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Category: ASEAN

Cambodia’s Hun Dynasty stakes reputation on the Funan Techo Canal

Editor014 mins

Ground will be broken on the Funan Techo Canal on August 5 – strongman Hun Sen’s 72nd birthday. The waterway will be carved through the eastern regions of the country, eventually connecting the capital Phnom Penh to new deep-water ports in Sihanoukville and Kampot, on the Gulf of Thailand.  The Cambodian government believes the $1.7 billion waterway will reduce Cambodia’s dependency on Vietnam, through whose ports much of Cambodia’s imports and exports are transported.  They expect an economic boon for the country, with cheaper transportation making Cambodian goods more competitive, fostering overall economic growth. But the megaproject has been controversial, to say the least.  Initially, much of the controversy centered on Vietnam’s apparent fear that Cambodia might allow its “ironclad friend” China military access to the canal. The security dimension was played up. Villager Sok Rom looks at excavators being used on the construction of the Funan Techo canal along the Prek Takeo channel in Kandal province, July 9, 2024. (Tang Chhin Sothy/AFP) However, there are more significant concerns. The first is environmental. There are genuine concerns, especially if you’re a Vietnamese resident of the Mekong Delta, about the potential ecological impact. Carving out the canal could lead to further intrusion of salt water into the Mekong’s distributaries and create a massive levee between Cambodia and Vietnam’s floodplains.  As Brian Eyler of the Stimson Center has put it: “the canal will disconnect the floodplain, creating a dry zone to its south and a wetter zone to the north.” Much remains unknown since Phnom Penh hasn’t yet publicly released any environmental impact assessment on the canal. The second concern is economic, and this is a bit more hazy.  David Brown, an economic analyst, argued recently that “there is no plausible economic argument for digging a canal.” I disagree.  Economic logic There is some economic logic to the project if it’s done properly. It will make domestic transport of goods cheaper, benefiting consumers and  make Cambodian exports more competitive in international markets.  Yes, Cambodia has new expressways and wants to re-do its aged railways, but moving goods by water is many times cheaper than by road or rail.  It will mean more business for Cambodia’s new ports in Sihanoukville and Kampot, boosting these local economies. It should bring some investment to the rural areas where the canal passes through.  And it does make Cambodia more economically self-sufficient—no one can say with 100% certainty that Vietnam won’t in the future deny access to its ports, which would effectively mean an economic blockade for Cambodia. Residential homes along the Prek Ta Hing channel, where the proposed second phase of the Funan Techo canal is set to be built, in Kandal province, July 9, 2024. (Tang Chhin Sothy/AFP) None of this is to say that Phnom Penh has gone about this the right way. The entire process has lacked transparency.  The government was too hubristic at the beginning, thinking that China would fund everything, and has over-egged the patriotic angle of the canal, choosing not to have a decent dialogue with the public about the complexity of the scheme.  Indeed, Prime Minister Hun Manet, who inherited the premiership from his father Hun Sen last year, has presented it as a nationalistic project.  As Hun Manet put it, the canal will give Cambodia “a nose to breathe through.” Of course, this rhetoric comes slightly unstuck once you recall that the China Road and Bridge Corporation will have a lengthy build-operate-transfer contract on the project, so it will only pass into Cambodian ownership sometime in the second half of this century.  Even so, Phnom Penh’s propaganda machines are in full swing: anyone who criticizes the scheme is unpatriotic or despises Cambodia, and those who support it are the true adherents of national sovereignty. Legacy building The inherent problem is that the whole thing is essentially a vanity project.  That doesn’t mean it’s entirely illogical or uneconomical. But you have to remember that this isn’t a normal project. It’s far more symbolic than the Phnom Penh-Sihanoukville Expressway, the country’s first proper motorway, or your bog-standard hydro dam. It’s a way for Hun Sen, who is still the kingpin despite resigning last year after nearly four decades in power, to give himself a physical legacy. The Hun dynasty is physically cutting an artery through the country, a landmark to the power of the Hun family that they hope will last for centuries. “Our ancestors built the Angkor Temple and other great monuments, but unfortunately we used to be divided. Now, we are once again united and we are building new achievements,” Hun Manet said earlier this year. Construction will begin on August 5, Hun Sen’s birthday.  Kavi Chongkittavorn, a veteran Thai journalist, has called the Funan Techo Canal a “litmus test for Hun Manet’s leadership.” Another analyst put it: the government has to “complete it by all means, at all costs.” Workers dig the Funan Techo canal at Prek Takeo in Kandal province, July 9, 2024. (Tang Chhin Sothy/AFP) Indeed, the Hun family has staked its reputation, though not its power, on the project.  When trying to defend the canal during a speech in May, Hun Sen, referring to himself in the third person, tried to reassure Cambodians: “Hun Sen has never made a wrong decision in the past 47 years”. (He has; many.) For Hun Manet, it offers an opportunity for drums, flags and loyalty-parades. His first year in power has been somewhat dull.  He isn’t as bombastic, as in-your-face, as his father. His speeches aren’t as wild and rambling; his rhetoric is more measured and consensus-based. His focus is policy, often of the boring sort.  The ruling party framed his succession as a technocratic shift, the transition from a generation of rulers who literally fought to save the country from genocide to a generation that will make slow, incremental improvements to the progress they inherited.  Take a moment to read more Cambodian canal project to kick off on Hun Sen’s birthday Vietnam urges Cambodia to cooperate…

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India pledges $300m loan to boost Vietnam’s maritime security

Editor05 mins

India has offered to provide Vietnam with US$300 million to strengthen its maritime security amid rising tensions in the Asia-Pacific region and increasing wariness in both countries about China’s growing military might and assertiveness. India’s pledge was made during a visit to India this week by Vietnamese Prime Minister Pham Minh Chinh, during which he and his host, Prime Minister Narendra Modi, virtually inaugurated a military software hub in the city of Nha Trang in central Vietnam. The Army Software Park is being developed with India’s assistance and is expected to produce software solutions as well as provide information technology services. Modi said at a welcome ceremony for Chinh at Hyderabad House on Thursday that Vietnam was an important partner in India’s Act East Policy and Indo-Pacific vision.  The Act East Policy is a diplomatic initiative to promote economic, strategic and cultural relations with the vast Asia-Pacific region at different levels.  Both countries would “continue cooperation for a free, open, rules-based and prosperous Indo-Pacific,” Modi said. This visit from July 30 to Aug. 1 was Chinh’s first trip to India as head of government. RELATED STORIES Vietnam’s PM visits India to reaffirm strategic partnership Vietnam mulls law that may open market to foreign arms firms Vietnam hosts its first international defense expo The leaders said in a joint communique at the end of the visit that Vietnam and India “agreed to strengthen further their defense cooperation based on common priorities and interests, and to contribute to the stability in the Indo-Pacific region.” A package of preferential loans worth US$300 million would be offered for two projects to improve Vietnam’s maritime security, they said. They  did not specify details but Indian media said the money would  be spent on procuring two types of patrol boats for the Vietnamese navy. In June 2023, India donated to Vietnam a missile corvette, the INS Kirpan, and also sold it 12 high-speed guard boats. Rule-based South China Sea Maritime security is seen as one of the most important elements of Vietnam-India bilateral relations and they have held regular maritime security dialogues since 2019. The joint communique emphasized the importance of “maintaining peace, stability, security and freedom of navigation and overflight in the South China Sea.” Both countries are committed to finding peaceful solutions to maritime disputes in accordance with international law, in particular the 1982 U.N. Convention on the Law of the Sea, or UNCLOS, they said. They stressed that UNCLOS is the legal framework for all maritime activities in the region and the basis for all claims over jurisdiction. Vietnam, together with other ASEAN countries, and China are negotiating  a code of conduct for parties in the South China Sea.  India and the United States are not involved in those talks but the two leaders called in their communique for a rule-based and effective code of conduct that “does not affect rights and jurisdictions of other countries, including those not taking part in the negotiation process.” China has warned against what it sees as the “intervention” of outside countries in South China Sea disputes. Edited by Taejun Kang.

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Vietnamese activist on trial from prison cell in Thailand

Editor05 mins

A court in Bangkok on Thursday began hearing a Vietnamese request for the extradition of a Montagnard activist who Vietnam accuses of terrorism but who rights groups say will be tortured if sent back. Y Quynh Bdap, 32, a campaigner for ethnic minority people, is wanted in Vietnam where he was sentenced in absentia in January to 10 years in prison after being convicted of involvement in 2023 attacks on public agencies in Dak Lak province in which nine people were killed. The co-founder of the Montagnards Stand for Justice indigenous rights group has been in Thailand since 2018 and denies involvement in the 2023 violence. He was not allowed to attend Wednesday’s hearing and had to take part by teleconference from remand detention after Vietnamese officials cited security concerns. “It’s hard to inquire and translate on teleconference,” defending lawyer Nadthasiri Bergman told Radio Free Asia. “It is also a disadvantage being unable to meet a lawyer in the courtroom.” The case has shone a spotlight on Vietnam’s stand on dissent and also on what rights groups say is growing cooperation between states in the region to crack down on each other’s dissidents. “The hearing must be transparent,” said Pornpen Khongkachonkiet, director of the Bangkok-based rights group Cross Cultural Foundation, describing Bdap as a rights defender at risk of deportation. Bdap is from the Ede minority, one of about 30 groups known as Montagnards, the French term for hill people, in Vietnam’s Central Highlands. The mainly Christian groups have suffered years of persecution from authorities over religion and land rights. ‘Swap mart’ On June 11, Thai authorities arrested Bdap for “overstaying” his visa following an extradition request from Vietnam.  Thailand does not recognize refugee status but the U.N. High Commissioner for Refugees has recognized him as a refugee and he is awaiting resettlement to a third country. Bdap met Canadian authorities on June 10 to discuss resettlement there. U.S. embassy officials and representatives of international organizations observed Thursday’s hearing, as did Vietnamese security officials. As well as the hearing on Vietnam’s extradition request, Bdap will also stand trial for the immigration offense on Aug. 5. It is unclear when the court will hand down its ruling, Bergman said, adding that Bdap would fight the two-tier proceedings. She said she was hopeful that if a recently enacted Thai law on forced disappearances was taken into account, he “would not be sent back into harm’s way.”Thailand and Vietnam do not have an extradition treaty but have cooperated on a reciprocal cross-border basis in recent years when dealing with dissidents, right groups said. New York-based Human Rights Watch accused Thailand of acting like a “swap mart” to exchange dissidents, and disregarding international norms. Independent experts have called on Thailand to respect the obligation of non-refoulement, which prohibits returning a person to a country where they would face a risk of persecution or torture, the U.N. rights office said last month More than 160 people are incarcerated in Vietnamese prisons for criticizing the government, among them environmental activists and campaigners for  press freedom, according to Human Rights Watch. Edited by Mike Firn.

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Thailand’s offer of aid to Myanmar gets mixed reaction

Editor06 mins

A Thai pledge to donate millions of baht to help alleviate a humanitarian crisis in neighboring Myanmar has met with a mixture of gratitude and skepticism from Myanmar’s pro-democracy government in exile. The kingdom will give nine million baht (US$250,000) to the humanitarian center of the Association of Southeast Asian Nations, known as ASEAN, Thai Foreign Affairs Minister Maris Sangiampongsa told a regional meeting in Laos on the weekend.  But Kyaw Zaw, spokesperson for the president’s office of the National Unity Government, or NUG, said that while they greatly appreciated Thailand’s gesture, coordinating with the junta alone was not enough to ensure the aid would reach those most in need. “Since most of the desperately in need internal [displaced people] are living in resistance-controlled areas, not the junta,” he told Radio Free Asia on Wednesday. “The coordination with the junta will just give them the photo opportunities and not effectively reach out to the desperately in-need people on the ground.” ASEAN has been struggling to help fellow member Myanmar resolve a bloody crisis triggered by a 2021 military coup, pressing all sides to accept a plan aimed at ending the violence and initiating talks.  But Myanmar’s military has largely ignored the plan and fighting between junta forces and various allied insurgent groups has intensified this year, with the number of internally displaced rising to more than 3 million civilians, according to the United Nations. Since forming its humanitarian corridor into eastern Myanmar in March, ASEAN’s Coordinating Centre for Humanitarian Assistance on disaster management, or AHA Centre, has overseen a Thai shipment of 4,000 aid packages into Kayin state to assist civilians affected by fighting. The AHA Centre has also distributed nearly US$2 million worth of food and hygiene supplies to communities in Myanmar’s Sagaing and Magway regions, as well as southern Shan state and Mon states, ASEAN said in a statement on Saturday.  The earlier Thai aid was initially sent over the border into a part of Myanmar under the control of junta forces and was then transported deeper into the interior.  Thai officials at the time declined to be drawn into a debate on whose territory the aid ended up in but the NUG believes such donations have failed to target populations that are the most seriously affected by conflict. Political analyst Panitan Wattanayagorn shared that view. He told RFA that Thailand’s initiatives regarding Myanmar were not as clear as they were in the past, including the potential use of the humanitarian corridor, because the delivery of aid had become more complicated as the control of territories changed as the course of the war unfolded. “More and more areas are under control of groups that can deliver the support, like the Karen and others,” Panitain said. “Thailand’s participatory role is changing. It’s adopting a more maybe wait-and-see approach, unlike the previous administration.” Parts of western Myanmar have seen critical food and healthcare shortages as junta blockades as part of its effort to battle the Arakan Army insurgent force, which has captured at least nine townships in Rakhine state and one in neighboring Chin state.  RELATED STORIES Myanmar’s civil war has displaced 3 million people: UN ASEAN special envoy to meet Myanmar junta leader ASEAN should admit defeat over Myanmar  Edited by Taejun Kang.

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Food shortages reported in rebel-controlled areas of Myanmar’s Chin state

Editor04 mins

Food and medicine shortages in two townships in Myanmar’s Chin state have worsened in the six months since the Arakan Army took control, causing most residents to leave the area, aid workers and residents said. The ethnic rebel Arakan Army, or AA, drove junta forces out of Paletwa and Samee townships on Jan. 14.  A Paletwa resident, who requested not to be named for security reasons, told Radio Free Asia that people in the township’s urban area have been trading pigs and cattle for rice and other consumer goods over the last several months. “People living in the urban areas can’t travel at all,” he said. “They have no salt, cooking oil or fish paste. They are facing many difficulties in traveling and living.” The AA has been fighting the military junta as it seeks self-determination for the Buddhist ethnic Rakhine population in western Myanmar. Bags of rice are donated to Kaki Swar Refugee Camp in Palatwa township, June 19, 2024. (Paletwa IDPs and Humanitarian Supporting via Facebook) In Paletwa, ethnic Chin residents have had to seek permission from the AA to travel from their homes to their farms in the township’s rural areas, residents told RFA. That has created difficulties for residents trying to make a living, they said. RFA was unable to contact AA spokesperson Khaing Thukha for comment on the shortages.  For the last seven years, Paletwa and Samee township residents have been importing fuel and basic consumer goods from India’s Mizoram state through the Kaladan River, which flows into Myanmar. But last month, an influential Indian civil society organization – the Central Young Lai Association – called for a halt to the transport of goods from Mizoram state to AA-controlled areas in Chin state, citing the AA’s treatment of ethnic Chin people. That has caused a severe shortage of fuel and basic foodstuffs in northern Rakhine state and in some areas of Chin state, residents said. Since January, many residents have since taken refuge in Mizoram state, while others have moved through neighboring Rakhine state to Myanmar’s commercial capital, Yangon. Due to unstable phone lines and internet communication, the exact number of residents left in Paletwa and Samee townships was unknown. But relief workers said only one-third of residents are still living in the urban areas of the two townships. Translated by Aung Naing. Edited by Matt Reed.

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Philippines to get US$500M in defense infusion from Washington

Editor09 mins

The United States on Tuesday announced an “unprecedented” $500 million infusion to help the Philippines defend its shores amid increasing territorial threats from China, as the American and Filipino defense and diplomatic chiefs met in Manila. U.S. Defense Secretary Lloyd Austin and Secretary of State Antony Blinken made the announcement after meeting with their Filipino counterparts, Gilbert Teodoro and Enrique Manalo, at a so-called “2+2” meeting in the Philippine capital. It was the first time the meeting was held in the Southeast Asian country, a key U.S. ally in the region that has opened nine military bases to American troops. “[W]e are taking bold steps to strengthen our alliance,” Austin told a press briefing after nearly four hours of closed-door talks. “We are poised to deliver a once-in-a-generation investment to help modernize the Armed Forces of the Philippines and the Philippine Coast Guard. We are working with the U.S. Congress to allocate 500 million dollars in foreign military financing into the Philippines,” he said. The Pentagon chief described this level of funding as “unprecedented,” saying “it sends a clear message of support for the Philippines from the Biden administration, the U.S. Congress and the American people.” Separately, the U.S. was looking to double its investment in Philippine military sites where American troops have access to under the Enhanced Defense Cooperation Agreement, Austin said. “President Biden’s budget request this year includes more than 128 million dollars to fund important EDCA infrastructure projects and U.S. government investment in these locations,” he said. “During our meeting we also reaffirmed that the Mutual Defense Treaty remains the bedrock of our alliance,” Austin said. “And let me be clear: the Mutual Defense Treaty applies to armed attacks on either of our armed forces, aircraft or public vessels anywhere in the South China Sea.” Signed in 1951, the treaty calls on the allies to come to each other’s aid in times of foreign aggression. The Philippines maintains an old, rusting World War II-era ship, the BRP Sierra Madre, in Second Thomas (Ayungin) Shoal, to serve as its military outpost in the disputed South China Sea reef. Marcos meets with Austin, Blinken President Ferdinand Marcos Jr. set the tone for Tuesday’s 2+2 meeting when he met Austin and Blinken at the Malacañang presidential palace earlier in the day. He said he was pleasantly surprised that both secretaries had taken time out to visit Manila despite the political transition in the U.S. “And I am always happy that these communication lines remain very open – all the things we are doing together in terms of alliance, in terms of the specific context of our situation here in the West Philippine Sea … are constantly examined and re-examined so we are agile in terms of our responses,” Marcos said, referring to South China Sea waters within the Philippines’ exclusive economic zone. Blinken said the meeting was evidence of a “steady drumbeat of very high-level engagements” between the longtime allies. Austin underscored that both nations were “more than allies” and practically family.  “We have common interests, common values,” he told Marcos, according to transcripts released by the presidential palace. “And so I think we’ve done a lot over the last three and a half years to continue to strengthen our alliance, and we look forward to continuing to work with you and your team to move even further.” (From left) U.S. Defense Secretary Lloyd Austin, Secretary of State Antony Blinken, Philippine Foreign Secretary Enrique Manalo and National Defense Secretary Gilberto Teodoro pose for the cameras after holding foreign and defense ministerial meetings at Camp Aguinaldo in Manila, July 30, 2024. (Jason Gutierrez/BenarNews) Last week, the Philippines and China agreed on an arrangement on Filipino missions to Ayungin to “de-escalate” tensions in the sea region after an incident last month during which a Filipino serviceman lost a thumb during a violent encounter with Chinese coast guard and navy forces. Following the agreement, the Philippines last Saturday transported a fresh batch of Filipino forces to the BRP Sierra Madre. It went ahead without any incident, but the Chinese subsequently said it allowed the mission to go through after confirming on the scene that the Filipino vessel only carried “humanitarian living necessities.” The details of the arrangement have not been made public, but the Philippines disagreed with China’s version of events. Geopolitical analyst Julio Amador IIII said China was playing up to an international audience that the Philippines had “acquiesced” to its demand but that in truth, “it was purely a diplomatic spin.” “Beijing cannot help itself in this regard because it has to show that it did not bend to a weaker competitor,” Amador told RFA affiliate BenarNews, stressing that Manila was right in responding quickly to any Chinese claims. He said the “2+2” meeting indicated how serious the U.S. was in addressing what it sees as a security threat posed by China. “The 2+2 is the ministerial level alliance management mechanism that provides direction to both countries in working together as security and defense allies,” he said, adding that the U.S. $500 million funding would likely go towards supporting the Philippine military’s modernization program. “This is the single biggest support that the Philippines will receive from the U.S. in FMF [foreign military financing]. It will address previous comments from Manila that non-U.S. allies actually get more support than actual allies.” BenarNews is an RFA-affiliated online news organization.

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Floods force 20,000 people from homes in Myanmar’s Bago

Editor05 mins

Flooding triggered by torrential downpours has forced about 20,000 people from their homes in the Myanmar city of Bago and they now face a dire shortage of water and food with more rain expected, aid workers and residents said on Monday. A child was swept away and drowned near Bago, which is famous for its Buddhist temples, about 80 km (50 miles) north of the former capital of Yangon, after days of relentless rain, residents said. The flooding has compounded misery for many people struggling to get by in an economic crisis in the wake of a 2021 military coup that plunged the country into bloody turmoil. “The flood hasn’t subsided. I don’t know how to express the hardships, the flooding amidst the political crisis. We’re facing shortages of food and medicine,” a Bago resident, who declined to be identified for fear of reprisals for talking to the media, told Radio Free Asia. Floods in Bago in Myanmar on July 29, 2024. (RFA) Aid groups said 20,000 people have been forced from their homes since Friday, with residents of the Ah Htet Zaing Ga Naing Gyi, Kyun Tharyar, Kyauk Gyi Su and Pon Nar Su neighborhoods particularly hard hit. “Those neighborhoods are flooded up to the height of bamboo,” said an official with a Bago-based social aid group, who also declined to be identified. “There’s an urgent need for clean drinking water and food for the evacuees,” said the official, adding that some people who had sought shelter in a relief camp were forced to move again when the waters kept rising. The junta that seized power in 2021 said in a notice in the state-owned Myanmar Alin newspaper that 27 flood relief camps had been opened and military authorities in Bago had helped 18,210 people evacuate and were providing assistance to them. A child from a family already displaced by fighting was killed in the town of Mone, to the north of Bago, when fast-flowing flood waters washed away a river bank, residents said. “They were fleeing the war and were sheltering in the forest when the child was washed away. The body was found near Kyaung Su village,” said the first Bago resident. Meteorological officials said early on Monday that the flood waters in Bago could rise by another six inches over the next day and would remain above the danger level for some time.  Floods in Bago on July 29, 2024. (RFA) To the east of Bago, the Sittaung River, one of the main rivers flowing south through central Myanmar to the ocean, had overflowed and flooded communities along its banks, residents of the area said. Even further to the east, flooding in Myawaddy township on the border with Thailand killed three people – a child and two men – on Saturday when a border river burst its banks, residents said. Flooding in northern Myanmar’s Kachin state displaced thousands of people early this month. The military council’s Meteorological Department and the Hydrological Directorate announced on Sunday that 12 cities across Myanmar faced flooding.  Editing by RFA staff.

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Laos, Thailand mark first direct passenger train between Bangkok, Vientiane

Editor03 mins

The first direct passenger train between Bangkok and Vientiane arrived earlier this month.  Previously, passengers could ride from Bangkok to the Thai city of Nongkhai on the border with Laos. But now they can travel straight into Vientiane – and also have the option of transferring to the high-speed rail line that travels north to Kunming in southwest China.  The first State Railway of Thailand train began servicing the route on July 19. A return train on July 20 left Vientiane at about 6:25 p.m. and arrived in Bangkok at about 7:35 a.m. the next day.  Prices ranged from between 158,000 kip (US$7) to 560 million (US$24) kip. It was so popular that officials added an additional carriage after passengers bought most of the available tickets. “I always commuted by train when I was studying,” one Lao passenger told Radio Free Asia. “I wanted my kids to take this train, so they could experience it.” Eventually, passengers could travel from Bangkok and Vientiane on a high-speed rail line. Earlier this year, Chinese Foreign Minister Wang Yi told Thailand’s prime minister that he hopes to speed up construction of a high-speed rail line in Thailand that would connect with Laos’ high speed line, which China built in 2021 as part of its Belt & Road Initiative. China has said that it plans to construct and connect a 3,000-kms (1,864-miles) pan-Asian railway network, in which Chinese rail lines would extend all the way to the tip of the Malay Peninsula, linking Beijing to Singapore. Edited by Matt Reed.

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Another day, another fraud case in Vietnam

Editor012 mins

The week that Vietnam was in an official state of mourning for Communist Party General Secretary Nguyen Phu Trong, whose tenure was centered on a “Blazing Furnace” anti-corruption campaign that toppled dozens of top officials, another big corporate fraud trial began in a Hanoi court.  While its scale and scope pale in comparison to the Van Thinh Phat scandal orchestrated by businesswoman Truong My Lan, who was convicted and sentenced to death in April 2024, the FLC (Finance, Land, and Commerce) scandal is garnering significant media attention.  Trinh Van Quyet, was a young, brash, high-flying tycoon, and briefly in 2021, the country’s wealthiest person.  Established in 2010, his property company, FLC, quickly grew into a sprawling conglomerate with some 17 subsidiaries and affiliated companies in real estate, resorts and golf courses, as well as Bamboo Airways, once the second largest privately-owned airline in the country.   Quyet, 49, was arrested in March 2022 along with his two sisters for stock market manipulation, appropriation of property, and fraud. Authorities arrested 47 other people, including FLC executives and several regulators. In all, 15 relatives are on trial. At least one other FLC executive is at large. FLC Group CEO Trinh Van Quyet holds a model of a Boeing Dreamliner passenger jet at his office in Hanoi, July 30, 2018. (Nhac Nguyen/AFP) Perhaps more importantly, police arrested the former chairman of the Ho Chi Minh Stock Exchange, Tran Dac Sinh, its director, Le Hai Tra, and two other bourse executives. The four were charged with “abusing positions and powers while performing official duties.” Quyet is accused of running $156 million “pump and dump” stock fraud between May 2017 and January 2022. He had his two sisters and 43 other family members establish some 500 different brokerage accounts.  False documents Quyet and his family members traded FLC stock amongst themselves at a frenzied pace, creating the perception of demand and causing the price to soar. On many occasions, his sister would cancel a stock purchase at the last minute, having already created the impression that the shares were in demand. In another scheme, from 2014-2016, Quyet had family members and employees at another subsidiary, FLC Faros Construction, falsify documents to make it look as though they were making investments and increasing the firm’s charter capital from VNĐ1.5 billion ($59,000) to VND4.3 trillion ($169 million).  Thus when the once loss-making private company was publicly listed, which was only possible because of the intervention of corrupt bourse officials, it appeared to be worth significantly more than it was.  Police escort FLC Group CEO Trinh Van Quyet to court on July 22, 2024, for his trial on fraud charges in Hanoi. (Anh Tuc/AFP) Quyet and other defendants quickly sold the 391 million of 430 million shares that they controlled, netting $142 million, and collapsing the stock price for other investors. All in all, the various schemes resulted in the six listed FLC companies seeing the value of their shares rise between 70% and 1,700%.   In addition to the fraud, Quyet sold large shareholdings without notifying financial regulators, a requirement for corporate executives. In January 2022, he sold nearly 75 million shares of FLC stock, collapsing share prices, and prompting the Ministry of Public Security to open an investigation.  RELATED STORIES Mendicant monk Thích Minh Tuệ offers an embarrassing contrast to Vietnam elites Breaking the laws of the land: Vietnam’s real estate scandals Ouster of parliament chief bares Vietnam corruption, power struggle Cleaning house in the Communist Party of Vietnam ahead of Tet Meet To Lam, Vietnam’s Communist Party chief and successor to Nguyen Phu Trong  Regulatory shortfalls The FLC case matters for three reasons. First, it was only possible because the regulators were in on the fraud. As was the case in Truong My Lan’s massive fraud case at Saigon Commercial Bank, the scheme was abetted by poorly paid regulators.  This once again raises the question “who regulates the regulators?” If Vietnam cannot get a baseline financial regulatory system running, it will negatively impact its domestic capital markets, corporate governance, and deter foreign investment.   While the Ministry of Public Security did a good job in investigating the fraud, as they did with Lan’s Van Thinh Phat (VTP) and Saigon Commercial Bank, it never would have gotten to this point if there was proper regulatory oversight. Second, while Vietnam’s stock market is not that large, it stands as one of the few opportunities for Vietnamese citizens to invest their money.  With a lack of confidence in their currency, Vietnamese tend to buy gold. In fact, in the past half year, the price of gold in Vietnam was trading well above international prices. The government had to auction off some of its gold reserves just to cool the market.  A woman displays gold at a shop in Hanoi, Oct. 11, 2009. (Kham/Reuters) Vietnamese also buy real estate, but that’s not always a safe investment. The domestic real estate market in Vietnam resembles China’s in many ways. Many property firms are saddled with debt and have defaulted, especially on dollar-denominated bonds.  A domestic credit crunch caused by the VTP scandal in late 2022 led to even more defaults and stalled real estate projects. Many Vietnamese were left paying mortgages on unfinished real estate that they could neither inhabit, nor rent.  The third place Vietnamese park their savings is in the stock market. The majority of shares in the Vietnam stock market are owned by individual, not institutional, investors. So when there is widespread fraud, it really hurts the burgeoning middle-class.   Quyet’s fraud was fairly simple, but the effects were widespread: There were nearly 100,000 victims. Although Quyet has paid some $8.3 million in restitution, it’s a drop in the bucket.  Cost to taxpayers Third, the FLC fraud trial has an impact on the larger economy.  The company – which is one of the largest private companies in the country – is still in operation, but barely.  The Ho Chi Minh Stock exchange delisted the company due to the fraud. Trading…

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Thousands flee junta raids in central Myanmar

Editor04 mins

Myanmar junta forces raided a string of villages in central Myanmar killing three civilians and sending some 10,000 fleeing from their homes after anti-junta insurgents attacked a nearby military base, residents told Radio Free Asia on Friday.  The Sagaing region has been regularly battered by airstrikes and artillery bombardments as junta forces crack down on insurgent groups that have stepped up attacks in the past nine months. On Thursday, about 150 junta soldiers in a convoy of vehicles raided at least nine villages in Kanbalu township, residents said, following an attack on an army camp by members of an anti-junta People’s Defense Force allied with the shadow National Unity Government, which was formed by civilians after the military seized power in a 2021 coup. “After the Kyi Kone Bridge camp was attacked, the army launched an offensive on the villages,” said one resident who declined to be identified in fear of his safety. “The junta troops stationed at Tha Yet Khaung village are burning houses this morning. Revolutionary groups are monitoring the situation,” he said, referring to anti-junta fighters.” Three civilians in Tha Yet Khaung and Tha Pyay Thar villages were killed in junta artillery and drone attacks. Kanbalu district and Ye-U township-based People’s Defense Forces said  they killed 16 soldiers and seized weapons in their attack on the army camp. RFA has not been able to independently verify the claim.  RFA called Nyunt Win Aung, the junta spokesman for the Sagaing region, to request comment on the incident, but he did not answer the phone. RELATED STORIES Junta deploys first round of military recruits to Myanmar’s frontlinesSome 13,700 schools in Myanmar are closed due to civil warMyanmar airstrike on monastery where villagers were sheltering kills 17 activists Sagaing, for years a peaceful heartland region of central Myanmar, inhabited mostly by members of the majority Burman community, has seen unprecedented opposition to the military since the 2021 coup dashed hopes for reform.  In the months that followed, the junta crushed protests against military rule and many activists then took up arms, some linking up with ethnic minority insurgents who have battled for self-determination from remote border lands for decades.  Translated by RFA Burmese. Edited by Kiana Duncan and Mike Firn. 

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Investigative Journalism Reportika © March 2022 by Ij-Reportika is licensed under CC BY 4.0