Table of contents - Vingroup Reports/0_2014 Vingroup/VIN_AR… · TRANSCEND OVERVIEW 009 Key...

TRANSCEND OVERVIEW

009 Key figures for 2014

010 Message from the Chairman of the Board of Management

012 2014 Titles and Awards

PIONEERING CORPORATE PROFILE

018 Vision, Mission and Core Values

020 Corporate Milestones

024 Organizational Structure

026 Board of Management

028 Supervisory Committee

028 Executive Committee

032 Businesses

GROWTH OPERATIONS IN 2014

042 Operational Highlights

044 Financial Summary

046 About Vingroup’s shares in 2014

048 Shareholder Information

050 Investor Relations

FORWARD-LOOKING MANAGEMENT AND GOVERNANCE

056 Report of the Board of Management

060 Report of the Supervisory Committee

061 Report of the Executive Committee

065 Corporate Governance Report

066 Development Strategy

068 Risk Management

070 Human Resource Management

074 Corporate Culture

TIMELESSNESS SUSTAINABLE DEVELOPMENT

080 Sustainable Development Strategy

081 Economic Growth

082 Social Responsibility

083 Environmental Programs

TRANSPARENCY CONSOLIDATED FINANCIAL STATEMENTS

090 VAS Consolidated Financial Statements

170 Summary of IFRS Consolidated Financial Statements

176 Reconciliation between VAS and IFRS Consolidated Income Statements

Table of contents

Tập đoàn Vingroup | Báo cáo thường niên 2014 Tập đoàn Vingroup | Báo cáo thường niên 2014

Vinhomes Central ParkThe Landmark81 is an 81-floor tower, the tallest building in Vietnam

“It always seems impossible until it’s done.” – Nelson Mandela

009 Key figures for 2014

010 Message from the Chairman of the Board of Management

012 2014 Titles and Awards

OVERVIEW

Vingroup Joint Stock Company | Annual Report 2014008

Overview

Vingroup Joint Stock Company (“Vingroup” or the “Group”) is one of the largest listed companies by market capitalization in Vietnam. Vingroup focuses on long-term sustainable growth by targeting high-quality real-estate development and hospi-tality. The Company has two principal brands: Vincom and Vinpearl.

After more than a decade of development, Vincom is Vietnam’s leading real estate brand with high-end shopping, office and apartment developments in Vietnam’s largest cities. Vincom is also leading the trend towards sustainable, luxury urban townships in Vietnam. Vinpearl is the largest and most recog-nized Vietnamese hospitality and tourism brand featuring amusement parks, golf courses hotels, resorts, and beachfront villas rated five or more stars.

In January 2012, Vinpearl JSC merged with Vincom JSC to form Vingroup Joint Stock Company.

The Group has developed a diversified portfolio across six busi-ness segments: Property: Vinhomes – Luxury Apartments & Villas, Vincom and Vincom Mega Mall – Vincom shopping malls, Vincom Office – offices for lease, Hospitality and entertain-ment: Vinpearl Resort and Vinpearl Luxury – five-star resorts and upscale resorts, Vinpearl Land – amusement parks and family entertainment centers, Vinpearl Premium – premium resorts

and villas, Vinpearl Golf Club. Retail: VinMart – Supermarkets, VinMart+ – Convenience stores, VinFashion, VinDS – Chain of speciality retail stores, VinPro – Electronics and appliances, and Adayroi – Comprehensive E-commerce.

In addition to these three business segments, Vingroup participates in other segments aimed at improving the quality of life for the Vietnamese people. Among these segments are Healthcare: Vinmec – Quality healthcare services, Education: Vinschool – Quality education, and Agriculture: VinEco – Trusted quality source of food and Vingroup’s newest business sector.

Vingroup continues to pioneer and lead consumer trends in all its businesses through offering quality products and introducing a modern life-style experience to the Vietnamese consumers.

The Group is proud to set the standard for private enterpris-es, built by Vietnamese people and marked by traditional Vietnamese characteristics of intelligence, daring and ambition.

As a leading private group that successfully balances sustain-able and dynamic development in Vietnam, Vingroup has the potential to achieve leadership at the regional and internation-al levels.

Overview

TOTAL OWNERS’ EQUITY

NET REVENUE

MARKET CAPITALIZATION

PROFIT BEFORE TAX

students attended Vinschool in the first

academic year

employees

Over

visitors a year to Vinpearl Land

TOTAL ASSETS

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Key figures for 2014

Vingroup Joint Stock Company | Annual Report 2014 Vingroup Joint Stock Company | Annual Report 2014010 011

Message from the Chairman of the Board of Management

Dear Valued Shareholders,

On behalf of the Board of Management (BOM) and Executive Committee, I would like to extend our warmest greetings and wish you health, happiness and success!

Ladies and Gentlemen,

In the past few years, the global and domestic economies encountered a series of challenges. Thousands of enterprises have struggled with the possibility of business closure while hundreds of thousands of workers lost their jobs. It certainly has been a tough time for business.

Despite the economic downturn, Vingroup has met and overcome these challenges. At the end of 2013, foreseeing the economic fluctuations and aiming to strengthen the internal organization of the company, the Group’s Board of Management and management team made the decision to restructure our management system following the theme “Transform to Succeed.” In 2014, Vingroup successfully

completed the decentralization of its operational model into management by business sector P&Ls.

The watershed transformation has helped Vingroup overcome the difficulties and challenges to expand into new areas. The Group has established five core business sectors: Property, Hospitality and Entertainment, Retail, Healthcare, and Education.

Our core business sectors together create an ecosystem of complementary and synergistic operations. This business ecosystem sets a new standard in the market with the mission “to create a better life for the Vietnamese people.”

In 2014, after reorganizing the company structure, Vingroup also executed its aggressive growth plan to expand its opera-tions into key cities nationwide.

In Ho Chi Minh City, Vingroup broke ground on Vinhomes Central Park, one of the most advanced luxury urban commu-nities in Vietnam and the largest mixed-use project Vingroup has created to date.

In Phu Quoc, Vingroup’s new resort complex, Vinpearl Phu Quoc, has become a growth engine for local tourism.

In Quang Ninh, the Vincom Ha Long mall commenced oper-ations in late 2014 and has become the shopping and enter-tainment destination for Ha Long and surrounding areas. This project marked the launch of Vingroup’s national retail mall expansion strategy.

Simultaneously, Vingroup launched supermarket chain VinMart and convenience store chain VinMart+ on a nationwide basis. The Group also introduced other key businesses including VinFashion (fast fashion for Vietnamese), VinPro (electronics and appliances), VinDS (a chain of specialty retail stores), and Adayroi (comprehensive e-commerce).

Vinmec high quality healthcare services and Vinschool high quality education also recorded impressive growth with the start of construction on four new hospitals and the opening of Vinschool with enrollment of 6,300 K-12 students.

With pioneering yet practical steps towards sustainable devel-opment, Vingroup in 2014 achieved record revenue of VND27.7 trillion, a 51% increase over 2013. This was the highest revenue in the Group’s history and puts Vingroup in the exclusive ranks of Vietnamese companies with revenues over a billion USD.

Also in 2014, Vingroup created more than 8,500 new jobs, increasing the total number of employees to 17,000. Vingroup is now ranked the best place to work in the property, architec-ture, and design sectors, and similarly tops the list in the invest-ment, accounting, auditing, pharmacy, healthcare service and biotechnology sectors. Vingroup has the confidence to lead the changes now taking place in its business sectors.

The company is proud to have pioneered a new standard of

living in Vinhomes urban communities, a new standard in shopping and entertainment at Vincom shopping malls, new opportunities to enjoy Vinpearl’s 5-star-and-above upscale resorts, world-class healthcare services at Vinmec, and high-quality education at Vinschool.

In 2015, Vingroup will enter the agriculture business under the VinEco brand. VinEco will provide customers with a trusted quality source of food for current and future generations of Vietnamese while leveraging Vietnam’s advantages in agricul-tural products for export to the global market.

Economic indicators point to progressive stabilization and recovery, and the ASEAN Economic Community (AEC) will be established in 2015. Vingroup’s key tasks this year are to effectively manage the P&Ls of our operating businesses, to leverage all of our resources to accelerate the development of new projects and to keep to our schedule for new openings. Vingroup is determined to achieve a breakthrough year with major projects now being developed in Hanoi, Ho Chi Minh City, Nha Trang, Can Tho, and Ha Tinh.

The Group will continue to expand the coverage of its ecosystem of Vingroup products and services throughout Vietnam with six core businesses: Property, Hospitality and Entertainment, Retail, Education, Healthcare, and Agriculture. Key goals for 2015 are to have a breakthrough year, to maintain the leading position in our core business sectors, and to continue identifying new and promising businesses to enter. All of Vingroup’s efforts are to realize the mission “to create a better life for the Vietnamese people.”

In addition, Vingroup will continue to strengthen operations by implementing a major overhaul of management systems to increase operational efficiencies in order to ensure sustainable development in the coming years.

On behalf of the Board of Management, I would like to express our gratitude to you for your trust, support and partnership. We believe that through our carefully chosen strategies, Vingroup will achieve our goals in 2015 and the years to come, maintaining our market-leading position as one of the premier companies in the region, while protecting and enhancing the long-term interests of shareholders and making even greater contributions to society.

Sincerely yours,

Message From the Chairman of the Board of Management

Chairman of the Board of Management Pham Nhat Vuong

Our key tasks in 2015 are to leverage all of our resources to accelerate the development of new projects, to keep to our schedule for new openings, and to effectively manage our operating businesses.

Overview


2014 Titles and Awards

2014 Titles and Awards

“Top 100 ASEAN Companies 2014”

by Standard and Poor’s (S&P), one of the world’s three most respected independent credit rating firms.

“Best Retail Developer in Vietnam”

by Euromoney, for the second time.

“Region’s Best Borrower – Vietnam”

by FinanceAsia.

“Best Retail Development in Vietnam” for Vincom Mega Mall Royal City

by Asia Pacific Property Awards 2014.

“Largest Private Sector Corporate Taxpayer”

by the V1000 list, which honors outstanding enterprises making major contributions to the State Budget of Vietnam, released by Vietnam Report JSC in collabora-tion with the Tax Review Magazine, the General Department of Taxation, and online newspaper VietNamNet.

“Vietnam Excellent Brand” – 7th conse-cutive year

by Vietnam Economic Times in collaboration with Vietnam Trade Promotion Agency (Ministry of Trade).

“Best Developer in Vietnam”

by South East Asia Property Awards 2014.

“Top Ten Five-star Hotels 2014” for Vinpearl Resort Nha Trang – 6th

consecutive year

by Vietnam Tourism Awards 2013, Vietnam National Administration of Tourism, Ministry of Culture, Sports and Tourism and Vietnam Tourism Association.

Overview


Vinpearl Premium Da NangLocated at the most prime location of Non Nuoc beach

A great location still needs vision to be a prime destination.

018 Vision, Mission and Core Values

020 Corporate Milestones

024 Organizational Structure

026 Board of Management

028 Supervisory Committee

028 Executive Committee

032 Businesses

CORPORATE ideNTiTy


Corporate Identity Vision, Mission and Core Values

Vision, Mission and Core Values

VISION

True to its pioneering ambition, Vingroup aims to consolidate and extend its lead among private, multi-sector businesses in Vietnam and the region, and to establish its reputation as an international brand.

Vingroup also aspires to build a brand that projects Vietnam’s national pride to the international community.

MISSION

Market: To provide unique, creative, premium products and services of outstanding quality that meet international stan-dards and exceed customer expectations while reflecting local tastes and upholding Vietnamese cultural values.

Shareholders and Partners: To uphold the cooperative spirit of mutual development and to commit to becoming the “Number One Companion” of our partners and shareholders by creating sustainable value over the long-term.

Employees: To build a professional, creative, dynamic, and humane work environment, providing all employees oppor-tunities for career advancement based on their skills and contributions.

Society: To demonstrate corporate social responsibility and national pride by harmonizing corporate benefits with commu-nity contributions.

CORE VALUES: CREDIBILITY – INTEGRITY – CREATIVITY – SPEED – QUALITY – HUMANITY

Credibility: Vingroup vigorously protects its Credibility as one would protect one’s own honor. The Company is always fully prepared to execute its plans and spares no effort towards meeting its goals.

Integrity: Vingroup considers Integrity a foundation of its busi-ness. We comply fully with the law and maintain the highest level of professional and social ethics. Customers come first.

Creativity: We value creativity highly as a source of leverage in our development, and uphold the spirit “dare to think, dare to do” aimed at building an organization eager to learn.

Speed: Vingroup considers speed and efficiency in every activity as a guiding principle. We practice “fast decision – fast investment – fast deployment – fast sales – fast change and quick adaptation.”

Quality: The Group operates under the principle – Best People – Best Products and Services – Best Life – Best Society.

Humanity: Vingroup develops the human spirit by valuing employees as our most important resource, creating the basis for fairness, integrity, unity and strength.

SLOGAN

Vingroup – Where the Best Gather and Grow

• Vingroup is where talented people meet and work together to achieve the common goals of success and social development.

• Vingroup’s people are ambitious, highly talented and qualified in their respective fields.

• All members of the Vingroup family are treated equally, given opportunities and placed in the most favorable conditions to maximize their individual talents.

• The Group aims to build the Best People, the Best Products and Services, the Best Life, and the Best Society.

LOGO

The Vingroup logo shows a bird flying towards the sun, representing our strong desire to reach new heights and our determination to achieve great success.

The bird’s wings are in the shape of the letter V to stand for Vietnam and Vingroup’s national pride, as well as for victory – a goal that Vingroup continuously strives to achieve.

The five stars below the bird represent Vingroup’s five-star standard criteria and principles.

The two colors red and yellow are from Vietnam’s national flag, expressing Vingroup’s pride in Vietnamese identity, spirit and intelligence.


Corporate Milestones

MarchThe Vinpearl cable car linking Phu Quy Pier and Hon Tre Island (3,320 meters in length) was launched.

The Company also opened Vinpearl Resort Nha Trang, raising the total number of five-star guest rooms to 485.

In addition, Vingroup successfully organized the first Miss Vietnam World at Vinpearl Nha Trang, thus establishing its reputation as a major destination for beauty contests and events.

Vinpearl Land was opened, turning formerly arid Hon Tre Island into a luxury tourist destination – a symbol of the rapid growth of tourism in Nha Trang, Khanh Hoa in particular and Vietnam in general.

The Company successfully organized and hosted the Miss Vietnam 2006 at Vinpearl Land.

JulyHon Tre Tourism and Trading Limited Liability Company (since renamed Vinpearl JSC) was estab-lished in the coastal city of Nha Trang, Khanh Hoa province.

MayVietnam General Commercial JSC (since renamed Vincom JSC) was founded with initial charter capital of VND196 billion.

The five-star Vinpearl Resort Nha Trang commenced operation.

NovemberVincom Ba Trieu (Towers A and B) was launched to introduce the modern shopping experience to the Capital.

JulyVingroup officially listed its shares on the Ho Chi Minh City Stock Exchange under the ticker “VIC.”

2001 2002 2003 2004 2006 2007

History

Vingroup Joint Stock Company (JSC) was established through the merger of two companies: Vincom JSC and Vinpearl JSC in January 2012.

Vinpearl JSC, formerly known as Hon Tre Tourism and Trading Investment and Development Limited Liability Company, was established on 25 July 2001 in Nha Trang, Khanh Hoa province and primarily engaged in the resort, tourism, hospitality and recreation sectors. The Company’s portfolio includes projects in popular tourism destinations throughout Vietnam such as

Ha Long, Khanh Hoa – Nha Trang, Da Nang, Binh Dinh and Phu Quoc.

Vincom JSC, formerly known as the Vietnam General Commercial JSC, was founded in Hanoi on 3 May 2002. Its operations are focused on large-scale mixed-use development, sales and management and include shopping malls, offices, and luxury apartments and villas. The Company has developed large-scale shopping complexes in major cities across the country, including Hanoi, Ho Chi Minh City, and Ha Long.

Corporate Identity Corporate Milestones


AugustVingroup opened the retail component of Vincom Ba Trieu Tower C.

Fourth quarterVingroup completed construction and handed over luxury apart-ments at Vincom Ba Trieu.

It became the first Vietnamese company to successfully issue USD100 million of convertible bonds on the Singapore Exchange (SGX).

JanuaryVingroup became a foundation member of the World Economic Forum (WEF).

AprilVingroup entered the Vietnamese education sector with Vinschool, a school system extending from kindergarten to high school.

MayA consortium led by Warburg Pincus, a leading global private equity firm focused on growth capital, invested USD200 million in a strategic partnership with Vincom Retail, a subsidiary of Vingroup, to substantially expand the group’s commer-cial property business. Acquisition International recognized this investment as “Real Estate Deal of the Year 2013.”

JulyVingroup opened Vincom Mega Mall Royal City, Asia’s largest underground combined entertainment and shopping complex.

JulyVingroup broke ground for one of the most modern and luxurious urban areas in Vietnam – Vinhomes Central Park in Ho Chi Minh City. Vingroup also announced its strategy to expand Vinmec into a network of ten hospitals throughout the country over the next five years and to establish the Vinmec Medical University in 2015.

SeptemberVingroup was honored with four prestigious awards:

“Best Retail Developer in Vietnam” from Euromoney

“Top 100 ASEAN Companies 2014” from Standard and Poor’s (S&P)

“Region’s Best Borrower – Vietnam” from FinanceAsia

“Vinpearl Resort Nha Trang – One of the Top 10 Five-star Hotels 2014” from Vietnam Tourism Awards 2013.

Vinschool K-12 school opened at Times City with 6,300 students from kindergarten to high school.

OctoberVingroup launched the VinMart and VinMart+ brand.

Vincom Ha Long opened, increas-ing the number of shopping malls under the Vincom brand to a total of six.

AprilVingroup opened Vincom Dong Khoi in Ho Chi Minh City (Vincom B).

Vingroup successfully hosted the second Miss Vietnam World and Miss Earth at Vinpearl Resort Nha Trang.

NovemberVingroup successfully issued a USD200 million interna-tional bond. FinanceAsia named this transaction “Best Vietnam Deal 2013,” whilst IFRS Asia called it “Vietnam Capital Markets Deal of the Year 2013.”

DecemberVingroup opened Vincom Mega Mall Times City, new Vinschool facilities, and Vinmec International Hospi-tal at Times City.

During 2013, Vingroup delivered thousands of apartments at Vinhomes Royal City and Vinhomes Times City.

NovemberVinpearl Phu Quoc, a five-star hospitality complex was officially opened after only over ten months of construction – a record performance for a property of this size and complexity.

VinMart and VinMart+ opened their first nine supermarkets and convenience stores.

Vingroup opened for sale Vinhomes Nguyen Chi Thanh – Ha Noi, a new mixed-use project in the heart of the Capital.

DecemberVingroup was ranked as the Largest Private Sector Corporate Taxpayer in Vietnam based on 2013 financial results.

Vingroup broke ground for the 81-floor Landmark81 in the urban area Vinhomes Central Park. The Landmark81 is expect-ed to be over 380 meters tall, setting a new record for the tallest building in Vietnam.

Vingroup opened Almaz, a luxurious convention, restaurant, shopping and entertainment center in Vinhomes Riverside.

End of December 2014: Vingroup announced a new premium resorts and villas brand, Vinpearl Premium, with locations at Nha Trang, Phu Quoc and Da Nang, and also announced the sales of hundreds of Vinpearl Premium villas.

MayThe five-star Vinpearl Luxury Nha Trang and Vietnam’s first island golf course Vinpearl Golf Club – Nha Trang were opened simultaneously, marking the completion of the key components of Vinpearl Nha Trang, the Company’s first hospitality complex, in development and operation for over a decade.

JulyVacation resort Vinpearl Premium Da Nang opened as Vinpearl’s new resort.

DecemberVincom Long Bien commenced operation at Vinhomes Riverside.

At the same time, Vingroup relocated its Head Office to the Vinhomes Riverside ecological area, located in Long Bien district, Hanoi.

JanuaryThe merger with Vinpearl JSC raised total charter capital to approximately VND5.5 trillion and a development strategy was approved for the Group to be operated under the new entity: Vingroup JSC.

Vingroup officially launched the Vinmec brand and put into operation Vinmec International Hospital.

April – JulyA successful issuance of USD300 million of international convertible bonds listed on the Singapore Exchange. FinanceAsia recognized this as the “Best Vietnam Deal 2012.”

OctoberVincom A Ho Chi Minh City – a luxury retail, food and beverages complex, commenced operation. Subsequently, Vingroup’s full interest in the project was sold and recognized in 2013.

NovemberVingroup was honored as “Best Developer – Vietnam” by Euro-money and Vinhomes Riverside was honored with “Best Villa Development – Vietnam” at the Southeast Asia Property Awards 2012 in Singapore.

2009 2010 2011 2012 2013 2014

Corporate Identity Corporate Milestones

Corporate Milestones (cOnt.)


VinEcom LLC

VinPro LLC

VinDS LLC

VinGS General Services Trading LLC

ANNUAL GENERAL MEETING

EDUCATION AGRICULTURE

Board of ManagementChairman

PHAM NHAT VUONG

CEO

DUONG THI MAI HOACOUNCILS

SPECIALIZED COMMITTEES

SUPERVISORY COMMITTEE

PROPERTY HOSPITALITY & ENTERTAINMENT RETAIL HEALTHCARE

MARKETING DEPARTMENT

SHAREHOLDER & INVESTOR RELATIONS

DEPARTMENT OF PUBLIC RELATIONS

INVESTMENT DEPARTMENT

HUMAN RESOURCE DEPARTMENT

LEGAL DEPARTMENT

FINANCE DEPARTMENT

INFORMATION TECHNOLOGY DEPARTMENT

PLANNING DEPARTMENT

RISK MANAGEMENT DEPARTMENT

PROJECT SUPERVISORY & CONSTRUCTION DEPARTMENT

INTERNAL SUPERVISORY DEPARTMENT

BUSINESS SUPERVISORY DEPARTMENT

TENDERING & PROCUREMENT DEPARTMENT

SUPPLY CHAIN DEPARTMENT

INTERNAL SECURITY & FIRE DEPARTMENT

VinEco Agricultural Investment Development

and Production LLC

Vinhomes Vinpearl JSC

Vinpearl Land Amusement LLC

Vinhomes 1 Real Estate Trading LLC

Vinhomes 2 Real Estate Trading LLC

Vinhomes Property Leasing LLC

Vinhomes Property Management LLC

Vinpearl Hotel Management Company

Vinpearl Golf Course Management

Vincom Retail JSC

Vincom O�ce LLC

VinMartSupermarket JSC

VinFashion JSC

Vinmec International General Hospital JSC

Vinmec Medical University

Vinschool Kindergarten System

Vinschool Multi-Level Education System

Vincom Construction LLCs

Vincom Security LLC

Organizational Structure

Organizational Structure

Corporate Identity


Board of Management

Chairman of the Board of Management

Mr. Pham Nhat Vuong

Mr. Pham Nhat Vuong was appointed to the BOM in May 2002 and elected Chairman in November 2011. He has a long track record as an entrepreneur both inside and outside Vietnam, reflected in his establishment and development of the Group’s core businesses, including two initial brands Vincom (the leading brand in real estate) and Vinpearl (the leading brand in tourism, hospitality and recreation). He continues to develop an ecosys-tem including quality products and services of Vingroup with the mission “to create a better life for the Vietnamese people.”

Prior to the Group’s establishment in 2002, he was the founder and honorable Chairman of Technocom Limited Company (Ukraine) from 1993 to 2009. He graduated with a bachelor’s

Board of Management

degree in Geological Economic Engineering from Moscow Geology University in Russia in 1992.

In 2012, he was recognized as Vietnam’s first billionaire by Forbes Magazine, and continues to maintain this sole position in 2013 and 2014.

The Group believes its growth and development have bene-fited significantly from Mr. Pham Nhat Vuong’s leadership and influence.

The Board of Management (BOM) is appointed at the Annual General Meeting (AGM) and entrusted with the full power to exercise all rights and responsibilities on the Group’s behalf except those under the jurisdiction of the AGM. The BOM comprises ten members with the following rights and duties:

• Deciding the Group’s development and business plans and finalizing the annual budget.

• Establishing operational goals pursuant to the strategic goals approved by the AGM.

• Reporting to the AGM on the Group’s business perfor-mance, planned dividends, financial statements, business strategies and general business conditions.

• Developing the Group’s organizational structure and oper-ational rules.

• Other rights and duties in accordance with statuto-ry regulations, the Group Charter and resolutions of the AGM.

Current Members of the BOM

01. Mr. Pham Nhat Vuong – Chairman of the BOM

02. Ms. Pham Thuy Hang – Vice Chairwoman of the BOM

03. Ms. Pham Thu Huong – Vice Chairwoman of the BOM

04. Ms. Nguyen Dieu Linh – Vice Chairwoman of the BOM

05. Ms. Vu Tuyet Hang – Vice Chairwoman of the BOM

06. Mr. Le Khac Hiep – Vice Chairman of the BOM

07. Ms. Mai Huong Noi – Member of the BOM

08. Mr. Ling Chung Yee Roy – Member of the BOM

09. Mr. Marc Villiers Townsend – Member of the BOM

10. Mr. Joseph Raymond Gagnon – Member of the BOM

Corporate Identity

Leading the deveLopment of high quaLity products and services system of vingroup with the mission “to create a better Life for the vietnamese peopLe.”


Supervisory Committee/ Executive Committee

Supervisory Committee

Executive Committee

CeO

Ms. Duong Thi Mai Hoa

Ms. Duong Thi Mai Hoa was appointed CEO as of 11 February 2014. Before joining the Group, she had 20 years of experience and held senior leadership positions at multi-national corpo-rations and commercial banks in Vietnam where she acquired deep experience in finance and banking. She was Corporate Banking General Director at Maritime Bank, General Director

of Vietnam International Bank (VIB), Deputy General Director and Head of Retail Banking of VIB, CFO of VIB, CFO of Oracle Vietnam – the global firm’s local branch, Chief Accountant at Credit Lyonnais Bank’s Vietnam operation and Head of Financial Planning Group of VMEP, one of Chinfon’s Vietnam subsidiaries.

The Supervisory Committee (SC) is elected by the Group’s AGM. The SC has five members with five-year terms. Key tasks of the SC include:

• Monitoring BOM and Executive Committee management and administration practices.

• Inspecting the validity, legality, transparency, corpo-rate governance and prudence of business operations, important business transactions, accounting and statis-tical practices, as well as financial reporting.

• Evaluating the business reports, annual and semi-annual Financial Statements of the Group, reporting on evalua-tions by the BOM and submitting the evaluation report of the above issues to the shareholders at the AGM.

• Conducting other rights and obligations of the SC as described in the law, the Group Charter and resolutions of the AGM.

Current Members of the Supervisory Committee

01. Mr. Nguyen The Anh – Head of the SC

02. Mr. Dinh Ngoc Lan – Member of the SC

03. Ms. Nguyen Thi Van Trinh – Member of the SC

04. Ms. Do Thi Hong Van – Member of the SC

05. Ms. Hoang Thuy Mai – Member of the SC

The Executive Committee is appointed and dissolved by the BOM. As of 31 December 2014, the Executive Committee consisted of a Chief Executive Officer (CEO), six Deputy CEOs and one Chief Accountant. The Deputy CEOs and the Chief Accountant support the CEO by fulfilling the tasks entrusted to them. The Executive Committee’s key responsibilities include:

• Organizing the implementation of the AGM and BOM resolutions, especially those related to the Group’s annual business and investment plans.

• Deciding day-to-day matters related to the Group’s busi-ness activities that do not require resolutions from the AGM or the BOM.

The CEO also has the following responsibilities:

• Managing and supervising the Group’s day-to-day operations.

• Executing contracts and other obligations on the Group’s behalf.

Current Members of the Executive Committee

01. Ms. Duong Thi Mai Hoa – CEO

02. Ms. Mai Huong Noi – Deputy CEO

03. Ms. Nguyen Dieu Linh – Deputy CEO

04. Ms. Vu Tuyet Hang – Deputy CEO

05. Mr. Pham Van Khuong – Deputy CEO

06. Mr. Dang Thanh Thuy – Deputy CEO

07. Ms. Nguyen Thi Diu – Deputy CEO

08. Ms. Nguyen Thi Thu Hien – Chief Accountant

Corporate Identity

there were cLear signs of nationaL and gLobaL economic recovery in 2014, and vingroup enjoyed outstanding growth Led by compLetion of some major projects and continued expansion and impressive gains in new business areas.


Corporate Identity Executive Committee

Ms. Nguyen Thi Diu Deputy CEO

Ms. Nguyen Thi Thu Hien Chief Accountant

Ms. Mai Huong Noi Member of the BOM cum Deputy CEO

Ms. Duong Thi Mai Hoa CEO

Ms. Nguyen Dieu Linh Vice Chairwoman of the BOM cum Deputy CEO

Ms. Vu Tuyet Hang Vice Chairwoman of the BOM cum Deputy CEO

Mr. Dang Thanh Thuy Deputy CEO

Mr. Pham Van Khuong Deputy CEO


Businesses

Businesses

real estate luxury apartments and villas – vinhomes

Vinhomes is Vingroup’s brand for high-quality, luxury, serviced apartments and villas. The Vinhomes brand has set a new stan-dard of superior value, which has contributed to the reputation of Vingroup’s urban areas as being the most livable in Vietnam, due to their location, convenience and amenities.

All Vinhomes urban areas are located in prime locations in Hanoi and Ho Chi Minh City. All of Vinhomes residential developments are built with the following features: luxurious accommodations, professional and personalized services, environmentally-sensitive construction, community-building activities, emphasis on security and safety, and co-location of a comprehensive set of facilities.

With a great effort and a transformation initiative in terms of strategy, tactics, personnel, business systems, operations and supporting departments, Vinhomes has decisively addressed the residential market through rapid growth and the achieve-ment of dominant market share in many key cities throughout the country. This market position provides a platform for breakthrough growth in the future.

Vinhomes properties include:

• Vinhomes Royal City (Hanoi)

• Vinhomes Times City (Hanoi)

• Vinhomes Riverside (Hanoi)

• Vinhomes Nguyen Chi Thanh – Hanoi

• Vinhomes Dong Khoi (Ho Chi Minh City)

• Vinhomes Central Park (Ho Chi Minh City)

Quality shopping malls – vincom retail

Vingroup’s Vincom Retail subsidiary is the leading shopping center operator in Vietnam. Vincom Retail employs two brands, Vincom and Vincom Mega Mall, in order to differentiate between the two classes of shopping centers. Vincom uses the advan-tage of large scale to achieve an ideal combination of shopping and entertainment. Through the quality of space and the style of architecture, Vincom provides the advantages of luxury, broad selection, and comfort in shopping and entertainment destinations. In just a few short years, the business unit has set a new standard in shopping and entertainment for Vietnam.

Vincom shopping malls:

Vincom’s world-class shopping malls are located in prime loca-tions of major cities throughout Vietnam, including:

• Vincom Ba Trieu (Hanoi)

• Vincom Long Bien (Hanoi)

• Vincom Ha Long (Quang Ninh)

• Vincom Dong Khoi (Ho Chi Minh City)

Vincom Mega Malls:

Vincom Mega Malls are all-in-one shopping malls that provide customers with a wide selection of high-quality retail and entertainment experiences such as waterparks, ice rinks, aquariums. At present, there are two Vincom Mega Malls located in the Hanoi area:

• Vincom Mega Mall Royal City

• Vincom Mega Mall Times City

offices for lease – vincom office

Vincom office buildings are located in major financial and economic centers and are designed to maximize natural light, save energy and create a modern, professional and efficient working environment. The properties have been selected as the head-quarters of financial institutions and embassies and also home to several Vietnamese and foreign organizations and companies.

Vincom Office properties include:

• Vincom Office Royal City

• Vincom Office Times City

30,000

25,000

20,000

15,000

10,000

5,000

0

CAGR* : 62%

20142013201220112010

Unit: VND billion

REVENUE FROM SALE OF PROPERTIES (2010 – 2014)

21,772

14,658

5,333

1,3713,128

2004Year

Total number of shopping malls

Total areaGFA (sqm)

2009 2010 2012 2013 2014 2015

1 1* 2 3 5 6 30

27,103 42,489 93,273 131,333 482,913 513,690 1,000,000

Target

Corporate Identity

(*) Compound Annual Growth Rate

(*) Vincom Ba Trieu (Tower C) commenced operation.

2014 was a pivotal year for Vincom Retail as it participated in the Group’s transformation initiatives to ready itself for future growth. In 2015, Vincom Retail aims to reach 30 shopping malls throughout Vietnam encompassing more than 1 million square meters of modern retail space.


hospitality – vinpearl

Vinpearl is the market-leading hospitality and tourism brand of Vingroup. Beginning from Vinpearl Nha Trang and after more than a decade of development, Vinpearl now owns a chain of luxury hotels and resorts throughout Vietnam. These include Vinpearl Resort (five-star resorts), Vinpearl Luxury (upscale resorts), Vinpearl Premium (premium resorts and villas) and Vinpearl Golf Club.

Vinpearl five-star and upscale resorts include:• Vinpearl Resort Nha Trang• Vinpearl Luxury Nha Trang• Vinpearl Resort Phu Quoc (Phase 1)

Vinpearl premium resorts and villas include:• Vinpearl Premium Da Nang• Vinpearl Premium Nha Trang Bay (under construction)• Vinpearl Premium Phu Quoc (under construction)• Vinpearl Premium Golf Land (under construction)

Vinpearl Golf Clubs include:• Vinpearl Golf Club – Nha Trang• Vinpearl Golf Club – Phu Quoc

Vinpearl had a productive 2014. Vinpearl Phu Quoc was completed and put into operation on schedule after only ten months of construction, and the Vinpearl Premium brand was launched late in the year. In 2015, three Vinpearl projects will be finished, including Vinpearl Premium in Nha Trang and Phu Quoc, and the first resort in North Vietnam, Vinpearl Resort Ha Long.

high Quality healthcare services – vinmecThe leading healthcare system in Vietnam carries the Vinmec brand, owned by Vingroup. Vinmec, with a team of highly skilled experts and doctors together with advanced modern medical equipment and international-standard inpatient rooms and comprehensive, professional, world-class services, has made many great contributions to Vietnam’s healthcare industry. Thus, Vinmec serves as a prestigious medical facility trusted by many customers. Pro-activeness, discipline, determination and result-orientation are priority qualities at Vinmec, just as they are at all of Vingroup’s other units. That has led to positive, sustain-able results. The secret to success for Vinmec moving forward is the solid momentum in 2015 with the expected opening of new Vinmec International Hospitals in Phu Quoc, Ho Chi Minh City, and Nha Trang. In addition, construction of Vinmec Ha Long International Hospital is currently underway.

Vinmec properties include:

• Vinmec International Hospital (Times City)

• Vinmec International Clinic (Royal City)

• Vinmec International Clinic (Ho Chi Minh City)

entertainment – vinpearl land

Vinpearl Land is the entertainment brand of Vingroup, offer-ing high-quality amusement parks and family entertainment centers. Located in Vingroup’s resorts and mixed-use develop-ments nationwide, Vinpearl Land has the same large-scale and high quality as other regional and global recreational theme parks.

Vinpearl Land properties include:

• Vinpearl Land Nha Trang

• Vinpearl Land Royal City

• Vinpearl Land Times City

• Vinpearl Land Ha Long

• Vinpearl Land Phu Quoc

During 2014, Vinpearl Land developed a human resource system populated with a staff of young, enthusiastic and passionate employees who share the goal of attracting and entertaining visitors. Vinpearl Land further expanded with the opening of Vinpearl Land Ha Long and Vinpearl Land Phu Quoc. Peak visitors reached tens of thousands per day.

In 2015, Vinpearl Land aims to spread the brand through-out key cities nationwide to build trust and credibility with customers.

Quality education – vinschool

As a high-quality K-12 school system, Vinschool benefited from its development strategy, infrastructure and the investment focus of Vingroup. Vinschool aims to create a generation of young Vietnamese whose education is dynamic and well-rounded so that students will be fully equipped with knowledge and skills for international integration while still grounded by Vietnamese tradition and culture. In 2014, Vinschool expanded its scale to a total of 6,300 students. With its educational philosophy of “comprehensive development of future generations,” Vinschool has gained the trust of students and parents. In the next few years, the Vinschool business unit plans to expand to a total of 22 schools nationwide.

Vinschool facilities include:

• Vinschool Kindergarten – Times City

• Vinschool Kindergarten – Royal City

• Vinschool Kindergarten – Vinhomes Riverside

• Vinschool Elementary School – Times City

• Vinschool Secondary and High School – Times City

124,740

56,782

67,958

116,639

72,335

44,304

70,122

31,288

101,410

5,37911,639

150,242

66,819

83,423

CAGR* : 90%

2013201220112010 2014

NUMBER OF VISITS TO VINPEARL (2010 – 2014)

International visitors Domestic visitors

6,260

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

2013201220112010 2014

NUMBER OF VISITS TO VINPEARL LAND (2010 – 2014)

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

1,768,953

1,237,1711,210,772988,707

3,257,627

CAGR* : 35%

2013201220112010 2014

TOTAL NUMBER OF VISITS TO VINMEC (2012 – 2014)

Inpatient services Outpatient services

250,000

200,000

150,000

100,000

50,000

86,525

78,792

7,733

43,987

41,417

2,570

200,076

186,577

13,499CAGR* : 113%

0

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

2013

1,059

2012 2014

6,300

TOTAL NUMBER OF STUDENTS(2013 - 2014)

CAGR* : 495%

Corporate Identity Businesses

HOSPITALITY – ENTERTAINMENT HEALTHCARE EDUCATION

(*) Compound Annual Growth Rate (*) Compound Annual Growth Rate


consumer retail(vinmart, vinds, vinpro, vinfashion, and adayroi)In 2014, Vingroup built on its retail brand equity to expand its footprint in a number of new sectors of the retail marketplace.

VinMart – Supermarkets and VinMart+ – Convenience stores

VinMart and VinMart+ are Vingroup’s consumer and retail brands that provide customers with exceptional shopping experience and value. VinMart supermarkets and VinMart+ convenience stores have wide coverage across the country and are located in densely populated areas with convenient transportation.

VinMart’s mission is to earn customers’ trust with the slogan “Quality of life for every household.” VinMart has proven to Vietnamese customers that its stores are reliable shopping destinations in terms of product origin and quality, service and prices, and VinMart can provide customers with a completely new shopping style and satisfaction.

VINDS

VINMART& VINMART+

VINPRO

VINFASHION

ADAYROI

Fast fashion for the Vietnamese

VinFashion’s EMIGO brand’s slogan is “Dressing up Vietnam.” By the end of 2014, after 6 months of operations, EMIGO has six stores in Hanoi and Ho Chi Minh City. In 2015, EMIGO plans to build on this base to reach even more fashion lovers.

Chain of specialty retail stores

VinDS is a new retail segment within Vingroup with a chain of specialty retail stores offering a wide range of products including cosmetics, shoes, sportswear, furniture and house-hold appliances. With this unique model, VinDS’s targets are to dominate the retail market of these product categories and to offer Vietnamese consumers both a broad range of products as well as a newer shopping style.

Electronics and appliances

VinPro is an entirely new brand within Vingroup’s Retail business segment. VinPro was launched in early 2015 with a set of product offerings that includes smartphones, laptops, tablets, electron-ics, and home appliances.

Comprehensive E-commerce

In 2014, Adayroi took the very first steps in its journey to conquer Vietnam’s e-commerce market. The firm has been building a solid foundation for launching and promises to break new grounds in the coming years. By bringing the unprecedented convenience of ecommerce to all customers, Adayroi aims to gradually change Vietnamese shopping culture to fit the pace of modern life.

Corporate Identity Businesses


Vincom Ha LongCommenced operation in October 2014

Maintain leadership with continuous growth.

042 Operational Highlights

044 Financial Summary

046 About Vingroup’s shares in 2014

048 Shareholder Information

050 Investor Relations

OPERATIONS iN 2014


Vingroup Updates Healthcare Strategy

In July, Vingroup began construction of Vinmec International Hospital in Phu Quoc and announced a five-year develop-ment strategy for its entire healthcare system. Vinmec will develop ten high-quality hospitals nationwide and establish the Vinmec Medical University in Hung Yen. These plans form the foundation of Vingroup’s long-term vision in the premium healthcare services sector.

Vinschool Becomes the Education Phenomenon of 2014

In September, Vinschool in Times City welcomed the inaugural batch of K-12 students and instantly became an admis-sions phenomenon by enrolling a total of 6,300 students. Vinschool’s success in enrolling students and the quality of its education offerings are evident in these enrollment figures, confirming Vingroup’s commitment to education and demonstrating the trust placed in Vinschool by students and their parents.

Vingroup Leads the Private Sector as 2014’s Largest Taxpayer and Is Named Among “Top 100 ASEAN Companies” by Standard & Poor’s Credit Rating Agency

In May, Vingroup topped the list of private-enterprise taxpayers for the State Budget of Vietnam and was the first private enter-prise to earn a place among the top ten corporate taxpayers. This ranking recognizes Vingroup’s significant contribution to the State Budget of Vietnam and reflects the Group’s continu-ing growth in revenues and profitability during 2014.

Vingroup was the only Vietnamese real estate company named among the “Top 100 ASEAN Companies” by Standard and Poor’s (S&P), a leading international credit rating agency, and is one of only two Vietnamese enterprises to meet the criteria in credit ratings, market capitalization, transparency of information and market leadership, necessary to make the list. Credit ratings given by S&P are considered a reliable indicator used by sovereigns, fixed-income issuers and investors.

Vingroup Announces Two New Retail Chains, VinMart and VinMart+

In October, Vingroup launched a new brand in the retail sector. The brand will be carried by two chains of stores: supermarkets network VinMart and convenience stores network VinMart+. Both chains will operate nationwide. VinMart supermarkets ranging from 3,000 to 15,000 square meters, while VinMart+ convenience stores range from 150 to 300 square meters. In November, VinMart and VinMart+ commenced operation and both chains have expanded their store count at a rapid rate and plans call for networks of 100 supermarkets and 1,000 convenience stores nationwide by 2017.

Grand Opening of Vincom Ha Long

In October, Vincom Ha Long commenced operations, increas-ing the total number of shopping malls under the Vincom brand to six. Vincom Ha Long is Vingroup’s first project in Quang Ninh Province and the first shopping mall developed by Vincom Retail that is not located in one of Vietnam’s two major cities, Hanoi and Ho Chi Minh City. This project represented major progress in expanding Vingroup’s retail real-estate offer-ing on a nationwide basis. Notably, Vincom Ha Long led to the establishment of many other major projects in Quang Ninh.

Vingroup Launches Vinpearl Premium – Premium Resorts and Villas Brand

In December, Vingroup announced a new vacation prop-erty brand, Vinpearl Premium, a brand dedicated to five-star resorts and vacation villas. Throughout the system, Vinpearl Premium has a total of 1,500 hotel rooms and 830 villas in four projects located in Nha Trang, Phu Quoc and Da Nang.

Vingroup Honored with National and International Awards

During 2014 Vingroup and its business units received many prestigious national and international awards. Vincom Mega Mall Royal City won the “Best Retail Development Vietnam” at the Annual Asia Pacific Property Awards.

In September, Vingroup received the highest score for “provid-ing the best real estate products and services” and was chosen “Best Retail Developer in Vietnam” by the world’s leading financial magazine, Euromoney.

In the financial community, Vingroup was voted “Region’s Best Borrower – Vietnam” by FinanceAsia.

In the hospitality sector, Vinpearl Resort Nha Trang was ranked one of the “Top 10 Best five-star Hotels” in Vietnam for the sixth consecutive year.

Group’s revenue over 1 billion USD

For 2014, Vingroup’s consolidated net revenue reached VND27.7 trillion, and the Group contributed VND4.2 trillion to the State Budget, 60% increase compared to 2013. Net revenue of approximately USD1.3 billion puts Vingroup in the exclusive ranks of Asia-Pacific companies with revenues over a billion USD and helped to raise the Group’s regional and global economic profile.

With more than 17,000 employees, Vingroup has demon-strated a leading role in all business sectors and continues to create new trends by providing the market with innovative quality products and services “to create a better life for the Vietnamese people.”

Operations in 2014 Operational Highlights

10 Operational highlights in 2014

Vinhomes Central Park Groundbreaking and Vinhomes Nguyen Chi Thanh – Ha Noi Sales Launch

During 2014, Vingroup began construction and sales of two major luxury projects in Hanoi and Ho Chi Minh City. In July, construction started on Vinhomes Central Park in the Binh Thanh District of Ho Chi Minh City. The project has a total planned investment of VND37.7 trillion on land area of 42.2 hectares. Vinhomes Central Park is Vingroup’s first mega-scale mixed-use project in the Southern market. The project features a distinctive component: Vietnam’s tallest building, The Landmark81 over 380m, which began construction in December 2014.

In Hanoi, Vingroup began sales of Vinhomes Nguyen Chi Thanh – Hanoi in November. This project is located in one of the most desirable areas in Hanoi and features an advanced, modern design with private gardens for apartments, a luxurious touch that is rare in Vietnam. These features make Vinhomes Nguyen Chi Thanh – Hanoi one of the leading high-end projects announced in Hanoi during 2014.

Together, Vinhomes Central Park and Vinhomes Nguyen Chi Thanh – Hanoi have become the center of attention in the market with sales exceeding projections.

Grand Opening of Vinpearl Phu Quoc

In November, after just over ten months of construction, Vingroup opened the five-star premium resort and hospitality complex, Vinpearl Phu Quoc. As the largest and most luxurious hospitality project on the island, Vinpearl Phu Quoc represents a transformation for the hospitality market in Phu Quoc.

Furthermore, in 2014, Vingroup also commenced and accelerated the development of many other Vinpearl projects across the country.

1

2

3

4

5

6

7

8

9

10


Financial Summary

Financial Summary2014 2013 2012

Indicator (VND)

Net revenue 27,723,633,371,036 18,377,638,845,706 7,904,472,849,072

Cost of goods sold 17,284,911,479,916 11,346,984,128,307 4,092,056,174,334

Gross profit 10,438,721,891,120 7,030,654,717,399 3,812,416,674,738

Operating profit 5,383,641,995,457 9,606,581,419,123 2,563,499,467,407

Profit from divestitures of equity stakes 111,050,324,885 5,671,793,229,484 393,757,169,880

Operating profit from core businesses 5,272,591,670,572 3,934,788,189,639 2,169,742,297,527

Profit after tax 3,776,045,741,483 7,149,288,120,557 1,846,667,924,525

Profit after tax from divestitures of equity stakes 86,619,253,410 4,253,844,922,113 295,317,877,410

Profit after tax from core businesses 3,689,426,488,073 2,895,443,198,444 1,551,350,047,115

EBITDA1 8,568,084,958,380 11,626,109,861,052 3,906,553,356,182

Total assets 90,485,307,199,860 75,772,648,425,795 55,824,875,804,676

Total liabilities 2 63,200,673,940,820 57,156,105,584,507 44,951,244,544,495

Loans and borrowings 3 33,336,013,772,819 27,383,635,280,014 21,828,665,659,871

Total owners’ Equity 27,284,633,259,040 18,616,542,841,288 10,873,631,260,181

Indicator

Source: VAS Consolidated Financial Statements for 2012, 2013, 2014

(1) EBITDA = (Profit before tax + Interest expense + Depreciation and amortization) – Other income and interest on deposits.

(2) Including Advance of VND6,581,278,862,138 from customer, Deferred revenue of VND6,586,084,426,957 and Payment of VND7,847,174,664,786 from customer under deposit, loan and other agreements.

(3) Loans and Borrowings from credit agencies and other organizations, Loans and Borrowings = Short-term loans and borrowings + Long-term loans & borrowings.

(4) Excluding Advance from customer, Deferred revenue and Payment from customer under deposit, loan and other agreements.

Operations in 2014

2014 2013 2012

Gross profit margin (%) 37.65 38.26 48.23

Operating profit margin (%) 19.42 52.27 32.43

Net profit margin (%) 13.62 38.90 23.36

Net revenue growth (%) 50.86 132.50 241.63

Profit after tax from core businesses growth (%) 27.42 86.64 270.17

Total liabilities 4/ Total Owners’ Equity (times) 1.55 1.88 2.50

Profit after tax/ Total Owners’ Equity (ROE) (%) 13.84 38.40 16.98

Earnings per share (EPS) (VND/ share) 2,447 5,310 1,819

30,000

25,000

20,000

15,000

10,000

5,000

0

2013

18,378

14,658

3,720

2012

7,904

2,571

5,333

2014

27,724

21,772

5,952

Recurring revenue

Unit: VND billion

Sale of properties revenue

TOTAL NET REVENUE (2012 – 2014)

CAGR* : 87%

30,000

25,000

20,000

15,000

10,000

5,000

0

2013

18,617

2012

10,874

2014

27,285

Unit: VND billion

TOTAL OWNERS’ EQUITY (2012 – 2014)

CAGR* : 58%

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

2013

11,626

2012

3,907

2014

8,568

Unit: VND billion

EBITDA (2012 – 2014)

CAGR* : 48%

100,000

90,000

80,000

60,000

70,000

40,000

50,000

30,000

20,000

10,000

0

2013

75,773

2012

55,825

2014

90,485

Unit: VND billion

TOTAL ASSETS (2012 – 2014)

CAGR* : 27%

12,000

10,000

8,000

6,000

4,000

2,000

0

2014

10,439

3,776

2012

Unit: VND billion

GROSS PROFIT AND NET PROFIT (2012 – 2014)

Gross pro�t Net pro�t after tax

2013

7,031 7,149

3,812

1,847

Unit: %

ROE AND ROA (2012 – 2014)

ROE ROA

70

60

50

3.319.44

4.17

38.40

16.98 13.84

40

30

20

10

0

201420132012

(*) Compound Annual Growth Rate


About Vingroup’s shares in 2014

About Vingroup’s shares in 2014

Ticker: VIC

Outstanding shares: 1,454,555,098 shares

Closing price (as of 31 December 2014): VND47,700/ share

Market capitalization (as of 31 December 2014): VND64.3 trillion

Shareholder structureAs of 31 December 2014

Charter capital increase history (2010 – 2014)

Time of issuance

Transaction Recipients Capital before the issuance

(VND)

Capital mobilized from

the issuance (VND)

Capital after the issuance (VND)

2010

Share dividend Existing shareholders 1,996,272,380,000 1,199,747,240,000 3,196,019,620,000

Rights offering Existing shareholders 3,196,019,620,000 402,875,740,000 3,598,895,360,000

Conversion of bonds Convertible bondholders 3,598,895,360,000 127,357,010,000 3,726,252,370,000

2011 Conversion of bonds Convertible bondholders 3,726,252,370,000 185,246,560,000 3,911,498,930,000

2012

Vinpearl JSC merger (stock swap)

Existing shareholders 3,911,498,930,000 1,582,334,120,000 5,493,833,050,000


2013

Bonus shares Existing shareholders 7,004,620,550,000 2,276,481,600,000 9,281,102,150,000

Conversion of bonds Convertible bondholders 9,281,102,150,000 6,966,640,000 9,288,068,790,000

PFV Co. merger (stock swap)

Existing shareholders 9,288,068,790,000 7,968,000,000 9,296,036,790,000

2014Conversion of bonds Convertible bondholders 9,296,036,790,000 722,201,960,000 10,018,238,750,000


Unit: %

SHAREHOLDER OWNERSHIP STRUCTUREAs of 31 December 2014

Founding shareholders

Major shareholders

Other shareholders – Domestic

Other shareholders – Foreign

0.4%

15.95%

28.66%

54.99%

Share price

(VND)Volume(million shares)

40,000

45,000

50,000

55,000

60,000

0

1

3

2

5

4

7

6

8

9

Jan2014

Vingroup share volume Vingroup share price

2014 SHARE PRICE MOVEMENT

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Dividend year (%) Form of payment Time of payment

2009 60.10 Share 2010

2010 58.80 Cash (VND5,880/ share) 2011

2011 12.40 Share 2012

2012 15.10 Share 2012

201321.49 Cash (VND2,149/ share) 2014

48.70 Share 2014

Dividend payment history (2009 – 2013)

No Catergory Number of shares held

Ownership Percentage

(%)

Number ofshareholders

1Founding shareholders 5,861,058 0.40 1

Domestic 5,861,058 0.40 1

Foreign 0 0 0

2

Major shareholders (Holding above 5%) 799,885,941 54.99 4

Domestic 799,885,941 54.99 4

Foreign 0 0 0

3Other shareholders 648,808,099 44.61 10,137

Domestic 416,875,836 28.66 9,577

Foreign 231,932,263 15.95 560

Total 1,454,555,098 100 10,142

Domestic 1,222,622,835 84.05 9,582

Foreign 231,932,263 15.95 560

Operations in 2014


Shareholder Information

Transactions by key executives and related parties in 2014

Major shareholders holding over 5% As of 31 December 2014

Insider holdings As of 31 December 2014

No Name Number of shares held

Ownership percentage (%)

1 Mr. Pham Nhat Vuong 423,233,801 29.10

2 Ms. Pham Thu Huong 72,981,753 5.02

3 Vietnam Investment Group JSC 180,145,441 12.38

4 Ecology Investment and Development JSC 123,524,946 8.49

Total 799,885,941 54.99

Tittle Name – Position Number of shares held (share)

Ownership Percentage (%)

Board of Management

Mr. Pham Nhat Vuong – Chairman 423,233,801 29.10

Ms. Pham Thuy Hang – Vice chairwoman 48,740,005 3.35

Ms. Pham Thu Huong – Vice chairwoman 72,981,753 5.02

Ms. Nguyen Dieu Linh – Vice chairwoman, Deputy CEO

111,966 0.01

Ms. Vu Tuyet Hang – Vice chairwoman, Deputy CEO

15,502 0.00

Mr. Le Khac Hiep – Vice Chairman 0 0

Ms. Mai Huong Noi – Member, Deputy CEO 0 0

Mr. Ling Chung Yee Roy – Member 0 0

Mr. Marc Villiers Townsend – Member 0 0

Mr. Joseph Raymond Gagnon – Member 0 0

Executive Committee

Ms. Duong Thi Mai Hoa – CEO 0 0

Mr. Pham Van Khuong – Deputy CEO 909,419 0.06

Mr. Dang Thanh Thuy – Deputy CEO 141,483 0.01


111,966 0.01

Ms. Vu Tuyet Hang – Vice chairwoman, Deputy CEO

15,502 0.00

Ms. Mai Huong Noi – Member of BOM, Deputy CEO 0 0

Ms. Nguyen Thi Diu – Deputy CEO 0 0

Supervisory Committee

Mr. Nguyen The Anh – Head of SC 5,955 0.00

Mr. Dinh Ngoc Lan – Member 839 0.00

Ms. Nguyen Thi Van Trinh – Member 0 0

Ms. Do Thi Hong Van – Member 0 0

Ms. Hoang Thuy Mai – Member 0 0

Chief Accountant Ms. Nguyen Thi Thu Hien – Chief Accountant 87 0.00

Authorized spokesperson


111,966 0.01

Total 546,140,810 37.55

Shareholder information

No Name Relationship with internal shareholders

Number of shares held prior to the transaction

Number of shares held after the transaction

Rationale

Shares (%) Shares (%)

1 Vinpearl JSC

Ms. Vu Tuyet Hang is Chairwoman cum CEO of Vinpearl JSCMr. Dang Thanh Thuy is Member of Board cum Deputy CEO of Vinpearl JSC.Mr. Nguyen The Anh is Head of Supervisory Committee of Vinpearl JSC.Mr. Dinh Ngoc Lan is Member of Supervisory Committee of Vinpearl JSC.

0 0 35,398,107 1 2.43Receive transfer of shares

2 Nguyen Khac CuongMs. Nguyen Dieu Linh’s father 217,362 0.01 0 0 Transfer of shares

3 Mai Tat ToMs. Mai Huong Noi’s father 499,598 0.03 0 0 Change in ownership

4 Be Thi ThuanMs. Mai Huong Noi’s mother 151,709 0.01 26,435 0.002 Change in ownership

5 Mai Huong NoiMember of Board cum Deputy CEO 87,004 0.006 0 0 Change in ownership

6 Nguyen Tat ThangMs. Mai Huong Noi’s husband 20,926 0.001 0 0 Change in ownership

7 Mai Thu ThuyMs. Mai Huong Noi’s sister 167,471 0.01 9,391 0.0006 Change in ownership

8 Pham Van Khuong Deputy CEO 3,137,964 0.21 611,580 2 0.04 Transfer of shares

(1) Number of shares has increased to 52,636,985 shares as Vinpearl JSC received dividend by shares.

(2) Number of shares has increased to 909,419 shares as Mr. Pham Van Khuong received dividend by shares.

Operations in 2014


Investor Relations

Investor Relations

The Group maintains an active investor relations program to handle inquiries, disclose Group information, and manage rela-tions with shareholders, investors, analysts and other interested parties. Vingroup is committed to equitable treatment of all shareholders, including minority and foreign shareholders. The company encourages all shareholders to exercise their voting rights regularly. Minority shareholders are given the right to propose the holding of a meeting as well as the right to propose items in the agenda of the meeting, provided that the items are for legitimate business purposes and in accordance with the law, jurisprudence and best practices.

Disclosure and Transparency

Vingroup is committed to providing its shareholders and the public timely and accurate information on the Company and its businesses. Information is prepared and disclosed in accordance with the highest quality standards of accounting and financial and non-financial disclosure. Investor presentation materials as well as news and financial releases of the Group may be viewed and downloaded from its website www.vingroup.net.

In addition to quarterly conference calls following the release of financial results, Vingroup also hosts regular briefings and meetings with investors and analysts to keep them updated on the Group’s various projects, financial and operational results. Many of these events feature access to senior management to answer questions regarding strategy and operational focus. The third annual Vingroup Tour took place in November 2014 with

the participation of more than 40 investment funds and securi-ties firms. Via prior appointment, investors and analysts are also able to visit project sites in Hanoi, Ho Chi Minh City, Da Nang, Phu Quoc and Nha Trang to see the developments firsthand.

Investor relations executives and senior management also participate in a number of third party events in multiple coun-tries to further ensure access for all investors. During 2014, the Group was represented and gave presentations at several conferences organized by leading financial institutions and bulge-bracket investment banks. In addition, the Group also attended the World Economic Forum in Davos, Switzerland, and the WEF Annual Meeting of the New Champions 2014 in China.

Vingroup’s Investor Relations department will continue to uphold the best practices in the future. We strive to steadily increase the number of appearances and investor contact opportunities as well as even more prompt responses to inves-tor and analyst inquiries. The Investor Relations department can be reached via email at [email protected].

vIngrOup Is cOmmItted tO prOvIdIng Its sharehOLders and the puBLIc tImeLy and accurate InfOrmatIOn On the cOmpany and Its BusInesses On Its OffIcIaL weBsIte www.vIngrOup.net.

Operations in 2014


Vinpearl Phu QuocFive-star resort with the first international-standard 27-hole golf course in Phu Quoc

Today’s foundation is tomorrow’s success.

056 Report of the Board of Management

060 Report of the Supervisory Committee

061 Report of the Executive Committee

065 Corporate Governance Report

066 Development Strategy

068 Risk Management

070 Human Resource Management

074 Corporate Culture

MaNageMeNT aNd GOVERNANCE


Management and Governance Report of the Board of Management

Report of the Board of Management

In 2014, Vingroup completed a record number of landmark projects and ended the year with impressive achievements across all business segments including property, retail, hospi-tality and entertainment, healthcare, and education.

The Macro-Economy in 2014

During Vietnam’s 5-year socio-economic development plan (2011 to 2015), 2014 marked the first year that the nation achieved nearly all (13 out of 14) of its macroeconomic targets. This progress provided the foundation for improved growth in the years to come.

Specifically, GDP grew 5.98% in 2014, the highest growth rate since 2012. The agriculture, forestry and aquaculture sector grew 3.49% against 2.64% in 2013; the industrial and construc-tion sector had breakthrough growth of 7.14% compared with 5.43% in 2013; and the service sector increased 5.96% over the previous year. In 2014, foreign trade turnover rose to USD150 billion in exports, an increase of 13.6%, with imports reaching USD148 billion, an increase of 12.1% over 2013. Vietnam’s trade surplus was USD2 billion, the highest since 2012, contributing to the continued stability of the exchange rate and the liquidi-ty of the foreign exchange market.

The inflow of foreign direct investment (FDI) also contrib-uted to an outstanding year with total registered capital of USD20.23 billion, exceeding plan by 19%. Vietnam’s real estate sector attracted FDI of more than USD2.5 billion, accounting for 12.6% of Vietnam’s total registered capital.

The consumer price index (CPI) increased by 1.84% in 2014 compared to 2013, the lowest increase of the last thirteen years. The government continues control inflation successful-ly, stabilizing input costs and commodity prices, stimulating consumption, and promoting economic growth.

Recovery in the Property Market

Along with growth in the economy, 2014 saw the property market turn a page, encouraging the return of both domestic

and foreign investors. The number of successful real estate transactions increased, especially in the Southern market. Ministry of Construction statistics indicate a significant upward trend in the real estate market. The total number of completed transactions in Hanoi and Ho Chi Minh City doubled over the previous year. Real estate mergers and acquisitions also grew significantly in terms of both volume and transaction value, marking a strong return of the secondary market. According to the Ho Chi Minh City Real Estate Association, new investors have restarted struggling projects. The real estate market was helped by this trend, since it helped to clear inventories, improved debt collection and supplied products that met customers’ needs and financial capabilities. According to real estate experts, the property market bottomed out in 2014 and is now on an upward trend. In the overall picture of recovery, the strongest parts of the property market appear to be the middle and high-end segments, especially properties in prime locations with many amenities and from developers with strong reputations.

Overall, property markets benefited from macro-economic trends, government policy support, improvements in product quality and more effective promotion programs.

8.00

6.00

4.00

2.00

0.00

2013

5.42

2012

5.03

2011

5.89

2010

6.78

2014

5.98

Source: General Statistics O�ce of Vietnam

GDP GROWTH OF VIETNAM (2010 – 2014)

Unit: %

12.5

12

11

11.5

10.5

10

9.5

2013

11.51

2012

10.46

2011

1111

2010 2014

12.35

Source: Foreign Investment Agency – Ministry of Planning and Investment

Unit: USD billion

DISBURSED FDI IN VIETNAM (2010 - 2014)

Source: CBRE

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

SUCCESSFUL RESIDENTIAL TRANSACTIONS IN HANOI (2012 – 2014)

Unit: number of apartments

High-end

Mid-end

Low-end

Q12012

Q2 Q3 Q4 Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4

Vingroup Operations in 2014

The national economy experienced clear signs of recovery in 2014, and Vingroup enjoyed outstanding growth thanks to the efforts its management and employees. Vingroup achieved impressive business results in 2014: consolidated net revenue reached VND27.7 trillion and gross profit recorded VND10.4 tril-lion, increases of 51% and 48%, respectively, compared to 2013. Profit after tax from core businesses contributed VND3.7 trillion, an increase of 27% over the previous year.

Residential property sector

Vingroup handed over to buyers thousands of apartments with comprehensive facilities. The Company achieved the highest sales of properties in its history, VND21.8 trillion or a 49% increase over 2013, due largely to handing over units at Vinhomes Times City, Vinhomes Royal City, and final payments for Vinhomes Riverside. The Group is now beginning the pre-sale of two new projects, Vinhomes Central Park in Ho Chi Minh City and Vinhomes Nguyen Chi Thanh in Hanoi, while simultaneously developing Phase 2 of Vinhomes Times City – Park Hill.

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

SUCCESSFUL RESIDENTIAL TRANSACTIONS IN HO CHI MINH CITY (2012 – 2014)Unit: number of apartments

High-end

Mid-end

Low-end

Q12012

Q2 Q3 Q4 Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4

Source: CBRE


Shopping malls

Vincom expanded its chain to sites outside Hanoi and Ho Chi Minh City with the grand opening of Vincom Ha Long in the province of Quang Ninh. This expansion raised the total number of shopping malls to six and increased Vincom’s total retail space to 513,690sqm. The occupancy rate for all of Vincom’s shopping malls remained high, due to superior amenities such as shopping areas, food courts, cinemas and amusement parks. The high occupancy rate strengthened Vingroup’s reputation in the retail market.

Vincom Retail was also active in preparing for further expansion in the retail market, with plans to grow the Vincom mall chain nationwide. Construction has begun on six new shopping malls: Vincom Le Thanh Tong – Hai Phong, Vincom Nguyen Chi Thanh – Hanoi, Vincom Xuan Khanh – Can Tho, Vincom Ngo Quyen – Da Nang, Vincom Hung Vuong – Hue, Vincom Thu Duc, and Vincom Mega Mall Thao Dien – Ho Chi Minh City.

Retail sector

Vingroup’s retail market expansion also included the launch of the VinMart supermarket and VinMart+ convenience store chains. At the end of 2014, VinMart and VinMart+ had a total of 23 supermarkets and convenience stores in major cities and provinces across the country. As part of its expansion strategy, Vingroup also rolled out a series of new retail store brands such as VinFashion (fast fashion for Vietnamese), VinDS (chain of specialty retail stores), and VinPro (electronics and appliances). Vingroup is also preparing to launch its e-commerce brand, Adayroi, together with other consumer retail brands to grab the dominant market share.

Hospitality and Entertainment Sector

Vingroup opened a new resort complex, Vinpearl Resort Phu Quoc, in 2014 after just over ten months of construction. This opening more than doubled the total number of hotel rooms in Vinpearl Resorts to 1,600 at the end of 2014.

Vinpearl welcomed 150,242 guests, an increase of 20% over 2013. Foreign tourists accounted for 56% of the total. Revenue1 totaled VND1.35 trillion, up 29% over 2013. Vinpearl launched a new brand, Vinpearl Premium, offering premium resorts and villas, to differentiate its highest-end hotels and vacation prop-erties. The business unit is now accelerating construction of its projects in Nha Trang, Da Nang and Phu Quoc.

Vinpearl Land (theme parks) also had a successful year with total revenue1 of VND905 billion, a 59% of increase over 2013. Vinpearl Land opened two new properties in 2014, Vinpearl Land Phu Quoc and Vinpearl Land Ha Long.

Healthcare Services

Vinmec achieved revenue1 of VND670 billion, an increase of 133% over 2013. Vinmec recorded growth both in the number of patients served and the number of surgeries performed, with

tens of thousands of patients and thousands of surgeries. As part of the expansion of its international-standard healthcare system, Vingroup started construction of Vinmec Phu Quoc Hospital and announced plans to develop ten hospitals and a medical university within the next five years.

Education Sector

During 2014, Vinschool opened its K-12 school and increased the total number of students in its schools to 6,300. In only two years, Vinschool already has achieved remarkable progress and strengthened its reputation with an educational philosophy that stresses comprehensive skills development for future generations.

Management System

To achieve its results in 2014, Vingroup emphasized its inherent strengths, especially its management system framework of processes and procedures to ensure the company can fulfill all tasks required to achieve its objectives. Perhaps 2014 should be remembered as the year of “Vingroup Transformation” as the company successfully decentralized decision making while maintaining proper controls throughout. After twelve consecutive months, the new “Bottom-line Focus” has spread throughout the Group to all of the business units, which have grown in both scale and management sophistication.

All of the Group’s functional departments and divisions have gained a full understanding of their responsibility for controlling profit and loss, ensuring consistency and efficiency throughout the entire system. Vingroup is implementing a governance system that is in line with international practices and will enable the Company to effectively manage its growth and profitability as its scale and complexity continue to increase.

Challenges and Opportunities in 2015

According to World Bank (WB), 2014 will be the platform for economic growth in 2015 for developing countries such as Vietnam. Due to the low price of oil and global interest rates, global economic growth is forecasted to reach 3% in 2015 and 3.3% in 2016.

The stabilizing global economy will support Vietnam’s economy and maintain current growth momentum in 2015. The World Bank forecasts Vietnam GDP growth to be 5.6 % and 5.8% in 2015 and 2016, respectively.

In 2015, the Vietnamese government will concentrate on enhanc-ing macroeconomic stability, resolving difficulties in production, restructuring the economy, transforming the national economic growth model, improving efficiency and competitiveness, and striving for higher growth. In addition, the Government also aims to accelerate the restructuring of State-owned enterprises and the stock market as previously planned. These changes should

attract diversified domestic and international investment, while supporting the equitization of State-owned enterprises and resolving bad debts.

During 2015, the property market is expected to receive wide-ranging support from policies, laws, and regulations recent-ly approved by the National Assembly and the Government. Among these changes, the Amended Housing Law and the Amended Real Estate Business Law are the two most anticipated laws, which take effect on 1 July 2015. These changes will ease conditions for foreigners to purchase and own property in Vietnam, further attracting investment into the property market. In addition, Circular 36/2014 issued by the State Bank of Vietnam, which took effect on 2 January 2015, reduces the risk factor for real estate business loans from 250% to 150% and allows greater use of short-term capital for long-term loans by doubling the rate from 30% to 60%, thus increasing the Bank’s ability to lend. These changes are expected to be positive factors for the property market.

According to BMI research, Vietnam’s population now exceeds 90 million, 35% of which is in the youngest age groups. These younger groups demonstrate the highest demand for housing, hospitality and retail. Since the average person requires 15sqm of living area, demand for living space will be approximately 500 million sqm. The total of residential space in Vietnam is currently about 100 million sqm. Given such favorable conditions as stable politics, a recovering economy, and rich natural resources, there should be strong growth in demand for the property and hospi-tality sectors in the years ahead.

According to Savills Vietnam, the nation’s property market is now at the bottom of its cycle. It is expected that in 2015, increased foreign direct investment in real estate will help to clear unsold inventory and restart some stalled projects.

Blueprint for 2015

The Group believes that 2015 will be a “Breakthrough Year” on every front. Vingroup’s principal mission is to concentrate on achieving growth in all business sectors. The Group will also focus on developing human resources, strengthening gover-nance, with the aim of maintaining its position as one of the leading private enterprises in Vietnam.

Recurring revenue

The Group continues to maintain steady revenue growth from Vinhomes residential projects such as Vinhomes Times City, Vinhomes Royal City, the Vincom shopping malls, Vinpearl hotels and resorts, Vinpearl Land entertainment services, Vinschool education system, Vinmec healthcare and medical service as well as the other retail brands of the Group.

In 2015, Vingroup will start new Vinhomes projects in Hanoi, Ho Chi Minh City, Bac Ninh, Ha Tinh, and Can Tho. The Group will complete three Vinpearl Premium hospitality complexes in Nha Trang and Phu Quoc and begin Vinpearl Resort Ha Long, the Group’s first resort in the North.

Vincom Retail will continue to launch new shopping malls, increasing the number of shopping malls to 30 throughout the country. Vingroup will start construction of five new Vinpearl Land recreation facilities and four Vinmec hospitals in Quang Ninh, Nha Trang, Phu Quoc and Ho Chi Minh City.

In the retail sector, the e-commerce brand Adayroi will be launched and is expected to be a leader in the e-commerce area. Other business brands in the retail segment (VinMart, VinPro, VinDS, and VinFashion) will also accelerate the pace of store openings to increase their coverage and take the lead in their respective segments.

In 2015, Vingroup will enter the agriculture business with VinEco. Rising income and increased awareness have created great demand for a source of trusted quality food that the Group is in a unique position to offer.

Management System

During 2015, Vingroup will implement a major project to further improve its management systems. The main objective will be to incorporate international best practices while retain-ing Vingroup’s culture and core values. Further decentraliza-tion, clearly defined delegation of authority and empowered compliance and risk departments aim to improve operational efficiency and increase overall productivity.

Fund raising

Vingroup will continue to consider and mobilize attractive sources of capital in both domestic and international markets.

Human resource and corporate culture

The Group will continue to promote training in all departments to enhance staff performance, introduce new policies to attract and retain talent and emphasize discipline and individual responsibility to reinforce the corporate culture of “Vingroup – Where the Best Gather and Grow.”

Report of the Board of Management

(1) Gross segment revenue includes contributions from Vingroup subsidiaries prior to intercompany eliminations.

Management and Governance


Report of the Supervisory Committee/ Report of the Executive Committee

Report of the Supervisory Committee

2014 Activities

Members of the Supervisory Committee (SC) are elected by the Group’s Annual General Meeting (AGM). The SC consists of five members and has not changed since 2013. During 2014, the SC performed the following duties:

• Supervised implementation of 2013 AGM’s resolutions covering dividends, increasing charter capital, and issuing resolutions

• Supervised the execution of business plans and progress toward goals in order to achieve revenue targets

• Supervised financial investments and advising the BOM on ways to lower risk and raise returns on investments

• Ensured accuracy of the quarterly and annual financial statements in accordance with Vietnamese Accounting Standards and current fiscal policies in Vietnam

• Ensured the Group’s compliance with the laws and regulations on information disclosure

• Reviewed and evaluated related-party transactions

The SC has not reported any unusual changes in business, investment, or finance during 2014. The SC did not perform any unscheduled inspections during 2014, due to the stability and transparency of activities.

2015 Plan of Action

The SC has established the programs outlined below to achieve the goals set for 2015, evolve the Group’s development strate-gy to adapt to business conditions, raise economic efficiency, improve competitive capabilities, and maintain sustainable development:

• Monitor the suitability and legality of management and operation of the Group’s business activities

• Examine the implementation of the AGM and BOM’s resolutions

• Review quarterly and annual financial statements for accuracy

• Advise the BOM in order to increase capital efficiency, improve asset utilization, and minimize the risks in managing the Group’s business activities

• Implement improved inspection programs for certain new sectors and based on requests from shareholders

• Coordinate activities between the SC, BOM, Executive Committee and shareholders to eliminate overlap and remove duplications of effort

Report of the Executive Committee

Business performance

For 2014, consolidated net revenue reached VND27.7 trillion, and gross profit reached VND10.4 trillion, increases of 51% and 48%, respectively, over 2013. Profit after tax from core businesses reached VND3.7 trillion, a 27% increase over the previous year. All of the Group’s core businesses contributed significantly to the strong revenue growth.

Net revenue from sale of properties reached VND21.8 trillion, an increase of 49% over 2013, primarily from projects launched in prior years, Vinhomes Royal City, Vinhomes Times City, and Vinhomes Riverside.

Net revenue from leasing activities reached VND2.13 trillion,

up 18% from 2013. The increase came from continued revenue growth in stabilized shopping centers, as well as contributions from a full year of the Vincom Mega Malls at Royal City and Times City. Vincom Ha Long also began operation during the fourth quarter of 2014.

Net revenue from hospitality, including Vinpearl resorts and Vinpearl Land amusement parks, reached VND2.11 trillion, up 32% over 2013.

Net revenue from other business segments, including health-care and education, reached VND1.71 trillion.

Evaluation of the Group’s financial condition

Indicator 2014 2013 2012

Asset Ratios

Long-term assets/ Total assets (%) 61.46 47.42 48.42

Short-term assets/ Total assets (%) 38.54 52.58 51.58

Capital structure

Liabilities/ Total Owner’s Equity (%) 69.85 75.43 80.52

(Total Debt)/ Total Liabilities and owner’s equity(%) 36.84 36.14 39.10

Total Owner’s Equity/ Total Liabilities and owner’s equity (%) 30.15 24.57 19.48

Liquidity Ratios

Current Ratio (times) 0.74 0.78 0.43

Quick Ratio (times) 1.42 1.49 1.12

Profitability Ratios

Profit after tax/ Total assets (%) 4.17 9.44 3.31

Profit after tax/ Net Revenue (%) 13.62 38.90 23.36

Profit from core business/ Net Revenue (%) 13.31 15.76 19.63

Profit after tax/ Total Owner’s Equity (%) 13.84 38.40 16.98

Profit from core business/ Total Owner’s Equity (%) 13.52 15.55 14.27



Report of the Executive Committee

Net revenue by sector for 2014

Gross profit by sector for 2014

Sale of properties

Leasing activities

Hospital and related services

Education and related services

Retail activities

Other services

Amusement park and related services

7.63%2.37% 0.83%

1.52%1.44%

7.68%

78.53%

NET REVENUE BY SECTOR FOR 2014

Performance of current business segments

Sale of Residential Properties

For the year, revenue from sale of residential properties was up 49% in comparison with 2013 and reached VND21.8 trillion, accounting for 78.5% of total net revenue.

Vinhomes launched the presale of two new key projects, Vinhomes Central Park in Ho Chi Minh City and Vinhomes Nguyen Chi Thanh – Hanoi, while simultaneously developing Vinhomes Times City – Park Hill. With its prime location in the heart of the Capital, Vinhomes Nguyen Chi Thanh – Hanoi presold nearly 70% after only two sales events. Vinhomes Central Park, Vingroup’s first mega-scale mixed-use project in Ho Chi Minh City, has quickly become center of attention in the real estate market with its environmentally friendly design and The Landmark81. This tower will set a new record for the tallest in Vietnam.

Design, accessibility, affordable luxury, and comprehensive amenities are known trademarks of Vingroup projects. Each project offers customers various facilities such as all-season pools, lounges, tennis, badminton, and basketball courts, or a garden for practicing tai chi. By combining prime location, convenience, well-crafted amenities and excellent services, Vingroup aims to provide customers with five-star living experience. In addition, attractive value bundles and good support packages make ownership a very pleasant experience for customers.

Leasing activities

In 2014, net revenue from leasing activities reached VND2.13 trillion, accounting for approximately 8% of total net revenue. Vincom Retail currently operates shopping centers with nearly 513,690sqm or 43% of the available space of 1,190,000sqm nationwide. In Hanoi, Vincom Retail has 65% market share with 422,500sqm of mall space. The Group has a number of pipeline projects that will significantly increase its current 10% Ho Chi Minh market share in 2015 and beyond.

Hospitality and entertainment

Nationwide, Vinpearl and Vinpearl Land are first choices for both foreign and domestic customers, helping Vinpearl to achieve a high occupancy rate. At the end of 2014, Vingroup opened Vinpearl Phu Quoc (Phase 1), increasing the total number of 2014 Vinpearl hotel rooms to more than 1,600,

doubling the 2013 number. The Group’s first resort project in the North, Vinpearl Resort Ha Long, has already begun construction and is expected to open in 2015.

Education, healthcare

Vinschool K-12 school at Times City opened for its first school year, increasing the total number of K-12 students to 6,300. In addition, Vinmec achieved strong revenue growth which was 133% higher than 2013.

New businesses and projects

Supermarkets and convenience stores

In 2014, Vingroup entered the retail market with a chain of 23 VinMart supermarkets and VinMart+ convenient stores nation-wide, including cities such as Hanoi, Ha Tinh, and Hai Duong. The chain is expected to continue to expand in 2015.

Fashion

VinFashion introduced its EMIGO brand to the market and opened six stores in 2014.

Financial summary

Total Assets

As at 31 December 2014, Vingroup’s total assets were VND90.5 trillion, representing year on year growth of VND14.7 trillion. The increase is largely attributable to a growth in fixed assets which was up by 90% compare to 2013. Other long-terms assets increased 5.4 times due to deposit of potential projects under development.

Total Debt

As at 31 December 2014, Vingroup’s total liabilities to bank and other credit institutions were VND33.3 trillion, of which short-term and long-term loans and borrowings were VND1.32 trillion and VND32.01 trillion, respectively. Total loans and borrowings increased by VND5.9 trillion compared to end of 2013.

Tax Payments

Through 31 December 2014, the Group paid total tax obliga-tions of VND4.2 trillion to the State Budget.

8.04%1.59%

0.83%-0.07%

0.61%

11.87%

77.13%

GROSS PROFIT BY SECTOR FOR 2014

Leasing activities

Hospital and related services

Education and related services

Retail activities

Other services

Hotel, amusement park and related services

Sale of properties

Net revenue Amount (VND billion)

Weight (%)

Sale of properties 21,772 78.53

Leasing activities 2,129 7.68

Amusement park and related services 2,114 7.63

Hospital and related services 657 2.37

Education and related services 230 0.83

Retail activities 421 1.52

Other services 401 1.44

Total 27,724 100

Gross Profit Amount (VND billion)

Weight (%)

Sale of properties 8,052 77.13

Leasing activities 1,239 11.87

Hotel, amusement park and related services 839 8.04

Hospital and related services 166 1.59

Education and related services 86 0.83

Retail activities (7) -0.07

Other services 64 0.61

Total 10,439 100



Corporate Governance Report

Changes in shareholders’ equity and dividend distributions

During the year, bondholders converted USD134.8 million face value of bonds into 72.2 million ordinary shares of the Company. Consequently, share capital of the Company increased by VND722.2 billion (equivalent to 72.2 million ordinary shares at par value of VND10,000/share) and share premium increased by VND2.10 trillion.

On 10 April 2014, the Group completed the re-issuance of 21.6 million treasury shares. Consequently, the value of treasury shares decreased by VND1.38 trillion (21.6 million shares worth VND63,736/share), increasing share premium by VND29.9 billion, after deduction of re-issuance costs and related taxes incurred.

On 24 July 2014, the shareholders of the Company passed Resolution No. 02/2014/NQ-DHDCDVINGROUP authorizing cash and stock dividends to its existing shareholders from retained earnings as at 31 December 2013. Specifically:

• Payment of cash dividends of VND2,149 per share

• Payment of stock dividends to existing shareholders at the ratio of 1,000:487

As at 31 December 2014, the Group’s share Capital was VND14.5 trillion.

Action plan for 2015

In 2015, Vingroup will focus on the following goals:

• Continue to expand the Vinhomes brand as the largest and most trusted property brand in Vietnam

• Complete sales and handover of remaining units in Vinhomes Royal City and Times City Phase 1

• Progress on the development schedule for recently launched projects: Vinhomes Central Park, Vinhomes Nguyen Chi Thanh – Hanoi and Phase 2 of Vinhomes Times City – Park Hill. Launch additional new projects to add to the future pipeline

• On-schedule completion of Vinpearl projects’ expansion: Vinpearl Premium Nha Trang Bay, Vinpearl Premium Golf Land, Vinpearl Resort Ha Long, and Vinpearl Premium Phu Quoc

• Maintain the leadership position in shopping centers by reaching a total of 30 malls by the end of the year, with a true nationwide footprint

• Build on the existing base of stores towards a goal of 100 VinMart Supermarkets and 1,000 VinMart+ convenient stores throughout Vietnam within 3 years and become the leader in the market

• Expand complementary consumer businesses: VinFashion, Adayroi, VinPro, VinDS, and VinEco to contin-ue to enhance the long-term recurring revenue and profit profile of the Group

• Realize synergies between different business units through leveraging the strength of the Vingroup brands by connecting them through business processes and cross-pollination of the best management and most innovative ideas

• Continue to maintain the high performance of regular business operations. Enhance management information systems by building on the successful implementation of a world-class ERP system to give senior management clear, timely updates on the health of each business unit and improve operational efficiency

• Attract and retain talented managers and employees to ensure uninterrupted future growth

• Maintain market leadership position and further leverage advantages of the Group to keep pace with regional and international standards

• Affirm the Group’s sustainable business development strategy in parallel with positive contributions to the community and social activities

• Amplify and implement effective domestic and interna-tional fund raising plans to finance the Group’s projects

Corporate Governance Report

Board of Management Performance

During 2014, the Board of Management (BOM) held meetings with 100% of members in attendance and issued 93 resolu-tions to ratify important policies and amendments regarding the Group’s business activities. These actions covered the following matters:

• Strengthening and reorganizing the structure and oper-ations of the Group and its subsidiaries, and assigning management staff at the Group and P&L levels

• Approving the issuance of corporate bonds

• Approving the dividend payment for shareholders by cash and shares from the retained earnings of 2013

• Approving the increase of share capital related to the issuance of more shares to pay stock dividends and the conversion of international bonds into shares

Board of Management Supervision of Executive Committee Activities

The BOM’s supervision of the activities of the Executive Committee is required to comply with provisions set forth in the charter of the Vingroup Joint Stock Company (“Vingroup”), corporate governance code, internal management rules and applicable statutory laws. Supervision covers the following:

• Monitoring execution of all Vingroup’s projects

• Directing the 2014 Annual General Meeting of Shareholders (AGM) on 18 April 2014

• Supervising the implementation of resolutions issued by the BOM and the AGM, and reviewing the Executive Committee management of all business activities.

• Supervising and directing the timely and transparent disclosure of information per current regulations.

• Supervising the Executive Committee’s management activities to improve business efficiency and to achieve all 2014 targets.

During 2014, remuneration paid to members of the Executive Committee and the Board of Management totaled VND67,396,164,685.

Supervisory Committee Activities

During 2014, the Supervisory Committee (SC) carried out the following duties:

• Evaluating the management and business operations of the BOM and the Executive Committee

• Reviewing the quarterly and annual financial statements of the Group and its subsidiaries and the audit report and the list of audited adjustment entries made by the Group’s independent auditors

• Reviewing the business performance report of the BOM to submit to the AGM

• Holding a monthly review and appraisal of any of the Group’s major transactions with related parties

After conducting the reviews for 2014, the SC did not find any activities that would lead to unscheduled inspections.

Coordinating Activities of the Board of Management, Supervisory Committee, and Executive Committee

The BOM organizes regular meetings to determine effective policies, assess risk management and ensure focused manage-ment to promptly identify problems and improve the efficien-cy of the Group’s operations. Any decision or announcement of the BOM is disseminated to managers of all departments. The Executive Committee oversees operations to ensure they follow the policies and decisions of the BOM.

The SC coordinates closely with the BOM and the Executive Committee. The SC tracks resolutions from the BOM and the Executive Committee as well as internal control policies, ensur-ing that resolutions are implemented in accordance with the law and the internal governance code of the Group.

Changes to the Membership of the BOM, SC and Executive Committee

• Ms. Le Thi Thu Thuy resigned as CEO of Vingroup on 11 February 2014.

• Ms. Duong Thi Mai Hoa was appointed CEO on 11 February 2014.

• Ms. Le Thi Thu Thuy resigned as Vice Chairwoman of Vingroup on 23 May 2014.

• Ms. Nguyen Thi Diu was appointed Deputy CEO on 24 July 2014.



Blueprint for 2015

Industry strategy

Capital strategy

Product strategy

Principles of Management

2015 Development Orientation

Development Strategy

• Generate predictable cash flows by emphasizing businesses with recurring revenue

• Expand business oppor-tunities and grow revenue through regular cycle of new product introductions

• Studied development plans:

• Develop residential proper-ties for sale

• Develop and operate prop-erties with a stable source of recurring revenues.

• Schedule sales of prop-erties to match capital funding cycles

• Utilize pre-sale proceeds and advances from customers to reduce capital needs.

• Balance alternative forms of fund raising to manage cost of capital

• Levergae the advantage of skill and experience to acquire prime loca-tions for development of housing and hospitality projects.

• Continually seek novel products and methods for development of high-end mixed-use projects that combine residential, retail, entertainment, and outdoor components to satisfy customer living requirements and offer exceptional value

• Develop amenity-rich resorts to meet growing demand of medium and high-end market segments

• Increase the products’ value to consumers through a combination of ecosystem links, comple-mentary product brands, and quality services to realize the Group’s vission “to create a better life for the Vietnamese people.”

• Utilize brand advantages and reputation in existing business sectors

• Build solid foundation in Property, Hospitality and Entertainment, Retail, Healthcare, Education, and Agriculture to support long-term development

• Develop and expand high-potential businesses using decades-long time horizon

• Take advantage of links among businesses to create an ecosystem of complementary prod-ucts with comprehensive value to customers

Roles of the Group Orientation• Strategy Orientation• Development Orientation

Support• Optimize financial and

managerial resources• Develop additional

brands• Take advantage of special-

ized skills

Control and Evaluation• Control business prac-

tices and compliance with good governance principles

• Analyze business efficien-cy and results

• Evaluate progress in building Group’s culture and core values

Roles of Business Units (P&Ls)• Promote leadership

roles for all levels of management

• Instill responsibility for business efficiency and results, customer service, reputation and brand

• Build Group’s culture and core values

Increase the prOducts’ vaLue tO cOnsumers thrOugh a cOmBInatIOn Of ecOsystem LInks, cOmpLementary prOduct Brands, and quaLIty servIces tO reaLIze the grOup’s mIssIOn “tO create a Better LIfe fOr the vIetnamese peOpLe.”



Risk measurement

Risk identi�cation

Risk resolution

Transformation of risk into

opportunity

Risk Management

Risk Management

Risk Management Process

During 2014 the Group undertook a major upgrade of its risk management processes. Risks are meticulously managed from the Group level down to the level of individual P&Ls in order to maximize opportunities, minimize risks, and optimize the benefit to business partners, investors, and employees of the Group in particular and Vietnamese society at large.

One year after its inception, the Risk Management Department of the Group has established a risk management program in accordance with standards.

• Risk identification: Given the rapid growth of the Group, risks are inherent in all activities. The task of risk identifica-tion is to recognize even the smallest potential risk.

• Risk measurement: Risk measurement is the task of effec-tively managing risks and quickly resolving problems, if any.

• Risk resolution: A highly skilled and professional team is assigned to quickly resolve the risk and minimize possible consequences.

• Transformation of risk into opportunity: Vingroup goes beyond risk management by transforming certain risks into an opportunity to increase value and efficiency.

Using the established process, major risks of the Group are effectively identified and managed. Some of the Group’s specific risks are described in the following sections.

Liquidity Risks of the Real Estate Market

Liquidity risks inherent in the real estate market arise from the fluctuation of the economy, changes in government policies and supply-demand imbalances in the markets for the Group’s properties. In 2014, the Group established a Real Estate Strategy Department. This department prepares comprehen-sive research reports covering all market segments. These reports have provided useful market information and attempt to predict future trends. Each Group project is carefully evalu-ated based on a feasibility study and SWOT analysis in order to develop pricing options and to plan alternative phases for the project. This is Vingroup’s own unique approach to the real estate market.

Macro-economic Risks

The Group has employed economic studies and regression models to study the relationships among macroeconomic factors such as GDP, the consumer price index, savings ratio, investment ratio, and unemployment rate. Through such studies, forecasts of macroeconomic change in the short term, medium term and long term are made, and used to build finan-cial management tools for use throughout the Group.

Interest Rate and Credit Risks

Risks related to interest rates arise mostly from floating-rate long-term financing. The Group manages interest rate risks through a system of qualitative models (analysis of domestic and international currency markets) and quantitative models (regression analysis based on historical variables). Depending on the sensitivity analysis of each borrowing, with the volatility of interest rates, the Group will adjust its capital structure to maintain a reasonable ratio between fixed-rate and float-ing-rate debt.

Credit risk arises when partners fall into insolvency. The Group manages credit risk by analyzing the risk profile of each partner, thereby creating different business policies for differ-ent partner categories.

Exchange Rate Risks

The exchange rate risk is the risk that the future value of cash flows is reduced due to unfavorable changes of the exchange rate. Understanding the importance of foreign exchange risk management, the Group performs analysis and makes forecasts of exchange rate volatility based on domestic and international macro models in order to prepare appropriate action plans and to forecast foreign currency policies.

Material Price Risks

The fluctuation in the cost of construction materials can signifi-cantly impact the project costs and the Group’s profit.

The Group manages its material price risk by closely monitor-ing the purchasing and inventory management process. In addition, the Group has conducted analyses of price trends and has maintained close links with a network of reputable suppliers to minimize the consequences of unfavorable changes in materials markets, further ensuring stable inputs into its projects.

Key Manager Risks

The Group’s rapid growth has increased demand for key and experienced managers. Vingroup constantly focuses on human resource management and undertakes improvements in recruitment, training, salary, bonus, and other incentives to maintain a stable pool of management talent. During 2014, Vingroup established a Training and Talent Development Department and launched a systematic program to develop talent by training key staff members who demonstrate the potential to assume increased responsibility.

Operational Risks

Operational risks are potential adverse effects on the Group due to systems, processes, human factors, and external events. In 2014, Vingroup successfully implemented tools to collect and report data loss and established a system of operational regulations, policies and processes throughout the Group. Using these tools, Vingroup has focused on training and improving the quality of human resources to minimize oper-ational risks due to human factors, as well as implementing operational risk assessment. These steps have contributed to an improved risk management culture in the Group.



Human Resource Management

Human Resource Management

Human Resources

Number of Employees and Average Income

Ph.D. or Master’s Degree

Bachelor’s Degree

Below Bachelor ‘s Degree60.7%

2.3%

37%

2014 EMPLOYEE DISTRIBUTION BY EDUCATION

From 25 to 35

Under 25

From 35 to 45

Over 45

47.9%

12.3%

4%

35.8%

2014 EMPLOYEE DISTRIBUTION BY AGE

Male

Female46.7% 53.3%

2014 EMPLOYEE DISTRIBUTION BY GENDER

2010 2011 2012 2013 2014 Growth

Number of Employees 936 2,150 5,562 8,731 17,312 98%

Average IncomeVND million per month

8.5 9.1 7.8 9.1 10.0 10%

Working Conditions

Vingroup’s work schedule

Vingroup’s work schedule is eight hours per day with 5.5 days per week required of white-collar and six days per week required of blue-collar employees. In the case of tight dead-lines, the Company may require employees to work overtime. Vingroup offers overtime compensation and upholds the lawful rights of employees.

All employees are entitled to public holidays, vacation, and paid personal days as stipulated by the National Labor Law.

Work environment

Vingroup is committed to creating a professional work environment so that employees can realize their potential. White-collar employees are provided comfortable, modern, airy offices and regular health checks. Blue-collar workers are supplied with uniforms and all safety and sanitation equip-ment needed for their jobs. The Group strictly adheres to all labor safety regulations.

Labor Regulations

The Group and its subsidiaries keep abreast of labor regula-tions in accordance with the law. The Group’s labor standards have been registered and approved by the Hanoi Department of Labor – Invalids and Social Affairs.

Allowances include: mobile phone service, meals, gasoline, and employee shuttle buses to and from work.

Recruitment

To reinforce the idea, “Vingroup – Where the Best Gather and Grow,” the Group has recruited a skilled, progressive, highly capable team with tremendous ability in numerous fields. Vingroup aims to attract highly competent, qualified candi-dates who are interested in a dynamic work environment that is focused on speed, creativity and efficiency. At Vingroup, every individual can bring his or her full creativity and exper-tise to bear.

Every job has specific selection criteria, but all workers share the same basic requirements: appropriate qualifications, desire for career advancement, a strong sense of responsibility, and self-discipline. Managers must be committed to the Group’s core values, be willing to acquire new skills, have a creative spirit, and possess solid teamwork, management and lead-ership skills. The requirements for senior positions are more stringent, including relevant work experience, good judgment, flexibility, and decisiveness as well as excellent analytical and problem-solving skills.

Remuneration, bonuses and benefit policies

The Group has designed compensation and reward policies commensurate with workers’ positions, skills and qualifications that accurately assess their competence and performance and rewards them appropriately. Vingroup motivates employees to do their best work and improve productivity, quality and efficiency.

Salary and Insurance

Vingroup salaries are higher than the average for other busi-nesses in the real estate sector. In 2014, the Company raised salaries based on results and contributions to the Group. The Company has a very competitive salary policy for outstanding staff with extensive experience in their fields. This policy helps to retain current employees and to attract new talent over the long-term.

Social insurance, health insurance and unemployment insur-ance are provided in accordance with the law, and the Group also purchases additional life insurance and personal accident coverage for all employees.

Bonus policies

The Group has bonus policies to recognize and reward staff achievements and contributions to departments and groups. The details of bonus policies are circulated to all managers and employees.

Types of Commendations

Extraordinary achievement awards, commendations and rewards given to staff members and teams who make signifi-cant contributions to the successful completion of projects and campaigns, “Good People, Good Deeds Awards,” and periodic commendations and rewards.

Forms of Commendations

Certificates at P&L and Group levels, cash rewards, travel rewards (domestic or foreign), promotion, and salary increase.

Benefits

Benefit policies have been well developed and updated regu-larly by the Group’s management to maintain a high level of benefits for employees.

Vingroup has built a multifunction sports complex where employees can exercise regularly.

The Group has also established a “Staff Assistance Fund” to assist employees and their family members if they face extreme hardship. Additionally, employees are entitled to pref-erential treatment when using the Group’s services such as the Vinpearl Resort, Vinpearl Luxury as well as medical services at Vinmec International Hospital and education for their children at Vinschool.


Vingroup Joint Stock Company | Annual Report 2014072 073

Union

Vingroup has established a Trade Union and a Communist Party cell (founded in 2014) to improve communications, soli-darity, and motivation, and to uphold the Group’s culture and prestige. The Group’s Party cell was evaluated as an outstand-ing unit, and its Trade Union was recognized as a leading unit of Long Bien District and Hanoi.

Vingroup has an Activities Committee to cultivate teamwork and fitness among the Group’s employees. The Activities Committee works with employees to plan sports events such as football, tennis, badminton, Game show, Monthly and Quarterly Festivals, Team Building, the Vingroup Marathon, and many other events. Vingroup believes that its support of these events is helpful to strengthening its corporate culture.

In addition to internal activities, the Group also encourages employees to participate in charity activities. Employees together participate in volunteer activities, collection drives for food aid, warm clothes and books to give to orphans and the poor in remote areas throughout the country.

Staff Training

Vingroup has training programs for all Group employees. These programs include orientation programs for new employees, skills training for staff members and management training programs for supervisors.

The mandatory training program for new employees includes: Orientation on corporate culture, rules, and regulations; General knowledge of the group’s products and services; Training program prescribed by the State; Training on standard work processes by sector; Skills training that is unique to each business segment.

Vingroup also has a soft-skills training program which covers time management and planning, positive thinking, tele-phone communications, motivated communication, consci-entious services, quality control, mentoring, and complaint resolution.

The management training program emphasizes subordinate development, communication skills, critical thinking, and preparation for leadership. In each business segment, there is a management training program for senior managers. Mid-level managers participate in the Crestcom training program. The management training program for potential managers will focus on managers who are chosen to be the key management resources.

In addition to general professional development and skills training programs described above, several specific campaigns were implemented during 2014. These include: 12H programs, known as “Transform to Succeed,” Momentum Transfer program and the Core Values program, the “60 Training Days” Campaign, which has been implemented across all business units, the “Work Culture” training program for all employees. Business units implement various specialized programs such as “Initiative Star” at Vincom Construction, “90-Day Transformation,” “First Impressions” Campaign to prepare for grand opening events at Vinpearl Resort Phu Quoc, Vincom Ha Long, and other new facilities, “Friendly Impressions” Campaigns and “5 Things To Do And Not Do,” “Smiling” Campaign at the hotels and other facilities, “The Leader in Me” Program by Franklin Covey for 367 teachers, staff and parents of Vinschool students, staff training for former Ocean Mart staff to facilitate transferring the brand to VinMart, and the “Skill Contest” which identifies individual employees’ skills and matches them with appropriate training programs.



Corporate Culture

Corporate Culture

Spanning more than a decade of development and growth, Vingroup team members have combined their skills, experi-ence, and values to form a unique corporate culture that is the foundation for the Group’s success today.

Vingroup brings together the most capable Vietnamese and international professionals. Members of the Vingroup team are chosen for their intellect, discipline, talent, work ethic, and determination to contribute to the development of Vietnam.

Every Vingroup employee must demonstrate initiative, eager-ness to learn, commitment to self-improvement and passion for the Group’s culture as expressed in its six core values.

Vingroup’s working culture includes speed, efficiency and discipline. This working culture contributes to the strength that helps Vingroup excel in every sector.

• Put country and national pride first.

• Respect the rule of law.

• Lift Vietnam’s international image through quality products and services.

• Help those less fortunate.

• Demonstrate a spirit of optimism.

• Conserve natural resources and protect the environment.

• Believe in the Vingroup system, and dedicate all efforts to achieving the goals of the nation and the Group.

• Demonstrate optimism and enthusiasm for one’s assigned work.

• Take initiative and stay dedicated.

• Be humble in victory and gracious in defeat.

• Listen, learn and improve one’s skills.

• Be daring, take risks and seize opportunities.

• Place the customer first by providing the highest quality of service to customers, colleagues, and partners.

• Maintain the highest standards for quality and efficiency.

• Plan carefully and demonstrate creativity in finding ways to achieve goals.

• Demonstrate personal acceptance of responsibility without blame or excuse.

• Adapt to business and working conditions with creativity.

• Build the Group’s brand and reputation while protecting its intellectual property.

• Care for your Company as if it were your home.

• Work together toward common goals.

• Uphold company principles to prevent the misconduct of others.

• Lend colleagues a helping hand when needed.

• Share knowledge and experience by giving and receiving constructive feedback.

• Train and develop subordinates while creating opportunities for them to advance.

• Remember that customers pay the bills.

• Be friendly, respectful and professional while doing the utmost to deliver support to customers.

• Keep promises to customers.

• Balance the interests of customers with those of the Group.

• Continuously improve service quality to satisfy customer needs.

• Anticipate trends to lead the market with the right products and services for customers.

• Demonstrate mutual respect to achieve mutual benefits.

• Build sustainable partnerships with credibility, reliability and trust.

• Follow the principle that good competition makes the best better.

• Learn from competitors’ strengths and weaknesses.

• Encourage quality competition in each market to raise the standards of performance through-out Vingroup’s businesses, leading to faster development and a better society.

On Job Duties and Responsibilities

On Society

On Colleagues

On Customers

On Partners

On Competition



Vincom Mega Mall Royal CityThe first underground shopping mall in Vietnamand the largest such mall in Southeast asia.

“Leave the world a bit better” – Ralph Waldo Emerson

080 Sustainable Development Strategy

081 Economic Growth

082 Social Responsibility

083 Environmental Programs

SUSTAINABLE deVeLOPMeNT


ECONOMIC GROWTH

SOCIAL RESPONSIBILITY

ENVIRONMENTAL PROTECTION

Balance the rights of employees,customers and shareholders

Improve social welfare

Create social community

Uphold “Small Actions Produce Great Results” mindset

Promote environmentally friendly products

Create a better life for future generations in harmony with nature

Contribute to the State Budget

Develop innovative products for the community

Enhance Vietnam’s image as an attractive investment among

developing economies

Sustainable Development Sustainable Development Strategy/ Economic Growth

a Strategy for Sustainable Development

Vingroup is one of the leading private companies in Vietnam. The Company has multiple brands in five business sectors. These sectors are: properties, hospitality and entertainment, consumer retail, healthcare and education. Vingroup has built a strong market position and busi-ness reputation. The Group’s strategy for sustainable development is based

As a result of its growth in revenue and profits, Vingroup continues to be a major taxpayer and is therefore one of the leading contributors to the State budget. In 2014, Vingroup was the leading taxpayer in the private enterprise category and ranked seventh among the top ten largest corporate taxpayers in Vietnam.

As a leading real estate developer, Vingroup has been a pioneer in creating models of modern and sustainable urban commu-nities, contributing to Vietnam’s image as a dynamic and flourishing nation. In Hanoi, Vinhomes Times City, Vinhomes Royal City, and Vinhomes Riverside are the first projects which offer modern and eco-friendly urban services. These services increase the quality of life and improve the living environment for the community. As a result of this leadership, these projects have become the gold standard and are considered the most livable urban areas in Vietnam. They inspired further develop-ment in the Capital.

During 2014, Vingroup continued to develop new projects throughout the country. These projects not only improve the quality of life at these communities but also serve as a catalyst for further local development. Vingroup has always recognized its missions to bring quality services to customers through-out the nation, provide jobs for thousands of people and contribute to social stability and economic growth.

economic growth

on three factors: economic growth, social contribution, and environmental protection. In accordance with this strategy, Vingroup has been building a diverse ecosystem of premium products and services that mutually reinforce each other to realize the Group’s mission “to create a better life for the Vietnamese people.”

Top 10 Largest Corporate Taxpayers in Vietnam

Summary of Vingroup’s Contribution to the State Budget (2010 – 2014)

No Corporate

1 VIETNAM OIL AND GAS GROUP

2PETRO VIETNAM EXPLORATION AND PRODUCTION CORPORATION

3 VIETTEL GROUP

4VIETNAM POSTS AND TELECOMMUNICATIONS GROUP

5 PETRO VIETNAM GAS JOINT STOCK CORPORATION

6 VIETNAM MOBILE TELECOM SERVICES COMPANY

7 VINGROUP JOINT STOCK COMPANY

8VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE

9 VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY

10 HONDA VIETNAM CO., LTD.

Year Contribution to State Budget(VND billion)

Increase/ Decrease

(%)

2010 537 N/A

2011 1,708 218.06

2012 1,593 -6.75

2013 2,604 63.49

2014 4,166 59.97

Source: Vietnam Report (Total corporate income tax of Top 10 in V1000 list of 2014 based on 2013 financials: VND64 trillion).


Social Responsibility/ Environmental Programs

Environmental ProgramsVingroup understands that effective and efficient resource usage is important to the sustainable development of the company. As a pioneer enterprise in real estate and hospitality committed to sustainable development, the Group is determined to build a green, innovative, and eco-friendly environment not only for employees but also for customers.

Creating Green Products and Nature-Friendly Living Environment

Vingroup believes in the need to protect the environment in the design, construc-tion and operation of all of its properties: resort complexes, shopping malls, urban areas, offices and apartments. The devel-opment and architectural teams dedicate themselves to this goal in every project,

aiming to build upscale complexes that are well planned and organized, compre-hensive, and sustainably developed. Such projects can protect the natural envi-ronment by efficiently utilizing space to create a modern living or resort complex that exists in harmony with nature. All of Vingroup’s projects are built according to the standards appropriate for such struc-tures. They are energy-saving buildings

following green architecture design principles. Among the Group’s green projects are its very first developments Vinpearl Resort Nha Trang and Vincom Ba Trieu, along with recently completed urban communities including Vinhomes Royal City, Vinhomes Times City, Vinhomes Riverside, Vinhomes Central Park, Vinpearl Premium Da Nang, and Vinpearl Phu Quoc.

Sustainable Development

Building a Green Work Environment

One of the Group’s slogans is “Small Actions Produce Great Results.” The concept behind this slogan is that all Vingroup members can work together to build a green, clean and well-organized work environment.

Many Vingroup buildings include green areas to remind people to strive for efficiency in the use of limited resources. The Group believes that raising employee awareness of the need to protect our environment will promote the many small actions that will produce significant results for the entire society.

Social Responsibility

Vingroup’s corporate philosophy places a high value on maintaining a pioneering spirit that is based on the intelli-gence, courage, patriotism and humanity of the Vietnamese people. As part of this philosophy, Vingroup has always been concerned with the well-being of its employees. The Group is actively engaged in community-building and environmental protection programs. These programs are the hallmark of companies that are concerned with maintaining a reputation for socially responsible management.

During 2014, Vingroup continued its practice of making contributions to social programs by donating to charitable social activities. Among the programs supported by the Group are those which aid the poor, wounded veterans, the families of martyrs, recipients of Vietnamese Heroic Mothers Award, orphans, and other social beneficiaries. The company also supported the healthcare sector, built cultural facilities, promoted education and funded incentives for higher learning.

Among the specific programs Vingroup supported in 2014 is Bac Ninh’s Phat Tich Custodian Care and Talent Development Facility (Phat Tich Center):

• Established by Vingroup’s Kind Heart Fund

• Now home to more than 100 orphans and elderly citizens

• Provides housing while also caring for the mental health of the elderly and supporting the comprehensive devel-opment of children

These are typical of the Group’s charitable activities with meaningful and lasting results by providing education, train-ing, and foster care to support disadvantaged children to become productive, capable citizens, which helps to alleviate the State’s social work burden.

Vingroup also sponsors the Promotion Fund for Vietnamese Football Talent (PVF), which was set up in 2010 to develop an effective system for training young footballers, something then lacking in Vietnam. Since 2010, the Fund has held six PVF courses with 176 participants who then repeatedly go on to win important tournaments, including the Vietnam National Youth Championship, the South East Asia, plus the Pan – Asia Youth tournaments. In 2014, the Fund continued its impressive achievements by winning a National U-17 Football Tournament, the Thai Son Nam Cup. This victory confirms PVF’s national reputation in Vietnam and contributes to the long-term goal of earning a place for Vietnam on the regional and global football map.

Collectively, these programs demonstrate Vingroup’s commit-ment to keeping its business development in line with human-itarian, social and charitable goals. The Group has committed to maintain its involvement in such programs.

Another of Vingroup’s initiatives is to contribute to the devel-opment of management talent so that the Group will build a pool of management talent possessing the skills, attitudes, and leadership capabilities needed to enable the Company to achieve its goals. At the beginning of 2015, Vingroup announced the USD10 million “Future Vietnamese Manager Scholarship Fund” that will be used to strengthen the training and development of promising young future general manag-ers to make them qualified to manage and operate premium service businesses in the hotel, resort, shopping mall, entertainment, education, and healthcare sectors that meet demanding international standards.

the charItaBLe tradItIOn Of vIetnamese cuLture Is nOt OnLy aBOut takIng care Of empLOyees But aLsO aBOut respOnsIBILIty tO the cOmmunIty, sOcIety, and the envIrOnment.


vincom Ba trieu

Vincom Ba Trieu is designed so that it makes full use of natural light and artificial energy. This complex received the Energy Efficient Buildings Award. The three towers of this complex are equipped with a comprehensive

vinhomes nguyen chi thanh – hanoi

Vinhomes Nguyen Chi Thanh – Hanoi has a total area of 13,043 square meters spread over two towers, one for luxury apartments and the other a 30-story Grade-A office and retail building. The focal point of Vinhomes Nguyen Chi Thanh – Hanoi is the atrium space, which

vinhomes royal city

Vinhomes Royal City features botanical parks, a large plaza and a unique sky garden. Gardens are modern in design but incorporate Vietnamese traditions,

vinhomes riverside

Vinhomes Riverside – the Peaceful Land was based on a unique design that includes a system of canals, botan-ical gardens and a low-density space

vinhomes times city

Vinhomes Times City is designed as a modern, eco-friendly urban area inspired by Singapore. It includes green spaces and a lake that cover nearly 100,000 square meters. Times City has made a profound impact by creating

vinhomes central park

Vinhomes Central Park is a green, modern and luxurious urban community in Vietnam. Inspired by the world-famous Central Park in New York City, Vinhomes Central Park has a construction density of only 16% and devotes 14 hectares to parks, the city’s largest green space

air-conditioning system controlled by computer, minimizing energy use. The roof-top ventilation system continuously circulates air through the towers to stabi-lize the temperature and humidity in all parts of the complex.

provides natural lighting and fresh air for each apartment. It is also among one of the few apartment complexes with private gardens. With an open design in a green space, Vinhomes Nguyen Chi Thanh – Hanoi is able to provide an exceptional quality of life to its residents.

vincom dong khoi

Vincom Dong Khoi was the first green building in Vietnam and was built in accordance with energy-saving design standards. These standards have since become one of the criteria used to evalu-ate world-class property developments.

Vinmec International Hospital has been highly praised for being environmen-tally friendly. The rooms are designed and equipped to meet World Health Organization standards. The Central Sterilizing Department operates to stop cross-infection from unsterilized equip-ment and supplies. The hospital’s water is filtered through activated charcoal and

including an area devoted to Tai Chi, a promenade, a pavilion, a lounge, and flower gardens.

utilization ratio. The complex also brought in a large number of fish and bird species to enhance the environment and enrich the area’s ecosystem.

a clean, green and eco-friendly living space, helping to change the face of the landscape in Southern Hanoi. Vinpearlland Aquarium Times City gathers thousands of various sea creatures, offering a phenome-nal experience in Ha Noi.

along the Saigon River. With river front-age stretching more than 1 kilometer, Vinhomes Central Park offers a green living area in the heart of Ho Chi Minh City and helps to clean the air for the rest of the City.

In 2013, Vincom Dong Khoi’s energy-efficient technology solutions won the Energy Efficient Architecture Award from the Vietnamese Government’s Department of Science, Technology and Environment in the Ministry of Construction and the Energy Conservation Center of Ho Chi Minh City.

disinfected by ozone and UV systems to ensure patient safety and to minimize the spread of water-borne diseases. Vinmec also employs an advanced waste-treatment system and has built high-quality medical and other waste dumps that comply with the medical sector’s most stringent standards.

Sustainable Development Environmental Programs

vinpearl phu Quoc

Vinpearl Phu Quoc has 750 rooms in the hotel and villas, a Vinpearl Land amuse-ment park, and an international-standard 27-hole golf course. The area is not just the new destination for tourism and recreation but also a place to experience natural conservation and development of biological diversity in Phu Quoc, with the large-scale Aquarium housing tens of

vinpearl premium vacation properties

Vinpearl Premium resorts and villas have been one of the highlights of Vingroup’s achievements in 2014. These include the coastal hotels and five-star villas along the world’s most beautiful beaches in Da Nang, Nha Trang, and Phu Quoc. With innovative programs to help owners

thousands of sea creatures. Vinpearl Land Phu Quoc’s designation as the host site for the Miss Vietnam Pageant 2014 attracted many tourists to the island and contribut-ed to Phu Quoc’s strong growth in tourism revenue. In 2014, Phu Quoc’s revenue from tourism surpassed VND2.2 trillion, 84% higher than in 2013.

lease out unused time in their vacation properties, Vinpearl Premium offers buyers an opportunity to own and enjoy a resort set on a piece of a beautiful, green nature, while earning an attractive return on investment.

vinmec international hospital


VinschoolVinschool became an admissionsphenomenon by enrolling a total of 6,300 students.

Transparency is the basis for trust and confidence.

090 VAS Consolidated Financial Statements

170 Summary of IFRS Consolidated Financial Statements

176 Reconciliation between VAS and IFRS Consolidated Income Statements

CONSOLidaTed FINANCIAL STATEMENTS


VAS consolidated financial statements General information/ Report of Management

general information Report of Management

The company

Vingroup Joint Stock Company (“the Company”) is a joint stock company established in Vietnam in accordance with the Business Registration Certificate No. 0103001016 issued by the Hanoi Department of Planning and Investment on 3 May 2002 and the Business Registration Certificate No. 0101245486 re-issued on 12 May 2010. The Company also subsequently received the 55th amended Business Registration Certificate dated 18 November 2014.

The Company’s shares were officially listed on the Hochiminh City Stock Exchange (“HOSE”) from 19 September 2007 in pursuant to Decision No.106/QD-TTGDHCM issued by the Director of HOSE on 7 September 2007.

The current principal activities of the Company in this year are to carry out investment activities and to provide the general administrative services.

The Company’s head office is registered at No. 7, Bang Lang 1 street, Vinhomes Riverside Eco-urban Area, Viet Hung ward, Long Bien district, Hanoi, Vietnam. Its branch is located at No. 72, Le Thanh Ton and No. 45A, Ly Tu Trong street, Ben Nghe ward, district 1, Hochiminh city, Vietnam.

Board of directors

Members of the Board of Directors during the year and at the date of this report are:

Board of Supervision

Members of the Board of Supervision during the year and at the date of this report are:

Management

Members of the Management during the year and at the date of this report are:

Pham Nhat Vuong Chairman

Le Khac Hiep Deputy Chairman

Pham Thuy Hang Deputy Chairwoman

Pham Thu Huong Deputy Chairwoman

Nguyen Dieu Linh Deputy Chairwoman

Le Thi Thu Thuy(Resigned on 23 May 2014)

Deputy Chairwoman

Vu Tuyet Hang Deputy Chairwoman

Ling Chung Yee Roy Member

Mai Huong Noi Member

Marc Villiers Townsend Member

Joseph Raymond Gagnon Member

Management of Vingroup Joint Stock Company (“the Company”) is pleased to present its report and the consolidated financial statements of the Company and its subsidiaries (collectively referred to as “the Group”) for the year ended 31 December 2014.

Management’s responsibility in respect of the consolidated financial statements

The management is responsible for the consolidated financial statements of each financial year which give a true and fair view of the consolidated financial position of the Group and of the consolidated results of its operations and its consolidated cash flows for the year. In preparing those consolidated financial statements, management is required to:

• Select suitable accounting policies and then apply them consistently;

• Make judgements and estimates that are reasonable and prudent;

• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the consolidated financial statements; and

• Prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue its business.

Management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the consolidated financial position of the Group and to ensure that the accounting records comply with the applied accounting system. It is also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Management confirmed that it has complied with the above requirements in preparing the accompanying consolidated financial statements for the year ended 31 December 2014.

Statement by Management

Management does hereby state that, in its opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2014 and of the consolidated results of its operations and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of consolidated financial statements.

Nguyen The AnhHead of Boardof Supervision

Dinh Ngoc Lan Member

Do Thi Hong Van Member

Hoang Thuy Mai Member

Nguyen Thi Van Trinh Member

Duong Thi Mai Hoa(Appointed on 11 February 2014)

General Director

Le Thi Thu Thuy(Resigned on 11 February 2014)

General Director

Mai Huong Noi Deputy General Director

Pham Van Khuong Deputy General Director

Nguyen Dieu Linh Deputy General Director

Dang Thanh Thuy Deputy General Director

Vu Tuyet Hang Deputy General Director

Nguyen Thi Diu(Appointed on 24 July 2014)

Deputy General Director

Legal representative

The legal representative of the Company during the period from 1 January 2014 to 10 February 2014 is Ms Le Thi Thu Thuy and from 11 February 2014 to the date of these financial statements is Ms Duong Thi Mai Hoa.

Auditors

The auditor of the Company is Ernst & Young Vietnam Limited.

For and on behalf of management:

Duong Thi Mai Hoa General Director

Hanoi, Vietnam 16 March 2015


Independent auditors’ report/ Consolidated balance sheet

Consolidated balance sheet

Code ASSETS Notes Ending balance Beginning balance

100 A. CURRENT ASSETS 34,875,607,760,407 39,844,677,687,769

110 I. Cash and cash equivalents 5 7,607,513,719,673 7,534,048,703,295

111 1. Cash 1,709,677,822,085 830,198,384,281

112 2. Cash equivalents 5,897,835,897,588 6,703,850,319,014

120 II. Short-term investments 6 6,168,171,238,968 5,512,841,034,628

121 1. Short-term investments 6,245,416,256,668 5,564,825,407,070

1292. Provision for diminution in value of short-term investments (77,245,017,700) (51,984,372,442)

130 III. Current accounts receivable 2,863,604,538,747 3,791,905,544,739

131 1. Trade receivables 7 833,001,466,347 906,583,310,596

132 2. Advances to suppliers 1,459,215,551,015 1,067,203,605,764

135 3. Other receivables 8 626,203,073,987 1,848,565,858,757

139 4. Provision for doubtful debts (54,815,552,602) (30,447,230,378)

140 IV. Inventories 9 16,598,350,983,526 18,913,717,422,013

141 1. Inventories 16,653,246,649,293 18,922,655,956,360

149 2. Provision for obsolete inventories (54,895,665,767) (8,938,534,347)

150 V. Other current assets 1,637,967,279,493 4,092,164,983,094

151 1. Short-term prepaid expenses 10 175,767,407,122 112,995,880,636

152 2. Value-added tax deductible 549,937,309,384 235,932,586,540

154 3. Tax and other receivables from the State 29,443,682,396 20,328,613,273

158 4. Other current assets 11 882,818,880,591 3,722,907,902,645

200 B. NON-CURRENT ASSETS 55,609,699,439,453 35,927,970,738,026

220 I. Fixed assets 22,319,696,291,092 11,724,114,750,744

221 1. Tangible fixed assets 12 10,526,340,741,649 5,645,716,640,220

222 Cost 12,125,926,443,789 6,707,573,344,357

223 Accumulated depreciation (1,599,585,702,140) (1,061,856,704,137)

227 2. Intangible fixed assets 13 520,367,279,711 504,491,185,676

228 Cost 613,140,927,890 576,932,515,265

229 Accumulated amortisation (92,773,648,179) (72,441,329,589)

230 3. Construction in progress 14 11,272,988,269,732 5,573,906,924,848

240 II. Investment properties 15 15,399,141,224,526 13,628,734,369,628

241 1. Cost 16,337,225,559,687 14,148,672,844,583

242 2. Accumulated depreciation (938,084,335,161) (519,938,474,955)

250 III. Long-term investments 17 4,949,144,342,213 4,532,383,326,606

252 1. Investments in associates 1,030,494,731,370 1,829,738,207,290

258 2. Other long-term investments 3,921,649,610,843 2,705,645,119,316

2593. Provision for diminution in value of long-term investments (3,000,000,000) (3,000,000,000)

260 IV. Other long-term assets 6,727,259,904,943 1,238,826,097,403

261 1. Long-term prepaid expenses 18 1,770,073,401,504 1,195,471,414,505

262 2. Deferred tax assets 36.2 56,584,412,187 42,623,898,681

268 3. Other long-term assets 19 4,900,602,091,252 730,784,217

269 V. Goodwill 20 6,214,457,676,679 4,803,912,193,645

270 TOTAL ASSETS 90,485,307,199,860 75,772,648,425,795

Currency: VND

VAS consolidated financial statements

independent auditors’ reportTo: The Shareholders of Vingroup Joint Stock Company

We have audited the consolidated financial statements of Vingroup Joint Stock Company (“the Company”) and its subsidiaries (collectively referred to as the “Group”) as prepared on 16 March 2015 and set out on pages 6 to 88, which comprise the consolidated balance sheet as at 31 December 2014, the consolidated income statement and consolidated cash flow statement for the year then ended and the notes thereto.

Management’s responsibility

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of consolidated financial statements, and for such internal control as management determines is necessary to enable the preparation and presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements give a true and fair view, in all material respects, of the consolidated financial position of the Group as at 31 December 2014, and of the consolidated results of its operations and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of consolidated financial statements.

Tran Phu Son Deputy General Director Audit Practising Registration Certificate: 0637-2013-004-1

Nguyen Quang Trung Auditor Audit Practising Registration Certificate No.: 1938-2013-004-1

Hanoi, Vietnam 18 March 2015

Ernst & Young Vietnam Limited

as at 31 December 2014


Consolidated balance sheet

Consolidated balance sheet (continued) as at 31 December 2014 Off balance sheet itemsCurrency: VND

Code RESOURCES Notes Ending balance Beginning balance

300 A. LIABILITIES 63,200,673,940,820 57,156,105,584,507

310 I. Current liabilities 24,603,801,398,740 26,675,265,408,188

311 1. Short-term loans and borrowings 21 1,321,194,605,718 3,023,470,785,606

312 2. Trade payables 1,628,746,222,883 1,158,828,828,873

313 3. Advances from customers 22 6,581,278,862,138 16,150,044,422,734

Down payment from customers for purchase of inventory properties

3,299,807,295,074 11,686,251,139,746

Advances from other customers 3,281,471,567,064 4,463,793,282,988

314 4. Statutory obligations 23 1,037,104,329,754 2,107,765,031,095

315 5. Payables to employees 55,874,576,362 41,416,688,481

316 6. Accrued expenses 24 3,645,659,661,277 3,091,940,291,762

Accrual for bond and loan interests 1,371,617,698,518 1,267,702,309,535

Accrual for construction costs 1,254,563,464,393 864,555,492,034

Other accrued expenses 1,019,478,498,366 959,682,490,193

319 7. Other payables 25 10,333,943,140,608 1,101,799,359,637

Payment from customers under deposit, loan and other agreements

7,847,174,664,786 88,740,877,355

Other payables 2,486,768,475,822 1,013,058,482,282

330 II. Non-current liabilities 38,596,872,542,080 30,480,840,176,319

333 1. Other long-term liabilities 26 6,413,683,795,382 6,023,851,978,161

334 2. Long-term loans and debts 27 32,014,819,167,101 24,360,164,494,408

335 3. Deferred tax liabilities 36.2 168,369,579,597 96,823,703,750

400 B. OWNERS’ EQUITY 20,396,041,296,100 14,471,837,198,264

410 I. Capital 28.1 20,396,041,296,100 14,471,837,198,264

411 1. Share capital 28.1 14,545,550,980,000 9,296,036,790,000

412 2. Share premium 28.1 4,582,534,150,067 1,781,641,494,624

414 3. Treasury shares 28.4 (2,974,924,074,484) (4,351,625,014,572)

418 4. Financial reserve fund 28.2 22,845,114,930 17,845,114,930

420 5. Undistributed earnings 28.1 4,220,035,125,587 7,727,938,813,282

439 C. MINORITY INTERESTS 29 6,888,591,962,940 4,144,705,643,024

440 TOTAL LIABILITIES AND OWNERS’ EQUITY 90,485,307,199,860 75,772,648,425,795

ITEMS Ending balance Beginning balance

Foreign currencies

United States dollar 1,322,830 1,346,262

Euro 300 100

Singapore dollar 20 -

Japanese yen 70,000 63,000

British pound 150 -

Canadian dollar 15 -

Hong Kong dollar 300 1,000

Australian dollar - 1,000

Ngo Nguyet Hang Preparer

16 March 2015

Nguyen Thi Thu Hien Chief Accountant




Consolidated income statement/ Consolidated cash flow statement

Consolidated income statement for the year ended 31 December 2014

Consolidated cash flow statement for the year ended 31 December 2014Currency: VND Currency: VND

Code ITEMS Notes Current year Previous year

01 1. Revenue from sale of goods and rendering of services 30.1 27,726,701,600,235 18,379,268,633,216

02 2. Deductions 30.1 (3,068,229,199) (1,629,787,510)

103. Net revenue from sale of goods and rendering of services 30.1 27,723,633,371,036 18,377,638,845,706

11 4. Cost of goods sold and services rendered 32 (17,284,911,479,916) (11,346,984,128,307)

205. Gross profit from sale of goods and rendering of services 10,438,721,891,120 7,030,654,717,399

21 6. Finance income 30.2 1,346,022,091,036 6,436,048,755,221

22 7. Finance expenses 33 (3,491,052,587,060) (1,943,627,332,561)

23 In which: Interest expense (2,711,269,664,974) (1,459,922,785,660)

24 8. Selling expenses (739,332,476,177) (450,072,453,875)

25 9. General and administrative expenses (2,170,716,923,462) (1,466,422,267,061)

30 10. Operating profit 5,383,641,995,457 9,606,581,419,123

31 11. Other income 34 261,925,884,973 135,646,492,056

32 12. Other expenses 34 (227,116,582,678) (56,842,117,086)

40 13. Other profit 34,809,302,295 78,804,374,970

45 14. Shares in net (loss)/profit of associates 17.1, 31 (8,770,659,254) 54,700,187,785

50 15. Profit before tax 5,409,680,638,498 9,740,085,981,878

51 16. Current corporate income tax expenses 36.1 (1,653,273,503,894) (2,594,314,637,696)

52 17. Deferred income tax income 36.2 19,638,606,879 3,516,776,375

60 18. Net profit after tax 3,776,045,741,483 7,149,288,120,557

Attributable to

61 18.1. Minority interests 29 617,463,065,409 369,775,972,604

62 18.2. Equity holders of the parent 28.1 3,158,582,676,074 6,779,512,147,953

70 19. Earnings per share 38

Basic 2,447 5,310

Diluted 2,344 5,089


I. CASH FLOWS FROM OPERATING ACTIVITIES

01 Profit before tax 5,409,680,638,498 9,740,085,981,878

Adjustments for:

02 Depreciation and amortisation 40 1,582,956,786,204 1,178,743,735,837

03 Changes in provisions 95,586,098,902 53,343,819,374

04 Unrealised foreign exchange losses 33 153,521,258,290 91,401,429,917

05 Profits from investing activities 40 (1,333,188,623,458) (6,445,646,204,571)

06 Interest expenses 2,711,269,664,974 1,459,922,785,660

08 Operating income before changes in working capital 8,619,825,823,410 6,077,851,548,095

09 (Increase)/decrease in receivables (236,771,046,585) 1,506,465,991,329

10 Decrease/(increase) in inventories 7,828,554,877,896 (53,674,323,727)

11 (Decrease)/increase in payables (other than interest, corporate income tax payables)

(435,168,123,808) 5,739,159,477,741

12 (Increase)/decrease in prepaid expenses (774,696,243,771) 367,776,128,547

13 Interest paid (3,191,276,794,957) (2,550,652,028,899)

14 Corporate income tax paid (1,910,568,513,664) (1,803,518,979,544)

15 Other cash inflows from operating activities - 641,182,106

16 Other cash outflows from operating activities (3,085,600,466) -

20 Net cash flows from operating activities 9,896,814,378,055 9,284,048,995,648

II. CASH FLOWS FROM INVESTING ACTIVITIES

21 Purchase, construction of fixed assets and other long-term assets

40 (12,078,574,548,052) (10,489,796,722,908)

22 Proceeds from disposals of fixed assets and other long-term assets

1,233,509,487,141 39,220,197,524

23 Loans to other entities and payments for purchase of debt instruments of other entities

40 (4,394,117,030,716) (8,069,778,802,040)

24 Collections from borrowers and proceeds from sale of debt instruments of other entities

40 3,944,306,480,156 4,780,340,308,582

25 Payments for equity investments in other entities 40 (12,714,336,731,816) (6,150,167,058,980)

26 Proceeds from disposals of equity investments in other entities

40 2,592,111,751,675 10,458,023,592,091

27 Interest and dividends received 1,017,729,795,067 539,692,018,943

30 Net cash flows used in investing activities (20,399,370,796,545) (8,892,466,466,788)


16 March 2015





Consolidated cash flow statement/ Notes to the consolidated financial statements

Notes to the consolidated financial statements


III. CASH FLOWS FROM FINANCING ACTIVITIES

31 Capital contribution and issuance of shares 40 1,411,009,772,856 -

Capital contribution from minority interests 2,948,518,325,753 3,256,960,309,647

32 Payment for acquiring treasury shares - (2,953,978,284,083)

33 Drawndown of borrowings 17,264,986,730,202 16,614,545,541,480

34 Repayment of borrowings (8,682,400,989,542) (11,103,071,677,430)

36 Dividends paid to equity holders of the parent (1,844,966,743,620) (288,850,999,997)

Dividends paid to minority interests (521,509,281,485) -

40 Net cash flows from financing activities 10,575,637,814,164 5,525,604,889,617

50 Net increase in cash and cash equivalents 73,081,395,674 5,917,187,418,477

60 Cash and cash equivalents at the beginning of the year 5 7,534,048,703,295 1,616,855,174,935

61 Impact of exchange rate fluctuation 383,620,704 6,109,883

70 Cash and cash equivalents at the end of the year 5 7,607,513,719,673 7,534,048,703,295

Consolidated cash flow statement (continued) for the year ended 31 December 2014

Vingroup Joint Stock Company (“the Company”) is a joint stock company established in Vietnam pursuant to the Business Registration Certificate No. 0103001016 issued by the Hanoi Department of Planning and Investment on 3 May 2002 and the Business Registration Certificate No. 0101245486 re-issued on 12 May 2010. The Company also subsequently received the 55th amended Business Registration Certificate dated 18 November 2014.

The Company’s shares were officially listed on the Hochiminh City Stock Exchange (“HOSE”) from 19 September 2007 pursuant to Decision No.106/QD-TTGDHCM issued by the Director of HOSE on 7 September 2007.

The current principal activities of the Company in this year are to carry out investment activities and to provide the general administrative services.

The Company’s head office is located at No. 7, Bang Lang 1 street, Vinhomes Riverside Eco-urban Area, Viet Hung ward, Long Bien district, Hanoi, Vietnam. Its branch is located at No. 72, Le Thanh Ton street and No. 45A, Ly Tu Trong street, Ben Nghe ward, district 1, Hochiminh city, Vietnam.

The number of the Company’s employees as at 31 December 2014 is 532 (31 December 2013: 219).

As at 31 December 2014, the Company has 55 subsidiaries. The information on these subsidiaries, along with the Company’s voting rights and equity interest in each subsidiary are detailed in the Appendix 1.

Pursuant to the Security Agreement among Vincom Retail JSC, WP Investments III B.V. (“Warburg Pincus”) and Credit Suisse AG, Singapore Branch (“Credit Suisse”) dated 12 July 2013 with later amendments in relation to the convertible loans as presented in Note 27.1.7 and the preference shares issued by Vincom Retail JSC as presented in Note 29, the entire equity interest of Vincom Retail JSC in Vincom Center Ba Trieu LLC, Vincom Center Long Bien LLC, Vincom Center B HCMC LLC, Hai Phong Land LLC and 50% equity interest of VMM Times City LLC have been used as collaterals for irrevocably guaranteeing Vingroup’s obligations under the transaction documents and for founders and Vingroup’s obligations relating to put option for founders signed with Warburg Pincus and Credit Suisse.

At 31 December 2014, the Company also holds investments in a number of associates as disclosed in Note 17.1.

1. Corporate information



16 March 2015



Currency: VND



2. Basis of preparation 3. Summary of significant accounting policies

2.1 Accounting standards and system

The consolidated financial statements of the Group, which are expressed in Vietnam dong (“VND”), are prepared in accordance with Vietnamese Enterprise Accounting System and Vietnamese Accounting Standards issued by the Ministry of Finance as per:

• Decision No. 149/2001/QD-BTC dated 31 December 2001 on the Issuance and Promulgation of Four Vietnamese Accounting Standards (Series 1);

• Decision No. 165/2002/QD-BTC dated 31 December 2002 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 2);

• Decision No. 234/2003/QD-BTC dated 30 December 2003 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 3);

• Decision No. 12/2005/QD-BTC dated 15 February 2005 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 4); and

• Decision No. 100/2005/QD-BTC dated 28 December 2005 on the Issuance and Promulgation of Four Vietnamese Accounting Standards (Series 5).

Accordingly, the accompanying consolidated balance sheet, consolidated income statement, consolidated cash flow statement and related notes, including their utilisation are not designed for those who are not informed about Vietnam’s accounting principles, procedures and practices and furthermore are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries other than Vietnam.

For the purpose of preparing the consolidated balance sheet, the Group has also supplemented details of certain line items in the balance sheet, i.e. “Advances from customers” (Code 313), “Accrued expenses” (Code 316) and “Other short-term payables” (Code 319). The purpose of presenting these additional details in the consolidated balance sheet is to provide more relevant information to the users of these consolidated financial statements. These changes were approved by the Ministry of Finance in accordance with the Official Letter No. 5966/BTC/

3.1 Changes in accounting policies and disclosures

The accounting policies adopted by the Group in preparation of the consolidated financial statements are consistent with those followed in the preparation of the Group’s consolidated financial statements for the year ended 31 December 2013.

3.2 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, cash in banks and short-term, highly liquid investments with an original maturity of less than three months that are readily convertible into known amounts of cash and that are subject to an insignificant risk of change in value.

3.3 Inventories

Inventory property

Property acquired or being constructed for sale in the ordinary course of business, rather than to be held for rental or capital appreciation, is held as inventory and is measured at the lower of cost and net realisable value.

Cost includes:

• Freehold and leasehold rights for land;

• Amounts paid to contractors for construction;

• Borrowing costs, planning and design costs, costs of site preparation, professional fees for legal services, property transfer taxes, construction overheads and other related costs.

Net realisable value is the estimated selling price in the ordinary course of the business, based on market prices at the reporting date and less costs to completion and the estimated costs of sale.

The cost of inventory recognised in profit or loss on disposal is determined with reference to the specific costs incurred on the property sold and an allocation of any non-specific costs based on the relative size of the inventory property sold.

Other inventories

Inventories are carried at the lower of cost incurred in bringing each product to its present location and condition and net realisable value.

Net realisable value represents the estimated selling price in the ordinary course of business less the estimated costs to complete and the estimated costs necessary to make the sale.

CDKT dated 4 May 2012 on supplementing details to the forms of the financial statements.

2.2 Applied accounting documentation system

The Company’s applied accounting documentation system is the General Journal system.

2.3 Fiscal year

The Group’s fiscal year applicable for the preparation of its consolidated financial statements starts on 1 January and ends on 31 December.

2.4 Accounting currency

The consolidated financial statements are prepared in VND which is also the Company’s accounting currency.

2.5 Basis of consolidation

The consolidated financial statements comprise the financial statements of the parent company and its subsidiaries for the year ended 31 December 2014.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continued to be consolidated until the date that such control ceases.

The financial statements of subsidiaries are prepared for the same reporting year as the parent company, using consistent accounting policies.

All intra-company balances, income and expenses and unrealised gains or losses result from intra-company transactions are eliminated in full.

Minority interests represent the portion of profit or loss and net assets not held by the Group and are presented separately in the consolidated income statement and within equity in the consolidated balance sheet, separately from parent shareholders’ equity.

The perpetual method is used to record the costs of other inventories, in which construction materials are valued at the cost of purchase, on a first in first out basis.

Provision for obsolete inventories

An inventories provision is created for the estimated loss arising due to the impairment of value (through diminution, damage, obsolescence, etc.) of raw materials, finished goods, and other inventories owned by the Group, based on appropriate evidence of impairment available at the balance sheet date. Increases and decreases to the provision balance are recorded into the cost of goods sold account in the consolidated income statement.

3.4 Receivables

Receivables are presented in the consolidated financial statements at the carrying amounts due from customers and other debtors, after provision for doubtful debts.

The provision for doubtful debts represents amounts of outstanding receivables at the balance sheet date which are doubtful of being recovered. Increases and decreases to the provision balance are recorded as general and administrative expense in the consolidated income statement.

3.5 Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation.

The cost of a tangible fixed asset comprises its purchase price and any directly attributable costs of bringing the tangible fixed asset to working condition for its intended use. Expenditures for additions, improvements and renewals are added to the carrying amount of the assets and expenditures for maintenance and repairs are charged to the consolidated income statement as incurred.

When tangible fixed assets are sold or retired, their costs and accumulated depreciation are removed from the consolidated balance sheet and any gain or loss resulting from their disposal is included in the consolidated income statement.




3.6 Intangible assets

Intangible assets are stated at cost less accumulated amortisation.

The cost of an intangible asset comprises its purchase price and any directly attributable costs of preparing the intangible fixed asset for its intended use. Expenditures for additions, improvements are added to the carrying amount of the assets and other expenditures are charged to the consolidated income statement as incurred.

When intangible assets are sold or retired, their costs and accumulated amortisation are removed from the consolidated balance sheet and any gain or loss resulting from their disposal is included in the consolidated income statement.

Land use rights

Land use rights with indefinite or definite term are recorded as intangible assets based the land use right certificate issued by the relevant authority.

The advance lump-sum payment for land rental, of which the land lease contracts have effectiveness prior to 2003 and the land use right certificate being issued by the relevant authority, are recorded as intangible asset according to Circular No. 45/2013/TT-BTC issued by the Ministry of Finance on 25 April 2013 guiding the management, use and depreciation of fixed assets (“Circular 45”).

Research and development costs

Research costs with significant value are initially recognized as prepayment and expensed over a period of 3 years on a straight-line basis.

Development expenditure on an individual project is recognized as an intangible asset only if the Group can demonstrate all of the following conditions:

• The technical feasibility study of completing the intangible asset so that it will be available for use or sale;

• The intention to complete and use or sell the intangible asset;

• The ability to use or sell the intangible asset;

• The asset will generate probable future economic benefits;

• The availability of resources to complete the development and to use or sell the intangible asset;

• The ability to measure reliably the expenditure during the development; and

• They are estimated to meet all criteria for use duration and value prescribed for intangible fixed asset.

Development costs capitalised as asset are stated at cost less accumulated amortisation. Amortisation of the asset begins when development is completed and the asset is available for use.

3.7 Depreciation and amortisation

Depreciation and amortisation of tangible fixed assets and intangible assets are calculated on a straight-line basis over the estimated useful life of each asset as follows:

Buildings and structures 10 – 50 years

Other structures 10 – 20 years

Machineries and equipment 3 – 15 years

Means of transportation 3 – 12 years

Office equipment 4 – 8 years

Computer software 3 – 8 years

Copy rights 4 – 8 years

Land use rights with definite terms 50 years

Land rental rights 20 years

Others 8 – 15 years

Land use rights with definite term 46 – 48 years

Buildings 30 – 50 years

Machinery and equipment 8 – 15 years


No amortisation is charged on the land use rights with indefinite terms and project development right.

3.8 Investment properties

Investment properties are stated at cost including transaction costs less accumulated depreciation.

Subsequent expenditure relating to an investment property that has already been recognized is added to the net book value of the investment property when it is probable that future economic benefits, in excess of the originally assessed standard of performance of the existing investment property, will flow to the Group.

Depreciation and amortisation of investment properties are calculated on a straight-line basis over the estimated useful life of each asset as follows:

Amortisation of land use rights with definite terms presented as a part of investment properties is calculated on a straight-line basis over the definite term.

No amortization is charged on the land use rights with indefinite terms presented as a part of investment properties.

Investment properties are derecognised when either they have been disposed of or when the investment properties are permanently withdrawn from use and no future economic

benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the assets is recognised in the consolidated income statement in the year of retirement or disposal.

Transfers are made to investment properties when, and only when, there is a change in use, evidenced by ending of owner-occupation, commencement of an operating lease to another party or ending of construction or development. Transfers are made from investment properties when, and only when, there is change in use, evidenced by commencement of owner-occupation or commencement of development with a view to sale. The transfer from investment property to owner-occupied property or inventories does not change the cost or the carrying value of the property for subsequent accounting at the date of change in use.

3.9 Borrowing costs

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing costs are recorded as expense during the year in which they are incurred, except to the extent that they are capitalized as explained in the following paragraph.

Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that necessarily take a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset.

3.10 Prepaid expenses

Prepaid expenses are reported as short-term or long-term prepaid expenses on the consolidated balance sheet and allocated over the period for which the amount are paid or the period in which economic benefits are generated in relation to these expenses.

Long-term prepaid expenses include long-term prepaid land rental, bond issuance costs and other long-term expenses that bring future economic benefits for more than one year period.

The prepaid land rental represents the unamortised balance of advance payment made in accordance with the lease contract signed with the government authority. Such prepaid rental is recognised as a long-term prepaid expense for allocation to the consolidated income statement over the remaining lease period according to Circular 45.

3.11 Business combinations and goodwill

Business combinations are accounted for using the purchase method. The cost of a business combination is measured as the fair value of assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange plus any costs directly attributable to the business combination. Identifiable assets and liabilities and contingent liabilities assumed in a business combination are measured initially at fair values at the date of business combination.

Goodwill acquired in a business combination is initially measured at cost being the excess of the cost the business combination over the Group’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities. If the cost of a business combination is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated income statement. After initial recognition, goodwill is measured at cost less any accumulated amortization. Goodwill is amortized over 10-year period on a straight-line basis.

Property acquisitions and business combinations

The Group acquires subsidiaries that own real estate properties. At the time of acquisition, the Group considers whether the acquisition represents the acquisition of a business or not. The Group accounts for an acquisition as a business combination where an integrated set of business activities is acquired in addition to the properties.

When the acquisition of subsidiaries does not represent an acquisition of business, it is accounted for as an acquisition of a group of assets and liabilities. The cost of the acquisition is allocated to the assets and liabilities acquired based upon their relative fair values, and no goodwill or deferred tax is recognised.

Changes in ownership interest in subsidiaries without loss of control

When the Company acquires a minority interest in an existing subsidiary, the difference between the consideration paid and the carrying value of net assets acquired is presented as goodwill in the consolidated balance sheet.

Where there is a partial disposal of ownership interest in an existing subsidiary without loss of control, a gain or loss is recognised in the consolidated income statement at the difference between the consideration received and the carrying value of net assets disposed.

Business combinations involving entities or businesses under common control

Business combinations involving entities or businesses under common control are accounted for as follows:

• The assets and liabilities of the two combined entities are reflected at their carrying amounts on the date of business combination;

• No goodwill is recognised from the business combination;

• The consolidated income statement reflects the results of the combined entities from the date of the business combination;

• Any difference between the consideration paid and the net assets of the “acquiree” is recorded in equity.


Notes to the consolidated financial statementsVAS consolidated financial statements

3.12 Investments

Investment in associates

The Group’s investment in its associates is accounted for using the equity method of accounting. An associate is an entity in which the Group has significant influence that is neither subsidiaries nor joint ventures. The Group generally deems they have significant influence if they have over 20% of the voting rights.

Under the equity method, the investment is carried in the consolidated balance sheet at cost plus post acquisition changes in the Group’s share of net assets of the associates. Goodwill arising on acquisition of the associate is included in the carrying amount of the investment and is amortized over 10-year period. The consolidated income statement reflects the share of the post-acquisition results of operation of the associate.

The share of post-acquisition profit/(loss) of the associates is presented on face of the consolidated income statement and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Dividend/profit sharing received or receivable from associates reduces the carrying amount of the investment.

The financial statements of the associates are prepared for the same reporting year as the Group. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group.

Investments in securities and other investments

Investments in securities and other investments are stated at their acquisition costs.

Provision for diminution in value of investments

Provision is made for any diminution in value of the marketable investments at the balance sheet date in accordance with the guidance under the Circular No. 228/2009/TT-BTC dated 7 December 2009 and the Circular No. 89/2013/TT-BTC dated 28 June 2013 issued by Ministry of Finance. Increases and decreases to the provision balance are recorded as finance expense in the consolidated income statement.

3.13 Payables and accruals

Payables and accruals are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Group. Payables to contractors are recorded based on interim work certificates between two parties, regardless of whether or not billed to the Group.

3.14 Accrual for severance pay

The severance pay to employee is accrued at the end of each reporting year for all employees who have more than 12 months in service up to the reporting date at the rate of one-half of

the average monthly salary for each year of service up to the 31 December 2008 in accordance with the Labour Code, the Law on Social Insurance and related implementing guidance. Commencing 1 January 2009, the average monthly salary used in this calculation will be revised at the end of each reporting year following the average monthly salary of the 6-month period up to the reporting date. Any changes to the accrued amount will be taken to the consolidated income statement. This accrued severance pay is used to settle the termination allowance to be paid to employee upon termination of their labour contract following Article 48 of the Labour Code.

3.15 Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the consolidated income statement net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

3.16 Foreign currency transactions

Transactions in currencies other than the Group’s reporting currency of VND are recorded at the exchange rates ruling at the date of the transaction. At the end of the year, monetary assets and liabilities denominated in foreign currencies are translated at buying exchange rate announced by the commercial bank where the Group maintains bank accounts at the balance sheet date. All realised and unrealised foreign exchange differences are taken to the consolidated income statement.

3.17 Treasury shares

Own equity instruments which are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain or loss is recognised in profit or loss upon purchase, sale, issue or cancellation of the Group’s own equity instruments.

3.18 Appropriation of net profits

Net profit after tax (excluding unrealised exchange gains as at the balance sheet date) is available for appropriation to shareholders after approval in the annual general meeting, and after making appropriation to reserve funds in accordance with the Company’s Charter and the Vietnamese regulatory requirements.

The Group maintains the financial reserve fund which is appropriated from the Group’s net profit as proposed by the Board of Directors and subject to approval by shareholders at the annual general meeting. This fund is set aside to protect the Group’s normal operations from business risks or losses, or to prepare for unforeseen losses or damages for objective reasons and force majeure, such as fire, economic and financial turmoil of the country or elsewhere.

3.19 Advances from customers

Down payments from customers for the purchase of residential properties in the future that do not meet the conditions for revenue recognition, are recognized and presented as “Advances from customers” in the liability section of the consolidated balance sheet.

Payments received from customers under deposit, loan and other agreements are recognized and presented as “Other short-term payables” in the liability section of the consolidated balance sheet.

3.20 Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured regardless of when payment is being made. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, and sales taxes or duty. The following specific recognition criteria must also be met before revenue is recognised:

Revenue from sale of inventory property

Revenue from sale of inventory property is recognised when the significant risks and rewards of ownership of the properties have passed to the buyer.

Revenue from leasing of investment properties

Rental income arising from leased investment properties is accounted for on a straight line basis over the lease terms of ongoing leases.

Sale of goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually upon the delivery of the goods.

Rendering of services

Revenue from hotel, amusement park, education, hospital, beauty, property management and other related services is recorded when the services are rendered.

Gains from securities trading/capital transfer

Gains from securities trading and capital transfer are determined

as the excess of selling prices against the cost of securities sold. Such gain is recognised on the trading date when the relevant contracts are executed.

Interest

Revenue is recognised as the interest accrues (taking into account the effective yield on the asset) unless collectability is in doubt.

Dividends

Income is recognised when the Group’s entitlement as an investor to receive the dividend is established.

3.21 Taxation

Current income tax

Current income tax assets and liabilities for the current and prior years are measured at the amount expected to be paid to (or recovered from) the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted as at the consolidated balance sheet date.

Current income tax is charged or credited to the consolidated income statement, except when it relates to items recognised directly to equity, in which case the current income tax is also dealt with in equity.

Current income tax assets and liabilities are offset when there is a legally enforceable right for the Group to set off current tax assets against current tax liabilities and when the Group intends to settle its current tax assets and liabilities on a net basis.

Deferred income tax

Deferred tax is provided using the liability method on temporary differences at the consolidated balance sheet date between the tax base of assets and liabilities and their carrying amount for financial reporting purposes.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

• Where the deferred tax liability arises from the initial recognition of an asset or liability in a transaction which at the time of the related transaction affects neither the accounting profit nor taxable profit or loss;

• In respect of taxable temporarily differences associated with investments in subsidiaries and associates, and interests in joint ventures where timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, carried forward unused tax credit and unused tax losses, to the extent that it is probable that taxable profit will


Notes to the consolidated financial statementsVAS consolidated financial statements

be available against which deductible temporary differences, carried forward unused tax credit and unused tax losses can be utilised, except:

• Where the deferred tax asset in respect of deductible temporary difference which arises from the initial recognition of an asset or liability which at the time of the related transaction, affects neither the accounting profit nor taxable profit or loss;

• In respect of deductible temporarily differences associated with investments in subsidiaries, associates, and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Previously unrecognised deferred income tax assets are re assessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset realised or the liability is settled based on tax rates and tax laws that have been enacted at the consolidated balance sheet date.

Deferred tax is charged or credited to the consolidated income statement, except when it relates to items recognised directly to equity, in which case the deferred tax is also dealt with in the equity account.

Deferred tax assets and liabilities are offset when there is a legally enforceable right for the Group to off-set current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on:

• Either the same taxable entity; or

• When the Group intends either settle current tax liabilities and assets on a net basis or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

3.22 Financial instruments

Financial instruments – initial recognition and presentation

Financial assets

Financial assets within the scope of the Circular No.210/2009/TT-BTC issued by the Ministry of Finance on 6 November 2009 providing guidance for the adoption in Vietnam of the

International Financial Reporting Standards on presentation and disclosures of financial instruments (“Circular 210”) are classified, for disclosures in the notes to the consolidated financial statements, as financial assets at fair value through profit or loss, held-to-maturity investments, loans and receivables or available-for-sale financial assets as appropriate. The Group determines the classification of its financial assets at initial recognition.

All financial assets are recognised initially at cost plus directly attributable transaction costs.

The Group’s financial assets include cash, cash equivalents, short-term deposits, trade and other receivables, loan receivables, quoted and unquoted financial instruments.

Financial liabilities

Financial liabilities within the scope of Circular 210 are classified, for disclosures in the notes to the consolidated financial statements, as financial liabilities at fair value through profit or loss or financial liabilities measured at amortised cost as appropriate. The Group determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognised initially at cost plus directly attributable transaction costs.

The Group’s financial liabilities include trade and other payables, accruals, corporate bonds, convertible bonds, convertible loans, other loans and borrowings.

Financial instruments – subsequent re-measurement

There is currently no guidance in relation to subsequent re-measurement of financial instruments in Circular 210. Accordingly, financial instruments are subsequently carried at cost.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the consolidated balance sheet if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

3.23 Convertible bonds

Bonds that are convertible by the holder into a fixed number of ordinary shares of the entity are separated into financial liability (a contractual arrangement to deliver cash or another financial asset) and equity instrument (a call option granting the holder the right, for a specified period of time) based on the terms of the contract. In cases where the numbers of ordinary shares to be converted is not fixed, the entire convertible bonds are classified as a financial liability.

On issuance of the convertible bonds, the fair value of the liability component is determined using a market rate for equivalent non-

convertible bonds. This amount is classified as a financial liability measured at amortised cost (net of transaction costs) until it is extinguished on conversion or redemption. The remainder of the proceeds is allocated to the conversion option that is recognised and included in shareholders’ equity. Transaction costs are deducted from equity, net of associated income tax. The carrying amount of the conversion option is not re-measured in subsequent years.

Transaction costs are apportioned between the liability and equity components of the convertible bond based on the allocation of proceeds to the liability and equity components when the instruments are initially recognised.

In 2012, the Group issued US$300 million convertible bonds with a term of 5 years (Note 27.2). Management has assessed that there is no equity component in these convertible bonds (since there is no known fixed number of shares to be converted on issue date) and as a result, has recognized the entire convertible bonds as financial liabilities.



4. Significant acquisitions and disposals

4.1 Significant acquisitions

Acquisition of Vincom Construction LLC, a new subsidiary

On 8 January 2014, the Group acquired 100% equity interest in Vincom Construction LLC and thereby, Vincom Construction LLC became a subsidiary of the Group.

Vincom Construction was established in Vietnam in accordance with the Business Registration Certificate No. 0103012410 issued by the Hanoi Department of Planning and Investment on 31 May 2006 and the Business Registration Certificate No. 0101959829 re-issued on 16 September 2010. The principal activities of Vincom Construction LLC are civil constructions, architecture and related technical consultancy, supervision and quality inspection. The Group has acquired Vincom Construction LLC in order to enhance its capacity in managing and supervising real estate projects of the Group.

The fair value of the identifiable net assets and liabilities of Vincom Construction LLC as at the date of the acquisition is presented as table beside:

Fair value recognized on

acquisition date

Assets

Cash and cash equivalents 814,870,033

Receivables 14,441,090,352

Inventories 34,952,847,681

Other current assets 696,494,538

Fixed assets 242,247,369

Other non-current assets 443,052,420

Short term investments 81,500,000,000

133,090,602,393

Liabilities

Trade payables 20,100,999,108

Other payables 1,827,785,022

Accrued expenses 11,161,818,263

Fair value of net assets 100,000,000,000

Minority interests -

Goodwill arising on combination 20,000,000,000

Total consideration paid 120,000,000,000

Cash flow on acquisition

Net cash acquired with the subsidiary 814,870,033

Cash paid 120,000,000,000

Net cash flow on acquisition 119,185,129,967

Total consideration of the acquisition was VND 120 billion which was fully paid in cash.

The profit before tax of Vincom Construction LLC for the period from the date of acquisition to 31 December 2014 is VND 89.5 billion.

Acquisition of additional equity interest in Tan Lien Phat JSC, a new subsidiary

On 25 February 2014, the Group completed the acquisition of an additional 30% of the voting shares of Tan Lien Phat JSC with total cash consideration of VND1,266 billion. In combination with 30% of the voting shares of Tan Lien Phat JSC held by Vincom Retail JSC, a subsidiary, whose carrying value at acquisition date was VND1,266 billion, the Group took control over Tan Lien Phat JSC.

Management has reviewed and assessed that the acquisition of Tan Lien Phat JSC is the acquisition of a group of assets, rather than a business acquisition. Accordingly, the total consideration paid was allocated to the assets acquired based on their fair value on acquisition date, with the remaining consideration being allocated to the land development right and recorded in construction in progress. The minority interests were also recognised at their relative proportion of the interest in the assets acquired. These assets are presented in the same categories as other similar assets held by the Group in the consolidated statement of financial position.

Currency: VND

On 1 July 2014, the General Meeting of Shareholders of Tan Lien Phat JSC, a subsidiary, has issued the Decision No. 05/2014/QD-DHDCD-TLP approving the increase of its charter capital from VND 500 billion to VND 5,800 billion through the issuance of ordinary shares to existing shareholders in proportion to their interest ownership.

On 21 August 2014, the General Meeting of Shareholders of Tan Lien Phat JSC, a subsidiary, has issued the Decision No. 09/2014/QD-DHDCD-TLP approving the increase of its charter capital from VND 5,800 billion to VND 6,550 billion through the issuance of ordinary shares to existing shareholders in proportion to their interest ownership.

On 15 August 2014 and 27 November 2014, the Group completed the acquisition of additional 5% and 10% of the voting shares of Tan Lien Phat JSC with considerations of VND459 billion and VND1,600 billion, respectively. Accordingly, the Group’s equity interest in this entity increased to 74.38%. The total difference of VND17.8 billion and VND498.6 billion between the considerations paid and the value of the additional net assets acquired from minority interests was recognised as finance income in the consolidated income statement (see Note 30.2) and goodwill in the consolidated balance sheet (see Note 20), respectively.

Acquisition of Metropolis LLC, a new subsidiary

On 12 August 2014, the Group acquired 100% of the voting shares of Metropolis LLC from a corporate counterparty and individuals with total consideration of VND1,622 billion and thereby, Metropolis LLC became a subsidiary of the Group. Metropolis LLC is in the progress of developing a potential real estate project on a land plot of 31,072 sqm in Thao Dien ward, district 2, Hochiminh city, Vietnam.

Management has reviewed and assessed that the acquisition of Metropolis LLC is the acquisition of a group of assets, rather than a business acquisition. Accordingly, the total consideration for this acquisition was allocated to the assets acquired based on their fair value on acquisition date, with the remaining consideration being allocated to the value of the land use right with definite term and recorded in construction in progress. The minority interests were also recognised at their relative proportion of the interest in the assets acquired. These assets are presented in the same categories as other similar assets held by the Group.

Acquisition of Riverview Danang LLC, a new subsidiary

On 13 August 2014, the Group completed the acquisition of 90% of the voting shares of Riverview Danang LLC with total consideration of VND182.2 billion. Accordingly, Riverview Danang LLC became a subsidiary of the Group. Riverview Danang LLC is in the progress of developing a potential real estate project on a land plot of 20,707 sqm in Ngo Quyen street, An Hai Bac ward, Son Tra district, Da Nang, Vietnam.

Management has reviewed and assessed that the acquisition of Riverview Danang LLC is the acquisition of a group of assets, rather than a business acquisition. Accordingly, the total consideration for this acquisition was allocated to the assets acquired based on their fair value on acquisition date, with the remaining consideration being allocated to the value of the land rental right and recorded in construction in progress. The minority interests were also recognised at their relative proportion of the interests in the assets acquired. These assets are presented in the same categories as other similar assets held by the Group in the consolidated balance sheet.

Acquisition of additional voting shares of Sai Dong JSC, an existing subsidiary

On 18 August 2014, the Group acquired an additional 20% of voting shares of Sai Dong JSC from a corporate counterparty. This transaction increased the equity interest of the Group in this Sai Dong JSC to 94%. This transaction also indirectly increased the equity interest of the Group in a number of other subsidiaries.

The cash consideration for this transaction is VND565 billion and total carrying value of the equity interest acquired was VND603 billion. The difference of VND861 billion between the total of (i) such consideration and (ii) VND899 billion being the adjustment for the share of consideration to minority interests when Sai Dong JSC acquired 44.9% equity interest in Hanoi South JSC, another subsidiary, in previous years and the carrying value of the equity interest acquired was recognised as goodwill in the consolidated balance sheet (see Note 20).

Acquisition of Hong Ngan JSC, a new subsidiary

On 10 September 2014, the Group acquired 99% of the voting shares of Hong Ngan JSC from individuals with total consideration of VND2,316 billion and thereby, Hong Ngan JSC became a subsidiary of the Group. Hong Ngan JSC is in the progress of developing a potential real estate project on a land plot of 151,569 sqm in Cau Dien ward, Nam Tu Liem district, Hanoi, Vietnam.

Management has reviewed and assessed that the acquisition of Hong Ngan JSC is the acquisition of a group of assets, rather than a business acquisition. Accordingly, the total consideration for this acquisition was allocated to the assets acquired based on their fair value on acquisition date, with the remaining consideration being allocated to the value of the land development right and recorded in construction in progress. The minority interests were also recognised at their relative proportion of the interests in the assets acquired. These assets are presented in the same categories as other similar assets held by the Group in the consolidated balance sheet.

Acquisition of Vinmart JSC, a new subsidiary

On 7 October 2014, the Group acquired 70% of voting shares of Ocean Retail & Assets Management Joint-stock Company (“ORC





acquisition

Assets

Cash and cash equivalents 77,976,795,197

Trade and other receivables 144,875,930,227

Inventories 119,846,573,783

Other current assets 52,244,474,369

Fixed assets 328,590,273,218

Construction in progress 3,244,925,454

Other long-term investments 207,939,183,333

Other long-term assets 179,407,714,671

1,114,125,870,252

Liabilities

Trade and other payables 264,623,916,786

Other long-term payables 2,785,833,180

Long-term borrowings 838,000,000,000

Total identifiable net assets at fair value 8,716,120,286

Minority interests 2,614,836,086

Goodwill arising on acquisition 553,898,715,800

Purchase consideration transferred 560,000,000,000


Net cash acquired with the subsidiary 77,976,795,197

Cash paid 560,000,000,000



acquisition

Assets

Cash and cash equivalents 9,560,663,550

Trade and other receivables 10,089,500,747

Advance to suppliers 26,739,737,958

Other current assets 20,865,947,368

Fixed assets 34,747,626

Construction in progress 602,433,027,000

Investment properties 132,300,000,000

802,023,624,249

Liabilities

Short-term borrowings 92,400,000,000

Trade and other payables 11,830,967,250

Advance from customers 12,782,270,425

Other payables 7,728,664,927

Deferred tax liabilities 77,223,969,218

Total identifiable net assets at fair value 600,057,752,429

Minority interests 36,003,465,146

Goodwill arising on acquisition 219,657,806,517

Purchase consideration transferred 783,712,093,800


Net cash acquired with the subsidiary 9,560,663,550

Cash paid 783,712,093,800


Currency: VND Currency: VND


JSC”) from a corporate party with total consideration of VND 560 billion. Consequently, ORC JSC became a new subsidiary of the Group and was renamed to Vinmart JSC.

Principal activities of Vinmart JSC are to retail goods in supermarkets and specialized stores. Vinmart JSC is currently operating a chain of 13 supermarkets and convenience stores located in Hanoi and other provinces in the North. The Group has acquired Vinmart JSC as part of its strategy of penetrating in the retail business.

The fair value of the identifiable assets and liabilities of Vinmart JSC as at the date of acquisition were:

Total consideration of the acquisition was VND560 billion which was fully paid in cash.

The loss before tax of Vinmart JSC for the period from the date of acquisition to 31 December 2014 is VND93 billion.

Acquisition of additional equity interest in Viettronics Land JSC, an existing subsidiary

On 4 November 2014, the Group acquired an additional 16% of the voting shares of Viettronics Land JSC from individuals. This transaction increased the equity interest of the Group in Viettronics Land JSC to 98.08%. Total consideration for this transaction was VND400.8 billion and total carrying value of the equity interest acquired was VND401.4 billion. The difference of VND0.6 billion between the consideration and the carrying value of the equity interest acquired was recognised as finance income in the consolidated balance sheet (see Note 30.2).

Acquisition of Khanh Gia JSC, a new subsidiary

On 12 December 2014, the Group acquired 94% of the voting shares of Khanh Gia JSC with total consideration of VND783 billion. Accordingly, Khanh Gia JSC became a subsidiary of the Group.

The principal activities of Khanh Gia JSC are investing, developing and leasing retail space. The Group has acquired Khanh Gia as part of its strategy of expanding property leasing activities.

The fair value of the identifiable assets and liabilities of Khanh Gia JSC as at the date of acquisition were:

Total consideration of the acquisition was VND783.7 billion which was fully paid in cash.

The loss before tax of Khanh Gia JSC for the period from the date of acquisition to 31 December 2014 is VND222 million.

4.2 Significant disposals

Partial disposal of equity interest in Sai Dong JSC, an existing subsidiary

In April 2014, the Group disposed of 5% of the voting shares of Sai Dong JSC, an existing subsidiary and thereby, reduced its equity interest in this subsidiary to 74%. This transaction also indirectly reduced the equity interest of the Group in a number of other subsidiaries.

The total consideration for this disposal was VND187 billion and the carrying value of the disposed net asset of the Group in Sai Dong JSC and a number of other subsidiaries as at disposal date was VND384 billion. The difference of VND197 billion between the consideration and the carrying value of the equity interest disposed was recognised in the consolidated income statement.

Disposal of Viet Thanh – Sai Dong Limited Liability Company (“Viet Thanh – Sai Dong LLC”)

On 9 July 2014, the Group disposed of the entire 73.51% equity interest in Viet Thanh – Sai Dong LLC to individuals for the consideration of VND167 billion. The difference of VND88 billion between the consideration and the carrying value of the equity interest disposed was recognised in the consolidated income statement (Note 30.2).



Ending balance Beginning balance

Cash on hand 9,220,874,607 3,734,876,934

Cash in banks 1,697,280,782,527 826,463,507,347

Cash equivalents 5,897,835,897,588 6,703,850,319,014

Cash in transit 3,176,164,951 -

TOTAL 7,607,513,719,673 7,534,048,703,295


Short-term deposits (i) 3,516,847,342,390 3,929,051,166,950

Current portion of bank deposits (Note 17.2) 497,621,378,611 -

Loans to others (ii) 2,026,383,376,327 1,454,775,074,182

Current portion of loans to customers (Note 17.2) 82,578,564,022 148,531,872,120

Loans to related parties (Note 37) 16,204,181,818 98,181,818

Short-term investments in listed securities 105,781,413,500 32,369,112,000

Total short-term investments 6,245,416,256,668 5,564,825,407,070

Provision for diminution in short-term investments (77,245,017,700) (51,984,372,442)

TOTAL 6,168,171,238,968 5,512,841,034,628


Receivables from sale of inventory properties 454,239,396,887 406,263,089,905

Receivables from leasing activities and rendering related services 222,450,897,154 391,312,752,468

Receivables from rendering hotel, amusement park and related services 46,193,370,495 32,837,034,046

Receivables from rendering hospital and related services 24,415,240,296 43,616,926,983

Receivables from sale of goods in supermarkets and retail outlets 2,824,255,316 215,135,830

Receivables from rendering education and related services 2,969,286,736 32,177,197

Other receivables 79,909,019,463 32,306,194,167

TOTAL 833,001,466,347 906,583,310,596

In which:

Trade receivables 669,871,388,587 898,600,737,662

Receivables from related parties (Note 37) 163,130,077,760 7,982,572,934


Receivables from disposal of the investment in an associate - 360,000,000,000

Interest receivables 428,978,175,621 262,930,214,880

Dividend advanced to a related party (i) - 205,200,000,000

Receivables from State Budget (ii) - 800,000,000,000

Dividend receivable 36,115,522,222 -

Others 161,109,376,144 220,435,643,877

TOTAL 626,203,073,987 1,848,565,858,757

In which:

Other receivables 625,477,109,487 1,632,135,173,957

Other receivables from related parties (Note 37) 725,964,500 216,430,684,800

5. Cash and cash equivalents

6. Short-term investments

7. Trade receivables

8. Other receivablesCurrency: VND

Currency: VND

Currency: VND

Currency: VND

Cash equivalents represent deposits at banks in VND with terms of 1 month to 3 months and earn interest at rates ranging from 4% to 7.5% per annum.

(i) Short-term deposits as of 31 December 2014 include deposits at banks with terms of more than 3 months which earn interest at rates ranging from 4% to 7.5% per annum.

(ii) Loans to others as of 31 December 2014 represents unsecured loans to corporate counterparties which earn interest at rates ranging from 10% to 18% per annum.

(i) This is a dividend advanced to a related party and was collected in the year (Note 37).

(ii) The receivable from the State Budget as of 31 December 2013 is related to the cessation of a potential project in Hochiminh City and was fully collected in the year.

9. Inventories Currency: VND

Currency: VND

See Note 25 and 27 for the details of inventory property used as collaterals for borrowings and corporate bonds of the Group.

10. Short-term prepaid expenses


Completed inventory properties 2,983,199,417,908 82,135,723,455

Inventory properties under construction 12,981,426,785,251 18,747,390,465,018

Materials for construction 25,068,106,693 19,481,411,812

Inventories for hospital, supermarket and retail outlets 233,060,588,602 59,341,273,203

Tools and equipment 84,779,811,576 14,129,048,644

Goods in transit 14,404,215,653 178,034,228

Others 331,307,723,610 -

16,653,246,649,293 18,922,655,956,360

Provision for obsolete inventories (54,895,665,767) (8,938,534,347)

Net value of inventories 16,598,350,983,526 18,913,717,422,013


Bond issue costs 9,303,353,064 2,970,617,785

Selling expenses related to apartments not yet handed over 1,645,051,805 16,498,231,735

Expenses for tools and equipment 92,926,354,559 48,579,300,709

Prepaid interest expense 20,667,325,201 19,965,840,294

Others 51,225,322,493 24,981,890,113

TOTAL 175,767,407,122 112,995,880,636




11. Other current assets

12. Tangible fixed asset

(i) Deposits for investment purpose are for acquiring shares in other entities. As at 31 December 2013, deposits for investment purpose also comprised a deposit of VND1,100 billion for securing the right to participate in a potential real estate in Hung Yen province which were reclassified to other long-term assets (Note 19)

(ii) As at 31 December 2013, short-term deposits mainly comprised an escrow amount of US$40 million deposited at Credit Suisse AG, Singapore Branch (“Credit Suisse”) and being used as a security for Credit Suisse for certain equity swap agreements that Credit Suisse has entered into with certain holders of the convertible bonds issued by the Company in July 2012. The Company fully collected this escrow amount in the year.

See Note 27 for the details of tangible fixed assets used as collaterals for borrowings and corporate bonds of the Group.


Advances to employees 13,722,309,095 10,636,708,629

Deposits for investment purpose (i) 783,166,666,670 2,832,200,000,000

Short-term deposits (ii) 64,258,393,012 880,071,194,016

Others current assets 21,671,511,814 -

TOTAL 882,818,880,591 3,722,907,902,645

In which:

Other current assets 882,818,880,591 3,522,907,902,645

Current assets from related parties (Note 37) - 200,000,000,000

Currency: VND

Currency: VND

Buildings & construction Machinery & equipment Motor vehicles Office equipment Others Total

Cost:

Beginning balance 4,155,350,273,457 2,038,258,860,738 278,817,951,977 74,705,585,423 160,440,672,762 6,707,573,344,357

Additions 3,652,750,991,892 1,435,644,969,003 101,567,627,249 224,478,632,429 47,146,964,536 5,461,589,185,109

In which:

Newly purchased 134,868,671,202 306,799,804,727 36,008,467,458 141,887,630,980 8,083,838,520 627,648,412,887

Newly constructed 2,401,018,889,735 813,977,927,716 47,388,164,894 10,787,736,189 39,063,126,016 3,312,235,844,550

Transfer from investment properties 904,766,093,193 268,431,766,003 - - - 1,173,197,859,196

Acquisition of subsidiary 212,097,337,762 46,435,470,557 18,170,994,897 71,803,265,260 - 348,507,068,476

Decreases (1,552,011,922) (28,712,158,488) (6,241,661,323) (3,861,532,704) (2,868,721,240) (43,236,085,677)

In which:

Sold, disposed (1,552,011,922) (21,533,068,491) (5,695,211,605) (3,037,926,115) (2,804,235,304) (34,622,453,437)

Other reductions - (7,179,089,997) (546,449,718) (823,606,589) (64,485,936) (8,613,632,240)

Ending balance 7,806,549,253,427 3,445,191,671,253 374,143,917,903 295,322,685,148 204,718,916,058 12,125,926,443,789

In which:

Fully depreciated 456,933,838 62,300,427,417 2,449,384,871 16,762,570,592 9,868,886,654 91,838,203,372

Accumulated depreciation:

Beginning balance 357,427,839,275 525,501,233,125 84,023,346,967 43,277,952,981 51,626,331,789 1,061,856,704,137

Addition 173,501,116,186 295,221,630,250 37,297,138,360 25,743,490,150 21,494,213,751 553,257,588,697

In which:

Depreciation for the year 151,422,776,935 275,376,977,743 34,735,280,394 17,490,625,686 21,494,213,751 500,519,874,509

Transfer from investment properties 11,774,974,420 16,327,268,784 - - - 28,102,243,204

Acquisition of subsidiary 10,303,364,831 3,517,383,723 2,561,857,966 8,252,864,464 - 24,635,470,984

Decreases (1,246,974,349) (9,796,988,243) (2,293,132,776) (1,408,738,073) (782,757,253) (15,528,590,694)

In which:

Sold, disposed (1,246,974,349) (9,056,304,475) (2,056,504,302) (663,365,240) (748,185,864) (13,771,334,230)

Other reductions - (740,683,768) (236,628,474) (745,372,833) (34,571,389) (1,757,256,464)

Ending balance 529,681,981,112 810,925,875,132 119,027,352,551 67,612,705,058 72,337,788,287 1,599,585,702,140

Net carrying amount:

Beginning balance 3,797,922,434,182 1,512,757,627,613 194,794,605,010 31,427,632,442 108,814,340,973 5,645,716,640,220

Ending balance 7,276,867,272,315 2,634,265,796,121 255,116,565,352 227,709,980,090 132,381,127,771 10,526,340,741,649




Indefinite landuse right

Definite landuse right

Land rental right (i) Project development right (ii)

Copyrights Computer software Total

Cost:

Beginning balance 51,430,769,964 173,065,510,181 184,938,875,055 136,500,000,000 2,172,915,416 28,824,444,649 576,932,515,265

Additions - 31,547,071,966 - - 407,648,545 22,743,887,597 54,698,608,108

In which:

Newly purchased - 31,547,071,966 - - 407,648,545 15,317,702,141 47,272,422,652

Acquisition of subsidiary - - - - - 7,426,185,456 7,426,185,456

Decreases (14,302,800,000) (3,450,784,900) - - - (736,610,583) (18,490,195,483)

In which:

Sold, disposed - - - - - (736,610,583) (736,610,583)

Transfer to construction in progress (14,302,800,000) (3,450,784,900) - - - - (17,753,584,900)

Ending balance 37,127,969,964 201,161,797,247 184,938,875,055 136,500,000,000 2,580,563,961 50,831,721,663 613,140,927,890

In which:

Fully depreciated - - - - 68,643,000 12,382,479,903 12,451,122,903

Accumulated amortization:

Beginning balance - 12,679,496,345 40,887,073,429 - 1,706,280,517 17,168,479,298 72,441,329,589

Addition - 4,674,087,681 9,217,901,051 - 359,510,828 9,209,914,495 23,461,414,055

In which:

Amortization for the year - 4,674,087,681 9,217,901,051 - 359,510,828 7,845,223,769 22,096,723,329

Acquisition of subsidiary - - - - - 1,364,690,726 1,364,690,726

Decreases - (2,424,791,152) - - - (704,304,313) (3,129,095,465)

In which:

Sold, disposed - - - - - (704,304,313) (704,304,313)

Transfer to construction in progress - (2,424,791,152) - - - - (2,424,791,152)

Ending balance - 14,928,792,874 50,104,974,480 - 2,065,791,345 25,674,089,480 92,773,648,179


Beginning balance 51,430,769,964 160,386,013,836 144,051,801,626 136,500,000,000 466,634,899 11,655,965,351 504,491,185,676

Ending balance 37,127,969,964 186,233,004,373 134,833,900,575 136,500,000,000 514,772,616 25,157,632,183 520,367,279,711

Currency: VND13. Intangible fixed assets

(i) This is land rental right incurred when the Group invested in Hai Phong Land LLC in 2009.


(ii) This is project development right incurred when Vinpearl JSC invested in Hon Mot JSC in 2010.

See Note 27 for the details of intangible fixed assets used as collaterals for borrowings and corporate bonds of the Group.



Land use right Building and structures Machinery and equipment

Total

Cost:

Beginning balance 2,454,317,955,619 9,606,573,191,831 2,087,781,697,133 14,148,672,844,583

Additions 2,580,784,033,702 1,562,412,159,950 188,547,987,934 4,331,744,181,586

In which:

Newly purchased 2,430,156,177,446 380,267,626,406 4,116,837,145 2,814,540,640,997

Transfer from construction in progress

78,153,695,008 1,075,345,656,634 184,431,150,789 1,337,930,502,431

Acquisition of subsidiary

72,474,161,248 106,798,876,910 - 179,273,038,158

Decreases (189,815,489,180) (1,552,978,033,130) (400,397,944,172) (2,143,191,466,482)

In which:

Disposals (122,823,022,524) (692,026,165,903) (131,966,178,171) (946,815,366,598)

Reclassification to fixed assets

(66,992,466,656) (837,773,626,537) (268,431,766,001) (1,173,197,859,194)

Other decreases - (23,178,240,690) - (23,178,240,690)

Ending balance 4,845,286,500,141 9,616,007,318,651 1,875,931,740,895 16,337,225,559,687

Accumulated amortization:

Beginning balance 80,576,420,451 241,036,416,788 198,325,637,716 519,938,474,955

Addition 52,881,740,049 213,582,683,692 191,806,801,978 458,271,225,719

In which:

Amortization for the year

23,203,364,160 196,288,021,423 191,806,801,978 411,298,187,561

Acquisition of subsidiary

29,678,375,889 17,294,662,269 - 46,973,038,158

Decreases (5,271,853,461) (16,603,309,217) (18,250,202,835) (40,125,365,513)

In which:

Disposals - (10,100,188,265) (1,922,934,051) (12,023,122,316)

Reclassification to fixed assets

(5,271,853,461) (6,503,120,952) (16,327,268,784) (28,102,243,197)

Ending balance 128,186,307,039 438,015,791,263 371,882,236,859 938,084,335,161


Beginning balance 2,373,741,535,168 9,365,536,775,043 1,889,456,059,417 13,628,734,369,628

Ending balance 4,717,100,193,102 9,177,991,527,388 1,504,049,504,036 15,399,141,224,526


Vinhomes Central Park project 2,663,931,085,123 -

Vinhomes Nguyen Chi Thanh – Ha Noi project 1,315,763,194,052 2,753,337,185,551

Vincom Megamall Thao Dien project 1,623,262,808,291 -

Green City project 943,994,136,107 -

Vinhomes Times City project 784,581,629,027 939,734,920,148

Vincom Thu Duc project 602,433,027,000 -

Can Tho project 501,086,251,562 -

Xavinco project 442,467,019,372 441,076,325,736

Vinpearl Quy Nhon project 377,985,958,115 342,456,728,761

Lang Van project 232,705,632,840 105,544,108,578

Vinpearl Phu Quoc project 222,041,798,848 41,244,521,584

Vinhomes Riverside project 173,608,954,750 403,742,203,923

Vinpearl Premium Nha Trang Bay project 168,844,771,919 -

Vincom Center Da Nang project 154,536,473,549 -

Tay Ho View project 136,450,339,308 117,428,351,772

An Giang project 101,750,000,000 -

E-commerce project 96,888,466,776 -

Future Property Invest project 85,922,322,766 84,767,670,050

Vinpearl Hoi An project 77,195,990,564 72,919,202,464

Ho Tay project 73,828,685,818 42,348,897,818

Vinpearl Ha Long project 67,929,253,870 -

Vinmec project 65,900,291,896 -

Vinpearl Premium Golf Land and Vinpearl Spa project 62,659,288,859 -

Hon Mot project 57,259,570,979 27,694,769,417

Vincom Hai Phong project 33,642,217,961 16,620,436,143

Vinpearl Cam Ranh project 16,793,310,727 -

Vinpearl Nha Trang – Dolphin performance area - 25,410,059,929

Others 189,525,789,653 159,581,542,974

TOTAL 11,272,988,269,732 5,573,906,924,848

Currency: VND Currency: VND14. Construction in progress 15. Investment properties


Construction in progress for inventory property is presented in Note 9.

See Note 27 for details of construction in progress used as collaterals for borrowings and corporate bonds of the Group.


So sánh Kết quả hoạt động kinh doanh giữa VAS và IFRS

As at 31 December 2014, the market value of the Group’s investment properties is determined as follows:

• By an independent valuer per its draft reports:

Land use right and assets on the land of residential apartments of Vinhomes Royal City project under a long-term lease contract are being used as collaterals for the loan of a corporate counterparty.

See Note 27 for details of remaining investment properties used as collaterals for borrowings and corporate bonds of the Group.

Investment properties VND Billion

Vincom Center Ba Trieu – Tower A & B (retail component) 1,931

Vincom Center Ba Trieu – Tower C (retail component) 1,210

Vincom Center Dong Khoi (office component) 4,654

Vincom Center Dong Khoi (retail component) 4,716

Vincom Center Long Bien 353

Vinhomes Riverside project (school component) 245

Royal City project (school component) 132

Vinpearlland Amusement Park 60

Vincom Mega Mall Royal City 5,299

Vincom Mega Mall Times City 2,420

Vincom Center Ha Long 343

307-309 Vo Van Ngan 132

Investment properties VND Billion

Residential apartments at Royal City project under long-term lease contract 2,234

Villas at Vinhomes Riverside Eco-urban Area 2,810

• Estimated by the Group:

Note Ending balance Opening balance

Investment in associates 17.1 1,030,494,731,370 1,829,738,207,290

Other long-term investments 17.2 3,921,649,610,843 2,705,645,119,316

Total long term investments 4,952,144,342,213 4,535,383,326,606

Provision for other long-term investments (3,000,000,000) (3,000,000,000)

4,949,144,342,213 4,532,383,326,606

17. Long-term investments Currency: VND


15. Investment properties (continued)

16. Capitalized borrowing costs

During the year, the Group capitalised borrowing costs amounting to VND617,501,738,772 (2013: VND1,495,120,954,681).These costs related to borrowings made generally and specifically to finance the real estate projects of the Group.

The amount of borrowing costs of general borrowings eligible for capitalisation is determined by applying capitalisation rates ranging from 7.00% to 15.55% (2013: from 13.00% to 19.78%) to the accumulated weighted average expenditure of the real estate projects. The capitalization rates used are the weighted average of the borrowing costs applicable to the general borrowings of the Group that are outstanding during the year.

the grOup Is prOud tO set the standard fOr prIvate enterprIses, BuILt By vIetnamese peOpLe and marked By tradItIOnaL vIetnamese characterIstIcs Of InteLLIgence, darIng and amBItIOn.



Number of shares Value Number of shares Value

Hanoi Breed JSC 676,800 47,351,350,371 - -

Foreign Trade JSC 900,000 13,352,690,188 900,000 12,687,104,718

Green City JSC 73,650,000 943,022,019,919 49,000,000 669,324,368,968

Thang Long JSC 1,750,000 20,659,825,905 1,750,000 19,815,115,758

Eight Lions JSC (i) - 4,900,000 27,911,617,846

Vien Dong Pearl LLC (*) 6,108,844,987 - -

Tan Lien Phat JSC - - 15,000,000 1,100,000,000,000

TOTAL 76,976,800 1,030,494,731,370 71,550,000 1,829,738,207,290


Hanoi Breed JSC Foreign Trade JSC Green CityJSC

Thang Long JSC Eight LionsJSC

Vien Dong Pearl LLC Tan Lien Phat JSC Total

As at 1 January 2014 - 12,687,104,718 669,324,368,968 19,815,115,758 27,911,617,846 - 1,100,000,000,000 1,829,738,207,290

Increase during the year 48,027,183,334 - 246,500,000,000 - 9,000,000,000 6,000,000,000 166,666,666,665 476,193,849,999

Share in profit/ (loss) - 665,585,470 27,197,650,951 844,710,147 (36,911,617,846) 108,844,987 - (8,094,826,291)

Amortisation of goodwill (675,832,963) - - - - - - (675,832,963)

Reclassify to investment into subsidiaries (Note 4.1) - - - - - - (1,266,666,666,665) (1,266,666,666,665)

As at 31 December 2014 47,351,350,371 13,352,690,188 943,022,019,919 20,659,825,905 - 6,108,844,987 - 1,030,494,731,370

17.1 Investment in associates

17.2 Other long-term investment

Currency: VND

Currency: VND

Currency: VND

The information on these associates, along with the Company’s voting rights and equity interest in each associate are as follows:

No Name Voting rights (%)

Equity interest (%)

Head office Principal activities

1Foreign Trade Concrete JSC (“Foreign Trade JSC”) 30.00 30.00

Floor 1, 35 – 37 Chuong Duong Port, Nguyen Thai Binh Ward, District 1, Hochiminh City

Manufacturing and trading concrete

2Green City Development JSC (“Green City JSC”) 49.10 47.66

No. 72 Le Thanh Ton, Ben Nghe Ward, District 1, Hochiminh City

Real estate development

3Thang Long Real Estate Trading Investment JSC (“Thang Long JSC”)

35.00 35.00No. 191 Ba Trieu,Hai Ba Trung District, Hanoi


4

Vien Dong Pearl Urban Development Investment Company Limited (“Vien Dong Pearl LLC”)

45.00 45.00No. 72 Le Thanh Ton, Ben Nghe Ward, District 1, Hochiminh City


5 Hanoi Breeds JSC 37.60 26.32No. 77 Le Hong Phong, Nguyen Trai Ward, Ha Dong District, Hanoi

Breeding livestock

(*) This is a limited liability company.

(i) On 24 May 2014, the Group disposed of its 49% equity interest in Eight Lions JSC and together with the establishment of New Eight Lions LLC on 19 May 2014 for the purpose of purchasing inventories, fixed assets and operating rights from Eight Lions JSC, these transactions have been assessed as the acquisition of a business. A goodwill of VND

(i) Including loans provided to individuals for purchasing shares of Green City JSC. These loans have a term of 3 years starting from 25 July 2013 and earn interest at rate based on the weighted average borrowing cost of the Group. The collateral for these loans is the shares of Green City JSC purchased by these individuals.


Long-term loans

Loans to related parties - 240,000,000,000

Loans to individuals (i) 904,533,000,000 904,533,000,000

Loans to customers(ii) 117,578,059,260 185,531,367,356

In which: current portion of loans to customers (Note 6) (82,578,564,022) (148,531,872,120)

939,532,495,238 1,181,532,495,236

Investment in unquoted shares

Ecology Developing Investment JSC 1,093,496,443,945 1,093,496,443,945

Thanh Nien Media JSC 12,400,000,000 12,400,000,000

8/3 Investment JSC 3,000,000,000 3,000,000,000

Bank for Investment and Development of Vietnam - 73,412,301,500

Thanh Nien Real Estate JSC - 56,016,217,443

Thuan Phong Energy Development JSC 3,000,000,000 3,000,000,000

The Vietnam National Textile and Garment Group 551,685,000,000 -

Ocean Thang Long JSC 152,000,000,000 -

1,815,581,443,945 1,241,324,962,888

Other long-term investments

Business Co-operation Contract with Green City - 266,500,000,000

Long-term bank deposits 1,664,157,050,271 16,287,661,192

In which: current portion of bank deposits (Note 6) (497,621,378,611) -

1,166,535,671,660 282,787,661,192

TOTAL 3,921,649,610,843 2,705,645,119,316

100 billion arising from this transaction is recognized and presented in Note 20. This amount of goodwill has been provisionally recognized in the 2014 consolidated financial statement as the Group is in the process of determining the fair value of net asset acquired.

(ii) Long-term loans to others represent loans provided to tenants at trade centers of the Group with original terms of 3 years and earn interest at rates ranging from 10% to 25% per annum. These loans are pledged either by the shares of the tenant held by its major shareholders or by all assets and inventories in tenants’ stores.




Currency: VND

Currency: VND

Investment in unquoted shares and other long-term investments

Details of the Group’s investments in other entities as at 31 December 2014 are as follows:

(i) Including deposits for:

• Securing the right to participate in a potential real estate project in Hung Yen province;

• Investing in a potential real estate project in Long Bien district, Hanoi; and

18. Long-term prepaid expenses

19. Other long-term assets

Ending balance Opening balance

Number of shares

Equity interest (%)

Value Number of shares

Equity interest (%)

Value

Ecology Investment and Development JSC

80,470,000 18.25 1,093,496,443,945 80,470,000 18.25 1,093,496,443,945

Thanh Nien Media JSC 400,000 3.87 12,400,000,000 400,000 3.87 12,400,000,000

8/3 Investment JSC 300,000 10.00 3,000,000,000 300,000 10.00 3,000,000,000

Bank for Investment and Development of Vietnam

- - - 4,410,767 0.16 73,412,301,500

Thanh Nien Land JSC - - 5,600,000 10.57 56,016,217,443

Thuan Phong Energy Development JSC

300,000 3.00 3,000,000,000 300,000 3.00 3,000,000,000

The Vietnam National Textile and Garment Group

50,000,000 10.00 551,685,000,000 - - -

Ocean Thang Long JSC 15,200,000 13.10 152,000,000,000 - - -

TOTAL 146,670,000 1,815,581,443,945 91,480,767 1,241,324,962,888


Bonds issue costs and loan arrangement fees 595,884,775,537 611,948,422,558

Prepaid land rentals 193,397,545,649 174,253,985,665

Selling expenses for apartments not yet handed over 124,072,317,512 89,515,586,247

Selling expenses related to leasing activities 13,927,460,074 12,322,441,075

Mock houses 1,519,226,771 13,390,059,518

Corporate income tax prepayment 42,770,778,456 194,811,641,748

Tools and equipment 558,191,520,089 84,308,274,233

Pre-operating expenses 136,731,575,820 746,564,124

Prepaid rental fee for supermarket areas 34,668,669,724 -

Other long-term prepaid expenses 68,909,531,872 14,174,439,337

TOTAL 1,770,073,401,504 1,195,471,414,505


Deposits for investment purpose (i) 4,800,000,000,000 -

Long-term deposits for rental of retail outlets 99,679,218,417 -

Other long-term assets 922,872,835 730,784,217

TOTAL 4,900,602,091,252 730,784,217

• Purchasing retail space in a potential real estate project in Cau Giay district, Hanoi.


17.2 Other long-term investments (continued)



Goodwill on acquisition of

Hanoi South JSC


PFV JSC

Goodwill on acquisition of Sai Dong JSC

(Note 4)

Goodwill on acquisition ofRoyal City JSC


Vinpearl Da Nang LLC


VincomLong Bien LLC

Goodwill onacquisition of

Tan Lien Phat JSC(Note 4)


Eight Lions JSC (Note 17,1)

Goodwill on acquisition

of Vincom Construction

(Note 4)


Vinmart JSC (Note 4)


Khanh Gia JSC (Note 4)


Ocean Express JSC

Total

Cost:

Beginning balance 2,385,114,095,843 567,441,137,177 1,484,234,497,977 1,262,707,762,179 233,207,819,085 33,000,000,000 - - - - - - 5,965,705,312,261

Additions - - 861,522,988,666 - - - 498,584,453,672 100,000,000,000 20,000,000,000 553,898,715,800 219,657,806,517 4,532,698,829 2,258,196,663,484

Disposed (139,092,042,084) - (93,934,195,332) - (11,815,234,273) - - - - - - - (244,841,471,689)

Ending balance 2,246,022,053,759 567,441,137,177 2,251,823,291,311 1,262,707,762,179 221,392,584,812 33,000,000,000 498,584,453,672 100,000,000,000 20,000,000,000 553,898,715,800 219,657,806,517 4,532,698,829 7,979,060,504,056

Accumulated amortisation:

Beginning balance 479,832,254,464 129,344,976,352 199,227,295,472 286,018,188,090 65,170,404,238 2,200,000,000 - - - - - - 1,161,793,118,616

Amortization 228,869,472,956 53,856,285,189 173,524,383,344 126,270,776,218 23,320,781,910 3,300,000,000 4,154,870,447 19,444,444,444 2,000,000,000 13,050,764,263 1,143,424,198 106,797,836 649,042,000,805

Disposed (30,883,852,648) - (15,348,439,396) - - - - - - - - - (46,232,292,044)

Ending balance 677,817,874,772 183,201,261,541 357,403,239,420 412,288,964,308 88,491,186,148 5,500,000,000 4,154,870,447 19,444,444,444 2,000,000,000 13,050,764,263 1,143,424,198 106,797,836 1,764,602,827,377


Beginning balance

1,905,281,841,379 438,096,160,825 1,285,007,202,505 976,689,574,089 168,037,414,847 30,800,000,000 - - - - - - 4,803,912,193,645

Ending balance 1,568,204,178,987 384,239,875,636 1,894,420,051,891 850,418,797,871 132,901,398,664 27,500,000,000 494,429,583,225 80,555,555,556 18,000,000,000 540,847,951,537 218,514,382,319 4,425,900,993 6,214,457,676,679

20. Goodwill


Currency: VND




Current portion of long-term corporate bonds (Note 27.2) - 2,250,000,000,000

Current portion of long-term loans from banks (Note 27.1) 1,198,994,605,718 369,483,285,606

Short-term convertible loans (i) - 368,987,500,000

Others (ii) 122,200,000,000 35,000,000,000

TOTAL 1,321,194,605,718 3,023,470,785,606

In which

Short-term loans 1,311,194,605,718 3,023,470,785,606

Short-term loans from related parties (Note 37) 10,000,000,000 -


Corporate income tax (Note 36.1) 503,959,105,076 896,557,840,180

Value added tax payable 128,974,462,211 162,109,926,290

Personal income tax 25,209,166,721 9,760,917,781

Property tax, land use fees and land rental fees payable 371,099,590,034 1,036,404,229,407

Others 7,862,005,712 2,932,117,437

TOTAL 1,037,104,329,754 2,107,765,031,095


Accrual for bond and loan interests 1,371,617,698,518 1,267,702,309,535

Accrual for construction costs 1,254,563,464,393 864,555,492,034

Accrual for future costs of properties sold 709,720,429,437 869,496,711,976

Accrual for severance allowance 9,361,134,677 9,675,868,647

Accrual for warranty cost of inventories sold 99,627,506,502 -

Other accrued expenses 200,769,427,750 80,509,909,570

TOTAL 3,645,659,661,277 3,091,940,291,762


Payment from customers under deposit, loan and other agreements (i) 7,847,174,664,786 88,740,877,355

Other short – term payables 2,486,768,475,822 1,013,058,482,282

Deferred revenue to be realised within the next 12 months (Note 26)

502,313,840,716 300,336,578,824

Deposits from tenants to be refunded within the next 12 months (Note 26)

126,677,298,798 76,495,457,781

Payables for investment activities (ii) 494,312,091,675 92,592,000,000

Collection on behalf 150,466,699,390 197,481,558,063

Dividends payable 38,062,015,345 21,328,124,997

Social insurance payables 6,572,609,862 5,542,117,918

Payable to customers due to cancelation of contracts

104,206,086,965 6,729,628,926

Apartment maintenance fund hold on behalf of customers

604,895,150,936 299,276,623,131

Payable to customer due to amendments of the lease contract (Note 22)

271,317,937,777 -

Other payables 187,944,744,358 13,276,392,642

TOTAL 10,333,943,140,608 1,101,799,359,637

In which:

Other short-term payables 10,332,020,042,258 1,085,453,547,978

Other short-term payables to related parties (Note 37) 1,923,098,350 16,345,811,659


Down payment from customers under real estate sale and purchase agreements 3,299,807,295,074 11,686,251,139,746

Advance from customers under other contracts 3,281,471,567,064 4,463,793,282,988

Advance from customers for purchase of resettlement apartments

7,908,840,017 27,902,954,317

Advance from long-term lease contract for apartments (i)

3,110,184,032,352 4,293,845,278,053

Advance from hospitality services 113,443,693,274 125,847,866,400

Advance from hospital services 17,150,880,830 15,286,940,003

Advance from education services and others

32,784,120,591 910,244,215

TOTAL 6,581,278,862,138 16,150,044,422,734

In which:

Advance from customers 6,575,973,160,022 16,125,987,481,196

Advance from related parties (Note 37) 5,305,702,116 24,056,941,538

(i) These are convertible loans from Credit Suisse and Warburg Pincus as presented in Note 27.1. On 11 July 2014, the Group has completed necessary procedures to extend the term of these loans to 2019.

(i) This represents an advance under the Apartment Long-term Lease Contract signed between Royal City JSC and a corporate customer on 1 August 2013 with term of 50 years since the contract date. In case of

(ii) Including an unsecured loan from an individual who bought villas at Phu Quy villas project with the amount of VND32 billion (interest rate of 2% per annum), an unsecured short-term loan from an individual with the amount of VND80.2 billion (interest rate of 7.5% per annum) and from a related party with the amount of VND 10 billion (interest rate of 7% per annum).

21. Short-term loans 23. Statutory obligations

24. Accrued expenses

25. Other short-term payables

22. Advance from customers


Currency: VND

Currency: VND

Currency: VND


finding customers who have demand of purchasing apartments, this contract will be amended or terminated.



25. Other short-term payables (continued)

26. Other long-term liabilities

27. Long-term loans and debts

27.1 Long-term loans

27.1.1 Loan from Bank for Investment and Development of Vietnam – Quang Trung Branch

Details of loans Bank for Investment and Development of Vietnam – Quang Trung Branch are as follows:

(i) Including:

• A deposit of VND2,400 billion from a corporate customer which bears interest at rate of 6% per annum. This deposit is secured by assets legally owned by the Company (or owned by third parties if having the agreement).

• Deposits with total amount of VND4,916 billion from corporate counterparties under Deposit Agreements for the purpose of signing Investment Cooperation Contract in relation to the development of the Group’s real estate projects. Following terms of Deposit Agreements, the Group has used the following assets as collaterals for borrowings of these counterparties from banks:

(i) Including deferred revenue and advance from a customer with the amount of VND159 billion and VND4,612 billion, respectively under the Office Lease Contract signed between Times Trading LLC and a corporate

This loan is secured by the land use right and the assets on the land, real estates, medical equipment of Vinmec International General Hospital at No.458, Minh Khai street, Vinh Tuy ward, Hai Ba Trung district, Hanoi.

• A number of land parcels of Vinpearl Premium Nha Trang Bay Project and future assets attached to these land parcels;

• A number of apartments to be formed in the future of Vinhomes Central Park Project with total ground floor area of 17,869.5 m2.

(ii) Including deposits from third parties for acquiring investments of the Group.


Deferred revenue 1,814,169,164,331 1,087,903,139,336

In which: Deferred revenue to be realised within the next 12 months (Note 25) (401,487,780,110) (199,510,518,218)

1,412,681,384,221 888,392,621,118

Deposits from tenants 415,027,848,581 439,063,497,839

Deposits from tenants to be refunded within the next 12 months (Note 25) (126,677,298,798) (76,495,457,781)

288,350,549,783 362,568,040,058

Payment under the office lease contract at Vincom Center Dong Khoi (i) 4,771,915,262,626 4,872,741,323,233

In which: Deferred revenue to be realised within the next 12 months (Note 25) (100,826,060,606) (100,826,060,606)

Other long term liabilities 41,562,659,358 976,054,358

TOTAL 6,413,683,795,382 6,023,851,978,161

In which:

Other long-term liabilities 6,413,683,795,382 6,020,428,093,634

Other long-term liabilities to related parties - 3,423,884,527

Notes Ending balance Beginning balance

Long-term loans 27.1 10,980,994,453,392 5,847,125,072,771

Corporate bonds 27.2 21,033,824,713,709 18,513,039,421,637

32,014,819,167,101 24,360,164,494,408

Lender Note Ending balance Beginning balance

Bank for Investment and Development of Vietnam – Quang Trung Branch 27.1.1 589,455,214,873 736,819,018,594

In which: current portion (147,363,803,718) (147,363,803,719)

Bank for Investment and Development of Vietnam – Khanh Hoa Branch 27.1.2 187,869,966,672 271,050,790,168


Vietnam Joint Stock Commercial Bank for Industry and Trade 27.1.3 3,970,000,000,000 1,095,000,000,000

In which: current portion (195,000,000,000) -

Joint Stock Commercial Bank for Foreign Trade of Vietnam 27.1.4 2,027,296,322,565 423,863,549,615


Saigon Thuong Tin Joint Stock Commercial Bank 27.1.5 1,771,617,555,000 -

VIAC No. 1 Limited 27.1.6 - 527,125,000,000

Convertible loan 27.1.7 427,500,000,000 -

International syndicated loan 27.1.8 3,206,250,000,000 3,162,750,000,000

In which: current portion (721,406,250,000) -

10,980,994,453,392 5,847,125,072,771

In which

Long-term loans 12,179,989,059,110 6,216,608,358,377

Current portion (Note 21) (1,198,994,605,718) (369,483,285,606)

Currency: VND

Currency: VND

Currency: VND

customer on 5 July 2013 with a duration from the starting date (being the date of completing prerequisites by parties as stated in the lease contract) to 20 February 2058.

Contract number 31 December 2014 Maturity date Interest rate

VND (% per annum)

01/2012/2390074/HĐTD 589,455,214,873 18 January 201912-month VND saving rate (interest paid

in arrears) for individual customers plus 4,5%

In which: current portion (147,363,803,718)

Total 442,091,411,155




27.1.2 Bank for Investment and Development of Vietnam – Khanh Hoa Branch

Details of loans from Bank for Investment and Development of Vietnam – Khanh Hoa Branch are as follows:

27.1.4 Joint Stock Commercial Bank for Foreign Trade of Vietnam

Details of loans from Joint Stock Commercial Bank for Foreign Trade of Vietnam are as follows:27.1.3 Vietnam Joint Stock Commercial Bank for Industry and Trade

Details of loans from Vietnam Joint Stock Commercial Bank for Industry and Trade are as follows:

(i) This loan is secured by:

• All properties of Vinhomes Riverside project developed and owned by Sai Dong JSC, a subsidiary, including all upgrades and other assets already constructed, or to be formed in future, excluding the villa area, the E3, E6, G1, G2 and a part of G3 area, excluding Vincom Center Long Bien;

• Assets on the land at E3 area of Vinhomes Riverside project owned by a company under common owner with the Company;

• Land use right for the 145 ha of land at Vinhomes Riverside project (equivalent to the whole project area excluding the villas) but do not include E3, E6, G1, G2 and a part of G3 areas. All assets formed by the expenditures of project, including but are not limited to machineries and other assets;

• All asset rights, benefits, compensation and other payments in relation to Vinhomes Riverside project at present and in the future;

• 20,096,805 shares of Vingroup JSC owned by a subsidiary (Note 28.4);

• Land use right and assets on the land at No.7 Tran Phu street, Nha Trang city, Khanh Hoa province in accordance with Certificate of Land use right No. BA171887 owned by Hon Mot JSC; and

• All rights arising from the transfer agreement of land use rights with attached infrastructure between Sai Dong JSC and a number of secondary investors.

(ii) This loan is secured by all asset rights, benefits, compensation and other payments in relation to Vinhomes Central Park project at present and in the future, excluding those collateral assets presented in Note 25.

These loans are secured by 15,760,918 Vingroup shares owned by Vinpearl JSC and 8,031,080 Vingroup shares owned by Vinpearl Hoi An LLC as disclosed in Note 28.4.


USD VND (% per annum)

(i) 02/2006/HDTD dated 17 April 2006 499,331 10,675,686,945 12 March 2017 Fixed rate 6.5%

In which: current portion (200,400) (4,284,552,000)

(ii) 02/2006/HDTD dated 17 April 2006 133,267,851,466 12 March 201712-month VND

savings rate + 4%


(iii) 04/2007/HDTD dated 7 April 2007 43,926,428,261 15 August 201712-month VND

savings rate + 4%


TOTAL 116,919,414,672

In which:

Long-term loans 187,869,966,672

Current portion (70,950,552,000)


USD VND (% per annum)

(i)01/2010/HDTD/VCB-VPLDN dated 27 August 2010 272,507,336,900 17 September 2020

12-month VCB saving rate + 4,0%


(ii)01/2010/HDTD/VCB-VPLDN dated 27 August 2010 596,197 12,740,735,019 17 September 2020


In which: current portion (200,000) (4,274,000,000)

(iii)01/2014/HDTD/HGM.VCB-VPLPQ dated 13 May 2014 1,742,048,250,646 30 May 2029

From first day of disbursement to the end of 2014: fixed rate 10,5%. From 1 Jan 2015:


TOTAL 1,963,022,322,565

In which:

Long-term loans 2,027,296,322,565

Current portion (64,274,000,000)


VND (% per annum)

(i) 01/2011/HDTD-SAIDONG 1,095,000,000,000 10 November 2018

Reference interest rate + 5,5% and does not exceed the cap for lending rate

regulated by State Bank of Vietnam and Vietinbank


(ii)01/2014-HDTDDA/NHCT106-TANLIENPHAT 2,875,000,000,000 25 November 2021

Reference interest rate + 3,5% and does not exceed the cap for lending rate

regulated by State Bank of Vietnam and Vietinbank

TOTAL 3,775,000,000,000

In which:

Borrowings 3,970,000,000,000





27.1.4 Joint stock commercial Bank for Foreign Trade of Vietnam (continued)

27.1.5 Saigon Thuong Tin Joint Stock Commercial Bank (“Sacombank”)

Details of loans from Saigon Thuong Tin Joint Stock Commercial Bank are as follows:

The loans contract No.01/2010/HDTD/VCB-VPLDN are secured by the land use right and the assets on the land of the Vinpearl Da Nang project owned by Vinpearl Da Nang LLC.

Collateral for the loan includes property rights arising from the sales contracts of 156 villas at Vinhomes Riverside owned by Vinhomes LLC and conveyance instruments of the sales contract of villas.

• The right, ownership and benefits of an owner in the relation to its charter capital contribution in Vinpearl Phu Quoc LLC;

• Any dividends announced by Vinpearl Phu Quoc LLC but not yet paid to an owner;

• The construction works of Project Stage 1 of the Vinpearl Phu Quoc project (“Project Stage 1”), including but not limited to the villa, the hotel, golf course and other areas with other real estate properties which are built, upgraded, bought, associated or permanently located in or with the villa, the hotel, golf course, other areas and/or in the land at present and in the future;

• Pledged assets under loan contract No 01/2010/HDTC/VCB-VPLDN (“Primary contract”) dated 6 September 2010 and appendix PL01-01/2014/HDTC/VCB.HGM-VPLDN after releasing from all liabilities associated to the Primary contract.

• The mortgage contracts (i.e. contracts, agreements or documents relating to the design, execution, purchase, supply, construction, installation, testing, maintenance, technology transfer, marketing, management and operation of the Project Stage 1, including the reservation

contracts, the villa rental contracts, management contracts which have binding effect of Vinpearl Phu Quoc LLC on and after the date of the Credit agreement), along with the entire accounts receivable and contract rights arising from the mortgage contracts;

• The entire rental and other fees that customers or users of services in the components of Stage 1 Project have to pay;

• Insurance contracts and proceeds from insurance contracts;

• The entire bank accounts and their balances;

• All approvals are issued now or in the future for the benefit of Vinpearl Phu Quoc LLC;

• Machineries and equipment owned by Vinpearl Phu Quoc LLC;

• Intellectual property rights, and all other intangible assets of Vinpearl Phu Quoc LLC not belong to intellectual property rights.


VND (% per annum)

LD1413500066 dated 15 May 2014 1,771,617,555,000 23 May 2019In the first 12 months from disbursement: 11,5% per annum. From the 13th month:

Interest rate + 4% per annum.

TOTAL 1,771,617,555,000

27.1.6 Convertible loan with VIAC No.1 Limited Liability Company (“VIAC No. 1”)

This represents a convertible loan of US$25 million from VIAC No. 1 Limited Liability Company (“VIAC No. 1). This loan has a term of 4 years, with maturity date at 30 June 2016, bearing an initial interest rate of 6% per annum. This convertible loan had been early settled in the year.

27.1.7 Convertible loan with Credit Suisse and Warburg Pincus

These are loans from Credit Suisse and Warburg Pincus under Convertible loans Agreement between Vincom Retail JSC, a subsidiary and these counterparties in 2013 and 2014 with the amount of US$17.5 million and US$2.5 million, equivalent to VND368,987,500,000 and VND58,512,500,000 respectively. These convertible loans bear an interest rate of 8.75% per annum and have collaterals as presented in Note 1 which can be fully or partially converted into preference shares of Vincom Retail JSC during the period beginning three months after the earlier to occur of (i) the completion date of issuing preference shares of Vincom Retail JSC to Credit Suisse and Warburg Pincus; and (ii) 31 March 2014.

27.1.8 International syndicated loan

In October 2013, the Company entered into an international syndicated loan contract with the amount of US$150 million, bearing an interest rate of LIBOR + 5.5% per annum. Payment for principal of this loan divided into 7 instalments, starting from 18th month to 36th month from date of disbursement. Collaterals for these loans include: (i) shares of Vincom Retail JSC owned by the Group and (ii) 24,926,673 shares of the Company held by other entities (Note 28.4). A part of this loan with the value of VND721 billion is presented in short-term loans;

Domestic corporate bonds

As at 31 December 2014, the Group has the following domestic bonds:

• The first bond has a book value of VND2,000 billion consisting of 2,000 bonds, (of which 1,000 bonds issued on 28 August 2012 with 4.5 years to maturity date and 1,000 bonds issued on 18 October 2012 with 3.5 years to maturity date) with floating interest rate, equal to the highest paid-in-arrears saving account in VND rates of Vietinbank (+) other cost of capital (+) 6% per annum.

This type of bond is secured by assets owned by subsidiaries, including (i) all apartments of 2 towers T12, T15; (ii) 2 office towers T13, T26; (iii) 2 schools at T35, T36 at the Vinhomes Times City Project; (iv) 384 apartments at the Vinhomes Royal City Project along with upgrade projects associated with these apartments at the present time or in the future; (v) Land lot No. 02 under the map No. 96 with area of 108,070m2, land lot No. 02 under the map No. 95 with area of 45,002m2 at Hoa Hai ward, Ngu Hanh Son district, Da Nang city, all assets formed and to be formed on and related to these lands; (vi) Land lot No. 01 under the map No. 171/2014/TD.BD with area of 4,302m2, land lot No. 01 under the map No. 172/2014/TD.BD with area of 6,949m2, land lot No. 01 under the map No. 173/2014/TD.BD with area of 2,137.7m2 at An Vien project, Vinh Nguyen ward, Nha Trang city, all assets formed and to be formed on and related to these lands; (vii) Land lot with area of 151,362.5m2 at Area 7, Hon Tre Island, Vinh Nguyen ward, Nha Trang city, all assets formed and to be formed on and related to these lands including construction work for 6-star Luxury hotel, Spa Luxury complex, other supporting components, and other rights, benefit related to the land and its associated assets; and (viii) Land lots from No. 01 to No. 29 under the map No. 00 at Phuoc Hai Unit, Cua Dai ward, Hoi An city with total area of 69,455m2, all assets formed and to be formed including 5-star hotel area and 18 villas, and other rights, benefit related to these lands and their associated assets.

• The second bonds has a book value of VND2,000 billion consisting of 2,000 bonds, issued on 2 April 2013 (of which 1,000 bonds with 3 years to maturity date and 1,000 bonds with 5 years to maturity date) with floating interest rate, equal to the average individual 12-month savings account rate of BIDV, Vietinbank, Vietcombank, and Vietnam Bank for Agriculture and Rural Development (“Agribank”) (+) 5.5% per annum.

This type of bond is secured by: (i) the asset on the land of Vincom Mega Mall Royal City including parking areas; (ii) Vincom Mega Mall Royal City’s revenue account and (iii) incomes and benefits arising from employing the assets on the land;

• The third bonds has a book value of VND2,300 billion consisting of 23,000 bonds, issued on 27 September 2013 with a maturity term of 3 years. Interest rate applied in the

27.2 Corporate bonds


Domestic corporate bonds issued

13,300,000,000,000 10,300,000,000,000

In which: current portion (Note 21)

- (2,250,000,000,000)

International corporate bonds issued

4,245,424,713,709 4,179,709,421,637

In which: current portion

- -

International convertible bonds

3,488,400,000,000 6,283,330,000,000

21,033,824,713,709 18,513,039,421,637

Currency: VND


The loans under contract 01/2014/HDTD/HGM.VCB-VPLPQ are secured by:



first and second interest-bearing periods is 13% per annum and in subsequent periods, interest rate is determined by the average paid-in-arrears 12-month saving interest in VND announced by BIDV (No. 1 Center Transaction branch), Agribank (Transaction Center), Vietinbank (Hanoi branch) and Vietcombank (Transaction Center) (+) 5% per annum.

These bonds are secured by land use right and the asset on the land of retail component of Vincom Ba Trieu – Tower A and B including parking areas, Vincom Center Ba Trieu – Tower C including parking areas and Vincom Center Long Bien.

• The fourth bond has a book value of VND 4,000 billion consisting of 400,000 bonds, issued on 11 February 2014 with a maturity term of 5 years. Interest rate applied in the first and second interest-bearing periods is 11% per annum and in subsequent periods, interest rate is determined by the average paid-in-arrears 6-month saving interest in VND announced by 4 reference banks including Agribank, Vietinbank, BIDV and Vietcombank (+) 4% per annum.

This type of bond is secured by trading center, service and underground parking of Vincom Center Dong Khoi Tower.

• The fifth bond has a book value of VND 3,000 billion consisting of 300,000 bonds, issued on 8 September 2014 with a maturity term of 5 years. Interest rate applied in the first and second interest-bearing periods is 11% per annum and in subsequent periods, interest rate is determined by the average paid-in-arrears 6-month saving interest in VND announced by 4 reference banks including Agribank, Vietinbank, BIDV and Vietcombank (+) 4% per annum.

This type of bond is secured by assets owned by subsidiaries, including (i) land lot No. 00 CC-1 and CC-2 (KT-A Area) at the An Vien project, Vinh Nguyen – Vinh Truong ward, Nha Trang city, Khanh Hoa province with total area of 3,997m2; (ii) land lot No. 01 under the map No. 673/2011/TD.BD at Hon Tre Island, Vinh Nguyen ward, Nha Trang city, Khanh Hoa province with area of 1,327,037m2; (iii) other land lots with total area of 138,795.5m2 at Bai Tru, Vung Me, Hon Tre Island, Vinh Nguyen ward, Nha Trang city, Khanh Hoa province; (iv) all associated assets on land of VAP Project and 5-star hotel Project (including montaged land) which are not exclusively reserved for Vinpearl Luxury Nha Trang and Villas area at Hon Tre island, Nha Trang city, Khanh Hoa province; (v) all asset rights (excluding assets right related to Vinpearl Luxury Nha Trang Project and Villas area), trade receivables account, intellectual property and other intangible assets, benefit on warranty and related assets right, machines and equipment, and all other rights, benefit, reimbursement right on other payments granted to these subsidiaries.

International corporate bonds

• International bonds with face value of US$200 million were issued in November 2013 for a maturity term of 4.5 years.

These bonds are unsecured, bearing fixed interest rate of 11.625% per annum and the interest is paid twice a year.

International convertible bonds

• Convertible bonds with the face value of US$300 million are issued in April and July 2012 with a term of 5 years. This type of bonds is unsecured, bearing fixed interest rate of 5% per annum. Under the terms of these convertible bonds, the bondholders have the right to convert the bonds into ordinary shares of the Company in accordance with the rates may be adjusted annually on 3 October, from 3 October 2012 to 3 October 2016.

In 2014, bondholders converted US$134.8 million of these bonds to 72,220,196 ordinary shares of the Company with the conversion price of VND60,000 per share up to 29 August 2014 and of VND39,000 from thereon. The balance of these bonds as at 31 December 2014 is US$163.2 million.

The Group issued these type of bonds to meet the demand for working capital as well as investment capital in real estate projects and other projects.


as a LeadIng prIvate grOup that successfuLLy BaLances sustaInaBLe and dynamIc deveLOpment In vIetnam, vIngrOup has the pOtentIaL tO achIeve LeadershIp at the regIOnaL and InternatIOnaL LeveLs.



28. Owners’ equity

28.1 Increase and decrease in owners’ equity

28.2 Financial reserve fund

28.3 Ordinary and preference shares

Par value of the outstanding ordinary share is VND 10,000 per share.

Contributed chartered capital

Share premium Treasury shares Other funds Undistributed earnings Total

Previous year

Beginning balance 7,004,620,550,000 3,974,286,534,624 (1,397,646,730,489) 12,845,114,930 962,463,719,641 10,556,569,188,706

Increase in the year 2,276,481,600,000 (2,276,481,600,000) - - - -

Profit for the year - - - - 6,779,512,147,953 6,779,512,147,953

Financial reserve fund - - - 5,000,000,000 (5,000,000,000) -

Increase from convertible bonds 6,966,640,000 34,833,360,000 - - - 41,800,000,000

Issue share to merge with PFV JSC 7,968,000,000 49,003,200,000 - - - 56,971,200,000

Purchase treasury shares - - (2,953,978,284,083) - - (2,953,978,284,083)

Acquisition of subsidiaries - - - - (9,037,054,312) (9,037,054,312)

Ending balance 9,296,036,790,000 1,781,641,494,624 (4,351,625,014,572) 17,845,114,930 7,727,938,813,282 14,471,837,198,264

Current year

Beginning balance 9,296,036,790,000 1,781,641,494,624 (4,351,625,014,572) 17,845,114,930 7,727,938,813,282 14,471,837,198,264

Profit for the year - - - - 3,158,582,676,074 3,158,582,676,074

Financial reserve fund - - - 5,000,000,000 (5,000,000,000) -

Increase from conversion of convertible bonds (i) 722,201,960,000 2,095,118,040,000 - - - 2,817,320,000,000

Stock dividend declared by the Company (ii) 4,527,312,230,000 - - - (4,527,312,230,000) -

Cash dividend declared by the Company (ii) - - - - (1,844,966,743,620) (1,844,966,743,620)

Reissuance of treasury shares (iii) - 29,926,107,875 1,376,700,940,088 - - 1,406,627,047,963

Partial disposal of subsidiaries - 675,848,507,568 - - - 675,848,507,568

Dividends advanced to minority interests in previous year (Note 29) - - - - (288,851,000,000) (288,851,000,000)

Other decrease - - - - (356,390,149) (356,390,149)

Ending balance 14,545,550,980,000 4,582,534,150,067 (2,974,924,074,484) 22,845,114,930 4,220,035,125,587 20,396,041,296,100

Currency: VND

Currency: VND

Currency: VND

(i) In the year, the bondholders converted US$134,800,000 of bonds into 72,220,196 ordinary shares of the Company (at par value VND10,000/share). Consequently, charter capital of the Company increased by VND722,201,960,000 (equivalent to 72,220,196 ordinary shares at par value of VND10,000/share) and share premium increased by VND2,095,118,040,000.

(ii) On 24 July 2014, the General Meeting of Shareholders of the Company passed the Resolution No. 02/2014/NQ-DHDCD-VINGROUP on the declaration of dividend to its existing shareholders from the retained earnings accumulated to 31 December 2013. Specifically:

• Payment of cash dividend to shareholders from the retained earnings accumulated to 31 December 2013 at VND2,149 per share.

• Payment of stock dividend to existing shareholders at the ratio of 1,000:487. Accordingly, each shareholder owning 1,000 shares will receive dividend by 487 shares.

(iii) On 10 April 2014, the Group completed the re-issuance of 21.6 million treasury shares. Consequently, treasury share of the Group decreased by VND1,376,700,940,088 (equivalent to 21,600,000 treasury shares at share value VND63,736/share) and share premium increased by VND29,926,107,875, after deduction of re-issuance cost and related tax incurred.


Financial reserve fund 22,845,114,930 17,845,114,930

Total 22,845,114,930 17,845,114,930


Number of shares registered to issue 1,454,555,098 929,603,679

Number of shares issued to public 1,454,555,098 929,603,679

Ordinary shares 1,454,555,098 929,603,679

Preference shares - -

Number of outstanding shares 1,348,806,899 836,888,541

Ordinary shares 1,348,806,899 836,888,541

Preference shares - -




28.4 Treasury shares

As at 31 December 2014, the number of shares held by the subsidiaries and associates is as follows:

29. Minority interests

Current year Previous year

Beginning balance 4,144,705,643,024 317,062,071,475

Capital contribution by minority interests 2,948,518,325,753 3,256,960,309,647

Minority interests arising from acquisition of subsidiaries 1,771,122,364,556 559,429,843,522

Decrease in minority interests due to withdrawal of capital - (1,800,000,000)

Share of premium from re-issue treasury by subsidiaries 1,110,846,866 -

Share of post-acquisition profit 617,463,065,409 369,775,972,604

Share in consideration for acquiring subsidiaries - (17,958,042,408)

Changes in minority interests due to acquisitions of additional equity interest in existing subsidiaries (1,683,527,470,290) (8,503,623,485)

Changes in minority interest due to disposal of equity interest in existing subsidiaries (453,311,293,506) -

Dividends declared to minority interests (743,116,612,431) (310,235,706,583)

Decrease in minority interests of PFV being merged to Vingroup JSC - (20,025,181,748)

Decrease due to the disposal of a subsidiary (3,223,906,441) -

Dividends advanced to minority interests in previous year (Note 28.1) 288,851,000,000 -

Ending balance (i) 6,888,591,962,940 4,144,705,643,024


Gross revenue 27,726,701,600,235 18,379,268,633,216

Revenue from sale of inventory property 21,771,825,649,847 14,657,846,833,066

Revenue from leasing activities and rendering related services 2,129,488,233,032 1,798,711,062,674

Revenue from rendering hotel, amusement park and related services 2,115,560,587,606 1,600,165,486,836

Revenue from rendering hospital and related services 656,565,516,769 286,917,398,734

Revenue from sale of goods in supermarkets and retail outlets 422,544,558,414 1,676,808,280

Revenue from rendering education and related services 229,548,890,248 3,837,671,011

Other revenue 401,168,164,319 30,113,372,615

Less (3,068,229,199) (1,629,787,510)

Sales allowance - -

Revenue deduction (3,068,229,199) (1,629,787,510)

Net revenue 27,723,633,371,036 18,377,638,845,706

Revenue from sale of inventory property 21,771,825,649,847 14,657,846,833,066

Revenue from leasing activities and rendering related services 2,129,488,233,032 1,798,711,062,674

Revenue from rendering hotel, amusement park and related services 2,113,985,422,722 1,598,573,038,093

Revenue from rendering hospital and related services 656,565,516,769 286,917,398,734

Revenue from sale of goods in supermarkets and retail outlets 421,051,494,099 1,639,469,513

Revenue from rendering education and related services 229,548,890,248 3,837,671,011

Other revenue 401,168,164,319 30,113,372,615


Interest income 1,135,822,131,296 752,642,642,323

Reversal of provision for diminution in value of investments - 3,589,920,000

Unrealised foreign exchange gain - 2,027,295,446

Realised foreign exchange gain 25,073,872,348 618,980,867

Dividend income 6,283,198,881 3,831,666,761

Gain from acquisition of additional equity interest in an existing subsidiary (Note 4) 18,399,002,185 -

Gain on re-measurement of previously held equity interest in an associate (i) 49,000,000,000 -

Gain from disposal of the equity interest in other entities 111,050,324,885 5,671,793,229,484

Other financial income 393,561,441 1,545,020,340

TOTAL 1,346,022,091,036 6,436,048,755,221

(i) Including capital contributions of VND3,685 billion (after deduction of issuance costs) from Warburg Pincus and Credit Suisse to Vincom Retail JSC, a subsidiary in accordance with the agreements signed between the Company, Vincom Retail JSC and other companies within the Group with Warburg Pincus and Credit Suisse on 28 May 2013 and 12 July 2013 together with later amendments, Vincom Retail JSC issued

(i) This gain arose from the acquisition of business from Eight Lions JSC as presented in Note 17.1.

• Vinpearl JSC held 52,636,985 shares, of which 15,760,918 shares are being used as a pledge for a loan of Vinpearlland LLC, a subsidiary (Note 27.1.2); 2,974,000 shares used as a pledge for a bank credit limit contract of Company; and 9,305,144 shares being used as a collateral for international syndicated loan of the Company (Note 27.1.8).

• Royal City JSC, a subsidiary, held 35,325,583 shares; in which 20,096,805 shares are being used as a pledge for the loan from Vietinbank of Sai Dong JSC, a subsidiary (Note 27.1.3); 12,808,099 shares were being used as a collateral for international syndicated loan of the Company (Note 27.1.8).

• Vinpearl Hoi An LLC, a subsidiary, held 10,844,510 shares

Currency: VND

Currency: VND

Currency: VND

30. Revenues

30.1 Revenues from sale of goods and rendering of services

30.2 Finance income


in which 2,813,430 shares used for pledge for international syndicated loan of the Company (Note 27.1.8) and 8,031,080 shares used for pledge for a bank loan of Vinpearl Nha Trang LLC (Note 27.1.2).

• Xavinco JSC, a subsidiary, held 6,941,121 shares; in which 3,521,216 shares is being used as pledge for a contractual obligation of Tan Lien Phat JSC.

preference shares and ordinary shares to Warburg Pincus and Credit Suisse. Preference shares issued by Vincom Retail JSC are dividend preference shares, having the right to convert to ordinary shares of Vingroup JSC and enjoying other privileges.




Rental income from investment properties 2,129,488,233,032 1,798,711,062,674

Direct operating expenses of investment properties that generated rental income during the year 889,995,220,304 697,314,853,019

Income from investment property trading 298,601,954,166 257,618,620,910


Foreign Trade Concrete JSC 665,585,470 (259,466,899)

Eight Lions JSC (36,911,617,846) (12,088,382,154)

Green City JSC 27,197,650,951 39,545,238,336

Vietnam Tourism JSC - 656,642,443

Dai An JSC - 26,057,774,293

Vien Dong Pearl LLC 108,844,987 -

Hanoi Breed JSC (675,832,963) -

Thang Long JSC 844,710,147 788,381,766

TOTAL (8,770,659,254) 54,700,187,785


Other income 261,925,884,973 135,646,492,056

Income from disposal of fixed assets 24,328,372,540 23,607,815,985

Income from contract penalty 191,673,717,485 83,444,336,888

Other income 45,923,794,948 28,594,339,183

Other expenses 227,116,582,678 56,842,117,086

Costs of fixed assets disposed 21,224,154,155 26,621,331,041

Contract penalties and other fines 171,778,694,069 27,345,113,358

Other expenses 34,113,734,454 2,875,672,687

NET 34,809,302,295 78,804,374,970


Cost of developing inventory property 10,082,169,661,584 10,456,897,194,237

Other inventories 879,029,080,377 271,936,593,267

Labour costs 1,694,145,663,642 923,072,762,364

Depreciation and amortisation 1,577,833,100,022 1,197,531,118,187

Expenses for external services 1,561,742,854,969 1,059,335,337,045

Other expenses (including finance expenses) 4,431,289,148,523 2,426,978,775,627

TOTAL 20,226,209,509,117 16,335,751,780,727


Cost of inventory property sold 13,719,454,965,743 9,399,121,627,814

Cost relating to the leasing activities and rendering related services 889,995,220,304 697,314,853,019

Cost of rendering hotel, amusement park and related services 1,275,315,373,836 870,311,335,455

Cost of rendering hospital and related services 490,626,247,256 346,922,315,219

Cost of goods sold in supermarkets and retail outlets 428,567,949,879 1,123,130,720

Cost of rendering education and related services 143,803,619,760 2,607,100,540

Others 337,148,103,138 29,583,765,540

TOTAL 17,284,911,479,916 11,346,984,128,307


Loan interest 2,711,269,664,974 1,459,922,785,660

Unrealised foreign exchange losses 153,521,258,290 93,428,725,363

Realised foreign exchange losses 3,958,699,850 9,893,469,274

Provision for diminution in value of investments 25,260,645,258 39,003,948,221

Allocation of bond issuance fees 205,141,970,088 248,875,921,649

Loss on disposal/sale of investments 256,429,191,919 34,308,006,726

Early settlement discount 124,052,174,708 -

Other finance expenses 11,418,981,973 58,194,475,668

TOTAL 3,491,052,587,060 1,943,627,332,561

Currency: VND

Currency: VND

Currency: VND

Currency: VND

Currency: VND

Currency: VND

Currency: VND

31. Shares in net (loss)/profit of associates

34. Other income and other expenses

35. Production and operating costs

36. Corporate income tax

The statutory corporate income tax (“CIT”) rate applicable to the Company and its subsidiaries for the year ended 31 December 2014 is 22%, except for the following entities:

• Vinpearl JSC, Vinpearl Nha Trang LLC and Vinpearlland LLC apply the tax rate of 5% ;

• Vinpearl Da Nang LLC applies the tax rate of 15% applied for the taxable income from rendering the hospitality service;

• Vinmec JSC, Vinpearl Phu Quoc LLC, Vinpearl Ha Long LLC and Vinschool LLC are in the tax exemption period;

• A number of entities in the Group whose turnover of less than VND20 billion are applying tax rate of 20%.

The tax returns filed by the Company and subsidiaries are subject to examination by the tax authorities. As the application of tax laws and regulations is susceptible to varying interpretations, the amounts reported in the consolidated financial statements could change at a later date upon final determination by the tax authorities.

36.1 CIT expenses

32. Cost of goods sold and services rendered

33. Finance expenses

30.3 Revenue and cost related to investment properties


Current corporate income tax expenses

1,653,273,503,894 2,594,314,637,696

Deferred corporate income tax income (19,638,606,879) (3,516,776,375)

TOTAL 1,633,634,897,015 2,590,797,861,321

The current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted by the balance sheet date.





Profit before tax 5,409,680,638,498 9,740,085,981,878

Adjustments to increase/(decrease)

Donations 285,865,183,534 41,553,544,826

Cost of inventory property sold without sufficient supporting documents

2,604,620,000 7,450,232,144

Difference in loss/(profit) from disposal of equity interest in subsidiaries and associates between consolidated and separate financial statements

291,421,328,258 (40,067,546,158)

Gain from disposal a subsidiary and loss of control 787,985,225 -

Reversion of provision for the investment in subsidiary (74,376,020,041) -

Gain from re-measurement of previously held equity interest in associate

(49,000,000,000) -

Amortisation of goodwill 649,042,000,805 589,083,963,573

Loss from transfer of investment properties among subsidiaries (99,305,922,543) -

Amortisation of land development right 84,087,059,015 9,217,901,051

Dividend income (6,283,198,881) (3,831,666,761)

Shares in loss/(profit) of associates 8,770,659,254 (54,700,187,785)

Profit from re-issuing treasury shares held by subsidiaries 14,872,172,856 -

Revaluation of land use right for villa sold at Vinpearl Da Nang LLC 15,768,734,961 5,256,244,987

Expenses to support counterpart not eligible for deductibility - 61,610,000,000

Adjustment for last year administration penalty - (94,335,212,640)

Costs of properties transferred temporarily not deductible 57,921,754,743 68,790,979,201

Taxable income from merger between the Company and PFV 163,090,875,120 -

Profit/(loss) from rendering services not recognized in consolidated financial statements

59,261,993,154 (65,040,362,979)

Others (2,768,215,830) (54,067,002,087)

Adjusted net profit before loss carry forward and tax 6,811,441,648,128 10,211,006,869,250

Losses of subsidiaries 1,186,581,865,797 201,237,243,607

Tax loss carried forward (215,557,714,205) (5,684,854,451)

Estimated current taxable profit 7,782,465,799,720 10,406,559,258,406

In which:

Taxable profit subject to prevailing tax rate (normal business activities) (*)

1,558,013,085,116 5,773,748,384,522

Taxable profit subject to prevailing tax rate (real estate activities) (*)

5,766,957,895,424 4,523,852,465,503

Taxable profit subject to 20% tax rate 14,888,632,771 22,951,582,336

Taxable profit subject to 5% tax rate (hospitality activities) 451,531,057,425 306,482,174,460

Taxable profit subject to 0% tax rate (education activities) 14,360,822,188 -

Losses ineligible for offsetting against taxable income (23,285,693,204) (220,475,348,415)

Estimated current Corporate Income Tax 1,637,047,895,144 2,594,314,637,696

Adjustment for CIT from re-issue of treasury shares by subsidiaries (3,271,878,027) -

Net estimated current Corporate Income Tax charged to the consolidated income statement 1,633,776,017,117 2,594,314,637,696

Adjustment for under/(over) accrual of tax from previous years 19,497,486,777 -

Adjusted net estimated current Corporate Income Tax charged to the consolidated income statement 1,653,273,503,894 2,594,314,637,696

Currency: VND Currency: VNDA reconciliation between the profit before tax and taxable profit is presented below:

(*)Prevailing tax rate applied for the year 2014 and 2013 is 22% and 25%, respectively.


CIT payables at the beginning of the year 896,557,840,180 250,047,955,686

Adjustment for CIT from re-issue of treasury shares by subsidiaries 3,271,878,027 -

Adjustment for CIT obligation for disposing Future Investment and Trading Services One Member Limited Liability Company - (13,228,615,094)

CIT obligation arisen from acquisition of new subsidiaries 4,315,419,967 -

Other adjustments 7,745,990,053 324,488,224

Provisional CIT for down payment from customers 43,836,133,922 79,553,231,620

Adjustment for reduction of estimated CIT in previous years (194,473,147,303) (210,934,878,408)

CIT paid during the year (1,910,568,513,664) (1,803,518,979,544)

CIT payable at the end of the year 503,959,105,076 896,557,840,180

36.1 CIT expenses (continued)

36.1 CIT expenses (continued)




Currency: VND

The following are the deferred tax assets and liabilities recognised by the Group, and the movements thereon, during the current and previous year

36.2 Deferred CIT

36.3 Unrecognised deferred tax

Tax losses carried forward

The Company and its subsidiaries are entitled to carry each individual tax loss forward to offset against taxable profits arising within five years subsequent to the year in which the loss was incurred. At 31 December 2014, the Company and some subsidiaries have aggregated accumulated tax losses of VND2,010,683,338,011 available for offset against future taxable profits.

Consolidated balance sheet Credit/(charge) to consolidated income statement

31 December 2014

31 December 2013


Accrued advertising expenses and sold investment properties - 12,755,197,365 (12,755,197,365) (973,975,316)

Capitalization of general management costs 420,993,344 420,993,344 - (533,871,525)

Provision for severance allowance 302,543,434 302,543,434 - -

Unrealised losses on revaluation of foreign currency denominated balances 108,436,413 204,932,136 (96,495,723) (32,924,293)

Temporary difference from assets used as capital contribution to subsidiaries 28,080,276,384 28,940,232,402 (859,956,018) (977,222,748)

Temporary difference related to Vincom Center Ba Trieu – Tower C - (18,667,899,251) 18,667,899,251 1,266,097,314

Differences on internal capital contribution to Vincom Long Bien LLC 4,635,648,138 - 4,635,648,138 -

Differences on internal capital contribution to Vincom Megamall Times City (24,496,832,647) - (24,496,832,647) -

Differences on fair value at acquisition of Khanh Gia JSC (77,223,969,220) - - -

Differences on revaluation of subsidiaries’ assets at acquisition date (49,106,901,690) (53,000,662,787) 3,893,761,097 1,738,700,652

Temporary difference from margin of Vincom Construction charged to related parties

23,036,514,474 - 23,036,514,474 -

Temporary difference from revaluation of project development right of Hon Mot Resort

(16,563,124,040) (24,176,389,712) 7,613,265,672 3,029,972,291

Others (978,752,000) (978,752,000) - -

Net deferred tax liabilities (111,785,167,410) (54,199,805,069)

Deferred tax income 19,638,606,879 3,516,776,375

Reflected in the consolidated financial statements as follows:

Deferred tax assets 56,584,412,187 42,623,898,681

Deferred tax liabilities (168,369,579,597) (96,823,703,750)

Deferred tax liabilities, net (111,785,167,410) (54,199,805,069)

These are estimated tax loss as per the subsidiaries’ corporate income tax declarations which have not been audited by the local tax authorities as of the date of these consolidated financial statements. No deferred income tax assets were recognised in respect of the aforementioned accumulated tax losses because future taxable profit of these subsidiaries cannot be ascertained at this stage.

37. Transactions with related parties

Significant transactions with related parties during the year were as follows:

Related parties Relationship Transactions Amount (VND)

Vietnam Investment Group JSCUnder common owners

Receivable from transfer of properties 163,028,002,628

Management fee occurred 15,840,000,000

Management fee received (15,840,000,000)

Securities fee occurred 14,852,992,000

Securities fee received (14,651,648,000)

Rental fee and meals expenses occurred (37,113,839,559)

Rental fee and meals expenses paid 35,638,271,797

Other payment/ receivables 9,375,599,448

Other receipts/ payables (9,076,673,697)

Green City Development JSC Associate Advance for business cooperation contract 266,500,000,000

Borrowings (300,000,000,000)

Principal paid 300,000,000,000

Interest payable (13,605,741,736)

Interest paid 13,605,741,736

Hanoi Electronics CorporationMajor shareholder of subsidiary (up to 18 August 2014)

Dividend payable (285,000,000,000)

Dividend settled (Note 8) 285,200,000,000

Interest receivable 20,813,602,182

Interest received (32,044,286,982)

Collection of deposits for purchasing share (200,000,000,000)

Loans principal received (240,000,000,000)

Payable for share acquisition (564,144,000,000)

Settlement of share acquisition fee 564,144,000,000

Supporting fee payable (21,000,000,000)

Settlement of supporting fee 26,760,821,966

Eight Lions JSCAssociate (up to 24 May 2014)

Rental fee receivable 5,059,354,052

Rental fee received (4,333,575,318)

Lending 39,000,000,000

Interest receivables 1,120,383,561





Tan Lien Phat JSCAssociate (up to 24 February 2014)

Advance for business co-operation contract 1,300,000,000,000

Interest receivable 3,791,666,667

Thang Long JSC Associate Lending 16,106,000,000

Interest receivable 178,755,961

Vien Dong Pearl LLC Associate Borrowing (10,000,000,000)

Interest payable (301,388,889)

Key members of managementKey members of management

Handover of apartments 4,468,893,810

Services fee receivable 666,902,943

Services fee received (600,766,569)

Rental fee payable (359,087,520)

Rental fee paid 361,393,200

Family members of key members of management


Handover of apartments 14,078,206,401

Services fee receivable 525,948,720

Services fee received (493,575,642)

Rental fee payable (334,273,858)

Rental fee paid 190,536,466


Trade receivables (Note 7)


Receivable from transfer of properties 163,028,002,628


Services fee receivables 68,442,054



Services fee receivables 33,633,078

163,130,077,760

Other receivables (Note 8)

Vietnam Investment Group JSC Common owners Services fees receivables 546,429,751

Thang Long JSC Associate Interest receivables 179,534,749

725,964,500

Advance from customers (Note 22)


Progress payment for apartments in Times City and Royal City project 246,729,833



Progress payment for apartments in Times City and Royal City project 5,058,972,283

5,305,702,116

Other payables (Note 25)


Office rental and meals expense payables 1,621,709,461

Vien Dong Pearl LLC Associate Interest payables 301,388,889

1,923,098,350

Terms and conditions of transactions with related parties:

During the year, the Group provided unsecured loans to related parties at interest rates ranging from 7% to 10% per annum, and received unsecured loans from related parties at interest rates of 7% per annum. During the year the Group also sold/purchased goods and rendering/purchased services to/from related parties based on market price.

During the year, the Group has not made provision for doubtful debts relating to amounts due from related parties (31 December 2013: nil). This assessment is undertaken each financial period through the examination of the financial position of the related party and the market in which the related party operates.


Amounts due to and due from related parties as at 31 December 2014 were as follows:37. Transactions with related parties (continued)



Details on loans and interest rate from/to related parties are as follows:

Transactions with other related parties

Remuneration to members of the Board of Directors and Management:

Related parties Relationship Interest rate% per annum

Maturity date Collateral Balance of loansVND

Short-term loans (Note 21)

Vien Dong Pearl LLC Associate 7% 30 March 2015 None 10,000,000,000

10,000,000,000

Short-term investment (Note 6)

Thang Long JSC Associate 7% 1 December 2015 None 1,204,181,818

Thang Long JSC Associate 7% 2 December 2015 None 15,000,000,000

16,204,181,818

Current year (VND) Previous year (VND)

Salaries and bonus 67,396,164,685 38,109,127,559

67,396,164,685 38,109,127,559

38. Earnings per share

Basic earnings per share amounts are calculated by dividing net profit after tax for the year attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net profit after tax attributable to ordinary equity holders of

Current year Previous year (restated)

Net profit after tax attributable to ordinary equity holders for basic earnings 3,158,582,676,074 6,779,512,147,953

Dilution effect

Interest on convertible bonds 192,708,633,502 247,554,304,660

Net profit attributable to ordinary equity holders adjusted for the effect of dilution

3,351,291,309,576 7,027,066,452,613

Weighted average number of ordinary shares (excluding treasury shares) for basic earnings per share 872,698,394 643,955,322

Effect of bonus issues in January 2013 - 214,658,691

Effect of bonus issues in July 2014 418,098,151 418,098,151

Restated weighted average number of ordinary shares (excluding treasury shares) for basic earnings per share

1,290,796,545 1,276,712,164

Effect of dilution:

Convertible bonds 139,146,136 104,097,461

Weighted average number of ordinary shares (excluding treasury shares) adjusted for the effect of dilution

1,429,942,681 1,380,809,625

Basic earnings per share 2,447 5,310

Diluted earnings per share 2,344 5,089

39. Segment information

For the management purpose, the operating businesses are organised and managed separately according to the nature of the products and services provided, and consist of seven business segments as following:

• Sales of inventory property: including developing and trading apartments and villas at real estate projects of the Group as well as other investment activities in real estate sector.

• Leasing investment properties and related services: including leasing of office and retail areas and rendering related services at investment properties owned by the Group.

• Hospitality, entertainment and other services: including provision of hotel and related services at the hotels and resorts owned by the Group.

• Health care and related services: including provision of health care and related services at Vinmec International General Hospital.

• Education and related services: including provision of education and related services at Vinschool system of the Group.

• Retail services: including provision of retailing and supermarket services.

• Others: including provision of management, security and other services.

The Group manages operating results separately for each business segment for the purpose of making resources allocation decision and result assessment. Result of each segment will be

Currency: VND

the Group (after adjusting for interest on the convertible bonds) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.


The following reflects the income and share data used in the basic and diluted earnings per share computations:

Preference shares (Note 29) and convertible loans (Note 27.1.7) issued by Vincom Retail JSC, a subsidiary, could potentially dilute basic earnings per share in the future, but were not included in the calculation of diluted earnings per share because they are anti-dilutive for the years presented.

37. Transactions with related parties (continued)



assessed based on profit/loss and determined consistently with profit/loss of the Group in the consolidated financial statements. However, financial activities of the Group (including finance income and finance expenses) is managed centrally and not allocated for each business segment.

Transfer prices between business segments are set on an arm’s length basis in a manner similar to transactions with third parties. Segment revenue, segment expense and segment result

include transfers between business segments. Those transfers are eliminated in preparation of the consolidated financial statements and reflected in the “adjustment and elimination” column.

The following tables present revenue and profit and certain assets and liability information regarding the Group’s business segment.

Sales of inventory property

Leasing investment properties and

related services

Hospitality, entertainment and

other services

Health care and related services

Education and related services Retail Others Adjustment and elimination

Total

Revenue

Sales to external customers 21,771,825,649,847 2,129,488,233,032 2,113,985,422,722 656,565,516,769 229,548,890,248 421,051,494,099 401,168,164,319 - 27,723,633,371,036

Inter-segment sales (1) - 778,696,934,945 140,427,399,343 13,829,514,224 1,012,350,000 33,237,828,095 2,720,931,430,969 (3,688,135,457,576) -

Total revenue 21,771,825,649,847 2,908,185,167,977 2,254,412,822,065 670,395,030,993 230,561,240,248 454,289,322,194 3,122,099,595,288 (3,688,135,457,576) 27,723,633,371,036

Results

Fixed assets depreciation 33,861,787,629 499,559,630,229 250,609,520,696 127,129,037,014 465,525,772 15,027,677,554 7,261,606,505 - 933,914,785,399

Share in profit/(loss) of associates 28,151,206,086 - - - - (36,911,617,847) (10,247,493) - (8,770,659,254)

Segment profit/(loss) (2) 6,217,539,280,539 1,022,889,336,250 489,651,791,617 121,650,399,311 9,088,794,530 (264,903,585,578) (41,204,882,146) (2,145,030,496,025) 5,409,680,638,498

Assets

Investments into associates 969,790,690,811 - - - - - 60,704,040,559 - 1,030,494,731,370

Capital expenditure 5,357,291,594,402 8,134,749,001,327 3,427,470,280,653 133,060,636,629 2,104,188,059 74,290,974,225 311,634,614,363 - 17,440,601,289,658

Total assets (3) 36,601,175,856,466 19,863,459,553,895 9,769,853,979,365 1,806,462,156,155 511,016,126,089 1,820,448,090,717 3,755,028,498,500 16,357,862,938,673 90,485,307,199,860

Total liabilities (4) 10,894,810,218,793 12,158,692,320,971 1,847,769,303,370 96,884,073,978 628,706,951,062 323,223,295,392 1,337,482,396,566 35,913,105,380,688 63,200,673,940,820

Currency: VND

(1) Inter-segment sales are eliminated in consolidation.

(2) Segment profit does not include finance income (VND1,346,022,091,036) and finance expense (VND3,491,052,587,060) because the underlying instruments are managed on a group basis.

(3) Segment assets do not include goodwill (VND6,214,457,676,679), deferred tax assets (VND56,584,412,187), short-term investments (VND6,168,171,238,968) and other long-term investments (VND 3,918,649,610,843) because these assets are managed on a group basis.

(4) Segment liabilities do not include long-term loans (VND32,014,819,167,101), statutory obligations (VND1,037,104,329,754), short-term loans (VND1,321,194,605,718), accrued interest expenses (VND1,371,617,698,518) and deferred tax liabilities (VND168,369,579,597) because these liabilities are managed on a group basis.




41. Financial risk management objectives and policies

The Group’s financial liabilities comprise loans and borrowings, corporate bonds, convertible bonds and loans, accruals, trade and other payables. The main purpose of these financial liabilities is to finance the Group’s operations. The Group also has various financial assets such as trade and other receivables, loans receivables, quoted and unquoted securities, cash and short-term deposits, which arise directly from its operations.

The Group is exposed to market risk, credit risk and liquidity risk.

Risk management is integral to the whole business of the Group. The Group has a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. The management continually monitors the Group’s risk management process to ensure that an appropriate balance between risk and control is achieved.

Management reviews and agrees policies for managing each of these risks which are summarized below:



Code 02 – Fixed asset depreciation and amortisation (including goodwill amorisation)

Depreciation and amortization(Note 12, 13 and 15) 933,914,785,399 589,659,772,264

Goodwill amortisation (Note 20) 649,042,000,805 589,083,963,573

Total 1,582,956,786,204 1,178,743,735,837

Code 05 – (Profit)/loss from investing activities

(Gain)/loss on disposal of fixed assets (Note 34) (3,104,218,385) 3,013,515,056

Gain on disposal of investment properties (274,729,598,999) -

Loss/(gain) on disposal of equity investments in other entities (Note 30.2 and 33) 77,979,864,849 (5,637,485,222,758)

Share of loss/(profit) of associate (Note 31) 8,770,659,254 (54,700,187,785)

Interest and dividend income (Note 30.2) (1,142,105,330,177) (756,474,309,084)

Total (1,333,188,623,458) (6,445,646,204,571)

Code 21 – Purchase, construction of fixed assets and other long-term assets

Purchase, construction of fixed assets and other long-term assets (11,378,574,548,052) (8,589,796,722,908)

Deposit for potential real estate projects (700,000,000,000) (1,900,000,000,000)

Total (12,078,574,548,052) (10,489,796,722,908)

Code 23 – Loans to other entities and payments for purchase of debt instruments of other entities

Disbursement of loans (885,106,000,000) (3,528,200,635,090)

Short-term deposits (3,509,011,030,716) (4,541,578,166,950)

Total (4,394,117,030,716) (8,069,778,802,040)

Code 24 – Collections of loans, withdrawal from debt investment in other entities

Collection of loans 1,711,688,675,151 730,888,896,482

Withdrawal of short-term deposits 2,232,617,805,005 4,049,451,412,100

Total 3,944,306,480,156 4,780,340,308,582

Code 25 – Payments for equity investments in other entities

Acquisition of subsidiaries, net of cash balance at subsidiaries at acquisition date (2,359,415,821,372) (2,866,077,367,641)

Acquisition of additional shares in existing subsidiaries (3,025,235,910,444) (251,000,000,000)

Payments for equity investments in other entities (1,529,685,000,000) (2,766,589,691,339)

Advance for business co-operation contracts (5,800,000,000,000) (266,500,000,000)

Total (12,714,336,731,816) (6,150,167,058,980)


Code 26 – Proceeds from disposals of equity investments in other entities

Collection of advance for business cooperation contract 266,500,000,000 -

Proceeds from disposals of subsidiaries, net of cash disposed 354,099,660,000 9,697,723,681,183

Proceeds from disposals of equity investments in other entities 465,000,000,000 760,299,910,908

Collection of deposit for transfer of equity investments 232,200,000,000 -

Proceeds from deposit of counterparties for transfer of equity investments 474,312,091,675 -

Collection of deposit in real-estate investment project 800,000,000,000 -

Total 2,592,111,751,675 10,458,023,592,091

Code 31 – Capital contribution and issuance of shares

Proceeds from re-issue of treasury shares 1,411,009,772,856 -

Total 1,411,009,772,856 -

40. Notes to cash flow movement 40. Notes to cash flow movement (continued)

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise four types of risk: interest rate risk, currency risk, commodity price risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings, corporate bonds, convertible bonds and financial investments.

The sensitivity analyses in the following sections relate to the financial position as at 31 December 2014 and 31 December 2013.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant.

In calculating the sensitivity analyses, management assumed that the sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 December 2014 and 31 December 2013.




Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt obligations with floating interest rates.

The Group manages its interest rate risk by keeping close watch on relevant market situation, including domestic and international money market and economic, in order to contemplate and

Equity price risk

The Group’s listed and unlisted equity securities are susceptible to market price risk arising from uncertainty about future values of the investment securities. The Group manages equity price risk by placing a limit on equity investments. The Group’s management reviews and approves all equity investment decisions. At the reporting date, the exposure to listed equity securities was insignificant.

Commodities price risk

The Group exposes to commodity price risk in relation to purchase of certain commodities that are used for the construction of its real estate projects. The Group manages its commodity price risk by keeping close watch on relevant information and situation of commodity market in order to properly manage timing of purchases, construction plans and inventories level. The Group does not employ any derivative financial instruments to hedge its commodity price risk.

Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or a customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivable) and from its financing activities, including deposits with banks and loans to other parties.

Trade receivables from rendering hospitality services and leasing activities

For office and retail tenants, customer credit risk is managed when the Group generally requires customers to make deposits for leasing of office and retail areas.

The Group regularly monitors outstanding trade receivables and closely monitors long outstanding balances. The Group assessed if there is any impairment on the outstanding balance at each reporting date on an individual basis to set up provision properly. On the fundamental basis, the provision for receivables from rendering hospitality services and leasing activities at 31 December 2014 was VND 21,083,486,835.

Trade receivables from sale of real estate properties

As presented in Note 7, the Group has outstanding receivables from transfer of real estate properties to corporate and individual customers. The Group manages this credit risk by regularly monitoring the collection progress from these customers and assess if there is any impairment on the outstanding balance to set up provision properly. On the fundamental basis, the provision for receivables from sale of real estate properties at 31 December 2014 was nil.

adapt its leverage level as well as financing strategies to the prevailing situation.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates expected over the following financial year. With all other variables held constant, the Group’s profit after tax is affected through the impact on floating rate borrowings as follows (impact to its equity is not significant):

The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market environment.

Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign currency rates relate primarily to the Group’s operating activities such as term deposit, capital mobilization and other routine operating activities in foreign currency.

The Group has not entered into hedge derivatives to eliminate its currency exposures.

Increase/decrease in basis points

Effect on profit before tax

Short Medium Long

For the year ended 31 December 2013

VND +375 +325 +325 (265,771,835,509)

VND -375 -325 -325 265,771,835,509


VND +165 +130 +130 (64,058,723,820)

VND -165 -130 -130 64,058,723,820

USD +100 +138 +138 (35,931,466,184)

USD -100 -138 -138 35,931,466,184

Currency: VND

Currency: VND

Change in VND/USD rate

Effect on profit before tax


+2% (290,441,815,494)

-2% 290,441,815,494


+2% (221,182,496,185)

-2% 221,182,496,185

Other receivables

As presented in Note 8, the Group has other receivables from other entities and individuals. The Group manages this credit risk by regularly monitoring the collection progress from these customers and assess if there is any impairment on the outstanding balance to set up provision, which, as at 31 December 2014, is VND18,765,801,355.

Loans to others

As presented in Note 6 and Note 17.2, the Group has provided certain loans to other entities. These balances are not secured, or secured by unquoted securities. The Group manages this credit risk by regularly monitoring the collection progress from these counterparties and assess if there is any impairment on the outstanding balance to set up provision, which, as at 31 December 2014, is VND45,908,601,100.

Deposits with banks

The Group’s bank balances are mainly maintained with well-known banks in Vietnam. Credit risk from balances with banks and financial institutions is managed by Group’s treasury in accordance with the Group’s policy, which is to place deposits with reputable banks and financial institutions. The maximum lending credit risk faced by the Group as to the items in the balance sheet as at report date is carrying amount as presented in Note 5 and Note 6. The Group evaluates the concentration of credit risk in respect to bank deposit is low.

Except for those financial assets for which provisions have been made as disclosed in Note 6 and Note 7, the Group’s management evaluates all financial assets are neither past due nor impaired as they related to recognised and creditworthy counterparties except for the following receivable and loan balances which are past due but not impaired:




Currency: VND

Currency: VND

Credit risk (continued)

Liquidity risk

The liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligation due to shortage of funds. The Group’s exposure to liquidity risk arises primarily from mismatches of maturities of financial assets and liabilities. The Group monitors its liquidity risk by arranging long-term credit facilities from the banks and long-term corporate bonds so that these loans/bonds will be settled once the Group completes

On demand Less than 1 year From 1 to 5 years Over 5 years Total

31 December 2014

Loans and borrowings - 1,321,194,605,718 26,797,388,873,123 1,301,530,293,978 29,420,113,772,819

Convertible loans and bonds

- - 3,915,900,000,000 - 3,915,900,000,000

Trade payables 1,628,746,222,883 - - - 1,628,746,222,883

Other payables and accrued expenses

2,873,442,651,944 2,608,948,981,003 215,355,579,422 72,994,970,362 5,770,742,182,731

4,502,188,874,827 3,930,143,586,721 30,928,644,452,545 1,374,525,264,340 40,735,502,178,433

31 December 2013

Loans and borrowings - 2,654,483,285,606 17,479,991,547,123 107,008,525,648 20,241,483,358,377

Convertible loans and bonds

- 368,987,500,000 6,773,164,421,637 - 7,142,151,921,637

Trade payables 1,158,828,828,873 - - - 1,158,828,828,873

Other payables and accrued expenses

1,855,896,260,143 1,541,679,325,380 356,957,789,258 5,610,250,800 3,760,143,625,581

3,014,725,089,016 4,565,150,110,986 24,610,113,758,018 112,618,776,448 32,302,607,734,468

the development of its properties and put these properties into commercial operations.

The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual discounted payments:

The Group evaluates the concentration of liquidity risk is on the repayment of loans and borrowings that will fall due in 2015 and the obligations to the contractors engaged for the development

Past due but not impaired

Total Neither past due nor

impaired

< 30 days 31–90 days 91–120 days > 120 days

31 December 2014

4,408,212,739,624 4,258,078,226,982 2,664,162,703 36,094,745,316 25,868,497,758 85,507,106,865

31 December 2013

6,308,414,525,888 6,145,646,830,179 6,695,247,052 15,175,299,153 6,719,207,643 134,177,941,861

of its real estate projects. The Group is evaluating alternative financing sources to ensure that these obligations will be met.


In 2015, vIngrOup Is determIned tO achIeve a BreakthrOugh year wIth strOng grOwth In aLL sIx cOre BusInesses: prOperty, hOspItaLIty and entertaInment, retaIL, heaLthcare, educatIOn, and agrIcuLture – a new sectOr wIth a LOt Of pOtentIaL and sOcIaL sIgnIfIcance.



42. Financial assets and financial liabilities

Set out below is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments that are carried in the consolidated financial statements.

Carrying amount Fair value

31 December 2014 31 December 2013 31 December 2014 31 December 2013

Cost Provision Cost Provision

Financial assets

Listed and unlisted shares 1,921,362,857,445 (34,336,416,600) 1,540,194,074,888 (10,359,336,000) 1,887,026,440,845 1,529,834,738,888

Trade receivables 833,001,466,347 (21,083,486,835) 906,583,310,596 (16,078,974,616) 811,917,979,512 890,504,335,980

Other receivables 526,001,983,465 (18,765,801,355) 1,445,143,029,590 (14,368,255,762) 507,236,182,110 1,430,774,773,828

Other current financial assets 6,139,634,843,168 (45,908,601,100) 6,375,856,295,070 (44,625,036,442) 6,093,726,242,068 6,331,231,258,628

Other non-current financial assets 2,106,068,166,896 - 1,181,532,495,236 - 2,106,068,166,896 1,181,532,495,236

Cash and cash equivalents 7,607,513,719,673 - 7,534,048,703,295 - 7,607,513,719,673 7,534,048,703,295

Total 19,133,583,036,994 (120,094,305,890) 18,983,357,908,675 (85,431,602,820) 19,013,488,731,104 18,897,926,305,855

Currency: VND

Currency: VND

Currency: VND

Cost Fair value

31 December 2014 31 December 2013 31 December 2014 31 December 2013

Financial liabilities

Loans and borrowings 29,420,113,772,819 20,241,483,358,377 29,420,113,772,819 20,241,483,358,377

Convertible bonds/loans 3,915,900,000,000 7,142,151,921,637 3,915,900,000,000 7,142,151,921,637

Trade payables 1,628,746,222,883 1,158,828,828,873 1,628,746,222,883 1,158,828,828,873

Other current liabilities 5,482,391,632,947 3,397,575,585,523 5,482,391,632,947 3,397,575,585,523

Other non-current liabilities 288,350,549,784 362,568,040,058 288,350,549,784 362,568,040,058

Total 40,735,502,178,433 32,302,607,734,468 40,735,502,178,433 32,302,607,734,468

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following method and assumption were used to estimate the fair values:

• Cash and short-term deposits, trade and other receivables, trade payables and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

• Fair value of quoted securities and debt instruments is based on market value at the reporting date.

• For financial instruments and other investments whose fair value cannot be reliably determined due to the absence of an active market for these instruments, the fair value is assumed to be the carrying value of these instruments.

• For loans/borrowings from banks and other financial liabilities whose fair value cannot be reliably determined due to the absence of an active market for these instruments, the fair value is assumed to be the carrying value of these instruments.

43. Commitments and contingencies

Commitments relating to investing activities

The Company’s capital contribution commitment

Actual contributed

capital

Committed un-contributed

capital

Name of investee Investee’s chartered capital

Amount % Amount Amount

Vien Dong Pearl LLC 1,153,850,000,000 519,232,500,000 45 6,000,000,000 513,232,500,000

1,153,850,000,000 519,232,500,000 6,000,000,000 513,232,500,000

Capital expenditure commitments relating to on-going real estate projects

Hanoi South JSC, a subsidiary, has entered into a number of contracts relating to the development of the Vinhomes Times City project at No. 458, Minh Khai street, Hai Ba Trung district, Hanoi and at No. 25, Lane 13, Linh Nam street, Hoang Mai district, Hanoi. The outstanding commitment on these contracts amounted to approximately VND934 billion as at 31 December 2014.

Royal City JSC, a subsidiary, has entered into a number of contracts relating to the development of the Vinhomes Royal City project at 72A Nguyen Trai street, Thuong Dinh Ward, Thanh Xuan district, Hanoi. The outstanding commitment on these contracts amounted to approximately VND369 billion as at 31 December 2014.

Vincom Construction LLC, a subsidiary, has entered into a number of contracts relating to the development of the Vinhomes Nguyen Chi Thanh project at 56 Nguyen Chi Thanh, Dong Da, Hanoi. The outstanding commitment on these contracts amounted to approximately VND159 billion as at 31 December 2014.

Vinpearl LLC, a subsidiary, has entered into the in-principle agreement with Da Nang People Committee in implementing Lang Van project in Hoa Hiep Bac Ward, Lien Chieu District, Hanoi. Accordingly, Vinpearl LLC has commitment to pay VND785 billion for the project’s land use fee.

Hong Ngan JSC, a subsidiary, has entered into the BT agreement with Hanoi People Committee in implementing Eco-Lake project in Cau Giay District, Hanoi. Accordingly, Hong Ngan JSC has




commitment to pay VND815 billion for the BT agreement.

Viettronics Land JSC, a subsidiary, has entered into a number of contracts relating to the development of the Vinhomes Nguyen Chi Thanh project at 56 Nguyen Chi Thanh street, Dong Da district, Hanoi. The outstanding commitment on these contracts amounted to approximately VND557 billion in which commitments related to land use right is VND398 billion as at 31 December 2014.

Tan Lien Phat JSC, a subsidiary, has entered into a number of contracts relating to the development of the Vinhomes Central Park project at No. 722 Dien Bien Phu, ward 22, Binh Thanh district, Hochiminh city. The outstanding commitment on these contracts amounted to approximately VND3,585 billion in which commitments related to land use right is VND3,400 billion as at 31 December 2014.

Vinpearl Phu Quoc LLC, a subsidiary, has entered into a number of contracts relating to the development of the Vinpearl Phu Quoc project at Bai Dai Area, Ganh Dau Commune, Phu Quoc District, Kien Giang province. The outstanding commitment on these contracts amounted to approximately VND126 billion as at 31 December 2014.

As at 31 December 2014, the Group has commitments, which amounted to approximately VND1,136 billion, mainly relating to contracts with contractors for the development of other real estate projects, in which the commitment for land rental fee is VND12 billion.

Commitment under operating leases where the Group is a lessor

The Group, as lessor, leases office, retail and mixed use spaces under operating lease agreements. The minimum lease payments under these agreements at 31 December 2014 are as follow:

31 December 2014 31 December 2013

Due within one year 1,213,400,118,896 1,694,194,857,642

Due in two to five years 1,930,482,028,651 3,163,831,042,880

Due in more than five years

1,360,077,632,919 1,513,388,271,708

TOTAL 4,503,959,780,466 6,371,414,172,230

31 December 2014 31 December 2013

Due within one year 351,658,622,267 16,840,834,532

Due in two to five years 655,215,574,220 200,546,014,905

Due in more than five years

3,797,111,323,359 1,787,459,871,017

TOTAL 4,803,985,519,846 2,004,846,720,454

Currency: VND

Currency: VND

The Group, as lessor, have leased schools in accordance with the co-operation agreement in exploiting school part of Vinhomes Riverside and Royal City project.

The Group, as lessor, have leased schools in accordance with the co-operation agreement in exploiting school part of Vinhomes

Riverside and Royal City project. The co-operation agreement with Thien Huong Investment JSC (“Thien Huong”) dated February 2012 said that the Group is entitled to the share of revenue from Thien Huong which is equal to 15% of revenue (VAT payable included) and this ratio may change. The duration of the co-operation agreement is from February 2012 to August 2043.

Commitment under operating leases where the Group is a lessee

The Group, as a lessee, entered into certain land rental agreements with duration of 50 years. The minimum lease payments under these agreements at 31 December 2014 are as follow:

Other commitments

Commitments related to the real estate project at 235 Nguyen Trai, Thanh Xuan, Hanoi

In accordance with the Business Co-operation Contract signed on 4 August 2008 between the Company and corporate counterparties, the Company committed to transfer a deposit of VND105 billion to develop a real estate project at 235 Nguyen Trai street, Thanh Xuan district, Hanoi as well as to support these corporate counterparties with an amount of VND105 billion. These commitments will be converted to capital contribution in Thang Long Real Estate JSC, a company established to develop this real estate project.

Commitments related to the real estate project at 69B Thuy Khue, Tay Ho, Hanoi

In accordance with agreement on compensation signed between the Company and corporate counterparties on 30 July 2010, the Company agreed to compensate VND128 billion for site clearance for the real estate project located at 69B Thuy Khue, Tay Ho, Hanoi. As at 31 December 2014, the remaining committed amount under this agreement is VND86.7 billion.

Commitment for transfer a certain parts of Vincom City Towers

On 31 July 2006, the Company had transferred certain parts of the Vincom City Center to a corporate counterparty. According

to the Transfer Agreement, the Group has committed to transfer the ownership of the following investment properties to this corporate counterparty on 20 July 2052:

(i) The ownership of half of the commercial center (from 1st floor to 6th floor of Vincom City Center (the “Towers”), except for the reception and elevator waiting area of 160m2 on the 1st floor); and

(ii) The ownership of 31.156% of the basement 1 and basement 2 of the towers.

Commitment with Hanoi People’s Committee (“HPC”)

In accordance with Decision No.1853/QD-UBND dated 22 April 2011 issued by the HPC, Sai Dong JSC is obliged to return land lot No. G4-HH16 (with an estimated area of 43,542m2) and land lot No. G4-NT (with an estimated area of 5,293m2) in the Vinhomes Riverside project to the HPC.

Commitment under contracts for interest expenses support to buyers of apartments at Royal City and Times City projects

Royal City JSC and Hanoi South JSC have entered into certain three party agreements with the buyers of the apartments at Royal City, Times City project and certain banks who provide loans to these customers to finance for their apartment purchase. The key terms and conditions of these agreements are as follows:

• The banks will provide loans to the customers to finance for the purchase of the apartments at Royal City and Times City;

• Hanoi South JSC will support the customers by paying on behalf of the customers the interest payable to the bank, at the rate ranging from 0.5% to 4% per annum during a period not exceeding 12 to 24 months from the signing date of loan agreement; and

• In case the customers breach the terms and conditions of the loan agreement signed with the banks, Royal City JSC might be required by the banks to buy back the apartments at a price of at least 80% of the amount of down payments received by Royal City JSC under the apartment sale agreement.

Commitment under Share transfer Contract with a cooperate counterparty

On 31 December 2014, in accordance with Share transfer Contract with a cooperate counterparty, the Company committed to purchase 15,000,000 irrevocable shares which equivalents to 5% charter capital of a company which is the owner of a potential real estate project in Hanoi with total consideration of VND180 billion.

44. Events after the balance sheet date

Vinhomes Real Estate Leasing Limited Liability Company, a subsidiary, was established on 5 January 2015 with a charter

capital of VND6 billion, in which the Group owns 100% equity interest. The principle activities of this subsidiary are real estate leasing & management. This subsidiary’s head office is registered at No. 7, Bang Lang 1 street, Vinhomes Riverside Eco-urban Area, Viet Hung ward, Long Bien district, Hanoi, Vietnam.

Vinhomes Real Estate Management Limited Liability Company, a subsidiary, was established on 5 January 2015 with a charter capital of VND16 billion, in which the Group owns 100% equity interest. The principle activities of this subsidiary are to supply services of real estate management, consultancy, advertisement and brokerage. This subsidiary’s head office is registered at No. 7, Bang Lang 1 street, Vinhomes Riverside Eco-urban Area, Viet Hung ward, Long Bien district, Hanoi, Vietnam.

On 6 January 2015, Vincom Retail JSC, a subsidiary, signed contracts to acquire 90% equity interest of Suoi Hoa Urban Development and Investment Limited Liability Company (“Suoi Hoa LLC”) from individual counterparties. Suoi Hoa LLC was established on 22 January 2014 with a charter capital of VND6 billion. The principle activities of Suoi Hoa LLC are real estate trading, brokerage, consultancy and auction.

VinPro Trading & Services Limited Liability Company, a subsidiary, was established on 9 January 2015 with a charter capital of VND50 billion, in which the Company and Hanoi Southern JSC, an existing subsidiary are founding shareholders with 94% and 6% equity interest, respectively. The principle activities of this subsidiary are to retail computers, software, telecommunication devices and audio-visual devices. This subsidiary’s head office is registered at No. 72, Le Thanh Ton street and No. 45A, Ly Tu Trong street, Ben Nghe ward, district 1, Hochiminh city, Vietnam.

Vincom Thu Duc Limited Liability Company, a subsidiary, was established on 9 January 2015 with a charter capital of VND6 billion, in which Vincom Retail, a subsidiary is the founding member with 100% equity interest. The principle activities of this subsidiary are real estate trading. This subsidiary’s head office is registered at No. 72, Le Thanh Ton, Ben Nghe ward, district 1, Hochiminh city, Vietnam.

VinDS Trading and Service Limited Liability Company, a subsidiary, was established on 30 January 2015 with a charter capital of VND6 billion, in which the Group owns 70% equity interest. The principle activities of this subsidiary are retailing in shopping malls/convenient stores. This subsidiary’s head office is registered at No. 7, Bang Lang 1 street, Vinhomes Riverside Eco-urban Area, Viet Hung ward, Long Bien district, Hanoi, Vietnam.

VME Marketing Limited Liability Company, a subsidiary, was established on 2 February 2015 with a charter capital of VND6 billion, in which the Company and Hanoi Southern JSC, a subsidiary are founding shareholders with 94% and 6% equity interest, respectively. The principle activities of this subsidiary are rendering marketing service. This subsidiary’s head office is registered at No. 7, Bang Lang 1 street, Vinhomes Riverside Eco-urban Area, Viet Hung ward, Long Bien district, Hanoi, Vietnam.

Vinpearl Hotel Management Limited Liability Company, a




subsidiary, was established on 5 February 2015 with a charter capital of VND50 billion, in which Vinpearl JSC, an existing subsidiary are founding shareholders with 100% equity interest. The principle activities of this subsidiary are management consultancy, real estate brokage, auction, tourism support and promotion, short-stay services. This subsidiary’s head office is registered at No. 72, Le Thanh Ton, Ben Nghe ward, district 1, Hochiminh city, Vietnam.

On 6 February 2015, the Company has deposited VND1,000 billion to two individual counterparties pursuant to Deposit

Contract dated 22 January 2014 with the aim of purchasing 94% equity interest (equal to 19,932,933 shares) in a company which is the owner of a potential real estate project in Nha Be district, Hochiminh city, Vietnam.

There are no other events occurring after the balance sheet date that have significant impact or can impact materially to the Group’s operation and consolidated income of the Group after the balance sheet date.

Appendix 1 – The group structure as of 31 december 2014

No. Full name Short name Voting right

(%)

Equity interest

(%)

Registered office’s address

Principal activities

1Hai Phong Land Development and Investment One Member Limited Liability Company

Hai Phong Land LLC 100.00 98.09

No. 5 Le Thanh Tong street, May To ward, Ngo Quyen district, Hai Phong

Investing, developing and trading real estate properties

2Royal City Real Estate Development & Investment JSC

Royal City JSC 98.36 98.36

No. 72A Nguyen Trai street, Thuong Dinh ward, Thanh Xuan district, Hanoi


3Sai Dong Urban Development & Investment JSC

Sai Dong JSC 94.00 94.00 Vinhomes Riverside1


4Hanoi Southern City Development JSC

Hanoi Southern JSC 97.90 95.21

No. 458, Minh Khai street, Vinh Tuy ward, Hai Ba Trung district, Hanoi

Investing, developing and trading real estate propertiesProviding hospital services

5Ho Tay Real Estate Development and Investment Joint Stock Company

Ho Tay Real Estate JSC 70.00 70.00No. 69B Thuy Khue street, Tay Ho district, Hanoi


6 Vinpearl Joint Stock Company2 Vinpearl JSC 100.00 92.86

Hon Tre Island, Vinh Nguyen ward, Nha Trang City, Khanh Hoa province

Investing, developing and trading hospitality services

7Tay Tang Long Real Estate Limited Liability Company

Tay Tang Long LLC 59.00 55.50

No. 72, Le Thanh Ton, Ben Nghe ward, district 1, Hochiminh City


8 Hon Mot Tourism JSC Hon Mot JSC 83.63 77.66



9Vinpearl Da Nang One Member Limited Liability Company

Vinpearl Da Nang LLC 100.00 92.86

Hoang Sa road, Hoa Hai ward, Ngu Hanh Son district, Da Nang city


10Vinpearl Hoi An One Member Limited Liability Company

Vinpearl Hoi An LLC 100.00 92.86Phuoc Hai Block, Cua Dai ward, Hoi An city, Quang Nam province


11VinGS General Services Trading One Member Limited Liability Company

VinGS LLC 100.00 100.00 Vinhomes Riverside1

Providing beauty care, food and beverage services

12Tay Ho View Hotel and Tourism Limited Liabilities Company

Ho Tay View LLC 70.00 65.00No. 58 Tay Ho Street, Quang An ward, Tay Ho district, Hanoi


13Future Property Invest Limited Company

FPI LLC 100.00 92.86

Truong Sa Road, Hoa Hai ward, Ngu Hanh Son district, Da Nang city


14 Vincom Retail Joint Stock Company Vincom Retail JSC 99.99 98.09 Vinhomes Riverside1


15Vinpearl Bai Dai Limited Liability Company

Vinpearl Bai Dai LLC 90.00 83.57

No. 17A Bach Dang Street, Phuoc Tien ward, Nha Trang city, Khanh Hoa province

Providing hospitality services



16 March 2015






(%)

Equity interest

(%)



16Cam Ranh Investment Limited Liability Company

Cam Ranh LLC 90.00 83.57

No. 16, Mac Dinh Chi, Phuoc Tien ward, Nha Trang city, Khanh Hoa province


17Hon Tre Investment and Development Limited Liability Company

Hon Tre LLC 90.00 83.57

No. 42/2 Dong Nai,Phuoc Hai ward, Nha Trang city, Khanh Hoa province


18Times Trading Investment and Development One Member Limited Liability Company

Times Trading LLC 100.00 100.00

No. 72, Le Thanh Ton, Ben Nghe ward, district 1, Hochiminh City


19Vinmec International General Hospital Joint Stock Company

Vinmec JSC 100.00 95.25

No. 458, Minh Khai street, Vinh Tuy ward, Hai Ba Trung district, Hanoi

Health care, medical and related services

20Vincom Center B Ho Chi Minh City One Member Limited Liability Company

Vincom Center B HCMC LLC 100.00 98.09

No. 72, Le Thanh Ton and 45A Ly Tu Trong, Ben Nghe ward, district 1, Hochiminh City


21Vincom Center Ba Trieu Limited Liability Company

Vincom Center Ba Trieu LLC 100.00 98.09

No. 191 Ba Trieu street, Le Dai Hanh ward, Hai Ba Trung district, Hanoi


22Vincom Center Long Bien One Member Limited Liability Company

Vincom Center Long Bien LLC 100.00 98.09 Vinhomes Riverside1


23Vinschool One Member Limited Liability Company

Vinschool LLC 100.00 100.00 Vinhomes Riverside1

Education services, kindergarten service at the early stage.

24 Xavinco Land JSC Xavinco JSC 96.44 96.42

No. 191, Ba Trieu street, Le Dai Hanh ward, Hai Ba Trung district, Hanoi


25Vinhomes 1 Real Estate Trading Limited Liability Company

Vinhomes 1 LLC 100.00 100.00 Vinhomes Riverside1

Trading real estate properties and rendering general supporting services

26Vinhomes 2 Real Estate Trading Limited Liability Company

Vinhomes 2 LLC 94.00 94.00 Vinhomes Riverside1 Trading real estate properties

27Vincom Mega Mall Royal City One Member Limited Liability Company

VMM Royal City LLC 100.00 98.09

No. 72A, Nguyen Trai street, Thuong Dinh ward, Thanh Xuan district, Hanoi

Trading real estate properties

28ISADO Business Cooperation and Development Limited Liability Company

ISADO LLC 70.00 65.80 Vinhomes Riverside1 Trading real estate properties

29Vinpearl Quy Nhon Joint Stock Company

Vinpearl Quy Nhon JSC 98.00 91.00

Hai Giang Village, Nhon Hai Commune, Quy Nhon city, Binh Dinh province

Ecotourism and other services

30BFF Commercial trading investment LLC3 BFF LLC 86.96 86.96

No. 72, Le Thanh Ton Street, Ben Nghe ward, District 1, HCM city

Sale of goods in retail outlets

31Vincom Security Services Limited Liability Company

Vincom Security LLC 100.00 100.00 Vinhomes Riverside1 Security services


(%)

Equity interest

(%)



32

Ha Thanh Real Estate Investment And Urban Infrastructure Development Limited Liability Company

Ha Thanh LLC 100.00 100.00 Vinhomes Riverside1

Transportation roads and railway constructions

33Viettronics Land Joint Stock Company

Viettronics Land JSC 99.97 98.08

No. 191, Ba Trieu street, Le Dai Hanh ward, Hai Ba Trung district, Hanoi


34Vinpearl Phu Quoc One Member Limited Liability Company

Vinpearl Phu Quoc LLC 100.00 51.07

Bai Dai Area, Ganh Dau Commune, Phu Quoc District, Kien Giang province

Short – stay services

35Vincom Office Limited Liability Company

Vincom Office LLC 100.00 100.00 Vinhomes Riverside1 Trading real estate properties

36Vincom Center Ha Long Limited Liability Company

Vincom Center Ha Long LLC 100.00 98.09

Cot Dong Ho Area, Bach Dang ward, Ha Long City, Quang Ninh


37Vincom Mega Mall Times City Limited Liability Company

VMM Times City LLC 100.00 98.09

No 458, Minh Khai street, Vinh Tuy ward,Hai Ba Trung district, Hanoi


38Vinlandscape Design Construction And Landscape Management Limited Liability Company

Vinlandscape LLC 100.00 100.00 Vinhomes Riverside1 Landscape maintenance services

39Vinpearlland Limited Liability Company

Vipearlland LLC 100.00 100.00


Amusement park and theme park entertainment services

40Vinpearl Nha Trang Limited Liability Company

Vinpearl Nha Trang LLC 100.00 92.86


Providing short – stay services

41Vinpearl Ha Long Limited Liability Company

Vinpearl Ha Long LLC 100.00 92.86Reu Island, Bai Chay ward, Ha Long City, Quang Ninh province


42Tan Lien Phat Construction Investment Joint stock Company

Tan Lien Phat JSC 75.00 74.38


Trading real estate properties and freehold and leasehold right for land

43Vincom Construction Limited Liability Company

Vincom Construction LLC 100.00 100.00 Vinhomes Riverside1

Residential and civil constructionsArchitecture activities and technical consultancyTrading real estate properties

44 Vinecom Limited Liability Company Vinecom LLC 70.00 70.00

Tower 2, Times City urban area, No. 458 Minh Khai, Hai Ba Trung ward, Hanoi

Retail sale via phone and internetIT activities and related services

45Vincom 2 Construction Limited Liability Company

Vincom 2 Construction LLC 100.00 99.71 Vinhomes Riverside1

Residential and civil constructionsArchitecture activities and technical consultancyTrading real estate properties





(%)

Equity interest

(%)



46 Vinfashion Joint Stock Company Vinfashion JSC 70.00 70.00 Vinhomes Riverside1

Manufacturing clothesFabrics wholesaler, readymade garment and shoes

47Golf resort and entertainment construction Limited Liability Company

Golf resort LLC 100.00 99.71 Vinhomes Riverside1

Residential and civil constructionsArchitecture activities and technical consultancy

48Vinmart Construction Limited Liability Company

Vinmart Construction LLC 100.00 99.71 Vinhomes Riverside1

Residential and civil constructionsArchitecture activities and technical consultancy

49VinMart Supermarket Joint Stock Company

VinMart Supermarket JSC 70.00 70.00



50Metropolis Limited Liability Company

Metropolis LLC 100.00 98.09



51Riverview Complex DaNang Limited Liability Company

Reverview Da Nang LLC 97.11 95.26

Ngo Quyen street, An Bac Hai ward, Son Tra district, Da nang city


52Phu Quoc tourism Development and Investment Joint Stock Company

Phu Quoc Tourism JSC 55.00 51.07

Bai Dai Area, Ganh Dau Commune, Phu Quoc District, Kien Giang province


53Hong Ngan Real Estate Joint Stock Company

Hong Ngan JSC 99.00 93.06

No. 31, Ngo Gieng, Dong Cac street, O Cho Dua, Dong Da, Hanoi


54Khanh Gia Investment Trading Services Joint Stock Company

Khanh Gia JSC 94.00 94.00

No. 216, Vo Van Ngan Street, Binh Tho ward, Thu Duc district, Hochiminh City

Developing and leasing space in commercial centers

55Ocean Mart Express Joint Stock Company

Ocean Mart Express JSC 80.00 56.00

No. 19, Nguyen Trai Road, Khuong Trung ward, Thanh Xuan district, Hanoi


(1) Full registered office address: No. 7, Bang Lang 1 street, Vinhomes Reverside Eco-urban Area, Viet Hung ward, Long Bien district, Hanoi.

(2) Previously known as Vinpearl One Member Limited Liability Company

(3) Previously known as VinGT Global Investment Trading and Services Limited Liability Company

In 2014, the Group has completed the dissolution of the following subsidiaries in accordance with the Board’s decisions issued on 25 April 2013:

• Bai Dai Tourism and Investment Company Joint Stock Company;• Cam Ranh Tourism and Trading Joint Stock Company; and• Hon Tre Tourism and Service Joint Stock Company.


we BeLIeve that thrOugh Our carefuLLy chOsen strategIes, vIngrOup wILL achIeve Our gOaLs In 2015 and the years tO cOme, maIntaInIng Our market-LeadIng pOsItIOn as One Of the premIer cOmpanIes In the regIOn, whILe prOtectIng and enhancIng the LOng-term Interests Of sharehOLders and makIng even greater cOntrIButIOns tO sOcIety.


Summary IFRS consolidated financial statements Consolidated income statement/ Consolidated statement of other comprehensive income

Consolidated income statementfor the year ended 31 December 2014

Consolidated statement of other comprehensive income

Consolidated income statement (continued)for the year ended 31 December 2014

Notes Current year Previous year

Continuing operations

Rental income 2,081,148,806,516 1,797,773,534,810

Sale of inventory properties 21,737,531,428,617 14,657,846,833,066

Rendering of hospitality and related services 2,113,985,422,722 1,598,573,038,093

Rendering of health care and related services 656,565,516,769 286,917,398,734

Rendering of education and related services 229,548,890,247 3,837,671,011

Rendering of retail services 421,051,494,099 1,639,469,513

Other revenue 401,168,164,320 30,113,372,615

Revenue 27,640,999,723,290 18,376,701,317,842

Cost of sales (16,814,230,632,632) (11,116,976,385,050)

Gross profit 10,826,769,090,658 7,259,724,932,792

Valuation gain/(loss) from completed investment property 16 259,311,520,016 2,037,512,148,200

Valuation gain on investment property under construction 17 1,174,571,478,490 405,215,622,825

Other operating income 11.1 385,932,246,890 385,371,606,413

Selling and distribution costs (953,173,773,051) (266,576,899,386)

Administrative expenses (1,622,752,319,824) (877,338,303,488)

Other operating expenses 11.2 (46,622,671,289) (91,150,123,812)

Operating profit 10,024,035,571,890 8,852,758,983,544

Finance income 11.3 1,170,043,347,806 806,935,622,676

Finance costs 11.4 (4,156,307,002,024) (2,021,038,822,912)

Net gain/(loss) on financial liability at fair value through profit or loss 35.2 102,776,671,940 (280,287,425,521)

Share of (loss)/profit of associates 8 (12,723,839,340) 53,304,805,480

Profit before tax from continuing operations 7,127,824,750,272 7,411,673,163,267

Income tax expense 12 (1,740,891,441,047) (1,299,223,897,379)

Profit for the year from continuing operations

5,386,933,309,225 6,112,449,265,888

Discontinued operation

Profit after tax for the year from discontinued operation

29 - -

Profit for the year 5,386,933,309,225 6,112,449,265,888

Attributable to:

Equity holders of the parent 4,759,962,662,932 5,697,867,501,585

Non-controlling interests 626,970,646,293 414,581,764,303

Notes Current year Previous year

Earnings per share: 13

Basic, profit for the year attributable to equity holders of the parent

3,688 4,463

Diluted, profit for the year attributable to equity holders of the parent

3,688 4,463

Earnings per share for continuing operations: 13

Basic, profit from continuing operations attributable to equity holders of the parent

3,688 4,463

Diluted, profit from continuing operations attributable to equity holders of the parent

3,688 4,463

Profit for the year 5,386,933,309,225 6,112,449,265,888

Other comprehensive income/ (loss) for the year, net of tax - -

Total comprehensive income for the year, net of tax 5,386,933,309,225 6,112,449,265,888

Attributable to:

Equity holders of the parent 4,759,962,662,932 5,697,867,501,585

Non-controlling interests 626,970,646,293 414,581,764,303

5,386,933,309,225 6,112,449,265,888



Summary IFRS consolidated financial statements Consolidated statement of financial position

Consolidated statement of financial position as at 31 December 2014

Consolidated statement of financial position (continued)as at 31 December 2014

Notes Ending balance Begining balance

ASSETS

NON-CURRENT ASSETS

Property and equipment 14 11,548,606,990,518 5,965,140,394,995

Intangible assets 15 1,651,620,986,606 737,699,004,761

Completed investment property 16 24,304,938,854,727 22,537,114,631,445

Investment property under construction

17 5,171,274,324,760 1,429,622,554,779

Construction in progress 19 7,469,813,212,015 4,737,377,119,889

Investment in associates 8 927,622,881,676 1,826,147,782,589

Deferred tax assets 12.2 322,441,863,345 83,961,738,754

Long-term prepayments 22 910,685,302,139 361,689,518,290

Other non-current assets 21 8,713,603,748,186 2,871,561,785,694

Total non-current assets 61,020,608,163,972 40,550,314,531,196

CURRENT ASSETS

Inventories 24 19,130,609,723,994 24,146,597,202,075

Trade receivables 25 615,510,006,047 857,717,852,346

Advances to suppliers 1,459,215,551,022 1,067,203,605,764

Financial assets at fair value through profit or loss

23 74,444,996,900 25,009,776,000

Loans to and receivables from related parties

41 180,050,829,064 424,511,439,552

Short-term prepayment and other receivables

26 2,235,390,885,310 5,615,222,407,651

Short-term investments 27 6,077,802,744,475 5,495,405,882,770

Cash and cash equivalents 28 7,607,402,590,552 7,534,048,703,295

Total current assets 37,380,427,327,364 45,165,716,869,453

Assets classified as held for sale 10 173,475,990,356 -

TOTAL ASSETS 98,574,511,481,692 85,716,031,400,649

EQUITY AND LIABILITIES

EQUITY

Issued capital 37.1 14,545,550,980,000 9,296,036,790,000

Share premium 6,184,733,954,154 2,991,318,776,167

Treasury shares 37.2 (3,707,383,275,263) (4,985,884,215,349)

Other reserves 22,845,114,930 17,845,114,930

Retained earnings 9,180,738,208,390 12,021,869,785,338

Equity attributable to equity holders of the parent

26,226,484,982,211 19,341,186,251,086

Non-controlling interests 6,286,346,261,395 3,972,618,723,604

Total equity 32,512,831,243,606 23,313,804,974,690

Notes Ending balance Begining balance

NON-CURRENT LIABILITIES

Interest-bearing loans and borrowings 36 31,179,434,165,219 22,371,382,981,205

Long-term customers’ deposits 32 216,875,262,722 260,414,760,285

Long-term deferred revenue and advance from customers

34 6,162,446,924,111 5,762,805,429,665

Deferred tax liabilities 12.2 3,048,012,813,066 2,644,690,782,102

Other long-term liabilities 37,924,129,355 976,054,354

40,644,693,294,473 31,040,270,007,611

CURRENT LIABILITIES

Short-term loans and borrowings 35.1 1,258,304,056,555 2,977,135,851,043

Financial liability at fair value through profit or loss

35.2 683,358,563,520 1,460,790,946,925

Trade payables 1,628,746,222,883 1,158,828,828,875

Deposits and down payment from customers

33 14,714,504,156,437 16,288,155,299,073

Borrowing from and payables to related parties

41 17,228,800,466 43,826,637,724

Short-term deferred revenue 34 550,965,893,268 339,435,312,812

Accruals 30 3,995,743,374,512 6,222,740,600,068

Corporate income tax payable 12.1 503,949,795,404 896,557,840,180

Other current liabilities 31 2,064,176,770,898 1,974,485,101,648

25,416,977,633,943 31,361,956,418,348

Total liabilities 66,061,670,928,416 62,402,226,425,959

Liabilities directly associated with assets classified as held for sale 10 9,309,670 -

TOTAL EQUITY AND LIABILITIES 98,574,511,481,692 85,716,031,400,649



Summary IFRS consolidated financial statements Consolidated statement of cash flows

Consolidated statements of cash flowsfor the year ended 31 December 2014

Consolidated statements of cash flows (continued)for the year ended 31 December 2014

Note Current year Previous year

OPERATING ACTIVITIES

Profit before tax from continuing operations 7,127,824,750,272 7,411,673,163,267

Profit before tax from discontinued operations 29 - -

Profit before tax 7,127,824,750,272 7,411,673,163,267

Adjustments to reconcile profit before tax to net cash flows

Depreciation and amortisation 14,15 509,387,558,854 342,282,972,705

Provision 71,609,018,302 56,933,739,373

Foreign exchange loss/(gain) 178,192,392,574 77,182,459,436

(Gain)/loss on disposal of property and equipment

(3,104,218,385) 3,013,515,056

Profit from disposal of investments in subsidiaries and other entities

(137,667,866,676) (211,585,440,869)

Decrease/(increase) in fair value of financial assets at fair value through profit or loss

23,977,080,600 (3,589,920,000)

(Gain)/loss on financial liabilities at fair value through profit or loss

35.2 (102,776,671,940) 280,287,425,521

Changes in amortized cost of loans and receivables other than nominal interest

(19,812,218,325) (106,064,104)

Changes in amortized cost of payables other than nominal interest

1,013,418,866,496 69,232,228,159

Interest and dividend income (1,142,105,330,177) (756,474,309,084)

Interest expense 2,771,297,326,323 1,459,922,785,661

Share of profit/(loss) of associates 8 12,723,839,340 (53,304,805,480)

Valuation gains on investment property and investment property under construction

17,18 (1,433,882,998,506) (2,442,727,771,025)

Working capital adjustments:

(Increase)/decrease in trade and other receivables

(215,818,430,208) 1,506,465,991,329

Decrease/(increase) in inventories 8,717,442,970,739 (972,723,339,123)

(Decrease)/increase in trade and other payables

(324,285,341,587) 3,811,823,118,488

(Increase)/decrease in prepayments (848,564,488,639) 184,758,895,784

Other cash (outflows)/inflows from operating activities

(19,749,436,780) 6,453,281,065

Income tax paid 12.1 (1,910,568,513,664) (1,803,518,979,544)

Net cash flows from operating activities 14,267,538,288,613 8,965,998,946,615

INVESTING ACTIVITIES

Proceeds from sale of property and equipment 23,987,643,862 39,220,197,524

Purchase of property and equipment (11,348,610,949,497) (5,721,094,644,976)

Payment for equity investment in other entities (1,254,685,000,000) (2,766,589,691,339)

Advance for business co-operation contracts (5,800,000,000,000) (266,500,000,000)

Redemption of advance for business co-operation contracts 266,500,000,000 -

Note Current year Previous year

Deposits for investment in potential real estate projects (700,000,000,000) (1,900,000,000,000)

Redemption of deposit for potential real estate projects 800,000,000,000 -

Acquisition of new subsidiaries, net of cash balance at subsidiaries at acquisition date (2,359,415,821,372) (2,866,077,367,641)

Short-term deposits for interest gain (3,509,011,030,716) (4,541,578,166,950)

Redemption of short-term deposit for interest gain 2,232,617,805,005 4,049,451,412,100

Disbursement of loans (885,106,000,000) (3,528,200,635,090)

Collection of loans 1,711,688,675,151 730,888,896,482

Proceeds from disposals of equity investments in subsidiaries, net of cash disposed

167,000,000,000 9,697,723,681,183

Proceeds from disposals of equity investments in other entities 465,000,000,000 760,299,910,908

Proceeds from deposit of counterparties for acquiring investments 199,312,091,675 -

Redemption of deposit to counterparties for acquiring investments 232,200,000,000 -

Interest and dividend received 1,017,729,795,067 539,692,018,943

Net cash flows used in investing activities

(18,740,792,790,825) (5,772,764,388,856)

FINANCING ACTIVITIES

Payment for acquisition of treasury shares - (2,953,978,284,083)

Proceeds from sale of treasury shares 1,411,009,772,856 -

Capital contribution from non-controlling interest 2,948,518,325,757 3,256,960,309,647

Payment for acquisition of additional interest in existing subsidiaries (3,025,235,910,441) (251,000,000,000)

Proceeds from partial disposals of equity investments 187,099,660,000 -

Proceeds from borrowings 17,264,986,730,202 16,614,545,541,480

Repayment of borrowings (8,682,400,989,547) (11,103,071,677,430)

Interest paid (3,191,276,794,957) (2,550,652,028,899)

Dividend paid to non-controlling interests (521,509,281,485) -

Dividends paid to equity holders of the parent (1,844,966,743,620) (288,850,999,997)

Net cash flows from financing activities 4,546,224,768,765 2,723,952,860,718

Net increase in cash and cash equivalents 72,970,266,553 5,917,187,418,477

Cash and cash equivalents at 1 January 7,534,048,703,295 1,616,855,174,935

Impact of exchange rate fluctuation 383,620,704 6,109,883

Cash and cash equivalents at 31 December

28 7,607,402,590,552 7,534,048,703,295



Reconciliation between VAS and IFRS consolidated income statements Báo cáo lưu chuyển tiền tệ hợp nhất

No Items Amount

I Profit after tax of VAS 3,776,045,741,483

II Adjustment for IFRS

1Valuation gain on investment properties, investment properties under construction at fair value 1,433,882,998,504

2 Net loss on financial liability at fair value through profit or loss 102,776,671,940

3Finance income/expenses arising from measurement of loans/customers' deposits/AR at amortised cost (3,409,185,808)

4 Adjustment for gain/loss from investment activities 215,647,731,524

5 Finance expenses arising from measurement of convertible bond at amortised cost (830,841,799,057)

6 Adjustment for profit shared from associates (3,953,180,089)

7 Deferred tax expenses

7.1 Deferred tax expenses/income incurred from measurement of investment properties, investment properties under constructionat fair value and adjustment for tax rate

(371,961,073,384)

7.2 Other deferred tax income incurred this year 264,704,529,351

8 Other adjustments

8.1 Adjustments for prepayments which should be expenses under IFRS (175,175,659,746)

8.2 Revert depreciation of investment properties and amortisation of prepaid land rental fees as being measured at fair value

403,574,610,174

8.3 Reversal of goodwill amotisaton expenses 649,042,000,804

8.4 Other expenses adjustment (73,400,076,470)

III Profit after tax of IFRS 5,386,933,309,225

the cOnsOLIdated fInancIaL statements gIve a true and faIr vIew, In aLL materIaL respects, Of the cOnsOLIdated fInancIaL pOsItIOn Of the grOup as at 31 decemBer 2014, and Of the cOnsOLIdated resuLts Of Its OperatIOns and Its cOnsOLIdated cash fLOws fOr the year then ended In accOrdance wIth vIetnamese accOuntIng standards, vIetnamese enterprIse accOuntIng system and the statutOry requIrements reLevant tO preparatIOn and presentatIOn Of cOnsOLIdated fInancIaL statements.

Currency: VND

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