1 MONTHLY REPORT August, 2009 Accounting, Finance and Investment Presenter: Daryl Chen Investment Dept. 28th Aug 2009

2 Outline I. I.Activities and Achievements for this month and Plans for next month II. July Financial report summary III. Economic indicators update and market news

3 Accounting 1. 1.Conducted the presentation on the payment guideline to all departments to ensure the company regulation on accounting to be complied strictly 2. 2.Kick-off the 2010 budget, a short meeting on the departmental expenditures have been arranged and the 2010 budget template has been released out for forecasting This month activities and Achievements

4 Next month plan Follow-up and support the departments on the budget 2010 The time line for the 2010 budget: Accounting Early of SepDepartments to submit the first draft budget Mid of SepAccounting to work with each departments on the draft budget End of SepDepartment to submit the final budget Mid of OctAccounting to consolidate and submit the master budget to BOD End of OctBOD to meet individual department Early of NovTo submit the 2010 budget to parent company

5 This month activities and Achievements Monthly tax reports : VAT, PIT, Withholding tax, invoices using New policy issue of cash payment of insurance payment Registration for MOF invoice which is used for other biz and apply for Certificate of income tax withhold Update and Notice to HR and Marketing Dept about PIT regulation and compose internal procedures for compliance Finance

6 Next month plan Cooperate with IT to upgrade Finance system – Linking data between accounting and Finance Process replacing cash payment of BM fund and Regional fund by bank payment (Visa card) Finance

7 News Circular 160/2009/TT-BTC issued date 12 August 2009-PIT Exemption 1- Salary, Wages : - -PIT exemption from Jan to June The time of payment : Latest 31 Dec Quarterly bonus: - -PIT exemption for Q1 and Q2 - -The time of payment : Latest 31 Dec Yearly bonus: - -50% bonus is non-taxable - -The time of payment : Latest 31 March Salary, Wages: - Non-taxable if payment from Jan to June 2009

8 Investment 1) 1)Following up international and domestic bond market, including economic indicators and bond trading activities. 2) 2)Acquire list of FMC key persons from parent company 3) 3)Transfer all the portfolio to IVB on August 12th. This month activities and Achievements

9 Next month plan 1. 1.Keep following the macro economy and bond market Prepare documents related to FMC key persons and file the application form to SSC Allocate time deposit tenor to meet cash flow needs in the future. Investment

10 II. Jul II. Jul 2009 financial income Trend of revenue and expense from Jan 09 to Jul 09 ( mil VND) YTD

11 Expense performance II. Jul II. Jul 2009 financial income ( mil VND) Sale expense Administration expense

12 Economic indicators III. Economic indicators  Domestic Demand Indicator -- Positive Consumption generally accounts for 64% of overall GDP. Domestic demand remains strong. Retail sales rose 20% yoy in July, compared with 21.4% increase in June Industrial output rose 7.6% in July from 8.2% in June GDP ,1441,484 Private consumption (% of GDP)63.5%63.3%64.9%64.6% Government consumption Gross fixed investment YoY

13 Economic indicators III. Economic indicators  Trade Balance –Neutral to Negative The trade balance slightly improved, where the trading deficit tighten to 1bn in July from 1.5mn in June. However, exports remained weak, falling 28% yoy as global demand (eg US, Japan, and Australia) struggled. JanFebMarAprMayJunJul Exports, % y/y Imports, % y/y Trade Balance, USD bn Leading markets 2008 % of total US20.6 Japan13.5 Australia8.1 China6.8

14 Economic indicators III. Economic indicators  CPI Pressure -- Negative Inflation fell to a five-year low of 3.3%(yoy) in July, reflecting declines in transportation and telecommunication costs, mainly due to the “base period” effect. However, monthly inflation remains elevated at 0.5% in July, unchanged from June, which shows four consecutive months growth from April Oil Price $70 USD/ Barrel CPI

15 Market News Ⅳ. Market News   Exchange rate: - -Commercial banks still quoted the exchange rate at the ceiling rate set by the SBV, commonly at 17,810 – 17, Black market: softly decreased 50 – 100 VND, around: 18,300-18,400 USD/VND rate   Trading band adjustment rumor - -Recommended by National Center for Socio-economic Information and Forecast (NCEIF) to expand the trading band to 6-7% ( vs 5% currently ) in order to boost export volume. => Still show signs of weakness of VND and lack of USD in banking system

16 Market News Ⅳ. Market News 1. 1.Money market: Deposit rate of VND -- and USD    VND ： Despite recent increase in VND time deposit rate, huge capital needs by banks may slow down due to oncoming end of loan subsidy. There is no incentive to attract more funds unless further extension is announced by government.   USD ： USD Deposit rate was slightly up because of insufficient USD in banking system. The average mobilizing rate is quoted as follows (source: SBV): The average mobilizing rate Currency Demand (% p.a.) 3 months (% p.a.) 6 months (% p.a.) 12 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 2H of 2009 due to following reasons ： 1.Heavy issuance ( Successful issuance is only 13% of auction) 2.CPI is set to rise, starting from Sep or Oct. 3.Rising ceiling rate of primary auction Market News Ⅳ. Market News 5y Bonds Across the tenors

18 Market News Ⅳ. Market News Update on the 4% loan subsidy programs of 1bio USD (equals to around VND 425 trillion of total loan size )   Remaining amount for programs is only around 30 trillion, which means Government needs to have another stimulus package to support economy and enterprises. Loan Subsidy ScheduleLoans by enterprises

19 Thanks for your attention ～～ The End ～～