VIETNAM MONTHLY REPORTPerformance Data as at 31 May 2017

The VN Index returned to its winnVN Index up 3 3% on

MARKET

The VN Index returned to its winnbefore consolidating a bit to close$219m, up 23.6% mom and the senet buyers for a fifth month running$295.6m.

After several years of preparatiointroduction of a futures market inki k ff f t di it i t d t

VN Index up 3.3% on near record volume

Futures trading is finally set to kick off

kick-off of trading, it is expected twill be limited to futures on the Vthough we expect the products onin the development of Vietnam’s fin

The most talked about event of MViglacera (VGC), a leading playershares (~$60m) was a great way

Deal of the month: Viglacera auction 2.6x over-subscribed ( ) g y

Construction, which would reducefinance VGC’s ambitious expansioand 1Q17, in which VGC posted Nhighly anticipated. In the end, it w31.5% higher than the starting pric

Over the coming months, we belieprivate deals are in the works: In a

Privatisations to accelerate this year private deals are in the works: In a

previously, we now expect PVOil,second half of this year as well.

On the whole, Vietnam remains cdeliver 17.2% EPS growth, while tto regional peers. And with opposhould remain on Vietnam for som

accelerate this year

Opportunities abound in the continuing Great Privatisation

MARKET FORECASTS

31-May-17 Unit 2014 2015 2016E 2017F

PER x 16.5 18.9 15.6 13.4

EPS Growth % 3.0 -6.0 19.1 17.2

PEG x 5.5 neg 0.8 0.8

Sales Growth % 20 5 10 4 17 5 20 8

CO GS

Sales Growth % 20.5 10.4 17.5 20.8

EBIT Growth % 11.5 5.0 15.6 27.9

PBT Growth % 3.6 -3.8 22.1 18.9

NPAT Growth % 4.6 -3.0 22.2 18.6

Net DER x 0.3 0.5 0.4 0.3

Yield % 2.7 3.0 2.9 2.6

COMPARATIVE RATINGS, 2017

PE

R -

X

PHILIPPINES INDONESIA

INDIA

THAILANDMALAYSIA

CHINA14

16

18

20

22

EPS – LCY%

VIETNAM

CHINA

PAKISTAN

8

10

12

14

5 7 9 11 13 15 17 19 21

ing ways in May rising 3 3% to another nine-year high of 746

REVIEW

ing ways in May, rising 3.3% to another nine year high of 746e the month at 738. Average daily turnover for the month wasecond highest amount on record. Foreign investors remainedg this year, with a net inflow of $52.5m, bringing the ytd total to

on, the State Securities Commission (SSC) announced then Vietnam. Though no official date has been set yet for thet t t t i t i J l I iti ll th t t il blto start at some point in July. Initially, the contracts availableN30 Index, HNX30 Index, and a synthetic Government bond,offer to increase over time. This represents a significant step

nancial market.

May was perhaps the second public auction in two years ofin the construction material sector. The auction of 120m new

y to: (1) help achieve the privatisation plan of the Ministry ofy ( ) p p p ye State ownership in the company to 51% before 2019; and (2)on plans for the next three years. Coming off a strong 2016NPAT growth of 56% and 108% respectively, the auction was

was 2.6x times over-subscribed, with the average winning pricece. 90% of the winning bids came from foreign investors.

eve IPOs/Privatisations will accelerate again. Already severaladdition to PVPower and Binh Son Refinery that we mentionedaddition to PVPower and Binh Son Refinery that we mentioned, IDICO and Becamex IDC to be equitised and to IPO in the

cheap for its growth: Our top 50 companies are forecast torading at just 13.4x 2017 earnings. This is still a 23% discount

ortunities abounding from the Great Privatisation, the spotlightme time to come.

570

620

670

720

770

200

300

400

Trading Value (LHS)

VN Index (RHS)

MARKET PERFORMANCE

VNI$m

370

420

470

520

570

0

100

200

May-12 May-13 May-14 May-15 May-16 May-17

FOREIGN INFLOWS REMAIN NEAR MULTI-YEAR HIGH

-20

0

20

40

60

80

100

120

$m

1

-140

-120

-100

-80

-60

-40

20

May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17

VIETNAM MONTHLY REPORTPerformance Data as at 31 May 2017

PMI lower in May but

ECONOMY

May was characterized by a slowdPMI lower in May but still expansionary

Weaker PMI in line with other countries in the region

May was characterized by a slowdof positive macro developments –

The manufacturing sector expaManagers’ Index (PMI) reading ofthe past 14 months and the declinVietnam’s lower PMI was mainbusinesses and new export orders

Inflation declines as economic activity accelerates

There was still, however, quite a b• The Inflation Index slowed sharp• The Industrial Production Index a• Credit growth rose by 6.5% in 5M• Ytd FDI disbursement growth

registered FDI at $12.1bn, +10.4attraction in 5M, with an inflow o

Government taking action on NPL issue

Accelerated NPL

In banking news, the GovernmentAssembly. From the latest draft:commercial banks with a range oassets that they hold as collateral,book value), and to expedite judici

The new resolution would also alloresolution would enable more lending

off-balance sheet bad debt and seresolving the bad real estate debtsystem. Additionally, in order to mthe booking provision for fee andThe resolution would be in effect fNational Assembly will further disapproval of this resolution wouldcreate more room for banks to exp

ECONOMIC FORECASTS

p

unit 2014 2015 2016E 2017F

Real GDP Growth % 6.0 6.7 6.2 6.6

Nominal GDP $bn 185.9 196.7 204.8 220.5

CPI % 1.8 0.9 4.7 3.9

Export Growth (cif) % 13 5 7 9 8 6 9 0Export Growth (cif) % 13.5 7.9 8.6 9.0

Import Growth (cif) % 12.1 12.0 4.6 8.7

Trade Balance (cif) $bn 1.9 (3.5) 2.7 3.5

FX Reserve $bn 34.2 31.0 41.1 46.5

FDI Disbursed $bn 12.5 14.5 15.8 15.1

VND:$ (interbank) 1 21,390 22,540 22,750 23,200

2

3

4

5

6

7

8

HeadlineFoodCore

INFLATION REMAINS WELL UNDER CONTROL

-3

-2

-1

0

1

2

May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 May-17

%

Y REVIEW

down in the pace of manufacturing growth offset by a numberdown in the pace of manufacturing growth, offset by a numberand enhanced by steps toward resolving the bad debt issue.

nded for an 18th consecutive month, with a Purchasingf 51.6 in May. This was, however, the lowest PMI reading inne paralleled what happened in other countries in the region.ly attributable to a slowdown in the growth of total new

s.

bit of good news in May:ply, from 4.3% yoy in Apr to 3.2% yoy in May;accelerated from 5.1% in 4M/4M to 5.7% 5M/5M;M17 vs 5.0% and 6.0% in the same periods in 2015 and 2016;

accelerated from +3.2% yoy in 4M to 6.2% in 5M, with4% yoy. The manufacturing industry remained the largest FDIf $8.1bn, or 66.7% of the total for the period.

t has proposed a bad-debt-resolution program to the NationalRegarding collateral, the resolution is expected to empower

of new options, including the ability to take full control of theto sell those assets at the market price (even if it is lower thanal proceedings against delinquent borrowers.

ow the Vietnam Asset Management Company (VAMC) to buyell it at the market price. This would accelerate the process ofts, which constitute a large portion of the problem loans in themitigate the negative impact on banks of bad debt resolution,interest receivables would be spread over a 10-year period.

for five years, with a possible starting date of Aug 2017. Thecuss this draft on 12 Jun before voting on it on 21 Jun. The

d likely accelerate the pace of NPL resolution, which wouldpand future lending.

51

52

53

54

55

p g

PMI INDICATING EXPANSION, BUT AT A SLOWER PACE

46

47

48

49

50

May-13 May-14 May-15 May-16 May-17

51

52

53

54

55

VIETINDIA

INDO

REGIONAL PMIs NOT AS ROBUST AS VIETNAM’S

7

2

47

48

49

50

Jan-16 May-16 Sep-16 Jan-17 May-17

CHINA

MALAY

VIETNAM MONTHLY REPORTPerformance Data as at 31 May 2017

VEIL rose 5 0% (TR$) in May beating the VN Index by 1 7%

VIETNAM ENTERPRISE INVE

VEIL rose 5.0% (TR$) in May, beating the VN Index by 1.7%.and materials holdings, as well as a few miscellaneous stocks

The Fund’s bank holdings contributed 1.6% to performancepaying off. MBB surged as the market responded to its healtand better investor outreach. All of this has prompted upgradeanalysts. Our other top-ten bank holding, Asia Commercial Baour underweight in sector heavyweight Vietcombank (VCB), w

The materials sector was the second-largest contributor to perfGroup (NKG, 2.1% of NAV) rose 20.0%, and Hoa Sen Group (well as Government approval of new import quotas and tariffsyears. And glass-maker Viglacera (VGC, 14th-largest holdinauction at the end of May was 2.6x over-subscribed.

Our overweight in retailer Mobile World (MWG) continued to b1 1 t k b d h di id d f VND 1 500/ h A d FP1:1 stock bonus and a cash dividend of VND 1,500/sh. And FP

The biggest drag on the Fund was the energy sector, which knafter its uniform surge in Apr: Khang Dien House (KDH) +11.2Like NVL, other IPO stocks also seemed to be marking time, oVEAM -7.9%, ACV -3.2%, though the latter two had special situ

PRICE AND

140

NetAssets

NAV/SharePrice

Bid Offer

$1,160.1m $5.27 - -

£898.6m £4.08 £3.48 £3.49

NAV PERFORMAN

60

80

100

120VEIL (NAV)VNI (benchmark)VN30 (comp)

% TR$ - 31/05/2017

5.0

19.5

35.5

3.3

12.521.7

5.4

15.6 17.7

0

20

40

1M YTD 1Y

TOP 10 HOLDINGS (57 6% f NAV)TOP 10 HOLDINGS (57.6% of NAV)

COMPANY SECTOR VNI % NAV % CH %

1 Vinamilk F&B 12.31 12.60 2.6

2 Mobile World Retail 0.82 7.34 12.9

3 Military Bank Banks 1.83 6.18 19.4

4 Asia Comm’l Bank Banks - 6.00 7.8

5 FPT Corp S’ware/Svc's 1.12 5.67 8.75 FPT Corp S ware/Svc s 1.12 5.67 8.7

6 Vietjet Air Transport 2.17 4.61 0.9

7 PV Gas Energy 6.03 3.94 0.2

8 Khang Dien House Property 0.37 3.86 11.2

9 Hoa Phat Group Mat's/Res 2.18 3.72 3.4

10 ACV Transport - 3.67 -3.2

The Fund’s outperformance was mainly attributable to its bank

ESTMENTS LIMITED – VEIL

The Fund s outperformance was mainly attributable to its banklike Mobile World (MWG) and FPT.

, led by Military Bank (MBB), where the large overweight isthy results, improved management in the form of a new CEO,es in recommendations and target prices from the top sell-sideank (ACB), also rose sharply. Collectively, this more than offset

which also did well at +3.1%.

formance. Among the Fund’s positions in the sector, Nam Kim(HSG, 1.9% of NAV)) rose 18.8%, on strong 1Q17 earnings, ass on various types of pre-painted steel sheet for the next threeng, 2.5% of NAV), rose 15.6% on news that its 120m-share

be justified as the stock rose on corporate actions, including aPT i d th t f th di t t f FPT T diPT gained on the prospect of the divestment of FPT Trading.

ocked 1.5% off performance. The real estate sector was mixed2%, Dat Xanh Group (DXG) -8.4% and Novaland (NVL) -5.2%.or worse, after their early listing gains: Vietjet Air (VJC) +0.9%,uations to contend with.

NAV DATA

123.3

Price Change Std. Dev. Sharpe Ratio

Monthly YTD

8.4% 23.1% 13.2 1.25

8.6% 17.9% - -

NCE (in $ terms)

54.559.7

89.3

53.1

33.3 35.6

24.1 17.8

2Y 3Y 5Y

DISCOUNT TO NAVDISCOUNT TO NAV

%

(20)

(10)

0

10

20

3

(50)

(40)

(30)

(20)

Jan-05 Feb-07 Mar-09 Mar-11 Apr-13 May-15 May-17

VIETNAM MONTHLY REPORTPerformance Data as at 31 May 2017

VEUF gained 4 4% (TR$) in May while its benchmark the FTS

VIETNAM EQUITY (U

VEUF gained 4.4% (TR$) in May while its benchmark, the FTSwas attributable to outsized gains in top holdings Mobile Worl(DHG). In fact, the only decliner amongst the Fund’s top 10 ho

MWG rose on strong 4M results: Net earnings were up 33% yobonus share issuance after the ex-rights date. Same store sal15%, while aggressive store openings and a 92% growth in ocompany’s grocery chain BHX is still in testing mode as it sear38 new BHX stores bringing total store count to 85 by Apr38 new BHX stores, bringing total store count to 85 by Apr.price was 18% higher than VEUF’s purchase price in 1Q17.

Another holding that is enjoying the power of its retail chain issame store sales growth of 25% in 1Q17 vs 3% in 1Q16; andfor Dong A Bank in 1Q16. Excluding this one-off amount, PBwith plans for continued store expansion and strong SSSG, whMWG case, VEUF already has a 25% gain on its premium purc

DHG rose on good 1Q results and a 2:1 stock dividend (onereported 1Q revenue and net profit of VND 882bn (+8.2% yoy)

On the downside, SAB fell 5.4%, as there was still no news rfallen 15% from its peak after gaining sharply after its debut onnet earnings jumped 19% yoy. Despite its rich valuation of 24.producers. This leaves a lot of room for efficiency improvemen

PRICE AND

NAV/ShareNAV Change

Monthly YTD To$18.32 4.4% 12.2% $113

NAV PERFO

% TR$ 31/05/201790

100

% TR$ - 31/05/2017

23.2 21.730

40

50

60

70

80

90

VEUFFTSE VietnamVNIndex

TOP 10 HOLDINGS (56 1% f NAV)

4.4

12.2

0.47.8

3.73.3

12.5

21.7

-20

-10

0

10

20

1M YTD 1Y

TOP 10 HOLDINGS (56.1% of NAV)

COMPANY SECTOR FTSE % NAV % CH %

1 Mobile World Retail 8.91 12.9

2 Vinamilk F&B 16.75 8.88 2.6

3 Phu Nhuan Jewelry Cons Dur 6.49 9.4

4 Sabeco F&B 4.80 -5.4

5 Vietjet Air Transport 4.77 0.95 Vietjet Air Transport 4.77 0.9

6 Hau Giang Pharma Pharma 4.62 14.5

7 Vinh Hoan F&B 4.60 6.3

8 FPT Corp S’ware/Svcs 4.44 8.7

9 Viglacera Mats/Res 4.30 9.7

10 Hoa Phat Group Mats/Res 10.81 4.28 3.4

SE Vietnam index rose by 0 4% The Fund’s outperformance

CITS) FUND – VEUF

SE Vietnam index, rose by 0.4%. The Fund s outperformanceld (MWG), Phu Nhuan Jewelry (PNJ) and Hau Giang Pharma

oldings was Sabeco (SAB).

oy. The market also responded favorably to the company’s 1:1les at the company’s Dien May Xanh (DMX) CE chain grew bynline sales further added to the pace of revenue growth. Therches for the right formula for success. Ytd, MWG has openedOf note regarding the share price: The foreigners’ matchingOf note regarding the share price: The foreigners matching

s PNJ. It rose on 1Q earnings growth of 105%, driven by: (a)(b) a low base last year, as it booked a provision of VND 85bn

BT still rose 31%. The company’s 2017 outlook remains solid,hich is projected to catapult EPS by 43.2% yoy. Similar to thechase price.

new share paid for every two shares owned). The companyand VND 173bn (+14.3% yoy).

regarding the Government’s anticipated divestment. SAB hasn the HSX. In 1Q, the company’s revenue grew 5% yoy while.5x FY2017 earnings, SAB’s margin is half of that of other beernt once it takes on a strategic partner.

NAV DATA

Net AssetsStd. Dev. Sharpe Ratio

tal Cash.19m 6.0% 12.28% 1.42

ORMANCE

83 2

49.2

63.5

83.2

33.3 35.6

58.3

SECTOR BREAKDOWN

0.7

-9.8

8.3

2Y 3Y INCEPTION 09/13

SECTOR BREAKDOWN

Div Fin 0.5%Brokers 0.8%

Auto 1.1%Energy 1.4%

Infra 3.7%Property 4.1%

S'ware/Svc's 4.4%

Utilities 4.5%

Pharma 4.9%

Mat's/Res 14 3%

F&B 18.3%

4

Cash 6.0%

Banks 6.0%

Cons Dur 8.9%

Retail 8.9%

Transport 12.3%

Mat s/Res 14.3%

VIETNAM MONTHLY REPORTPerformance Data as at 31 May 2017

With a stable currency low inflation and plenty of cash in the

VIETNAM DEBT

With a stable currency, low inflation, and plenty of cash in theThe overnight rate came down by more than 200 bps to 2.1-2.This resulted in a significant steepening of the yield curve, with3.80%, 4.60%, 5.05% and 5.95%.

The very longest end of the curve also did well. At the end owere 7.20 and 7.68%; by end of May they had fallen to 7.00 alongest maturities was broken, as many banks are now allowedown it also increased the price volatility in these long dated bdown, it also increased the price volatility in these long-dated b

Going forward, the slope at the longer end of the curve is still30-year maturities offer very good value. A good indicator for14%. As the USD has been very soft, the dong/dollar exchweighted currency basket, the dong has weakened by more tThe Government has so far in 2017 been very slow with budgbanking sector. Most likely, the ample liquidity will continue ovthi ld b th ki f ti d ll h t t if th

PRICE AND

this could be the making of a continued rally short-term, if the m

VDeF B had a fairly good month and was in gross terms ahefalling, it is very difficult to beat the DC Bond Index, which is mbelow 5% and gained close to 1.5% in May. This is very diffeduration of less than 2.5%.

210

240NAV PERFO

%

NetAssets

NAV/Share

VND R

Month YT

VDeF - B $93.24m $1,678.7 0.9% 2.6DCB Index - - 1.3% 4.4

90

120

150

180

210 VDeF Net

DC Vietnam Liquid Bond Index

-30

0

30

60

Dec-07 Oct-09 Sep-11

VGB

8

1010yr VGB5yr VGB2yr VGB

VGBs

%

4

6

Feb-13 Mar-14 Apr-15 May-16 May-17

e banking system May saw a dramatic fall in interbank rates

T FUND – VDeF

e banking system, May saw a dramatic fall in interbank rates..2%, while the one-month rate came down from 4.8% to 3.5%.

h 1, 2, 5 and 10-year VGB rates falling 50, 35, 20 and 10 bps to

of Apr, the winning auction rates for the 20 and 30-year bondsand 7.55%. The monopoly of the insurance companies on theed to hold 20 and 30-year bonds. Although this pushed ratesondsonds.

very steep, and relative to the shorter tenures, the 15, 20 andthis is the one-year rate 29 years forward, which is more than

hange rate has remained firm, while against a generic tradethan 4%. This has increased the SBV’s room for manoeuvre.get disbursements, which has resulted in cash flooding into thever the summer, and in combination with decent fundamentals,

k t h th fid t b t l l l

NAV DATA

market has the confidence to buy at lower levels.

ead of the 1, 2 and 3-year indices. However, when rates arearket-capitalization weighted. It has a modified duration of justerent from just two years ago, when the Index had a modified

ORMANCE

eturns USD Returns

TD Since Launch Month YTD Since Launch

6% 227.4% 1.0% 2.8% 131.2%4% 138.6% 1.5% 4.6% 68.4%

Aug-13 Jul-15 May-17

VIETNAM CDS

bps

300

400

500

600

700

800

Vietnam

Diff to Average of Indo/Phil/Thai

7

5

-100

0

100

200

Sep-08 Nov-10 Jan-13 Mar-15 May-17

VIETNAM MONTHLY REPORTPerformance Data as at 31 May 2017

One of our smaller positions has risen substantially so far this

VIETNAM PROPER

One of our smaller positions has risen substantially so far thisits key assets. Development Investment and Construction JSCthe Dai Phuoc Lotus project in Dong Nai province to China Fo390bn, or $14.3m. The sale was alongside Vinacapital’s Vinproject to CFLD. The total price of this deal is thought to hadeveloper was keen for DIG to stay in the project by requestindevelopment land in Dong Nai province to the southeast of HCperformance of DIG had been poor since VPF purchased the48% of this gain happening in Apr and May taking the price t48% of this gain happening in Apr and May, taking the price taround $2m, or 3% of the Fund’s NAV.

CFLD is among the first of many more Chinese investors who abuyers had been reluctant to put money into the country duepossible restrictions on licensing. This may be the first of mandeveloper of industrial parks and urban areas, as well adevelopment and property management. The Dai Phuoc Lotusha island in the Dong Nai River It comprises a fully master pha island in the Dong Nai River. It comprises a fully master pmarina, recreational facilities, parks, lakes and an 18-hole golf c

May also saw the release of an interesting statistic relating to1,300 units, the price of apartments remained fairly static. Thasurprise is the land market: Land fever has hit the outlying distMon, Cu Chi and Can Gio. Prices are up as much as 70% onrail and road, as well as good old-fashioned speculation. It is oand apartments are not increasing at the same pace This lea

1 0

and apartments – are not increasing at the same pace. This lea

SHARE PRICE

PRICE AND

NAV/ShareNAV Change Price

Monthly YTD Bid Offer$0.80 0.3% -0.1% $0.60 $0.66

0.8

1.0

$

0.4

0.6

May-08 Nov-09 May-11 Nov-12 May-14 Nov-15 May-17

VPF PORTFOL

By Asset Class Fair Value ($) % of NAV

Private Equities 29,482,123 43.5

Investment Receivables 18,777,000 27.7

Investment Loan 9,582,400 14.1

Cash 7,355,136 10.8

Listed Equities 1,302,250 1.9

OTC Equities 1,246,313 1.8

Others* 79,453 0.1

Total 67,824,675 100.0

year and continues to perform well following the sale of one of

RTY FUND – VPF

year and continues to perform well following the sale of one ofC (DIG) recently agreed terms to sell 20% of its 28% holding inrtune Land Development Company (CFLD) for a price of VND

naLand Fund, which sold its entire position in this river islandave been around $82m for 92% of the project. The Chineseng them to retain an 8% stake. DIG holds a large land bank ofCMC, as well as in the southern oil city of Vung Tau. Whilst the

shares some years ago, the stock is up nearly 90% ytd, withto VND 12 800 per share This takes VPF’s holding in DIG toto VND 12,800 per share. This takes VPF s holding in DIG to

are looking to invest directly into Vietnam. Previously, Chineseto tensions in the East Sea (South China Sea to others) and

ny purchases in the coming months. CFLD is a Beijing-centricas supporting services of land consolidation, infrastructures project will suit them well, as it is a vast 200 ha site on a 464planned community of villas office buildings shopping malls aplanned community of villas, office buildings, shopping malls, acourse that is already operational.

land pricing. Whilst apartment sales numbers grew slightly toat is not really a surprise, considering supply issues. What is atricts of HCMC, such as District 2, District 9, Binh Chanh, Hoc

n 2016 levels, mainly due to improved infrastructure links, bothodd that the prices of what you can build on the land – housesads to the conclusion that we are seeing a land bubble

1 110

ads to the conclusion that we are seeing a land bubble.

NAV DATA

NAV PREMIUM / DISCOUNT

Price Change NetAssets

Std. Dev. Sharpe RatioMonthly YTD

0.0% -1.6% $67.82m 8.97 0.73

0.8

0.9

1.0

1.1

(20)

(10)

0

10 Share Price Premium/Discount to NAV (LHS)NAV (RHS)

$%

7

0.5

0.6

0.7

(50)

(40)

(30)

May-08 Mar-10 Jan-12 Oct-13 Aug-15 May-17

LIO SUMMARY

By Sector Fair Value ($) % of NAV

Property Projects 39,064,523 57.6

Investment Receivables 18,777,000 27.7

Cash 7,355,136 10.8

Property Stocks 2,548,563 3.8

6

Others* 79,453 0.1

Total 67,824,675 100.0

* “Others” is the net of other accounts receivable and accounts payable.

VIETNAM MONTHLY REPORTPerformance Data as at 31 May 2017

APPENDIX 1

Key IndicatorsItem Unit 2010 2011 20

Top-D

GDP $bn 114.0 133.5 15

Real GDP Growth % 6 8 5 9Real GDP Growth % 6.8 5.9

Services Growth % 7.5 7.0

Agriculture Growth % 2.8 4.0

Ind'l and Const'n Growth % 7.7 5.5

Retail Sales Growth % 24.5 24.2 1

Price

CPI % 11 8 18 1CPI % 11.8 18.1

Money, FX & Int

Money Supply M2 % 29.7 11.9 2

Average Lending Rate % 13.1 20.1 1

5-yr VGB % 11.5 12.6

VND : $ $1 20,700 21,200 20,8

External SExternal S

Trade Balance $bn (12.6) (9.8)

Current Account $bn (4.3) 0.2

Current Account / GDP % (3.8) 0.2

FDI Registered $bn 19.0 14.7 1

FDI Disbursement $bn 11.0 11.0 1

FDI Net Disbursement $bn 8 0 7 4FDI Net Disbursement $bn 8.0 7.4

FX Reserves $bn 12.4 13.5 2

Public Debt & Fis

External Debt $bn 40.4 49.6 5

External Debt (% GDP) % 35.4 37.2 3

Fiscal Balance (% GDP) % (5.5) (4.5) (5

1: MACRO

012 2013 2014 2015 2016E 2017F

Down

5.8 172.1 185.9 196.7 204.8 220.5

5 3 5 4 6 0 6 7 6 2 6 65.3 5.4 6.0 6.7 6.2 6.6

5.9 6.7 6.2 6.3 7.0 7.0

2.7 2.6 3.4 2.4 1.4 1.4

5.8 5.1 6.4 9.6 7.6 8.6

6.0 13.5 10.6 9.5 11.0 11.0

es

6 8 6 0 1 8 0 6 4 7 3 96.8 6.0 1.8 0.6 4.7 3.9

terest Rates

4.5 18.0 16.0 18.0 18.0 18.0

7.9 13.2 9.7 8.6 9.0 9.3

9.8 8.2 5.2 6.6 7.0 7.0

850 21,250 21,350 22,540 22,750 23,200

SectorSector

0.8 0.0 1.9 (3.5) 2.7 3.5

9.1 6.8 6.0 3.0 3.8 4.5

5.8 4.0 3.2 1.5 1.9 2.0

3.2 21.6 20.3 22.8 23.4 23.0

0.5 11.5 12.5 14.5 15.8 15.1

8 4 8 3 7 9 9 1 9 9 9 58.4 8.3 7.9 9.1 9.9 9.5

5.6 32.1 37.2 31.0 41.0 49.0

scal Balance

8.4 63.5 74.0 77.2 79.4 86.5

7.5 36.9 39.8 39.3 38.8 39.2

5.4) (5.5) (5.3) (5.2) (4.7) (4.2)

7

VIETNAM MONTHLY REPORTPerformance Data as at 31 May 2017

APPENDIX 2

Key Stock Market DataHSX

31-May-16 31-May-17 31-MMarket cap ($m) 55,383 78,885 6Number of stocks 305 326Number of large cap stocks (> $400m) 19 27

Top 25 Companies

Stocks with no room for foreigners 21 15Market cap of stocks with no room ($m) 11,590 8,413Share of Market Cap with No Room (%) 20.9 10.7

Top 25 CompaniesNo Company Price YTD Cap in VNI 20

(VND) (%) ($m) (%)

1 Vinamilk 149,700 20.8 9,571 12.31 3

2 Vietcombank 36,200 2.1 5,737 7.38 2

3 Sabeco 189,100 -4.4 5,342 6.87 3

4 PV Gas 55,600 -7.1 4,686 6.03 1

5 Vingroup 40 250 4 2 4 677 6 02 85 Vingroup 40,250 -4.2 4,677 6.02 8

6 Airports Corporation VN 48,000 -1.2 4,604 - 6

7 Vietinbank 18,800 30.2 3,084 3.97 1

8 BIDV 18,450 29.9 2,779 3.57 1

9 Masan Group 43,200 4.7 2,166 2.81 3

10 Vietjet Air 127,800 19.3 1,815 2.17 3

11 Novaland 67,000 11.5 1,740 2.24 6

12 Bao Viet Holding 57,600 -1.0 1,727 2.22 3

13 Hoa Phat Group 30,400 5.7 1,693 2.18 1

14 Military Bank 18,850 40.3 1,422 1.83 1

15 Mobile World 93,500 20.9 1,267 0.82 2

16 ACB 25,000 42.0 1,086 - 2

17 FPT 43,000 14.7 1,006 1.12 1

18 Quang Ngai Sugar 91 600 27 0 864 - 118 Quang Ngai Sugar 91,600 27.0 864 1

19 Coteccons 214,000 17.3 726 0.93 2

20 Hau Giang Pharma 108,000 69.4 622 0.53 2

21 SSI 24,800 26.5 535 0.69 1

22 Hoa Sen Group 32,800 15.1 506 0.37 1

23 REE 31,650 36.6 432 0.56 1

24 CII 39,000 40.8 415 0.61 1

25 Phu Nhuan Jewelry 95,300 44.6 413 0.53 6

2: MARKET

HNX UPCoM Total

May-16 31-May-17 31-May-16 31-May-17 31-May-16 31-May-17

6,714 7,683 4,414 18,292 66,511 104,859

377 379 299 542 981 1,247

1 2 2 8 22 37

4 11 0 2 25 28

987 1,477 0 41 12,577 9,931

14.7 19.2 0 0.2 35.6 30.1

15 2016 2017F 2015 2016 2017F 2015 2016 2017F(x) (x) (x) (x) (x) (x) (%) (%) (%)

30.9 25.8 21.5 10.4 9.8 10.5 4.0 4.0 4.0

24.5 19.1 14.6 2.9 2.7 2.4 2.8 2.8 2.8

37.8 28.8 25.4 8.6 9.8 7.6 1.6 1.6 1.6

2.6 15.3 14.7 2.6 2.7 2.7 6.3 5.4 5.4

87 3 43 5 34 4 4 6 3 9 3 6 0 0 0 0 0 087.3 43.5 34.4 4.6 3.9 3.6 0.0 0.0 0.0

61.0 36.3 28.4 5.3 4.5 4.1 0.0 1.0 1.0

2.3 10.2 10.6 1.3 1.2 1.2 0.0 0.0 0.0

0.0 10.8 11.5 1.5 1.6 1.3 5.4 0.0 0.0

32.5 17.5 14.7 2.9 3.2 2.2 0.0 0.0 0.0

34.4 16.5 12.1 26.5 12.4 6.2 3.5 2.0 2.3

68.3 21.9 18.1 5.5 4.0 2.9 0.0 0.0 0.0

34.7 29.1 31.4 3.3 3.2 3.2 1.4 1.7 1.7

1.6 5.8 6.1 1.5 1.3 1.2 4.9 4.9 0.0

1.0 11.3 9.6 1.2 1.3 1.2 5.3 5.3 5.3

25.0 18.3 13.5 10.8 7.5 5.2 1.6 1.6 1.6

24.0 18.6 12.2 1.8 1.8 1.5 0.0 0.0 0.0

3.0 12.7 11.2 2.6 2.4 2.2 4.7 4.7 5.1

2 0 10 4 10 5 4 2 3 7 2 9 3 3 2 2 2 22.0 10.4 10.5 4.2 3.7 2.9 3.3 2.2 2.2

20.0 9.9 9.1 4.1 2.6 2.1 2.6 3.3 3.3

26.7 22.1 19.9 5.6 4.9 4.2 3.2 3.2 3.7

4.4 14.3 12.9 1.8 1.7 1.7 4.0 4.0 4.0

7.8 7.7 6.6 3.9 2.7 2.4 7.6 4.6 4.6

0.0 7.8 11.4 1.5 1.4 1.3 3.2 3.2 3.2

4.2 12.3 10.5 1.9 1.9 1.9 4.1 4.1 4.1

68.3 23.1 16.1 6.7 6.2 6.2 2.1 1.6 1.6

8

VIETNAM MONTHLY REPORTPerformance Data as at 31 May 2017

Fund Bloomberg ISIN SE

VEIL VEIL LN KYG9361H1092 BD

Price Providers Funds Bloomb

VEUF VIETNAM ID IE00BD5HPH84

VDeF-B VNDEBTB KYG936151136 B3

VPF VPF ID KYG9362H1083 B9

Dragon Capital Markets VPF DGCP

Jefferies International VEIL,VPF JCEF

BNP Paribas VEUFBNP Paribas VEUF –

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alf of Enterprise Investment Management Limited (for VEIL) Dragon Capitalalf of Enterprise Investment Management Limited (for VEIL), Dragon Capitald (for VDeF), and Dragon Capital Management (Hong Kong) Limited (for

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9