1 MONTHLY REPORT Nov, 2009 Accounting, Finance and Investment Presenter: Neva Lin Investment Dept. 27th Nov 2009

2 Outline I. I.Activities and Achievements for this month and Plans for next month II. Financial report of Oct III. Economic indicators update and investment outlook

3 Accounting 1. 1.The final version of the 2010 budget has been released out to parent company for approval Reviewed the YTD budget performance of all departments; put on the alert to the department whose expenses were over and reminded to seek additional expenses approval by BOD Reviewed all balance sheet accounts to ensure the outstanding balances are reasonable Worked with IT on the Budget system – phase 2. This month activities and Achievements

4 Next month plan Accounting 1. 1.Perform the year-end closing for the 2009 reporting Preparing for the year-end audit from Erns & Young Working on the profit center project. Following that, a geographic area or a branch office which is treated as a distinct entity enabling revenues and expenses to be determined so that profitability can be measured. Hence, management can evaluate easily whether the profit unit is meeting its own direct expenses and how much it is contributing to the company overhead.

5 This month activities and Achievements 1. 1.Monthly tax reports : VAT, PIT, Withholding tax, invoices using, 2. 2.Cooperate with IT to enhance Finance System – Auto Cash and Receive voucher printing 3. 3.Accounting and Finance Legal Compliance procedure Finance

6 Next month plan 1. 1.Contact with tax Dept to get Certificate of tax withhold due to PIT Finalization year Open Visa Debit card for using BM fund and regional fund 3. 3.Work with Sacombank about Auto pay premium fee Finance

7 Investment 1. 1.Consolidated all application documents for fund management company and filed to SSC VND time deposit re-investment to match cash flow needs in the future Prepare documents for Auditing Department to general auditing. This month activities and Achievements

8 Next month plan Investment 1. 1.Keep following the progress of fund management company. After receiving approval from SSC, operational check preparation will be started soon Following up international and domestic bond market, including economic indicators and bond trading activities.

Oct Actual Financial Income Trend of revenue and expense from Jan to Oct 09 ( mil VND) YTD

10 Expense performance From Jan to Oct 2009 Financial income ( mil VND) Administration expense Sale expense Budget Actual Budget

11 I. Local News : stimulus package update Since running the 4% interest subsidy in Feb 09, the MoM credit growth has increased significantly. The YTD change is 33% which is above 30% official target for the year. Banks are required to focus on lending to manufacturing and agricultural sectors. Credit Growth and Fund Mobilization YTD chg MoM chg

12 I. Local News : Second stimulus package  Loan subsidy program –Medium-long term loans for investment will be extended until the end of 2010 –Short term loan will be applicable for export- oriented labor intensive corporate until 1Q2010 –The loan subsidy program will be reduced from 4% to 2%  Corporate will also be allowed to defer tax payments for 1Q10 => Government has approved in the monthly cabinet meeting but is waiting for appoval of National Assembly

13 II. Economic indicators  Higher pressure on CPI With international food and oil commodity prices rising and domestic demand picking up, the inflation pressure is getting higher. YoY inflation rate seems modest increase, but QoQ suggests CPI heading in one direction in the next few months. Oil price YoY & QoQ CPI

14 II. Economic indicators  Trade Balance – Neutral to Negative Trade deficit has widen to -22.7% of GDP in Oct Policy-driven macro rebound is leading to pressure of trade deficit. A V-shape rebound in imports led by stimulus measures. Exports remained weak as global demand struggled. YOY % Change of Export & Import Trade Balance Trend

15 Economic indicators   Exchange rate: FX is still over- demanded. FX quoted by Commercial banks remains at the ceiling rate of SBV commonly at 17,870-17,877. Black market quotation was 19,550-19,750, still in the depreciation trend for Increase 5% official rate Widening trading band to 5%   This Wednesday SBV made a one time increase 5% of official rate to 17,961, narrow the trading band dollar against the dong to 3% from the current 5%. => Still show signs of weakness of VND and lack of USD with the approach of year end VND.

16 II. Investment Outlook   Money market: Deposit rate of VND  and USD → /↑ Deposit rate for VND generally increased recently because of huge capital needs by banks to support loan subsidy policy. This trend can not be easily reversed  Short term VND TD is preferred USD: USD Deposit rate was slightly up because of insufficient USD in banking system especially when year end coming. The average mobilizing rate is quoted as follows (source: SBV): The average mobilizing rate Currency Demand3 months6 months12 months (% p.a) Group of state- owned commercial banks VND USD Group of joint-stock commercial banks VND USD

17  Interest rate of government bonds is set to rise in 4Q of 2009 due to following reasons ： 1.Heavy issuance (shortage of tax revenue). Sizeable portion of government bonds are due to mature next year 2.Depreciation of VND and expectation of rising CPI force government to increase benchmark base rate (8% now) => Favorable direction for interest re-invest in the future. II. Investment Outlook Government Bond Maturity Profile Govt Bonds Yield Trend

18 Thanks for your attention ～～ The End ～～