Latest news with #Vietnam
Bloomberg
an hour ago
- Business
- Bloomberg
Mideast War Won't Shut Down the Silicon Road
The big theme in Asian supply chains over the past decade has been relocation. Entire industries have sought to pare their reliance on China by shifting manufacturing to other low-cost destinations like Vietnam and India. Japanese carmakers and Indian pharmaceutical firms have chosen Mexico to be closer to American demand. More recently, however, a new route is emerging — from Asia to the Middle East. Speculation that the US is on the verge of joining Israel's attack on Iran may unsettle business leaders' current plans and delay activity along the corridor. However, as long as hostilities don't spiral into a catastrophic event, such as the closing of the all-important Strait of Hormuz to shipping, they are unlikely to derail the economic case for a reprisal of the historic Silk Road.
Coin Geek
5 hours ago
- Business
- Coin Geek
Vietnam legalizes 'crypto,' limits AI use under new law
Getting your Trinity Audio player ready... Vietnam has officially legalized digital assets after the National Assembly of Vietnam, the country's legislature, overwhelmingly approved the Law on Digital Technology Industry on June 14, with 441 of 445 lawmakers voting in favor of the bill. The legislation defines digital assets as 'digital technology products created, issued, transferred, and authenticated using blockchain technology, with prices and property rights in accordance with civil and relevant laws.' This definition includes security tokens/encrypted securities assets, payment tokens, utility tokens, and mixed tokens—all of which are now regulated and provided with clear property rights, per the law. When it comes into force on January 1, 2026, the legislation will also bring incentives for digital technology development, particularly semiconductor manufacturing, artificial intelligence (AI), and digital technology startups. Outside of incentives, the law mandates the implementation of measures to ensure network safety and security to 'prevent and combat money laundering, terrorist financing, and financing the proliferation of weapons of mass destruction.' This is likely an attempt to get Vietnam off the Financial Action Task Force (FATF) 'grey list' for 'jurisdiction under increased monitoring,' which it has been on since June 2023. Vietnam has seen digital asset adoption skyrocket in recent years despite the legal uncertainties prior to the law's passage, with blockchain analysis firm Chainalysis ranking the country fifth globally for digital asset adoption in 2024. In March, local media reported that Prime Minister Pham Minh Chinh had directed the Ministry of Finance and the State Bank of Vietnam to finalize digital asset regulation proposals by the end of the month in a bid to reach a national growth target of 8% by year-end. The regulation took a couple more months than hoped, but now the country has a dedicated digital asset law, it's a case of better late than never. The next stage will involve the government outlining specific business conditions, classifications, and oversight mechanisms for the asset types defined in the regulation. Categorizing digital assets One of the key features of the new legislation is the creation of three main categories of digital assets, based on the technology used and purpose of use, namely: virtual assets that can be used for exchange or investment purposes; crypto assets that use encryption technology to authenticate assets during creation, issuance, storage, and transfer; and other digital assets. According to the law, virtual and crypto assets do not include 'securities, digital forms of legal currency, and other financial assets as prescribed by civil and financial laws'—meaning these products would either fall under the category of 'other digital assets' or fall outside the remit of the Digital Technology Law. AI provisions While encouraging innovation and development in AI, certain activities are strictly prohibited by the new law. Specifically, an AI system that deploys techniques for the purpose of 'influencing the behavior of an individual without the individual being aware of it' or using said techniques to 'entice or deceive to materially distort the individual's behavior by impairing the ability to make decisions resulting in significant harm.' It is also illegal to deploy or develop an AI system used to evaluate or classify individuals based on social behavior or systems that exploit people who are vulnerable due to age, disability, economic or social circumstances. Vietnam's tech hub ambitions The new legislation is a signal of Vietnam's ambition to become a digital tech hub, and it sets an ambitious target of 150,000 digital technology enterprises by 2035, according to local media. In order to achieve this, the law lays the groundwork for providing preferential treatment for digital technology companies when it comes to land, credit, and tax, as well as incentives for research, testing, development, production, and application of digital technology products and services. For example, companies developing semiconductors, AI systems, and digital infrastructure can receive corporate income tax rates as low as 10% for 15 years, along with exemptions from import duties and land rental fees. In a range of other incentives, the salaries and wages of experts, scientists, and people with special talents working on projects are also exempt from personal income tax for a period of five years, while large-scale projects investing over $80 million in data centers or $160 million in semiconductor facilities are eligible for additional 'special' incentives. Watch | From BRICS to Blockchain: How Global Trade and Digital Currencies Are Evolving title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen>
CNA
11 hours ago
- Politics
- CNA
ASEAN states evacuating citizens from Iran, Israel, as some voice concerns over latest conflict
KUALA LUMPUR/JAKARTA: Southeast Asian countries are gearing up to evacuate their citizens from the latest conflict in the Middle East, even as some step up their condemnation of Israel in support of Iran amid calls for a de-escalation of their confrontation. Malaysia said on Wednesday (Jun 18) it will evacuate its citizens in Iran by Friday through Turkmenistan. According to government spokesperson Fahmi Fadzil, there is a 'small number' of Malaysians comprising students, tourists and embassy personnel in the country. Indonesia's embassy in Tehran posted on Instagram on Wednesday it would immediately evacuate its citizens who are willing. There are 386 Indonesians in Iran, many of whom are students in the city of Qom. Evacuation details would be conveyed through the WhatsApp group of Indonesian citizens in Iran and by region, the Indonesian embassy said. Vietnam facilitated the departure of 18 of its nationals from Iran to Azerbaijan on Monday, 16 of whom arrived back in Vietnam on Wednesday, national news outlet Viet Nam News reported. In Thailand, the military has aircraft on standby to fly home its citizens from conflict zones in the Middle East, Prime Minister Paetongtarn Shinawatra said. About 40,000 of its citizens are living in Israel and 300 in Iran. As for the Philippines, which has about 30,000 citizens in Israel and at least 1,180 in Iran, the government is coordinating the evacuation of its people and looking for safe routes out of conflict zones, President Ferdinand Marcos Jr said on Wednesday. Over 100 Filipinos in Israel have asked to be repatriated and eight have been injured in attacks, its Department of Migrant Workers said. But Marcos said the government's assessment is that the situation had not yet reached the point of ordering the mandatory repatriation of Filipinos from Israel and Iran, as reported by news portal Israel launched large-scale strikes against Iran last Friday (Jun 13) targeting its nuclear facilities, ballistic missile factories and Iranian security chiefs to prevent Tehran from building a nuclear bomb. Iran has, in turn, retaliated with missile strikes that have killed 24 people in Israel. United States President Donald Trump, whose country is Israel's biggest arms supplier, has declined to say if he has made any decision on whether to join Israel's campaign. Singapore has, in its Ministry of Foreign Affairs online travel advisory for Iran, said Singaporeans in the country should consider leaving as soon as is practicable. 'Singapore has no diplomatic mission in Iran, which constrains our ability to extend consular assistance in an emergency,' the ministry said. In its travel advisory for Israel and the Palestinian Territories, the ministry said Singaporeans should avoid all travel to Israel, the Gaza Strip and the West Bank. Israel has also waged war in Gaza since Hamas militants attacked it on Oct 7, 2023, killing over 1,200 people and taking over 250 hostages. Since Jan 1, Singaporeans visiting Israel have been required to apply for an Electronic Travel Authorisation (ETA-IL) on the Israel Population and Immigration Authority website. SOME SOUTHEAST ASIAN COUNTRIES CONDEMN ISRAEL'S STRIKES ON IRAN Leaders in the region have criticised Israel and expressed deep concern over the situation there. Among the latest to do so was Malaysia Prime Minister Anwar Ibrahim on Jun 19. He slammed Israel's strikes as actions carried out with 'utter impunity' that constitute a 'blatant violation of international law, further eroding the norms that hold the global order together'. 'We call on those with power and influence to speak plainly and act decisively to restrain further escalation,' Anwar said in his speech at the Asia-Pacific Roundtable, a conference organised by the think tank Institute of Strategic & International Studies Malaysia. Days ago on Jun 15, Anwar had said Malaysia must stand up for its friends, including Iran, and defended their right to retaliate, following the response on Jun 13 by its foreign ministry in condemning Israel's attacks as 'a flagrant violation of international law including the UN Charter, and posing a serious threat to international peace and security'. Indonesian President Prabowo Subianto called for a de-escalation on Monday while in Singapore for a retreat with its Prime Minister Lawrence Wong. "We emphasise the importance of a peaceful resolution through negotiations and call for an immediate ceasefire," he said. Indonesia stepped up its criticism on Wednesday, with foreign ministry spokesperson Rolliansyah Soemirat saying: 'The position of the Indonesian government is very clear that Indonesia condemns the attacks carried out by Israel. 'This is a violation of the territorial integrity and the sovereignty of Iran and is also a clear violation of international law.' Rolliansyah also said under no circumstances should nuclear installations be attacked because of the danger to human safety and the environment. Singapore on Jun 13 said it is deeply concerned about the escalation of tensions in the region and urged all parties to exercise restraint and to de-escalate. A day after Israel's campaign against Iran, Brunei said it 'strongly condemns' the military strikes. 'These unprovoked actions come as international efforts intensified to achieve a nuclear deal between the Islamic Republic of Iran and the United States of America, as well as to work towards a permanent solution to the conflict in the Middle East,' it said. Brunei was also part of a joint statement by Arab and Islamic countries on Monday that condemned Israel's attack on Iran, called for a halt in Israeli hostilities against Iran, and a 'swift return to the path of negotiations'. Meanwhile, a spokesperson of Vietnam's Ministry of Foreign Affairs said the country was deeply concerned about the current tensions in the Middle East. Thailand has urged both sides to 'exercise utmost restraint' to prevent further deterioration of the situation and the expansion of conflict, while the Philippines urged a de-escalation 'with the welfare of the people of the Middle East and the Filipinos there in mind'. IS REGION'S RESPONSE TO IRAN-ISRAEL CONFLICT LESS VOCIFEROUS? While Southeast Asian countries are not alone in questioning the legal basis of Israel's strikes on Iran, some experts perceive differences in how the region is responding to the Israel-Iran confrontation compared to Israel's war in Gaza. The Israel-Palestine issue and the Gaza war are more familiar to Southeast Asian countries, and Muslim-majority countries like Indonesia and Malaysia have been consistent in speaking up for the Palestinian cause, said Julia Roknifard, a senior lecturer at Taylor's University School of Law and Governance in Malaysia. 'It is a very familiar issue that has been there for decades and the current (Malaysia) Prime Minister Anwar Ibrahim has been very outspoken about it since October 2023, when the current escalation started – the motion that drew criticism from Malaysia's Western partners, especially the US,' she told CNA. In this region, Indonesia, Malaysia and Brunei do not officially recognise Israel and have no diplomatic relations with it. While Malaysia speaks about developing relations with Iran, it has more history bonding with Arab nations and its approach to Iran has always been cautious, not the least due to the attempts not to upset the Americans, said Roknifard. Malaysia's response to Israel's actions against Iran is less vociferous because Iran is a majority Shia country, while Malaysia's Muslims are Sunni, said political analyst and Asia Strategy and Leadership Institute senior adviser on international affairs Oh Ei Sun. "It is not only Malaysia, but almost everybody else in the Muslim world," he said. Shia and Sunni are the two main denominations in Islam, although the latter makes up about 90 per cent of all Muslims worldwide. Malaysia and Indonesia are majority Sunni countries. In Malaysia, Shia practitioners face restrictions on practising their religion openly as the denomination is considered by the authorities to be 'deviant'. In Indonesia, Shia practitioners are perceived as deviant by many people and often face persecution in local villages. More than 90 per cent of Muslims in Iran, on the other hand, are Shia. Nonetheless, Malaysia's position is clear in the Israel-Iran conflict: That Israel is the aggressor violating international law, said Bunn Nagara, a fellow at the Perak Academy, a think tank and cultural hub based in the state. "How do you measure (the response)? There is no unit of measurement of the Malaysian response. There is no quantifiable data. There is deep disapproval and opposition and total rejection of the violent attitude (of Israel)," he said. Over in Indonesia, the world's largest Muslim-majority country, religion is not a factor in its foreign policy, said analysts. International relations lecturer Teuku Rezasyah said this applies to the Israel-Iran conflict as well as Israel's war against Hamas. 'Indonesia has never mentioned Islam in its statements when condemning wars. The government has also never distinguished between Shia and Sunni Muslims, although the society may have a different view,' added Rezasyah. Indonesia has a diplomatic relationship with Iran and trade between the two countries grew from US$206.2 million in 2023 to US$217.3 million last year. Malaysia is Iran's largest trading partner among Association of Southeast Asian Nations (ASEAN) countries, with total trade valued at RM2.6 billion (US$0.57 billion) in 2024, a 24.6 per cent increase from the previous year. Amid Israel's military campaign, Iran has invited Prabowo to visit the country and urged Indonesia and Islamic countries to boycott Israel's products. On Tuesday (Jun 17), Iran's ambassador to Indonesia Mohammad Boroujerdi said: 'We hope that Indonesia, as the world's largest Muslim-majority country, continues to support Iran on various international platforms.' Roknifard believes a diplomatic response is the only viable option, and the likely role of any Southeast Asian nation is only as part of a coalition pressing the UN Security Council (UNSC) to take measures. 'And even the discussion at the UNSC, Israel tends to disregard,' she said. 'Then we come to the question – if what it takes for this conflict to stop (both in Gaza and Iran) is US pressure on Israel, then how can the rest of the world effectively pressure the US into realisation of such a need,' she added. 'Under Trump and his delusional perception of distribution of power in the world, it does not seem possible.'
Malay Mail
14 hours ago
- Business
- Malay Mail
Fitch Ratings flags trade war risk in Asia but Malaysian banking outlook stays firm
KUALA LUMPUR, June 19 — Fitch Ratings has maintained its 'neutral' outlook on Malaysia's banking sector for 2025 while adjusting the outlooks for several Asia-Pacific countries amid trade war exposures. The rating agency said it has adjusted its outlooks for the banking sectors in South Korea, Taiwan, Thailand and Vietnam to reflect weaker prospects for banks in 2025 amid exposures related to the United States (US) trade policies, though the overall banking sector outlook for Asia-Pacific remains 'neutral'. It downgraded the outlooks for South Korea, Taiwan and Thailand to 'deteriorating' from 'neutral' at the start of 2025, while the outlook for Vietnam was revised to 'neutral' from 'improving' previously. 'We maintain the 'deteriorating' outlook on China's banking sector, reflecting persistent challenges for banks, as government policies weigh on profitability and banks experience asset quality pressure from a weaker economy and property sector,' it said in a statement today. Among the emerging markets, Fitch has kept a 'neutral' outlook on banking sectors in India, Indonesia, the Philippines, and Mongolia. On the 'deteriorating' outlooks for banking sectors in South Korea, Taiwan and Thailand, Fitch said this is partly because banks' loan growth, asset quality and profitability will likely weaken in these markets as tariffs rise, given their higher export exposure and sales to the US. 'There is great uncertainty around the ultimate trajectory of US tariffs, but Asia-Pacific's high degree of trade openness and its exposure to US demand leave it particularly vulnerable to potential US tariff increases. 'For the most affected banking systems, lower profitability and weaker asset quality would be key channels for contagion from the tariffs,' it said. However, it added, the ultimate effects of the trade war on regional bank sectors would depend on final tariff outcomes, their impact on local economic growth, banks' exposure to vulnerable sectors, and the potential for changes in fiscal, monetary or credit policy. — Bernama
The Standard
14 hours ago
- Business
- The Standard
Southeast Asia's budget airlines bet on travel demand, despite competition woes
An airplane of VietJet Airline is seen at Noi Bai International Airport, in Hanoi, Vietnam, May 28, 2025. REUTERS/Chalinee Thirasupa/File Photo
