Vietnam construction, infrastructure and building materials

1
Vietnam construction, infrastructure and VVViiieeetttnnnaaammm cccooonnnssstttrrruuuccctttiiiooonnn,,, iiinnnfffrrraaassstttrrruuuccctttuuurrreee aaannnddd bbbbuuuuiiiillllddddiiiinnnngggg mmmmaaaatttteeeerrrriiiiaaaallllssss
I. EXECUTIVE SUMMARY
HHHHRRRRSSSS
Equity
Research
30 June
2007
VIETNAM is among the fastest growing sizeable economies in the world.
The country’s strong economic growth and recent infrastructural
developments provide many opportunities to both local and foreign
companies in construction and property. Rising affluence has led to an
increasing demand for residential and commercial infrastructure which
is fuelling a boom in the country’s construction and real estate industry.
In 2006 alone, the construction industry grew by a record 21%, driven by
increased public spending and private sector investments and bringing
the 5-year CAGR to 18%. We believe this growth will continue and will
benefit listed contractors, developers, building material manufacturers
and slew of companies currently actively investing in real estate.
One of the reasons for the increasingly dynamic development of the
country’s construction and real estate industries has been the State’s
adoption of guiding documents for the new Common Investment Law
and the Housing Law, creating a clear legal framework for the sector.
Also, Hanoi addressed one of the biggest challenges to real estate with
the new Housing Law which has helped fuel real estate transactions.
Vietnam has a land-use rights system and freehold is vested in the State,
as it is in China. Land-use rights are typically for up to 50 years, but in
the past transferring these was complicated and opaque. These leases
can now be registered and title documents transferred to the buyer.
Banks have even stepped in to provide mortgages and buyers can
actually borrow up to 50% of land value for 15 years. There is a greater
level of security and Vietnamese see this as a favorable investment
option and would have their money invested in property rather than
depositing in low-interest bank deposits.
Another reason was the country’s accession to the World Trade
Organization (WTO), which flung open the door for its financial market -
an important gateway for foreign investors to participate in the real
estate business. The government is aware of the rapid increase in
property prices and the importance the real-estate sector plays in
maintaining economic growth, thus, the government is now encouraging
foreign interests to join with local companies to bolster the sector. The
end result is that greater foreign investor involvement will make the
market more transparent, which should benefit consumers. In addition
co-operation between domestic and foreign firms in developing real
estate, which over the long term will improve the market's depth in terms
of quality and price range.
Of the 200 listed companies in Vietnam, there are currently 59
companies with their core business in construction and construction-related
activities. Together, they add up to more than 15% of the total
market capitalization. These numbers increase if we include companies
involved in other business lines that are actively investing in real estate.
We came across eight non-core construction companies with a minimum
market capitalization of US$30 million that have been heavily investing
into property in recent years, and we have highlighted them in this report.
Horizon Securities believes that construction and construction-related
companies will benefit from the buoyant growth in real estate,
infrastructure and construction. Horizon Securities has sought out these
companies and has highlighted some of them in this report.
Horizon Securities
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Head of Research
marcdjandji@horizonsecurities.com
+84.90.318.9687
PPPPhhhhuuuuoooonnnngggg LLLLeeee
Analyst
phuongle@horizonsecurities.com
KKKKhhhhooooiiii PPPPhhhhaaaammmm
Analyst
khoipham@horizonsecurities.com
Please refer to the important
disclosures and analyst certifications
at the end of this document.

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Figure 1. HRS CONDEX 500 INDEX1 Figure 2. HRS MATERIALS INDEX, HRS
CONSREAL INDEX, HRS INFRA. INDEX
5/4/2007
6/7/2007
7/3/2007
225.00
200.00
175.00
150.00
125.00
100.00
75.00
50.00
25.00
2/5/2007
3/1/2007
3/9/2007
4/4/2007
5/4/2007
6/7/2007
Horizon Securities has created the HRS CONDEX 500 to benchmark the
construction industry and assess its performance in relations to the
VNIndex and HaSTC Index. The index includes all listed companies in
construction, real estate, infrastructure, and building materials
manufacturing with a market capitalization of at least VND500 billion
(approx. US$30 million).
The CONDEX 500 has gained 51% since the beginning of this year,
outperforming both the VNIndex and the HaSTC Index by 15% and 40%
respectively.
Horizon Securities also built three sub-indices to benchmark separately
listed companies in construction & real estate, infrastructure, and
construction materials.
200.00
175.00
150.00
125.00
100.00
75.00
50.00
25.00
2/5/2007
3/1/2007
3/9/2007
4/4/2007
Figure 3. Sector Comparison
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7/3/2007
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&&&& RRRReeeeaaaallll eeeessssttttaaaatttteeee -5.46% 5.82 x 6.46 x 5.38 x 4.68 x 47.80 x 50.31 x 29.38 x 25.55 x 9.87 x 5.71 x 5.86 x
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Source: Company reports, Horizon Securities – forward looking numbers are based on 20% growth in 2007 and 15% growth in 2008
1 Horizon Securities clients can contact their account manager to get more information on how they can
invest in the same proportions set out in any of the HRS Indices.
0.00
1/2/2007
1/10/2007
1/18/2007
1/26/2007
2/13/2007
3/19/2007
3/27/2007
4/12/2007
4/20/2007
5/14/2007
5/22/2007
5/30/2007
6/15/2007
6/25/2007
HRS CONDEX VN-INDEX HaSTC INDEX
0.00
1/2/2007
1/10/2007
1/18/2007
1/26/2007
2/13/2007
3/19/2007
3/27/2007
4/12/2007
4/20/2007
5/14/2007
5/22/2007
5/30/2007
6/15/2007
6/25/2007
HRS MATERIALS INDEX HRS CONSREAL INDEX HRS INFRA. INDEX
VN-INDEX HaSTC INDEX
Source: Horizon Securities Source: Horizon Securities

3
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I. EXECUTIVE SUMMARY ..................................................................................................................................................1
II. VIETNAM CONSTRUCTION INDUSTRY.........................................................................................................................4
2.1 Introduction ..........................................................................................................................................................4
2.2 Housing Construction...........................................................................................................................................6
2.3 Infrastructure Construction..................................................................................................................................7
2.4 Commercial Construction ....................................................................................................................................9
III. INDUSTRY DYNAMICS...............................................................................................................................................13
IV. KEY INVESTMENT RISKS..........................................................................................................................................14
V. VIETNAM STOCK MARKET AND CONSTRUCTION.....................................................................................................15
5.1 Construction & Real estate companies ............................................................................................................19
5.2 Infrastructure companies ..................................................................................................................................24
5.3 Construction materials companies ...................................................................................................................28
5.4 Non-core real estate companies .......................................................................................................................33
Disclaimer ......................................................................................................................................................................44
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Figure 1. HRS CONDEX 500 INDEX ................................................................................................................................2
Figure 2. HRS MATERIALS INDEX, HRS CONSREAL INDEX, HRS INFRA. INDEX...........................................................2
Figure 3. Sector Comparison ..........................................................................................................................................2
Figure 4. Vietnam’s construction GDP is growing rapidly..............................................................................................4
Figure 5. Company Comparison......................................................................................................................................5
Figure 6. Rising urbanization level .................................................................................................................................6
Figure 7. Soaring housing market in Vietnam................................................................................................................6
Figure 8. Top 10 major apartment building projects in HCMC between 2007 – 2010..............................................7
Figure 9. Top 10 priority projects between 2005 – 2010 ............................................................................................8
Figure 10. Infrastructure financing.................................................................................................................................9
Figure 11. Grade A Office in HCMC...............................................................................................................................10
Figure 12. Grade B Office in HCMC ..............................................................................................................................10
Figure 13. Grade A Office Rents in Prime Asian Cities ................................................................................................10
Figure 14. Total Office Supply in HCMC .......................................................................................................................11
Figure 15. Total Office Supply in Hanoi ........................................................................................................................11
Figure 16. Major upcoming office developments........................................................................................................11
Figure 17. Major industrial developments between 2007 – 2010............................................................................12
Figure 18. Selling price per sqm of apartments downtown HCMC.............................................................................12
Figure 19. Selling price per sqm of apartments downtown Hanoi .............................................................................12
Figure 20. Building materials inflation close to peak..................................................................................................13
Figure 21. Construction costs in Vietnam are still lower than other Asian countries................................................13
Figure 22. Company comparison..................................................................................................................................15
Figure 23. Company comparisons................................................................................................................................16
Figure 24. HRS CONSREAL 500 INDEX ........................................................................................................................19
Figure 25. HRS INFRA. INDEX 500 ...............................................................................................................................24
Figure 26. HRS MATERIALS INDEX 500 .......................................................................................................................28
Figure 27. EBITDA margin (%) .......................................................................................................................................30
Figure 28. EBIT margin (%)............................................................................................................................................30
Figure 29. EV/Ton (US$) ...............................................................................................................................................30
Figure 30. EV/EBITDA (x)...............................................................................................................................................30

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II. VIETNAM CONSTRUCTION INDUSTRY
2.1 Introduction
After being hard hit by the financial crisis in 1997, Vietnam’s construction sector has
experienced a strong recovery. In 2006, the construction industry recorded a record
growth rate of 21%, taking the 5-year average growth rate to 18%. The construction
industry has become one of the driving forces of the economy. Nationwide, it currently
employs over two million people, and accounts for 6.6% of the country’s GDP.
The vibrant economic
growth, influx of foreign
companies and increasing
national wealth triggered
high demand for housing,
commercial, office building
and public infrastructures.
Vietnam has also
experienced a robust inflow
of foreign direct investment
into property sector vis-à-vis
increasing government
spending on public works.
Given the increasing supply
of housing and
infrastructure projects, we
believe the construction
industry will expand
Figure 4. Vietnam’s construction GDP is growing
rapidly
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: GSO
vigorously in the coming years.
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
The construction boom has created investment opportunity for both local and foreign
investors involved directly in construction or in construction-related sectors. There are
currently 59 companies involved directly in construction and construction-related
activities with a market capitalization greater than US$30mln. We have found eight
companies that have made substantial non-core investments into real estate. Horizon
Securities has been monitoring 17 of these companies based on market share and
capitalization.
Although the sector seems highly priced, we believe a deeper analysis of specific
companies would enable investors to find companies with aggressive expansion
programs and strong pipelines that can provide good upside to market. Horizon
Securities intends to follow up this preliminary report with such detailed equity reports
of individual companies.
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5
Figure 5. Company Comparison
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Tan Tao Industrial Park Corporation ITA 120,000 7,200,000 20.4% 38.72 x 33.67 x -20.1%
Song Da Urban & Industrial Zone Investment
and Development JSC SJS 315,000 6,300,000 16.7% 42.05 x 36.57 x 198.6%
Thu Duc House TDH 197,000 3,349,000 48.3% 32.97 x 28.67 x 269.6%
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HO CHI MINH CITY INFRASTRUCTURE
INVESTMENT JOINT STOCK COMPANY CII 67,000 2,010,000 49.0% 33.72 x 29.32 x -6.9%
Song Da No 10 Joint Stock Company SDT 139,000 834,000 7.4% 15.96 x 13.88 x 1.1%
Song Da No 9 Joint Stock Company SD9 63,500 444,500 1.7% 11.95 x 10.39 x -43.7%
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But Son Cement JSC BTS 45,500 4,095,000 6.9% 44.67 x 38.84 x 82.7%
Bim Son Cement JSC BCC 37,500 3,375,000 11.8% 37.05 x 32.21 x 55.6%
TAICERA Enterprise LTD Co. TCR 30,000 899,208 3.9% 12.38 x 10.77 x -43.7%
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FPT FPT 307,000 28,003,111 18.6% 41.83 x 36.37 x 123.4%
Refrigeration Electrical Engineering
Corporation REE 150,000 8,589,058 49.0% 30.89 x 26.86 x 169.8%
Kinh Do Corporation KDC 236,000 8,495,581 38.3% 39.82 x 34.63 x 57.1%
General Forwarding & Agency Corporation GMD 147,000 6,386,783 51.3% 31.85 x 27.70 x 202.5%
Sacom Cables & Telecom Materials JSC SAM 165,000 6,177,506 49.0% 24.25 x 21.09 x -9.5%
Saigon General Service Joint stock company SVC 85,000 1,094,240 0.2% 19.09 x 16.60 x -33.8%
Full Power Joint Stock Company FPC 58,500 877,500 4.3% 20.84 x 18.12 x -57.4%
Song Da International Manpower Supply &
Trading Joint stock corp. SDA 316,000 632,000 0.7% 31.62 x 27.50 x 22.5%
Source: Reuters, Horizon Securities, As at 29-Jun-2007

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2.2 Housing Construction
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Urbanization in Vietnam, like other developing nations, has contributed significantly to
housing demand. Vietnam’s urban population as a percentage of total population has
grown from 20.7% in 1995 to 27.1% in 2006. This represents an increase of over 5
million people currently living in urban areas compared to 1995. According to the
Ministry of Planning and Investment, the urban population is likely to reach 33.4 million
by 2010, and 46 million by 2020. Furthermore, Hanoi recently adopted a policy to
make it easier for migrant workers, coming into the cities, to change their residency
papers. The end result is that rapid urbanization levels will drive demand for housing,
and infrastructure development, especially in HCMC, Hanoi, Hai Phong and Da Nang.
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From 2000 to 2005,
total housing area in
Vietnam increased
dramatically, from
700sqm million to
990sqm million. The
average annual
increase in supply was
58sqm million which
represents a CAGR of
7.18%. During that
period, new housing
construction was four
times the total new
supply of the previous
Figure 6. Rising urbanization level
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006P
Source: GSO
decade. We expect housing construction will accelerate in the coming years, driven by
stable economic growth, increasing urbanization, and growth in disposable income.
Housing area per
person is 11sqm, still
lower than the average
of 14sqm in Asia Pacific
and 30sqm in
developed nations.
Hanoi has set a target
to reach 15sqm per
person for urban areas
and 14sqm per person
for rural areas by 2010.
Taking into account the
population growth and
current housing
disparity, we forecast
that there will be at
least of 60sqm million
Figure 7. Soaring housing market in Vietnam
1,200.0
1,000.0
800.0
600.0
400.0
200.0
0.0
CAGR = 7.18% pa.
1990 1995 2000 2005 2010
million sqm
Source: GSO, Nhan Dan News, Horizon Securities Estimates
of housing area built yearly for the next four years. The net result is that growth in the
housing sector will continue to be robust over the coming years.
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Substantial investments have been announced in the housing development. The major
upcoming residential developments include the construction of Tay Ho Tay (Western
West Lake) New Urban Town in Hanoi. This project will cover 847 hectares and have
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7
5,000 high-end condominiums at a total investment of over US$314 million. Once
completed the new town will be the financial and commercial center of Hanoi.
Another major project is the Hanoi City Complex worth US$115 million, comprising of
residential apartments, offices and trade centers. Coralis SA, of Luxemburg is the
developer.
In May 2007, the HCMC People’s Committee issued to the Korean GS E&C Corporation,
a license to build one of the largest residential developments in HCMC, larger even than
the Phu My Hung development. The Nha Be Metrocity GS will cover a total land area of
349,365 ha at a cost of US$1.6 billion. Other large-scale residential developments
include the Thanh My Loi B project worth US400 million and the Sai Gon Sport City
project worth US$130 million.
In June 2006, the Indochina Riverside Tower Company started the construction of an
office, commercial center and apartment complex in the heart of Da Nang. The project
worth US$27 million will span over a land area of 3,652sqm and will offer more than
32,082sqm floor area.
Figure 8. Top 10 major apartment building projects in HCMC between 2007 – 2010
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1 Saigon Castle n/a 2,500 240,000
2 Gia Hoa Gia Hoa Co., Ltd 1,800 172,800
3 Sky Garden Phu My Hung Corp. 1,500 144,000
4 Vinaconex - Thao Dien Vinaconex 1,305 125,280
5 Hoa Binh Dai Do Thanh Co., 1,020 97,920
6 New Saigon Hoang Anh Gia Lai Group 1,000 96,000
7
Tan Kien 584 high-rise
building Investment- Construction Co. 584 978 93,888
8 Estella Tien Phuoc Co. 900 86,400
9 Tahami Tan Hai Minh Ltd. 800 76,800
10 Phu Thanh – CIENCO 5 Investment- Construction Co. 585 784 75,264
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Source: CBRE, Horizon Securities
2.3 Infrastructure Construction
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Decades of war and economic recession left Vietnam’s infrastructure system
antiquated. The country is in dire need for infrastructure investment, and Hanoi
understands that fact. The latest statistics show that only 36% of the road network is
paved. In addition, the current power supply cannot bear the growth of the industrial
sector, and experts have warned that Vietnam may experience severe shortage of
energy in the next few years, if nothing is done immediately.
Hanoi has put infrastructure development on its priority list. The Government stated
that during the period of 2006 to 2010, Vietnam’s road system will be increased by
105,000km, up 52% as compared to the 69,000km of new supply which was built
during the previous five-year period. In total, the government plans to commit more
than US$34 billion in infrastructure investments from 2006 to 2010, which is the
double what was invested during the 2001 to 2005 period.
The net result is that civil engineering construction activity will benefit from the
government’s efforts to accelerate spending. Moreover, supported by the low base
effect, we expect continued strength in civil engineering orders throughout in the
coming years.
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8
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We observe a pick up of infrastructure spending in the economy, driven by strong
political will and ease of project financing. An urgency to ensure commercial viability is
now apparent throughout State policies, and is being reflected across sectors.
Figure 9. Top 10 priority projects between 2005 – 2010
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Thank Khe Mining &
Metallurgy Project Ha Tinh
4.5mln
tons/year 2007 - 2012 3,437.50
Dung Quat No.1 Oil
Refinery Plant Quang Ngai
6.5mln
tons/year 2001 - 2008 2,484.38
Son La Hydroelectric
Plant Son La 2400 MW 2005 - 2015 2,308.31
1-5 Aluminium Plant Dac Nong
1.9mln
tons/year 2006 - 2009 1,410.81
Mong Duong
Thermoelectric Plant Quang Ninh 1000 MW 2007 - 2010 1,200.00
Tycoon Group steel
ingots plant Quang Nghai
5mln
tons/year 2007 - 2017 1,032.50
Lai Chau
Hydroelectric Plant Lai Chau 1200 MW 2007 - 2014 865.38
Dawoo-Hoa Lac
Railways
Ha Noi - Ha
Tay 32km 2008 - 2012 750.00
Phu My No. 2
Fertilizer Plant
Ba Ria - Vung
Tau
800mln
tons/year 2006 - 2008 637.50
Nghi Son No. 1
Thermoelectric Plant Thanh Hoa 600 MW 2007 - 2011 627.38
Source: 5 years social economic plan 2005 – 2010, Horizon Securities
In addition to these projects there are three
important projects that should be noted; the North-
South Highway Project, the Hanoi-Ho Chi Minh
Express Railway and the Long Thanh International
Airport in Dong Nai Province.
According to the Japan International Cooperation
Agency (JICA), the Vietnam North-South Express
Railways will stretch over 1,600 km, connecting
Vietnam to the Trans-Asian Railways Network that
runs from Russia through China to South East Asia.
Upon completion, rail travel between Hanoi and
HCMC will take 10 hours instead of 29 hours
presently. Estimated cost total capital requirement
is US$33 billion, of which 70% will be for
infrastructure and the rest for equipment and
vehicles.
The North-South Highway worth US$12 billion is
another major transportation project. The full project is divided into smaller portions,
some of which have already begun construction. A number of domestic investment
groups offered to build BOT road projects or to purchase the toll-collection rights on
certain sections of the highway. In April 2006, the Bank of Investment and
Development of Vietnam (BIDV) announced it will cooperate with a joint venture
comprised of 11 local enterprises to bid for the first phase of the HCMC-Long Thanh-
Dau Giay Highway Project worth US$612 million.
The master plan for Long Thanh International Airport was officially approved in 2006.
Expected to be completed in 2010, the airport will span on an area of 5,000ha, with 4

VVVViiiieeeettttnnnnaaaammmm iiiissss sssseeeeeeeekkkkiiiinnnngggg mmmmoooorrrreeee ffffoooorrrreeeeiiiiggggnnnn
llllooooaaaannnnssss ttttoooo ffffiiiinnnnaaaannnncccceeee ffffoooorrrr iiiittttssss
iiiinnnnffffrrrraaaassssttttrrrruuuuccccttttuuuurrrreeee ddddeeeevvvveeeellllooooppppmmmmeeeennnnttttssss
9
runways, five terminals and concourses handling up to 80 to 100 million passengers
annually. The cargo terminal will be able to handle up to 5 million metric tones of goods
per year. The total estimated cost is US$7 billion, financed from the State and private
funds. Other major aviation projects are the Duong To-Phu Quoc International Airport,
the No. 2 Terminal of the Noi Bai Airport in Hanoi and the new Da Nang Terminal.
FFFFiiiinnnnaaaannnncccciiiinnnngggg iiiinnnniiiittttiiiiaaaattttiiiivvvveeeessss
In the past the Government relied mostly on the State budget and overseas
development assistance (ODA) to finance infrastructure projects. However, recently
Hanoi has outlined initiatives towards improving project financing for infrastructure, and
is taking steps to allow more private domestic and foreign participants via BOT or BOO
investments. A number of foreign-invested projects in ports, energy, water treatment,
and telecoms are waiting for government approval. Also, a number of mutual funds
have set up dedicated schemes for infrastructure projects in view of these changes. We
find that funds availability for the infrastructure segment, both domestic and overseas
have improved significantly
and believe that financing
will become more
institutionalized.
The Prime Minister recently
approved the bond issue of
US$1 billion in 2007 to
finance the Dung Quat
Refinery Plant, two
hydroelectricity plants and
some other major
infrastructure projects.
Hanoi and HCMC
authorities have so far this
year raised about VND2.5
trillion (US$156 million),
bringing the municipals’
Figure 10. Infrastructure financing
Private sector, 16%
Infrastructure users,
21%
State-owned banks,
Government bonds,
14%
1%
ODA, 37%
State Budget, 11%
Source: Mekong Research
outstanding bond debt to VND10 trillion (US$625 million).
The Ministry of Finance forecasts that in the near future Government-backed bonds will
attract about VND60-70 trillion (US$3.7-4.3 billion) annually. Debt instruments have
become popular to compensate shortages in the State budget and to mobilize capital
for national infrastructure projects.
2.4 Commercial Construction
OOOOffffffffiiiicccceeee mmmmaaaarrrrkkkkeeeetttt iiiinnnn HHHHCCCCMMMMCCCC aaaannnndddd HHHHaaaannnnooooiiii iiiissss oooonnnn tttthhhheeee ssssppppooootttt
The commercial property market has also seen a significant expansion in Vietnam since
the Asian financial crisis. From 2000 to 2005 more than 160,000 new enterprises were
established in Vietnam, triple the amount of companies established during the
preceding decade. However, very little supply of office space had been constructed
during that period, due to land use restrictions and the effect from the Asian crisis. The
net result is there is currently a serious demand-supply imbalance in high-end A and B
grade, office space.
MMMMoooorrrreeee tttthhhhaaaannnn 111166660000,,,,000000000000 nnnneeeewwww
ccccoooommmmppppaaaannnniiiieeeessss wwwweeeerrrreeee eeeessssttttaaaabbbblllliiiisssshhhheeeedddd
dddduuuurrrriiiinnnngggg 2222000000000000 – 2222000000005555

10
Figure 11. Grade A Office in HCMC Figure 12. Grade B Office in HCMC
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
50.00
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
US$
Vacancy Rate Rental Rate
60%
50%
40%
30%
20%
10%
0%
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
DDDDeeeemmmmaaaannnndddd ssssuuuuppppppppllllyyyy ddddiiiissssppppaaaarrrriiiittttyyyy ccccrrrreeeeaaaatttteeeess iiiinnnnvvvveeeessssttttmmmmeeeennnntttt ooooppppppppoooorrrrttttuuuunnnniiiittttiiiieeeessss ffffoooorrrr iiiinnnnvvvveeeessssttttoooorrrrssss
According to CBRE, in 2006 prime office rates in the CBD of HCMC and Hanoi, have
increase by more than 20% YOY. In 2005, HCMC ranked 51st most expensive city for
office rents in the world and 5th in Asia, after Hong Kong, Singapore, Mumbai and Seoul.
Rental rates per square meter of prime office space in HCMC and Hanoi range between
US$30-35 while the occupancy rate is almost 95%. It is forecasted that rents can
possibility reach US$50 per square meter within the next four years.
High rental
yields will
attract more
investments
into office
buildings. Many
international
property
developers
have already
invested in
Vietnam, these
include Bonday
Investment
(Hong Kong),
Chap Hua
(Hong Kong),
CapitaLand
60.00
50.00
40.00
30.00
20.00
10.00
(Singapore), Kepple Land (Sinagpore), and Kumho E&C (Korea). Local companies such
as Vietcombank, Bitexco, Khai Silk, REE, Hoa Binh, Kinh Do Corp., and Gemadept are
also getting on the bandwagon.
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
US$
Vacancy Rate Rental Rate
Source: CBRE Source CBRE
Figure 13. Grade A Office Rents in Prime Asian Cities
52.94
35.50
30.00
17.04
15.15 14.62 14.91
0.00
Singapore Ho Chi
Minh City
Ha Noi Bangkok Jarkarta Kuala
Lumpur
Manila
US$/sqm/month
Source: Jones Lang LaSalle
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HHHHaaaannnnooooiiii aaaarrrreeee aaaammmmoooonnnngggg tttthhhheeee hhhhiiiigggghhhheeeesssstttt iiiinnnn
AAAAssssiiiiaaaa

11
Figure 14. Total Office Supply in HCMC Figure 15. Total Office Supply in Hanoi
800,000
700,000
600,000
500,000
sqm
400,000
300,000
200,000
100,000
0
2003 2004 2005 2006 2007E 2008E 2009E 2010E
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2003 2004 2005 2006 2007E 2008E 2009E 2010E
sqm
Existing supply New supply
Source: CBRE Source: CBRE
Existing supply New supply
Current office supply in HCMC and Hanoi stands at 439,000sqm and 118,000sqm.
Considering what is already in the pipeline CBRE estimates that by 2010 total office
supply will have tripled in HCMC to 1,249,000sqm and will have doubled in Hanoi to
almost 447,000sqm. Office space growth will be mainly in grade B and C type buildings.
By 2020, , with the completion of the Thu Thiem New Urban Area in HCMC, and the Tay
Ho Tay New Urban Area in Hanoi, total supply is expected to reach as much as five
times the current supply.
Figure 16. Major upcoming office developments
NNNNoooo.... PPPPrrrroooojjjjeeeecccctttt DDDDeeeevvvveeeellllooooppppeeeerrrr TTTToooottttaaaallll arrrreeeeaaaa ((((ssssqqqqmmmm))))
1 Financial Tower Bitexco 110,000
2 Finance-Banking Tower BIDV 100,000
3 Vietcombank Tower
Vietcombank -
Bonday - Ben
Thanh
77,000
4 Saigon M&C Tower Saigon M&C 36,000
5 Saigon Paragon Khaisilk - Thuy Loc 34,000
6 Intresco Building Intresco 34,000
7 Kumho Asiana Plaza Kumho E&C 32,000
8 Times Square Larkhall – Savico 31,000
9 Saigon Pearl SSG 30,000
10 Centec Tower SPN 25,000
TTTToooottttaaaallll 555500009,,,,000000000000
Source: CBRE, Horizon Securities
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We see the demand for construction of retail and industrial property also significantly
expanding in the coming years, driven by high occupancy and rental rates. In the next
four years, there will be more than 200,000sqm of retail space constructed, mostly in
HCMC and Hanoi.
A list of 33 industrial projects for 2006-2010, totaling US$440 million, was approved by
the Prime Minster. Most of these major industrial developments will happen in the
South of Vietnam, due to land availability and infrastructure quality.
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ssssiiiiggggnnnniiiiffffiiiiccccaaaannnnttttllllyyyy dddduuuueeee ttttoooo ddddiiiissssppppaaaarrrriiiittttyyyy
bbbbeeeettttwwwweeeeeeeennnn ddddeeeemmmmaaaannnndddd aaaannnndddd ssssuuuuppppppppllllyyyy
12
Figure 17. Major industrial developments between 2007 – 2010
PPPPrrrroooojjjjeeeecccctttt LLLLooooccccaaaattttiiiioooonnnn
TTTToooottttaaaallll
aaaarrrreeeeaaaa
((((hhhhaaaa))))
iiiinnnnvvvveeeessssttttmmmmeeeennnntttt
((((bbbbllllnnnn VVVVNNNNDDDD))))
iiiinnnnvvvveeeessssttttmmmmeeeennnntttt
(mmmmllllnnnn UUUUSSSS$$$$)
Duc Hoa III Industrial zone Long An 987 1,974 123.38
My Yen-Tan Buu-Long Hiep
Industrial zone (Ben Luc) Long An 411 822 51.38
Thanh Duc Industrial zone Long An 330 660 41.25
Thuan Dao Industrial zone
(expansion) Long An 300 600 37.50
Tan Kim Industrial zone
(expansion) Long An 300
600
37.50
Tan Duc Industrial zone
(expansion) Long An 296
592
37.00
Soai Rap Industrial zone Tien Giang 289 578 36.13
Binh Minh Industrial zone Vinh Long 162 324 20.25
Tran De Industrial zone Soc Trang 138 276 17.25
Nhat Chanh Industrial zone Long An 122 244 15.25
Cau Tram Industrial zone
(Câu Rc) Long An 78
156
9.75
Tra Kha Industrial zone Bac Lieu 66 132 8.25
Tan Huong Industrial zone
(expansion) Tien Giang 59
118
7.38
Source: Horizon Securities
HHHHoooouuuusssseeee pppprrrriiiicccceeeessss iiiinnnnccccrrrreeeeaaaasssseeee
Selling price per square meter for downtown condominiums in HCMC and Hanoi have
reached US$1,000 to US$3,000. Some residential projects have experienced capital
appreciation of more than 60% since launching.
Figure 18. Selling price per sqm of
apartments downtown HCMC
Figure 19. Selling price per sqm of
apartments downtown Hanoi
3,500
2,800
2,300
1,800
1,500
1,300 1,250
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
The
Lancaster
The Avalon The Manor Indochina
Park Tower
Saigon
Pearl
Horizon
Tower
River
Garden
US$/sqm
1,800
1,600
1,500
1,200
800 800
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Pacific Place Golden West
Lake
The Manor Hoa Binh Int'l
Towers
Chelsea Park Ciputra
US$/sqm
Source: CBRE Source: CBRE
Goooovvvveeeerrrrnnnnmmmmeeeennnntttt lllloooooooosssseeeennnnssss pppprrrriiiicccceeee ccccoooonnnnttttrrrroooollll oooonnnn bbbbuuuuiiiillllddddiiiinnnngggg mmmmaaaatttteeeerrrriiiiaaaallllssss
In response to record inflation of building material prices, the Ministry of Construction
issued a circular in 2005 to implement government controls over prices. As a result, in
2006 inflation of building material was reduced to 5.9% from 9.8% in 2005, lower than
the average country inflation. This helped construction and property companies
increase their profit margins during 2006.
Although building material prices were stabilized in past, the input cost environment is
currently clearly bearish. The trend in rising input costs has been accentuated by the
removal of preferential coal and electricity pricing for the cement and steel industries.
Since the beginning of the year steel prices have gained more than 20%, while cement
increased by at least 5%. Cement prices are bound to increase even more as cement
players have been suffering from the rise in manufacturing costs. Based on our
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ccccoooonnnnttttrrrroooollll oooovvvveeeerrrr bbbbuuuuiiiillllddddiiiinnnngggg mmmmaaaatttteeeerrrriiiiaaaallllssss

13
meetings with industry experts, we believe that the Vietnam Cement Corporation will
continue to push for price rises to avoid domestic entities risking failure. The net result
is that higher production costs for cement and steel will continue to affect building
material prices. As a result, we expect construction companies to experience higher
input costs for building materials.
Figure 20. Building materials inflation close to
peak
Figure 21. Construction costs in Vietnam are
still lower than other Asian countries
10.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
-
10 /02
02 /03
06/03
10 /03
02 /04
06/04
10 /04
02/05
06/05
10 /0 5
02/06
06/06
10 /06
02/07
06/07
1,419
664 669
549
634 674
565
627 614
1,600
1,400
1,200
1,000
800
600
400
200
0
S hang hai
Hong Ko ng
B eijing
Guangzhou/Shenz en
Bangk ok
K ualalum pur
Manila
Jakarta
HCMC
U S $
Source: GSO Source: Jones Lang LaSalle
III. INDUSTRY DYNAMICS
With over 3,500 construction and property companies in Vietnam – including 270
foreign-invested enterprises (FIE) – worth more than US$3.5 billion, competition in the
industry is fierce. The largest construction companies are still state-owned and benefit
from their relationships when it comes to winning bids. However, many of these
companies are running huge losses and the government is taking steps to privatizing
them.
Although there is no shortage of land, high capital requirements and the complexity
involved in getting a business license act as a barrier to entry. In addition, the process
of land transfers and ownership is quite opaque. Land owners in Vietnam generally
have stronger bargaining power over developers. The net result is that land acquisition
is complex, and speculation could drive up land prices significantly.
We see the core construction segment as having exciting growth opportunities. We
believe that this calls for increased management bandwidth in terms of managing new
growth verticals (hydropower, urban infrastructure, railways, etc), new geographies,
increased project size and threat on margins. With many companies also diversifying
into real estate development and infrastructure developers, one of the key challenges
in our opinion is to manage the transition, given the already stretched management
bandwidth. This is because, each of these new verticals has its own specific risks:
infrastructure development – interest rates, execution, project financing, etc and real
estate – land purchase, project development, financing, marketing, etc.
The recent boom in real estate has attracted many companies, and currently many
listed companies have made substantial non-core investments in real estate. We have
highlighted these companies and want to bring investors attention on their activities.

14
IV. KEY INVESTMENT RISKS
Anyone investing in construction real estate, infrastructure, and building materials
must be aware of some key inherent risks in the market:
LLLLoooowwww ttttrrrraaaannnnssssppppaaaarrrreeeennnnccccyyyy iiiinnnn tttthhhheeee rrrreeeeaaaallll eeeessssttttaaaatttteeee mmmmaaaarrrrkkkkeeeett. Jones Lang LaSalles ranks
Vietnam at an “opaque” transparency level. Although there have been
considerable improvement in the law, Vietnam current land and property laws
still do not provide clear guidance on issues related to the legal nature and
rights of land ownership and usage, and lack implementation mechanisms and
procedures for land distribution and transfers. Furthermore, lack of
transparency in the real estate market and procedures to license projects in
Vietnam remain very complicated and time consuming.
LLLLaaaannnndddd aaaaccccqqqquuuuiiiissssiiiittttiiiioooonnnn iiiissssssssuuuueeee. All Vietnamese property companies have land
acquisition concerns, as land owners have greater bargaining power.
Speculation on land prices only adds to the concern of the acquisition cost
potentially being driven upward. Moreover, although a property company might
possess a large land bank, the locations may be scattered and do not form one
parcel of land.
IIIInnnntttteeeennnnsssseeee ccccoooommmmppppeeeettttiiiittttiiiioooonnnn. Vietnam’s property sector is highly fragmented, with
around 3,500 construction and property companies. Although, there is still
currently a lack of supply, intense competition among developers could affect
their ability to raise selling prices in the future.
LLLLaaaacccckkkk ooooffff eeeexxxxppppeeeerrrriiiieeeennnncccceeee aaaannnndddd ssssccccaaaalllleeee ooooffff nnnneeeewwww eeeennnnttttrrrraaaannnnttttssss. There seems to be too much
capital going after a limited base of good quality real estate prospects. It is
expected that the bigger players, who bid more aggressively for the accretive
projects, will win the deals. The downside is that the smaller players will end up
with lower quality investments, increasing their risks even further. Also,
although the more experienced property developers may be aware and
knowledgeable in dealing with land use rights issues, the lack of transparency
and the involvement of government officials make the process complex and
time consuming.
PPPPrrrroooojjjjeeeecccctttt rrrriiiisssskkkk. Larger projects which rely on pre-sale launches are exposed to
rising construction costs and overhead expenses over the construction period.
As building material prices have increased considerably since the beginning of
this year, we could see pressure on margins while developers may not be able
to raise their prices. In addition, projects delays could be costly as well, as they
increase overall construction costs.

15
V. VIETNAM STOCK MARKET AND
CONSTRUCTION
Of the 200 listed companies in Vietnam, there are currently 59 companies with their
core business in construction and construction related activities. Together, they add up
to more than 15% of the total market capitalization. As could be expected, the larger
companies are involved in real estate and industrial park development, while the pure
play construction services companies are relatively small.
In recent years, real estate has attracted many investors and we have seen many non-real
estate companies making sizeable investments in real estate development. Of the
listed companies with a market capitalization of at least VND500 billion (US$30 million),
we came across eight companies that have been actively investing in property in recent
years, and have highlighted them in this report.
Although the sector seems highly priced, we believe a deeper analysis of specific
companies would enable investors to find companies with aggressive expansion
programs and strong pipelines that can provide good upside to market. This type of
analysis will require a comprehensive study of the firm’s activities, land bank, and
pipeline of projects and is not the objective of this report. Horizon Securities intends to
follow up this preliminary report with such detailed equity research of individual
companies.
Figure 22. Company comparison
NNNNaaaammmmeeee TTTTiiiicccckkkkeeeerrrr PPPPrrrriiiicccceeee MMMMaaaarrrrkkkkeeeetttt CCCCaaaapppp
oooowwwwnnnneeeerrrrsssshhhhiiiipppp PPPP////EEEE
cccchhhhaaaannnnggggeeee
CCCCOOOONNNNSSSSTTTTRRRRUUUUCCCCTTTTIIIIOOOONNNN RRRREEEEAAAALLLL EEEESSSSTTTTAAAATTTTEEEE ((((VVVVNNNNDDDD))))
((((MMMMiiiilllllllliiiioooonnnn
VVVVNNNNDDDD)))) ((((%%%%)))) 2222000000007777EEEE 2222000000008888EEEE 3333MMMMtttthhhhssss
Tan Tao Industrial Park Corporation ITA 120,000 7,200,000 20.4% 38.72 x 33.67 x -20.1%
Song Da Urban Industrial Zone Investment
and Development JSC SJS 315,000 6,300,000 16.7% 42.05 x 36.57 x 198.6%
Thu Duc House TDH 197,000 3,349,000 48.3% 32.97 x 28.67 x 269.6%
IIIINNNNFFFFRRRRAAAASSSSTTTTRRRRUUUUCCCCTTTTUUUURRRREEEE
HO CHI MINH CITY INFRASTRUCTURE
INVESTMENT JOINT STOCK COMPANY CII 67,000 2,010,000 49.0% 33.72 x 29.32 x -6.9%
Song Da No 10 Joint Stock Company SDT 139,000 834,000 7.4% 15.96 x 13.88 x 1.1%
Song Da No 9 Joint Stock Company SD9 63,500 444,500 1.7% 11.95 x 10.39 x -43.7%
BBBBUUUUIIIILLLLDDDDIIIINNNNGGGG MMMMAAAATTTTEEEERRRRIIIIAAAALLLLSSSS
But Son Cement JSC BTS 45,500 4,095,000 6.9% 44.67 x 38.84 x 82.7%
Bim Son Cement JSC BCC 37,500 3,375,000 11.8% 37.05 x 32.21 x 55.6%
TAICERA Enterprise LTD Co. TCR 30,000 899,208 3.9% 12.38 x 10.77 x -43.7%
NNNNOOOONNNN-CCCCOOOORRRREEEE CCCCOOOONNNNSSSSTTTTRRRRUUUUCCCCTTTTIIIIOOOONNNN
Refrigeration Electrical Engineering
Corporation REE 150,000 8,589,058 49.0% 30.89 x 26.86 x 169.8%
FPT FPT 307,000 28,003,111 18.6% 41.83 x 36.37 x 123.4%
Kinh Do Corporation KDC 236,000 8,495,581 38.3% 39.82 x 34.63 x 57.1%
Sacom Cables Telecom Materials JSC SAM 165,000 6,177,506 49.0% 24.25 x 21.09 x -9.5%
General Forwarding Agency Corporation GMD 147,000 6,386,783 51.3% 31.85 x 27.70 x 202.5%
Saigon General Service Joint stock company SVC 85,000 1,094,240 0.2% 19.09 x 16.60 x -33.8%
Full Power Joint Stock Company FPC 58,500 877,500 4.3% 20.84 x 18.12 x -57.4%
Song Da International Manpower Supply
Trading Joint stock corp. SDA 316,000 632,000 0.7% 31.62 x 27.50 x 22.5%
Source: Reuters, Horizon Securities, Dated 29-Jun-2007, forward looking numbers are based on 20% growth in 2007 and
15% growth in 2008

16
Figure 23. Company comparisons
TTTTiiiicccckkkkeeeerrrr PPPPrrrriiiicccceeee MMMMaaaarrrrkkkkeeeetttt CCCCaaaapppp
oooowwwwnnnneeeerrrrsssshhhhiiiipppp
PPPPrrrriiiicccceeee ttttoooo
ssssaaaalllleeeessss PPPP////EEEE PPPP////BBBBVVVV
CCCCOOOONNNNSSSSTTTTRRRRUUUUCCCCTTTTIIIIOOOONNNN RRRREEEEAAAALLLL EEEESSSSTTTTAAAATTTTEEEE ((((VVVVNNNNDDDD)))) ((((MMMMiiiilllllllliiiioooonnnn VVVVNNNNDDDD)))) ((((%%%%)))) 2222000000006666 2222000000007777EEEE 2222000000008888EEEE 2222000000006666 2222000000007777EEEE 2222000000008888EEEE 2222000000006666 QQQQ1111 2222000000007777
Tan Tao Industrial Park Corporation ITA
120,000 7,200,000 20.4% 20.41 x 17.01 x 14.79 x 48.40 x 40.33 x 35.07 x 12.61 x 6.48 x
Song Da Urban Industrial Zone Investment and Development JSC SJS
315,000 6,300,000 16.7% 18.74 x 15.62 x 13.58 x 52.57 x 43.81 x 38.09 x 11.61 x 11.06 x
Thu Duc House TDH
197,000 3,349,000 48.3% 23.10 x 19.25 x 16.74 x 41.21 x 34.34 x 29.86 x 6.07 x 6.00 x
Hoa Binh Construction Real Easte Corp. HBC
121,000 682,439 4.5% 3.32 x 2.77 x 2.41 x 75.46 x 62.88 x 54.68 x 9.84 x 9.26 x
Cho Lon Real Estate JSC RCL
252,700 379,050 0.4% 5.12 x 4.27 x 3.71 x 40.11 x 33.43 x 29.07 x N/A 10.79 x
Viet Nam Construction Joint Stock Company No.2 VC2
153,900 307,800 0.4% 0.78 x 0.65 x 0.57 x 14.59 x 12.16 x 10.57 x 6.11 x 5.62 x
Underground Works Construction JS Company - VINAVICO CTN
58,500 175,500 0.6% 0.64 x 0.53 x 0.46 x 22.91 x 19.09 x 16.60 x 3.26 x 3.63 x
Song Da Investment - Development Joint-Stock Corp. SIC
41,000 90,200 0.6% 2.73 x 2.27 x 1.98 x N/A N/A N/A 2.35 x 2.32 x
Investment and construction joint stock company no1 MCO
70,000 77,000 0.6% 0.77 x 0.64 x 0.56 x 33.96 x 28.30 x 24.61 x 5.49 x 3.76 x
Construction and mechanical joint stock company No 1 CMC
53,100 80,712 0.3% 4.67 x 3.89 x 3.39 x 28.10 x 23.42 x 20.36 x 4.57 x 3.94 x
COTEC Investment and Construction Joint Stock Company CIC
45,900 50,995 1.4% 0.65 x 0.54 x 0.47 x 18.20 x 15.16 x 13.19 x 4.30 x 5.10 x
Binh Trieu Construction Engineering JSC BTC
32,300 43,647 2.3% 2.42 x 2.02 x 1.76 x N/A N/A N/A 6.09 x 6.04 x
Construction and infrastructure development joint stock corporation CID
23,000 12,443 4.0% 0.61 x 0.51 x 0.44 x 12.28 x 10.24 x 8.90 x 1.89 x 2.20 x
SSSSeeeeccccttttoooorrrr aaaavvvveeeerrrraaaaggggeeee 1111,,,,444444442222,,,,222211114444 7777....11117777 xxxx 5555....97777 xxxx 5555....11119 xxxx 33335555....22225555 xxxx 22229....33338888 xxxx 22225555....55555555 xxxx 6666....11118888 xxxx 5555....88886666 xxxx
Source: Reuters, Horizon Securities, Dated 29-Jun-2007, forward looking numbers are based on 20% growth in 2007 and 15% growth in 2008

17
Figure 23. Company comparisons (cont’d)
oooowwwwnnnneeeerrrrsssshhhhiiiipppp
PPPPrrrriiiicccceeee ttttoooo
ssssaaaalllleeeessss PPPP////EEEE PPPP////BBBBVVVV
IIIINNNNFFFFRRRRAAAASSSSTTTTRRRRUUUUCCCCTTTTUUUURRRREEEE ((((VVVVNNNNDDDD)))) ((((MMMMiiiilllllllliiiioooonnnn VVVVNNNNDDDD)))) ((((%%%%)))) 2222000000006666 2222000000007777EEEE 2222000000008888EEEE 2222000000006666 2222000000007777EEEE 2222000000008888EEEE 2222000000006666 QQQQ1111 2222000000007777
But Son Cement JSC BTS 45,500 4,095,000 6.9% 6.79 x 5.66 x 4.92 x 55.84 x 46.53 x 40.46 x 4.19 x 4.11 x
Bim Son Cement JSC BCC 37,500 3,375,000 11.8% 3.41 x 2.84 x 2.47 x 46.31 x 38.59 x 33.56 x 3.49 x 3.40 x
Taicera Enterprise LTD Co. TCR 30,000 899,208 3.9% 1.33 x 1.11 x 0.96 x 15.48 x 12.90 x 11.21 x 1.74 x 1.70 x
Ho Chi Minh City Metal Corporation HMC 47,000 742,600 0.8% 0.42 x 0.35 x 0.31 x 33.75 x 28.12 x 24.45 x 4.09 x 4.28 x
Chau Thoi Concrete Corporation No.620 BT6 56,000 560,000 49.0% 1.20 x 1.00 x 0.87 x 17.84 x 14.87 x 12.93 x 1.20 x 1.95 x
Tung Kuang Corporation TKU 34,800 114,209 49.0% 0.18 x 0.15 x 0.13 x 32.07 x 5.17 x 4.50 x 0.50 x 0.48 x
Viet Nam - Italy Steel Joint Stock Company VIS 46,000 460,000 0.2% 0.36 x 0.30 x 0.26 x 30.23 x 25.19 x 21.91 x 3.96 x 4.25 x
Dongnai Roofsheet Construction Material Joint stock Company DCT 32,700 395,583 0.9% 2.34 x 1.95 x 1.70 x 13.75 x 11.46 x 9.96 x 2.47 x 2.50 x
SMC Investment - Trading Joint Stock Company SMC 51,000 382,497 4.4% 0.20 x 0.17 x 0.15 x 16.92 x 14.10 x 12.26 x 3.75 x 3.66 x
Nam Viet Joint Stock Company NAV 117,000 292,500 4.4% 1.66 x 1.39 x 1.21 x 15.75 x 13.12 x 11.41 x 7.19 x 5.94 x
Chang Yih Ceramic Joint Stock Company CYC 17,000 153,789 4.7% 1.02 x 0.85 x 0.74 x N/A N/A N/A 1.44 x 1.44 x
Viglacera thanglong ceramic tiles joint – stock company TLT 72,100 129,780 0.1% 0.37 x 0.30 x 0.26 x 10.67 x 8.89 x 7.73 x 3.92 x 3.96 x
Bim Son Packaging Joint-Stock Company BPC 36,000 136,800 1.0% 1.02 x 0.85 x 0.74 x 17.30 x 14.42 x 12.54 x 2.23 x 2.12 x
DIC Investment and Trading Joint Stock Company DIC 38,000 121,600 1.0% 0.28 x 0.23 x 0.20 x 14.10 x 11.75 x 10.22 x 2.30 x 2.43 x
Gypsum and cement Joint Stock Com. TXM 30,000 105,000 0.0% 0.37 x 0.31 x 0.27 x 10.94 x 9.12 x 7.93 x 2.34 x 2.24 x
Lam Dong Building Materials Joint Stock Company LBM 65,000 106,545 1.4% 1.19 x 1.00 x 0.87 x 19.41 x 16.18 x 14.07 x 4.06 x 5.46 x
Phu Phong Corporation PPG 27,000 108,000 3.9% 0.44 x 0.37 x 0.32 x 20.75 x 17.29 x 15.04 x 2.06 x 2.03 x
Material, Transportation Cement Joint Stock Company VTV 40,000 100,000 0.6% 0.27 x 0.23 x 0.20 x 51.92 x 43.26 x 37.62 x 3.96 x 3.76 x
Thanh Thanh Ceramic Tile Joint Stock Company TTC 26,400 105,389 3.3% 0.38 x 0.32 x 0.28 x 13.87 x 11.56 x 10.05 x 2.25 x 2.26 x
Vitaly Joint Stock Company VTA 28,500 114,000 0.7% 0.36 x 0.30 x 0.26 x 48.11 x 40.09 x 34.86 x 2.58 x 2.56 x
Nhi Hiep Brick-tile JSC NHC 50,000 66,281 2.8% 1.74 x 1.45 x 1.26 x 10.58 x 8.82 x 7.67 x 3.54 x 3.55 x
ButSon Cement Packing JSC BBS 21,500 64,500 0.5% 0.75 x 0.63 x 0.54 x 12.22 x 10.18 x 8.85 x 1.71 x 1.71 x
Songda Cement Joint-Stock Company SCC 30,000 59,400 0.8% 1.05 x 0.87 x 0.76 x 10.44 x 8.70 x 7.56 x 1.55 x 1.52 x
Dongnai Paint Corporation SDN 45,000 51,300 3.9% 1.14 x 0.95 x 0.82 x 20.92 x 17.43 x 15.16 x N/A N/A
Song Da Yaly Cement Joint Stock Company SDY 29,900 44,850 0.4% 0.24 x 0.20 x 0.17 x 18.51 x 15.42 x 13.41 x 1.55 x 1.65 x
Hoa Phat Construction Stone Joint stock Company HPS 20,500 32,088 0.4% 3.02 x 2.51 x 2.19 x 21.40 x 17.83 x 15.51 x 1.63 x 1.72 x
Viglacera Tu Son ceramic joint stock company VTS 26,200 26,200 0.8% 0.79 x 0.66 x 0.57 x 5.95 x 4.96 x 4.31 x 1.74 x 1.94 x
Viglacera Ba Hien JSC BHV 20,000 18,000 0.0% 0.54 x 0.45 x 0.39 x 11.13 x 9.28 x 8.07 x 1.60 x 1.56 x
Ðong Anh Ceramic Joint - Stock Company DAC 20,000 15,000 0.6% 0.66 x 0.55 x 0.48 x 13.93 x 11.61 x 10.10 x 1.35 x 1.48 x
HA LONG I - VIGLACERA HLY 32,000 16,000 0.3% 0.50 x 0.42 x 0.36 x 12.85 x 10.71 x 9.31 x 2.18 x 2.37 x
Rông Triêu - Viglacera JSC DTC 26,000 13,000 0.1% 0.27 x 0.23 x 0.20 x 8.86 x 7.38 x 6.42 x 1.78 x 1.72 x
SSSSeeeeccccttttoooorrrr aaaavvvveeeerrrraaaaggggeeee 444411116666,,,,222266662222 1111....11111111 xxxx 0000....92222 xxxx 0000....88880000 xxxx 22221111....00006666 xxxx 11116666....88883333 xxxx 11114444....66664444 xxxx 2222....66661111 xxxx 2222....66666666 xxxx

18
Figure 23. Company comparisons (cont’d)
oooowwwwnnnneeeerrrrsssshhhhiiiipppp PPPPrrrriiiicccceeee ttttoooo ssssaaaalllleeeessss PPPP////EEEE PPPP////BBBBVVVV
BBBBUUUUIIIILLLLDDDDIIIINNNNGGGG MMMMAAAATTTTEEEERRRRIIIIAAAALLLLSSSS ((((VVVVNNNNDDDD)))) ((((MMMMiiiilllllllliiiioooonnnn VVVVNNNNDDDD)))) ((((%%%%)))) 2222000000006666 2222000000007777EEEE 2222000000008888EEEE 2222000000006666 2222000000007777EEEE 2222000000008888EEEE 2222000000006666 QQQQ1111 2222000000007777
Ho Chi Minh City Infrastructure Investment Joint Stock Company CII 67,000 2,010,000 49.0% 12.06 x 10.05 x 8.74 x 42.15 x 35.12 x 30.54 x 5.40 x 5.36 x
Song Da No 10 Joint Stock Company SDT 139,000 834,000 7.4% 1.87 x 1.56 x 1.35 x 19.95 x 16.63 x 14.46 x 7.36 x 6.86 x
Song Da No 9 Joint Stock Company SD9 63,500 444,500 1.7% 1.31 x 1.09 x 0.95 x 14.94 x 12.45 x 10.83 x 3.10 x 3.00 x
Machinery erection and construction JSC (Vimeco) VMC 70,900 248,150 0.2% 0.51 x 0.43 x 0.37 x 23.25 x 19.38 x 16.85 x 4.56 x 4.28 x
Songda 7 Joint Stock Company SD7 151,000 226,500 0.8% 0.84 x 0.70 x 0.61 x 20.42 x 17.02 x 14.80 x 7.73 x 7.63 x
Song Da No5 Joint – Stocks Company SD5 92,000 202,400 0.2% 0.56 x 0.46 x 0.40 x 15.34 x 12.78 x 11.11 x 4.67 x 5.80 x
Song da No 10.1 Joint stock company SNG 84,000 159,600 0.1% 1.76 x 1.47 x 1.28 x 10.98 x 9.15 x 7.95 x 4.02 x 3.91 x
DOAN XA PORT JOINT STOCK COMPANY DXP 46,000 161,000 3.1% 3.07 x 2.56 x 2.23 x 14.04 x 11.70 x 10.18 x 2.94 x 2.90 x
Song Da 909 Joint Stock Company S99 385,000 192,500 4.3% 3.30 x 2.75 x 2.39 x 59.47 x 49.56 x 43.09 x 17.83 x 11.79 x
Song Da No6 Joint – Stocks Company SD6 69,500 159,850 0.5% 0.55 x 0.45 x 0.40 x 11.09 x 9.25 x 8.04 x 3.36 x 3.87 x
Song Da No 11 Joint Stock Company SJE 67,000 134,000 0.2% 0.53 x 0.44 x 0.38 x 15.45 x 12.88 x 11.20 x 3.61 x 3.81 x
Song Da 3 joint stock company SD3 56,100 112,200 0.3% 0.58 x 0.48 x 0.42 x 27.95 x 23.29 x 20.25 x 4.53 x 4.47 x
Song Da No 91 Joint Stock Company S91 37,000 55,500 0.7% 0.90 x 0.75 x 0.65 x 11.43 x 9.53 x 8.29 x 2.63 x 2.59 x
Song Da 505 joint stock company S55 76,300 53,410 0.5% 0.52 x 0.44 x 0.38 x 11.72 x 9.76 x 8.49 x 3.81 x 3.61 x
Song Da 6.04 joint stock company S64 53,000 37,100 2.4% 1.49 x 1.24 x 1.08 x 13.24 x 11.04 x 9.60 x 3.19 x 3.59 x
SSSSeeeeccccttttoooorrrr aaaavvvveeeerrrraaaaggggeeee 333333335555,,,,333388881111 1111....99 xxxx 1111....66666666 xxxx 1111....44444444 xxxx 22220000....77776666 xxxx 11117777....33330000 xxxx 11115555....00004444 xxxx 5555....22225555 xxxx 4444....90000 xxxx
oooowwwwnnnneeeerrrrsssshhhhiiiipppp PPPPrrrriiiicccceeee ttttoooo ssssaaaalllleeeessss PPPP////EEEE PPPP////BBBBVVVV
NNNNOOOONNNN-CCCCOOOORRRREEEE CCCCOOOONNNNSSSSTTTTRRRRUUUUCCCCTTTTIIIIOOOONNNN ((((VVVVNNNNDDDD)))) ((((MMMMiiiilllllllliiiioooonnnn VVVVNNNNDDDD)))) ((((%%%%)))) 2222000000006666 2222000000007777EEEE 2222000000008888EEEE 2222000000006666 2222000000007777EEEE 2222000000008888EEEE 2222000000006666 QQQQ1111 2222000000007
FPT FPT 307,000 28,003,111 18.6% 1.31 x 1.09 x 0.95 x 52.28 x 43.57 x 37.89 x 17.88 x 16.60 x
Refrigeration Electrical Engineering Corporation REE 150,000 8,589,058 49.0% 10.42 x 8.68 x 7.55 x 38.61 x 32.18 x 27.98 x 7.91 x 4.23 x
Kinh Do Corporation KDC 236,000 8,495,581 38.3% 8.51 x 7.09 x 6.17 x 49.78 x 41.48 x 36.07 x 14.51 x 13.60 x
General Forwarding Agency Corporation GMD 147,000 6,386,783 51.3% 5.97 x 4.98 x 4.33 x 39.82 x 33.18 x 28.85 x 10.27 x 3.02 x
Sacom Cables Telecom Materials JSC SAM 165,000 6,177,506 49.0% 3.73 x 3.11 x 2.71 x 30.31 x 25.26 x 21.97 x 8.37 x 8.31 x
Saigon General Service Joint stock company SVC 85,000 1,094,240 0.2% 0.94 x 0.79 x 0.68 x 23.87 x 19.89 x 17.29 x 5.53 x 5.39 x
Full Power Joint Stock Company FPC 58,500 877,500 4.3% 1.77 x 1.47 x 1.28 x 26.05 x 21.71 x 18.88 x 3.07 x 3.02 x
Song Da International Manpower Supply Trading Joint stock corp. SDA 316,000 632,000 0.7% 15.09 x 12.57 x 10.93 x 39.53 x 32.94 x 28.64 x 16.33 x 16.40 x

19
5.1 Construction Real estate companies
The CONSREAL 500 INDEX,
which includes all
construction real estate
companies with a market
cap of at least VND500
billion, was the best
performing sub-index of
the construction industry.
Since the beginning of
2007, it has gained 82%,
beating both the VNIndex
and the HaSTC Index by
46% and 72% respectively.
The rally in construction
and real estate stocks has
been fueled by the thriving
real estate and property
development market.
Figure 24. HRS CONSREAL 500 INDEX2
200.00
175.00
150.00
125.00
100.00
75.00
50.00
25.00
0.00
1/2/2007
2/5/2007
1/10/2007
1/18/ 2007
1/26/2007
3/1/2007
3/9/2 007
2/13/2007
4/4/2007
3/19/2007
3/27/2007
5/4/2007
4/12/2007
4/20/2007
6/7/2007
5/14/2007
5/22/2007
5/30/2007
7/3/2007
6/15/2007
6/25/2007
HRS CONSREAL INDEX VN-INDEX HaSTC INDEX
2 Horizon Securities clients can contact their account manager to get more information on how they can invest in the same
proportions set out in any of the HRS Indices.

20
IIIITTTTAAAA – TTTTAAAANNNN TTTTAAAAOOOO IIIINNNNDDDDUUUUSSSSTTTTRRRRIIIIAAAALLLL CCCCOOOORRRRPPPPOOOORRRRAAAATTTTIIIIOOOON
The Tan Tao Industrial Park was established in 1996
and owns a total area of 442ha making it one of the
10 largest industrial parks in Ho Chi Minh City. In
January, it became the first industrial park in the
country to receive the ISO 9001: 2000 certification.
Besides its industrial park the company also
specializes in construction services in industrial, civil
and transportation works.
RRRReeeevvvveeeennnnuuuueeeessss aaaannnndddd PPPPrrrrooooffffiiiittttssss
In 2006, revenue reached VND367.538bil
(US$23mln), up 15.38% compared to 2005. Net
profit was VND148.773bil (US$9.3mln), up 33.57%.
In 2007, management expects revenues and profits
to reach VND572bil (US$35.75mln.) and VND300bil
(US$18.75mln) respectively.
In addition to high revenue and earnings’ growth,
the company has maintained sound EBITDA margins
of approximately 50% over the past two years.
TTTTaaaabbbblllleeee 1111.... BBBBaaaassssiiiicccc IIIInnnnffffoooorrrrmmmmaaaattttiiiioooonnnn
Charter Capital (mln VND) 600,000
Market Capital (mln VND) 8,460,000
Outstanding shares
60,000,000
Float3
20,590,830
Total room for foreign investor
29,400,000
Current room for foreign investor
17,621,560
Average volume (30 days) 87,588
TTTTaaaabbbblllleeee 2222.... MMMMuuuullllttttiiiipppplllleeeessss
PE 23.44 x
BV (VND) 18,507
P/BV
6.61 x
EV/EBITDA 42.29 x
DPS (VND) 1,000
DY (%) 0.82%
PPPPrrrriiiicccceeee ((((11119 JJJJuuuunnnneeee 2222000000007777)))) 111122222222,,,,222288886666
Last (VND) 122,286
52 Wk high (VND) (1 Mar 2007)
RRRRaaaaiiiissssiiiinnnngggg cccchhhhaaaarrrrtttteeeerrrr ccccaaaappppiiiittttaaaallll
In April 2007, ITA did a secondary public offering and raised VND950bil (US$59.4mln)
which the company will use to invest in five new projects:
1. TTTTaaaannnn DDDDuuuucccc IIIInnnndddduuuussssttttrrrriiiiaaaallll AAAArrrreeeeaaaa worth VND280bil (US$17.5mln)
2. TTTTaaaannnn TTTTaaaaoooo RRRReeeessssiiiiddddeeeennnnttttiiiiaaaallll AAAArrrreeeeaaaa 100ha in Tan Binh Province worth VND150bil
(US$9.375mln)
3. TTTTaaaannnn DDDDuuuucccc RRRReeeessssiiiiddddeeeennnnttttiiiiaaaallll AAAArrrreeeeaaaa 346ha at Duc Hoa District – Long An Province worth
VND200bil (US$12.5mln)
4. AAAAssssiiiiaaaa CCCCoooolllllllleeeeggggeeee – UOSA worth VND200bil (US$12.5mln)
5. SSSSaaaaiiii GGGGoooonnnn-MMMMeeeekoooonnnngggg EEEE....CCCCiiiittttyyyy which includes residential, commercial, and office
space on more than 1000 ha worth VND120bil (US$7.5mln)
OOOOtttthhhheeeerrrr pppprrrroooojjjjeeeeccccttttssss::
1. Contributed 51% on charter capital, of VND510bil (US$31.875mln) to
establish IIIITTTTAAAA-PPPPOOOOWWWWEEEERRRR JJJJSSSSCCCC in Long An Province.
3 HRS Calculations, floating shares was calculated by subtracting shares held by Government, founding members and board
of directors from outstanding shares.
146,569
52 Wk low (VND) (15 Nov 2006)
46,833
PPPPeeeerrrrffffoooorrrrmmmmaaaannnncccceeee 1111MMMM 3333MMMM 6666MMMM
Absolute (%) 2.92% -6.00% 50.00%
Relative (%) 4.55% 1.43% 1.90%

21
2. Contributed 80% of the chartered capital to establish the TTTTaaaannnn DDDDuuuucccc CCCCoooorrrrppppoooorrrraaaattttiiiioooonnnn
which has invested in a water treatment plant with capacity of 300,000
m3/day under a BOO contract.
3. Established TTTTAAAASSSSEEEERRRRCCCCOOOO CCCCoooorrrrppppoooorrrraaaattttiiiioooonnnn, a 100% owned subsidiary with charter
capital of VND120 billion engaged in providing infrastructure services for
industrial zones.
4. Invested VND250bil (US$15.625mln) in a hhhhyyyyddddrrrrooooppppoooowwwweeeerrrr ppppllllaaaannnntttt with capacity of
70MW in the Lai Chau Province. The plant is expected to be operational in
2009.

22
SSSSJJJJSSSS – SSSSOOOONNNNGGGG DDDDAAAA UUUURRRRBBBBAAAANNNN IIIINNNNDDDDUUUUSSSSTTTTRRRRIIIIAAAALLLL ZZZZOOOONNNNEEEE IIIINNNNVVVVEEEESSSSTTTTMMMMEEEENNNNTTTT AAAANNNNDDDD DDDDEEEEVVVVEEEELLLLOOOOPPPPMMMMEEEENNNNTTTT JJJJOOOOIIIINNNNTTTT
SSSSTTTTOOOOCCCCKKKK CCCCOOOOMMMMPPPPAAAANNNNYYYY ((((SSSSuuuuddddiiiiccccoooo))))
Sudico was equitized in 2003, and is a member of
the State-owned Song Da Corporation. As such, Song
Da Corp. still owns 51% of company. The company
specializes in the construction and sale of residential
buildings. Its main products are high-end apartments
and villas. The company estimates it holds
approximately 3% of the retail construction real
estate market. Management has been able to
maintain net profit margins of about 35% despite the
intense competition in the industry and increasing
input prices.
The company’s main investment projects include:
1111.... TTTTrrrraaaannnn HHHHuuuunnnngggg DDDDaaaaoooo RRRReeeessssiiiiddddeeeennnncccceeee iiiinnnn HHHHooooaaaa BBBBiiiinnnnhhhh PPPPrrrroooovvvviiiinnnncccceeee
– Total land area is 240,000m2 with the
investment of VND 148bil (US$ 9.25mln). The
project is expected to generate VND 207bil (US$
12.94mln) in total revenue.
2222.... SSSSoooonnnngggg DDDDaaaa-NNNNggggoooocccc VVVVuuuunnnngggg EEEEccccoooollllooooggggiiiiccccaaaallll AAAArrrreeeeaaaa iiiinnnn QQQQuuuuaaaannnngggg
NNNNiiiinnnnhhhh PPPPrrrroooovvvviiiinnnncccceeee – This 39ha area will include mini-hotels,
entertainment facilities and tourism
services on Ngoc Vung Island which. The project is now at the last stage of
completion and total invested will be VND248bil (US$15.5mln). Management
expects the project will generate revenues of VND 37.75bil (US$ 2.36mln) to VND
93.73bil (US$ 5.86mln) per year from 2008 to 2018.
3. MMMMyyyy DDDDiiiinnnnhhhh-MMMMeeee TTTTrrrriiii UUUUrrrrbbbbaaaannnn AAAArrrreeeeaaaa iiiinnnn HHHHaaaa NNNNooooiiii – The company has spent about VND 287bil
(US$ 18mln) on this project.
4. NNNNaaaammmm AAAAnnnn KKKKhhhhaaaannnnhhhh UUUUrrrrbbbbaaaannnn AAAArrrrrrrreeee iiiinnnn HHHHaaaa TTTTaaaayyyy – Total land area of this project is 312ha and
invested capital will be VND 1,374bil (US$ 85.88mln). The project will be
completed in the fourth quarter of 2008.
5555.... SSSSoooonnnngggg DDDDaaaa-HHHHaaaa LLLLoooonnnngggg HHHHooootttteeeellll iiiinnnn QQQQuuuuaaaannnngggg NNNNiiiinnnnhhhh – The project covers an area of 18,730m2
and will include a four star hotel and 26 villas for rent.
6666.... TTTTiiiieeeennnn XXXXuuuuaaaannnn-Hooooaaaa BBBBiiiinnnnhhhh EEEEccccoooollllooooggggiiiiccccaaaallll UUUUrrrrbbbbaaaannnn – The total land area of 1,400ha was handed
over by the Song Da Corporation.
Charter Capital (mln VND)
200,000
Market Capital (mln VND)
6,040,000
Outstanding shares
20,000,000
Float
17,450,000
9,800,000
6,619,120
Average volume (30 days)
181,547
PE 52.57 x
BV (VND)
27,135
P/BV 11.61 x
EV/EBITDA 47.46 x
DPS (VND)
2,000
DY (%) 0.66%
PPPPrrrriiiicccceeee ((((00003333 JJJJuuuullllyyyy 2222000000007777)))) 333300002222,,,,000000000000
Last (VND)
302,000
52 Wk high (VND) (26 Jun 07)
338,000
52 Wk low (VND) (1 Aug 06) 14,420
Absolute (%) 35.43% 52.86% 268.63%
Relative (%) 43.40% 57.80% 239.70%

23
170,000
3,270,932
Outstanding shares
16,354,660
Float
14,655,800
8,330,000
0
TTTTaaaabbbblllleeee 2222.... MMMMuuuullllttttiiiipppplllleeees
PE 40.56 x
BV (VND)
33,194
P/BV 6.03 x
EV/EBITDA 92.50 x
DPS (VND)
1,200
DY (%) 0.6%
PPPPrrrriiiicccceeee ((((22228888 JJJJuuuunnnneeee 2222000000007777)))) 222200000000,,,,000000000000
Last (VND)
200,000
52 Wk high (VND) (15 Dec 06)
315,000
52 Wk low (VND) (03 Jan 07)
174,000
Absolute (%) -11.11% 3.63% 14.94%
Relative (%) -6.14% 2.43% -22.89%
TTTTDDDDHHHH – TTTTHHHHUUUU DDDDUUUUCCCC HHHHOOOOUUUUSSSSEEEE
The company’s main line of business is real estate,
but it is also involved in a wide range of other
activities. In order to increase its market share and
diversify its products and services, TDH cooperated
with several partners to form various joint-venture
companies.
SSSSuuuubbbbssssiiiiddddiiiiaaaarrrriiiieeeessss aaaannnndddd jjjjooooiiiinnnntttt--vvvveeeennnnttttuuuurrrreeee ccccoooommmmppppaaaannnniiiieeeessss::::
AAAAffffffffiiiilllliiiiaaaatttteeeedddd ccccoooommmmppppaaaannnniiiieeeessss CCCCoooommmmmmmmiiiitttttttteeeedddd hhhhoooollllddddiiiinnnngggg
1
Agro-market Management
Ltd. Co
100%
2
Daewon –Thu Duc Housing
Development JV
40%
3
Dong An Binh Pure Ice Ltd.
Co.
50%
4
Tam Binh – Thu Duc
Services Co. Ltd.,
40%
5
Phong Phu - Da Lat
Investment Commercial
Corporation
44%
6
Tang Nho Phu Petro Station
20%
7
Phong Duc Construction Ltd
Co.
65%
8
Phong Phu Investment Joint
Stock Company
26%
9
Thu Duc BOO Water Pump
Joint Stock Company 10%

24
5.2 Infrastructure companies
The INFRA 500 INDEX,
includes all infrastructure
construction companies
with a market cap of at
least VND500 billion. The
INFRA 500 was the
second best performing
sub-index in construction
industry. However, since
the beginning of 2007, it
only beat the VNIndex by
1.5% and beat the HaSTC
Index by 27.5%.
Figure 25. HRS INFRA. INDEX 500
225.00
200.00
175.00
150.00
125.00
100.00
75.00
50.00
25.00
0.00
1/2/2007
1/10/2007
2/5/2007
1/18/2007
1/26/2007
3/1/2007
3/9/2007
2/13/2007
4/4/2007
3/19/2007
3/27/2007
5/4/2007
4/12/2007
4/20/2007
6/7/2007
5/14/2007
5/22/2007
5/30/2007
7/3/2007
6/15/2007
6/25/2007
HRS INFRA. INDEX VN-INDEX HaSTC INDEX

25
CCCCIIIIIIII – HHHHOOOO CCCCHHHHIIII MMMMIIIINNNNHHHH IIIINNNNFFFFRRRRAAAASSSSTTTTRRRRUUUUCCCCTTTTUUUURRRREEEE IIIINNNNVVVVEEEESSSSTTTTMMMMEEEENNNNTTTT JJJJOOOOIIIINNNNTTTT SSSSTTTTOOOOCCCCKKKK CCCCOOOOMMMMPPPPAAAANNNNYYYY
The company focuses on construction services for
civil, industrial, and transportation works as well as
for urban infrastructure projects under BOT and BOO
contracts. CII’s founders are the Ho Chi Minh City
Investment Fund (HIFU), the Vietnam Youth
Corporation (VYC), and the Investment and Services
Company (INVESCO). As at the beginning of 2007,
the company had 287 employees.
In 2006, the company’s revenue increased by 4.3%
from VND 175.64bil (US$ 10.98mln) to VND
193.29bil (US$ 12.08mln). Revenue from toll roads
represented 86.2% of total revenue. In 2006, net
income increased by 67.6% compared to 2005. The
main reasons behind the strong increase in net
income were an adjustment in the amortization
calculation and financial income.
OOOOnnnnggggooooiiiinnnngggg pppprrrroooojjjjeeeeccccttttss
1. TTTThhhhuuuu DDDDuuuucccc WWWWaaaatttteeeerrrr TTTTrrrreeeeaaaattttmmmmeeeennnntttt PPPPllllaaaannnntttt –– Is expected to be online in August 2007. The
company will invest about VND 77.012bil (US$ 4.81mln) in Thu Duc BOO
Water Company.
2. KKKKeeeennnnhhhh DDDDoooonnnngggg WWWWaaaatttteeeerrrr TTTTrrrreeeeaaaattttmmmmeeeennnntttt PPPPllllaaaannnntttt –– The investment capital will be VND 47.4bil
(US$ 2.96mln) in this year and it is projected to be in operations by 2008.
3. PPPPhhhhuuuu MMMMyyyy BBBBrrrriiiiddddggggeeee – Once completed the company will have invested VND 10bil
(US$ 0.63mln).
4. HHHHooooaaaa PPPPhhhhuuuu IIIInnnndddduuuussssttttrrrryyyy AAAArrrreeeeaaaa – TDH will invest VND 10.5bil (US$ 0.66mln) in the Hoa
Phu JSC.
5. BBBBiiiinnnnhhhh TTTTrrrriiiieeeeuuuu 2222 BBBBrrrriiiiddddggggeeee – The project total investment capital of VND 1,000bil (US$
62.5mln). Stage 2 of the project will be completed by 2008.
6. HHHHiiiigggghhhh-TTTTeeeecccchhhh PPPPaaaarrrrkkkk – CII is a founder of the High-Tech Park Development and
Investment JSC and holds 5% of its shares.
7. TTTTrrrruuuuoooonnnngggg DDDDiiiinnnnhhhh HHHHooooiiii 2222 BBBBlllloooocccckkkk aaaannnndddd 111155555555 NNNNgggguuuuyyyyeeeennnn CCCChhhhiiii TTTThhhhaaaannnnhhhh BBBBlllloooocccckkkk – The project has a
total investment capital of over VND 75bil (US$ 4.69mln).
FFFFuuuuttttuuuurrrreeee pppprrrroooojjjjeeeeccccttttss
1. DDDDoooonnnngggg TTTTaaaammmm WWWWaaaatttteeeerrrr TTTTrrrreeeeaaaattttmmmmeeeennnntttt PPPPllllaaaannnntttt (Tien Giang Province) – A BOO contract with
an investment capital of VND 560bil (US$ 35mln). CII, Tien Giang Capital,
Lottery Company and Water Supply Company are together the founders of this
project. CII holds 39% of VND 200bil (US$ 12.5mln) of the charter capital.
2. 111155552222 DDDDiiiieeeennnn BBBBiiiieeeennnn PPPPhhhhuuuu BBBBuuuuiiiillllddddiiiinnnngggg – Started in 2007 with a VND 416bil (US$ 26mln)
of investment capital.
3. TTTTaaaannnn AAAAnnnn HHHHooooiiii RRRReeeessssiiiiddddeeeennnntttt AAAArrrreeeeaaaa – covers an area of 102ha.
300,000
2,040,000
Outstanding shares
30,000,000
Float
22,750,000
14,700,000
79,130
TTTTaaaabbbblllleeee 2222.... MMMMuuuullllttttiiiipppplllleeees
PE 42.15 x
BV (VND)
12,406
P/BV 5.4 x
EV/EBITDA 18.14 x
DPS (VND)
1,200
DY (%) 1.76%
Prrrriiiicccceeee ((((22225555 JJJJuuuunnnneeee 2222000000007777)))) 66668888,,,,000000000000
Last (VND)
68,000
92,000
52 Wk low (VND) (2 Aug 06)
26,200
Absolute (%) -10.53% -15.00% 94.29%
Relative (%) -6.78% -9.94% -10.10%

60,000
768,000
Outstanding shares 6,000,000
Float 2,330,400
Total room for foreign investor 2,940,000
Current room for foreign investor 2,486,200
PE 21.03 x
BV (VND)
18,883
P/BV 6.78 x
EV/EBITDA 12.5 x
DPS (VND)
1,800
DY (%) 1.41%
PPPPrrrriiiicccceeee ((((00002222 JJJJuuuullll 2222000000007777)))) 111122228888,,,,000000000000
Last (VND)
128,000
210,000
52 Wk low (VND) (27 Dec 2006)
61,000
Absolute (%) -14.67% -26.90% 95.12%
Relative (%) -2.17% -2.02% 73.46%
26
SSSSDDDDTTTT – SSSSOOOONNNNGGGG DDDDAAAA 11110000 JJJJOOOOIIIINNNNTTTT SSSSTTTTOOOOCCCCKKKK CCCCOOOOMMMMPPPPAAAANNNNYYYY
Song Da 10 specializes in the construction of
hydropower plants and transportation works. The
company owns 70% of the total drilling construction
market in Vietnam. It is also engaged in industrial
and civil construction, as well as trading construction
materials and equipment. Besides holding minority
interests in investment, construction, and steel
companies in Vietnam, SDT owns 63.7% of Song Da
10.1 Corporation (HaSTC: SNG).
The company was listed on the Hanoi Stock Trading
Center in December 2006.
In 2006, the company made VND446.1 billion
(US$27.9 million) in revenue up 11.08% compared
to 2005. Net profit reached VND36.519 billion
(US$2.3 million), up 186.27% from 2005.
Management forecasts net income to reach
VND551.326 bil (US$34.458mln) this year.
PPPPrrrroooojjjjeeeeccccttttssss aaaannnndddd IIIInnnnvvvveeeessssttttmmmmeeeennnnttttssss
1. Investment in machinery repair and assembly in the Northern and Central
provinces.
2. Investment in construction materials for producing cement and concrete.
3. Investment for hydropower plants e.g Nam Cum, Nam Chien 2, Dai Nga, etc.
4. Financial investment in associates.
NNNNeeeewwwwssss
In the third quarter of 2007, SDT intends to offer 8 million shares in a secondary public
offering and hopes to raise up to VND140 bil (US$8.75mln).

70,000
529,200
Outstanding shares
7,000,000
Float
5,464,647
3,430,000
3,304,500
TTTTaaaabbbblllleeee 2222.... RRRRaaaattttiiiioooo
PE 21.25 x
BV (VND)
13,926
P/BV 5.26 x
EV/EBITDA 8.19 x
DPS (VND) 0
DY (%) 0.00%
PPPPrrrriiiicccceeee ((((22228888 JJJJuuuunnnneeee 2222000000007777))))
77775555,,,,666600000000
Last (VND)
75,600
144,000
52 Wk low (VND) (29 Dec 2006)
27,000
Absolute (%) 1.48% 2.86% 44.00%
Relative (%) 1.37% 13.96% 6.08%
27
SSSSDDDD9 – SSSSOOOONNNNGGGG DDDDAAAA NNNNOOOO 9 JJJJOOOOIIIINNNNTTTT SSSSTTTTOOOOCCCCKKKK CCCCOOOOMMMMPPPPAAAANNNNYYYY
In operations for over 40 years, Song Da No 9 is a
member of the State-owned Song Da Corporation.
The company focuses on mechanical engineering for
power plants, and on irrigation and transportation
works. The company has been contracted for local
overseas projects, and has invested in small-
medium-size power plants, housing projects, and
office buildings.
In 2007, management intends to increase the
company’s chartered capital to VND150 billion
(US$9.4 million) by issuing VND10.5 billion in
dividend shares, VND29.5 billion to existing
shareholders and VND40 billion as a secondary
public offering.
PPPPrrrroooojjjjeeeeccccttttssss aaaannnndddd IIIInnnnvvvveeeessssttttmmmmeeeennnnttttss:
1. NNNNaaaammmm NNNNggggaaaannnn HHHHyyyyddddrrrrooooeeeelllleeeeccccttttrrrriiiicccciiiittttyyyy – Located in Tan
Thanh Commune, Bac Quang Dist, Ha Giang
Province with a total investment of VND251
billion (US$15.7 million) and a capacity of
13.5 MW. Construction began in 2005 and
is expected to be completed by the second
quarter of 2008.
2. SSSSoooonnnngggg GGGGiiiiaaaannnngggg HHHHyyyyddddrrrrooooeeeelllleeeeccccttttrrrriiiicccciiiittttyyyy – To commence working in 1st 2011, Song Giang 2
with capacity of 18MW estimated to consume VND330bn has been built sine
1st 2008 at Quang Nam Province.
3. PPPPhhhhiiiinnnnhhhh HHHHoooo HHHHyyyyddddrrrrooooeeeelllleeeeccccttttrrrriiiicccciiiittttyyyy – Total investment of VND115bn, Phinh Ho
Hydropower plant construction will last until the first quarter of 2009 with
capacity of 6MW in Yen Bai Province.
4. SSSSoooonnnngggg DDDDaaaa MMMMeeeecccchhhhaaaannnniiiiccccaaaallll MMMMaaaannnnuuuuffffaaaaccccttttuuuurrrriiiinnnngggg PPPPllllaaaannnntttt – Beginning in 2008 with capacity of
VND25bn, Song Da No 9 is going to invest into a machinery components
production line.

28
5.3 Construction materials companies
The MATERIALS 500
INDEX, which includes all
building materials
companies with a market
cap of at least VND500
billion, was the worst
performing sub-index of
the construction industry.
Since the beginning of
2007, although it beat the
HaSTC index by 23.2%, it
actually lost ground
against the VNIndex.
Construction material
companies have had to
deal with rising input
prices on the one hand
and government-imposed
Figure 26. HRS MATERIALS INDEX 500
225.00
200.00
175.00
150.00
125.00
100.00
75.00
50.00
25.00
0.00
1/2/2007
2/5/2007
1/10/2007
1/18/2007
1/26/2007
3/1/2007
3/9/2007
2/13/2007
3/19/2007
4/4/2007
3/27/2007
5/4/2007
4/12/2007
4/20/2007
5/14/2007
5/22/2007
6/7/2007
5/30/2007
7/3/2007
6/15/2007
6/25/2007
HRS MATERIALS INDEX VN-INDEX HaSTC INDEX
price ceilings on the other. Although Hanoi is now giving them more leeway to increase
their sales price, stiff competition is impeding their ability to pass on these increases to
consumers. As a result, we expect building materials producers to experience tighter
margins. Two of the three largest building materials companies are involved in the
cement industry which faces a potential oversupply in the next few years.

29
900,000
3,915,000
Outstanding shares:
90,000,000
Float: 4,985,800
Total room for foreign investor :
44,100,000
Current room for foreign investor:
37,820,500
Average volume (30 days): 42,390
PE 53.38 x
BV (VND)
10,861
P/BV 4.01 x
EV/EBITDA 5.26 x
DPS (VND)
700
DY (%) 1.61%
44443333,,,,555500000000
Last (VND):
43,500
52 Wk high (VND):(20 Mar 2007)
55,800
52 Wk low (VND): (13 Dec 2006)
20,400
Absolute (%) -3.33% 17.57% 97.73%
Relative (%) 12.47% 46.27% 79.03%
BBBBTTTTSSSS – BBBBUUUUTTTT SSSSOOOONNNN CCCCEEEEMMMMEEEENNNNTTTT JJJJOOOOIIIINNNNTTTT SSSSTTTTOOOOCCCCKKKK CCCCOOOOMMMMPPPPAAAANNNNYYYY
But Son Cement’s principal activities include the
manufacture and sale of cement and clinker.
Approximately 95% of But Son products are
consumed mainly in Northern Provinces, as
competition in the cement industry typically occurs
at the local level due to high transportation costs
and because cement is a perishable commodity.
Only a few larger companies, such as But Son,
have distribution networks that span from the
Northern to the Central regions. Currently But Son
Cement is one of the three largest cement
companies in Vietnam.
But Son Cement was equitized in early 2005 and
was listed on the Hanoi Stock Exchange in May
2006.
But Son’s current production capacity is 1.6 million
tons per year. However, the company has invested
US$185 million in a new dry rotary kiln production
line that will add another 1.4 million tons per year
of capacity by the end of 2008.

30
Figure 27. EEEEBBBBIIIITTTTDDDDAAAA mmmmaaaarrrrggggiiiinnnn ((((%%%%)))) Figure 28. EEEEBBBBIIIITTTT mmmmaaaarrrrggggiiiinnnn ((((%%%%))))
27.9% 27.4% 27.1% 26.9%
25.5%
Average 24%
19.5% 19.1% 18.5% 17.8%
16.4%
13.9%
9.5%
37.5%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Indocemen t
Sem ent Gresik
Gujarrat A.Cem ent
Siam C ity Ceme nt
But Son Cement
As ian Cement
TPI P olene
Song Da Cement
Holcim Indonesia
Siam Ceme nt
Bim Son Cement
T aiwan Cement
Song Da Yaly Cem ent
22.5%22.3%
20.0%
16.2%15.4%
Average 16.9%
11.0%10.4% 9.7%
35%
30%
25%
20%
15%
10%
5%
Siam City Cement
Sem ent Gresik
TPI Polene
Siam Cement
Songda Cemen t
Song Da Yaly Cement
300
250
200
150
100
ButSon Cement
TPI Polene
Song Da Yaly Cement
Average US$127/ton
Song Da Cement
25.0
20.0
15.0
10.0
5.0
But Son Cement
Bimson Cement
As ian Cement
TPI P olene
Siam City Ceme nt
Average 11.6x
Siam Cement
Gujarrat A.Cement
In 2006, net profit increased by 12%. The company has the highest EBITDA margin
among the listed Vietnamese cement producers. However, the company is also trading
at high premium compared to regional peers, which typically trade at an average of
US$127/per ton of capacity and 11.6x EBITDA.
4.3%
0.5%
14.5%14.0%
31.7%
0%
Gujarrat A.Cem ent
Indocemen t
But Son Cement
Taiwan Cement
Asian Cement
Bim Son Cement
Holcim Indones ia
Source: Company data, Reuters, Horizon Securities; Average
calculated ex-Vietnamese companies
Source: Company data, Reuters, Horizon Securities;
EBIT before amortization of goodwill; Average calculated ex-
Vietnamese companies
Figure 29. EV/Ton (US$) Figure 30. EV/EBITDA (x)
263
198
159
141 137 135
92
71
61
37
106
111 109
-
50
Gujarrat A.Cement
Indocement
Siam City Cement
Bimson Cement
Sement Gresik
Siam Cement
Holcim Indonesia
Asian Cement
Taiwan Cement
21.8
19.4
16.5
15.4 15.3
9.8
6.5 6.2 6.2
5.7
10.7
11.2 11.2
-
Holcim Indonesia
Taiwan Cement
Indocement
Son g Da Yaly Cement
Son g Da Cement
Sem ent Gresik
Source: Company data, Reuters, Horizon Securities; Average
calculated ex-Vietnamese companies Source: Company data, Reuters, Horizon Securities;
Average calculated ex-Vietnamese companies

31
900,000
3,465,000
Outstanding shares
90,000,000
Float
23,355,950
44,100,000
33,399,761
PE 47.54 x
BV (VND)
10,751
P/BV 3.58 x
EV/ EBITDA 20.51 x
DPS (VND)
467
DY (%) 1.21%
33338888,,,,555500000000
Last (VND)
38,500
59,400
52 Wk low (VND) (13 Dec 2006)
18,200
Absolute (%) -2.04% -1.28% 78.24%
Relative (%) 13.77% 27.42% 59.55%
BBBBCCCCCCCC – BBBBIIIIMMMM SSSSOOOONNNN CCCCEEEEMMMMEEEENNNNTTTT JJJJOOOOIIIINNNNTTTT SSSSTTTTOOOOCCCCKKKK CCCCOOOOMMMMPPPPAAAANNNNYYYY
Bim Son’s principal activities include the manufacture
and sale of clinker and cement. Like But Son, Bim
Son cements are distributed in Northern and Central
provinces of Vietnam. Bim Son cement is one of the
top 10 cement production company in Vietnam and
accounts for 14% in its Northern market. In May
2006 Bim Son was equitized and listed on the HaSTC
in November 2006.
Bim Son’s factory was built in the early of 1980s with
blast-furnace technology from the Soviet Union and a
design capacity of 1.2 million tons per year. In 2001,
they increased their capacity to its current levels of
1.8 million tons. Having spoken to management, we
learned they can run the plant to produce up to 1.9
million tons per year.
Bim Son's management forecasts sales for the year
2007 and 2008 to increase by 10.3% and 6.1%
respectively mainly due to current strong demand for
construction and cement.
Bim Son expects to put into operation a new production line that will increase its total
capacity to 3.8 million ton per year by the middle of 2009. The total project will cost the
company close to US$255.3 million, roughly US$128 per ton of new capacity. Bim
Son’s has an EBITDA margin of 18.5% below regional average of 24%. At current
production levels, the company has an enterprise value of US$137 per ton which is
slightly higher than its regional peers and trading at premium to replacement costs.

32
299,736
890,216
Outstanding shares
29,973,594
Float
4,969,000
2,434,810
1,264,019
Average volume (30 days)
36,809
TTTTaaaabbbblllleeee 2222.... MMMMuuuullllttttiiiipppplllleeee
PE 15.48 x
BV (VND)
17,195
P/BV 1.74 x
EV/ EBITDA 10.74 x
DPS (VND) 0
DY (%) 0.00%
PPPPrrrriiiicccceeee ((((00004444 JJJJuuuullllyyyy 2222000000007777)))) 22229,,,,777700000000
Last (VND)
29,700
49,000
52 Wk low (VND) (18 Jan 07)
27,100
Absolute (%) -12.65% -17.50% -17.50%
Relative (%) -8.08% -13.95% -45.99%
TTTTCCCCRRRR - TTTTAAAAIIIICCCCEEEERRRRAAAA EEEENNNNTTTTEEEERRRRPPPPRRRRIIIISSSSEEEE CCCCOOOOMMMMPPPPAAAANNNNYYYY
Taicera listed on the HOSE since 29 December
2006.
The company was founded in 1994 by a cooperation
of the three leading Taiwanese ceramic
manufactures; Zun Lity Tile Manufacture, Engar
enterprise and Chang-Feng Ceramic industrial. These
three manufactures have been in the ceramic
industry for over 30 years. Taicera is one of the first
six foreign-invested companies to become a joint
stock company in Vietnam. They focus on producing
ceramics tiles, granite tiles and polished granite tiles
and on building civil projects.
Over 70% of its revenue is generated from the sale
of granite tiles. Export production has been about
61% in total consumption over the last three years.
Taicera owns six branches in Ho Chi Minh City, Hai
Phong, Can Tho, Da Nang, Ha Noi, Nha Trang and
employees about 1,075 employees.

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