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    Vipc capital management company  brochure 2010 Vipc capital management company brochure 2010 Document Transcript

    • VIPC BROCHURE 2010
    • VIPC Viet Investment Power TABLE OF CONTENTS PART 1:VIETNAM – EMERGING FOR OPPORTUNITIES ...................................................... 6 I. Vietnam – Land for Opportunities............................................................................................... 7 1. Vietnam at a glance ................................................................................................................. 7 1.1 Geography ......................................................................................................................... 7 1.2 Society............................................................................................................................... 7 1.3 Infrastructure ..................................................................................................................... 7 1.4 Economy ........................................................................................................................... 7 2. Why do invest in Vietnam ...................................................................................................... 8 II. Foreign Direct Investment in Vietnam ....................................................................................... 9 1. FDI inflows to Vietnam (1988- May 2010) ............................................................................ 9 2. FDI distribution by sector (1988-2007) ................................................................................ 10 3. Top ten countries investing to Vietnam ................................................................................ 11 III. Post – WTO Investment climate & Legal framework ............................................................ 12 1. Vietnam’s commitments to WTO ......................................................................................... 12 1.1 Schedule of concessions & commitments on goods: ...................................................... 12 1.2 Schedule of specific commitments on trade in services ................................................. 12 2. Investment-related obligations .............................................................................................. 12 3. Investment Opportunities entitled to Incentives ................................................................... 13 3.1 Preferential sectors: ....................................................................................................... 13 3.2 Regions entitled to Incentives: ........................................................................................ 13 2
    • VIPC Viet Investment Power 4. Incentives on Corporate Income Tax .................................................................................... 13 5. Import Duty Exemption & Reduction................................................................................... 14 6. Forms of Investment ............................................................................................................. 14 7. Licensing & Registration Procedure ..................................................................................... 15 8. Investment Licensing Bodies ................................................................................................ 15 IV. Investment- related cost .......................................................................................................... 16 1. Monthly-wage (Source: JETRO survey, May 2009) ............................................................ 16 2. Land price, office rent (Source: JETRO survey, May 2009) ................................................ 16 3. Public Utility & Transportation expenses ............................................................................. 17 (Source: JETRO survey, May 2009) ......................................................................................... 17 4. Taxation (Source: JETRO survey, May 2009) ..................................................................... 18 PART 2: FOREIGN INVESTMENT IN VIETNAM ................................................................... 19 (Indirect investment in stock market) ........................................................................................... 19 Foreign investment in Vietnam's securities market ...................................................................... 19 I.Foreign investment in Vietnam's securities market .................................................................... 20 1. WHO are foreign investors? ................................................................................................. 20 2. What must a foreign investor do? ......................................................................................... 20 3. What must a foreign investor not do? ................................................................................... 21 4. Making the investment ......................................................................................................... 21 5. Appointment of a transaction representative ........................................................................ 22 6. Engaging a local fund manager............................................................................................. 22 3
    • VIPC Viet Investment Power 7. Reporting............................................................................................................................... 22 8. What's missing? .................................................................................................................... 22 8.1 Personal income tax ( for individual).............................................................................. 22 8.2 Enterprise income tax (FOR institute) ............................................................................ 23 8.3 Capital investment tax (FOR investor) ........................................................................... 23 II.Investment entrustment process ................................................................................................ 23 III. Fee ........................................................................................................................................... 24 1. Fee for investment portfolio (VIPC): ................................................................................. 24 2. Broker fee (Securities company): ...................................................................................... 24 3. Custodian fee and asset keeping (custodian bank): ........................................................... 24 IV. Tax (MENTION above) ......................................................................................................... 25 1. Individuals (one of the following case) ............................................................................. 25 2. Enterprise income tax (Mention above) ............................................................................. 25 2.1 Institutes .......................................................................................................................... 25 2.2 Capital investment tax..................................................................................................... 25 PART 3:VIPC CAPITAL MANAGEMENT CORPORATION .................................................. 26 I. Our Firm .................................................................................................................................... 27 II.VIPC Products & Services ........................................................................................................ 29 1. VIPC Product family............................................................................................................. 29 2. Real Estate Fund (REF) ........................................................................................................ 29 2.1 Investment Objective ...................................................................................................... 29 4
    • VIPC Viet Investment Power 2.2 Investment Strategy ........................................................................................................ 30 2.3 Investment process .......................................................................................................... 30 2.4 Why Vietnam? ................................................................................................................ 31 2.5 Key Facts ........................................................................................................................ 32 2.6 VIPC Real estate Fund structure ..................................................................................... 34 2.7 What are the benefits VIPC’s REF bring to investors? .................................................. 35 3. Portfolio management services ............................................................................................. 36 3.1 VIPC Portfolio Management Service (PMS) OFFERS: ................................................. 36 3.2 Investment methodology:................................................................................................ 36 3.3 PMS Term ....................................................................................................................... 37 3.4 VIPC 6 PMS Models ...................................................................................................... 38 3.5 Portfolio asset allocation and performance in 2009 ........................................................ 41 4. Advisory services .................................................................................................................. 47 4.1 About Our Team: ............................................................................................................ 47 4.2 Advantages to deal with us ............................................................................................. 47 5
    • VIPC Viet Investment Power PART 1: VIETNAM – EMERGING FOR OPPORTUNITIES 6
    • VIPC Viet Investment Power I. VIETNAM – LAND FOR OPPORTUNITIES 1. VIETNAM AT A GLANCE 1.1 GEOGRAPHY  Population (2009): 85.79 millions  Centre of Southeast Asia  Area: 331,698 sq. km  Coastline: 3,260 km 1.2 SOCIETY  Growth rate (2007): 1.2%  Under 30 yrs old: >60%  Literacy rate: >90% 1.3 INFRASTRUCTURE  National highways: 86,327 km  Railways: 3,219 km  International Airports: Hanoi, Da Nang & Ho Chi Minh City  International Seaports: 11 (Cai Lan, Da Nang, Van Phong, etc.)  150 IPs with area of 31,436 ha  8 EZs with area of 323,940 ha 1.4 ECONOMY  Real GDP: 94.68 billion US$  Real GDP growth rate (2009): 5.2%, year 2010e: 8.5%  Real GDP per capita (2009): US$ 1052,year 2010e: 1200 US$  Export Turnover (May 2010): US$ 6.1 billion 7
    • VIPC Viet Investment Power 2. WHY DO INVEST IN VIETNAM  Political and socio-economic stability  Brisk and steady economic growth  Transportation hub of Southeast Asia  Abundant young labor force at low price  Member of WTO, APEC, ASEAN, ASEM  Favorable FDI promotion policies  Rapidly improving infrastructure Source: FIA , GoldmanSachs Vietnam GDP Growth rate (%) forecast 10 9.54 9.34 8.83 9 8.7 8.48 8.4 8.2 8.28 8.08 8.15 8 7.7 7.1 6.75 6.84 7.01 7 6.32 5.81 5.76 6 5.2 4.77 5 4 3 2 1 0 8
    • VIPC Viet Investment Power II. FOREIGN DIRECT INVESTMENT IN VIETNAM 1. FDI INFLOWS TO VIETNAM (1988- MAY 2010) US$ mil. 70000 64,000 60000 50000 40000 30000 Investment inflows 21,300 21,480 Disbursed 20000 10,200 11,500 10,000 10000 8,030 5,920 3,600 0 1999 1991 1992 1993 1994 1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 5 months 2010 1988-1990 9
    • VIPC Viet Investment Power 2. FDI DISTRIBUTION BY SECTOR (1988-2007) Oil & gas industry FDI distribution by sector( 1988-2007) Light industry IPs-EZs infrastructure Heavy industry Oil & gas Office- industry Light industry Food Apartment New urban Building 1.78% 4.59% Agro-forestry 1.47% 11.07% Hotel- 4.09% 15.93% Tourism 1.08% Marine industry 7.21% Transport Services ation-Post 5.08% 2.53% 28.73% Transportation- 4.71% Post Services Hotel-Tourism Marine 6.90% industry 0.53% Banking-Finance Culture- Medical- Agro- 4.28% Education Heavy industry Forestry New urban infrastructure Building Food Office-Apartment Source: building FIA IPs-Ezs infrastructure 10
    • VIPC Viet Investment Power 3. TOP TEN COUNTRIES INVESTING TO VIETNAM No. Countries Number of Investment capital Legal capital Disbursed capital projects 1. Korea 1857 14,398,138,655 5,168,461,054 2,738,114,393 2. Singapore 549 11,058,802,313 3,894,467,177 3,858,078,376 3. Taiwan 1801 10,763,147,783 4,598,733,632 3,079,209,610 4. Japan 934 9,179,715,704 3,963,292,649 4,987,063,346 5. British Virgin 342 7,794,876,348 2,612,088,725 1,375,722,679 Islands 6. Hong Kong 457 5,933,188,334 2,166,936,512 2,161,176,270 7. Malaysia 245 2,823,171,518 1,797,165,234 1,083,158,348 8. USA 376 2,788,623,488 1,449,742,606 746,009,069 9. Holland 86 2,598,537,747 1,482,216,843 2,031,314,551 10. France 196 2,376,366,335 1,441,010,694 1,085,203,846 11
    • VIPC Viet Investment Power III. POST – WTO INVESTMENT CLIMATE & LEGAL FRAMEWORK 1. VIETNAM’S COMMITMENTS TO WTO 1.1 SCHEDULE OF CONCESSIONS & COMMITMENTS ON GOODS:  Bound rates for 10,600 tariff lines  An average cut from 17.4% to 13.4% phased over 5-7 years since 2007  Largest reduction applied to garments & textiles, fish& fish products, wood & paper, other manufactured goods, machinery, electrical & electronic items  Committed to be member (fully or partially) to initiatives for IT products, garments & textiles, medical equipment, aircraft, chemicals, construction, equipment etc. Tariffs cut phased over 3-5 years since 2007 1.2 SCHEDULE OF SPECIFIC COMMITMENTS ON TRADE IN SERVICES  Open door in 11 out of 12 service sectors (or 110 out of 115 sub-sectors), including: business services, communication, construction & related engineering, distribution, health, insurance, education, tourism, environment, finance, entertainment, transportation, etc.  Commitments put in force right after WTO accession. In some cases, they’re phased over 2-4-6 years since 2007 2. INVESTMENT-RELATED OBLIGATIONS  TRIMS (effective from 11 Jan 2007): Eliminate the application of requirements on trade balance, foreign exchange control on imports, export performance, export restrictions and local contents  Intellectual Property Rights: Comply with TRIPS Agreement upon accession  Transparency: Make public draft WTO-related legal instruments for public comments; Make public all legal documents; Provide WTO members with annual reports on equalization program 12
    • VIPC Viet Investment Power 3. INVESTMENT OPPORTUNITIES ENTITLED TO INCENTIVES 3.1 PREFERENTIAL SECTORS:  Manufacture of new material & production of new energy, manufacture of high-tech products, bio-technology, information technology & mechanical manufacturing;  Breeding, rearing, growing & processing of agricultural, forestry & aquaculture products, production of salt, creation of new plant & animal varieties;  Utilization of high technology & advanced techniques, protection of the ecological environment & research, development & creation of high technology  Labor intensive industries;  Construction &development of infrastructure facilities & important industrial large-scale projects;  Professional development of education, training, health, sports, physical education & Vietnamese culture;  Development of traditional crafts & industries; and  Other manufacturing & service sectors which require encouragement 3.2 REGIONS ENTITLED TO INCENTIVES:  Regions with special difficult socio-economic conditions;  Regions with difficult socio-economic conditions; and  Industrial zones, Export processing zones, High-tech zones & Economic zones 4. INCENTIVES ON CORPORATE INCOME TAX  Standard rate: 28%  Preferential rates of 10%, 15% and 20% for a period of 15 years, 12 years and 10 years are available depending on the scope of activities and location of the investment.  Tax holidays: A complete exemption from CIT for a certain period (4 yrs at maximum) followed by a period where tax is charged at half rate (9 yrs at maximum) 13
    • VIPC Viet Investment Power  Losses: Carry forward losses for 5 years  Other incentives: Exemption or deduction of land use tax, land use fee, land rent, and water surface rent 5. IMPORT DUTY EXEMPTION & REDUCTION Exemption applied to projects in investment encouraged sectors & regions on:  Machinery & equipment, specialized means of transportation & construction materials( which cannot be produced in Vietnam) comprising the fixed assets of certain projects  Raw materials, spare parts, accessories, other supplies, samples, machinery & equipment imported for the processing of goods for export and finished products imported to stock to the processed goods Preferential rates applied to imported goods from countries that enjoy MFN with Vietnam (89 countries). Rates vary by the category of goods. Special preferential rates applied to imported goods from countries that signed special agreement with Vietnam (e.g. ASEAN) Ordinary rates are 150% of preferential rates 6. FORMS OF INVESTMENT  100% foreign-owned enterprise o Limited liability Company o Joint stock company o Partnership o Holding company  Joint venture  Business cooperation contract  BOT, BTO, BT  Capital contribution, purchase of shareholding,  M&A 14
    • VIPC Viet Investment Power 7. LICENSING & REGISTRATION PROCEDURE 8. INVESTMENT LICENSING BODIES 15
    • VIPC Viet Investment Power IV. INVESTMENT- RELATED COST 1. MONTHLY-WAGE (SOURCE: JETRO SURVEY, MAY 2009) Monthly Ha Noi HCMC Shanghai Hong Kong Singapore wage(US$) Worker 96 96 249 1294 1027 Engineer 270 270 610 2092 1892 Manager 798 798 966 3237 3139 Legal minimum 70.7 70.7 140.4 Nil _ wage(monthly) 2. LAND PRICE, OFFICE RENT (SOURCE: JETRO SURVEY, MAY 2009) Land price, office Ha Noi HCMC Shanghai Hong Kong Singapore rent ($) Industrial land 0.119- 0.22 1.8-3.1 309.43 0.52-1.47 ( yearly, per sq.m) 0.142 (IPs) Office rent ( monthly, 27.5-73.2 82.5 64.7 28-132 36-65 per sq.m) Housing rent for Hanoi 2550 2,047- 1,805-3,868 2,672-4,342 16
    • VIPC Viet Investment Power foreigners(per tower: 4,386 month) 3600 International call charge 0.636 0.636 2.1-3.5 0.38-1.08 0.7-1.8 ( for 3 min. to Japan) Mobile phone 7.06 7.06 7.3 29 subscription fee - Internet connection 194.44 194.44 365.5 33 240.5 fee( per month) 3. PUBLIC UTILITY & TRANSPORTATION EXPENSES (SOURCE: JETRO SURVEY, MAY 2009) Public Utility Expenses - Ha Noi HCMC Shanghai Hong Kong Singapore Transportation fee ($) Electricity rate for 0.028- business use 0.028-0.103 0.09 0.12 0.147 0.103 ( per KWh) Water rate for business use ( per 0.292 0.59-1.4 0.22 4.6-11 1.39 cu.m) 17
    • VIPC Viet Investment Power Gas rate for Rate per Rate per kg: rate per MJ: business use ( per 0.25-0.28 0.135 kg: 0.9 0.9 0.026 cu.m) Regular gasoline 0.65 0.65 0.74 1.62 1.061-1.066 price (1 liter) Diesel oil price( 1 0.65 0.65 0.71 1.06 0.830 liter) 4. TAXATION (SOURCE: JETRO SURVEY, MAY 2009) Taxation Hanoi HCMC Shanghai Hong Kong Singapore Corporate income tax 28% 28% 25% 16.5% 18% Personal income tax rate 40% 40% 45% 15% 20% 0%, 5%, 0%, 5%, VAT 17% Nil 7% 10% 10% Tax on interest remitted to 10% 10% 10% Nil 10% Japan Tax on dividend remitted to 0% 0% 10% Nil Nil Japan 18
    • VIPC Viet Investment Power PART 2: FOREIGN INVESTMENT IN VIETNAM (INDIRECT INVESTMENT IN STOCK MARKET) FOREIGN INVESTMENT IN VIETNAM'S SECURITIES MARKET 19
    • VIPC Viet Investment Power I.FOREIGN INVESTMENT IN VIETNAM'S SECURITIES MARKET CONTENTS 1. Who are foreign investors? 2. What must a foreign investor do? 3. What must a foreign investor not do? 4. Making the investment 5. Appointment of a transaction representative 6. Engaging a local fund manager 7. Reporting 8. What's missing? (Fee, Tax) 1. WHO ARE FOREIGN INVESTORS?  Foreign citizens, including Viet Kieu (ie. overseas Vietnamese);  Entities established offshore o Branch offices in Vietnam o 100 per cent foreign-owned enterprises incorporated in Vietnam o Offshore investment funds o Vietnam domiciled investment funds with 100 per cent foreign ownership. 2. WHAT MUST A FOREIGN INVESTOR DO? Foreign investors who invest in listed and unlisted securities or participate in securities auctions in Vietnam must: 20
    • VIPC Viet Investment Power  Obtain and register a securities trading code (the Code) with the VSD – a foreign investor may have only one Code; and  Open an indirect investment capital account at any bank that is authorized to provide custody and foreign exchange services. If a foreign investor chooses to invest using a local fund manager then that fund manager will apply and register the Code for the investor. 3. WHAT MUST A FOREIGN INVESTOR NOT DO? A foreign investor's Code may be suspended or terminated if the investor:  Provides inaccurate or deceptive information in relation to the application for the Code or other information as required by the SSC;  Engages in illegal practices such as collusion, market manipulation or money laundering; or  Breaches foreign exchange regulations 4. MAKING THE INVESTMENT Three ways for a foreign investor to make securities investment in Vietnam: • The foreign investor directly carries out the transaction by instructing a securities company to place the order; • The foreign investor appoints a transaction representative to place the order for the foreign investor; or • The foreign investor engages a local fund manager to manage the foreign investor's securities investment. 21
    • VIPC Viet Investment Power 5. APPOINTMENT OF A TRANSACTION REPRESENTATIVE A foreign investor may appoint only one individual in Vietnam under a power of attorney  The attorney must hold a securities business practicing certificate issued by the SSC;  The attorney must not be an employee of any local securities company, fund management company or custodian bank; 6. ENGAGING A LOCAL FUND MANAGER  A local fund manager under an investment management agreement to carry out portfolio and asset management and make investment decisions for the foreign investor (including decisions in relation to the type of securities, volume, price and trading date)  A foreign investor may not engage any other individual or entity to carry out such management activities for the investor.  Vietnam representative offices of offshore funds which are currently carrying out these functions are doing so illegally. 7. REPORTING Securities companies, fund managers and transaction representatives are required to report periodically to the SSC on the securities transactions of the foreign investor using a standard form. 8. WHAT'S MISSING? 8.1 PERSONAL INCOME TAX ( FOR INDIVIDUAL) • 20 per cent of the net gain or • 0.1 per cent of the value of the securities transfer 22
    • VIPC Viet Investment Power 8.2 ENTERPRISE INCOME TAX (FOR INSTITUTE) • 0.1 per cent of the value of the securities transfer 8.3 CAPITAL INVESTMENT TAX (FOR INVESTOR) • 5 per cent of the net gain II.INVESTMENT ENTRUSTMENT PROCESS 23
    • VIPC Viet Investment Power III. FEE 1. FEE FOR INVESTMENT PORTFOLIO (VIPC): 2% Fee of asset annual NAV management 2. BROKER FEE (SECURITIES COMPANY): Transaction Broker 0,1% value fee 3. CUSTODIAN FEE AND ASSET KEEPING (CUSTODIAN BANK): Total value Fee on 0,01% of a transaction transaction 1/12 x Custodian NAV 0,06% fee 24
    • VIPC Viet Investment Power IV. TAX (MENTION ABOVE) 1. INDIVIDUALS (ONE OF THE FOLLOWING CASE) Personal Net gain income 20% tax the value of the 0,1 Personal income securities transfer % tax 2. ENTERPRISE INCOME TAX (MENTION ABOVE) 2.1 INSTITUTES the value of the Enterprise securities income tax transfer 0,1% 2.2 CAPITAL INVESTMENT TAX Capital Net gain 5% investm ent tax 25
    • VIPC Viet Investment Power PART 3: VIPC CAPITAL MANAGEMENT CORPORATION INVESTMENT HUB TO VIETNAM 26
    • VIPC Viet Investment Power I. OUR FIRM VIPC Capital Management or well known as VIPC Fund Management is an independent national licensed investment fund upon teamwork management and trustworthy pass relationships with investors. The legal entity shareholder of VIPC is Viet Vinh Phu Company, a highly reputation domestic and international financial investment organization. Together with Viet Vinh Phu Company, VIPC is established by individual investors who have comprehensive education and extensive experience in the world and Vietnamese financial and stock market. Standing on a strong foundation, VIPC’s shareholders now has the largest shares in Saigon Commercial Bank, major shares in Great Truong Son project and Khanh Hoi Sugar Joint Stock Company VIPC offers independent and institutional investors variety range of investment capacities to match with hundreds of professional value contacts and investment opportunities in one of the most attractive emerging markets, Vietnam in Real estate, Securities and Private Equity. Name VIPC CAPITAL MANAGEMENT CORPORATION Establishment January 23, 2009 VAT Number 0306790482 Fund management and investment portfolio management (Asset Business Scope management) Regulated Body State Securities Commission of Vietnam (SSC) Address No. 8, Nguyen Hue St. Dist 1, HCMC. Vietnam Tel (+84-8) 38277078 (+84-8) 38277079 Fax (+84-8) 38277487 27
    • VIPC Viet Investment Power URL www.vipc.com.vn Chartered Capital 33.000.000.000 VND 1. VIET VINH PHU INVESTMENT FINANCE CO., LTD 2. PARAGON CORP. (http://www.saigonparagon.com) Major Share Holders 3. Mr. Nguyen Xuan Tung 4. Mr. Doan Duc Vinh Ms. Vu Thi Toan Legal Consultant Vilaf Hong Duc Representative Director Mr. Nguyen Xuan Tung Mr. Nguyen Xuan Tung Chairman Mr. Nguyen Ho Nam Board Member Board of Directors Mr. Doan Duc Vinh Board Member Mr. Hoang Duc Hoa Board Member Ms. Vu Thi Toan Board Member Legal Consultant Vilaf Hong Duc Auditor AASCS Custodian Bank BIDV Bank Account Number BIDB000016 Asset under management VND ( Vietnamdong) 28
    • VIPC Viet Investment Power II.VIPC PRODUCTS & SERVICES 1. VIPC PRODUCT FAMILY 2. REAL ESTATE FUND (REF) 2.1 INVESTMENT OBJECTIVE Primarily Investment objective of VIPC Real Estate fund is by investing attractive projects at the early stages in Vietnam. The Fund will leverage its strong connected local networks and experience in property development and redevelopment of upscale residential, commercial and private projects to maximize an attractive overall return through diversified property portfolio. 29
    • VIPC Viet Investment Power 2.2 INVESTMENT STRATEGY To achieve a balanced risk-reward profile, the fund will be invested in three broad classes of companies: a. Projects, which are completed - this would comprise real estate assets, which are in use with established, high-quality tenants. Such asset class would typically denote steady income type characteristics. b. Projects in development stage - where the lead-time to commercial deployment is typically between one-three years, and the completed projects subsequently would have contractual off-take arrangements in place. c. Projects in the planning stage - where the lead-time to commercial deployment would be three-six years. These projects would offer the highest amount of return, although with a greater risk. 2.3 INVESTMENT PROCESS Stage 1 • Best locations/lands for investment activities nomination (Industry Screening) • Site visit initial evaluation for nominated projects (Site Inspections) • Geological studies for project locations ( Evaluation) Stage 2 Drafting of feasibility studies • Information of legal studies with 30
    • VIPC Viet Investment Power regards to real estate activities • Maintenance and management plan examination. • Real estate valuation (appraisal) services • Due diligence Stage 3 • Industrial real estate services • Real estate management (market price, market rent, rent collection and follow-up) • Real estate applications and process clearance • Loan collateral and loan transitions services • Loan implementation services • Mortgage services • Real estate segmentation services (apartments and condominiums) • Other real estate related services 2.4 WHY VIETNAM?  Vietnam’s economy and real estate sector in particular are high on its ride to prosperity. As Vietnam’s economic growth curve rises, real estate have emerged as one of the most appealing investment areas for domestic as well as foreign investors.  Maximum growth is attributed to its growth from the booming young populations, since an estimated 60 per cent of the new construction is for the newlywed’s family. 31
    • VIPC Viet Investment Power  Investment scenario has certainly undergone a paradigm shift in Vietnam, rental return from new residential apartment’s ranges from 8 to 10.5%, and that from commercial property in Vietnam metros is around 12-14%, one of the highest in the world.  According to the Emerging Trends in Real Estate® Asia Pacific 2010 Report published by PricewaterhouseCoopers LLP (PwC), Vietnam is ranked 3rd in the regional list of countries that are least impacted by global economic crisis in 2009 and 2010. Thus, Vietnam real estate market is a promising destination for stability-expected investment flows  The report also states that Ho Chi Minh City of Vietnam is ranked 3rd for development prospects in 2010 and highly graded in segment ranking. Besides, the city is projected to achieve the world highest average real growth rate of GDP in the period 2008-2025, reaching 7% per annum  Also marked in the report, HCMC average yields in grade A office, retail, residential and industrial segments in 2009 range from 11.5% to 14%- an outstanding outcome comparing to other Asia Pacific players. Hotel and retail hold the 2nd place while segments of industry; office and residential housing are respectively ranked as 4th, 6th and 7th in the list. 2.5 KEY FACTS  Selling and buying Vietnam property is now considered as the most profitable and attractive business opportunity in the present real estate scenario in ASEAN. User demands have added to strength of real estate markets across the commercial, residential and retail sectors in Vietnam, especially commercial property with exceeded supply for the past few years.  There has also been an upward swing on the real estate price values in the recent years. Due to the huge demand and rising prices, investment and speculative interest in real estate is growing while excess money supply, inflation and regular depreciation of VND to US$ are adding to the trend in favor of the real estate sector. 32
    • VIPC Viet Investment Power  In the last 2 years, the capital values of the commercial office spaces has increased by up to 25% owing to the increase in the demand from global business reallocation and domestic professional business sectors across major metros in Vietnam. - Factors Favoring Real Estate’s Investment, easy availability of housing finance, burgeoning income and better job prospects, increase of nuclear families have given a boost to the demand in Vietnam. The net yields (after accounting for all outgoings) on residential property are currently at 8-10.5 % p.a. However, these investments have benefited from the improving residential capital values. As such, investors can count on potential capital gains to improve their overall returns. Capital values in the residential sector have risen by about 40-200% p.a in the last 5 years.  The residential market in Vietnam has been growing due to increasing demand from retailers; higher disposable incomes. The capital appreciation in this sector is close to 20- 35% p.a. However, the risks associated with this sector are higher as retailers are prone to cyclical changes typical of a business cycle. Changing consumer behavior combined with increasing disposable incomes will ensure further growth of the retail sector in Vietnam  In the present day scenario, if there is any powerful investment tool that brings burgeoning financial returns, it is VIETNAM REAL ESTATE!!! Investors should consider the parameters minutely and meticulously to find out why investing in Vietnam real estate now is the best viable option. 33
    • VIPC Viet Investment Power 2.6 VIPC REAL ESTATE FUND STRUCTURE Investment manager VIPC Capital Investment advisor Dr. Markus Freiburghaus Minimum investment 200 million USD Term Vote every 5 years to wind up fund Initial unit price 5 USD Distribution At the end of investment Number of calls 100% investment up – front Withdrawal Not permitted during term (subject to charter fund) Auditor Ernst and Young / KPMG or Grant Thornson Custodian BIDV / Deutsche Bank Lawyer Vilaf Hong Duc Management fee 2% Investment manager VIPC Capital 34
    • VIPC Viet Investment Power Performance Fee Incentive fee of 20% of total increase of the NAV over a hurdle rate of 15 % annual returns with higher watermark and catch up. Fee & Tax See principal information section (www.vipc.com.vn ) 2.7 WHAT ARE THE BENEFITS VIPC’S REF BRING TO INVESTORS? Liquidity: When an investor invests directly in an individual property, buying and selling proves a complex, time-consuming process. By contrast, an investment in VIPC Real Estate Fund will be more readily converted into cash as these units will be traded on the stock exchange when funds fully allocated. Affordability: Real estate has traditionally been a sound investment option but remains limited to only a few as the amount of money required for investing in real estate directly is very high. VIPC REF will allow common investors to reap benefits of investment in real estate without putting in significant amounts. Professional management: Real estate investment in Vietnam is fraught with risks related to documentation, title of property, legal aspects and so on which would be mitigated in this scenario. REF would also provide new investment avenues to pension funds, endowment funds, insurance companies, thereby bringing the institutional investor into the ambit of the real estate market. This will further boost professionalism in the real estate sector. VIPC REF structure is an ideal instrument for propelling investments into real estate. It combines the best features of the real estate industry with other financial instruments, and gives 35
    • VIPC Viet Investment Power the investor a practical and efficient means for including professionally managed real estate in his investment portfolio. 3. PORTFOLIO MANAGEMENT SERVICES 3.1 VIPC PORTFOLIO MANAGEMENT SERVICE (PMS) OFFERS: Appointed Trust Agreement- we will follow your instruction and place your orders, we only act as an executor and clear your trades. Non Appointed Trust Agreement- a Managed Discretionary Account service and you hold your stock trading account with us, we will on be half of you to make investment decisions and clear all the trades for you. VIPC has 5 qualified investment managers to manage client assets in our PMS, on the basis of their expertise in managing fund portfolios. Based on a completed Investor Profile Questionnaire, investment manager of VIPC will review of individual financial situation, investment objectives, risk tolerance levels, planned investment time horizon, and recommend a long-term target portfolio strategy. We have six well-performed long term Portfolio Models being tested and fits to different risk appetites of investors. All our services are designed to help you to invest your money in a professionally managed portfolio using asset allocation principles. 3.2 INVESTMENT METHODOLOGY: When we identify a specific sector to target for investment, deeply research the space and identify actionable investment opportunities. Combines “top down-sectors” (evaluating and selecting sectors based on carefully considered investment theses) and “bottom up-individual stock” assigning a team of investment professionals to get to know, at a Granular Level. It is a targeted, proactive, repeatable process that we apply to more than 5 sectors of stocks and that is core value of our investment approach. This targeted process sometimes can take many years to identify the new stocks, but we believe that it enables us to produce high quality, proprietary investment opportunities in sectors where we face limited competition. As a result of 36
    • VIPC Viet Investment Power this process, more than two-thirds of the Discretionary Managed Account (DMA) and Portfolio Management Service (PMS) made by the VIPC since our establishment in 2009 have been internally generated. 3.3 PMS TERM Product PMS Term 1 - 5 years Minimum Investment US$100,000.00 Currency USD, AUD, EURO, SGD and JPY 37
    • VIPC Viet Investment Power Investment Objective To generate a stable return on an annual basic with strong emphasis on capital preservation Trading Fee 0.1% on each transaction Management Fee 2%/year Early Redemption Fee Negotiable Report Monthly/Quarterly Withdraw notice 1 month before 3.4 VIPC 6 PMS MODELS Name of Objectives Styles, risk and return Strategy, asset classes PMS and allocation VIPC VIPC 1 aims to VND denominated, selected Depends on economic Aggressive provide superior specific sectors by morning cycles, OTC & Listed Growth returns (before star with rigorous research to stocks in Vietnam stock HOSE & fees and taxes) target for high growth trading market ( 95 % HASTC over the long opportunities. allocation) stocks term through Risk: High capital growth, by investing in growth stocks. 38
    • VIPC Viet Investment Power Mainly consist of VND denominated, selected OTC and listed stocks in VIPC companies with great potential of capital Vietnam stock trading Growth above-average earnings stocks and invest to market 65% high growth, growth in asset classes with stable 30% High Dividend earnings that rein profit, while reserve some stocks, 5 % Cash. vest their cash in fixed income. earnings into Risk: Medium-High expansion, acquisitions, or research and development. Well balanced VND denominated, invest in OTC & Listed stocks in VIPC stable income and large cap with steady growth Vietnam stock trading Balance capital growth in and asset classes with an market ( 40 % high medium and fixed income. growth , 30 % large cap long-term Risk: Medium )Vietnam Commercial Bank Instruments (25%). Cash 5% Income from VND denominated, securities 40% in Large & Mid Cap VIPC dividends of big instrument qualified with with positive earnings & Conservative cap low volatility great potential of higher high dividend outlook , Balance with some return. While invests in large 20% High growth, while exposure to cap with positive earnings 35-40% in high income growth in outlook. bank instruments. medium and Risk: Medium-Low long-term. VIPC 5 invests VND denominated, steady 50% Banking instruments VIPC mostly in the incomes from different with superior returns Vietnam defensive assets banking instruments with including corporate bonds 39
    • VIPC Viet Investment Power High Income of cash and fixed return warranted. and debentures or bills, income, with Risk: Low 35% in large cap with some exposure to steady dividends, 10% growth assets. high growth, 5% in cash. Capital VND or USD denominated, An investment mixes VIPC conservation and including money market allocation 85% of highly Preservation well protected instruments, benchmarking to liquidated cash assets, from Inflation local inflation rate as a target such as VND, or USD. 10 return. % in large cap, 5% in high Risk: Very Low growth. 40
    • VIPC Viet Investment Power 3.5 PORTFOLIO ASSET ALLOCATION AND PERFORMANCE IN 2009 VIPC Aggressive Growth Fund Information Cash technology Coal& mineral mines 5% 6.80% Banking 6.80% 10.20% Plastic, 10.20% rubber& fiber 8.50% Securities 8.50% Construction materials & 4.30% steel 29.80% Consumer services Real estate & Construction 150.00% 125.00% 126.40% 100.00% 99.70% Fund return 75.00% 96.90% Hurdle rate 50.00% 70.30% Comparative return 25.00% 29.60% 29.30% 0.00% 6 months 12 months 41
    • VIPC Viet Investment Power VIPC Growth Fund Cash Information Petroleum distribution technology Banking Beers and Aquacultures 4.50% 5.00% 5.20% 7.80% 3.90% Foods Securities 5.70% 6.50% Pharmaceuticals 7.20% Petroleum exploration,8.70% 22.80% drilling & refining 5.20% 7.80% 6.50% 3.30% Real estate & Coal& mineral mines Construction Plastic, Consumer Construction services rubber& fiber materials & steel 150.00% 125.00% 121.80% 100.00% 97.40% Fund return 75.00% 96.90% Hurdle rate 50.00% 70.30% Comparative return 25.00% 24.90% 27.00% 0.00% 6 months 12 months 42
    • VIPC Viet Investment Power VIPC Balance Fund Information Cash technology Banking Securities Fixed income 5% 3.20% 4.80% 4.00% Real estate & 25.00% 14.00% Construction Consumer 2.00% services 4.00% 4.50% Construction 4.80% materials & steel Petroleum 3.90% 3.20% distribution 5.70% 8.70% 7.20% Plastic,rubber &fiber Beers & Aquacultures Coal& mineral mines Foods Pharmaceuticals Petroleum exploration, drilling & refining 100.00% 89.20% 75.00% 73.50% 73.90% Fund return 50.00% 62.80% Hurdle rate Comparative return 25.00% 16.20% 18.70% 0.00% 6 months 12 months 43
    • VIPC Viet Investment Power VIPC Conservative Balance Fund Securities Information Banking 2.00% Cash technology 1.60% 2.40% Real estate Consumer services & 7.00% 1.00% Construction materials & Fixed income 5% Constructio 2.00% steel n Plastic,rubber&fibe 2.40% Coal& r 1.60% mineral mines 35.00% Petroleum exploration, 11.60% drilling & refining 9.60% 6.00% 5.20% 7.60% Pharmaceuticals Petroleum distribution Beers & Foods Aquacultures 75.00% 73.90% 62.80% 63.40% 50.00% Fund return 48.70% Hurdle rate 25.00% Comparative return 14.20% 10.40% 0.00% 6 months 12 months 44
    • VIPC Viet Investment Power VIPC High Income Fund Information technology Banking Securities 0.50% Real estate & Construction 1% 1% 1.20% 0.80% 1.20% Consumer services 3.50% 0.80% Construction materials & steel 5% 10.20% Plastic,rubber and fibre Coal and mineral mines 8.40% 50% Petroleum exploration, drilling 6.70% and refining Pharmaceuticals 4.60% Foods Beers and Aquacultures 5.30% Petroleum distribution Fixed income Cash 60.00% 55.50% 49.10% 40.00% 49.10% Fund return 39.40% Hurdle rate 20.00% Comparative return 9.70% 6.40% 0.00% 6 months 12 months 45
    • VIPC Viet Investment Power Information technology VIPC Preservation Fund Banking 0.50% 0.50% Securities 0.30% 0.60% 1.80% Real estate & Construction 0.40% 1.90% 0.40% 0.60% 2.90% 1.30% Consumer services 2.40% 1.50% Construction materials & steel Plastic,rubber and fibre Coal and mineral mines Petroleum exploration, drilling 85% and refining Pharmaceuticals Foods Beers and Aquacultures Petroleum distribution Fixed income 25.00% 23.70% 20.00% 22.40% 20.40% 20.80% 15.00% Fund return Hurdle rate 10.00% Comparative return 5.00% 2.90% 1.90% 0.00% 6 months 12 months 46
    • VIPC Viet Investment Power 4. ADVISORY SERVICES 4.1 ABOUT OUR TEAM: Our team of seasoned analysts is a powerful tool that can provide you clarity, helping you understand how to best achieve your overall investing goals.  Assured that your plan goals and objectives coupled with our risk management can lead to improved performance.  Certain about having another fiduciary point of view when developing or evolving your investment policies.  Confident about your decisions by using our due diligence and evaluations of both public and private investment opportunities. 4.2 ADVANTAGES TO DEAL WITH US Greater independence  Our firm is staffed by independent consultants who select products that fit your specific investment goals - not the sales goals of a large, impersonal brokerage firm.  Have the flexibility & capacity to match the right investment product with each investor. These products have been reviewed by our investment committee and meet our stringent selection criteria.  We rely on local decision-making, internal research plus third party independent research.  We use a disciplined investment approach. Accountability  As a regulated Capital Management Firm in Vietnam, we are licensed by SSC. In addition to adhering to our independent auditing requirements, our investment officers regularly review the operation and investment best practices we have in place.  We have a legal obligation to place our clients’ interest first. 47
    • VIPC Viet Investment Power We are well connected local  VIPC has a strong well connected local network, such as Commercial Banks, major land banks, our real estate project focuses on commercial buildings, residential areas, service apartments, office buildings as well as new modern complexes providing all of the above services in one location.  We speak global investment languages, we understand business & your needs, we are local Vietnamese but with well perception of global investments, 50% of our staff received MBA degree and specialized in finance field with personal proven track record. 48