Vietnam nominates public security minister to be new president | Politics News

To Lam has been public security minister since 2016 and has taken a hard line on human rights movements in the country.

Vietnam’s governing Communist Party has nominated the public security minister to be the next president, state media reported, months after his predecessor stepped down as part of a anticorruption crackdown.

On Saturday, the party’s central committee picked To Lam, 66, the Vietnam News Agency reported.

Lam has been public security minister since 2016 and has taken a hard line on human rights movements in the country.

In March, President Vo Van Thuong resigned after a little more than a year in office due to “violations” and “shortcomings”, the party said.

Thuong was the second president to quit in two years amid an anticorruption crackdown that has seen several senior politicians fired and top business leaders tried for fraud and corruption.

When he took office, Thuong said he was “determined to fight corruption”, and was believed to be close to party General Secretary Nguyen Phu Trong – who is seen as the most powerful figure in the country.

Thousands of people, including top officials and senior business leaders, have been caught up the country’s “blazing furnace” campaign against corruption, which has touched the highest echelons of Vietnamese politics and is led by Trong.

‘Violations and shortcomings’

Tran Thanh Man, 61, was also nominated as the new head of Vietnam’s National Assembly, state media said, becoming one of Vietnam’s four most powerful leaders.

Man succeeds Vuong Dinh Hue, who asked to step down last month because of “violations and shortcomings”.

The nominations have been accepted by the party’s central committee but will be officially voted in by the National Assembly, which is due to meet next week.

All top leadership “must be truly united, truly exemplary, wholehearted and devoted to the common cause”, the central committee said.

In April, a court in Vietnam sentenced a property tycoon to death for her role in a $12.5bn financial fraud case, the country’s largest on record.

Truong My Lan, chair of major developer Van Thinh Phat, was found guilty of embezzlement, bribery and violations of banking rules at the end of a trial in Ho Chi Minh City.

Lan’s arrest in October 2022 was among the most high-profile in the continuing anticorruption drive that started in 2016 and has picked up pace since 2022.

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Vietnam Debuts Academy of Blockchain, AI with Plans to Train a Million People in Emerging Tech

Vietnam is ramping up efforts to join other Asian nations like India, Japan, China, and South Korea in exploring the distributed ledger technology, also called the blockchain tech. The country recently launched its Academy of Blockchain and AI Innovation (ABAII) with the aim to train a million people in using these advanced technologies. The aim of this academy is to ‘universalise’ these emerging technologies – which would essentially result in the widespread experiment and adoption of Web3 and Artificial Intelligence (AI).

In the first leg of offering blockchain and AI training sessions, the ABAII will be collaborating with 30 universities from around the country. A total of 100,000 students from across these universities will form the first batch for this academy, Vietnam News has reported

The training sessions, as part of this initiative, will include workshops, idea creation competition, as well as the 2024 university tour programme (Unitour 2024) among other activities. Through the course of this initiative, Vietnam is looking to educate tech students on the potential use cases of blockchain and AI in sectors like banking data analysis as well as digital economy and finance.

Dao Trung Thanh, a veteran in Vietnam’s telecom and tech sector, has been appointed as the chief of the ABAII, his update on LinkedIn shows. This initiative is not the first pro-blockchain step that Vietnam has taken in recent times. In 2022, the Vietnam Blockchain Association (VBA) was formed and tasked with the responsibility of researching around blockchain as well as drafting legal guidelines for the Web3 community. Both, the VBA as well as the ABAII organised a meet-up with 500 students – addressing the advancements and challenges around AI and blockchain.

The global blockchain market is reportedly going to hit a whopping market size of $825.93 billion (roughly Rs. 68,95,330 crore) by 2032. China, India, Japan, and South Korea are also conducting informative discussions around blockchain with their respective student populations to give them an early nudge to consider Web3 development as a viable career path.


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Vietnam jails soft drinks tycoon for eight years in $40m fraud case | Corruption

Tran Qui Thanh was found guilty of scamming investors over loans issued in 2019 and 2020.

Vietnam’s top soft drinks tycoon was jailed for eight years on Thursday in a $40m fraud case – the latest high-profile business figure snared in the country’s sweeping crackdown on corruption.

The communist nation’s wide-ranging campaign to wipe out endemic corruption has seen more than 4,400 people charged with criminal offences, including officials and senior business figures.

A court in Ho Chi Minh City found Tran Qui Thanh and his two daughters guilty of scamming investors over loans issued in 2019 and 2020.

Thanh, the 71-year-old chairman of beverage group Tan Hiep Phat, was ruled to have masterminded scams to appropriate assets put up as collateral against loans, state media reported.

Even when the borrowers paid back the money with interest, Thanh would refuse to give back the assets on various pretexts, including claiming they had forfeited their repurchase rights due to contract breaches.

The court sentenced Thanh’s 43-year-old daughter Tran Uyen Phuong, the company’s deputy CEO, to four years in jail.

Younger daughter Tran Ngoc Bich, 40, was given a suspended three-year jail sentence.

Tan Hiep Phat is one of Vietnam’s biggest beverage companies, known for its range of bottled tea and energy drinks.

In his final words before court, Thanh said he regretted what happened and was ready to take responsibility.

“I would like to be given leniency, handing me the chance to come back to society soon for my continued work and devotion,” Thanh was quoted as saying.

Some of Vietnam’s most successful business leaders have been snared in the corruption purge.

In one of the biggest fraud cases in history, property tycoon Truong My Lan was sentenced to death earlier this month for masterminding a swindle that has caused losses estimated at $27bn.

Facing justice with Lan were 85 others, including senior banking officials, being sentenced on charges ranging from bribery and power abuse to appropriation and violations of banking law.

In March, a Hanoi court gave luxury property tycoon Do Anh Dung eight years in prison for cheating thousands of investors in a $355m bond scam.

State media reported that Dung and his son, who was jailed for three years, have already repaid the $355m.

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Vietnam’s micro-apartments are a godsend for the poor – and a deadly risk | Housing News

Hanoi, Vietnam – In the Vietnamese capital’s Thanh Xuan district, where labyrinthine alleys bustle with residential life and the energy of nearby universities, memories of last year’s deadly apartment fire linger.

Late on the night of September 12, 2023, a blaze ripped through an apartment building on Khuong Ha Street in Khuong Dinh ward, killing 56 people, including four children.

Police determined the fire started from a short circuit in the electrical wiring of a scooter parked on the first floor, before quickly spreading to the building’s upper floors – added by the building’s owner to create tiny subdivided apartments that could house triple as many tenants.

For years, micro-apartments, known as “chung cu mini”, have sprouted throughout Vietnam’s metropolises, cramming low-income families and college students into substandard, fire-prone housing.

“These apartments are like mushrooms, they are everywhere,” Lan Vo, a former resident of a micro-apartment in Thanh Xuan, told Al Jazeera, requesting to be referred to by a pseudonym to avoid harassment.

A fire at an apartment block on Khuong Ha Street last year killed 56 people, including four children [Coby Hobbs/Al Jazeera]

In an interview with state media last year, Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, attributed the boom in micro-apartments since the 2010s to a shortage of homes for low-income people.

September’s disaster and other fires at micro-apartment blocks have forced Vietnam’s authorities to confront the dangers of lax building and fire regulations and the inadequacies of the country’s social housing infrastructure.

But even as the nation mourns those killed and government inspections sweep through the country, municipalities are finding themselves hamstrung when it comes to outlawing the structures due to the rare affordability they offer low-income urban dwellers.

Blocks of micro-apartments are usually designed in the style of a long, narrow tube. Built on small plots in the narrow alleys of heavily populated districts, the residencies are often located within close proximity of universities and house students and low-income families.

The Ho Chi Minh City Construction Department estimated that the financial capital had more than 60,000 micro-apartment buildings, made up of about 600,000 apartments, as of mid-2022.

Chau, the real estate association chairman, said in his interview with state media that the apartments house approximately 1.8 million people and about 40 percent of the workforce in Ho Chi Minh City alone.

The city’s police department has reported that some 42,200 micro-apartments are currently on the market for rent.

While there is no official data for Hanoi, at least 2000 micro-apartment buildings are connected to the city’s power grid, according to the national utility, Vietnam Electricity.

There are dozens of micro-apartments jammed into narrow alleyways in Hanoi’s Khuong Dinh ward [Coby Hobss/Al Jazeera]

On a recent visit to Khuong Dinh ward, the site of September’s fire, Al Jazeera observed dozens of the apartments jammed into narrow alleyways.

Other clusters of apartments can be found in districts situated near universities, such as Hoang Mai, Cau Giay, Bac Tu Liem, and Nam Tu Liem.

“[Tenants] are mostly young workers and many students living together,” said Vo, the former micro-apartment resident.

“Due to high rent, students often live together in groups of three to five people to share rent and utilities.”

The selling price for a micro-apartment can be as little as 600 million Vietnamese dongs ($24,615), making the accommodation the cheapest form of property available in most Vietnamese cities.

Even so, in Vietnam, where the minimum wage salary barely reaches $200 a month, tenants – especially college students – can still find themselves struggling to make rent.

While Vo was relatively content with her dwellings, she witnessed others who endured far worse conditions than she did.

“The building I lived in had around eight to 10 rooms, but the building next to mine had up to 30 rooms,” Vo said.

“Greedy landlords try to stuff as many people as they can to gain more rent, it looks like a can of sardines if you think about it,” she added.

For residents, the desire to cram as many tenants as possible into the buildings threatens not only their comfort, but their safety as well.

The narrow and congested alleys that host the buildings in many cases limit accessibility for fire engines. Some apartments lack emergency exits and other fire prevention facilities.

In the case of September’s fire at Khuong Ha Street, fire engines and first responders reportedly had difficulty reaching the apartment due to the narrowness of the ward’s alleys.

Vo said tenants in her ward were occasionally gathered for “fire safety practice”, but the drills – mostly consisting of fire-prevention tips, such as not leaving stoves on – were overshadowed by the lack of emergency escape ladders on the buildings.

Thuy Hai, a student at Hanoi University who lives in a micro-apartment, said there are no monthly fire drills in her ward in Thanh Xuan.

“Instead, they [the landlord] just left a fire extinguisher at my front door,” she told Al Jazeera. “They didn’t even teach me how to use it.”

“Tiger cages”, metal bars around windows and balconies, designed to prevent burglaries and falls, have also been highlighted as a safety hazard.

So-called ‘tiger cages’ have been highlighted as one of many safety hazards for residents of Vietnam’s micro-apartments [Coby Hobbs/Al Jazeera]

In September alone, Hanoi experienced five fires of varying magnitude, according to a report by state media.

Colonel Duong Duc Hai, the deputy director of the Hanoi Police Department, told the local outlet that electrical short circuits were the root cause of 96 percent of these fires.

Tenants’ scooters are generally stored on the bottom floor of apartment buildings, posing potential safety hazards, including blocked exits and electrical malfunctions.

A witness to the fire in Thanh Xuan in September told Al Jazeera that the building’s owner, Nghiem Quang Minh, had hired an elderly security guard to manage tenants’ scooters on the bottom floor, but he was often overwhelmed by the number of vehicles.

The witness said the security guard was paid according to the number of scooters he was able to park, incentivising him to take in as many as possible.

Property owners have also been found to have built extra floors and rooms, breaking contract agreements and regulations.

Minh, who is now being prosecuted for alleged fire code violations, built at least eight other micro-apartment buildings in several districts of Hanoi, according to law enforcement officials.

None of these apartments met the fire safety standards and all were found to have unauthorised building extensions, state media reported.

Vietnam recently amended the law to cover micro-apartments [Coby Hobbs/Al Jazeera]

Vietnamese law for years did not define micro-apartments or include them under a specific legal framework. That changed in November when the National Assembly amended the law to grant them legal status.

When the amendments come into effect on January 1, 2025, property developers will still be permitted to construct micro-apartments on residential land on which they hold land use rights.

The amendments stipulate conditions for “individual” developers building and owning the buildings.

Under the regulations, individual investors will face bigger hurdles to develop micro-apartments compared with established real estate businesses, including being required to have a minimum amount of investment capital.

Before the legal changes, lawmakers debated if stricter regulations on micro-apartments would be unenforceable or if they should even be legal.

Trinh Xuan An, a delegate of the National Assembly, told local media that the government “should not support the construction of mini apartment buildings but, instead, ought to back the development of social housing projects for low-income earners”.

Other lawmakers emphasised that all new regulations would allow renters to safely access a popular form of accommodation.

A recurring factor in the debate is affordability.

In Hanoi, a fast-growing population has turned the city into one of the most densely populated urban areas in the world.

For many budget-conscious renters, the lack of suburban housing options makes micro-apartments the natural choice.

Despite their risks, the cramped units have proven popular with students and low-income, blue-collar workers.

Ex-tenant Vo said the apartments were still a better option than social housing for people like her and that stricter regulation would be a better option than a ban.

“Tenants should also be able to send direct complaints about serious problems and not have to wait decades for the government to respond, especially when it comes down to their own safety,” she said.

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Gaza war reminds Vietnam of liberation struggle once shared with Palestine | Israel War on Gaza News

Hanoi, Vietnam – At a private venue tucked away in a narrow alley in Hanoi’s city centre, a group of more than 20 people listened attentively to Saleem Hammad, a charismatic, 30-year-old Palestinian man, as he spoke in fluent Vietnamese.

Hammad, who runs a business in Vietnam, shared an incident from his childhood in Jenin in the occupied West Bank.

Those present listened as he recounted a vivid memory of being awoken one night as Israeli soldiers surrounded and raided his family home.

Earlier, he had told those attending the discussion that Vietnam’s history of fighting for liberation against the United States had inspired Palestinians in their struggle against Israel’s occupation of their lands.

“Vietnamese people, with their painful and glorious history, have always been the source of inspiration for the Palestinians in our struggle for justice,” Hammad told his audience.

“We always look up to you as the role model.”

Horrified by Israel’s war on Gaza and the spiralling death toll, primarily young Vietnamese people have begun to raise their voices in support of Palestinians. In the process, they are discovering historical ties between Vietnam and Palestine and their shared fights for national liberation.

But the decades-old relationship between the two nations has been overshadowed by more recent promotion of Israel’s business culture to a younger generation of Vietnamese.

Focused on achieving success in Vietnam’s fast-growing free market economy, many have been inspired by Israel’s startup business culture while knowing little about the darker side of Israel’s success in terms of its long occupation of Palestinian land.

Organised late last year by pro-Palestinian activists Trinh* and Vuong*, the gathering where Hammad spoke was inspired by the student activism the pair encountered while studying in the US.

Trinh and Vuong are part of a burgeoning grassroots movement among Vietnamese youth who have been drawn to the Palestinian cause since the war on Gaza started in October.

But Vietnam’s strict policies against public assemblies and political activism means pro-Palestinian campaigners have to come up with low-key and creative ways of organising events without attracting the unwanted attention of Vietnamese authorities.

In Ho Chi Minh City, Trinh and some friends have organised discussions on Palestine and drawing classes with a Palestinian theme. A designer by training, Trinh has also worked with fellow creatives to design pro-Palestine merchandise, political art and fanzines.

Vietnamese youth create art in support of Palestine [Courtesy of Tu Ly]

In November, a screening of documentaries and films on Palestine, the Nakba and the history of Israel’s occupation of Palestine took place under the title Films for Liberation: Palestine Forever with the aim, according to the organisers, of undoing “the demonising descriptions of the Palestinians” by “Western and imperialist” actors.

On social media, a host of Vietnamese-language fan pages has sprung up featuring translated Palestinian poems, pro-Palestine artwork and analyses on the history of the conflict while the embassy of Palestine in Vietnam invited former veterans of the war against the US, academics, activists and members of the public to a commemoration for those killed in Gaza.

On November 29, which is the United Nations-designated International Day of Solidarity with the Palestinian People, Vietnam’s government also published a message from then-President Vo Van Thuong in which he spoke of the long history of fraternity between Vietnam and Palestine and “Vietnam’s strong support and solidarity with the Palestinians in their struggle for justice”.

But the relationship between Vietnam and Palestine is not as it once was.

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Why has Vietnam’s president resigned after just a year? | Politics

Vo Van Thuong is the latest high-profile figure to resign amid a corruption crackdown.

Vietnam’s president has resigned after only a year in office.

Vo Van Thuong is the latest high-profile figure to resign amid a corruption crackdown in a country important to both China and the West.

So, why has he gone?

And what are the international implications?

Presenter: Rob Matheson

Guests:

Hai Hong Nguyen – Senior lecturer at VinUniversity in Hanoi

Carlyle Thayer – Professor emeritus at the University of New South Wales – Canberra

Nguyen Khac Giang – Visiting Fellow at ISEAS-Yusof Ishak Institute, a think tank in Singapore

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Vietnam’s President Vo Van Thuong resigns amid anticorruption campaign | Politics News

Governing party says that Thuong’s ‘shortcomings’ had negatively affected the reputation of the party and the state.

Vietnam President Vo Van Thuong has resigned after a little more than a year in office due to “violations” and “shortcomings”, the governing Communist Party has said.

Thuong is the second president to resign in two years amid an anticorruption crackdown that has seen several senior politicians fired and top business leaders tried for fraud and corruption.

The Vietnamese Communist Party said in a statement on Wednesday that the resignation had been accepted and that “violations and shortcomings by Vo Van Thuong have left a bad mark on the reputation of the Communist party.”

The government statement did not elaborate on Thuong’s shortcomings, but they are likely linked with the “blazing furnace” anti-bribery campaign aimed at stamping out widespread corruption.

Foreign investors and diplomats have repeatedly blamed the campaign for slowing down decisions in a country already grappling with a large amount of bureaucracy.

The president holds a largely ceremonial role but is one of the top four political positions in the Southeast Asian nation.

​​Thuong’s resignation came after weeks of rumours suggesting that he would be removed from office, and on the eve of a special session of Vietnam’s parliament dedicated to “personnel matters”.

Days earlier, Vietnamese police announced the arrest of a former head of central Vietnam’s Quang Ngai province for alleged corruption a decade ago, who served while Thuong was party chief there.

He had also been a senior party official of Ho Chi Minh City, which has been rocked by a multibillion-dollar financial scam, and for which a large trial is currently under way.

Last year, when former president Nguyen Xuan Phuc quit after the party blamed him for “violations and wrongdoing” by officials under his control, Thuong was appointed as his successor one and half months later.

​​When he took office, Thuong said he was “determined to fight corruption”, and was believed to be close to party General Secretary Nguyen Phu Trong – who is seen as the most powerful figure in the country.

 

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Climate change is killing quality coffee. Can Vietnam’s Robusta save it? | Food

Buon Ma Thuot, Vietnam – The white-walled room in a house on the outskirts of Buon Ma Thuot, Vietnam’s coffee capital, is quiet. The only thing breaking the silence is the occasional beep of an electronic scale, or the sound of coffee being poured into a measuring glass. A handful of people, all wearing white lab coats, concentrate on their work.

“This is really a lab,” says Nguyen Van Hoa, as he walks around the room in the white lab coat he wears over his jeans and trainers. A young man, Hoa calls himself a “green bean hunter” and is the owner of Stone Village Lab and Education, a company that researches and sources high-quality coffee beans for cafes and coffee businesses.

Now and then, he stops at a desk to demonstrate how many beans to add to each cup and the ideal water temperature. Baristas and cafe owners come here from all over the country to learn about coffee, from the capital Hanoi in the north to Ho Chi Minh City in the south.

He holds out a cup with a small serving of dark brown coffee brewed from a blend he has been working on for seven years. “It will change the mind of anyone who thinks that you cannot make good coffee from Robusta,” he says.

This – changing the minds of the many Robusta sceptics – is what has occupied Nguyen Van Hoa for the past few years. In the coffee industry, Robusta is known as the inferior sibling of Arabica, lacking the latter’s complexity and sweeter, smoother notes. Robusta is almost always mass-produced and cheap.

“The Robusta market is only looking for the best price. But we can change that,” Nguyen Van Hoa says.

They must. The Arabica coffee bean which is near-universally synonymous with quality coffee, is under serious threat from climate change. Reforming the image and quality of the much-maligned – but, as its name suggests, resilient – Robusta coffee bean is crucial for the future of coffee.

Nguyen Van Hoa – who calls himself a ‘green bean hunter’ – is the owner of Stone Village Lab and Education, which specialises in developing high-quality Robusta coffee, in Vietnam [Jenny Gustafsson/Al Jazeera]

And Vietnam is where that change may well happen. It is the world’s largest producer of Robusta – and second to Brazil in overall coffee production, and the bean comprises 95-97 percent of all the coffee grown in the country.

This has been the case since French colonists brought coffee plants to the region in the 1850s.

“The idea was to ‘just bring the beans and the more you bring the more [money] you make’,” explains Timen Swijtink, managing partner at the coffee company Lacaph in Ho Chi Minh City.

In the decades that followed, coffee plantations grew in popularity. After Vietnam’s first commercial coffee processing plant was built in 1950, the industry continued to expand.

Then, in 1986, Vietnam introduced Doi Moi (“reinvention”), which shifted the country’s post-war economic focus to be more market oriented. Since then, the country’s annual coffee bean production has exploded, up from 18,400 tonnes to more than 1.9 million tonnes.

Today, 90 percent of Vietnam’s coffee is grown around Buon Ma Thuot, on the Central Highlands plateau, between 500 metres (1,640 feet) and 800 metres (2,625 feet) above sea level. Here, in every direction, vast fields of bright green coffee plants stretch into the horizon. In the autumn, the small cherries, which are about the size of grapes and grow in bunches, weigh down the branches and change from green to red – a sign that they are ready for harvest.

Workers at Nguyen Van Hoa’s coffee lab in Buon Ma Thuot, Vietnam’s ‘coffee capital’ [Jenny Gustafsson/Al Jazeera]

‘The plants are happy together’

Just south of Buon Ma Thuot, not far from Nguyen Van Hoa’s coffee lab, is the Aeroco coffee plantation – eight hectares in size (20 acres) – which Anh Nguyen Tu and her husband, Le Dinh Tu, have run since 2017.

Quality is not top of the list for the big, multinational companies that turn the majority of Vietnam’s coffee beans into instant coffee for the soft drink and pharmaceutical companies that use caffeine in their products. Both buy beans cheaply and in bulk.

But at Aeroco, the focus is very much on growing “fine” Robusta. Le Dinh Tu is an agricultural engineer. Before shifting to specialty coffee, the couple provided organic fertilisers to farmers for 18 years.

“It took three years until we could survive from coffee, there are many costs involved when you want to work in a sustainable way,” says Anh Nguyen Tu.

Wearing a straw hat as protection from the afternoon sun, she walks out among the plants. She explains the growing process. “We grow in three layers. First grass, then coffee, then trees like jackfruit and pepper. This is to balance the ecosystem. The plants are happy together,” she says.

Planting this way benefits both the bushes and the land. It gives the coffee plant much-needed shade, and helps the soil retain its nutrients.

A worker harvests coffee cherries at a farm in Buon Ma Thuot, Vietnam, on Tuesday, November 28, 2023 [Maika Elan/Bloomberg via Getty Images]

Anh Nguyen Tu picks and carefully scratches a pale red cherry with her nail to determine if it is fully ripe. If the beans are harvested too early, the coffee will not have the round and sweet aftertaste typical for quality coffee. “These cherries need a bit more time,” she says, then walks towards an open space where a group of employees are gathering beans which had been laid out on canvases in the sun.

It’s a time-consuming process. To properly dry and ferment the beans, they must be turned every 30 minutes, and then brought indoors in the afternoon. “I had no idea how patient you must be when growing coffee,” says Pham Thi Duyen, one of the workers. She wears a green shirt, just like the others in the team, most of whom are women.

“I realise it now, when doing it with my own hands,” she says.

Most coffee grown at Aeroco is Robusta. The couple also runs a smaller Arabica plantation in Kon Tum, a couple of hours away, at a slightly higher altitude. Arabica plants need more elevation than Robusta bushes to grow well: at least about 800 metres (2,625 feet) above sea level, but preferably higher, up to 1,500 metres (5,000 feet). At such altitudes, the air is cooler, and the beans grow more slowly, which allows time to develop more flavour.

Typically, Robusta beans are mass-produced. Harvesting happens just once, which means many unripe and damaged cherries end up in the mix, and the beans are then left to dry on the ground. At Aeroco, beans are hand-picked multiple times to ensure that only the ripe cherries are picked each time.

The process may lower productivity, “but the quality is incomparable”, Anh Nguyen Tu says.

Anh Nguyen Tu from Aeroco farm examines coffee beans during the production process [Jenny Gustafsson/Al Jazeera]

‘Roast it dark, serve it strong’

At Cheo Leo, an iconic family-run cafe on a small backstreet in Ho Chi Minh City, a waiter brings out glass after glass with a few centimetres of dark, glimmering coffee.

“We roast it dark and serve it strong,” he says.

Vietnam has a unique way of brewing coffee called “phin”. First, a perforated metal filter plate is placed on top of a glass or mug. A few tablespoons of finely ground beans are added to the reusable metal brew chamber, which sits on the filter plate. A gravity chamber is pressed down on top of the coffee, before hot water is poured over top. This process allows the coffee to slowly drip downward into the glass, enhancing its flavour.

The dark, aromatic drink can be served either hot (“ca phe nong”) or with ice (“ca phe da”), and often with sweetened, condensed milk.

Phin coffee is without exception made from Robusta. And because the beans are generally low quality, they’re often roasted with other ingredients – such as butter, soy sauce, sugar or vanilla – to add flavour.

“This started 50-60 years ago, when the country was poor, and no one could afford quality beans. Now, people have gotten used to the taste and still prefer it,” explains Julien Nguyen, the young owner of the cafe Tonkin Cottage in Ho Chi Minh City.

Until recently, this was the story of Vietnam’s Robusta. But things are changing.

With some growers now treating the cultivation of Robusta as they would Arabica, the bar is being raised. Countries such as Uganda, India and Indonesia now produce specialty Robusta, with several varieties scoring more than 80 points out of 100 on the Specialty Coffee Association’s chart, the industry’s benchmark. Scoring 80 points or higher on this index classifies a coffee as “specialty” and gives it a rating of “very good”. Higher than 85 is “excellent” while scoring 90 or more is “outstanding”.

Traditional phin coffee being brewed in the street [Jenny Gustafsson/Al Jazeera]

Climate change has been a big factor. Robusta tolerates higher temperatures – typically 22 – 30 degrees Celcius (72 – 86 degrees Fahrenheit) –  than Arabica – typically 15C – 20C (59 – 68F) – and is more resistant to disease, insects and funguses. Studies have shown that by 2050 as much as 50 percent of the land used to grow Arabica today might be unsuitable for production.

The global coffee industry will have to transform itself – that means growing Robusta in new locations and producing a higher-quality product.

“The industry understands this. But it is also in shock,” says Juan Pablo Solis, senior adviser on climate change and environment at Fairtrade International, which helps farmers and workers achieve better working conditions and fair value for their products. “Everyone is trying to prepare themselves for these challenges.”

Coffee’s global landscape may change. “Coffee is a fragile plant that requires a certain micro-climate to thrive. In the future, it will disappear from some countries,” explains Solis.

“People will still demand coffee and some countries will continue producing lower quality coffee in massive volumes,” Solis says. However, he adds, there will also be smaller plantations focused on producing high-quality coffee.

Research by Global Change Biology, the environmental change journal, shows that production of Arabica is expected to decline by 50 percent by 2088 because of rising global temperatures.

The world is already seeing signs of this. Severe drought in Brazil in 2021, for example, cut the annual crop that year by one-third.

Robusta will be more resilient to the effects of climate change – although experts caution that more research is needed to understand its limitations.

Coffee shops in Hanoi, Vietnam, where Robusta coffee is produced [Linh Pham/Bloomberg via Getty Images]

Changing the coffee ‘experience’

Some cafe owners in Vietnam say there is already a growing demand for higher-end coffee from younger drinkers. “Specialty coffee is a youth culture here,” says Luong Hanh, the manager of Soul Coffee in Buon Ma Thuot. Wearing an oversized white shirt, she sits at the long bar at the centre of the airy cafe, which has drinks like lychee- or guava-flavoured cold brew on the menu.

Besides drinks brewed with Arabica, it also serves coffee made with local Robusta beans.

“We want to see more fine Robusta in Vietnam. In the past, it was bitter and not very good. Now, we can find beans that were picked when ripe and kept in the right temperature and humidity,” she says.

“People who like specialty coffee usually say that Robusta is bitter and has a too-heavy body. But they are changing their minds after coffee shops started serving good Robusta,” she says.

It’s also about the coffee experience. At SHIN Heritage in Ho Chi Minh City, iced coffee is served in oversized wine glasses to a business crowd. At 43 Factory Coffee Roaster, in the same city, a massive art installation at the entrance simulates a bird’s view of coffee plantations. And Lacaph, another cafe in Ho Chi Minh City, holds workshops for java enthusiasts on the history of Vietnamese coffee.

In the past five years, coffee consumption in Asia has increased by 1.5 percent – three times more than in Europe.

This has benefitted local players in Vietnam. Instead of Starbucks or Costa Coffee, local giants Phuc Long or Highlands Coffee occupy prime locations. Starbucks has only one outlet per one million people in Vietnam, in contrast to neighbouring Thailand or Malaysia, where the chain has between six and 11 outlets per one million people.

Vietnamese coffee is growing abroad, too. Cong Caphe, a popular chain styled with Vietcong memorabilia, has outlets in Seoul, Kuala Lumpur and, as of last year, Toronto.

Back in Buon Ma Thuot, Nguyen Van Hoa takes out a book from one of her shelves – the World Atlas of Coffee, which has a chapter on Vietnam. “This book changed my mind. It says that Vietnamese coffee is bad, which made me want to change the image of our coffee,” he says. “I want to show that it is possible to make great phin. It is our tradition,” he says.

But no rush. Change is a slow process, he says. Just like brewing phin coffee.

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As Vietnam bids to be chip leader, energy and labour woes stand in the way | Technology

Ho Chi Minh, Vietnam – On a sunny California afternoon in late September, Vietnam’s Prime Minister Pham Minh Chinh took a tour of Silicon Valley, cosying up to officials at semiconductor firms Synopsys and Nvidia.

A little over a month earlier in Hanoi, Pham tasked four government ministries with increasing the number of Vietnamese engineers capable of working in semiconductor production by the tens of thousands.

Government efforts to make Vietnam an attractive option for chip investment have continued in the new year.

Minister of Science and Technology Huynh Thanh Dat last month told local media that authorities had put tax incentives in place for high-value-added products such as semiconductors.

Dat said the country wanted to welcome a “wave” of investment by collaborating with other ministries and tech corporations to boost research and draw talent to the semiconductor sector.

Vietnam has set its sights on becoming a leading player in the global supply chain for semiconductors – the wafer-thin integrated circuits essential to modern technology.

As Hanoi and a bevvy of nations align on the need to de-risk from China amid intensifying geopolitical tensions, the Southeast Asian nation appears to have momentum on its side in its bid to rival the dominance of Taiwan and South Korea.

Yet Vietnam faces obstacles, too, including a limited pool of skilled labour and energy insecurity in the country’s tech manufacturing hub in the north.

The global push to diversify semiconductor supply chains is in step with Hanoi’s development aims, said Le Hong Hiep, a senior fellow at the Singapore-based ISEAS-Yusof Ishak Institute who formerly worked as an official at Vietnam’s Ministry of Foreign Affairs.

“The semiconductor industry is seen as a very important industry that can help Vietnam transform its economy and turn Vietnam into a developed and high-income economy by 2045,” Hiep told Al Jazeera.

“In terms of timing and the strategic setting, it’s favourable for Vietnam to develop the industry now.”

On the surface, Vietnam’s chip ambitions seem to be flourishing amid an influx of foreign capital.

Nvidia co-founder and CEO Jensen Huang has described Vietnam as the company’s ‘second home’ [Tyrone Siu/Reuters]

During a visit to Hanoi in early December, Nvidia co-founder and CEO Jensen Huang called Vietnam the chip giant’s “second home”, pledged to expand partnerships with local firms and set up a base in the country, according to local media reports.

Nvidia, whose market capitalisation last week surpassed $2 trillion, says it has invested $12m in the country so far.

A Nvidia spokesperson declined to comment on Nvidia’s future operations in Vietnam when contacted by Al Jazeera.

Vietnam has about 5,000 engineers trained in semiconductors but will need as many as 20,000 in the next five years, according to the US-ASEAN Business Council.

“When companies look at Vietnam, it looks really good on paper but when they actually have to go through and look to see if there is sufficient electricity, what’s the infrastructure and most importantly, what are the human resources like… I don’t think Vietnam is going to be the producer that it thinks it is,” Zachary Abuza, a professor at the National War College in Washington, DC who focuses on Southeast Asia, told Al Jazeera.

Vietnamese authorities are aware of workforce shortcomings and are leading a push to train more engineers, said Nguyen Thanh Yen, a principal engineer at the Hanoi branch of the Korean chip design company CoAsia SEMI.

“The government is now aggressively planning dedicated programmes to boost up the number of semiconductor engineers,” Yen told Al Jazeera.

Semiconductors were a centrepiece of the historic upgrade in relations between Vietnam and the United States announced in September, when the two countries agreed to a comprehensive strategic partnership – the highest tier in Hanoi’s diplomatic hierarchy.

“We’re deepening our cooperation on critical and emerging technologies, particularly around building a more resilient semiconductor supply chain,” US President Joe Biden said during a September 9 joint press conference with Nguyen Phu Trong, the general secretary of the Communist Party of Vietnam.

US chip companies appear to be aligning with Washington’s agenda.

Arizona-based Amkor started operations at a $1.6bn chip factory in northern Vietnam this October, while Delaware-headquartered Marvell announced in May that it would establish a semiconductor design centre in the country.

Samsung is investing $3.3bn to manufacture semiconductor components in Vietnam [Kham/Reuters]

South Korean firms are also joining the rush. Samsung, Vietnam’s largest investor, announced in August 2022 that it would invest $3.3bn to manufacture semiconductor components in the country.

Hana Micron Vina, which specialises in chip packaging and memory products, is building a second factory in Vietnam and plans to invest $1bn in the country by 2025, according to a Nikkei Asia report.

Chip firms are “all competing for this very small, tight labour market,” Abuza said. “[Vietnam] is going to have to increase their rate of engineers by like five times annually to do this.”

Others such as Yen are optimistic about Vietnam’s ability to rise to the challenge.

He said the country excels in math and science and 20 technical universities are starting semiconductor training programmes with the goal of having 50,000 engineers added to the workforce by 2030.

“Vietnam has the advantage of young and hungry human resources,” Yen said. “The fields that help them make money most easily are typically in the technical sectors. Semiconductors are getting hot now.”

Help is also coming from outside.

During his visit to Vietnam, Biden announced $2m in seed funding for training in Vietnam’s semiconductor industry.

Europe could be next to get involved, said Bruno Sivanandan, the co-chairman of the Digital Sector Committee at the European Chamber of Commerce Vietnam.

“There may be partnerships with academies in Europe to support the education of Vietnamese workers,” Sivanandan told Al Jazeera. “Vietnam has such a huge potential that is not yet realised, so the big players are looking to Vietnam.”

Still, Vietnam may not have the luxury of time with regional challengers vying for investment.

Hiep at ISEAS said Malaysia and Singapore were formidable competitors and Indonesia and Thailand were also pursuing the sector.

“Everybody is looking for opportunities to establish their presence in the global chip supply chain,” Hiep said. “It is a very, very competitive Industry.”

Vietnam relies heavily on hydro-dams for its electricity needs [Getty Images]

Energy insecurity is also a challenge.

During Vietnam’s hottest summer to date last year, northern locales experienced intermittent blackouts. In early June, the weather was so sweltering during a Hanoi power outage that some families sought refuge in a mountainous cave near the city centre.

For several weeks, factories in industrial parks in northern Vietnam went dark for hours at a time during the afternoons.

“They had to stop operations because there was no energy in the middle of the day for about four or five hours,” a Ho Chi Minh City-based individual working in the energy sector told Al Jazeera, asking for his name to be withheld as he had not been cleared by his company to discuss the topic.

“Samsung and other Korean factories – they were in a huge crisis because they had to stop their factories completely because of the lack of electricity.”

After the outages, authorities launched an investigation into EVN, the country’s state-run electricity provider. Officials ultimately disciplined 161 EVN personnel over the power shortages.

Northern Vietnam is heavily dependent on hydropower dams, which can dry up during the hottest months of the year when demand is at its highest. Infrastructure is outdated and the country “lacks the grid capacity and the power resources to deal with the problem”, the energy sector employee said.

“We should have invested in the power transmission and power resources in the North of Vietnam many years ago but EVN, they fell behind,” he said.

“In the north of Vietnam, [factories] will face a huge problem in relation to energy security.”

Energy is also a concern for European investment.

Under the terms of the European Union’s trade deal with Vietnam, European companies doing business with the country must abide by increasingly stringent regulations on carbon emissions, which could pose problems as long as Vietnam relies heavily on coal.

“To do business with Europe, you need to fulfil those requirements on carbon emissions,” Sivanandan said. “If we apply this to the semiconductor industry, this is going to be a barrier.”

Abuza said there is a considerable gap between Vietnam’s potential and the reality on the ground.

“These chip factories and server farms and all the high-tech stuff Vietnam wants to do really relies on very steady electricity and they just don’t have it,” he said. “Vietnam has amazing potential for investors but there is so much they have trouble resolving.”

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IT Ministry Wants to Match China, beat Vietnam in Smartphone Exports Race, Documents Show

India risks losing out to China and Vietnam as it seeks to become a major smartphone export hub and must “act fast” to lure global companies with lower tariffs, the deputy IT minister said in government documents seen by Reuters.

Smartphone manufacturing is a key plank of Prime Minister Narendra Modi’s ambitions to boost the economy and create jobs by attracting companies such as Apple, Foxconn and Samsung to India, the world’s second-largest mobile market where production grew 16% year-on-year to $44 billion last year.

That success, PM Modi’s government says, is mostly due to financial incentives given to companies to produce more. But lawmakers and lobby groups for Apple and other firms argue India’s high tariffs are a deterrent for companies de-risking their supply chains beyond China, and nations such as Vietnam, Thailand and Mexico have raced ahead in phone exports by offering lower tariffs on components.

A Jan. 3 letter and a confidential presentation drafted by Indian deputy IT Minister Rajeev Chandrasekhar, and sent to the Finance Minister, show the extent of his ministry’s concerns about losing out due to the uncompetitive tariffs.

“India has high production cost due to highest tariffs amongst key manufacturing destinations,” wrote Chandrasekhar in the documents, which were seen by Reuters.

“The geopolitical realignment is forcing supply chains to shift out of China … We must act now, or they will shift to Vietnam, Mexico and Thailand.”

Chandrasekhar and India’s IT ministry did not respond to Reuters requests for comment.

Lower tariffs on components is key to India’s ambitions to attract smartphone manufacturers.

“Made in India” phones use many parts made locally, but companies import many high-end parts from China and elsewhere due to supply chain limitations. These parts are then subject to the high tariffs the government has put in place to protect the local manufacturers, raising overall costs.

U.S. Ambassador Eric Garcetti recently said foreign investments were not flowing into India at the pace they should be, and were going to countries like Vietnam instead, because of the tariffs. “If you tax inputs … you’re not protecting a market. What you are doing is limiting a market,” he said.

Chandrasekhar in his documents flagged how lower taxes in China and Vietnam helped boost their exports. Exports accounted for only 25% of India’s smartphone production last year, compared with 63% of China’s $270 billion worth of production and 95% of Vietnam’s $40 billion worth, he said.

“Match China, beat Vietnam”

India is seeking to account for 25% of global electronics manufacturing by 2029, but the official documents showed its stake was currently at just 4%, even though Apple, Foxconn and Xiaomi had all boosted production recently.

Chandrasekhar’s documents were addressed to India’s Finance Minister Nirmala Sitharaman last month to lobby for lower tariffs in the annual budget. The finance ministry did lower taxes on some components, including battery covers, to 10% from 15%, but did not agree to many other tariff cut requests.

The finance ministry and Sitharaman’s office did not respond to requests for comment.

India still imposes a 20% tax on parts including chargers, some circuit boards and fully assembled phones. The IT minister wanted those taxes to be reduced to 15% this year.

Chandrasekhar also argued that Vietnam and China do not levy tariffs above 10% on components from their “most-favoured nation” trading partners or nations with whom they have free-trade agreements. India does not do that and imposes “high” tariffs on many components, he said.

“We have to match China and beat Vietnam on tariffs to attract” global supply chains, Chandrasekhar wrote. “No country with high tariffs has or can attract” them.

Local market saturating, exports focus

Last week, Xiaomi privately asked New Delhi to lower tariffs on more components used in cameras and USB cables, saying it will help “aligning with the competitive manufacturing economies like China and Vietnam.”

While surging local demand has helped keep the local manufacturing industry profitable, Chandrasekhar said in his letter that this “domestic market of smartphones will shortly near saturation” and as users don’t change phones that often.

India’s goal to take mobile phone production to over $100 billion a year – with 50% of that exported – needs a new strategy, the minister said.

“Tariffs are becoming a hurdle,” the minister said in his presentation. “We need to shift tariff policy to suit our new ambitions. Exports, not domestic.”

© Thomson Reuters 2024


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