Monthly ReportMonthly ReportApril 2010April 2010

2010.05.07

Investment, Finance and Accounting

Cathay Life (VN)

Contents

This month activities1

Innovation & Incentive Program2

Vietnamese Market News3

Next month plan4

1.This month activities

Investment USD / VND time deposit re-investment to match cash flow needs in the future. Following up international and domestic bond market Seek opportunity to invest government bond

Accounting & FinanceInternal and External Accounting report (P&L, Tax reports.Q1 Auditing report …)Tax registration for D.Nai branchLaunching new function system about Insurance payment by ID and bank accountCompleted testing profit center

reports ,the first draft of the allocation report has been released out Innovation and Incentive Program

Innovation and Incentive Program

Innovation and Incentive Program

ObjectiveObjective

Rule and EligibilityRule and Eligibility

Process and TemplatesProcess and Templates

Contents

Objectives

Encourage employees share thoughts / ideas on business issues to improve current situation and cost saving.

Company success

Build a positive impact on “go-go” innovation and employee morale in a professional working environment.

COSTSAVING

QUALITY OF SERVIES

Innovation Incentive

Rule and Eligibility

ParticipantParticipantParticipantParticipantAll employee of Cathay Life Vietnam, either individuals or team.

CommitteeCommitteeCommitteeCommitteeEVP : LeaderDirector levels : AssistantAccounting : Coordinator

AwardsAwards AwardsAwards 3% of Net Savings, up to a maximum of VND 20,000,000.

Innovation Incentive

Templates

FORM BPROJECT

APPRAISAL REPORT

(PAR)

FORM CPROJECT

EVALUATION REPORT

(PER)

FORM APROPOSAL FOR

INNOVATION

Innovation Incentive

Process

1

Idea captureindicates themain scope ofinnovation andits benefit.

2

Initial reviewCommittee isdoing an initialAssessmentthe potentialfeasibilities.

3

PAR issuedindicates howideas are putin practice relating to thetasks, analysisresults andcomments.

Innovation Incentive

Form A Form B

Process (Cont.)

4

Key reviewConsiders thefactors:resources,finance,technicalissues… tomake decision

5

BOD review.Upon BODapproval, aProjectManager (PM)will beassigned inimplementing.

6

ImplementBrings thePAR into thepractice. PMhas to monitorany difficultiesor obstaclescaused.

Innovation Incentive

Process (Cont.)

7

Flash award

8

Appraisal Evaluate thesuccess ofproject via aPER and alsopropose theawards.

9

RecognitionIncentive toemployees has contributedthe developedinnovationidea.

Innovation Incentive

Form C

April CPI increased slightly by 0.14% m/m and y/y went down a little bit to 9.23% (9.46 in March).

Vietnam CPI

% Y/y M/M AcrualCPI Apr 10 9.23% 0.14% 4.27%

I Food & foodstuff 39.93% 9.56% -0.63% 5.68%

- Food 8.18% 10.06% -1.91% 4.48%

- Foodstuff 24.35% 9.47% -0.53% 6.18%

- Eating out 7.40% 10.38% 0.46% 5.35%

II Beverage, cigarette 4.03% 8.02% 0.37% 3.98%

III Clothing 7.28% 6.93% 0.35% 3.16%

Iv House and material 10.01% 17.33% 2.51% 7.50%

V House and appliances 8.65% 5.38% 0.45% 2.37%

VI Medical product 5.61% 3.25% 0.32% 1.36%

VII Transportation 8.87% 20.11% 0.12% 3.05%

VIIITelecomunication 2.73% -4.09% -0.06% -11.60%

IX Education 5.72% 6.47% 0.12% 0.69%

X Entertaiment 3.83% 3.62% 0.25% 2.32%

XI Others 3.34% 12.43% 0.33% 5.75%

CPI break down

4. Market News

Export: USD 20.16bio (TYD), 8.9% y/y.

Import: USD 24.81bio (YTD), 36% y/y.

Trade deficit: 4.65bio (YTD)

Vietnam Imports and Exports (%)

Trade deficit ($ million)

Market News

International Trade

The first 4 mths of 2010 showed an increase compared with the first 4 mths of last year.

Indicator Apr 10(VND) YTD (YOY)

Industrial output 236.7trio 13.5%

- State sector 53.84 trio 10.3%

- Non state sector 84.99 trio 12.7%

- FDI sector 97.87 trio 16.1%

Vietnam Industrial Production YTD y/y

-10

-5

0

5

10

15

20

25

30

35

Jan-08

Mar-08

May-08

Jul-08

Sep-08

Nov-08

Jan-09

Mar-09

May-09

Jul-09

Sep-09

Nov-09

Jan-10

Mar-10

Unit (YTD) YTD YoYCoal 14,240 101.0%Crude Oil 4,740 81.2%Cement 17,231 114.0%Steel 1,458 91.6%

Market News

Industrial Output

USD/VND rate

17000

17500

18000

18500

19000

19500

6/4/2009 8/4/2009 10/4/2009 12/4/2009 2/4/2010 4/4/2010

3.4%17,491-18544

5.4%17,034-17961

Vietnam Dong has been appreciated compared with US dollar recently.

-Official rate : 18930- 19000VND/$

-Unofficial rate :18940 -18990VND/$

ForeignForeign Exchange

Market News

4.Next month plan

1 2 3 41) Follow up Auto pay project (continue)

2) Continuously follow-up the budget performance system and support all departments in budget controlling.

3) Audited by parent company

4) Keep following the progress of fund management company with ICC

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

6) Keep on cash managing to match cash flow needs in the future.

7) Following up international and domestic bond market, including economic indicators and bond trading activities

Accounting & Finance

THE END