Vietnam Content Bangkok Bank in Vietnam Economy, Fundamental and factor of Vietnam Economy Investment Procedure & Geography Opportunities

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3 Bangkok Bank (Vietnam) Hanoi Branch –Unit 3, 3 rd floor, International Centre – 17 Ngo Quyen, Hoan Kiem District – Hanoi, Vietnam – Tel: (84-4) – 8 Ho Chi Minh Branch –G/F Harbour View Tower – 35 Nguyen Hue Boulevard, District 1 – HO Chi Minh City, Vietnam – Tel: (84-8) Before VN war, established 1961 to 1975: Saigon branch After VN war reopened since 1992 and we are the first foreign bank in Vietnam Investment consultant: Assist more than 100 FDI plants to set up in Vietnam Awarded Letter of Merit and flag of Merit by State Bank and Prime Minister for Outstanding Performance for year , consecutively

Vietnam Economic Indicator Sources: Vietnam State Bank, Ministry of Industry and Trade, Ministry of Planning & Investment, General Statistics Office, Reuters, World Bank, IMF, ADB (F)2014 (F)2015 (F) GDP Growth (%) Import growth (%) Export Growth (%) Balance of Trade (USD Billion)  -4-8  -10 Unemployment Rate (%) – Inflation Rate (%) Average Lending Interest Rate (%) Average Exchange Rate (USD/VND) 19,50021,03620,850-20,95021,000-22,00021,500-22,50022,500-23,500

Sep (F) GDP5.32%6.78%5.89%5.03%5.14% % CPI6.52%11.75%18.13%6.81%6.3%7-9% Vietnam Economic Indicator Sources: GSO, Reuters, World Bank, IMF, ADB

Sep – (F) Export US$56.6 bioUS$71.63 bioUS$96.3 bioUS$114.6 bioUS$96.5 bioUS$ bio Import US$68.8 bioUS$84.0 bioUS$105.8 bioUS$113.8 bioUS$96.6 bioUS$ bio FDI (registered capital)US$21.5 bioUS$18.6 bioUS$14.7 bioUS$13 bioUS$15.0 bio> US$15 bio FDI (Disbursement)US$10.0 bioUS$11 bio US$10.46 bioUS$8.6 bioUS$10-11 bio Vietnam Economic Indicator Sources: GSO, MOIT, MPI, Reuters, World Bank, IMF, ADB

7 7 YearDepre % % % % % % Jan-Sep, % LevelStatus Fitch (Jan 2013)  B+ (FC)  B+ (LC) Stable S&P (Jun 2013)  BB- (FC)  BB- (LC) Stable Moody’s (Sep 2012)  B2 (FC and LC bonds)  B1 (FC Country ceiling)  Ba2 (LC Country Ceiling)  B3 (FC Bank deposit ceiling)  Ba2 (LC Bank deposit ceiling) Stable Country’s Rating VND Depreciation (year-on-year) Vietnam Economic Indicator - Notes: FC: foreign currency; LC: local currency Notes: - As of Aug 30, 2013, the USDVND official rate was increased by 1% from 20,828 to 21,036. But in terms of the inter-bank market level, VND has been depreciated against USD by around 1.3% in Jan-Sep Sources: Reuters

8 8 Strength and Weakness of Vietnam Strength -High political stability -Plenty of young and low wage labors -Abundant natural resources -Overseas Vietnamese 4.5 million population (bringing more than USD9 billion inward remittance to the country) Weakness -Indistinct principle and regulation -Obsolete infrastructure -Fluctuation of Money Market and Exchange rate -Shortage of skilled workers in Production hub area -Lack of upstream industry -Electricity shortage in dry season

Reasons of VND Devaluation Lack of confident of local people in VND (sentimental factor) Black market Gold Huge Trade Deficit (around USD11-12B/month)  Solved Reasons of high inflation Pro-growth policy and inefficient investment (demand pull) Lack of supporting industry  rely on imported raw material(cost push) Things to watch Vulnerable Banking Industry: Restructuring of Banking industry and gold market Return of inflation  Further devaluation

Exchange rate 10 Items Sep (F) USDVND official ceiling rates18,47919,50021,036 21,24621,400-21,600 USDVND Inter-bank market level 18,600-18,70020,75021,25020,820-20,86021,090-21,14021,000-22,000 Currency : Vietnam Dong (Oct 21, 2013) - SBV Base Rate: VND21,036/USD - Ceiling and Floor Rate: + or – 1% of official Rate: VND21,246/USD and VND20,826/USD - Inter-bank level: VND21,080-21,120/ USD - Free Market Rate: VND21,130-21,180/ USD FX is controlled strictly by SBV Declaration required for funds brought in/out of Vietnam in excess of US$ 5,000.- plus VND15 million USDVND Foreign Exchange Rate ( )

Interest rate 11 Items Sep (F) VND interest rates (3mth)12.0% % %7.0 – 11.0% %6.0 – 9.0% Interest rate (I.e. 3 mth as of Oct 21, 2013) (% per annum) USD VND Fixed deposit interest rate % % Loan interest rate % % Note: State Bank ’ s VND base rate = 9% Source: Reuters VNIBOR Fixing Rates ( )

Banking Services Deposits (USD, VND) Current, Savings, Fixed Loans (USD, VND) Revolving Short-term Loan Long-term Loan Trade Finance Facility: L/C, S/G, T/R, Packing Loan, etc. Local and Foreign Fund Transfer (USD, VND, THB, EUR, etc.) Foreign Exchange International Trade Inward/Outward Bills for Collection: D/P, D/A Letter of Credit

Settlement system Cash settlement Bank Transfer Cheque (not widely used because don’t have cheque clearing house) 13 Profit Repatriation Convenient and easy Profit repatriation is permitted after settlement of Corporate Income Tax and other obligations to the State, if any. Profit repatriation can be done once a year

14 Procedure for investment in Vietnam Contact industrial park for the land, factory and apply for the investment license (take around 1 month long) After complete investment license, bring the license to security department at police office to apply for the legal company stamp (take around 2-3 weeks) After authorized the company stamp, open the capital account with the bank for transfer the fund (allow to have only one account only). Investor can start construction or operation after complete all the process above.

3 Purposes of Investment in Vietnam Enjoy cheap labor and reduce production cost To capture 90M population market To find source of raw material Key success factors in investment in Vietnam Know well and respect local regulations Manage well in human resource Understand culture of Vietnamese consumer Have “BBL” as your partner

Export - Import Markets & Products

Export Markets & Products Sources: General Statistics Office

Import Markets & Products Sources: General Statistics Office Notes: * the value by August 2013

Major FDI in Vietnam

FDI in Vietnam 20 Sources: Ministry of Planning & Investment

FDI in Vietnam 21 Sources: Ministry of Planning & Investment

FDI in Vietnam 22 Sources: Ministry of Planning & Investment

FDI in Vietnam 23 Sources: Ministry of Planning & Investment

FDI in Vietnam 24 Sources: Ministry of Planning & Investment

FDI in Vietnam 25 Sources: Ministry of Planning & Investment

Major area for investment

Successful Thai Investor in Vietnam

Matters should be aware of investment in Vietnam Should study principle and regulation completely VND devaluation may effect performance of the company (should add some margin to partially cover such risk) Strict foreign exchange control and tight USD currency liquidity Balance between USD and VND debt Labor quality should be closely monitored and well trained. Should study the market, demand structure and also consumer behavior for effectively do marketing and sales. Aware of pollution issue 28

Opportunity Bubble burst  Asset price went down  M&A(within 6 mths- 1 year) Cheaper production cost with potential big market Low PE and low market cap./GDP with long term growth Fact of Investment in Vietnam Joint Venture with local has low successful rate  100% owned is best First three years consecutive loss  Big profit after 3 years High risk always bring high return Boss must be at the ground Always relied on expat team

Investment’s General Information Salary -Minimum salary stipulated by government for both local and FDI enterprises: VND million or equivalent around USD depend on defined area (effective from 1 Jan 2013). Salary offer to employee must be at least 7% higher than minimum salary. -Salary for probationary employee is at least 70% of official salary -Maximum 8 hours/day or 48 hours per week Overtime -Overtime maximum 4 hours per day and 200 hours per year. -150% normal 180% night time 200% weekly holiday and 300% public holiday or paid leave Labor Welfare (apply for year ) -Company part: 17% for social insurance, 3% for health insurance, 1% for unemployment insurance -Employee’s part: 7% for social insurance, 1.5% for health insurance, 1% for unemployment insurance Labor Union -If the company has more than 10 persons, require to has union but not compulsory

Contact Industrial Park HCM: 1. Tan Tao IP. - Contact person: Ms. Uyen, cell phone no.: up to Hiep Phuoc IP. - Contact person: Mr. Binh, cell phone no.: up to Tan Thuan EPZ: the rental land area was already full. Binh Duong: 1. VSIP 2 (Vietnam Singapore Industrial Park 2) - Phone No.: Contact person: Mr. Toan, cell phone no.: up to My Phuoc IP: - Phone No.: (MKT Dept.) - up to Ba Ria- Vung Tau 1. My Xuan A Industrial Zone: as informed by subject, at the moment, the rental land area was already full and they only provide the service of factory rental to customer. 2. My Xuan A2 Industrial Zone: - Phone No.: My Xuan B1 Industrial Zone: - Phone No.: Contact person: Ms. Trang, cell phone no.: up to Phu My 1: the rental land area was already full. 5. Phu My 2: the rental land area was already full. 6. Phu My 3: 31

Dong Nai: 1. Bien Hoa 1 & 2: the rental land area was already full. 2. Nhon Trach 1: - Phone No.: Contact person: Ms. Hoi, cell phone no.: up to Nhon Trach 2: the rental land area was already full 4. Long Thanh Industrial Zone: - Phone No.: Contact person: Ms. Hoang, cell phone no.: years. 5. Amata IP: - Phone No.: Contact person: Ms. Thao. - up to Bau Xeo IP: - Phone No.: Contact person: Ms. Nhu, cell phone no.: years. 7. Giang Dien IP: - Contact person: Mr. Minh, cell phone no.: years. 8. Ho Nai IP: - Phone No.: (we cannot reach subject since no one picked up the phone). - up to 2048 (reference price from website). 9. Xuan Loc IP: - Phone No.: Contact person: Ms. Nhu, cell phone no.: up to Ong Keo IP: - Phone No.: Contact person: Ms. Trinh, cell phone no.: up to Song May IP: the rental land area was already full. 12. Thanh Phu IP: in construction. 32 Contact Industrial Park

Thank you and see you in Vietnam