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VinFast's Q1 losses grow on higher spending and increased deliveries
VinFast, a Vietnamese electric vehicle manufacturer, reported a net loss for the sixth consecutive quarter on Monday as it continues to increase spending in order to boost sales. VinFast has reported a loss of $712.4 millions for the first three months. This is less than the $1.3billion loss from the previous quarter, but 15% higher than one year ago. According to LSEG, the average analyst forecast was a loss of $616.3 millions. The revenue jumped by 150%, to $656.50 million between January and March. This compares with the analysts' estimated average of $520.50 million. The quarter saw a nearly 300% increase in deliveries, reaching 36,330 cars, mostly due to sales in Vietnam, the biggest market. VinFast, backed by Vietnam's biggest conglomerate Vingroup, continues to face challenges because of weak consumer demand, stiff competitors, and the 25% tariff that the U.S. imposed on imported cars. VinFast had previously identified the U.S. market as a major growth market. VinFast's gross margin was minus 35.2% for the first quarter of this year, compared to minus 58.7% one year ago. VinFast Chairman Thuy Le said: "Despite Q1 being typically our slowest quarterly, deliveries in the first quarter 2025 were higher than our total deliveries during the first half of the previous year. This is an encouraging start for 2025 despite the global uncertainty." The company is intensifying its promotional efforts in the United States, switching to a dealership-based model instead of its expensive showrooms. It has also shifted its focus towards Asia with a new assembly plant set to open in India in July. The company said that the costs of sales had more than doubled in the first three months compared to the previous year. VinFast has been losing money every quarter since its IPO in August 2023. Its founder and CEO Pham Nhat Vuong, and Vingroup have provided financial support of around $2 billion as of May. Third Bridge, a research firm, noted in a report on pre-earnings that "while its VF3 compact SUV is driving volume sales, the company still loses money on each car it sells." It said that "the bill of materials" was estimated to be higher than Tesla's and BYD's, in part because VinFast lacked scale and paid a premium to its suppliers who were wary about the company. VinFast's shares rose by 14.04% before the market opened. In the third quarter, the company announced that it would launch its next-generation platform as well as an electrical architecture for the Limo Green model. The existing EVs will be supported by this platform next year. Reporting by Phuong nguyen from Hanoi, and Akash Sriram from Bengaluru. Shinjini Ganuli and Mark Potter edited the article.
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PwC: Argentina to experience a boom in M&A under Milei with energy as the focus
Argentina's mergers and acquisitions market could grow significantly in the coming years if President Javier Milei's economic reforms continue, Juan Tripier, director of M&A and corporate finance at PricewaterhouseCoopers (PwC) Argentina, told . Investors are showing renewed interest in Argentina after Milei's actions, which include a sharp reduction in inflation and government spending, a restored surplus fiscal, and loosened foreign exchange controls. "Two or three years ago, you would have contacted a multinational company, an investor from abroad, and Argentina was considered a bad name. This has changed since Milei was elected president," Tripier stated in an interview in Buenos Aires. He added, "There is a lot excitement." "This excitement is shared by both international players or international investors and local players." Tripier stated that Argentina can surpass previous M&A peak years in three to five year, where there were 120-150 deals per annum, with diverse activity across sectors like agribusiness and food. In the past, multinationals in Argentina have mainly invested in energy, mining and technology. However, foreign investors will now be expected to invest more into other industries. PwC data shows that in 2024 Argentina will have recorded 99 M&A transactions, the most since 2019. Transaction values are expected to reach $8 billion, which is the highest amount since 2017. Investors remain cautious despite the recent surge in interest due to the lingering restrictions on dividend repatriation and high country risks. "Now that you are talking to investors overseas, they look at opportunities. They would have said: Argentina is not in the picture. They are now analyzing the investment and saying: "I want to wait until the economy consolidates before I make a decision," Tripier said. Vaca Muerta is the second largest unconventional gas reserve in the world and the fourth largest oil reserve. It's located in Neuquen province, one of Argentina's most popular attractions. "With the increase in investments not only in upstream development but also in infrastructure--pipelines, processing plants, and liquefied natural gas projects--we expect realignments aimed at diversifying producers' exposure, with some buying and others selling," said energy lawyer Jose Martinez de Hoz of Martinez de Hoz & Rueda. Daniel Dreizzen (former Secretary of Energy Planning, director at Aleph Energy) projects that hydrocarbon exploration investment will reach $11.553 billion by 2024. There's been lots of M&A activity. Dreizzen explained that Aleph is talking with investors who are interested in Argentina. They're cautious, given our past track record, but they're also looking for opportunities. (Reporting and editing by Eliana Razewski)
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Canadian Indigenous wildfire evacuees seek refuge at Niagara Falls
Joseph Garry, aged 63, was forced to flee the Mathias Colomb Cree Nation, or Pukatawagan in Manitoba's remote northern region, as wildfires spread. He took a helicopter from his Mathias Colomb Cree Nation reserve. He and other evacuees took three different government flights, before boarding a shuttle bus to reach Niagara Falls, Canada’s most popular tourist attraction, some 2,000 km from his home. Since the beginning of May, scores of wildfires have spread across Canada, forcing more than 35,000 people to flee in three provinces. Smoke has also been spreading into the United States and disrupting crude and mining production. The indigenous communities were particularly hard hit. First Nations make up less than 5% of Canada’s population but they are the ones most affected by wildfires this year. Manitoba is battling its largest ever fire evacuation effort. The province is running out of room for the early evacuees, who took refuge in Winnipeg's community and sports centers. Officials are now forced to look to other places, such as Ontario's Niagara Falls which has plenty of hotels. According to Jo Zambito of the Niagara Falls Fire Department, around 2,000 evacuees are currently staying in four Niagara Falls hotels. Niagara Falls Mayor Jim Diodati said that while the city was proud to assist fellow Canadians in a time of crisis, the federal and province governments should consider other accommodations as the peak tourist season nears. In Manitoba, indigenous leaders have criticised both the federal and provincial governments over inadequate communication and delays delivering resources requested during the wildfire crises. Meanwhile, residents of Pukatawagan recounted an incredibly chaotic and terrifying evacuation. Residents shared videos that showed a flurry of helicopters, both military and civilian, buzzing over the remote community with a population of about 3,000. They landed on the school's field, as flames and thick smoke began to engulf the area. A pilot informed Garry, and the 100 other passengers waiting to board the plane that the fire was just half a mile away and being pushed by the wind. "To be honest, it's... It's scary. It's scary. Garry, who is being housed by the federal government in a hotel, was in tears as he spoke. Garry, who is a manager of the local airfield left behind all of his belongings except for a few pairs of clothes and was briefly separated with two of his daughters. The 50 members of his extended family were reunited at Niagara Falls. Vanessa Hart, a 43-year-old mother who stayed at home in Pukatawagan and was evacuated to Niagara Falls said that, despite the repeated pleas of their chief and council members, help didn't arrive for another three to four days. She believes that a quicker evacuation would have avoided significant distress. Hart stated, "They didn't help immediately." Indigenous Services Canada (which managed the evacuation) said that emergency response was a shared responsibility, and in general, first response falls to local authorities. The agency released a statement saying that "the Government of Canada works alongside First Nation partners as well as Provincial and Territorial counterparts and continues to closely observe the rapidly evolving fire situation across the nation." Manitoba's government stated in an email that smokey conditions near Pukatawagan prevented water bombers to provide vital air support early in the emergency response. The report added that "Air support was used in the north wherever and whenever possible." The date that evacuees from Niagara Falls will be able to return to their homes is not certain and may depend on the time it takes to restore rail and plane access - this could take up to two months. Cindy Woodhouse Nepinak, National chief of the Assembly of First Nations, said that wildfire response in First Nations Communities has been "pretty chaos". She called for increased investment in basic infrastructure, such as fire trucks and hydrants. "We need better coordination." "We've been asking it for decades," said she.
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Copper prices boosted by optimism in US-China trade talks
Copper prices rose Monday, as optimism over U.S. China trade talks and falling inventory offset weak export data by China, the top copper consumer. At 1025 GMT, the benchmark copper price on London Metal Exchange (LME), was up by 0.3% to $9,719 per metric tonne. Last week it reached $9,809.5 per ton, its highest level since March 31. This was due to concerns about mine supply and low stocks in LME-approved warehouses. LME data show that copper stocks dropped by 10,000 tons to 122.400 tons on Friday A drop of over 50% from February. Cancelled warrants and metal earmarked to be delivered show that another 67.800 tons are due to leave the LME. The traders say that a large amount of this metal will be heading to the United States where the prices are much higher because of the threat of tariffs by the United States on copper imports. Three top U.S. aides to President Donald Trump will meet their Chinese counterparts on Monday in London to resolve the trade dispute that has been causing global markets to be on edge. Edward Meir, Marex analyst, said: "As the pressure grows on the Trump Administration to end their "tariff tantrum", and give the business community a sense of certainty, it should also be positive for commodities." China's exports slowed in May to a three month low as U.S. Tariffs hit shipments. Meanwhile, its copper imports (unwrought copper and copper-based products) fell by 16.9% on an annual basis and 2.5% on a monthly basis to 427,000 tonnes in May. The traders also said that Chinese demand had been affected by tariffs, which have impacted its manufacturing sector. Yangshan Copper Premium Last Friday, the price of, which measures China's desire to import copper, dropped to $41 per ton, its lowest level in three months. Early May saw a peak of $103, the highest level since mid-December, 2023. The overall price of industrial metals was supported by the lower dollar, which made commodities priced in dollars cheaper for those who use other currencies. Aluminium rose 0.8% to $2,471 per metric ton. Zinc fell 0.5% to $2,655, while lead grew 0.4% to reach $1,987. Tin climbed 0.3%, to $32,440, and nickel fell 0.1%, to $15,470.
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UN urges ratification to treaty protecting fragile oceans
U.N. Secretary General Antonio Guterres urged world leaders on Monday to ratify an agreement that would allow nations the ability to create protected marine areas within international waters. He warned that human activity is destroying ocean eco-systems. Guterres spoke at the opening ceremony of the third U.N. Ocean Conference in Nice warned that illegal fishing and plastic pollution, as well as rising sea temperatures, threatened fragile ecosystems and people who depended on them. The ocean is a shared resource. Guterres stated that we were failing to protect the ocean, citing collapsed fish stocks, rising levels of sea water and acidification. The oceans are also a crucial buffer against climate changes, as they absorb around 30% of the planet-warming CO2 emissions. As the oceans warm, the hotter water is destroying marine eco-systems and threatening oceans' capacity to absorb CO2. "These are symptoms that a system is in crisis. They feed off of each other. Unravelling food chains. Destruction of livelihoods "Deepening insecurity". The High Seas Treaty adopted in 2023 would allow countries to create marine parks in the international waters that cover two-thirds or more of the ocean. These waters are unregulated and cover almost two-thirds. Only a small percentage of the international waters known as "high seas" have been protected. As President Donald Trump withdraws US money from climate projects, and some European governments soften their green policies to help anaemic economies or to fend of nationalists, nations are under pressure to make good on years of promises. Rebecca Hubbard of The High Seas Alliance said that the United States had not ratified this treaty yet and would not during the conference. The co-host of the conference, French President Emmanuel Macron told delegates 50 countries have now ratified this treaty, and another 15 have promised to do so. Only 60 countries can ratify the treaty before it becomes law. Macron's Foreign Minister said that he expects this to happen before the end the year. The United States did not send a delegation of high level to the conference. Macron said to reporters on Sunday evening that "it's no surprise. We know the American administration’s position on these matters." Prince William of Britain said on Sunday that protecting the oceans around the world was a "challenge unlike any we've ever faced". The United Nations has stated that investments in ocean health from 2015 to 2019 totaled just $10 billion - far less than the $175 billion needed per year. Reporting by Manuel Ausloos in Nice and Clotaire Acchi in Paris, Richard Lough in London; Editing by Hugh Lawson
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B. Grimm Power in Thailand and Digital Edge, Singapore to invest $1 Billion in Thai data center
The companies announced in a Monday statement that they will invest $1 billion into a 100 megawatt data center in Thailand. Southeast Asia and its neighbours are becoming a popular destination for tech companies looking to invest in data centres and digital infrastructure. They want new clean energy sources to meet the soaring demand of artificial intelligence. The announcement on Monday was the latest of a series by tech giants to invest in Thailand. Bytedance Tiktok will invest $8.8 billion in five years, and Alphabet Inc.'s Google is also planning an $1 billion facility. The Thai Investment Board approved in May $3 billion in investments for data centres and energy projects. Microsoft announced last year its plans to open a regional data center in Thailand. B. Grimm Power & Digital Edge stated in a statement that the construction of the project would be "accelerated" in order to meet the demands of global tech companies planning to expand their AI infrastructures in Southeast Asia. The goal is to have it operational by the fourth quarter 2026. Harald Link, Group President of B.Grimm Power said, "By combining the latest data centre technology with renewable energy, we are enabling Thailand's transformation into an AI and cloud innovation center in Asia." (Reporting and editing by David Stanway; Chayut setboonsarng, Panarat thepgumpanat)
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Chinese and Hong Kong stock prices rise ahead of Sino-US Trade Talks
Chinese and Hong Kong shares edged up on Monday, with rare earths and technology sectors leading the way, as investors awaited U.S. China trade negotiations at a high level in London. Investors are cautiously optimistic as world's largest economies try to resolve their trade dispute. China is struggling with slow exports, deflation and eroding consumer confidence. The first meeting of the economic and trade consultative mechanism between the United States and China will be held by U.S. Treasury Sec. Scott Bessent and Commerce Sec. Howard Lutnick, along with Trade Rep Jamieson Greer. The Shanghai Composite Index and China's blue chip CSI300 Index both closed 0.4% higher. Hong Kong's Hang Seng index rose 1.6%, reaching its highest level since March 21, 2013. Last traded at 7,1852 dollars per yuan, the offshore yuan was struggling to find its direction. The meeting on Monday follows a rare call between U.S. president Donald Trump and Chinese leader Xi Jinping, which took place Thursday. Tensions had risen again after both sides accused the other of breaking a deal reached last month. After talks in Geneva, the two sides agreed to a 90 day pause and a drastic reduction in tariffs. From May 14 until August 12, U.S. duties on Chinese imports were set at 30% and Chinese duties at 10%. This brought temporary relief to a trade conflict that could have caused $600 billion of two-way trade in both directions to come to a halt, disrupting supply chain and impacting global economy. Analysts at China Securities wrote in a report that they thought the meeting could have some positive outcomes, as Trump had hinted at some positive signals. They added that any progress made would provide some relief to the markets. Leading onshore markets higher on Monday, the strategically-important rare earths sector - expected to be a key focus of the talks - advanced 2.4% onshore in its best single-day performance in over a month. Hong Kong's markets rose on the back of technology shares, as the Hang Seng Tech Index rose 2.8% to an all-time high. The subindex is up over 20% from its low in April, entering a bull market. Since April 2, when Trump announced the "reciprocal tariffs" that threatened to upset global trade order, Chinese stocks have struggled for direction. The CSI300 Index has barely moved from its April 2 level and the Hang Seng gained about 4% in the same period. Both markets are lagging behind the global recovery. Reporting by Jiaxing LI in Hong Kong. (Editing by Rashmi aich and Mark Potter.)
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London copper prices rise ahead of US-China Trade Talks
London copper prices rose on Monday due to optimism in advance of the U.S. China trade talks scheduled for later that day. The dollar lost recent gains and shares jumped as Asian markets responded to the better than expected U.S. employment data in advance of the trade talks aimed at repairing a rift between China and the United States. Three of Donald Trump's top advisers from the United States will meet their Chinese counterparts on Monday in London to settle a trade conflict that has been causing global markets to be on edge. By 0709 GMT, the three-month contract for copper on the LME was trading up 0.4% to $9,733.5 a metric tonne. The Shanghai Futures Exchange's most traded copper contract rose 0.1% to $10,981.99. In a recent report, the Shanghai-based commodity analysis house SHMET stated that copper inventories have increased in China, but only moderately. This has not put much pressure on prices. Total Copper Stocks In the SHFE registered warehouses, the weekly gain was 1,613 tonnes to 107 404 tons for the week ending June 6. As for demand, Yangshan copper premium Last Friday, the price of a ton of copper in China fell to $41, a new low for three months. Early May saw a peak of $103, the highest level since mid-December, 2023. Other London metals saw a 0.5% gain in tin to $32,495 per ton. Aluminium rose 0.4% at $2,460, while nickel grew 0.2% at $15,515. Zinc fell 0.3% at $2,657.5. Nickel was up 0.5%, at 122 710 yuan per ton. Lead gained 0.5%, to 16,765 Yuan. Zinc fell 1.8%, to 21,910 Yuan. According to SHMET, the report shows that zinc supply has been abundant and demand is showing signs of easing. Total zinc stocks In the SHFE registered warehouses, the weekly increase was 4,702 tonnes to 47.012 tons. Click or to see the top stories on metals, and other news. (Reporting and editing by Naveen Thkral and Bernadette Baudette Baum; Reporting by Hongmei Li)
Shein and Reliance plan to export Indian-made clothing abroad within one year, according to sources
Two people familiar with the situation said that fashion retailer Shein, along with partner Reliance Retail, plan to expand their Indian suppliers and begin overseas sales of India made Shein branded clothing within six to twelve months.
The China-founded, Singapore-headquartered e-commerce firm has been discussing plans with the Indian retailer since before the U.S. imposed tariffs on Chinese imports that intensified the need to diversify sourcing, the people said. They said the goal is to increase Indian suppliers from 150 to 1,000 within a single year.
Shein issued a statement in which it said that its trademark was licensed for use in India. Reliance didn't respond to any questions.
Shein offers low-cost apparel, such as $10 jeans and $5 dresses, shipped directly from suppliers in China to around 150 countries. Shein's largest market is the U.S., where it is adapting to tariffs on low value e-commerce packages imported from China that were previously duty-free.
The retailer launched its app in India in 2018, but it was banned by the government in 2020, as part of a campaign against China-linked companies amid tensions with its neighbour to the northeast.
In February, it returned under a license deal with Reliance Industries' unit that launched SheinIndia.in to sell Shein-branded clothing produced in local factories. Shein's websites, on the other hand, mainly feature products from China.
The two sources, who declined to be named due to concerns about confidentiality, stated that Reliance, owned by Asia's wealthiest person, Mukesh Amanani, has signed contracts with 150 garment makers and is currently in discussions with 400 others.
People said that the goal was to have 1,000 Indian factories producing Shein-branded clothing within a single year, both for the Indian market as well as to service Shein's websites around the world.
One person said that Shein originally wanted to list India-made clothing on its U.S. websites and British sites. The person stated that discussions have been ongoing for several months, and that the launch date of six to twelve months may change depending on the number of suppliers.
This is the first time that we have reported on the scale of expansion and export timelines.
Shein announced in a press release that Reliance has licensed the use of its brand in India. Reliance is "responsible for manufacturing, supply chains, sales, and operations on the Indian market."
In December, Minister Piyush Goyal of Commerce and Industry told the parliament that Shein and Reliance aimed to establish a network of Indian clothing suppliers for Shein brand clothes sold "domestically and internationally".
On-Demand Manufacturing
Shein, a behemoth in fast fashion, generates annual revenues of more than $30 billion thanks to aggressive marketing and low prices. The majority of Shein's products come from China, with some being made in Turkey and Brazil.
Walmart, as well as other companies in the fashion and retail industry around the world are interested in India due to the Sino/U.S. Trade War.
Sensor Tower, a market intelligence company, reported that the Shein India App has been downloaded over 2.7 million times in Apple and Google Play Stores, with a growth of 120% per month.
In its first four-month period, the company has offered 12,000 different designs. This is a small fraction of its 600,000 items on its U.S. website. The cheapest item in the women's dress category is 349 Indian Rupees ($4), compared to $3.39 at the U.S. website as of June 9,
The two people stated that Shein's Indian Partner Reliance operates the app and is working with suppliers in order to determine whether they can duplicate Shein’s global bestsellers at a lower cost.
Reliance wants to mimic Shein's model of on-demand manufacturing, and will ask suppliers to produce as little as 100 pieces for each design before increasing production.
Manish Aziz is the assistant vice president Shein India for Reliance Retail. In a LinkedIn posting, he described Shein as having "truly incredible" scale and speed.
Reliance has dozens of partnerships with fashion brands such as Brooks Brothers and Marks and Spencer. The company also operates the e-commerce website Ajio, and its retail network is in competition with Amazon's Flipkart and Walmart's Flipkart. It also competes against value retailers like Tata Zudio.
Reliance will work with new suppliers and import machinery to source fabric, especially synthetic fabrics where India lacks expertise. They said that the firm would invest in suppliers to help them grow, which will in turn help Shein-Reliance go global. Reporting by Dhwani Paandya from Mumbai and Helen Reid from London; editing by Aditya K. Kalra and Christopher Cushing
(source: Reuters)