Banks seek foreign capital, but not foreign strategic shareholders

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Some Vietnamese banks have revealed they are negotiating with foreign partners on capital contributions.

Dang Khac Vy, chair of LienViet Post Bank, said at a shareholders’ general council meeting last week that the bank is talking with five foreign investors based in the US, EU and Japan about the sale of treasury stocks.

“It is now the time to sell treasury stocks. Many foreign banks and investment funds are eyeing Vietnam. They are really interested in making investments here,“ Vy said.

Former chair of the bank Nguyen Duc Huong revealed on the sidelines of the meeting that a Norwegian investment fund is willing to buy LienViet Post Bank shares at over VND30,000 per share. However, no official decision has been made.

In mid-March, VP Bank’s leadership announced a plan to issue shares to specific foreign and domestic shareholders. The amount of shares to be issued would be 15 percent of the bank’s common stocks. VP Bank reported that 1.57 billion had been in circulation by December 31, 2017.

Strategic partners

Nguyen Tri Hieu, a renowned banking expert, said that many foreign strategic investors have divested from Vietnamese banks recently.

In early 2018, BNP Paribas withdrew all of its capital contribution from OCB. However, it is still unclear about the buyer of the 74 million shares.

BNP Paribas was a strategic investor, which initially held 10 percent of OCB shares in 2007, and raised the ownership ratio to 20 percent in 2011.

Also in early 2018, Standard Chartered terminated its role as the strategic investor which it had been holding for the 12 years in ACB.

The Vietnam Securities Depository confirmed that the two biggest shareholders —Standard Chartered APR Ltd and Standard Chartered Bank (Hong Kong) Limited — have transferred all 154 million shares.

In 2017, HSBC withdrew capital from Techcombank after 12 years of investment. In 2012, ANZ left Sacombank.

“Investment funds have capital from separate investors. When buying into banks, they don’t intend to join the management board of the banks, but just want to make investments to seek profit,” Hieu said.

“Vietnam’s macroeconomic indicators are very good, thus attracting foreign investment funds,” he said. Official reports show that foreign investors have been the major buyers of Vietnam’s stocks recently.

Techcombank’s management board plans to sell treasury stocks to foreign/domestic investors in the second phase. Prior to that, the bank announced investment of $370 million from two legal entities managed by Warburg Pincus.

Source: VietNamNet

Vietnamese taekwondo artist claims gold at world junior championships

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Ho Thi Kim Ngan is heading for the Youth Olympics in Argentina.

Taekwondo artist Ho Thi Kim Ngan won gold for Vietnam in the women’s flyweight division at the World Taekwondo Junior Championships in Hammamet, Tunisia, on Wednesday.

Ngan defeated Canadian Josipa Kafadar in the final with a narrow 8-7 win to claim Vietnam’s first medal at this year’s tournament.

Ho Thi Kim Ngan and Coach Tran Anh Tuan

Ngan was competing in the 49kg division this year after also winning the 44kg division two years ago, when she was the sole Vietnamese medalist.

This year’s tournament has drawn 483 artists from 11 countries.

Thanks to her success, Ngan has qualified for the 2018 Summer Youth Olympics in Buenos Aires, Argentina.

Source: VnExpress

Ifan And Pincoin ICOs Duped Vietnamese Investors for $660 Million

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If the claims are true, these will be the largest ICO scams to date.

Scams are nothing new in the world of initial coin offerings (ICO) but recently in Vietnam, the largest alleged scam connected to an ICO has been pulled off by two blockchain firms – Ifan and Pincoin.

The two firms together have allegedly duped 32,000 investors for around VND 15 trillion ($660 million), according to reports by local media outlet Tuoi Tre News.

Ifan is registered in Singapore while Pincoin is registered in Dubai, however, both firms had approached the same company in Vietnam – Modern Tech – to advertise their projects to potential local investors.

The issue with these firms hit the limelight, as on Sunday a huge mass of investors gathered in front of Modern Tech’s Ho Chi Minh City headquarter. Modern Tech presented it as the firms’ representative in Vietnam, however, media reports later surfaced that its seven executives were on the front line of spreading the word about both ICOs in Vietnam and had conducted many conferences even in remote areas to lure in investors.

According to reports, the company has vacated its office premise in Ho Chi Minh City a month ago.

Shady business model

Ifan was advertised as “the most advanced social network” targeted towards celebrities and artists, to help them connect in a better way with their fans. Its native tokens were supposed to be used for downloading music and buying exclusive merchandise.

Pincoin, on the other hand, is clearly a shady scheme. It promised its investors a 40 percent monthly returns on their investment. The company claimed to be overseen by PIN Foundation, and to lure in more investors, Modern Tech promised an 8 percent reward to every investor for bringing in another investor, making it a classic multi-level-marketing scheme.

Suspicions first arose among investors when the company stopped rewarding in fiat, instead handing out its native tokens. With this, though investors were seeing the growth of their digital assets every day, they could not withdraw a dime in fiat.

Due to its multi-level structure, the crypto community has been suspecting Pincoin to be a scam for months. In February, financial scam directory Behindmlm claimed in a report that due to its buy-in method and opaque nature, the project is an “ROI Ponzi”.

Vietnam calls for tougher measures on cryptocurrency deals amid alleged scam

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Vietnam to tighten “management of activities related to bitcoin and other cryptocurrency”, the government said.

Vietnam on Wednesday urged greater vigilance against cryptocurrency transactions and investments, as officials in its economic hub asked the police to investigate what could prove to be the country’s largest cryptocurrency fraud.

In a directive, Prime Minister Nguyen Xuan Phuc told the State Bank of Vietnam, the Ministry of Public Securities and other bodies to tighten the “management of activities related to bitcoin and other cryptocurrency”, the government said.

“Cryptocurrency investment and trading and raising money through initial coin offerings are evolving in a more complicated manner,” it said in a statement on its website.

Call to investigate

The statement followed a report by the official Vietnam News Agency that authorities in Ho Chi Minh City had asked police to investigate accusations that a company, Modern Tech JSC, raised money from token sales of Ifan and Pincoin cryptocurrency.

The request followed a weekend protest by dozens of people who accused the company of “the largest ever cryptocurrency fraud involving 15 trillion dong”. This sum is equivalent to $658 million.

The mobile telephone of the firm’s general director, Ho Xuan Van, was turned off on Wednesday, other company officials could not be reached for comment said Reuters news agency.

“All cryptocurrencies and transactions in cryptocurrencies are illegal in Vietnam,” said Le Dong Phong, the police chief of Ho Chin Minh City.

“We are gathering information about the case, but officially we haven’t launched an investigation until we receive accusations from any of the alleged victims,” Phong told Reuters. He declined to provide further information.

According to a copy of the directive seen by Reuters, the prime minister told the State Bank of Vietnam to instruct banks not to provide any payment services related to illegal cryptocurrency transactions.

He also told the Ministry of Justice to complete the legal framework for managing and dealing with virtual assets.

Source: Reuters

Fire destroys 2,000sq.m factory of ABC Bakery

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A huge fire broke out and destroyed the whole 2,000sq.m factory of ABC Bakery in Binh Tan district, Ho Chi Minh City.

The fire broke out at 7 PM last night in the new factory of Asia Bakery & Confectionery Pte., Ent. (also known as ABC Bakery) at Lam Hoanh Street, An Lac ward, Binh Tan district, Ho Chi Minh City. The workers and security staff of the company could not put the fire out before it spread.

The Ho Chi Minh City Fire Prevention Department has sent 28 fire engines and 200 fighters to the scene who fought the fire until midnight. The fire did not have casualties, but injured two firefighters.

The fire raging inside the building

ABC Bakery is a home-grown bakery chain based in Ho Chi Minh City, Vietnam, well known for its high-quality range of bakery products, such as bread, pastries, and cakes. ABC Bakery first started as a small store in an alley in District 11 and has developed into a chain of bakeries all over Ho Chi Minh City, Nha Trang, and Can Tho, with a presence in Cambodia.

The fire raging inside the building

This morning, another fire also destroyed Sam Ngoc Linh JSX’s 2,000sq.m ginseng plantation in Da Lat city, Lam Dong province.

Ngoc Linh ginseng is considered one of the five most valuable medicinal herbs in the world and produces high profit for the company. Fortunately, there were no casualties in the fire, but the damage to assets was substantial, estimated at nearly half a million dollar.

Source: VIR

TripAdvisor names Vietnam Airlines among Asia’s most favourite airlines

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Vietnam Airlines has been named among the best carriers in Asia for 2018 by TripAdvisor, the US-based travel planning and booking site.

In its Travelers’ Choice Major Airlines – Asia 2018 announced on April 9, Vietnam’s national flag carrier stands shoulder to shoulder with other five-star airlines, including Singapore Airlines, All Nippon Airway (ANAs), Korean Air, Garuda Indonesia, and Cathay Pacific.

The award winners were determined using an algorithm that took into account the quantity and quality of airline reviews and ratings submitted by travelers worldwide, over a 12-month period.

Airlines are rated on categories such as customer service, seating, sanitation, meals and drinks, check-in procedures, and entertainment facilities.

TripAdvisor launched its airline review category two years ago. The website has so far gathered more than 900,000 reviews for over 550 carriers worldwide. Of these, Vietnam Airlines have received nearly 4,000 reviews in 26 different languages, attracting huge attention from the TripAdvisor travel community.

“We are thrilled to recognise the global TripAdvisor community’s favourite airlines and shine a spotlight on the carriers around the world that provide the very best flying experiences,” said Bryan Saltzburg, senior vice president and general manager for TripAdvisor Flights.

“The Travelers’ Choice awards for airlines recognise the carriers that exceed passenger expectations and receive top marks from travelers,” he added.

Source: NDO

Top four tourist hotspots near Hanoi for national holidays

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The ancient village of Duong Lam, hotspots in the northern Ninh Binh province, Tam Dao tourist site and Co To island, to name a few, are attractive destinations for travellers during the long Liberation Day (April 30), and May Day (May 1) holidays.

The ancient village of Duong Lam is in Son Tay town, about 40km from Hanoi. Travelers are attracted to its ancient houses, old temples, pagodas, cathedrals and imperial tombs. Rental bike service is available for visitors to tour the village while homestay service is provided at the price of below VND500,000 per room.

The northern province of Ninh Binh, about 100km from Hanoi is considered “Ha Long Bay in land’ with a complex of famous tourist sites like Tam Coc Bich Dong with beautiful caves, Phat Diem cathedral, Bai Dinh pagoda and stunning natural scenery of river and mountains. Visitors will have the opportunity to gain interesting experience by rowing boats along Van Long lagoon and Trang An Eco-Tourism complex which is recognized as the world’s natural heritage site by UNESCO.

Tam Dao tourist site in Tam Dao district, Vinh Phuc province is about 80km from Hanoi with cool climate around the year and average temperature ranging between 18-25 Celsius degrees. Visitors can taste local cuisine and discover local life at night market or visit some popular destinations such as Silver Waterfalls, French ancient cathedral and Ba Chua Thuong Ngan temple or television tower. Winding roads are attractive options for adventurous travelers.

Co To island is one of the most beautiful island in the north, located in the east in Van Don island in Quang Ninh province. The island attracts tourists to the crystal blue sea, white sand and interesting activities by participating in BBQ party by the beach, savouring stunning scenery of sunrise and sunset, walking along ‘love path’ and enjoying homestay service close to the beach.

Source: VOV

5 reasons to touch down in Vietnam this summer

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Summer is here and holidaymakers are rolling up their sleeves with travel ideas. Here are five reasons why Vietnam is worth having on your itinerary.

Da Nang Fireworks Show

Da Nang was lit up up with sparkling firework performances in 2017. Photo by VnExpress/Nguyen Dong

Aside from being hailed as Vietnam’s best city to live in, Da Nang has a lot to offer visitors this summer, especially the Da Nang International Fireworks Festival 2018 which is scheduled to blast off from April 29 to June 30 with bigger and better spectacles than last time out.

This year, the two-month-long festival will welcome teams from France, Hong Kong, Italy, Poland, Portugal, Sweden, the United States, and the host country.

With the theme, “Legends of Bridges,” participating teams will be telling different stories about well-known bridges through spectacular performances.

Huynh Van Hung, director of Da Nang’s department of culture, was quoted by local media as saying that the central city is building its tourism brand around the festival, earning it the moniker “the city of fireworks.”

Hue Festival

A view of the Imperial City of Hue from above. Photo by VnExpress/Hoang Thanh

Vietnam’s former capital Hue is racing against time to prepare for its biennial namesake festival which will be returning for its 10th edition from April 27 to May 2 with plenty of colorful activities.

The week-long cultural event will be accompanied by a street carnival, an international food festival and a hot air balloon show.

The former royal city was the seat of the Nguyen Dynasty which ruled the country from 1802 until the end of feudal Vietnam in 1945, so traditional court music and dragon boat racing should also not be missed.

Authorities are pinning their hopes on the festival to drive the province’s tourism industry and help Thua Thien-Hue reach its target of drawing 4-4.2 million tourists this year, with foreign arrivals accounting for 40-45 percent, and fetching VND4.2 trillion ($185.2 million) in tourism revenues.

Ha Long Carnival 2018

Ha Long Bay draws tourists with its magnificent scene of more than 1,500 limestone karst islands popping up from turquoise waters. Photo by VnExpress/Meo Gia

Ha Long Bay is undoubtedly the most-visited travel destination in Vietnam thanks to its picturesque natural landscape and temperate climate. But there’s an extra special reason for you to make the journey to the bay this summer.

The Ha Long Carnival 2018, under the theme “Ha Long – Heritage, Wonder – Friendly Destination,” will kick off on April 28 with music and art performances and firework shows to herald the National Tourism Year hosted by the northern province of Quang Ninh.

Visitors to Ha Long rose 12.9 percent last year to more than 6.9 million, including 2.94 million foreign travelers, according to Ha Long’s news portal.

The bay was used to film the recent Hollywood blockbuster “Kong: Skull Island,” and has been raved about by many travel bloggers.

Sa Pa Summer Festival

Rice terraces in Sa Pa. Photo from VnExpress Photo Contest/Ta Viet Hai

Sa Pa, a small town in Vietnam’s northern province of Lao Cai perched at 1,600 meters, or nearly one mile above sea level, has stepped up its efforts to attract more tourists this year.

The authorities have announced that a summer festival will be gracing the town late this month, featuring a wide range of activities such as a street carnival, a “love market” – which is a colorful exhibition of the local ethnic culture, a rhododendron flower festival, art shows and photo exhibitions.

Home to the roof of Indochina, Mount Fansipan, Sa Pa was named among the best destinations for 2017 by TripAdvisor travelers, who described it as a perfect oasis for travelers looking for a strenuous mountain trek or a rice paddy tour.

Data from Lao Cai Radio and Television showed that Sa Pa received more than 450,000 tourist arrivals during the first three months of 2018, a 10 percent year-on-year pickup.

An Bang Beach

An Bang Beach in Hoi An. Photo by VnExpress/Minh Duc

An Bang Beach in Hoi An has made the list of the 25 most picturesque beaches in Asia voted for by TripAdvisor’s readers for the third year in a row, and is waiting for those craving a taste of crystal blue water and stretches of white sands.

Just around three kilometers away from the ancient town center and 22 kilometers south of Da Nang, An Bang was hailed as the 22nd best beach in Asia at this year’s Travelers’ Choice Awards.

The beach, which is home to fishing villages and provides a romantic setting for couples, is best enjoyed between May and September.

In 2013, An Bang Beach was voted one of the top 100 beaches in the world by CNN Summer Travel.

Source: VnExpress

 

Vietnamese phone users hung up about being forced to send selfie profiles to providers

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     The unprecedented requirement has raised network security concerns about data safety.

Vietnamese mobile owners are being asked via text messages to submit profile photos to their network providers, something they never needed to do before.

The request follows a decree issued by the Ministry of Information and Communications which requires subscribers to provide photographic proof of their identities.

The government claims this will result in better control of network subscribers and prevent the abundance of fake SIM cards in Vietnam.

However, the new regulation has caused public uproar over data security concerns and for being too time consuming.

“Even registering ownership of a car or property doesn’t require photos,” said Do Thi Hoa, one user who received the message. However, she said she intended to submit her photo before the April 24 deadline because she didn’t want to get cut off.

Subscribers are required to submit their photos either to a local network agent or upload them directly via a network app within the next two weeks. One network is even offering to make home visits for senior citizens who are not familiar with technology.

The network providers have guaranteed their customers’ personal information will be in good hands.

“Photos and other private information will be archived in our database and will only be used to manage subscribers as stated by law,” said a representative from MobiFone, one of the largest network providers in Vietnam.

However, experts believe the regulation has loopholes that could be taken advantage of. A photo taken by a customer and sent to a network provider cannot be authenticated, said Vu Tien Vinh, a lawyer.

The images could also slip through the network security holes, a scenario in which the responsibility of the network provider has not yet been clearly defined, Vinh added.

The lawyer said he didn’t think that photos would help the government to control subscribers as all administrative procedures already require photo ID. He said the regulation should be scrapped to reduce the administrative burden it places on the public.

By the end of March 2018, Vietnam has 118.7 million mobile subscriptions, according to official data.

At least 38 million mobile phone users have not provided adequate personal information to network providers, Nguyen Duc Trung, a senior telecommunications official at the Ministry of Information and Communications, said in a Tuoi Trereport.

Source: Vnexpress

Hanoi prepares to power up automated convenience stores

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No more sleepy cashiers, but there have been complaints of the country’s first store in HCMC running out of goods.

Automated convenience stores have been given the green light to start operating in Hanoi this year by the city’s People’s Committee as part of is e-commerce plans for 2018.

The stores will feature vending machines that will require customers to scan QR codes from their smartphones in order to make a purchase.

The cashless transactions will make use of digital platforms for purchasing physical goods and services.

The move is part of the city’s plan to push online retail to account for 8 percent of total retail turnover in 2018.

In November last year, the country’s first automated convenience store was launched in Ho Chi Minh City.

The Toromart chain has announced its intention to expand the service beyond the southern metropolis in 2018.

There have, however, been complaints about the store in HCMC running out of goods and shopping bags, and the lack of a Vietnamese language option on mobile payment apps.

While popular in countries like Japan and South Korea, automated stores are still new to Vietnamese consumers.

Unlike traditional grocery stores, they often focus on fast food and beverages.

By Anh Minh (VnExpress)

Huawei outlines the path to a 5G Era for Vietnam

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At the 4G/5G International Conference 2018 in Hanoi, Huawei outlined the path to a 5G Era for Vietnam. Speaking at the conference on “Paving the Way for 5G in Vietnam”, Dr. Mohamed Madkour, vice president of Huawei Global Wireless Network Marketing, highlighted the value that 5G will bring to Vietnamin terms of enhancing people’s lives, improving businesses and driving economic growth. He also emphasised that expanding and evolving LTE network and its derivatives, 4G/4.5G, together with exploring new segments like home broadband, enterprise and Internet of Things (IoT) are the first steps on the 5G transformative road.

Dr. Madkour underscored the importance of investing in the network and new business models today to be prepared for a 5G Era. With early 5G standards and technologies now established, we will see commercial 5G networks deployed widely across the globe by 2020. 5G brings new opportunities for operators to deliver new 5G services and applications to consumers and businesses across vertical industries.

While it will take some time to develop 5G networks, operators in Vietnam can start building capabilities to support future 5G services. Operators can act now, incubating new services and building new capabilities based on 4G networks. Dr. Madkour further explained that expanding and evolving LTE and its derivatives, 4G+4.5G, is paving the way to 5G. Operators can now deploy 5G commercial networks with LTE continuous evolution.

Dr. Madkour said: “LTE is now defined as the fundamental network for all connected businesses. It is often referred to as LTE4ALL, with the capability to enable all types of services, including voice, data, video, Fixed-Wireless Access (FWA) as well as new IoT applications. This paves the way for operators to explore new business opportunities beyond consumer mobility, for example fuelling digitisation in homes and enterprises.”

To maximise customers’ network value, Huawei proposed a series of business solutions for smooth evolution to 5G. Huawei’s CloudAIR 2.0 features new technology to dynamically increase spectrum sharing and support LTE and 5G New Radio (NR) on the same spectrum, enabling operators to monetise their spectrum assets and improve network ROI.

Huawei’s innovative site solutions such as Three-Star (PoleStar, RuralStar, TubeStar) facilitates more efficient use of sites enabling greater coverage, which is a challenge in 5G era. For antennas, Huawei proposed to modernise all sub 3GHz bands using a single antenna to free tower space for 5G Massive MIMO NR Unite.

“Huawei is committed to working together with government and telecom operators in this market to drive digital transformation and move towards a 5G future. We aim to create an open, collaborative, win-win industry ecosystem to have in-depth conversations, discuss the latest trends and share opinions together,” Dr. Madkour said.

- Huawei

Vietnam stock market may get ‘emerging status’

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Vietnam stock market may be upgraded to the emerging market status from its current frontier market by 2020, according to the latest SSI Retail Research.

The local securities market has grown rapidly and reached US$191 billion in total value by the end of March 2018, equivalent to 95 per cent of the GDP (gross domestic product) in 2016 and up 24.7 per cent against 2017.

It’s as large as the securities markets in the United Arab Emirates and the Philippines and even surpasses some emerging markets such as Qatar ($131 billion), Pakistan ($82 billion) and Egypt ($58 billion).

Liquidity also increased sharply to an average of VNĐ8.8 trillion ($386 million) per session in the first quarter, a growth of 80 per cent over the average of 2017.

According to SSI Research, five Vietnamese stocks have satisfied the Morgan Stanley Capital International Inc (MSCI) requirements in terms of market capitalisation, free-float rate and liquidity and can be added to the Emerging Market Indexes in case the local market is upgraded.

SSI estimates that nine other stocks will meet these requirements in future. These shares have a market value of over $2 billion and good liquidity but are yet to reach the level of required free-float rate.

In its 2017 market classification review that was carried out in late June, MSCI did not include Vietnam in the review list for a potential reclassification to the emerging market status.

Thus, Vietnam remained in the MSCI Frontier Markets Index.

Essentially, Vietnam’s stock market has satisfied MSCI’s quantitative requirements in terms of the market size and liquidity. However, qualitative conditions will be decisive factors for an upgrade, not only by MSCI but also by other classification firms, such as FTSE and S&P.

The Government, meanwhile, is doing well in managing macro-economic stability and reinforcing foreign investors’ confidence in the local market. However, the research suggests relaxing the limit of foreign ownership and accelerating the divesting of State capital in State-owned enterprises to further broaden the investment scale for foreign investors.

On the other hand, the foreign exchange market needs to be more flexible to facilitate the flow of foreign capital into the country.

According to SSI Research, Vietnam can be upgraded to the emerging market status in 2020 by MSCI, but it requires at least one year for MSCI to seek advice from the international investment community and another year for investment firms to prepare for the changes and portfolio restructuring.

MSCI will publish its annual market rating and prepare a list of markets that need to be consulted for the next period in June.

— VNS

Mark Zuckerberg survived 5 hours of relentless questioning from Congress — here’s what you need to know

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  • Facebook CEO Mark Zuckerberg testified before the US Senate in a gruelling five-hour session on Tuesday.
  • Zuckerberg’s delivery was wooden, and stuck closely to company talking points — but didn’t make any major mistakes.
  • Many of the senators were painfully tech illiterate, and the 33-year-old exec found himself explaining basic features of Facebook.
  • His answers to some of the tougher questions were less satisfying, but he was never pushed as hard as he could have been.

 Mark Zuckerberg didn’t really screw up. This time, at least.

On Tuesday, the Facebook CEO testified in front of a rare US Senate joint committee hearing. The subject: Facebook’s mounting scandals, from the misappropriation of up to 87 million users’ profile data by Cambridge Analytica to Russia’s use the platform to spread propaganda and misinformation.

The stakes were high, and a major misstep had the potential to be played ad nauseam across cable news, and define Zuckerberg’s — and Facebook’s — public image for years. (Recall when, in a notorious 2010 on-stage interview, the executive grew so flustered and sweaty he had to take his hoodie off.)

The 33-year-old CEO is not a natural public speaker, and he stuck closely to talking points with a somewhat robotic delivery. Facebook’s new, broader view of its responsibilities was constantly referenced, while his frequent references to starting Facebook in his dorm room even drew jokes from some senators.

But he managed to basically stay on message throughout the five-hour hearing. Facebook is very sorry, it made a “big mistake,” it’s proactively making significant changes to prevent this happening again, and so on. His remarks closely echoed what he and other executives have repeated in numerous blog posts and press interviews over the last week or so — and shows how Facebook has managed to largely stay ahead of lawmakers’ questions.

Attempts by high-profile Republican senators like Ted Cruz to highlight perceived left-wing bias at the company failed to elicit a damaging reaction from Zuckerberg. And the tech illiteracy of many senators was on painful display, with Zuckerberg repeatedly having to explain basic concepts and features of Facebook: Zuckerberg explained Facebook doesn’t sell user data at least three times.

When it came to harder questions from more tech-literate senators — who asked questions about trust, potential violations of an FTC order, and conversations inside the company — Zuckerberg’s answers were less satisfying. But with only five minutes per senator, he was never pushed as far as he could have been.

The embattled executive isn’t out of the hotseat just yet. On Wednesday, he will appear again before Congress, this time in front of a House committee. That hearing that could easily run as long as Tuesday’s affair, if not even longer.

Here’s the key news from Tuesday’s Senate hearing:

  • Facebook employees have been interviewed by the special counsel’s office. Mark Zuckerberg revealed that unspecified employees from his company have been interviewed as part of Robert Mueller’s investigation into Russian interference in the 2016 US presidential election. (Zuckerberg himself has not been interviewed.)
  • Facebook was accused of violating a 2011 FTC order, which Zuckerberg denied. The order stipulated how Facebook must protect user data and obtain consent before it is shared, and senators suggested that the Cambridge Analytica scandal means Facebook failed in that. Zuckerberg’s (unsatisfying) defence: Users supposedly technically consented to it, even if the systems Facebook had built were clearly flawed. “We explained to people how it worked and they did consent to it,” he said.
  • Facebook has considered offering an ad-free, subscription option for users. “In general we believe the ad model is the right one for us,” Zuckerberg said. “Certainly we consider ideas like that … [it is] reasonable to think through.” However, he says that there will always be a “version” of Facebook that’s free.
  • Zuckerberg admitted most users don’t read the social network’s terms of service before signing up. The mammoth legalese documents new users are supposed to agree to came up multiple times throughout the hearing. “I would imagine that probably most people do not read the whole thing, but everyone has the opportunity to, and consents to it,” he said.
  • Facebook does not have “specific knowledge” of Russia or China scraping data and building profiles on users. Zuckerberg said Facebook is still investigating the Cambridge Analytica scandal and who else had harvested user data, but “I don’t think sitting here today we have specific knowledge of other efforts by these nation states.”
  • Zuckerberg got grilled over Facebook’s perceived political bias. Republican senator Ted Cruz outlined what he alleged was a “pervasive pattern of bias and political censorship” — from the closure of right-wing pages to the alleged suppression of conservative news stories — and hit the CEO with multiple leading questions. But the CEO handled the exchange reasonably well, holding his own.
  • Zuckerberg refused to say what hotel he was staying in. In an awkward exchange, top Democratic senator Dick Durbin asked the CEO what hotel he was staying in, which he refused to answer.”I think that might be what this is all about, ” Durbin told Zuckerberg. “Your right to privacy, the limits of your right to privacy, and how much you’d give away in modern America.”

By Rob Price (Business Insider)

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