Vietnam

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 …

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 2008-2011, consecutively • Hanoi Branch • Unit 3, 3rd 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

4. Vietnam Economic Indicator 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 Sources: GSO, Reuters, World Bank, IMF, ADB 5 5

6. Vietnam Economic Indicator Sources: GSO, MOIT, MPI, Reuters, World Bank, IMF, ADB 6 6

7. Vietnam Economic Indicator VND Depreciation (year-on-year) Country’s Rating - 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 . - Sources: Reuters 7 7

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 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. Exchange rate USDVND Foreign Exchange Rate (2012-2013) • 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. Interest rate VNIBOR Fixing Rates (2012-2013) Interest rate(I.e. 3 mth as of Oct 21, 2013) (% per annum) USD VND • Fixed deposit interest rate 0.25-1.25%4.0-7.0% • Loan interestrate 2.5-5.0% 7.5-11.0% Note: State Bank’s VND base rate = 9% Source: Reuters 11

12. 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

13. Settlement system • 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 28 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

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: VND1.65 - 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 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 2012-2013) 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.: 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 A2 Industrial Zone: - Phone No.: 064 3899164 3. My Xuan B1 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

32. 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. 3. Nhon Trach 2: the rental land area was already full 4. Long Thanh Industrial Zone: - Phone No.: 061.3514494 - Contact person: Ms. Hoang, cell phone no.: 0983 325 520 - 45 years. 5. Amata IP: - Phone No.: 061.3991007 - Contact person: Ms. Thao. - up to 2044. 6. Bau Xeo IP: - Phone No.: 061. 3924377 - 3924690 - Contact person: Ms. Nhu, cell phone no.: 0933 050 167 - 46 years. 7. Giang Dien IP: - Contact person: Mr. Minh, cell phone no.: 0903 037 589 - 45 years. 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). 9. Xuan Loc IP: - Phone No.: 0613 834 700 - Contact person: Ms. Nhu, cell phone no.: 0913 130 18 - up to 2056. 10. Ong Keo IP: - Phone No.: 0612 215468 - Contact person: Ms. Trinh, cell phone no.: 0909 289 006 -up to 2058. 11. Song May IP: the rental land area was already full. 12. Thanh Phu IP: in construction. Contact Industrial Park 32

33. Thank you and see you in Vietnam