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

2. We care for you wherever you are …
We pride ourselves on our long standing relationships with our customers and work together as business partners towards a common goal. Our branch in the Philippines continues with this tradition and it has enabled us to work closely together with the Filipino people.
We care for you wherever you are …

3. Bangkok Bank (Vietnam)
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
Hanoi Branch
Unit 3, 3rd 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)

4. Vietnam Economic Indicator
2010
2011
2012
2013 (F)
2014 (F)
2015 (F)
GDP Growth (%)
6.78
5.89
5.03
6-7
Import growth (%)
20.1
24.7
7.1
14-16
12-15
Export Growth (%)
25.5
33.3
18.3
12-14
10-13
Balance of Trade (USD Billion)
-12.4
-9.5
0.3
-2  -4
-8  -10
Unemployment Rate (%)
4.3
3.6
3.25
4 – 5
4 - 5
Inflation Rate (%)
11.75
18.13
6.81
7-9
8-10
Average Lending Interest Rate (%)
17-19
9-12
Average Exchange Rate (USD/VND)
19,500
21,036
20,850-20,950
21,000-22,000
21,500-22,500
22,500-23,500
Sources: Vietnam State Bank, Ministry of Industry and Trade, Ministry of Planning & Investment, General Statistics Office, Reuters, World Bank, IMF, ADB

5. Vietnam Economic Indicator
2009
2010
2011
2012
Sep - 13
2013 (F)
GDP
5.32%
6.78%
5.89%
5.03%
5.14% %
CPI
6.52%
11.75%
18.13%
6.81%
6.3%
7-9%
Sources: GSO, Reuters, World Bank, IMF, ADB 5 5

6. Vietnam Economic Indicator
2009
2010
2011
2012
Sep – 2013
2013 (F)
Export
US$56.6 bio
US$71.63 bio
US$96.3 bio
US$114.6 bio
US$96.5 bio
US$ bio
Import
US$68.8 bio
US$84.0 bio
US$105.8 bio
US$113.8 bio
US$96.6 bio
US$ bio
FDI (registered capital)
US$21.5 bio
US$18.6 bio
US$14.7 bio
US$13 bio
US$15.0 bio
> US$15 bio
FDI (Disbursement)
US$10.0 bio
US$11 bio
US$10.46 bio
US$8.6 bio
US$10-11 bio
Sources: GSO, MOIT, MPI, Reuters, World Bank, IMF, ADB 6 6

7. Vietnam Economic Indicator
VND Depreciation (year-on-year)
Country’s Rating
Year
Depre.
2007
0.4%
2008
7.7%
2009
5.7%
2010
5.5%
2011
7.9%
2012
-1.86%
Jan-Sep, 2013
1.3%
Level
Status
Fitch (Jan 2013)
B+ (FC)
B+ (LC)
Stable
S&P (Jun 2013)
BB- (FC)
BB- (LC)
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)
- 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 7 7

8. Strength and Weakness of Vietnam
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 8

9. 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

10. USDVND Foreign Exchange Rate (2012-2013)
Items
2009
2010
2011
2012
Sep
2013 (F)
USDVND official ceiling rates
18,479
19,500
21,036
21,246
21,400-21,600
USDVND Inter-bank market level
18,600-18,700
20,750
21,250
20,820-20,860
21,090-21,140
21,000-22,000
USDVND Foreign Exchange Rate ( )
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 10

11. VNIBOR Fixing Rates (2012-2013)
Interest rate
Items
2009
2010
2011
2012
Sep
2013 (F)
VND interest rates (3mth)
12.0% % %
7.0 – 11.0% %
6.0 – 9.0%
VNIBOR Fixing Rates ( )
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 11

12. Banking Services Deposits (USD, VND) Loans (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

13. Settlement system Profit Repatriation Cash settlement Bank Transfer
Cheque (not widely used because don’t have cheque clearing house)
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.

15. 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

16. Export - Import Markets & Products

17. Export Markets & Products
Sources: General Statistics Office

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

19. Major FDI in Vietnam

20. FDI in Vietnam 20
Sources: Ministry of Planning & Investment

21. FDI in Vietnam 21
Sources: Ministry of Planning & Investment

22. FDI in Vietnam 22
Sources: Ministry of Planning & Investment

23. FDI in Vietnam 23
Sources: Ministry of Planning & Investment

24. FDI in Vietnam
Sources: Ministry of Planning & Investment 24

25. FDI in Vietnam 25
Sources: Ministry of Planning & Investment

26. Major area for investment

27. Successful Thai Investor in Vietnam

28. 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

29. 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
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

30. 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

31. Contact Industrial Park
HCM:
1. Tan Tao IP.
- Contact person: Ms. Uyen, cell phone no.:
- up to 2050.
2. Hiep Phuoc IP.
- Contact person: Mr. Binh, cell phone no.:
- up to 2048.
3. 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 2058.
2. My Phuoc IP:
- Phone No.: (MKT Dept.)
- up to 2057.
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.:
3. My Xuan B1 Industrial Zone:
- Phone No.:
- Contact person: Ms. Trang, cell phone no.:
- up to 2048.
4. 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

32. Contact Industrial Park
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 2048.
3. Nhon Trach 2: the rental land area was already full
4. Long Thanh Industrial Zone:
- Phone No.:
- Contact person: Ms. Hoang, cell phone no.:
- 45 years.
5. Amata IP:
- Phone No.:
- Contact person: Ms. Thao.
- up to 2044.
6. Bau Xeo IP:
- Phone No.:
- Contact person: Ms. Nhu, cell phone no.:
- 46 years.
7. Giang Dien IP:
- Contact person: Mr. Minh, cell phone no.:
- 45 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 2056.
10. Ong Keo IP:
- Phone No.:
- Contact person: Ms. Trinh, cell phone no.:
-up to 2058.
11. Song May IP: the rental land area was already full.
12. Thanh Phu IP: in construction. 32

33. Thank you and see you in Vietnam