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Tag: vietnam

  • El Nino is approaching and your next cup of coffee could be at risk

    El Nino is approaching and your next cup of coffee could be at risk

    A cup of Espresso coffee in Cascais, Portugal on October 11, 2021.

    Nikolas Kokovlis | Nurphoto | Getty Images

    Extreme weather conditions brought on by an approaching El Nino are fueling concerns that robusta beans in major coffee producers like Vietnam and Indonesia could be hit, resulting in soaring prices.

    “The now widely-expected transition to El Nino conditions in Q323 has stoked fears of reduced output in Vietnam and Indonesia, both major coffee robusta producers,” Fitch Solutions’ research unit BMI said in report dated May 24.

    Robusta beans are known for their bitter characteristics and higher acidity, containing more caffeine than their premium and pricier arabica counterpart.

    Brazil’s robusta crop has also been negatively impacted by drought as well, the report said.

    That means the cost of instant coffee and espressos, which are often made with robusta beans, could come under pressure amid supply worries and a stronger than usual demand for robusta as consumers turn to cheaper substitutes for arabica.

    El Nino is a weather phenomenon that typically brings hotter and drier than usual conditions to the central and eastern tropical Pacific Ocean. Climate scientists are predicting that this year’s El Nino could descend in the second half of 2023

    Southeast Asia recently saw record-breaking heat in the middle of May.

    Asia, generally speaking, has taken a liking to Robusta more so than Arabica, and as such the demand for Robusta is growing at a much faster rate

    Shawn Hackett

    President of Hackett Financial Advisors

    “Across Southeast Asia, El Niño conditions are associated with below-average rainfall and higher temperatures, both of which depress coffee production,” the BMI report said.

    Vietnam, Indonesia and Brazil are the largest producers of robusta, according to the Food and Agriculture Organization.

    “We draw attention to heavy rains in Indonesia through Q123, which have had a negative impact on coffee bean quality, with the USDA forecasting a decline of about one fifth in coffee robusta production,” the analysts said.

    Carlos Mera, head of agri commodities markets at Rabobank, is forecasting a 10% drop in production to 11.2 million bags of robusta in the coming crop harvest.

    A man holding Robusta coffee beans at a coffee tasting fair in Buon Ma Thuot city in Daklak province, Vietnam. Bitter and earthy. fit for instant brews only.

    Nhac Nguyen | Afp | Getty Images

    In 2016, El Nino-related water shortages in both Vietnam and Indonesia led to a global production decline of close to 10%, according to the research unit’s statistics.

    Typically, in an El Nino year, it is “not uncommon” for Vietnam and Indonesia to “see a 20% decline in production” in robusta beans, Shawn Hackett, president of commodity brokerage firm Hackett Financial Advisors, told CNBC.

    “That would mean a pretty severe contraction of robusta,” he said.

    Rising demand for the robusta

    Robusta beans account for 40% of the world’s coffee production, and arabica beans make up the remaining 60% of global coffee production. Arabica beans are usually deemed to be of higher quality and command higher prices than robusta coffee.

    However, global economic pressures are tipping demand toward robusta, the underdog of coffee beans.

    Robusta prices are supported as coffee-product manufacturers and consumers substitute robusta beans for pricier arabica beans to save costs during inflationary times, the BMI report said.

    Robusta coffee prices recently soared to a 15-year high of $2,783 per ton toward the end of May. They last traded at $2,608 per ton for July futures, according to data from the Intercontinental Exchange.

    Additionally, the premium that arabica beans have over robusta beans plunged to the lowest since 2019 due to soaring demand for the relatively cheaper coffee bean.

    “Asia, generally speaking, has taken a liking to robusta more so than arabica, and as such the demand for robusta is growing at a much faster rate than demand for arabica,” said Hackett.

    He cited the lower price point of robusta beans in Asia and the population’s palette for robusta-bean based drinks. 

    Kopi, also known as Nanyang coffee, is a dark coffee beverage popular in Southeast Asia that’s traditionally brewed using robusta beans.

    A farmer harvesting coffee cherries at a coffee plantation in Central Java, Indonesia, on May 25, 2023.

    Dimas Ardian | Bloomberg | Getty Images

    But Asia is not the only region that has taken an increased liking to robusta.

    “While the reduction in washed arabica imports is partially due to lower availability … the shift to robusta shows that cheaper coffees are being heavily preferred by the European market,” said Natalia Gandolphi, analyst at HedgePoint Global Markets’ Intelligence.

    Gandolphi said she expects a deficit of 4.16 million bags of robusta for the October 2023 to September 2024 period.

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  • FedEx founder Fred Smith: An

    FedEx founder Fred Smith: An

    FedEx founder Fred Smith: An “overnight” success – CBS News


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    When Fred Smith started his next-day delivery company Federal Express in 1973, flying packages to customers, it was not an overnight success. Today FedEx moves 15 million packages a day aboard its fleet of aircraft, through hubs in Memphis and other cities, to more than 200 countries around the world. CBS News national security correspondent David Martin talks with Smith about how the former Marine captain and decorated Vietnam veteran transformed the shipping industry.

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  • Vietnam veterans reunite with fellow POWs 50 years after coming home

    Vietnam veterans reunite with fellow POWs 50 years after coming home

    Vietnam veterans reunite with fellow POWs 50 years after coming home – CBS News


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    Vietnam Prisoners of War gathered at the Richard Nixon Presidential Library 50 years after the president first honored the servicemen at the White House. The bond between the veterans remains strong and they credit each other for surviving months and years of torture and making it back home together. Carter Evans reports.

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  • Former US diplomat Henry Kissinger celebrates 100th birthday, still active in global affairs

    Former US diplomat Henry Kissinger celebrates 100th birthday, still active in global affairs

    Former diplomat and presidential adviser Henry Kissinger marks his 100th birthday on Saturday, outlasting many of his political contemporaries who guided the United States through one of its most tumultuous periods including the presidency of Richard Nixon and the Vietnam War.

    Born in Germany on May 27, 1923, Kissinger remains known for his key role in American foreign policy of the 1960s and 1970s including eventual attempts to pull the U.S. out of Vietnam, but not before he became inextricably linked to many of the conflict’s most disputed actions.

    David Kissinger, writing in The Washington Post on Thursday, said his father’s centenary “might have an air of inevitability for anyone familiar with his force of character and love of historical symbolism. Not only has he outlived most of his peers, eminent detractors and students, but he has also remained indefatigably active throughout his 90s.”

    The elder Kissinger will celebrate this week with visits to New York, London and his hometown of Fürth, Germany, David Kissinger wrote.

    In recent years Kissinger has continued to hold sway over Washington’s power brokers as an elder statesman. He has provided advice to Republican and Democratic presidents, including the White House during the Trump administration, while maintaining an international consulting business through which he delivers speeches in the German accent he has not lost since fleeing the Nazi regime with his family when he was a teenager.

    As recently as this month, Kissinger opined that the war in Ukraine is reaching a turning point with China entering negotiations. He told CBS News that he expects negotiations to come to a head “by the end of the year.” He has called for peace through negotiation to end the conflict.

    Kissinger also coauthored a book about artificial intelligence in 2021 called “The Age of AI: And Our Human Future.” He has warned that governments should prepare for the potential risks associated with the technology.

    During eight years as a national security adviser and secretary of state, Kissinger was involved in major foreign policy events including the first example of “shuttle diplomacy” seeking Middle East peace, secret negotiations with China to defrost relations between the burgeoning superpowers and the instigation of the Paris peace talks seeking an end to the Vietnam conflict and the U.S. military’s presence there.

    Kissinger, along with Nixon, also bore the brunt of criticism from American allies when North Vietnamese communist forces took Saigon in 1975 as the remaining U.S. personnel fled what is now known as Ho Chi Minh City.

    Kissinger additionally was accused of orchestrating the expansion of the conflict into Laos and Cambodia, enabling the rise of the genocidal Khmer Rouge regime that killed an estimated 2 million Cambodians.

    Among his endorsements, Kissinger was recognized as a central driver in the period of detente, a diplomatic effort between the U.S. and the Soviet Union beginning in 1967 through 1979 to reduce Cold War tensions with trade and arms negotiations including the Strategic Arms Limitation Talks treaties.

    Kissinger remained one of Nixon’s most trusted advisers through his administration from 1969 to 1974, his power only growing through the Watergate affair that brought down the 37th president.

    Gerald Ford, who as vice president ascended to the Oval Office following his predecessor’s resignation, awarded Kissinger the Presidential Medal of Freedom in 1977, saying Kissinger “wielded America’s great power with wisdom and compassion in the service of peace.”

    Others have accused Kissinger of more concern with power than harmony during his tenure in Washington, enacting realpolitik policies favoring American interests while assisting or emboldening repressive regimes in Pakistan, Chile and Indonesia.

    ___

    Associated Press writer Patrick Whittle contributed to this report.

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  • A color-changing lizard and

    A color-changing lizard and

    A venomous snake named after a mythological goddess, an orchid that looks like a Muppet, a tree frog with skin that looks like moss and a tree-climbing lizard that changes colors are among hundreds of new species that were recently discovered across Asia. But according to a new report by the World Wildlife Fund, many of the 380 new species are already at risk of going extinct. 

    clean-calotes-goetzi-c-henrik-bringsoe.jpg
    The Calotes Goetzi, a lizard that changes color when its older and feeling defensive, was among nearly 400 new species found across southeast Asia in 2021 and 2022. 

    Henrik Bringsoe


    All of the species were found across southeast Asia’s Greater Mekong region – which includes Cambodia, Laos, Myanmar, Thailand and Vietnam – in 2021 and 2022. That area is known for being home to some of the world’s “most biologically diverse habitats,” according to the WWF, with thousands of species of plants and animals. 

    A new report from the group published on Monday details the discovery of new species of 290 plants, 19 fishes, 24 amphibians, 46 reptiles and one mammal across the area. But while the new species found were described as “remarkable” by the WWF, the group also offered a warning for many. 

    Tylototriton thaiorum, otherwise known as the Thai crocodile newt, for example, is only known to live in one area in Vietnam and is already considered to be an endangered species. The WWF says that the area in which the newt is known to live is suffering from habitat loss because of expanding agriculture and logging, as well as communities collecting the creature to treat abdominal pain and parasitic infections. 

    clean-original-res-side-view-theloderma-khoii-c-nguyen-thien-tao-viet-nam.jpg
    This newly identified species of tree frog was found in Vietnam, and according to the World Wildlife Fund, researchers believe that it should be classified as endangered. 

    Nguyen Thien/TAO via World Wildlife Fund


    Vietnam is also home to the newly identified Theloderma Khoii, a frog whose color and patterns make it look as though it’s covered in moss as a form of camouflage. But the report says that road construction and illegal logging threaten the forests in which it lives, leading researchers to believe it should also be considered endangered. 

    And it’s not just animals that are under threat. Nepenthes bracteosa and Nepenthes hirtella, two new species of pitcher plants, “have immediately been classified as Critically Endangered,” the WWF said in its report. Both plants are found only on “a single hilltop” in southern Thailand, meaning that “any significant disturbance or deteriorating in their habitat could put them at risk of extinction.”  

    clean-front-view-dendrobium-fuscifaucium-c-keooudone-souvannakhoummane-viet-nam.png
    Among newly-discovered species is the Dendrobium fuscifaucium, a mini-orchid that resembled the Muppets that sing “Mah Nah Mah Na.”

    Keooudone Souvannakhoummane/World Wildlife Fund


    Cambodia’s Dendrobium fuscifaucium — a miniature orchid that resembles the Muppets who sing the song “Mah Na Mah Na” — is not specifically said to be endangered in the report, but the organization describes it as an “unusual discovery” that researchers are struggling to find in the wild. They stumbled upon the species from a nursery collection, whose owner said they bought it from a local wild plant vendor who said they found it in the wild. 

    “The discovery of this new species only underlines the importance of protecting these delicate plants,” the report says. 

    Truong Nguyen of the Vietnam Academy of Science said that the status of these newly dubbed species shows the “tremendous pressures” the region is facing, both from economic development and human population growth. These issues, he said in a foreword in the report, “drive deforestation, pollution and overexploitation of natural resources, compounded by the effects of climate change.”

    “More concerted, science-based and urgent efforts need to be made to reverse the rapid biodiversity loss in the region,” he wrote. “Using the critical evidence base that is laid by scientists, we all need to urgently invest time and resources into the best ways to conserve the known and yet unknown species.” 

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  • China fears threaten to shatter G7 unity

    China fears threaten to shatter G7 unity

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    HIROSHIMA, Japan — As the leaders of the Group of Seven gather for their annual summit in Japan this week, three world-changing conflicts — past, present and potential — will converge. 

    The atomic bomb that ended World War II destroyed much of the city of Hiroshima, where the leaders will meet. Today, Russia’s war in Ukraine is costing thousands of lives and billions of dollars as it drags on. And then there’s the risk of another horrifying catastrophe to come, as China threatens Taiwan. 

    And it’s over China where the alliance may come unstuck. 

    For hawks like the U.S. and Japan, the summit beginning Friday offers a timely opportunity to make the case to Europe’s leaders directly that it’s time to get off the fence when it comes to confronting China. 

    “This G7 Summit will be an appropriate venue to also discuss security issues and our security cooperation not only in Europe, but also in the Indo-Pacific region,” Noriyuki Shikata, cabinet secretary at the Japanese prime minister’s office, told POLITICO. 

    The U.S. is betting on at least the appearance of common ground with allies about the People’s Republic of China. Ahead of the summit, U.S. National Security Council spokesperson John Kirby told reporters: “You can expect to hear at the end of those discussions that all the G7 leaders are of a common mind about how to deal with the challenges that the PRC presents.”

    But — beyond the inevitably bland diplomatic lines of a summit communique — getting consensus on meaningful security measures for the Indo-Pacific region will be hard, even in the symbolic setting of Hiroshima. 

    East Asia is again descending into a state of growing security risks and military imbalance, this time due to China’s aggressive moves against Taiwan and the South China Sea. 

    “There’s a feeling that there’s a little bit of a gap, perhaps, between where the Europeans are on some China issues and where the U.S. is,” said Zack Cooper, former aide to the U.S. National Security Council and a senior fellow at the American Enterprise Institute. 

    Chief among the points of tension is how far to go in trying to stop a potential Chinese invasion of Taiwan, which could trigger world war and wreck the global economy. The self-governing island, which Beijing claims as its own, provides most of the world’s advanced computer chips that are vital to the tech and defense industries. Not all European governments are convinced it’s something they need to prioritize. “It’s going to be a continuing challenge,” Cooper said. 

    Picking friends

    NATO is set to extend its footprint in Asia and set up a new liaison office in Tokyo to better coordinate with regional partners, such as Australia, South Korea and New Zealand. 

    However, French President Emmanuel Macron has repeatedly called on NATO to focus only on the Euro-Atlantic theater, saying Asia — China — is not covered geographically. He also triggered an outcry with recent comments to POLITICO, suggesting that Taiwan’s security was not Europe’s fight, and that the EU should not automatically follow America’s lead.  

    Justin Trudeau comes to the G7 following months of intelligence leaks that have painted his government as weak on foreign interference | Yuchi Yamazaki/AFP via Getty Images

    Macron’s stance sets France — which is the EU’s biggest military power — apart from the U.S. and Japan, and also from the U.K., where Prime Minister Rishi Sunak is expected to announce a new security deal with Japan during his visit.

    “Ukraine today could be East Asia tomorrow,” Japanese Prime Minister Fumio Kishida said last year, not long after Russia’s full-scale invasion began. Last week, Japan’s Foreign Minister Yoshimasa Hayashi made an even more explicit warning in a speech made to his 27 EU counterparts in Sweden.

    “China is continuing and intensifying its unilateral attempts to change the status quo by force in the East and South China Seas. China is also increasing its military activities around Taiwan,” Hayashi said. “In addition, China and Russia are strengthening their military collaboration, including joint flights of their bombers and joint naval exercises in the vicinity of Japan.”

    The Chinese-Russian ties will be part of the G7 leaders’ discussions, according to two officials involved in the process, who spoke on condition of anonymity because summit preparations are not public. While the Chinese authorities stop short of openly arming Russia in its war against Ukraine, a long-term strategic partnership between Beijing and Moscow is unshakable for President Xi Jinping.

    G7 countries such as the U.S. and Japan are expected to raise the need to sanction countries that work around Western trade restrictions on Russia, according to the officials. Chinese companies found to be selling dual use goods to Russia would be a top focus. 

    Bully tactics

    China’s willingness to throw around its economic weight is one area where there’s likely to be more unity between G7 allies. 

    The need to fight back against economic coercion will take center stage at the summit. The EU, U.S., Canada and Japan are going to rally around calls to combat China’s use of its economic power to bully smaller economies that act against its political interests.

    “The sense of urgency and unity is a force factor in and of itself. For example, never before has the G7 addressed economic coercion,” Rahm Emanuel, the U.S. ambassador to Japan, told POLITICO. 

    “When measured against the recent past, the G7 and EU are more strategically aligned in key economic and military matters,” added Emanuel, who served as chief of staff to former U.S. President Barack Obama.

    When it comes to the European view, EU Commission President Ursula von der Leyen is clear that the bloc is “competing with China” and will need to up its game. “We will reduce strategic dependencies — we have learned the lessons of the last year,” she said in a press conference ahead of the trip.

    Justin Trudeau, the Canadian prime minister, comes to the G7 following months of intelligence leaks that have painted his government as weak on foreign interference, specifically from China. He’ll be carrying Canada’s message that it can be a safe, non-authoritarian alternative to Russia and China for supplying critical minerals and energy, including nuclear power. 

    Despite the toughening rhetoric on China, what still unites the G7 countries is an eagerness not to shut the door on talks with Beijing. 

    US President Joe Biden arrives to attend the G7 Summit in Hiroshima on May 18, 2023 | Brendan Smialowski/AFP via Getty Images

    The Biden administration has for months been seeking to secure a visit to China for top Cabinet members, such as Treasury Secretary Janet Yellen. Biden’s national security adviser, Jake Sullivan, held eight hours of talks with the Chinese Communist Party’s foreign policy chief, Wang Yi, this month. 

    Just before he left for Japan on Wednesday, U.S. President Joe Biden was asked whether his last-minute decision to truncate his trip abroad could be seen as “almost a win for China.” Instead of staying in the region for a summit of the Quad — Japan, India, the U.S. and Australia — Biden plans to return to Washington Sunday to deal with domestic issues. 

    The president downplayed the move as something China could use to its advantage, noting he will still meet with Quad nation leaders in Japan. “We get a chance to talk separately at the meeting,” he said

    Then, Biden was asked whether he has plans to speak with the Chinese president soon.

    “Whether it’s soon or not, we will be meeting,” he said, before leaving the room. 

    Cristina Gallardo in London and Zi-Ann Lum in Ottawa contributed reporting.

    Eli Stokols, Phelim Kine and Stuart Lau

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  • US, Vietnam pledge to boost ties as Blinken visits Hanoi

    US, Vietnam pledge to boost ties as Blinken visits Hanoi

    HANOI (AP) — Fifty years after the last U.S. combat troops left South Vietnam, Secretary of State Antony Blinken looked Saturday to strengthen America’s ties with its old foes in Hanoi as it seeks to counter China’s growing assertiveness in the Indo-Pacific.

    Blinken and Vietnamese Prime Minister Pham Minh Chinh pledged to boost relations to new levels as they met just two weeks after the 50th anniversary of the U.S. troop withdrawal that marked the end of America’s direct military involvement in Vietnam.

    And it came as Blinken broke ground on a sprawling new $1.2 billion U.S. embassy compound in the Vietnamese capital, a project the Biden administration hopes will demonstrate its commitment to further improving ties less than 30 years after diplomatic relations were restored in 1995.

    Despite concerns over Vietnam’s human rights record, Washington sees Hanoi as a key component of its strategy for the region and has sought to leverage Vietnam’s traditional rivalry with its much larger neighbor China to expand U.S. influence in the region.

    “We think this is an auspicious time to elevate our existing partnership,” Blinken told reporters after meetings with Chinh, Vietnam’s foreign minister and Communist Party chief.

    “This has been a very comprehensive and effective relationship and going forward we will continue to deepen relations,” Chinh said. “We highly appreciate the role and responsibility of the U.S. towards the Asia Pacific, or, in a larger scheme, the Indo-Pacific.”

    He added that Vietnam’s communist government is keen to “further elevate our bilateral ties to a new height.”

    Along with a number of China’s smaller neighbors, Vietnam has maritime and territorial disputes with Beijing in the South China Sea. The U.S. has responded by offering diplomatic support and bolstering military cooperation with the Philippines and the self-ruled island of Taiwan, which China claims as a renegade province.

    Blinken noted that the U.S. is currently finalizing the transfer to Vietnam of a third Coast Guard cutter, which will complement existing maritime security cooperation that has seen Washington give Hanoi 24 patrol boats since 2016 along with other equipment and training.

    “All of these elements bolster Vietnamese capacity to contribute to maritime peace and stability in the South China Sea,” he said.

    Just last month, China threatened “serious consequences” after the U.S. Navy sailed a destroyer around the disputed Paracel Islands in the South China Sea for the second day in a row, in a move Beijing claimed was a violation of its sovereignty and security. The Paracels are occupied by China but also claimed by Taiwan and Vietnam.

    U.S. officials are reluctant to describe any visit to Asia in terms of China, preferring instead to discuss the importance of improving bilateral ties. But they frequently speak to broader concerns in the region that are clearly directed at China.

    “We focused on how our countries can advance a free and open Indo-Pacific; one that is at peace and grounded in respect the rules-based international order,” Blinken said.

    And five decades after the Nixon administration pulled U.S. combat forces out of Vietnam on March 29, 1973, Blinken said the U.S. is seeking a more strategic orientation with the country.

    Blinken’s visit comes as the administration grapples with its own record of troop withdrawals and is facing congressional criticism and demands to explain the chaotic U.S. departure from Afghanistan two years ago.

    Some have likened that to the Vietnam experience, especially as it relates to the fate of Afghans who supported the 20-year military mission but were left behind when the Biden administration pulled out of Afghanistan in 2021.

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  • Britain secures agreement to join Indo-Pacific trade bloc

    Britain secures agreement to join Indo-Pacific trade bloc

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    LONDON — Britain will be welcomed into an Indo-Pacific trade bloc late Thursday as ministers from the soon-to-be 12-nation trade pact meet in a virtual ceremony across multiple time zones.

    Chief negotiators and senior officials from member countries agreed Wednesday that Britain has met the high bar to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), four people familiar with the talks told POLITICO.

    Negotiations are “done” and Britain’s accession is “all agreed [and] confirmed,” said a diplomat from one member nation. They were granted anonymity as they were unauthorized to discuss deliberations.

    The U.K. will be the first new nation to join the pact since it was set up in 2018. Its existing members are Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and Canada.

    Britain’s accession means it has met the high standards of the deal’s market access requirements and that it will align with the bloc’s sanitary and phytosanitary standards as well as provisions like investor-state dispute settlement. The resolution of a spat between the U.K. and Canada over agricultural market access earlier this month smoothed the way to joining up.

    Member states have been “wary” of the “precedent-setting nature” of Britain’s accession, a government official from a member nation said, as China’s application to join is next in the queue. That makes it in the U.K.’s interests to ensure acceding parties provide ambitious market access offers, they added.

    Trade ministers from the bloc will meet late Thursday in Britain, or early Friday for some member nations in Asia, “to put the seal on it all,” said the diplomat quoted at the top. The deal will be signed at a later time as the text needs to be legally verified and translated into various languages — including French in Canada. “That takes time,” they said.

    Speaking Wednesday afternoon, Prime Minister Rishi Sunak’s spokesperson said: “Negotiations have been proceeding well on CPTPP, and ministers are due to have discussions with their counterparts later this week.”

    Any update will, they added, provided at the “earliest possible opportunity.”

    Graham Lanktree

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  • S Korea appeals ruling to compensate Vietnam War massacre victim

    S Korea appeals ruling to compensate Vietnam War massacre victim

    A court in Seoul had ruled that Nguyen Thi Thanh be compensated for injuries sustained during a mass killing of Vietnamese civilians in 1968.

    South Korea’s government has appealed against a court order to pay compensation to a Vietnamese woman who was the victim of atrocities perpetrated by South Korean troops during the Vietnam War in the 1960s.

    The government appealed against a decision by a court in Seoul last month that had ordered the state to pay 30 million won ($22,730) to Nguyen Thi Thanh, 63, in compensation for injuries sustained when she survived a mass killing of civilians by South Korean troops in 1968.

    An estimated 300,000 South Korean soldiers fought alongside US forces in Vietnam and the awarding of compensation to Thanh marked the first legal acknowledgement of South Korea’s liability for atrocities committed by its forces during the bloody conflict.

    “We will fully cooperate with the trial proceedings under continued consultations with related agencies to receive an appellate ruling based on substantial truth,” the country’s Ministry of Defence said in a statement to the Reuters news agency.

    Thanh was just eight years old when South Korean marines swept through her village of Phong Nhi in central Vietnam on February 12, 1968, killing more than 70 unarmed civilians, including five members of Thanh’s family.

    She sustained a gunshot wound to her stomach during the rampage, in which her mother and two siblings died, requiring her to spend almost a year in hospital recovering.

    South Korean troops of the White Horse Division with three Vietnamese prisoners during the war in Vietnam in 1966 [File: Hong/AP Photo]

    The Seoul Central District Court said in its February 7 ruling on the case that the killing of Vietnamese villagers by the marines was “a clearly illegal act”.

    “It is acknowledged that the plaintiff’s family members died at the site and she sustained serious wounds … from the shooting by marine troops,” the court said, according to South Korea’s Yonhap News Agency.

    South Korea’s Defence Minister Lee Jong-Sup responded to the court ruling last month stating that his ministry was certain there were “absolutely no massacres committed by our troops” during the Vietnam War.

    The court’s decision to compensate the victim had damaged the honour of South Korean soldiers, he said.

    “We cannot agree with the ruling … We will hold discussions with related agencies to determine our next legal step,” he added at the time, foreshadowing the appeal announced on Thursday.

    South Korean troops have been implicated in a number of mass killings during the conflict in Vietnam with one study estimating that thousands of innocent Vietnamese may have been killed by South Korea’s forces.

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  • Who blew up Nord Stream?

    Who blew up Nord Stream?

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    Nearly six months on from the subsea gas pipeline explosions, which sent geopolitical shockwaves around the world in September, there is still no conclusive answer to the question of who blew up Nord Stream.

    Some were quick to place the blame squarely at Russia’s door — citing its record of hybrid warfare and a possible motive of intimidation, in the midst of a bitter economic war with Europe over gas supply.

    But half a year has passed without any firm evidence for this — or any other explanation — being produced by the ongoing investigations of authorities in three European countries.

    Since the day of the attack, four states — Russia, the U.S., Ukraine and the U.K. — have been publicly blamed for the explosions, with varying degrees of evidence.

    Still, some things are known for sure.

    As was widely assumed within hours of the blast, the explosions were an act of deliberate sabotage. One of the three investigations, led by Sweden’s Prosecution Authority, confirmed in November that residues of explosives and several “foreign objects” were found at the “crime scene” on the seabed, around 100 meters below the surface of the Baltic Sea, close to the Danish Island of Bornholm.

    Now two new media reports — one from the New York Times, the other a joint investigation by German public broadcasters ARD and SWR, plus newspaper Die Zeit — raised the possibility that a pro-Ukrainian group — though not necessarily state-backed — may have been responsible. On Wednesday, the German Prosecutor’s Office confirmed it had searched a ship in January suspected of transporting explosives used in the sabotage, but was still investigating the seized objects, the identities of the perpetrators and their possible motives.

    In the information vacuum since September, various theories have surfaced as to the culprit and their motive:

    Theory 1: Putin, the energy bully

    In the days immediately after the attack, the working assumption of many analysts in the West was that this was a brazen act of intimidation on the part of Vladimir Putin’s Kremlin.

    Mykhailo Podolyak, an adviser to Volodymyr Zelenskyy, spelt out the hypothesis via his Twitter feed on September 27 — the day after the explosions were first detected. He branded the incident “nothing more [than] a terrorist attack planned by Russia and act of aggression towards the EU” linked to Moscow’s determination to provoke “pre-winter panic” over gas supplies to Europe.

    Polish Prime Minister Mateusz Morawiecki also hinted at Russian involvement. Russia denied responsibility.

    The Nord Stream pipes are part-owned by Russia’s Gazprom. The company had by the time of the explosions announced an “indefinite” shutdown of the Nord Stream 1 pipes, citing technical issues which the EU branded “fallacious pretences.” The new Nord Stream 2 pipes, meanwhile, had never been brought into the service. Within days of Gazprom announcing the shutdown in early September, Putin issued a veiled threat that Europe would “freeze” if it stuck to its plan of energy sanctions against Russia.

    But why blow up the pipeline, if gas blackmail via shutdowns had already proved effective? Why end the possibility of gas ever flowing again?

    Simone Tagliapietra, energy specialist and senior fellow at the Bruegel think tank, said it was possible that — if it was Russia — there may have been internal divisions about any such decision. “At that point, when Putin had basically decided to stop supplying [gas to] Germany, many in Russia may have been against that. This was a source of revenues.” It is possible, Tagliapietra said, that “hardliners” took the decision to end the debate by ending the pipelines.

    Blowing up Nord Stream, in this reading of the situation, was a final declaration of Russia’s willingness to cut off Europe’s gas supply indefinitely, while also demonstrating its hybrid warfare capabilities. In October, Putin said that the attack had shown that “any critical infrastructure in transport, energy or communication infrastructure is under threat — regardless of what part of the world it is located” — words viewed by many in the West as a veiled threat of more to come.

    Theory 2: The Brits did it

    From the beginning, Russian leaders have insinuated that either Ukraine or its Western allies were behind the attack. Kremlin spokesman Dmitry Peskov said two days after the explosions that accusations of Russian culpability were “quite predictable and predictably stupid.” He added that Moscow had no interest in blowing up Nord Stream. “We have lost a route for gas supplies to Europe.”

    Then a month on from the blasts, the Russian defense ministry made the very specific allegation that “representatives of the U.K. Navy participated in planning, supporting and executing” the attack. No evidence was given. The same supposed British specialists were also involved in helping Ukraine coordinate a drone attack on Sevastopol in Crimea, Moscow said.  

    The U.K.’s Ministry of Defence said the “invented” allegations were intended to distract attention from Russia’s recent defeats on the battlefield. In any case, Moscow soon changed its tune.

    Theory 3: U.S. black ops

    In February, with formal investigations in Germany, Sweden and Denmark still yet to report, an article by the U.S. investigative journalist Seymour Hersh triggered a new wave of speculation. Hersh’s allegation: U.S. forces blew up Nord Stream on direct orders from Joe Biden.

    The account — based on a single source said to have “direct knowledge of the operational planning” — alleged that an “obscure deep-diving group in Panama City” was secretly assigned to lay remotely-detonated mines on the pipelines. It suggested Biden’s rationale was to sever once and for all Russia’s gas link to Germany, ensuring that no amount of Kremlin blackmail could deter Berlin from steadfastly supporting Ukraine.

    Hersh’s article also drew on Biden’s public remarks when, in February 2022, shortly before Russia’s full-scale invasion, he told reporters that should Russia invade “there will be no longer Nord Stream 2. We will bring an end to it.”

    The White House described Hersh’s story as “utterly false and complete fiction.” The article certainly included some dubious claims, not least that NATO Secretary General Jens Stoltenberg has “cooperated with the American intelligence community since the Vietnam War.” Stoltenberg, born in 1959, was 16 years old when the war ended.

    Russian leaders, however, seized on the report, citing it as evidence at the U.N. Security Council later in February and calling for an U.N.-led inquiry into the attacks, prompting Germany, Denmark and Sweden to issue a joint statement saying their investigations were ongoing.

    Theory 4: The mystery boatmen

    The latest clues — following reports on Tuesday from the New York Times and German media — center on a boat, six people with forged passports and the tiny Danish island of Christiansø.

    According to these reports, a boat that set sail from the German port of Rostock, later stopping at Christiansø, is at the center of the Nord Stream investigations.

    Germany’s federal prosecutor confirmed on Wednesday that a ship suspected of transporting explosives had been searched in January — and some of the 100 or so residents of tiny Christiansø told Denmark’s TV2 that police had visited the island and made inquiries. Residents were invited to come forward with information via a post on the island’s Facebook page.

    Both the New York Times and the German media reports suggested that intelligence is pointing to a link to a pro-Ukrainian group, although there is no evidence that any orders came from the Ukrainian government and the identities of the alleged perpetrators are also still unknown.

    Podolyak, Zelenskyy’s adviser, tweeted he was enjoying “collecting amusing conspiracy theories” about what happened to Nord Stream, but that Ukraine had “nothing to do” with it and had “no information about pro-Ukraine sabotage groups.”

    Meanwhile, Germany’s Defense Minister Boris Pistorius warned against “jumping to conclusions” about the latest reports, adding that it was possible that there may have been a “false flag” operation to blame Ukraine.

    The Danish Security and Intelligence Service said only that their investigation was ongoing, while a spokesperson for Sweden’s Prosecution Authority said information would be shared when available — but there was “no timeline” for when the inquiries would be completed.

    The mystery continues.

    Charlie Cooper

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  • Britain’s semiconductor plan goes AWOL as US and EU splash billions

    Britain’s semiconductor plan goes AWOL as US and EU splash billions

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    LONDON — As nations around the world scramble to secure crucial semiconductor supply chains over fears about relations with China, the U.K. is falling behind.

    The COVID-19 pandemic exposed the world’s heavy reliance on Taiwan and China for the most advanced chips, which power everything from iPhones to advanced weapons. For the past two years, and amid mounting fears China could kick off a new global security crisis by invading Taiwan, Britain’s government has been readying a plan to diversify supply chains for key components and boost domestic production.

    Yet according to people close to the strategy, the U.K.’s still-unseen plan — which missed its publication deadline last fall — has suffered from internal disconnect and government disarray, setting the country behind its global allies in a crucial race to become more self-reliant.

    A lack of experience and joined-up policy-making in Whitehall, a period of intense political upheaval in Downing Street, and new U.S. controls on the export of advanced chips to China, have collectively stymied the U.K.’s efforts to develop its own coherent plan.

    The way the strategy has been developed so far “is a mistake,” said a former senior Downing Street official.

    Falling behind

    During the pandemic, demand for semiconductors outstripped supply as consumers flocked to sort their home working setups. That led to major chip shortages — soon compounded by China’s tough “zero-COVID” policy. 

    Since a semiconductor fabrication plant is so technologically complex — a single laser in a chip lithography system of German firm Trumpf has 457,000 component parts — concentrating manufacturing in a few companies helped the industry innovate in the past.

    But everything changed when COVID-19 struck.

    “Governments suddenly woke up to the fact that — ‘hang on a second, these semiconductor things are quite important, and they all seem to be concentrated in a small number of places,’” said a senior British semiconductor industry executive.

    Beijing’s launch of a hypersonic missile in 2021 also sent shivers through the Pentagon over China’s increasing ability to develop advanced AI-powered weapons. And Russia’s invasion of Ukraine added to geopolitical uncertainty, upping the pressure on governments to onshore manufacturers and reduce reliance on potential conflict hotspots like Taiwan.

    Against this backdrop, many of the U.K.’s allies are investing billions in domestic manufacturing.

    The Biden administration’s CHIPS Act, passed last summer, offers $52 billion in subsidies for semiconductor manufacturing in the U.S. The EU has its own €43 billion plan to subsidize production — although its own stance is not without critics. Emerging producers like India, Vietnam, Singapore and Japan are also making headway in their own multi-billion-dollar efforts to foster domestic manufacturing.

    US President Joe Biden | Samuel Corum/Getty Images

    Now the U.K. government is under mounting pressure to show its own hand. In a letter to Prime Minister Rishi Sunak first reported by the Times and also obtained by POLITICO, Britain’s semiconductor sector said its “confidence in the government’s ability to address the vital importance of the industry is steadily declining with each month of inaction.”

    That followed the leak of an early copy of the U.K.’s semiconductor strategy, reported on by Bloomberg, warning that Britain’s over-dependence on Taiwan for its semiconductor foundries makes it vulnerable to any invasion of the island nation by China.  

    Taiwan, which Beijing considers part of its territory, makes more than 90 percent of the world’s advanced chips, with its Taiwan Semiconductor Manufacturing Company (TSMC) vital to the manufacture of British-designed semiconductors.

    U.S. and EU action has already tempted TSMC to begin building new plants and foundries in Arizona and Germany.

    “We critically depend on companies like TSMC,” said the industry executive quoted above. “It would be catastrophic for Western economies if they couldn’t get access to the leading-edge semiconductors any more.”

    Whitehall at war

    Yet there are concerns both inside and outside the British government that key Whitehall departments whose input on the strategy could be crucial are being left out in the cold.

    The Department for Digital, Culture, Media and Sport (DCMS) is preparing the U.K.’s plan and, according to observers, has fiercely maintained ownership of the project. DCMS is one of the smallest departments in Whitehall, and is nicknamed the ‘Ministry of Fun’ due to its oversight of sports and leisure, as well as issues related to tech.

    “In other countries, semiconductor policies are the product of multiple players,” said Paul Triolo, a senior vice president at U.S.-based strategy firm ASG. This includes “legislative support for funding major subsidies packages, commercial and trade departments, R&D agencies, and high-level strategic policy bodies tasked with things like improving supply chain resilience,” he said.

    “You need all elements of the U.K.’s capabilities. You need the diplomatic services, the security services. You need everyone working together on this,” said the former Downing Street official quoted above. “There are huge national security aspects to this.”

    The same person said that relying on “a few [lower] grade officials in DCMS — officials that don’t see the wider picture, or who don’t have either capability or knowledge,” is a mistake. 

    For its part, DCMS rejected the suggestion it is too closely guarding the plan, with a spokesperson saying the ministry is “working closely with industry experts and other government departments … so we can protect and grow our domestic sector and ensure greater supply chain resilience.”

    The spokesperson said the strategy “will be published as soon as possible.”

    But businesses keen for sight of the plan remain unconvinced the U.K. has the right team in place for the job.

    Key Whitehall personnel who had been involved in project have now changed, the executive cited earlier said, and few of those writing the strategy “have much of a background in the industry, or much first-hand experience.”

    Progress was also sidetracked last year by lengthy deliberations over whether the U.K. should block the sale of Newport Wafer Fab, Britain’s biggest semiconductor plant, to Chinese-owned Nexperia on national security grounds, according to two people directly involved in the strategy. The government eventually announced it would block the sale in November.

    And while a draft of the plan existed last year, it never progressed to the all-important ministerial “write-around” process — which gives departments across Whitehall the chance to scrutinize and comment upon proposals.

    Waiting for budget day

    Two people familiar with current discussions about the strategy said ministers are now aiming to make their plan public in the run-up to, or around, Chancellor Jeremy Hunt’s March 15 budget statement, although they stressed that timing could still change.

    Leaked details of the strategy indicate the government will set aside £1 billion to support chip makers. Further leaks indicate this will be used as seed money for startups, and for boosting existing firms and delivering new incentives for investors.

    U.K. Chancellor Jeremy Hunt | Leon Neal/Getty Images

    There is wrangling with the Treasury and other departments over the size of these subsidies. Experts also say it is unlikely to be ‘new’ money but diverted from other departments’ budgets.

    “We’ll just have to wait for something more substantial,” said a spokesperson from one semiconductor firm commenting on the pre-strategy leaks.

    But as the U.K. procrastinates, key British-linked firms are already being hit by the United States’ own fast-evolving semiconductor strategy. U.S. rules brought in last October — and beefed up in recent days by an agreement with the Netherlands — are preventing some firms from selling the most advanced chip designs and manufacturing equipment to China.

    British-headquartered, Japanese-owned firm ARM — the crown jewel of Britain’s semiconductor industry, which sells some designs to smartphone manufacturers in China — is already seeing limits on what it can export. Other British firms like Graphcore, which develops chips for AI and machine learning, are feeling the pinch too.

    “The U.K. needs to — at pace — understand what it wants its role to be in the industries that will define the future economy,” said Andy Burwell, director for international trade at business lobbying group the CBI.

    Where do we go from here?

    There are serious doubts both inside and outside government about whether Britain’s long-awaited plan can really get to the heart of what is a complex global challenge — and opinion is divided on whether aping the U.S. and EU’s subsidy packages is either possible or even desirable for the U.K.

    A former senior government figure who worked on semiconductor policy said that while the U.K. definitely needs a “more coherent worked-out plan,” publishing a formal strategy may actually just reveal how “complicated, messy and beyond our control” the issue really is.

    “It’s not that it is problematic that we don’t have a strategy,” they said. “It’s problematic that whatever strategy we have is not going to be revolutionary.” They described the idea of a “boosterish” multi-billion-pound investment in Britain’s own fabricator industry as “pie in the sky.”

    The former Downing Street official said Britain should instead be seeking to work “in collaboration” with EU and U.S. partners, and must be “careful to avoid” a subsidy war with allies.

    The opposition Labour Party, hot favorites to form the next government after an expected 2024 election, takes a similar view. “It’s not the case that the U.K. can do this on its own,” Shadow Foreign Secretary David Lammy said recently, urging ministers to team up with the EU to secure its supply of semiconductors.

    One area where some experts believe the U.K. may be able to carve out a competitive advantage, however, is in the design of advanced semiconductors.

    “The U.K. would probably be best placed to pursue support for start-up semiconductor design firms such as Graphcore,” said ASG’s Triolo, “and provide support for expansion of capacity at the existing small number of companies manufacturing at more mature nodes” such as Nexperia’s Newport Wafer Fab.

    Ministers launched a research project in December aimed at tapping into the U.K. semiconductor sector’s existing strength in design. The government has so far poured £800 million into compound semiconductor research through universities, according to a recent report by the House of Commons business committee.

    But the same group of MPs wants more action to support advanced chip design. Burwell at the CBI business group said the U.K. government must start “working alongside industry, rather than the government basically developing a strategy and then coming to industry afterwards.”

    Right now the government is “out there a bit struggling to see what levers they have to pull,” said the senior semiconductor executive quoted earlier.

    Under World Trade Organization rules, governments are allowed to subsidize their semiconductor manufacturing capabilities, the executive pointed out. “The U.S. is doing it. Europe’s doing it. Taiwan does it. We should do it too.”

    This story has been updated. Cristina Gallardo contributed reporting.

    Graham Lanktree and Annabelle Dickson

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  • Boy, 10, declared dead after falling into 115-feet deep construction site hole in Vietnam

    Boy, 10, declared dead after falling into 115-feet deep construction site hole in Vietnam

    The massive race to rescue a young boy in Vietnam who fell more than 100 feet into a concrete hole at a construction site is approaching its end. On Tuesday, state media reported that the 10-year-old boy was pronounced dead on Wednesday afternoon. 

    Thái Lý Hạo Nam had reportedly fallen into the hole on New Year’s Eve after he and three other children entered the construction site in the southern Dong Thap province to find scrap iron. The hole was just under 10 inches wide, Việt Nam News, which is published by the state-run Vietnam News Agency, reported. 

    According to the outlet, authorities said they determined the boy had died after assessing the details of the incident. The boy has now been in the hole for five days and the depth of the hole likely caused injuries, Việt Nam News said. Now, rescuers are attempting to get his body as soon as possible. 

    Reuters reported earlier this week that the boy had been heard crying for help shortly after falling into the pile, but was not responding to rescuers on Monday. Officials had attempted to pump oxygen down into the shaft to help the boy breathe as well, according to the BBC, as roughly 100 soldiers attempted to save him. Rescuers spent roughly 100 hours trying to save the boy, local news agency VN Express said. 

    Images from the scene show the construction site filled with debris and mud. Workers were building a bridge at the site. VN Express previously reported that rescuers were using a 62-foot metal pipe in their attempts to rescue the boy from the muddy hole. The director of the province’s Department of Transport said that there are warning signs posted around the site, but that officials are going to investigate whether there were safety violations at play, VN Express said.

    The 10-year-old’s father was taken to the site prior to Wednesday’s press briefing.

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  • 18 of Asia’s most underrated places | CNN

    18 of Asia’s most underrated places | CNN

    Editor’s Note: Sign up for Unlocking the World, CNN Travel’s weekly newsletter. Get news about destinations opening, inspiration for future adventures, plus the latest in aviation, food and drink, where to stay and other travel developments.



    CNN
     — 

    Comprising more than 40 countries, Asia can’t be summed up easily.

    The classics are classics for a reason – from the awe-inspiring architecture of Angkor Wat and the Taj Mahal to the buzzy metropolises of Tokyo and Hong Kong and the beaches of Bali and Phuket, it’s impossible for any traveler to find something not to their liking.

    But for the travelers who are fortunate enough to have time to dig a little bit deeper, there are less-crowded, equally-rewarding treasures to be found.

    CNN Travel tapped into our network of colleagues and contributors to ask them where the locals go. Here’s what they had to say.

    When it comes to great Malaysian food cities, most people think of Penang. But that’s only because they haven’t been to Ipoh.

    The capital city of Perak state, Ipoh’s location between Kuala Lumpur and Georgetown makes it an ideal stop for any Malaysian road trip. It’s also the gateway to Cameron Highlands, a district known for its cool weather and tea plantations.

    Ipoh’s food and world famous white coffee are enough reasons to visit but there are also magnificent limestone hills and caves that are home to unique temples as well as amazing hidden bars.

    Visit the Chinese temples of Perak Tong, Sam Poh Tong and Kek Lok Tong and be blown away by intricate stone carvings and bronze statues of Chinese deities surrounded by stalactites and stalagmites. Ipoh’s colonial legacy is also evident in its architecture: from its Railway Station to the Birch Clock Tower, town hall and the Old Post Office.

    Heather Chen, Asia writer

    As popular as Thailand is among international tourists, the country’s northeast – collectively referred to as Isaan – is usually overlooked.

    But for those in search of a less-traveled destination that includes historic architecture, dramatic landscapes and culinary delights, Isaan ticks all the right boxes, and then some.

    Visitors will find it’s one of the most welcoming destinations in Asia and easily accessible, thanks to excellent infrastructure that includes several domestic airports offering daily flights to Bangkok and a range of upmarket hotels.

    The only challenge is deciding which highlights to experience. Made up of 20 provinces, Isaan shares borders with Laos and Cambodia, and their influences can be found in the region’s cuisine, language, historic sites and festivals.

    Attractions include the ancient Khmer ruins of Phenom Rung in Buriram, mountainous national parks in Loei, the 75 million-year-old “Three Whale Rock” in Bueng Kam and Bronze Age artifacts in the UNESCO-listed Ban Chiang Archeological Site in Udon Thani.

    And then there’s the food. Isaan cuisine, now prevalent on menus in Thai restaurants around the world, includes refreshing som tom (payaya salad), tangy Sai Grok Isaan (northeastern sausage) and larb, a flavorful minced-meat salad.

    – Karla Cripps, senior producer, CNN Travel

    Most people travel to Leshan city for the sole purpose of visiting the Giant Buddha. The world’s biggest and tallest ancient Buddha statue is indeed stunning, but this Sichuan city deserves much more than a side trip from Chengdu.

    The Mount Emei scenic area – home to the Giant Buddha – is also of great spiritual and cultural importance as the birthplace of Buddhism in China. Many ancient temples are scattered and ingeniously built on the cliffs of the pristine dense forest.

    On top of sightseeing, Leshan is a hidden foodie paradise with local Sichuanese saying “eating in Sichuan, tasting in Leshan.” This city is where Chengdu residents come for authentic bites of iconic Sichuan cuisine: chilled bobo chicken, jellied tofu, Qiaojiao beef, steamed meat with rice powder and more.

    – Serenitie Wang, producer, video programming

    Skardu district, in Pakistan’s Gilit Baltistan region, is a land of stark gigantic beauty, with many of the highest mountains on the planet – most famously K2 – concentrated in this one area.

    Deosai National Park sits on the second highest plateau in the world. It is a riot of color, alive with birds and butterflies. With no ambient city lights the stars are exceptionally bright, with the milky way looking so close it could be plucked out from the sky.

    In contrast, there’s the Sarfaranga Desert. The world’s highest cold desert, it’s filled with diamond-white sands and ebony mountains.

    Skardu has been inhabited for centuries and is studded with ancient Buddhist stupas and carvings, beautifully preserved mosques from the Middle Ages and shrines of Sufi saints.

    The Serena hotel chain has transformed the stunning Shigar Fort and Khaplu Palace into two of the country’s best kept hotels. Both are filled with gardens and climate friendly wooden architecture while serving regional food like Mamtu dumplings and grilled trout.

    Sophia Saifi, producer, Pakistan

    Nikko is just 150 kilometers (93 miles) north of Tokyo, but it feels like another world.

    This small city is one of the most important sites in Japan for Shinto culture, with the ornate, gold-dripping Toshogu Shrine – a UNESCO World Heritage site – its centerpiece.

    If peace is what you’re after, Nikko is the place to find it. Nikko National Park comprises 443 square miles across three prefectures, with dramatic waterfalls, groves of fir and cedar trees, finely carved gates and rocky outcroppings among the things to experience.

    The park is also home to some of Japan’s famous natural hot springs, making Nikko an ideal autumn or winter destination.

    While the area has long been popular with Tokyo urbanites looking for a bucolic weekend escape, Nikko is beginning to land on the radar of more international tourists – a Ritz Carlton opened there just before the pandemic.

    Lilit Marcus, digital producer, CNN Travel

    With its fresh mountain air and pine forests in the Central Highlands of Vietnam, Dalat is a popular destination for local Vietnamese that isn’t as well known among international travelers.

    At 1,500 meters above sea level, the city’s cooler weather is a welcome reprieve from the tropical humidity found elsewhere in the Southeast Asian country.

    Centered around the romantic Xuan Huong Lake, Dalat boasts everything from French colonial architecture – a holdover from its days as a hill station – to the “Crazy House,” the Seussian creation of architect Đặng Việt Nga, with its twisting stairwells and whimsical sculptures. Plentiful waterfalls and a vibrant flower industry mean that delights abound in the city for honeymooners and nature lovers.

    Dan Tham, producer, Global Features

    Urban Davao City is beloved for its night market.

    Davao City is more than just a provincial capital of the southernmost part of the Philippines — it’s a true mosaic of Filipino cultures seen nowhere else across the country.

    There’s food for everybody at the Roxas Night Market, which is lined with barbecue and grilled seafood, along with humble yet complex delicacies such as the fresh seaweed salad called lato and hearty law-uy vegetable soup. Nothing represents Davao more than pungent durians, which grow in abundance across the region as well as pineapples, bananas and sugarcane – served in all forms from shakes to pies.

    The city takes pride in its indigenous roots and celebrates the Kadwayan Festival in August to showcase local textiles, woodwork, song and dance from 11 tribes that reign from the mountains and its surrounding sea.

    A ferry ride away from the city will transport you to luxurious Samal Island, best known for its pristine beaches and pearl farms. Take a roadtrip along the palm tree-lined paths that lead to the surfer spot of Mati, or perhaps a detour to Mount Apo, the highest mountain and volcano in the Philippines.

    – Kathleen Magramo, breaking news writer

    The northeast Indian state of Meghalaya, which translates to “abode in the clouds,” boasts some of the country’s most peaceful and lush landscapes. As it requires a permit, it can be challenging to visit. But it’s worth it.

    Meghalaya is home to the towns of Cherrapunji and Mawlynnong. Both hold records for being the wettest places on Earth, having received nearly 12,000 mm (472 inches) of rain a year. The results are verdant, leafy forests with rivers and creeks running through that can be explored through crossing the state’s famous bridges.

    Built by locals out of the roots of ficus trees, some are as old as 500 years and symbolize the self-sufficiency of the Khasi indigenous tribe and their relationship with the forest. The living root bridges, known as “jingkieng jri” in the Khasi language, can be found in over 70 villages and continue to be used and nurtured by locals to keep them alive for future generations.

    In 2022, they were added to UNESCO’s tentative list of World Heritage sites. The most famous living root bridges are the Umshiang Double Decker root bridge in Nongriat village, south of Cherrapunji, and one in Riwai near Mawlynnong, certified as the “cleanest village in Asia” since 2003 by UNESCO.

    – Manveena Suri, freelance producer

    Palau Ubin is just a short ferry ride away from mainland Singapore.

    Thought Singapore was all about parties and skyscrapers? Think again. Located offshore from its northeast Changi region is Pulau Ubin (Malay for “granite island”), a nature lover’s paradise with jungle trails, mangrove wetlands and majestic quarries.

    Getting around the island is a breeze: In true Singaporean style, everything is well-marked, from jungle trails to concrete footpaths, but the island still remains very untouched.

    Mountain biking is particularly popular, especially on weekdays when crowds are few. But Ubin really comes to life on weekends – when families, couples and nature lovers descend, hoping to catch a glimpse of old Singapore.

    One of the most popular attractions on the island is Chek Jawa, a saltwater mangrove wetland rich in marine life. A well-built wooden boardwalk runs through the mangrove, allowing visitors to observe plant and marine life such as sea sponges, octopuses, starfish and cuttlefish, at close range.

    H.C.

    Indonesia is comprised of several thousand islands – and, in the case of Samosir, an island on a lake within an island.

    Samosir Island is a volcanic island in North Sumatra’s Lake Toba. one of the world’s largest crater lakes.

    The Batak tribe calls this land their home, and you can meet these locals as they sell handicrafts from their villages along the waterfront, where their houses are built from wooden beams lashed to stones and have tall red roofs that resemble a ship’s sails.

    As Samosir is several hours’ drive and ferry ride from the closest airport, opt to spend the night in a homestay and support the community by purchasing ulos, a UNESCO-recognized woven, naturally dyed cloth that is used in every important facet of Betak life.

    – L.M.

    Northern Laos – home to elegant Luang Prabang and adventure-loving Vang Vieng – get the lion’s share of attention. But head south for a different kind of experience in Pakse, where two rivers converge in the country’s second biggest city.

    Pakse is diverse, pulsing and modern. It has buildings left over from the days of French colonialism, but these days Vietnamese and Chinese communities bring their foods, traditions and references alongside the existing Lao presence.

    While in town, head up to the giant gold Buddha at Wat Pho Salao, stroll along the Mekong at sunset, and then go off to the Bolaven Plateau to get deeper into jungle.

    – L.M.

    India casts a long tourism shadow over its neighbors, including Bangladesh. But this smaller nation has outsized offerings many travelers to South Asia might not realize. This is especially true in architecture, history, nature and food.

    In the capital of Dhaka, the Ahsan Manzil is an ornate, stunning vision in pink. Set on the banks of the Buriganga River, it was finished in 1872 during the British colonial era as a palace for the local rulers of the time. It is now a popular museum.

    For a sample of Mughal Empire architectural splendor, check out the incomplete Lalbagh Fort.

    And if you’d like to visit a mosque, consider the exquisite Star Mosque (Tara Masjid), renowned for hundreds of blue stars on its gleaming white domes.

    – Forrest Brown, freelance writer and producer

    Lijiang's old town, in Yunnan province, is popular with Chinese domestic travelers.

    Even though China is still closed to international tourists, Yunnan province has already welcomed about 350 million domestic visitors in the first half of 2022 alone.

    If you’d like to see the historical Yunnan like an experienced local, head to Tengchong.

    Bordering Myanmar in the west of Yunnan, Tengchong has been a critical trading stop on the historic Silk Route and Tea Horse Road in the past.

    Today, many local travelers first visit Heshun, an old town built surrounding a mountain and a lake. The Double Rainbow stone arch bridges, the Laundry Pavilion and the 98-year-old Heshun Library – the biggest rural public library in China – are some of the must-sees when visiting the cozy village.

    Yinxing (Gingko) Village in the northern side of Tengchong is known for its thousands of ginkgo trees, turning the village golden yellow every autumn.

    – Maggie Hiufu Wong, freelance CNN Travel writer

    The Gogunsan islands – meaning “an archipelago of mountains” in Korean – have been a popular summer destination for locals seeking a break from city life.

    A group of 63 islands on South Korea’s west coast, the islands offer a picturesque view of verdant hills scattered amid gentle waters.

    The world’s longest seawall and a series of bridges connect the islands to the mainland, making them an especially attractive destination for those behind wheels. The landscape invites visitors to light hikes and swim afterwards.

    Jake Kwon, newsdesk producer

    Lan Ha Bay is a less-visited waterwat in northeastern Vietnam.

    Ha Long Bay in northern Vietnam is no secret – the UNESCO-listed waterway has long been popular with backpackers and luxury travelers alike.

    But visitors who want to ply the waters with a lot fewer neighbors should head to Lan Ha, south of Ha Long Bay. Like its more famous sibling, Lan Ha Bay is a stretch of shimmering water broken up by limestone (karst) islands that can be enjoyed by day trip (kayak, canoe) or overnight (cruise ship, junk boat).

    Most travelers get here by bus or car from Hanoi or Haiphong, and it’s easy to set up door-to-door service with tour companies in advance.

    Leave from Cat Ba Island to explore Lan Ha Bay’s grottoes, caves and white-sand beaches.

    – L.M.

    On the southern tip of Taiwan lies Kenting, a sunny, laid back peninsula known for its white sandy beach, boisterous night market and chill vibe.

    Take a dip at Baishawan (White Sand Bay); scenes from the “Life of Pi” were filmed here on Wanlitong Beach, a hotspot for snorkeling teeming with marine life.

    Take a stroll at the Eluanbi Park, where a towering lighthouse stands – one of the top eight iconic landmarks on the island – and walk down to the southernmost tip of Taiwan, a perfect spot to watch the sunset.

    No visit to Kenting is complete without a stop at Longpan Park. Take in the panoramic view of the rugged coastline, the majestic cliffs and the grassy hills that together form a jaw-dropping landscape. Given the open space and the lack of lighting, the park is also popular with sunset watchers and stargazers.

    – Wayne Chang, China news desk producer

    Nestled under a canopy of trees, the temple ruins of Banteay Chhmar offer a glimpse into the might of the Khmer Empire – without the hordes of tourists.

    Completed in the late 12th century by Jayavarman VII, the “Citadel of Cats” is in northwest Cambodia, a few hours’ drive from Siem Reap, home to Angkor Wat. Banteay Chhmar is located 20 kilometers from the Thai border and is accessible by taxi from Sisophon, the fourth largest city in Cambodia.

    The massive complex comprises eight temples, featuring stone-faced towers adorned with mysterious smiles. There are also remarkably well-preserved bas-reliefs, depicting religious and military stories. Visitors to this remote, less-traveled part of Cambodia are rewarded with a sense of adventure and quiet.

    D.T.

    Most foreign tourists head to Sri Lanka’s beautiful south coast or into its central tea country, both of which are fairly easy to reach from the main city of Colombo and beloved by Instagrammers who come to ride the famous rails.

    But the northern patch of the island is worth the sometimes-challenging car or bus trip to get there.

    Jaffna is the primary home of the country’s Tamil-speaking population and still has glimmers of its Indian and Dutch colonial past, resulting in a fascinating, complex culture.

    Start with architecture: the ornate, bright gold Nallur Kandaswamy Kovil Hindu temple and sprawling white Colonial-era Jaffna Library are both exceptional.

    Then, indulge in the food: bananas and mangoes fresh off the trees combine with curries, pickles and rice dishes for filling, inexpensive meals.

    – L.M.

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  • Global coal usage rises to new high in 2022, energy agency says

    Global coal usage rises to new high in 2022, energy agency says

    Coal use across the world is set to reach a new record this year amid persistently high demand for the heavily polluting fossil fuel, the International Energy Agency said Friday.

    The Paris-based agency said in a new report that while coal use grew by only 1.2% in 2022, the increase pushed it to an all-time high of more than 8 billion metric tons, beating the previous record set in 2013.

    “The world’s coal consumption will remain at similar levels in the following years in the absence of stronger efforts to accelerate the transition to clean energy,” the agency said, noting that “robust demand” in emerging Asian economies would offset declining use in mature markets.

    “This means coal will continue to be the global energy system’s largest single source of carbon dioxide emissions by far,” the IEA said.

    The use of coal and other fossil fuels needs to be cut drastically to cap global warming at 1.5 degrees Celsius (2.7 degrees Fahrenheit) this century. Experts say the ambitious target, which governments agreed to in the 2015 Paris climate accord, will be hard to meet given that average temperatures worldwide have already risen by 1.2 degrees Celsius since pre-industrial times.


    Drought disrupts Mississippi River shipping

    02:31

    The IEA said higher prices for natural gas due to Russia’s war in Ukraine have led to increased reliance on coal for generating power.

    “The world is close to a peak in fossil fuel use, with coal set to be the first to decline, but we are not there yet,” Keisuke Sadamori, the agency’s director of energy markets and security, said.

    Coal use is likely to decline as countries deploy more renewable energy sources, he said.

    But China, the world’s biggest consumer of coal, said recently that it plans to boost production through 2025 to avoid a repeat of last year’s power shortages. And in Europe, which is scrambling to replace Russian energy supplies following the invasion of Ukraine, somecountries have re-opened shuttered coal-fired power plants.

    In an effort to curb growing coal use in emerging economies, South Africa, Indonesia and Vietnam have signed investment agreements with rich partner countries over the past year that will help them boost efforts to shift to renewable sources such as wind and solar.

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  • Ahead of Xi meeting, Biden calls out China

    Ahead of Xi meeting, Biden calls out China

    PHNOM PENH, Cambodia — U.S. President Joe Biden offered a full-throated American commitment to the nations of Southeast Asia on Saturday, pledging at a Cambodia summit to help stand against China’s growing dominance in the region — without mentioning the other superpower by name.

    Chinese President Xi Jinping wasn’t in the room at the Association of Southeast Asian Nations, or ASEAN, summit in Phnom Penh. But Xi hovered over the proceedings just two days before he and Biden are set to have their highly anticipated first face-to-face meeting at the G20 summit in Indonesia.

    The Biden White House has declared Xi’s nation its greatest economic and military rival of the next century and while the president never called out China directly, his message was squarely aimed at Beijing.

    “Together we will tackle the biggest issues of our time, from climate to health security to defend against significant threats to rules-based order and to threats against the rule of law,” Biden said. “We’ll build an Indo-Pacific that is free and open, stable and prosperous, resilient and secure.”

    The U.S. has long derided China’s violation of the international rules-based order — from trade to shipping to intellectual property — and Biden tried to emphasize his administration’s solidarity with a region American has too often overlooked.

    His work in Phnom Penh was meant to set a framework for his meeting with Xi — his first face-to-face with the Chinese leader since taking office — which is to be held Monday at the G20 summit of the world’s richest economies, this year being held in Indonesia on the island of Bali.

    Much of Biden’s agenda at ASEAN was to demonstrate resistance to Beijing.

    He was to push for better freedom of navigation on the South China Sea, where the U.S. believes the nations can fly and sail wherever international law allows. The U.S. had declared that China’s resistance to that freedom challenges the world’s rules-based order.

    Moreover, in an effort to crack down on unregulated fishing by China, the U.S. began an effort to use radio frequencies from commercial satellites to better track so-called dark shipping and illegal fishing. Biden also pledged to help the area’s infrastructure initiative — meant as a counter to China’s Belt and Road program — as well as to lead a regional response to the ongoing violence in Myanmar.

    But it is the Xi meeting that will be the main event for Biden’s week abroad, which comes right after his party showed surprising strength in the U.S. midterm elections, emboldening the president as he headed overseas. Biden will circumnavigate the globe, having made his first stop at a major climate conference in Egypt before arriving in Cambodia for a pair of weekend summits before going on to Indonesia.

    There has been skepticism among Asian states as to American commitment to the region over the last two decades. Former President Barack Obama took office with the much-ballyhooed declaration that the U.S. would “pivot to Asia,” but his administration was sidetracked by growing involvements in Middle Eastern wars.

    Donald Trump conducted a more inward-looking foreign policy and spent much of his time in office trying to broker a better trade deal with China, all the while praising Xi’s authoritarian instincts. Declaring China the United States’ biggest rival, Biden again tried to focus on Beijing but has had to devote an extraordinary amount of resources to helping Ukraine fend off Russia’s invasion.

    But this week is meant to refocus America on Asia — just as China, taking advantage of the vacuum left by America’s inattention, has continued to wield its power over the region.

    Biden declared that the ten nations that make up ASEAN are “the heart of my administration’s Indo-Pacific strategy” and that his time in office — which included hosting the leaders in Washington earlier this year — begins “a new era in our cooperation.” He did, though, mistakenly identify the host country as “Colombia” while offering thanks at the beginning of his speech.

    “We will build a better future, a better future we all say we want to see,” Biden said.

    Biden was only the second U.S. president to set foot in Cambodia, after Obama visited in 2012. And like Obama did then, the president on Saturday made no public remarks about Cambodia’s dark history or the United States’ role in the nation’s tortured past.

    In the 1970s, President Richard Nixon authorized a secret carpet-bombing campaign in Cambodia to cut off North Vietnam’s move toward South Vietnam. The U.S. also backed a coup that led, in part, to the rise of Pol Pot and the Khmer Rouge, a bloodthirsty guerrilla group that went on to orchestrate a genocide that resulted in the deaths of more than 1.5 million people between 1975 and 1979.

    One of the regime’s infamous Killing Fields, where nearly 20,000 Cambodians were executed and thrown in mass graves, lies just a few miles outside the center of Phnom Penh. There, a memorial featuring thousands of skulls sits as a vivid reminder of the atrocities committed just a few generations ago. White House aides said that Biden had no scheduled plans to visit.

    As is customary, Biden met with the host country’s leader at the start of the summit. Prime Minister Hun Sen, a former Khmer Rouge commander, has ruled Cambodia for decades with next to no tolerance for dissent. Opposition leaders have been jailed and killed, and his administration has been accused of widespread corruption, according to human rights groups.

    Jake Sullivan, Biden’s national security adviser, said Biden would “engage across the board in service of America’s interests and to advance America’s strategic position and our values.” He said Biden was meeting with Hun Sen because he was the leader of the host country. 

    U.S. officials said Biden urged the Cambodian leader to make a greater commitment to democracy and “reopen civic and political space” ahead of the country’s next elections.

    Jonathan Lemire

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  • This millennial took a gamble during the pandemic. Now her startup has raised over $225 million

    This millennial took a gamble during the pandemic. Now her startup has raised over $225 million

    When the Covid pandemic was raging in 2020, much of the world was in lockdown and more turned to online shopping.

    But Chrisanti Indiana did the unexpected: she expanded her e-commerce business — offline.

    Her beauty and personal care e-commerce startup, Sociolla, had just two brick-and-mortar stores in Indonesia in 2019. By the end of 2021, that number grew “10 times” more, she said.

    “A lot of people actually told us that it’s a very bold move to actually open an offline presence, while everybody was closing their offline stores [during the pandemic],” she added. 

    But that was a “well-calculated” move for Social Bella, which operates Sociolla. 

    We know that this is the time for us to actually prepare … to make sure that after the pandemic, we can serve more and more consumers.

    Chrisanti Indiana

    Co-founder and CMO, Sociolla

    “We know that this is the time for us to actually prepare … to make sure that after the pandemic, we can serve more and more consumers,” she added. 

    Looking far ahead turned out to be the right move for the 31-year-old. Her online and offline approach transformed her e-commerce startup into a multimillion-dollar beauty conglomerate.  

    Since 2018, it has raised around $225 million, and drawn an impressive list of investors that include East Ventures, Jungle Ventures, Temasek and Pavilion Capital.  

    Indiana, the co-founder and chief marketing officer of Social Bella, tells CNBC Make It how she took her Jakarta-based startup to the next level.

    Tackling counterfeits  

    The idea for Sociolla came about in 2015, when Indiana returned home to Jakarta, after studying in Australia.  

    The makeup junkie realized that in Australia, she had easy access to a wide range of beauty products from international brands. That was a stark contrast to Indonesia.

    “There was lot of options for me, but then I came back and there’s basically none,” said Indiana. 

    “There wasn’t a platform that had it all — I had to find specific sellers on social media, ask friends who can help purchase the product for you [when they are] overseas.”

    What made matters worse for her was the online proliferation of counterfeit makeup products that were sometimes selling at “a fraction” of the original’s price. 

    I still remember vividly in my mind that there’s a lot of like sellers online, especially on social media, that claim their products are 99% authentic. What does that mean, 99% authentic?

    Chrisanti Indiana

    Co-founder and CMO, Sociolla

    “I still remember vividly in my mind that there’s a lot of like sellers online, especially on social media, that claim their products are 99% authentic. What does that mean, 99% authentic?” 

    Indeed, locally made counterfeits in Indonesia are rife, thanks to cheap labor costs and materials. According to a local report, Indonesian authorities seized illegal cosmetic products worth $9 million in 2018 — twice the previous year’s amount. 

    Seeing friends buying these products left Indiana perplexed. 

    “It’s skincare, it’s makeup. It’s something that you put on your skin. It’s just bizarre for me,” she said. 

    Sociolla has expanded into brick-and-mortar shops. It now has 47 stores in Indonesia and 16 in Vietnam.

    Social Bella

    Determined to build a space where consumers can get products that are safe and authentic, Indiana teamed up with her brother and friend to launch Social Bella, with a starting capital of $13,000.

    “Since we started, we ensure that we only work with authorized distributors or brand owners,” Indiana said. 

    Building an ‘ecosystem’

    Social Bella was founded in 2015 by Chrisanti Indiana, her brother and president Christopher Madiam (left) and CEO John Rasjid (right).

    Social Bella

    The “beauty journey” for customers goes beyond putting something in their shopping carts and checking out, said Indiana. 

    “We realized that there’s a lot of touch points that are really important … finding the right products for yourself is not just about going to the store and picking it up. You will make sure that you read the reviews, talk to your friends, or Google first,” she added. 

    “Soco makes sure that they can access tons of product reviews before they purchase products.”

    On top of that, Social Bella also runs Beauty Journal — a lifestyle website, and Lilla, an online retailer for mothers and babies.

    That’s all part of building the business “ecosystem,” as Indiana calls it.

    We want to make sure that we are scaling up and reaching more and more consumers. If Social Bella becomes a unicorn, it’s a bonus.

    “We want to … to serve more and more women, not only in beauty and personal care, but also in other industries.”

    The startup appears to be on the right track — it now boasts more than 30 million users across all its business units, said Social Bella, selling an inventory of 12,000 products from 400 brands worldwide.

    Indonesia’s next unicorn? 

    Social Bella aims to serve more female customers.

    Social Bella

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  • Hundreds of thousands evacuated as Typhoon Noru makes landfall in Vietnam’s Da Nang | CNN

    Hundreds of thousands evacuated as Typhoon Noru makes landfall in Vietnam’s Da Nang | CNN




    CNN
     — 

    Typhoon Noru made landfall near Vietnam’s popular beach resort city of Da Nang on Wednesday morning, bringing powerful winds and heavy rain as hundreds of thousands of people were evacuated.

    Noru hit Vietnam at 5 a.m. Wednesday local time, according to CNN Weather, less than 36 hours hours after it left a trail of destruction in the Philippines – where it was known as Karding.

    The typhoon weakened a little prior to making landfall, but was still equivalent to a high-end Category 2 hurricane with winds near 175 kph, or about 109 mph.

    Winds eased and the storm weakened to the equivalent of a Category 1 hurricane just before noon, according to the Joint Typhoon Warning Center. But the province of Quang Nam, home to the historic city of Hoi An and beach resort hotspot of Da Nang suffered from floods.

    More than 100,000 households with 400,000 people have been evacuated as of Tuesday, according to Viet Nam News, the English newspaper run by state-run Vietnam News Agency. About 11,000 foreign tourists and 7,000 domestic visitors are staying in the city.

    The government also said local authorities had instructed nearly 58,000 boats with 300,000 laborers to move to safe shelters.

    Pham Nguyen Duc Anh, 24, an English teacher at Teach For Viet Nam based in the Que Son district of Quang Nam province, along with his flat mate decided to stay at their neighbor’s house on Tuesday night because they feared the home would be vulnerable under the strong winds.

    When they returned to their home late Wednesday morning when the storm began to subside, they found that their roof had been partially destroyed and that water had leaked into their house, but things were not as bad as they had initially feared.

    “It was my first time here, living in the area [that is] very vulnerable to climate disasters,” he said.

    Before Noru’s arrival, Vietnamese authorities had banned vessels from the sea and asked students to stay at home.

    It will continue to bring strong winds and surges along the coast near Da Nang and is expected to weaken as it pushes inland over Southeast Asia. Central Vietnam, southern Laos, and northern Thailand face a risk of floods over the next 48 hours.

    Local authorities were asked on Tuesday to cancel unnecessary meetings to concentrate on storm prevention and control, according to Viet Nam News.

    People push a motorbike in a flooded street in Hoi An city, Quang Nam province on September 28, 2022.

    Thua Thien Hue province, home to more than 2,000 fishing ships and around 11,000 fishermen, also banned vessels from going out to sea on Sunday amid warnings the storm will bring strong winds, high waves and flooding, Viet Nam News reported.

    Vietnam’s Prime Minister Pham Minh Chinh chaired an urgent meeting with officials on Tuesday from at least eight provinces expected to be affected by the storm to discuss response efforts, Vietnam News Agency reported.

    “Ministries, branches and localities, especially the heads of such units, must further enhance their responsibilities to ensure the safety, life and property of the people and the state in the context of the weather. Climate change is becoming increasingly extreme and unusual, causing very serious consequences,” the prime minister said, according to Viet Nam News.

    Typhoon Noru left the Philippines around 8 p.m. on Monday, according to a bulletin from the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA), after barreling through with high winds and heavy rains that flooded Luzon – the country’s largest and most populated island.

    Eight people died in typhoon-related incidents, including five rescue workers, the National Disaster Risk Reduction and Management Council said on Tuesday.



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  • Apple got rich in China. Other Asian markets offer the next ‘golden opportunity’ | CNN Business

    Apple got rich in China. Other Asian markets offer the next ‘golden opportunity’ | CNN Business


    Hong Kong
    CNN
     — 

    Apple launched an online store in Vietnam this week, in another nod to the growing importance of emerging markets for the iPhone maker.

    The opening on Thursday, which followed the high-profile launch of its first physical shops in India, means consumers in the fast-growing Southeast Asian economy will be able to buy any Apple product directly for the first time.

    Markets like Vietnam, India and Indonesia are becoming more important for Apple as its growth in developed markets, including China, slows down, prompting the company to focus on places where it’s traditionally been less active.

    For decades, China was central to Apple’s extraordinary ascent to become the most valuable company on Earth, serving as a backbone for both its production and consumption. While the country remains key to Apple’s operations, the tech giant is now hedging its bets.

    Apple

    (AAPL)
    CEO Tim Cook has pointed to the company’s prospects in emerging economies, calling them bright spots in the company’s financial results. On an earnings call this month, Cook said he was “particularly pleased” with the performance in these markets during the first three months of the year.

    Apple “achieved all-time records in Mexico, Indonesia, the Philippines, Saudi Arabia, Turkey and the UAE, as well as a number of March quarter records, including in Brazil, Malaysia and India,” he told analysts.

    That came as the California-based giant also reported its second straight drop in overall quarterly revenue, prompting concerns about a broader slowdown in demand amid economic uncertainty.

    “Clearly, growth has slowed globally and thus put more pressure [on Apple] to aggressively go after emerging markets,” said Daniel Ives, managing director of Wedbush Securities.

    Ives predicts that “over the coming years, Indonesia, Malaysia and India will comprise a bigger piece of the pie for Apple, given its efforts in these countries.”

    The start of online sales in a country usually precedes the launch of brick-and-mortar stores for Apple, he told CNN. This was true of India, for instance, which got its first physical outlets last month and a pledge from Cook to further invest in the country.

    Thursday’s launch showed how Apple was “further cementing” its presence in emerging markets, according to Chiew Le Xuan, a research analyst who covers smartphones in Southeast Asia for Canalys.

    He said the tech giant had been “actively increasing” its presence in the region in recent months, ramping up its distribution and network of authorized resellers, especially in Malaysia.

    Apple has ample room to run in these markets.

    Currently, the company only operates its own stores in more developed regional economies, such as Thailand and Singapore, according to Canalys.

    Even Indonesia, a vast archipelago that is the world’s sixth-biggest smartphone market, doesn’t have a physical Apple store yet, said Chiew. Apple’s market share there is tiny, at just 1% in 2022, according to Canalys data.

    “We’re putting efforts in a number of these markets and really see, particularly given our low share and the dynamics of the demographics … a great opportunity for us,” Cook said during Apple’s results call.

    Apple joins a growing list of global businesses that have become bullish on Southeast Asia, where more investment is being poured into manufacturing.

    The region’s consumer base also holds promise, with the number of middle-income and affluent households in economies such as Vietnam, Indonesia, and the Philippines projected to grow by around 5% annually through 2030, according to the Boston Consulting Group.

    The consultancy has called this group of consumers “the next mega-market.”

    The allure of Southeast Asia’s rising middle class “has changed the dynamic in these countries, which previously Apple stayed away from,” according to Ives.

    “This is a golden opportunity for Apple,” he said.

    For years, premium brands like Apple have have struggled to compete in emerging markets because of the price of their products, choosing instead to rely on local resellers.

    iPhones, which cost between $470 and $1,100, are expensive for consumers in less developed Southeast Asian economies, where the bulk of smartphone shipments are priced under $200, according to Chiew.

    He said Apple’s absence from places like Cambodia or Vietnam was typically more apparent around the launch of a new iPhone, as buyers from those countries often flew to Singapore or Malaysia to purchase devices and take them back for resale.

    A view of an Apple store at Marina Bay Sands in Singapore in 2020. Buyers from other Southeast Asian countries without their own Apple stores typically line up outside such outlets to buy devices for resale, according to an analyst.

    This could change in the coming years, particularly as Apple continues to increase its firepower in the region.

    Ives predicted that Apple could “further expand its ecosystem and tentacles to emerging markets using its China playbook,” meaning it could try to hook customers through “various pricing strategies and building out from there.”

    Once those users have converted to Apple’s operating system, iOS, they tend to stick around and become loyal customers, he added.

    This has “been the core part of its success in China that now can be replicated in India, Indonesia, and Vietnam, among others,” said Ives.

    But Apple may face hurdles in Southeast Asia, where several countries have placed stringent requirements on foreign businesses, according to Chiew.

    For example, at least 35% of the components of electronic goods sold in Indonesia must made locally, a threshold Apple has had to meet by working with partners, he added. Similar rules prevented Apple from setting up shop in India for years until the relaxation of regulations in 2019.

    And while consumers are becoming more affluent, the company’s price points are still considered high in many emerging markets, noted Ives. “Growth will be choppy we believe.”

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