international

Fast-fashion giant Shein reported a 13.7% increase in carbon emissions from transportation in 2024, according to its latest sustainability report released on Friday. The company also revised its 2023 emissions figure, which is now 18% higher than previously disclosed, following a recalculation of its reporting methodology. The report shows that emissions related to transporting goods to and between Shein facilities, as well as to customers — including returned items — reached 8.52 million tonnes of CO2 equivalent (CO2e) in 2024, up from a restated 7.49 million tonnes in 2023. The initial 2023 figure had been reported as 6.35 million tonnes. Shein’s logistics strategy relies heavily on air freight, enabling the company to ship low-cost garments directly from over 7,000 suppliers in China to consumers across global markets. This model, while key to its rapid delivery promise, is notably more carbon-intensive than the maritime routes preferred by traditional apparel retailers. In contrast, Inditex, the owner of Zara, reported 2.61 million tonnes of CO2e in transport emissions for its 2024 financial year — less than a third of Shein’s total. To address the environmental impact and mounting scrutiny, Shein said it has expanded its use of sea freight and trucking and plans to localise more of its production, packaging, and shipping operations. The company aims to reduce delivery times and shipping costs while mitigating emissions by operating closer to end markets. Shein has also broadened its sourcing network beyond China, developing supplier bases in Brazil and Turkey. This shift is partly driven by the imposition of steep tariffs on Chinese goods by the United States, which remains Shein’s largest market. In May, the Science-Based Targets Initiative approved Shein’s emissions reduction targets, which include a 25% reduction in Scope 3 (indirect) emissions by 2030, using 2023 as the baseline. As the company continues its global expansion, it is seeking to go public. Following regulatory challenges in China, Shein has shifted its focus from a proposed London listing to pursuing an initial public offering in Hong Kong. -Reuters

Boeing has forecast that airlines worldwide will require approximately 43,600 new aircraft over the next two decades, with growth led by emerging markets such as China and Southeast Asia where rising affluence is driving greater demand for air travel. The US-based aerospace manufacturer’s latest projection represents a slight downward revision from last year’s estimate of 43,975 new aircraft. The adjustment reflects a more cautious outlook on global economic growth amid persistent geopolitical and macroeconomic uncertainty. While international trade tensions and protectionist measures—particularly those implemented during the Trump administration—continue to challenge global markets, Boeing notes the aviation sector’s historic resilience. The industry has successfully navigated a range of crises, including the COVID-19 pandemic which temporarily grounded fleets worldwide. “Over the past 25 years, air travel has tripled while the global fleet has doubled,” said Darren Hulst, Vice President of Commercial Marketing at Boeing, during a media briefing on 10 June. “At the end of the day, our market has proven to be both resilient and a growth industry.” Boeing anticipates that the global commercial fleet will double in size, reaching 49,600 aircraft by 2044. This projection aligns with a similar forecast issued recently by European competitor Airbus SE. By that time, carriers in emerging economies are expected to operate more than half of the world’s jetliners—up from around 40% in 2024. Single-aisle aircraft are set to dominate this growth. Boeing forecasts these narrowbody jets will account for 72% of the global fleet by 2044, a notable increase from their current 66% share. Models such as Boeing’s 737 Max and Airbus’s A320neo family are expected to play a central role in this expansion. However, surging post-pandemic demand has outpaced the production capabilities of both manufacturers. Current manufacturing rates remain close to levels seen a decade ago, resulting in a significant shortfall of new aircraft. Boeing and Airbus have collectively produced approximately 1,500 fewer jets than originally planned—a gap that continues to widen. According to Hulst, closing this supply-demand imbalance will require both companies to recover to pre-pandemic delivery rates and exceed them over the medium term. “That probably takes at least until the end of the decade,” he added. -Bloomberg

HANOI : Vietnam’s National Assembly has formally approved a staged increase in special consumption tax on alcoholic beverages, which will see the rate climb from the current 65% to 90% by 2031. The measure, passed on Saturday 14 June, reflects the government’s ongoing strategy to discourage alcohol consumption through fiscal policy, although the final rate is lower than the originally proposed ceiling of 100%. Under the new legislation, the excise tax on beer and high-strength spirits will be raised to 70% by 2027—one year later than previously anticipated—before incrementally increasing to 90% by 2031. The Ministry of Finance stated the move is intended to address public health concerns by curbing alcohol intake, particularly in light of the country’s growing consumption trends. Vietnam remains the second-largest beer market in Southeast Asia, according to a 2024 report by KPMG. However, the domestic industry has already come under pressure from tightening regulatory measures. A significant setback came in 2019, when the government introduced strict drink-driving laws that set a zero-alcohol threshold for motorists, which has contributed to declining demand. The industry—dominated by global brewers Heineken (Netherlands), Carlsberg (Denmark), and domestic players Sabeco and Habeco—has seen revenue fall for three consecutive years, according to the Vietnam Beer and Alcoholic Beverage Association. In response to deteriorating market conditions and the prospect of higher taxation, Heineken last year suspended operations at one of its facilities in the country. In a parallel development, legislators also approved a new sugar-sweetened beverage levy, targeting drinks containing more than 5g of sugar per 100ml. The levy is scheduled to take effect in 2027 at 8%, rising to 10% in 2028, in a move aligned with broader public health objectives. -Reuters

In an unprecedented move to streamline government operations and cut public expenditure, Vietnam’s National Assembly on 12 June approved plans to reduce the number of provinces and cities from 63 to 34, resulting in the elimination of nearly 80,000 state positions. The reform, hailed by officials as the most comprehensive administrative restructuring since the country’s founding in 1945, is part of a broader effort by the government to modernise governance and deliver what it calls “fast, stable and sustainable development.” The vote saw overwhelming approval with 461 in favour, just one opposing and three abstentions. This restructuring follows an earlier reform in February, which reduced the number of ministries and agencies from 30 to 22 and led to 23,000 job cuts. Together, the initiatives mark a significant shift in the structure and culture of public administration in the communist nation, where state employment has traditionally been considered secure and lifelong. Interior Minister Pham Thi Thanh Tra described the reform as a “revolution”, revealing that 79,339 officials will be affected—either retiring early or exiting public service. While the government has promised compensation, some long-serving officials expressed personal dismay at the abrupt end to their careers. One provincial officer, speaking anonymously, said he was “shocked and sad” to be leaving after more than three decades in the role. “I may receive some billion dong in compensation, but I am not happy,” he said, referring to a severance package of approximately US$38,000. “I don’t know what to do now, though I am still completely fit for work.” Among the broader population, reactions were mixed. While some supported the reforms for the promise of more efficient governance, others mourned the loss of regional identities. Nguyen Thang Loi, 52, from the soon-to-be merged Thai Binh province, said: “I fully support the decision, but it feels strange to say I now come from Hung Yen.” Communist Party General Secretary To Lam, the country’s most powerful political figure, emphasised the reform’s intent to reposition administrative bodies from “passive management to active service to the people.” The new leadership structures for the reconfigured provinces and cities will be announced by 30 June, with full operations scheduled to begin from July. Concurrently, the National Assembly is expected to pass a revised national constitution that will see the elimination of the district-level administration and the expansion of commune-level governance, reducing the existing three-tier administrative framework to two levels. The sweeping reforms come amid broader efforts to combat corruption and improve governance. Vietnam’s high-profile anti-graft campaign, dubbed the “blazing furnace,” has ensnared numerous senior officials since 2021, including two former presidents and three deputy prime ministers. Vietnam remains a key global manufacturing hub and posted 7.1 per cent GDP growth in 2024. It is targeting 8 per cent growth in 2025 as part of its long-term goal to reach middle-income country status by 2030. However, this growth trajectory faces external risks, including a threatened 46 per cent tariff on Vietnamese goods by the United States, prompting urgent trade negotiations. The reforms mark a dramatic shift from Vietnam’s traditionally cautious approach to political change, which has favoured stability to maintain investor confidence. The scale and speed of implementation under General Secretary Lam suggest a new phase of governance that prioritises structural efficiency, national competitiveness, and long-term economic ambition. -AFP