Vietnam Content Bangkok Bank in Vietnam

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

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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 2008 -2011, consecutively • Hanoi Branch –Unit 3, 3 rd floor, International Centre – 17 Ngo Quyen, Hoan Kiem District – Hanoi, Vietnam – Tel: (84 -4)3 936 5903 – 8 • Ho Chi Minh Branch –G/F Harbour View Tower – 35 Nguyen Hue Boulevard, District 1 – HO Chi Minh City, Vietnam – Tel: (84 -8)3 821 4396 - 8 3

Vietnam Economic Indicator 2010 2011 2012 2013 (F) 2014 (F) 2015 (F) GDP Growth (%) 6. 78 5. 89 5. 03 5. 2 -5. 5 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 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 (%) 12 -15 17 -19 12 -15 9 -12 10 -13 Average Exchange Rate (USD/VND) 19, 500 21, 036 20, 850 -20, 950 21, 000 -22, 000 21, 500 -22, 500 -23, 500 Unemployment Rate (%) Sources: Vietnam State Bank, Ministry of Industry and Trade, Ministry of Planning & Investment, General Statistics Office, Reuters, World Bank, IMF, ADB

Vietnam Economic Indicator 2009 2010 2011 2012 Sep - 13 2013 (F) GDP 5. 32% 6. 78% 5. 89% 5. 03% 5. 14% 5. 2 -5. 5% CPI 6. 52% 11. 75% 18. 13% 6. 81% 6. 3% 7 -9% Sources: GSO, Reuters, World Bank, IMF, ADB 5 5

Vietnam Economic Indicator 2009 2010 2011 2012 Sep – 2013 (F) Export US$56. 6 bio US$71. 63 bio US$96. 3 bio US$114. 6 bio US$96. 5 bio US$129 -130 bio Import US$68. 8 bio US$84. 0 bio US$105. 8 bio US$113. 8 bio US$96. 6 bio US$132 -133 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

VND Depreciation (year-on-year) Year Vietnam Economic Indicator Country’s Rating Depre. Level 2007 0. 4% 2008 7. 7% 2009 5. 7% 2010 5. 5% 2011 7. 9% 2012 -1. 86% Jan-Sep, 2013 1. 3% Fitch (Jan 2013) S&P (Jun 2013) Moody’s (Sep 2012) ê B+ (FC) ê B+ (LC) ê BB- (FC) ê BB- (LC) ê B 2 (FC and LC bonds) ê B 1 (FC Country ceiling) ê Ba 2 (LC Country Ceiling) ê B 3 (FC Bank deposit ceiling) ê Ba 2 (LC Bank deposit ceiling) Status Stable - 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 2013. 7 - Sources: Reuters 7

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 USD 9 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 8

Reasons of VND Devaluation • Lack of confident of local people in VND (sentimental factor) • Black market • Gold • Huge Trade Deficit (around USD 11 -12 B/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 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 (2012 -2013) • Currency : Vietnam Dong (Oct 21, 2013) - SBV Base Rate: VND 21, 036/USD - Ceiling and Floor Rate: + or – 1% of official Rate: VND 21, 246/USD and VND 20, 826/USD - Inter-bank level: VND 21, 080 -21, 120/ USD - Free Market Rate: VND 21, 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 VND 15 million 10

Interest rate Items VND interest rates (3 mth) 2009 2010 2011 2012 Sep - 2013 (F) 12. 0% 12. 0 -14% 14. 0 -16. 0% 7. 0 – 11. 0% 5. 0 -8. 5% 6. 0 – 9. 0% VNIBOR Fixing Rates (2012 -2013) Interest rate) I. e. 3 mth as of Oct 21, 2013 %) per annum) USD n Fixed deposit interest rate 0. 25 -1. 25% n Loan interest rate 2. 5 -5. 0% ( VND 4. 0 -7. 0% 7. 5 -11. 0% Note: State Bank’s VND base rate = 9% Source: Reuters 11

Banking Services • Deposits) USD, VND( ü • Loans (USD, VND( ü ü ü • • • Current , Savings, Fixed 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 ü ü 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) Profit Repatriation • • • 13 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

Procedure for investment in Vietnam • • 14 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 90 M 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 Sources: Ministry of Planning & Investment 20

FDI in Vietnam Sources: Ministry of Planning & Investment 21

FDI in Vietnam Sources: Ministry of Planning & Investment 22

FDI in Vietnam Sources: Ministry of Planning & Investment 23

FDI in Vietnam Sources: Ministry of Planning & Investment 24

FDI in Vietnam Sources: Ministry of Planning & Investment 25

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

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

Investment’s General Information • Salary - - • 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 2012 -2013) - • Minimum salary stipulated by government for both local and FDI enterprises: VND 1. 65 - 2. 35 million or equivalent around USD 79 -113 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 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. : 094 99 84 666 - up to 2050. 2. Hiep Phuoc IP. - Contact person: Mr. Binh, cell phone no. : 0907 962 922 - 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. : 0650 3861868 - Contact person: Mr. Toan, cell phone no. : 093 88 68 788 - up to 2058. 2. My Phuoc IP: - Phone No. : 0650 3811777 (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 A 2 Industrial Zone: - Phone No. : 064 3899164 3. My Xuan B 1 Industrial Zone: - Phone No. : 064 3838423 - Contact person: Ms. Trang, cell phone no. : 0945 209 714 - 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

Contact Industrial Park • Dong Nai: 1. Bien Hoa 1 & 2: the rental land area was already full. 2. Nhon Trach 1: - Phone No. : 0612 215 360 - Contact person: Ms. Hoi, cell phone no. : 0984 098 066 - up to 2048. 7. Giang Dien IP: - Contact person: Mr. Minh, cell phone no. : 0903 037 589 - 45 years. 3. Nhon Trach 2: the rental land area was already full 8. Ho Nai IP: - Phone No. : 061. 3982039 (we cannot reach subject since no one picked up the phone). - up to 2048 (reference price from website). 4. Long Thanh Industrial Zone: - Phone No. : 061. 3514494 - Contact person: Ms. Hoang, cell phone no. : 0983 325 520 - 45 years. 9. Xuan Loc IP: - Phone No. : 0613 834 700 - Contact person: Ms. Nhu, cell phone no. : 0913 130 18 - up to 2056. 5. Amata IP: - Phone No. : 061. 3991007 - Contact person: Ms. Thao. - up to 2044. 10. Ong Keo IP: - Phone No. : 0612 215468 - Contact person: Ms. Trinh, cell phone no. : 0909 289 006 -up to 2058. 6. Bau Xeo IP: - Phone No. : 061. 3924377 - 3924690 - Contact person: Ms. Nhu, cell phone no. : 0933 050 167 - 46 years. 32 11. Song May IP: the rental land area was already full. 12. Thanh Phu IP: in construction.

Thank you and see you in Vietnam