MONTHLY REPORT MONTHLY REPORT Mar, 2010Mar, 2010

Accounting, Finance and InvestmentAccounting, Finance and Investment

Presenter: Neva LinPresenter: Neva Lin

Investment Dept.Investment Dept.

2nd April 20102nd April 2010

Agenda

I. Activities and Achievements for this month and Plans for next month

II. 2009 Life insurance results

III. Economic indicators update and investment outlook

I. Activities and Achievements for

this month and Plans for next month

Accounting, Finance and InvestmentAccounting, Finance and Investment

1. Reviewed the Auditors’ report of 2009 2. Worked with IT on the Budget system –

phase 2. 3. Working on the profit center project to

determine the revenues and expenses at each branch office.

4. Working on the cost saving program/ 3B Golden mind project to encourage staff to contribute the valuable ideas in cost saving.

Accounting Activities

Accounting Plan

1. Continuously follow-up the budget performance system and support all department in their budget controlling.

2. Test the relevant reports on the profit center project depending on IT scheduled.

3. Seek BOD approval on the cost saving program/ 3B Golden mind project.

4. Quarter-end audit to be conducted by Ernst & Young.

Finance ActivitiesFinance Activities

1.Monthly tax reports : VAT ,CIT , Withholding tax ..

2.2009 Invoice finalization reports

3.2009 Tax Finalization reports : CIT ,PIT, Financial statement

4.Tax registration for new office Dong Nai,

5. Informing office address changing of Da Nang

Finance PlanFinance Plan

1.Cash management at Dong Nai branch

2.Follow up Insurance payment by ID and bank transfer project (Continue)

3.Follow up Auto pay project (Continue)

4.Deal with post office about premium collection service.

1. USD / VND time deposit re-investment to match cash flow needs in the future.

2. Following up international and domestic bond market, including economic indicators and bond trading activities.

3. Seek opportunity to invest government bond

Investment ActivitiesInvestment Activities

Investment Investment planplan

1. Keep following the progress of fund management company with ICC.

2. Start investment project ─ schedule time and topic about financial market and do presentation.

3. Following up international and domestic bond market, including economic indicators and bond trading activities.

II. 2009 Life insurance results

Accounting, Finance and InvestmentAccounting, Finance and Investment

2009 New Policy2009 New Policy

Data source: Insurance Association (VIA)

2009 Policy Inforce2009 Policy Inforce

Data source: Insurance Association (VIA)

2009 Gross Premium 2009 Gross Premium (VND bn)(VND bn)

Data source: Insurance Association (VIA)

III. Economic indicators update and investment outlook

Accounting, Finance and InvestmentAccounting, Finance and Investment

Local NewsLocal News Fitch put Vietnam rating on watch negative- Deterioration in domestic confidence in the local

currency. Currency and deposit outflows from banking system.

- Lack of transparency in the data on foreign reserves (abnormal large error & omissions).

- Wider current account deficit.

Rating Rating Watch

Vietnam's Long-term local currency Issuer Default Rating (IDR)

BB- Negative

Long-term foreign currency (IDR) BB- Negative

Short-term foreign currency (IDR) B Negative

Country Ceiling BB- Negative

Feb CPI -rising trend since Aug 09

- high consumption demand for food and beverages around lunar new year

- Inflation of 2mths 2010 was 3.35%, ~ 50% of target 7% for year 2010 but lower than 3.6% of average CPI from 2003-2009

Outlook: CPI is estimated to increase 1.4-1.6% (MOM)

Vietnam CPI

%m/m %y/y

CPI 1.96 8.46

Food & foodstuff (40%) 3.09 8.34

CPI for the first 2mths

CPICPI

Industrial Output:Industrial Output: Feb decline- Feb industrial output was 50.9 trillion VND , declined 19% MoM &

13.6% YoY.- The long lunar new year holiday had paused the production.

For 2mths 2010:- the industrial output achieved 114 trillion VND, approached 15%

target of 2010 & increased 14% than 2009.

Outlook: With the recovery of global economy, industrial production is expected to increase gradually.

Industrial production (YoY)

ForeignForeign ExchangeExchange Market Quotation: - The official exchange rate

is at 18,544 VND/USD- The commercial bank is at

19,000~19,100 VND/USD - The black market is

19,280~19,300 VND The gap between official

and black market is narrow after lunar new year VND depreciation.

Outlook:

VND/USD exchange rate per dollar

3.4%17,491-18544

5.4%17,034-17961

The exchange rate still show signs of weakness of VND, because high inflation expectation and trade deficit.

Deposit RatesDeposit Rates VND:- Deposit rate for VND over 1 month is 10.49% which is the

regulation ceiling although some banks provide extra bonus. USD:- Individual deposit rate is increasing. However, corporate

deposit rate keeps in 1% due to ceiling rate. Outlook:

Deposit rate will maintain high, unless regulation change.

Type Currency Time 3 mths 6 mths 12 mths

Group of state- owned commercial banks

VND 2.7 10.1 10.15 10.49

USD (Cop) 0.3 1.0 1.0 1.0

USD (Ind) 0.28 2.55 2.8 3.5

Group of joint-stock commercial banks

VND 3.3 10.25 10.4 10.49

USD (Cop) 0.3 1.0 1.0 1.0

USD (Ind) 0.63 3.75 4.15

The average mobilizing rate is quoted as follows (source: SBV):

8

8.5

9

9.5

10

10.5

11

11.5

12

12.5

13

3/2/09

4/2/09

5/2/09

6/2/09

7/2/09

8/2/09

9/2/09

10/2/09

11/2/09

12/2/09

1/2/10

2/2/10

3/2/10

2yr 5yr 10yr

Interest rate is on the rising trend - Government bond issuance plan for 2010 is quite high

(around 56,000 bio VND).- Base rate expect on the up-trend.- CPI is also on the rising.- Market transactions focus on short-term bonds. Outlook:

Interest rate is still increasing, which is favorable for interest re-invest in the future.

Bond MarketBond Market

Market transaction tenor classification

Govt Bonds Yield Trend

Thanks for your attention

～～ The End ～～