Energy & Technology

VinFast, Vietnam’s leading electric vehicle (EV) manufacturer, commenced operations at its second domestic production facility on Sunday, 29 June, marking a strategic step towards increasing output of its compact urban EVs amid challenges in its international growth trajectory. The newly inaugurated factory, situated in Ha Tinh province in central Vietnam, boasts an initial annual capacity of 200,000 units and covers 36 hectares, according to a company statement. This expansion complements the manufacturer’s flagship facility in Haiphong, which is projected to achieve a production capacity of 950,000 units by 2026. Backed by Vingroup, Vietnam’s largest conglomerate, VinFast has laid out an ambitious roadmap to establish manufacturing footprints in key international markets including the United States, India, and Indonesia. However, its global expansion efforts have encountered obstacles, ranging from subdued demand to intense competition across the EV sector. The company last year confirmed a delay in the commencement of operations at its planned US-based factory, pushing the launch to 2028. Meanwhile, its assembly plant in India is scheduled to become operational in July 2025. “Once operational, the VinFast Ha Tinh factory will contribute to VinFast’s goal of producing 1 million vehicles per year to meet the increasing demand of domestic and foreign markets,” said Nguyen Viet Quang, Chief Executive Officer of Vingroup. Despite its global ambitions, VinFast continues to concentrate on domestic performance. The EV maker has set a target of delivering 200,000 vehicles in 2025, having already sold approximately 56,000 units in the first five months of the year, largely within Vietnam. Financially, the company reported a net loss of US$712.4 million for the first quarter of 2025. While this figure reflects a reduction from the US$1.3 billion loss posted in the previous quarter, it represents a 20 per cent increase year-on-year. Nonetheless, revenue surged by 150 per cent during the same period, reaching US$656.5 million. -Reuters

The Seoul Metropolitan Government has formally requested that major e-commerce platforms Temu and AliExpress suspend the sale of several children’s products, citing significant safety concerns following a recent inspection. In a statement issued today, city officials reported that a review of 35 children’s items available on the platforms — including umbrellas, raincoats and rain boots — revealed that 11 of them failed to meet South Korean safety regulations. The inspection found several products containing hazardous substances in quantities far exceeding the country’s legal limits. Of particular concern were six umbrellas containing phthalate-based plasticisers at concentrations up to 443.5 times higher than permitted levels. Phthalates, commonly used to increase the flexibility of plastic, are associated with endocrine disruption. In addition, two products were found to contain lead at concentrations reaching 27.7 times the allowable threshold. Lead exposure beyond safety limits is known to impair reproductive function and elevate the risk of cancer. Although the platforms are not legally obligated to comply with the municipal government’s request, Seoul authorities have stressed the urgency of removing the non-compliant items from online sale. The government noted the long-term health risks of exposure to hazardous substances in children’s products and advised consumers to scrutinise product information thoroughly prior to purchase. Neither Temu nor AliExpress immediately responded to requests for comment. This development comes amid mounting international scrutiny of ultra-low-cost online retailers, including Temu, AliExpress, and Shein. These companies have rapidly gained global market share by offering fast fashion and accessories at competitive prices, positioning themselves as strong competitors to Western giants such as Amazon. However, concerns around product quality and consumer safety have increasingly accompanied their rise. In a related move last year, the Seoul government highlighted that women’s accessories sold by Temu, AliExpress and Shein contained toxic substances in concentrations several hundred times above acceptable limits. The European Union also added Shein to its list of major digital platforms subject to stricter product safety regulations, with a particular emphasis on protecting minors from harmful goods. -AFP

Xiaomi Corporation’s shares surged 8% to an all-time high after the company revealed overwhelming demand for its latest electric vehicle, the YU7 SUV. Within just one hour of launch, the model secured 289,000 pre-orders, far surpassing market expectations and underscoring the brand’s growing presence in China’s competitive EV market. Priced at 253,500 yuan (approximately $35,360), the YU7 is positioned as a direct rival to Tesla’s Model Y, which starts at 263,500 yuan in China. The SUV represents Xiaomi’s second vehicle release, following the debut of its SU7 sedan. The new model enters a saturated electric vehicle landscape, as scrutiny mounts over assisted driving technologies and regulatory pressures on automakers intensify. At the launch event in Beijing, Xiaomi founder Lei Jun positioned the YU7 squarely against the Model Y, continuing a strategy reminiscent of how he previously compared Mi smartphones to the iPhone. Lei acknowledged the challenges ahead, stating the company is preparing to face “the biggest competitor” and other strong contenders in the sector. With an eye on the long term, Lei has pledged 200 billion yuan in investment over five years as part of Xiaomi’s ambition to become a global leader in smart devices, spanning everything from automotive technology to AI wearables and chip development. The YU7 forms a key component of that strategy. Pre-orders began on Thursday with a refundable 5,000 yuan deposit. In a surprising move, customers awaiting delivery of the SU7 were given a three-day window to switch to the YU7. Xiaomi reported over 200,000 pre-orders for the SUV within the first three minutes following the launch announcement. Analysts at Goldman Sachs described demand as exceeding both company and market expectations, forecasting that Xiaomi will continue strengthening its position in the premium electric vehicle segment in China. The firm raised its stock price target by 6% to HK$69. According to Bloomberg Intelligence, the YU7 could be instrumental in accelerating Xiaomi’s EV sales, potentially driving a 209% increase in 2025. With sport utility vehicles enjoying greater popularity than sedans in China, the YU7 is expected to expand Xiaomi’s consumer base and take market share from rivals including Tesla and Nio. Analysts project the SUV could account for 41% of Xiaomi’s EV deliveries in the second half of the year, surpassing the company’s EV sales target by 13%. The top YU7 variant is priced at 329,900 yuan, featuring a driving range of up to 760 kilometres (470 miles) and acceleration from 0 to 100 kilometres per hour in 3.23 seconds. The model comes in nine colours and includes high-end features such as lidar-based driver assistance, an 800-volt fast-charging platform, large touchscreens, massage chairs, and built-in storage compartments. The YU7 will serve as a crucial test of market confidence in Xiaomi’s automotive ambitions following a fatal crash involving the SU7, which has drawn increased scrutiny from Chinese regulators. The launch also comes amid broader government pressure on automakers to refrain from aggressive pricing tactics and financial manoeuvres, including using near-new vehicles to artificially boost sales. Despite regulatory headwinds, Lei expressed optimism that the YU7 will support Xiaomi’s automotive division in reaching profitability in the second half of the year, potentially marking one of the fastest paths to breakeven in the industry. Investors have responded positively to this vision. Xiaomi’s market capitalisation now stands near $200 billion, surpassing BYD, China’s leading EV manufacturer. The SU7 has already outsold the Tesla Model 3 year-to-date. In addition to the YU7, Xiaomi’s event showcased a range of new products, including a pair of 1,999 yuan AI-powered smart glasses capable of filming and interpreting visual information, the MIX Flip 2 foldable smartphone, and a tablet equipped with Xiaomi’s proprietary Xring O1 chip. -Bloomberg