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

In a decisive move underscoring South Korea’s commitment to artificial intelligence, President Lee Jae-myung on Monday nominated Dr Bae Kyung-hoon, a leading AI authority and head of LG AI Research, as Minister of Science and ICT. The appointment is widely seen as a strategic pivot to fast-track the country’s ambition to become one of the world’s foremost AI powers. The nomination of Dr Bae follows closely on the 15 June appointment of Ha Jung-woo, head of Naver’s AI Innovation Centre, to the newly established position of Senior Secretary for AI and Future Planning. This senior Blue House role is designed to steer AI-related investment and national policy coordination. Presidential Chief of Staff Kang Hoon-sik confirmed the decision reflects a high-level commitment to bolstering South Korea’s global AI competitiveness. “We expect Bae to strengthen AI competitiveness alongside Ha Jung-woo,” he stated. President Lee has pledged a monumental investment of over ₩100 trillion (approximately USD 73.5 billion) through public-private partnerships aimed at accelerating the country’s AI ecosystem. The enlistment of top executives from major conglomerates such as LG and Naver signals a profound integration of private-sector expertise into national policy. Dr Hwang Yong-sik, professor at Sejong University College of Business and Economics, affirmed the strategic significance of these appointments. “There is growing recognition that relying solely on the public sector for AI development has its limitations,” he said. “While the government can provide direction, true progress depends on the deep involvement of the private sector.” Dr Bae brings an extensive background that bridges startups, academia, and corporate R&D. His early career included a role at Samsung Thales, a now-defunct joint venture between Samsung Techwin and French defence company Thales. He later joined SK Telecom’s Future Technology R&D Centre before moving to LG in 2016. At LG, Dr Bae held senior positions across its key technology subsidiaries and, in 2020, became the founding president of LG AI Research. Under his leadership, the organisation launched South Korea’s first hyperscale language model, Exaone, in 2021. It was commercialised in 2023, and an open-source third iteration was released last year. Most recently, in March 2025, his team debuted Exaone Deep, the country’s first interference AI model. Beyond the corporate sphere, Dr Bae has contributed to national policy as a government adviser on AI governance and data privacy. His rare combination of technical depth and leadership experience positions him uniquely in the fast-evolving field. “Only a handful of professionals in South Korea can handle a frontier model from end to end, and Bae is one of them,” noted Dr Choi Byung-ho, professor at Korea University’s Human-inspired AI Research Lab. “We are in a race against time. The pace of AI development demands rapid, expert decision-making. This is not a role for a generalist or a bureaucrat.” Pending confirmation by Parliament, Dr Bae will assume oversight of the Ministry of Science and ICT, with responsibility for the nation’s scientific and digital infrastructure policy at a time when global competition in AI intensifies. -The Korea Herald

SoftBank Group CEO Masayoshi Son has outlined an ambitious new direction for the Japanese investment giant, revealing his vision for SoftBank to become the world’s leading platform provider for “artificial super intelligence” (ASI) over the next decade. Speaking at the company’s annual shareholder meeting on Friday, Son said: “We want to become the organiser of the industry in the artificial super intelligence era.” He drew comparisons between his goal and the dominance enjoyed by major US technology firms such as Microsoft, Amazon, and Google, describing the ASI sector as one likely to be governed by a “winner takes all” dynamic. Son, a long-time advocate of disruptive technologies, has defined artificial super intelligence as a form of AI capable of surpassing human abilities by a factor of 10,000. His latest strategy signals a bold return to the kind of aggressive investment approach that once defined SoftBank’s rise — from early success with Alibaba to high-profile setbacks like WeWork. This year, SoftBank has already made significant moves in the AI space. The group acquired US semiconductor designer Ampere for $6.5 billion and has underwritten as much as $40 billion in new investment in OpenAI, the company behind ChatGPT. Son confirmed that SoftBank’s total committed investment in OpenAI now stands at $32 billion since its initial funding in autumn 2024. “I’m all in on OpenAI,” he said, also expressing regret over not having invested sooner. He added that he expects OpenAI to pursue a public listing in the future. SoftBank previously held a 5% stake in Nvidia but divested in 2019 — prior to the 2022 AI boom catalysed by ChatGPT’s release. Nvidia has since emerged as the dominant player in AI chipmaking and one of the world’s most valuable companies. The group’s renewed focus on high-growth technology comes after a period of retrenchment. Following the decline in valuations of portfolio companies from 2022, SoftBank had adopted a more cautious stance. However, its fortunes reversed with the $5 billion IPO of chip designer Arm in September 2023. The appreciation in Arm’s share price has significantly strengthened SoftBank’s asset base, allowing it to leverage its holdings for further investment. In June, SoftBank raised an additional $4.8 billion through the sale of a portion of its stake in T-Mobile. Despite the company’s risk-on posture, Son assured shareholders that SoftBank remains committed to disciplined investment, maintaining the financial capacity and strategic user base needed to act decisively during industry inflection points. -Reuters