industry Ministry’s newly-developed artificial intelligence (AI) system is expected to revolutionize consumer protection by identifying approximately 100,000 substandard items on online platforms each day. Pongpol Yodmuangcharoen, secretary to Industry Minister Akanat Promphan, highlighted the system’s capabilities during a December 20 meeting of the Committee on Technology and Innovations for Industrial Reform. This marks a significant improvement over the current manual detection rate of 1,600 items per day, addressing the influx of low-quality goods, primarily from China.
The AI system will prioritize products critical to consumer safety, such as power extension sockets and crash helmets. It will analyze keywords and images to compare them against a database of licensed distributors and ISO-certified products. Ministry staff will verify findings and prepare legal cases against sellers of substandard goods. The initiative underscores the government’s commitment to leveraging technology for industrial reform and enhanced public safety.
https://www.nationthailand.com/business/trade/40044484
Editor’s Note: The Industry Ministry has developed an AI system capable of detecting 100,000 substandard items daily on online platforms, a significant improvement over the current manual detection rate of 1,600 items. The system will focus on safety-critical products and work with ministry staff to verify and take legal action against sellers of low-quality goods, enhancing consumer protection.
NVIDIA Partnership Boosts Vietnam’s Semiconductor and AI Ambitions
Vietnam is poised to become a global hub for semiconductor and AI innovation following a landmark partnership with U.S. chip giant NVIDIA. The collaboration includes the establishment of an AI research and development center in Vietnam, expected to employ 130 people initially, with plans for expansion. NVIDIA also aims to shift part of its chip manufacturing operations to the country, signaling a major opportunity for Vietnam’s burgeoning semiconductor industry, which has already attracted $11.6 billion in foreign investment across 174 projects.
The partnership highlights Vietnam’s strategic importance in the global tech ecosystem, with the government investing in training 50,000 semiconductor engineers to meet industry demands. NVIDIA’s focus on chip design, the most lucrative phase of production, is expected to bring high-value projects and attract further investment from enterprises within its ecosystem. This collaboration, alongside increasing foreign interest in Vietnam’s rare earth resources and AI infrastructure, is set to solidify the nation’s position as a key player in the semiconductor and AI fields.
Editor’s Note: Vietnam is positioning itself as a global semiconductor and AI hub through a strategic partnership with NVIDIA, which includes establishing an AI R&D center and shifting part of its chip manufacturing to the country. This collaboration, along with government efforts to train 50,000 semiconductor engineers, strengthens Vietnam’s position in the global tech ecosystem and is expected to attract further investment.
HCM City Launches Industry 4.0 Center to Lead AI and Digital Transformation
The launch of HCM City’s Fourth Industrial Revolution Center (C4IR) on December 22, 2024, marks a pivotal step in the city’s journey to becoming a global hub for AI and digital transformation. Backed by the Vietnamese government and the World Economic Forum, the center aims to advance AI, smart manufacturing, and sustainable finance solutions. Key partners, including CMC Corporation, have unveiled bold strategies to build a comprehensive AI ecosystem and semiconductor infrastructure, further cementing the city’s status as a leader in Industry 4.0.
CMC Corporation, at the forefront of this initiative, is driving projects to integrate AI into governance, healthcare, and education while piloting programs in Thu Duc City and Can Gio District. The company also collaborates with Viettel to establish a semiconductor ecosystem and promote green growth through sustainable finance. City leaders, including Party Secretary Nguyen Van Nen and People’s Committee Chairman Phan Van Mai, underscored the center’s role in enhancing quality of life and fostering public-private collaboration, positioning HCM City as a beacon of technological and industrial progress.
Editor’s Note: HCM City has launched its Fourth Industrial Revolution Center (C4IR) to drive AI, smart manufacturing, and sustainable finance, with strong backing from the Vietnamese government and the World Economic Forum. The center, led by CMC Corporation, aims to establish an AI ecosystem and semiconductor infrastructure, positioning the city as a leader in Industry 4.0 and fostering public-private collaboration.
Vietnam Issues Resolution No. 57 on Science, Technology, and Digital Transformation
The Politburo, under the leadership of General Secretary To Lam, has issued Resolution No. 57-NQ/TW on December 22, 2024, emphasizing the pivotal role of science, technology, innovation, and digital transformation in Vietnam’s development. The resolution underscores these areas as decisive factors in fostering national growth and achieving Vietnam’s ambitions to become a prosperous and powerful nation in the new era. While significant strides have been made in applying and advancing technology and innovation, the resolution acknowledges the country’s lag in mastering strategic and core technologies compared to developed nations.
To address these challenges, the resolution calls for bold and revolutionary policies to accelerate progress. It highlights the urgent need to enhance legal frameworks, strengthen digital infrastructure, and cultivate high-quality human resources. With a focus on achieving a modern industrial economy by 2030 and high-income status by 2045, Vietnam aims to capitalize on opportunities presented by the Fourth Industrial Revolution. Prioritizing breakthroughs in science, technology, and digital transformation, the country seeks to overcome existing limitations and ensure information security while fostering sustainable growth.
Editor’s Note: Vietnam’s Politburo has issued Resolution No. 57-NQ/TW, emphasizing the crucial role of science, technology, and digital transformation in the nation’s growth and its ambitions for 2030 and 2045. The resolution outlines bold policies to enhance legal frameworks, digital infrastructure, and human resources, offering a comprehensive understanding of the government’s strategy for advancing these sectors.