Vietnam Insider - Page 130 of 1525

EU Slaps Meta with $840 Million Fine for Unfair Trade Practices

Advertisements

The European Union fined Meta 797.72 million EUR (approximately 840 million USD) for tying Marketplace to Facebook, imposing unfair trading conditions on competitors.

On November 14, EU competition chief Margrethe Vestager stated that by linking Facebook to Marketplace, Meta “imposed unfair trading conditions” on other providers.

She added that Facebook’s parent company did this to profit from the Marketplace service, providing advantages that others could not match. “This is illegal,” she asserted.

Meta announced that it would appeal the decision, arguing that “the European Commission’s decision does not provide evidence of competitive harm to rivals or any harm to consumers.”

The EU’s prolonged antitrust investigation into Meta was launched in 2019 following allegations from competitors that the American tech giant was abusing its dominance by offering free services while profiting from the data collected on the platform.

In December 2022, the European Commission issued initial charges against Facebook for using data collected for free—mainly from businesses—and then selling advertisements to users, violating antitrust laws.

This is one of the final investigations overseen by Ms. Vestager, who will leave the commission in a few weeks after a decade in office.

During her tenure, Ms. Vestager has repeatedly targeted some of the world’s largest tech companies, such as Apple, Google, and Microsoft.

The European Commission determined that Meta “dominates the personal social networking market (…) as well as the national market for online social media display advertising.”

Facebook Marketplace, launched in 2016, is a popular platform for buying and selling secondhand goods, especially household items like furniture. Meta argues that their operating environment is highly competitive.

The company lists platforms like eBay, Leboncoin in France, and Marktplaats in the Netherlands as “formidable competitors.”

Meta has faced billions of dollars in fines in Europe for various violations in recent years. In September, the company was fined over $100 million for a security breach that exposed user passwords.

In January 2023, the company was fined over $400 million for several violations. In May 2023, Facebook’s owner was fined over $1 billion for violating the General Data Protection Regulation (GDPR).

However, these cases often take years to conclude, and Meta is in the process of appealing these fines.

Yet, there have been times when Meta had to concede. In the U.S., the company reached a settlement with the FTC in 2019, paying a $5 billion fine and implementing new privacy regulations.

The EU announced the fine against Meta amid a power transition in both the U.S. and Europe.

Over the past five years, EU regulators have passed a landmark law—the Digital Markets Act—aimed at curbing Big Tech and boosting the local tech industry.

However, some observers expect the new commission, set to begin its five-year term in a few weeks, to adopt a more conciliatory tone amid concerns of retaliation from the Donald Trump administration.

Executive Reshuffle at Luxury Giant LVMH

Advertisements

Faced with a slowing business situation, the Chairman of LVMH decided to rejuvenate the executive team, promoting his children to more important positions.

On November 14, LVMH announced a series of important changes in the executive board. Accordingly, Chief Financial Officer (CFO) Jean-Jacques Guiony will be transferred to the position of Director of the Wine and Spirits Division from February 1, 2025, replacing Philippe Schaus, who will leave the group after 21 years of service.

Chairman and CEO Bernard Arnault also appointed Alexandre Arnault as vice president of the division. The 32-year-old is one of the billionaire’s five children and is vice president of Tiffany & Co., headquartered in the United States.

Alexandre Arnault was appointed in the wake of Donald Trump’s election as president. He is known to have close ties to the Trump family and was invited to dinner with his wife, Geraldine, at Trump’s Mar-a-Lago estate last year. “He is a very promising young man, the son of one of the great businessmen and leaders in Europe and the world,” Trump tweeted in February 2023.

The trend of rejuvenating the executive board and consolidating the power of his children has been implemented by billionaire Bernard Arnault recently. To date, 4 out of his 5 children hold important positions.

Specifically, Delphine Arnault, 49, is the President of Dior, the group’s second largest brand. Antoine Arnault, 47, is the Director of Image and Environment. While Frédéric Arnault is currently the CEO of LVMH’s watch division at the age of 30, and Jean Arnault, 26, is the CEO of Louis Vuitton’s watch division.

Alexandre Arnault, 32, who was recently appointed as deputy general director of the wine and spirits division, is said to have many opportunities and challenges. Because he has to co-lead the group’s weakest division.

LVMH’s wine and spirits sales fell 8% in the first nine months of the year, hit by a sharp slowdown in demand in its two key markets, the US and China. Alexandre knows the US market well and has a good relationship with Trump, but he will have a headache in China, with Beijing imposing tariffs on European spirits.

In addition, Alexandre Arnault will move to manage a business with extensive operations, from vineyards to distilleries, with a large and unionized workforce, requiring more direct management skills than the fashion and watch brand CEO positions that his brothers and sisters are currently holding.

Along with the changes to the wine division, LVMH also confirmed the departure of Chantal Gaemperlé, who had been its human resources director for the past 17 years. According to La Lettre on November 7, Gaemperlé was suspended due to an internal investigation into the accumulation of “material benefits” from subsidiaries. Maud Alvarez-Pereyre, currently the director of talent and transformation, will replace Gaemperlé.

The changes come just weeks after Chris de Lapuente, executive board member and CEO of select distribution — which includes Sephora, Le Bon Marché and duty-free — announced his retirement. LVMH’s deputy CEO position was also rejuvenated in March, with Stéphane Bianchi, 59, replacing Antonio Belloni, 70.

The sweeping reshuffle of the group’s 70 luxury brands comes amid a sluggish business environment. The global luxury market is worth $386 billion and is expected to shrink by 2% this year, according to consultancy Bain & Company, as rising prices and economic uncertainty have shrunk the customer base from 400 million to 350 million.

Bain estimates that sales in China will fall by 20-22%, factoring in currency fluctuations, a blow to luxury brands after years of booming growth in the world’s second-largest economy, thanks to a growing upper and middle class.

“This is the first time the luxury sector has declined since the 2008-2009 crisis, excluding the pandemic,” said Federica Levato, an expert at Bain. Investors fear the recession will be longer and more severe than expected. LVMH shares fell nearly 19% at the end of the year on November 15.

LVMH’s third-quarter revenue fell 3%, its first decline since the pandemic, to $20.8 billion. Sales of its fashion and leather goods division, which includes brands such as Louis Vuitton and Dior, fell 5%, compared with a forecast for a 4% increase. This was the first decline since 2020.

In terms of markets, sales in Asia (excluding Japan) fell 16%, worse than the 14% decline in the second quarter, as purchasing power in China continued to be affected by the real estate crisis. According to LVMH, consumer confidence in the country has fallen to its lowest level since the pandemic.

Also on November 15, DFS Group, a retailer owned by LVMH, announced that it would close its operations at the historic Fondaco dei Tedeschi building in Venice, Italy, resulting in the layoff of more than 220 employees. Over the past five years, the store has lost $105.36 million due to Covid and a decrease in Asian customers.

“This difficult decision is part of a global restructuring driven by the challenging economic climate and uncertain outlook facing DFS and the travel retail industry worldwide, particularly the poor performance of the Venice store,” DFS said in a statement. Another of the company’s stores, located near the famous Rialto Bridge, whose lease expires in September 2025, will also not be renewed.

According to Bain, the luxury goods industry is expected to grow between 0% and 4% in 2025, supported by sales in Europe and the Americas, while China is expected to recover in the second half of next year. Levato said that Mr. Trump’s victory and the possibility of tax cuts could encourage Americans to spend more.

In addition, the market’s growth prospects also depend on the strategies that brands choose, including pricing strategies. One sign that high prices are holding back consumers is that outlet stores (genuine brands that are discounted due to being out of season, in stock or having minor defects) are outperforming thanks to the trend of finding products at low prices.

Source: vnexpress.net – Phien An ( according to Reuters, Le Monde )

Cold Air Sweeps Across Northern Vietnam

Advertisements

Cold air moving down to the North will cause temperatures in mountainous areas to drop to freezing levels, while in the plains the lowest temperature will be 18-20 degrees Celsius.

The National Center for Hydro-Meteorological Forecasting said that around the afternoon and night of November 17, cold air will affect the Northeast region and then expand to the plains and Northwest.

The American website Accuweather predicts that tomorrow Hanoi will drop about 3 degrees compared to today, down to 21-30 degrees Celsius, and by mid-week the daily temperature will fluctuate between 19-28 degrees. High points over 1,500 meters above sea level such as Sa Pa (Lao Cai) will have 14-22 degrees at the beginning of the week, and by the end of the week it will drop to the freezing threshold (average daily temperature below 13 degrees) from 9-15 degrees Celsius.

The North Central provinces will also be affected by this cold air mass with common temperatures of 18-20 degrees, and in mountainous areas below 15 degrees.

In addition, the cold air will also cause strong northeast winds of level 3 on land and level 4 in coastal areas. At sea, from tomorrow, strong winds of level 6, gusts of level 7-8, waves 2-4 m high. In the North East Sea, strong winds of level 6-7, gusts of level 8-9, waves 3-5 m high.

Mr. Nguyen Van Huong, Head of Weather Forecasting Department, National Center for Hydro-Meteorological Forecasting, said the reason why the temperature in the North remains high after the beginning of winter is due to the weakening of cold air mass and the appearance of divergent wind fields, creating conditions for prolonged heat.

It is forecasted that in the main winter months, from December 2024 to February 2025, the average temperature across the country will generally be approximately the same as the average for the same period in many years. In December 2024, the Northwest, Central and South Central regions will be 0.5-1 degrees Celsius higher.

Cold air causing widespread severe cold in the North is likely to appear from the second half of December and be active until February 2025. The meteorological agency recommends that people should be on guard against the possibility of prolonged severe cold spells, especially in the northern mountainous areas, accompanied by frost and ice.

Flight tickets for Tet At Ty sell slowly

Advertisements

There are more than two months until Tet but the airline ticket market is quite quiet, many busy flights every year still have tickets available.

At this time of year, many flights are sold out early. But this year’s survey shows that there is an abundance of tickets, with only a few flights on the peak days of the 4th and 5th of the first lunar month recording temporary sellouts.

The family of Ms. Hoang Anh, communications director of a consumer goods company in Ho Chi Minh City, usually books flight tickets in early September to return home early to prepare for Tet. However, this year, due to financial pressure, the whole family is still considering.

In a similar situation, Mr. Thanh, a delivery man in Ho Chi Minh City, said that instead of flying like every year, he switched to a bus to save half the cost.

Up to now, the “golden” routes such as Ho Chi Minh City – Hanoi, Da Nang, Vinh still have tickets with round-trip prices ranging from 5.7 to 7.4 million VND (including taxes and fees). Routes to the Central region such as Ho Chi Minh City – Chu Lai, Hue, Dong Hoi only sold out on the 4th and 5th days of Tet (February 1 and 2).

On flights to popular tourist destinations such as Nha Trang, Phu Quoc or Con Dao, where tickets are usually sold out early in the year, this year there are still many options with flexible schedules. Round-trip tickets cost only 2.6 to 3.6 million VND – not much different from normal days and even lower than the same period last year.

According to Ms. Pham Thi Huong, the owner of an agency in Tan Binh District (HCMC), this is a particularly difficult year for the airline ticket industry. “Last year, I had to pay half a billion VND in advance to hold tickets for sale, but this year the number of customers has decreased sharply. I only issue tickets when customers book,” Ms. Huong said. Over the past month, the number of customers booking Tet tickets at Ms. Huong’s agency has decreased by about 30% compared to the same period last year.

Not only the agents, but also the airlines themselves have clearly felt the decline in purchasing power. All airlines said that ticket sales are slower than in previous years. A representative of Vietnam Airlines said that the airline will continue to increase flights and add tickets to niche routes to ensure supply to the market. To meet the demand during the peak Tet holiday, Vietnam Airlines plans to rent 4 more planes, adding nearly 130,000 seats.

Particularly for tourist routes such as Con Dao and Phu Quoc, all airlines have recorded lower demand, partly due to recent natural disasters and economic impacts, which have reduced the number of tourists from the North going to the festival at the beginning of the year.

According to the Civil Aviation Authority of Vietnam, domestic airlines will offer more than 5 million tickets during this time, of which Vietnam Airlines will sell more than 2.5 million tickets, Vietjet Air will sell 2.6 million tickets early and Bamboo Airways has also started a similar plan. However, ticket prices this year are higher than the same period last year due to escalating input costs and limited aircraft supply.

The agency will continue to closely monitor ticket bookings and price developments to direct airlines to add capacity when necessary, ensuring good service for travel needs during the 2025 Lunar New Year. However, with the current low purchasing power, the picture of the Tet air ticket market this year is clearly reflecting economic challenges and changes in people’s consumer behavior.

Source: vnexpress (Thi Ha)

TikTok’s Uncertain Future Under Trump Administration

Advertisements

With 14.5 million followers on TikTok, Mr. Trump has said he would not ban the app, but the political and legal hurdles to fulfilling that promise are quite high.

After Donald Trump was elected President of the United States last week, tech CEOs such as Apple’s Tim Cook, Mark Zuckerberg (Meta) and Jeff Bezos (Amazon) all publicly congratulated him.

However, TikTok CEO Shou Zi Chew has remained silent. According to CNBC , this is noteworthy because among the leading technology companies, TikTok faces the risk of being banned from operating in the US.

In April, President Joe Biden signed a bill requiring TikTok’s parent company, ByteDance, to sell its U.S. operations by January 19 or face being banned. The move was met with bipartisan support.

Now, Trump’s return to the White House could provide a “lifeline” for the platform, according to CNBC . Trump began cozying up to the social network after meeting billionaire Jeff Yass in February, a major Republican donor and ByteDance investor.

Yass personally and his company Susquehanna International Group own 7% and 15% of ByteDance shares respectively, worth a total of $21 billion.

Mr. Trump launched his TikTok account in June and has amassed more than 14.5 million followers. During his campaign, he used the app’s uncertain future in the United States to rally voters. “We have no intention of doing anything to TikTok, but the opposition will shut it down. So if you like the app, vote for Trump,” he wrote on the social network Truth Social in September.

He has not publicly discussed his plans for TikTok since his election, but transition spokeswoman Karoline Leavitt said the new president will deliver on his promises. “The American people re-elected President Trump by a wide margin, giving him the authority to deliver on his campaign promises,” she said.

The Washington Post ’s own sources said the president is expected to try to block the TikTok ban after taking office. Given his experience with social media, Trump may not want to make a decision that would cause him to lose the attention and influence he has built on TikTok, Long Le, a China business expert at Santa Clara University, said.

However, some other experts say that trying to lift the ban could carry political risks for Trump, as he could be seen as being friendly to China, in contrast to the confrontational tone he adopted during his campaign. “This is a political issue,” noted James Lewis, a data privacy expert at the Center for Strategic and International Studies.

Maintaining the TikTok ban could help Trump score points with lawmakers concerned about China’s global political and economic influence, said Milton Mueller, a professor at Georgia Tech’s School of Public Policy. “I don’t think he’ll score big points if he defends TikTok,” Mueller said.

In the scenario of wanting to throw a “lifebuoy”, Trump also cannot do it easily because he faces significant political and legal challenges, according to ABC News . The outcome may depend on support from a series of major congressional organizations and the Supreme Court to technology corporations such as Google and Oracle.

Specifically, the easiest way to reverse the policy is from Congress. To do so, both houses would need to vote to overturn Mr. Biden’s bill and send it to Trump for his signature. “The easiest way is to ask Congress to overturn the ban,” said Anupam Chander, a professor of law and technology at Georgetown University.

However, he noted that this is not an easy path. Seven months ago, the ban passed the House of Representatives by a vote of 352-65. In the Senate, 79 members voted in favor, compared to 18 against and 3 abstentions.

The second way is to bypass Congress, instead seeking to “buy time” in a lawsuit against the law that TikTok has filed and is being considered by a three-judge panel on the DC Court of Appeals (the Court of Appeals for the District of Columbia, one of 13 US federal appeals courts).

Even if the DC Court of Appeals rules against TikTok, it can still appeal and take the case to the Supreme Court before the ban goes into effect. The Supreme Court could decide that the case merits a stay, potentially throwing out the ban altogether. “The Supreme Court may want to consider this,” predicts Alan Rozenshtein, a law professor at the University of Minnesota.

Alternatively, rather than repealing the law or relying on court intervention, Mr. Trump could turn to the Justice Department, which could theoretically choose not to enforce the law under his administration, reassuring companies like Apple and Oracle that they would not face prosecution if they violated it, such as allowing TikTok to be downloaded and installed.

Or the Trump administration could come up with a more flexible interpretation of the ban that would allow it to conclude that TikTok has complied with the requirement to separate from parent company ByteDance. Cornell University professor Sarah Kreps said Trump could choose to propose “selective enforcement” that would allow TikTok to continue operating in the US without being penalized.

But if Trump chooses not to enforce it, that still won’t be enough. Companies like Apple and Oracle could decide to stick with the ban anyway, since they’re taking legal risks if the White House changes course, Rozenshtein said. “Trump is pretty unpredictable. If you’re Apple’s legal counsel, do you really want that risk hanging over your head?” he said.

The final option is to play matchmaker. Mr Trump could try to find a US investor to buy TikTok , helping the platform avoid a ban. But time is running out for such a large transaction. The law allows for a 90-day extension to sell TikTok, as long as the company is negotiating a deal. In that case, the deadline would be pushed back to April 2025. But the catch with this option is that TikTok has shown little interest and China has been opposed from the start.

For his part, TikTok CEO Shou Zi Chew has remained silent before and after Trump’s victory. According to Long Le, the platform may be taking a neutral approach and a wait-and-see strategy.

Source: vnexpress.net – Phien An ( according to CNBC, ABC News )

Vingroup Teams Up with Warner Music Group and Indochina Productions to Promote Vietnam

Advertisements

Vingroup Corporation has just officially signed a memorandum of understanding (MOU) with two leading names in the world of music and cinema, Warner Music Group and Indochina Productions.

In particular, the above cooperation will create the premise for the world’s top music stars under the management of Warner Music Group to have the opportunity to participate in the 8Wonder International Music Festival and other music events organized by Vinpearl.

This cooperation not only brings world-class music stars to Vietnam but also serves as a launching pad for Vietnamese tourism and culture to reach hundreds of millions of people around the world.

The two agreements were signed within the framework of the Vietnam Tourism – Cinema Promotion Program organized by the Ministry of Culture, Sports and Tourism of Vietnam in Hollywood, California.

Accordingly, Vingroup Corporation will cooperate with Warner Music Group and Indochina Productions to promote the group’s strategic products, while introducing Vietnamese culture to international friends through films, music concerts and music videos.

The parties will work closely to promote Vietnam as a leading destination for international filmmakers and music video producers. Vingroup is committed to supporting Warner Music Group and Indochina Productions projects to be carried out at locations within the group’s ecosystem, including Vinpearl resorts and VinWonders amusement parks.

In addition, Vingroup will also provide VinFast electric car models for use in the music and film projects of the two partners.

“Vietnam has beautiful natural scenery and great potential to become an ideal location for filming and music festival projects,” said Lisa Nguyen, managing director of Warner Music Vietnam.

Some of our artists, such as Charlie Puth, have performed here. By establishing a partnership with Vingroup, Warner Music Group hopes to have more opportunities to expand its operations in Vietnam.”

Ms. Ngo Thi Huong, representative of Vingroup, shared: “We are honored to cooperate with Warner Music and Indochina Productions to promote Vietnam’s culture, tourism and breakthrough innovations. This is a great opportunity for us to introduce Vingroup’s brand and products globally, bring internationally renowned artists, actors and film crews closer to Vietnamese audiences, and at the same time open the door to promote more deeply and strongly Vietnamese culture and beauty to the world.”

“Indochina Productions has always operated to international standards throughout the region, and with the support of relevant government agencies and film industry supporters, we have helped to establish Thailand and the Philippines as Hollywood film hubs,” said Nicholas Simon , general director of Indochina Productions .

It was these three factors that brought the Kong: Skull Island film crew to Vietnam. With the support of Vingroup, we believe that this beautiful country will become the filming location for many international blockbusters in the future.”

The signing of the memorandum of understanding between Vingroup, Warner Music and Indochina Productions not only demonstrates the stature of Vietnam’s number 1 multi-industry corporation in the international arena, but also demonstrates the vision and aspiration to promote the cultural values, natural landscapes, iconic works, and prosperity of Vietnam today to the world; contributing to gradually making Vietnam a leading attractive tourist destination in Asia.

Vingroup is Vietnam’s leading multi-industry private economic group, operating in three main areas: Technology and Industry, Trade and Services, and Social Charity.

With a production and business system spread across Vietnam and many other countries such as North America, Europe, and Southeast Asia, Vingroup always pursues a strategy of cooperation with the world’s leading corporations to constantly innovate and develop a high-end product and service ecosystem, improve the quality of life and elevate the Vietnamese brand in the international arena.

Learn more at: https://www.vingroup.net/

Warner Music Group is one of the largest music corporations in the world, founded in 1958, headquartered in New York, USA.

Today, Warner Music Group manages many globally famous artists such as Ed Sheeran, Dua Lipa, and Cardi B.

Indochina Productions was founded in 2010 by Nicholas Simon, a renowned Hungarian-American filmmaker.

Indochina Productions is a leading production partner of many major brands in the international entertainment and advertising industry.

Indochina Productions is the unit that brought the blockbuster Kong: Skull Island to film in Vietnam, contributing to bringing the image of Vietnam to the world.

Source: tuoitre.vn (Heavenly Direction)

Binh Dinh Partners with Vingroup for Green Transformation in Transportation

Advertisements

On the morning of November 15, the People’s Committee of Binh Dinh province signed a memorandum of understanding with Vingroup Corporation on a green transformation program through sustainable transportation solutions using VinFast electric vehicles and green technology.

At the meeting, the People’s Committee of Binh Dinh province and Vingroup signed a memorandum of understanding on comprehensive investment cooperation in green transformation and research, focusing on developing a green transportation ecosystem using electric vehicles. At the same time, developing an electric vehicle charging infrastructure system and policies to support people in the transition process.

Ms. Le Thi Thu Thuy – Vice President of Vingroup – said that Binh Dinh is a province with many advantages to develop the economy in a green and sustainable direction. The province has had many initiatives and drastic actions in green transformation, creating positive changes for people’s lives in recent times.

“With the support of the People’s Committee of Binh Dinh province and the people, Vingroup will bring high-class and quality products and services, contributing to the economic development of the province and improving the quality of life for the people,” Ms. Thuy shared.

Mr. Pham Anh Tuan – Chairman of Binh Dinh Provincial People’s Committee – said that the province highly appreciates the potential, scale, professionalism and open-mindedness of Vingroup. In particular, Binh Dinh highly appreciates Vingroup’s efforts in promoting green transformation with the campaign called “Fierce Vietnamese Spirit – For a Green Future”.

Mr. Tuan proposed that Vingroup Corporation support resources and coordinate with the Department of Planning and Investment of Binh Dinh to develop a green transformation and green growth project for Binh Dinh province in the period 2025 – 2030.

Mr. Tuan also assigned the Department of Transport to preside over the Department of Construction and the Chairmen of the People’s Committees of districts, towns and cities to support Vingroup Corporation to soon deploy investment in charging stations that the province has introduced, to be completed no later than the first quarter of 2025.

In addition, the two sides will also study to promote comprehensive cooperation in many fields such as trade, services, tourism, health, education, information technology…

On this occasion, from November 15 to 17, at Nguyen Tat Thanh Square (Quy Nhon City), an event was held to display and introduce products of Vingroup and its member companies. Binh Dinh residents had the opportunity to test drive VinFast cars and electric motorbikes, experience electric bus and electric taxi services and learn about other brands of Vingroup.

Source: tuoitre.vn (Lam Thien)

Analyzing Billionaire Elon Musk’s $2 Trillion Impact on Public Spending

Advertisements

Billionaire Elon Musk has been successful at cutting costs and staff at the corporate level, such as reducing X (Twitter) staff from 8,000 to 1,500. But could he do the same with the US government?

At President-elect Donald Trump’s campaign rally in New York last month, billionaire Elon Musk said the US could save at least $2 trillion by reducing “waste” in public spending.

Mr. Musk has now been appointed to co-lead the Government Performance Board, giving him the opportunity to turn his ideas into reality.

US Government Spending

According to the US Treasury Department, the federal government spent a total of $6.75 trillion in the last fiscal year (October 2023 to September 2024). This means that Mr. Musk’s proposed $2 trillion cut would be equivalent to cutting about 30% of total government spending.

Currently, about 880 billion USD (13% of total spending) is spent on paying interest on public debt, an expense that cannot be reduced without causing the risk of default for the US Government.

The other big spending item was $1.46 trillion (22%) on social security, mostly pensions — a mandatory expense by law.

Another big mandatory expense is Medicare – the health insurance program for people 65 and older.

“Flexible” spending, meaning spending that must be approved by Congress each year, includes defense ($874 billion, or 13 percent), transportation ($137 billion, or 2 percent), and education and social services ($305 billion, or 5 percent).

According to the US Congressional Budget Office (CBO), “flexible” spending accounts for about 25% of total spending in 2023, of which more than half is for defense.

So in theory, it’s easier to cut “flexible” spending than mandatory spending.

President-elect Donald Trump has said Musk and his government efficiency co-director Vivek Ramaswamy will save money by streamlining the bureaucracy, cutting redundancy and restructuring government agencies.

However, if the US wants to save $2 trillion from “flexible” spending, according to analysts, the US would have to completely shut down agencies such as transportation, agriculture, and homeland security. The reason is that total spending on this category in 2023 is only about $1.7 trillion.

The key point, according to the BBC, is that Mr Musk has not made clear whether he wants to save $2 trillion in one year or several years. However, many public finance experts in the US, even those who support spending cuts, are skeptical about the ability to achieve such savings in the short term without causing a recession in public services or facing public opposition.

Challenges in fiscal policy

Trump campaigned on a promise to increase Social Security benefits by making them tax-free, rather than cutting them. He also pledged to build an “Iron Dome missile defense system” to protect the United States, a reference to increased defense spending, not cuts.

A report from the US Treasury Department released on November 13 showed that the budget deficit of the world’s largest economy in October increased 287% compared to the same period last year, from 67 billion USD to 257 billion USD.

In fiscal year 2024, the US Treasury Department recorded a budget deficit of up to 1,833 billion USD, an increase compared to 2023 ($1,695 billion) due to higher spending, including paying interest on public debt.

Meanwhile, US public debt just surpassed the $35 trillion mark for the first time last July, an increase of nearly $12 trillion compared to 2020.

Since the beginning of the year alone, public debt has increased by 1,000 billion USD, reaching 97% of GDP.

The Committee for a Responsible Federal Budget (CRFB) predicts that without major spending cuts, the budget deficit will increase significantly due to Mr. Trump’s tax cuts, pushing the public debt to 143% by the middle of the next decade.

Source: tuoitre.vn (Minh Khoi)

Experience Superior Sound Systems at the Plase Show Exhibition in Ho Chi Minh City

Advertisements

80 domestic and foreign brands compete to display their top-notch products specializing in sound and lighting for music stages, function halls, karaoke, etc.

On November 14, the Plase Show international exhibition opened in Ho Chi Minh City, attracting thousands of visitors to admire products serving the needs of users and businesses in the audio and lighting industry.

With an exhibition area of up to 4,000m2 ^, the exhibition includes 38 areas displaying products from 80 domestic and foreign brands. Among them are famous world brands such as: Yamaha, Nexo, Pioneer DJ, d&b audiotechnik, DiGiCo, Adamson, Allen & Heath, JBL, Shure, Sennheiser…

Visitors to the exhibition can experience firsthand many great sound systems at the booths.

In addition, users can also attend in-depth workshops to consult, instruct on how to use equipment, and update useful technology for professional audio workers.

The organizers said the exhibition will last until November 16 at the Adora Center (Tan Binh District). Admission is free.

Plase Show is an annual international exhibition held twice a year in Hanoi and Ho Chi Minh City. This is a playground for those who love sound as well as those working in the theater, karaoke , dance hall industries…

Source: tuoitre.vn (virtue)

AI’s E-Waste Crisis: New Research Predicts a 2,000-Fold Surge to 5 Million Tonnes by 2030

Advertisements

New research suggests that the amount of electronic waste generated by artificial intelligence (AI) could increase 2,000-fold by 2030, reaching 5 million tonnes.

The explosion of artificial intelligence (AI) over the past few years has brought many benefits to humanity. However, humans are also facing a major concern that has not yet received due attention: what will we do with the huge amount of electronic waste we have created?

“The e-waste generated by AI, especially large language models (LLMs), could increase significantly and potentially reach 2.5 million tons per year by 2030 if no waste reduction measures are taken,” said Asaf Tzachor, a climate and sustainability researcher at Reichmen University in Israel.

Mr. Tzachor’s research team discovered that the amount of electronic waste from AI servers could reach 5 million tons by the end of this decade, about 2,000 times the amount of waste generated by AI in 2023, according to IFLScience on November 14.

The United Nations considers all types of e-waste in general a major problem, saying that “the 62 million tonnes of e-waste generated in 2022 could fill 1.55 million 40-tonne trucks, enough to line up around the equator.”

Tackling the e-waste problem has many benefits. First, it prevents millions of people, including children, from dying from exposure to toxic chemicals and pollution from e-waste. At the same time, e-waste is also a valuable resource and mineral that should be recycled.

“A tonne of iPhones contains more gold and silver than a tonne of ore from a gold or silver mine,” said Lisa McLean, a member of research group Circular Australia.

According to research, the adoption of circular economy strategies reduces e-waste by 16% and in the best-case scenario this can be as high as 86%. The circular economy is an economic model in which design, production and service activities aim to extend the life of materials and eliminate negative impacts on the environment.

The study makes clear that the e-waste crisis is global in nature, which is why it is important to focus on cross-border e-waste management.

There is no one-size-fits-all solution, but we should aim to extend the life of existing hardware and reuse or refurbish devices and components, Tzachor said.

“It is much easier and more cost-effective to address the e-waste challenges created by AI now before they get out of control,” Tzachor added.

The study was published in the journal Nature Computational Science.

Source: tuoitre.vn (Anh Thu)

Navigating the Complexities: Vietnam’s Logistics Industry Faces Key Challenges Amidst Global Shifts

Advertisements

Vietnam’s logistics industry still faces many challenges such as infrastructure bottlenecks, fluctuations in freight rates and global competitive pressure.

The forum “Logistics in the global context” organized by the Ho Chi Minh City Logistics Association on November 15 is where experts, businesses and managers gather to discuss the opportunities and challenges of the industry in the context of economic fluctuations.

The “bottlenecks” that need to be removed

Speaking at the forum, Mr. Vo Van Hoan – Vice Chairman of Ho Chi Minh City People’s Committee – emphasized that logistics is currently a “trendy” field, playing a key role in improving the competitiveness of Vietnamese goods in the international market.

As the largest economic center in the country, with many advantages in terms of seaports, roads and aviation, Ho Chi Minh City still faces a series of challenges, including unsynchronized infrastructure, high logistics costs and limited regional connectivity.

Mr. Pham Thanh Son – Director of Tan Cang Hiep Phuoc Port Joint Stock Company – said that the role of logistics infrastructure in the supply chain is extremely important because it facilitates traffic and money.

Ho Chi Minh City currently has about 6,900 logistics enterprises, accounting for nearly 37% of the total number of logistics enterprises nationwide. However, the industry’s performance is still not commensurate with its potential.

According to Mr. Son, seaport systems such as Cat Lai and Nha Be… although achieving large output, are still limited by the lack of seamless connection between key economic regions such as Long An and Tay Ninh.

Furthermore, although the project to develop eight logistics centers in Ho Chi Minh City has been approved, implementation has yet to make a breakthrough. Railway connections to seaports are still fragmented, Tan Son Nhat airport is overloaded and the shipping channel has not reached the required depth.

These problems increase transportation costs and reduce the competitiveness of Vietnamese goods.

Coping with the “tornado” of fluctuations in shipping rates

One of the “hot” issues for logistics businesses is the fluctuation of sea freight rates .

For example, in 2020, the shipping price of containers to North America fluctuated at $2,000/container. By 2021, this number skyrocketed to $10,000, even peaking at $20,000/container.

By 2023, freight rates will drop sharply but increase again to $7,000-10,000 by mid-2024. Import-export businesses are in a difficult position.

Transport contracts are often signed for long periods, while freight rates fluctuate rapidly, making cost forecasting and planning impossible. With large shipping alliances dominating the market, Vietnamese businesses are increasingly disadvantaged.

This is not only an economic issue but also a strategic problem of how to reduce external dependence and build a more autonomous logistics ecosystem.

According to Ms. Vo Thi Phuong Lan – Chairwoman of the Board of Directors and General Director of ASL Logistics, the instability of freight rates makes it difficult for businesses to predict operating costs, reducing profits and competitiveness. In particular, the dominance of large shipping alliances makes the market even more difficult to control.

To respond to current challenges, experts and businesses propose strategic solutions.

For example, building long-term partnerships with major shipping lines, ensuring stable freight rates and maintaining shipping capacity in volatile environments. Digitalization and smart technology application.

Investing heavily in railways connecting seaports, upgrading highways and beltways, developing modern logistics centers…

At the same time, it is necessary to diversify transportation providers, reduce dependence on one source of supply, thereby increasing flexibility when the market fluctuates.

Vietnam – a new bright spot in global logistics

At the forum, many businesses and experts commented that the global supply chain shift out of China is giving Vietnam a great opportunity to become a regional logistics center.

Without improving infrastructure, digitizing processes and moving towards sustainable development, Vietnam will lose its advantage to regional competitors.

According to forecasts, by 2025, the world’s container shipping capacity will increase by 8%, while demand will increase by 3-5%.

This opens up opportunities for price stability, but impacts from energy crises, tariff policies or trade wars remain potential risks.

Source: tuoitre.vn

Aave Gauges Community Interest for Expansion to Bitcoin Layer 2 Spiderchain

Advertisements

The potential deployment on a Bitcoin layer 2 by the largest DeFi lending protocol highlights the appetite for harnessing the original blockchain for purposes that are commonplace elsewhere in the crypto ecosystem.

Aave, the largest decentralized-finance (DeFi) lending platform, is canvassing its community to gauge the level of interest in deploying on the Bitcoin layer-2 network Spiderchain.

The Aave-Chain Initiative (ACI), the driving force behind the protocol, published a call for comments on the proposal by Spiderchain developer Botanix Labs to expand the lender with more than $17 billion in total value locked into the emerging Bitcoin DeFi environment.

The idea of deploying on a Bitcoin layer 2 highlights the appetite for bringing functionality that is common elsewhere in the crypto ecosystem to the original blockchain. The bitcoin (BTC) price soared above $90,000 for the first time this week, reaching an all-time high of $93,445, as its dominance of the crypto industry reached 61.38%. Developers of projects native to other networks may be seeking to harness the deep reserves that are held in BTC.

Botanix Labs developed Spiderchain to be compatible with protocols that use Ethereum Virtual Machine (EVM), the software that powers Ethereum and enables smart contracts. Botanix’s goal is to allow any Ethereum-based application to be compatible with Bitcoin.

After feedback is gathered, the protocol will need to identify and mitigate potential security risks. ACI hasn’t offered any expected timescale for this process.

Aave’s native token (AAVE) has fallen just under 8% in the last 24 hours to just under $168, according to CoinDesk Indices. This drop is likely a reflection of the broad pullback across the crypto industry following BTC’s surge above $90,000 on Wednesday.

Is Bitcoin on Shaky Ground? Market Signals Reflect Patterns That Foretold the Recent Slide in Trump Media Shares

Advertisements

BTC’s rally has stalled amid hawkish comments from the Fed officials.

As bitcoin’s (BTC) price struggles to secure a foothold above $90,000, developments in the Deribit-listed options market tied to the cryptocurrency resemble patterns that foreshadowed the recent price slide in the Trump media shares.

The pattern referred to here is the implied probability distribution, representing markets’ expectations for the underlying asset’s future price derived from options prices at different strike prices and expiration dates. It shows the probabilities traders assign to the asset reaching different price levels.

Per data tracked by crypto financial platform BloFin, the implied probability distribution now shows a “left shift,” suggesting that the market participants see a higher probability of BTC trading at lower prices from here.

“A typical indicator is the implied probability distribution: whether it is MSTR, COIN or Deribit’s BTC options, the implied probability distribution of different expiration dates has shown a significant left shift,” Griffin Ardern, head of options trading and research at crypto financial platform BloFin, told CoinDesk in a Telegram chat. “It seems that traders have an implied consensus that the prices of BTC and altcoins are still high, and more pullbacks may be on the way.”

Ardern added that a similar left shift was seen in the DJT options market, presaging the recent price slide. The share price has halved to $27 in just over two weeks, according to charting platform TradingView. DJT surged to a high of $54 at the end of October, as markets priced in a potential victory of Republican candidate Donald Trump’s victory in the U.S. election held on Nov. 5.

Well, pro-crypto Trump emerged victorious as expected, and since then, BTC has surged by over $20,000, tapping the $93,000 mark at one point.

As of writing, the cryptocurrency changed hands at $88,100, according to CoinDesk data.

Hawkish comments from the Fed officials support the case for a price pullback suggested by the implied volatility distribution. On Thursday, Chairman Jerome Powell said that the economy is not sending any signals that we need to be in a hurry to lower rates, dashing hopes for faster liquidity easing. Since September, the Fed has already cut rates by 75 basis points, offering bullish cues to risk assets.

That said, most market participants continue to be bullish, taking bets that would profit from a potential price rise beyond the $100,000 barrier.

If You’re Having a Bad Day, This Story Will Lift Your Spirits

Advertisements

Comedian Charlie Chaplin once shared a touching story:

“When I was a child, I went to the circus with my father. As we stood in line to buy tickets, there was a family of six children in front of us. The children were buzzing with excitement, talking non-stop about the circus. When it was their turn to buy tickets, the father asked about the price, and upon hearing it, he leaned over to his wife, clearly uncomfortable.

I watched as my father quietly pulled a $20 bill from his pocket, dropped it on the ground, picked it up, and placed it into the man’s hand, saying, ‘Sir, you dropped this.’ The man looked at my father, his eyes filled with gratitude and tears. He softly said, ‘Thank you, Sir.’

After the family entered the circus, my father took my hand, and we left the line. He had given away the only money he had. That day, I didn’t see the circus, but I saw something even more beautiful. That moment has stayed with me my whole life, and I have always been proud of my father for it.”

Charlie Chaplin, the King of Comedy, lived to be 88 years old and left us with these profound insights:

Nothing is permanent in this world, not even our troubles.
I like walking in the rain because no one can see me cry.
The most wasted day in life is the day we do not laugh.
There are six best doctors in the world: Sunlight, Rest, Exercise, Diet, Self-respect, and Friends.

Follow these words of wisdom throughout your life, and you will enjoy health and happiness.

Exporting from Vietnam to the U.S.: Key Insights on Customs Compliance, Tariffs and Duties

Advertisements

As Vietnam solidifies its role as a leading manufacturing hub, it attracts a growing number of global exporters seeking to tap into its production capabilities. However, exporting to the United States entails navigating complex customs compliance requirements and tariff structures.

This guide provides insights from industry experts on the essentials of customs compliance and the crucial role customs brokers play in managing Vietnam-U.S. exports effectively.

Customs Compliance: A Foundation for Successful Exports to the U.S.

Navigating customs compliance involves strict adherence to both Vietnamese regulations and U.S. import laws. This process includes preparing accurate documentation, classifying products correctly, and meeting legal standards, which collectively help avoid costly delays, fines, or penalties. These steps form the backbone of international trade and are critical for exporters aiming to streamline their operations.

This video provides valuable insights into customs clearance, covering essential paperwork, the role of customs agents, and how customs administration ensures shipments comply with regulations.

For Vietnamese exporters targeting the U.S., essential documentation includes:

Commercial Invoice: Establishes the goods’ value for customs purposes.
Packing List: Details the type, quantity, and packaging of each item.
Bill of Lading: Serves as proof of shipment and carrier responsibility.
Certificate of Origin: Verifies the origin of the goods, often required to qualify for trade preferences.
Import/Export Licenses: Required for specific products as mandated by Vietnamese and U.S. regulations.

The Customs Declaration Process

The customs declaration process requires meticulous preparation and document submission. Exporters must submit documents electronically to Vietnamese customs authorities, detailing descriptions, quantities, and classifications. If all documentation is correct, customs clearance is granted. However, certain shipments may be flagged for inspection, which can vary from basic document checks to physical inspections for higher-risk items. To minimize potential delays, exporters should ensure that documents are well-organized and accessible for review.

Calculating Duties and Taxes for U.S. Export Goods

Duties and taxes are calculated according to the Harmonized System (HS) Code, a standardized classification that dictates the applicable tax rates for various product types. Accurate classification is essential, as tax rates directly affect overall shipping costs. Customs brokers and tax specialists familiar with HS Codes can help exporters with precise estimates, minimizing the risk of costly misclassifications.

Common Pitfalls in Compliance for U.S. Exports

The regulatory landscape is often complex and dynamic, with frequent updates that can impact compliance. Documentation errors, particularly inconsistencies in product descriptions across documents, are among the most common issues. For example, discrepancies between the Commercial Invoice and Packing List can trigger inspections and delays. To avoid this, exporters should stay informed about regulatory updates and consider working closely with a customs broker to ensure seamless compliance.

Leveraging Customs Brokers for Compliance Efficiency

Customs brokers are invaluable partners for exporters, handling documentation, classification, and liaising with customs authorities. For small and medium-sized enterprises (SMEs), working with a customs broker can save time, reduce compliance stress, and prevent costly errors. When choosing a broker, exporters should prioritize industry expertise, transparency on fees, and clear, responsive communication. A proactive broker familiar with U.S. import requirements can significantly ease the export process and prevent compliance pitfalls.

Understanding Brokerage Fees and Training Options

Brokerage fees vary based on transaction complexity and services provided. It’s essential for exporters to clarify costs upfront to avoid misunderstandings. For companies seeking to build in-house customs expertise, certification programs are available, particularly for those with high export volumes to the United States.

Resources for Managing Duties and Ensuring Compliance

Exporters looking to expand their knowledge of import duties and regulations can access a variety of online tools, such as import tax calculators and detailed guides that outline the financial feasibility of exporting to the U.S. Collaborating with experienced customs brokers or consultants offers exporters a comprehensive financial overview, helping ensure compliance and providing a solid foundation for sustainable export strategies.

Customs compliance is more than just a regulatory requirement; it’s a strategic advantage for businesses in global trade. By keeping organized records, staying current on regulations, and working with reliable customs brokers, Vietnamese exporters can position themselves as trusted players in the U.S. market, ready to meet the demands of international trade efficiently and responsibly.