Despite turbulences affecting the economy, listed companies, and investors’ confidence, the stock market of Vietnam has delivered an impressive gain during 2016. The unpredictable flows for funds, and the speed at which Vietnam’s economy and market earnings will grow amid great uncertainties, will determine the stock market’s movement in 2017. Access to this presentation has been made possible through "Sao Bien. Room for Education", an Austrian-based non-profit organization and cooperation partner of Viet Dragon Securities. Reprinted with the permission of Viet Dragon Securities. Not for US investors.

1. A First Look at 2017
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3. VIETNAM 2017 MACRO OUTLOOK: Rising Challenges
STOCK MARKET: Our Outlook for 2017
INVESTMENT THEMES: Our Updated Stock Picks for 2017
3

4. Economic Outlook: We forecast that Vietnam’s real GDP will grow by 6.58% in 2017, higher than the market consensus of 6.3%
and 2016’s growth rate of 6.25%. The key rationales are:
• We expect to see resilience in manufacturing and consumption
• The recovery of oil prices and agriculture should positively affect GDP growth
• Without a meaningful rise in protectionism, led by the US, we could see exports continue to grow, in line with the recovery of
global trade
Rising Challenges:
• Limited support from fiscal policy as public debt will reach its limit of 65% of GDP
• Monetary policy continues to deal with many economic puzzles, including
o Controlling inflation and the depreciation of the dong
o Keeping interest rates low to support the private sector
o Putting more credit screening regulations in place for households and real estate loans
• Global headwinds: The trajectory of US and China’s business cycles (FED rate hikes, RMB depreciation vs. stronger dollar, more
trade barriers)
Macro Themes in 2017:
Theme 1 : Riding the Commodity Bull Market
Theme 2 : Trade Barriers – WillVietnam be Hurt?
Theme 3 : SOE Reforms
Special Topic : China – One Belt One Road Strategy
4

5. Fiscal Policy Monetary Policy
 A high public debt ratio will lead to a more restrictive
fiscal policy, hindering the ability to support the
economy through the fiscal channel
 FX debt repayment is in the pipeline, which will trigger
temporary shocks in the currency market during 2017
 In the near term, there is a need to use privatization
revenue to reduce debt
 Monetary policy makers are set to prepare for gradual
FED rate hikes and the recovery of commodity prices over
the coming years
 The SBV is unlikely to raise interest rates in 2017
 Higher FX reserves provide the SBV with a buffer against
capital outflows and speculation on the currency
Sources: MoF, Worldbank, RongViet Research, * The new method: Excluding principal repayment in budget deficit calculation (Law of Budget 2015 will be effective in 2017)
High Debt Repayment Obligations in 2017 Budget Deficit will Remain Under New Law
0
50000
100000
150000
200000
250000
300000
2011 2012 2013 2014 2015 2016E 2017F
billion VND
Interest payment Principal repayment
0%
2%
4%
6%
8%
2011 2012 2013 2014 2015 2016E 2017F
%GDP
New Old
5

6. MACRO KEY DEBATES RISKS
• Will inflation be a concern in 2017?
• Where does monetary policy go from here?
o High M2/GDP ratio is not triggering concerns for
money oversupply and inflation
o No policy interest raise
• If US rates rise, how will the SBV react?
• The dong’s depreciation against USD and price adjustments
of public goods & services
• Upside risks from the recovery of oil prices
• NPL issues
• A faster pace of FED rate hikes
0
50
100
150
200
250
2000M1
2001M1
2002M1
2003M1
2004M1
2005M1
2006M1
2007M1
2008M1
2009M1
2010M1
2011M1
2012M1
2013M1
2014M1
2015M1
2016M1
Commodity Recovery
0
50
100
150
200
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
%
Record high Credit/GDP M2/GDP
0
0.5
1
1.5
2
2.5
3
Percent
Potential Fed Funds Rates
6
Sources: IMF, SBV, Bloomberg, RongViet Research

7. Main Drivers of CPI in 2017 2017 Outlook
 We expect to see CPI rise to 6% in 2017, above the
government’s target of 4%
 Historically, a 20% increase in oil prices caused a 1%
rise in inflation
 The dong’s depreciation against the USD and price
adjustments of public goods & services (electricity, water)
poses risks in our opinion.
Sources: GSO, IMF, RongViet Research
2016 CPI Breakdown (%) The Recovery of Commodity Prices
Moderate Inflation In 2017
0
50
100
150
200
250
2000M1
2000M9
2001M5
2002M1
2002M9
2003M5
2004M1
2004M9
2005M5
2006M1
2006M9
2007M5
2008M1
2008M9
2009M5
2010M1
2010M9
2011M5
2012M1
2012M9
2013M5
2014M1
2014M9
2015M5
2016M1
2016M9
1-1.5%
1.0%
0.5%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
Healthcare
(Up 30-50%)
Transport
(Oil up 20%)
Education
(Up 10%)
Contribution to CPI
7

8. Liquidity Gap in 2016 was at its Lowest Level in 2013-2016 2017 Outlook
 M2 stock and M2/GDP ratios reached an all-time high in
2016, but this ratio is not a convincing indicator of
money oversupply, which we believe is not a major
source of concern for inflation in 2017.
 Credit growth is in line with key sectors’growths, and the
SBV is unlikely to raise interest rates in 2017. Instead,
they should be ready to cool the credit boom in other
sectors (such as consumer spending and real estate).
Sources: WB, SBV, RongViet Research, Liquidity gap = ∆M2 - ∆ Net G-bond issues - ∆ Credit
M2/GDP and Credit/GDP Reached an All-time High Credit by sectors & CAGR growth 2012-2016
Where Does Monetary Policy Go From Here?
0
1000000
2000000
3000000
4000000
5000000
01/2013
03/2013
05/2013
07/2013
09/2013
11/2013
01/2014
03/2014
05/2014
07/2014
09/2014
11/2014
01/2015
03/2015
05/2015
07/2015
09/2015
11/2015
01/2016
03/2016
05/2016
07/2016
09/2016
billion VND
Retail & Transportation +11.3%
Manufacturing & Construction +9.0%
Agriculture +16.2%
Others +23.8%
0
20
40
60
80
100
120
140
160
180
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016E
%
Credit/GDP M2/GDP
0
50000
100000
150000
200000
250000
-200000
0
200000
400000
600000
800000
1000000
1200000
2013 2014 2015 2016E
billion VND
Credit Net G-bond issues M2 Liquidity gap (right axis)
8

9. Reasons to Keep Easing Vietnam Government Bond Rate
• Public debt in Vietnam is less exposed to Fed rate hikes
because it is more reliant on domestic borrowings now
(compared to 2011)
• Because of budget constraints, Vietnam is much more
dependent on monetary policy to support economic
growth
• Keep government borrowing costs at a low level
Foreseeable Risks in the Medium Term
• Higher inflation pressure
• Lending criteria tightens and borrowing costs rise
• High vulnerability to FX movements
Sources: Bloomberg, RongViet Research
A Gradual Pace of Fed Rate Hikes in 2017 External Debt/Total Debt
Fed Rate Hikes – Headwind For Monetary Policy
76%
74%
68%
64%
69%
71%
2011 2012 2013 2014 2015 2016E0
0.5
1
1.5
2
2.5
3
01/12/2016 01/09/2017 01/06/2018 01/03/2019 01/12/2019
Percent
Bloomberg Weighted Average of Federal Reserve Policy Rate
Forecasts (Upper Bound)
OIS Implied Fed Funds Rates
0
2
4
6
8
10
12
2012 2013 2014 2015 2016
1Y 3Y 5Y
9

10. MACRO KEY DEBATES RISKS
• Potential Outcomes of Trump‘s anti-globalization agenda
• Vietnam’s exports outlook (in short and medium term)
• FDI flow is not likely to decline in the medium term
• Vietnam is a potential winner if US imports from China
decline
• More uncertainties under the Trump presidency
• Weakness in global trade
• Less support from the FDI sector
• Decline in Macro Stability
0
10
20
30
40
50
60
70
80
90
100
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Vietnam Exports (% of GDP)
10Sources: zerohedge, GSO, RongViet Research

11. Trade Deficit of the US (2000-2015) Decomposition of US Trade Deficit (%)
Sources: Deustche Bank, RongViet Research
How a Trump Presidency Could Harm Vietnam’s Trade
Trump’s Plan Potential Outcomes
(1) Withdraw US from TPP: There is no chance for the TPP to
be approved under Trump’s administration.
(2) Raise trade barriers for US trade partners: A 20% tax on
imported goods, a 35% import tariff on Mexico and a 45%
import tariff on China, as well as NAFTA renegotiation.
(3) Bring jobs back to the USA: 35% tax on US companies
that move jobs overseas.
(1) Bilateral trade deals or new FTAs (without US) are
feasible
(2) Easier said than done: China might retaliate
(3) A damage to the global supply chain: FDI investors
should consider the negative impacts on their businesses.
China 50%
Germany
10%
Japan 9%
Mexico 8%
Korea 4%
Italia 4%
India 3% Others 12%
0
1
2
3
4
5
6
7
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
%GDP
vs. China vs. others
11

12. Commodity-Linked Products Export Growth (2016) 2017 Outlook
 Growth momentum will remain intact in the FDI sector,
and trade barriers are not likely to hurt Vietnam’s exports
in the near term.
 A commodity price recovery will support exports of
the domestic sector, as commodity-linked products
accounted for more than 30% of total domestic exports.
 We expect a 9% growth in exports (higher than the
Government’s target of 6-7%), and the trade deficit is
expected to be ~$2 billion in 2017.
Sources: GSO, Customs, FII, RongViet Research *Positive growth due to an >35% increase in volume
Vietnam Exports: Positive Growth In the Short-run
Vietnam Exports Dependency Growth Momentum will Remain Intact
55%
56%
62%
64%
61%
63%
68%
70%
2013 2014 2015 2016
% Non-processing exports % FDI exports
149%
-20%
-10%
0%
10%
20%
30%
40%
50%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016E
2017F
FDI implemented capital FDI exports growth
Hope from TPP
Rank: 4
Rank: 9
Rank: 12
Rank: 7
Rank: 6
Rank: 11
-60%
-40%
-20%
0%
20%
40%
0 2 4 6 8 10 12 14
YoY Growth
Domestic Exports (Ranking in value)
Rubber
Cashew
Rice
Crude oil
Coffee* Pepper*
12

13. FDI Flow Is Not Likely To Diminish In the Medium Term
116 127 137
104
180
155
68
99
125
140 156
179
268 280 281
321 321
0
50
100
150
200
250
300
350
Bangladesh Myanmar Pakistan Cambodia Vietnam India Indonesia Malaysia Thailand Philippines China
$ Monthly Minimum Wage in the Textile industry (2016)
Sources: ShengLu, BDG Asia, RongViet Research
Potential protectionism is not likely to decrease FDI flow into Vietnam because: Three Electronics Clusters in Vietnam
 FDI in Vietnam has flowed mostly into the manufacturing sector (59% of total
capital) thanks to not only the TPP but also low labor costs, and
macroeconomic and political stability.
 In China, net FDI is expected to be negative ($100-150 bn per year) in 2016-2018.
Vietnam is definitely a potential destination for China’s FDI outflow but the
reallocation of production can only take place over time.
 Korea and Japan (not US) are the two major FDI investors in Vietnam, who
are not likely to be aligned on broad-based protectionist measures.
 Without the TPP, Vietnam‘s further integration in the global economy
remains (Vietnam signed FTAs with 52 nations across the globe, and some
important FTAs are under negotiation (EU-Vietnam FTA, RCEP…).
13

14. The Triumph of Hope Over Fear
63%
12%
20%
17%
6%
31%
82%
5%
20%
32%
24%
63%
61%
63%
39%
0% 20% 40% 60% 80% 100%
Leather products
Chemicals
Paper
Rubber
Precious metal products
Plastics
Toys
Automobile
Steel products
Electrical machinery
Wood products
Computers
Telephones
Footwear
Apparel
China's share in US's imports
0%
0%
0%
0%
1%
1%
1%
2%
2%
5%
7%
8%
11%
12%
30%
0% 5% 10% 15% 20% 25% 30% 35%
Leather products
Chemicals
Paper
Rubber
Precious metal products
Plastics
Toys
Automobile
Steel products
Electrical machinery
Wood products
Computers
Telephones
Footwear
Apparel
Share in Vietnam's exports
Potential Winners if US Imports from China Decline Industries that US will likely place high priorities in trade war
Expectations if the US only targets products shipped directly from China:
 If US imports from China decline and the vacuum is filled by other exporters, Vietnam could potentially benefit the most
 Wait to Benefit: Electrical machinery, telephones, and computers
 Ready to Benefit: Textile, leather, footwear, and toys
Sources: Deutsche Bank, Customs, RongViet Research, Data as of 2015
14

15. 0
50
100
150
200
250
2008 2009 2010 2011 2012 2013 2014 2015 2016-2020
Number of Privatized SOEs 2008-2020F
MACRO KEY DEBATES RISKS
• High public debt will catalyze further privatization efforts
• SOE reforms: Opportunities vs . Challenges
• SOE reforms across Vietnam and Asia
• Potential IPOs and State divestments in 2017
• Political risks
• Corporate governance reforms disappoint
15
Source: RongViet Research

16. Challenges/Negative Movements (-) Equitization Plan for 564 SOE companies (2011-2016)
(-) The State continues to hold controlling stakes (63% - under
the plan), and the governance reforms and improved
efficiency might never materialize
(-) Equitization agenda has not been conducted on time,
despite previous optimism and the recognized necessity of
this agenda
(-) Less accessible for foreign investors
(-) Post IPO restructuring
* Cartography for national defense and security; Electricity transmission; Railway infrastructure
management; Air traffic and rescue services; Public post; Management and exploitation of irrigation
systems; Policy credit for economic and social development; Safety in banking system; Lottery
Sources: GSO, RongViet Research, Fiinpro
Partial Privatization: Still Challenging
Opportunities/ Positive Movements (+) High Public Debt Pushes Privatization Further
(+) The State will only retain 100% ownership in 12 sectors*,
creating diversified investment opportunities for many
investors
(+) More efforts to push companies that had an IPO into
listing on stock exchanges (Circular 115/2016/TT-BTC) , which
is considered as a way to promote transparency of these
companies
(+) The divestment of profitable industries such as dairy and
breweries has progressed, with the Government likely to sell
stakes in Vinamilk, Sabeco, and Habeco in 2017
63%
17%
2%
1%
17%
State Strategic investors Labors Union IPO
50.100% 50.800%
54.500%
59.600%
62.200%
64.600% 65.200%
45%
50%
55%
60%
65%
70%
2011 2012 2013 2014 2015 2016E 2017F
%GDP
16

17. Vietnam China Malaysia Indonesia
 Governance
 Equitization plan
 Loosening the State’s
authority
- Non-core business
divestment
- Increasing transparency
- Mixed ownership
 Asset restructuring
 Governance
 Zombie SOEs
- Loosening the State’s
authority
- Regrouping SOEs by
function
 Control SOEs through a
holding company
(Khazanah)
 Governance and
Operational efficiency
- Establish a holding
company
 State asset sales
Sources: HSBC, RongViet Research, - progressing,  Cautious  Finished (all or in part)
SOE Reforms Across Asia
Vietnam: High SOE Assets as % of GDP How are SOEs restructured?
 Vietnam and China: a decentralized model (Ministry or
similar organization)
 Malaysia, Indonesia, and Thailand: the Temasek model
(Singapore)
-20%
10%
40%
70%
100%
130%
160%
China
Vietnam
Malaysia
Indonesia
Thailand
India
Singapore
Srilanka
Korea
Taiwan
Philippines
% GDP
17

18. IPO – State Divestment in 2017
Natural Rubber
Q1/2017
Oil&Gas
Q3/2017
Utility
Agriculture Construction Utility Telecom A holding company
Consumer Goods
04/2017
Consumer Goods Telecom Consumer Goods
18

19. China’s economic story:
 Growth leading up to 2007 created a phenomenal trade surplus level
 After financial crisis:
• Trade surplus fell sharply
• Internal investment stimulus led to a housing crash and overcapacity in manufacturing
Solution:
AIIB (Asian Infrastructure Investment Bank) RCEP (Regional Comprehensive Economic
Partnership)
• Supports infrastructure development in Asia – Pacific
• China as a founding member with 50% capital contribution
• 57 expected founding partners
• $100 billion in capital (~2/3 ADB, ~½ WB)
• 46% of the population
• $17 trillion GDP
• 40% global trade turnover
• ASEAN + China, Japan, Korea, India, Australia, and New
Zealand
04/2005
01/2006
10/2006
07/2007
04/2008
01/2009
10/2009
07/2010
04/2011
01/2012
10/2012
07/2013
04/2014
01/2015
10/2015
Housing price
10/2016
5/2016
12/2015
7/2015
2/2015
9/2014
4/2014
11/2013
6/2013
1/2013
8/2012
3/2012
10/2011
5/2011
12/2010
7/2010
2/2010
Steel oversupply
01/2002
11/2002
09/2003
07/2004
05/2005
03/2006
01/2007
11/2007
09/2008
07/2009
05/2010
03/2011
01/2012
11/2012
09/2013
07/2014
05/2015
03/2016
China Trade Surplus
19
Source: Bloomberg

20. AIIB
Proposed Project Approved project
• India – Energy Power Supply (Co-finance WB) – 28% capital
• Kazakhstan – Roads and Highways (Co-Finance WB)
• Indonesia – Urban transport and urban water supply (Co-
Finance WB) – 25%  36% capital
• Oman – Transport/Highway (Co-Finance WB) – 75% capital
• Azerbaijan – Energy Supply/Oil and Gas (Co-Finance WB) –
17% capital
• Indonesia – Infrastructure upgrade (Co-finance WB) – 12%
capital
• Tajikistan – Road connectivity (Co-finance EBRD) – 26% capital
• Pakistan – National motor way (Co-finance ADB, Department
for international development (UK)) – 36.6% capital
• Bangladesh – Electric Supply – 63% capital
• Myanmar – Energy Supply (Co-finance ADB, IFC)
Projects
Loan Conditions
AIIB ADB
• 12 – 15 year term
• 3 – 7 year grace period
• Interest rate linked to Libor Rate
• Commitment fee: 0.25%
• Front-end fee: 0.25%
• 25 year term
• 5 year grace period
• Interest rate: 2% per annum
• No commitment fee
20

21. Benefits
• Low interest loans for infrastructure investments:
o ADB and WB stopped providing ODA to Vietnam since Vietnam has emerged to become a middle-income country
o To meet the goal of $300 billion in GDP by 2020 with infrastructure accounting for 10 – 11% of GDP, Vietnam needs roughly
$25 - $30 billion/year. Vietnam still faces a shortage of $9 billion/year (compared to $2.1 billion/year a decade ago)
Risks
• Uncertainty:
o Uncertain whether with 50% of capital contribution, China will operate based on a multilateral mechanism other than
bilateral mechanism
• Efficiency:
o Investments from China result in the use of Chinese materials and operating mechanism, low quality technologies and the
likely inflow of Chinese labor
o Projects are often slow in progress and inefficient
o Example: Cat Linh – Ha Dong railroad project: in 2009, the value invested was $586 million. In 2014, the added investment
was $250 million
• Social and Environmental Impacts:
o Environmental and property damage
o Example: In Myanmar, investments from China in hydro electrical projects, copper-mining and gas pipelines had to stop
because of environmental damage, natural resource losses
AIIB
21

22. RCEP
TPP RCEP
• 40% of World GDP and 25% trade turnover
• US as the pivot
• China and India are not members
• Built on the developed countries’standards which requires
members to follow guidelines on intellectual property and
government procurement
• 30% of World GDP, 40% of trade turnover, and 46% of the
world’s population
• ASEAN is the driving force while China supports growth
• Pressure on China and India reforms if they want to
participate
• Simpler and freer rules to support interregional cooperation
• Connects the two largest Asian economies, namely China
and Japan
Tariff reduction/elimination
More integration into commercial goods, services and investment
22

23. Benefits Challenges
• Reduced tariffs leads to increased trade
• Technology Transfer
• More FDI invested in East Asia, especially Vietnam because
it has low-labor costs
• Improved Supply Chain Management
• Benefiting Industries: Agriculture (Rice, Vegetables),
Fishery, Textile, Transport and Hospitality
• Trade deficit increases, especially with China
• Fierce competition with China particularly in trade relations
with Japan
• Fierce competition from ASEAN countries with similar
commercial structures
• Industries under fierce competition: Steel, Paper, Banking,
and F&B
RCEP’s Impacts on Vietnam
23

24. 2014 2015 2016E 2017F
Economic Growth 5.98% 6.68% 6.25% 6.58%
Trade Balance (USD B) +1.5 -4.1 +2.5 -2.0
Export Growth 11.6% 8.1% 7.5% 9.0%
Import Growth 15.9% 12.0% 3.3% 12.0%
Inflation 1.9% 0.6% 5.0% 6.0%
Refinancing rate 6.5% 6.5% 6.5% 6.5%
M2 Growth 16.0% 14.5% 18.0% 18.0%
Credit Growth 12.6% 17.3% 16.5% 16.0%
Budget Deficit/GDP 4.7% 4.6% 3.1% 3.5%
Exchange Rate 21,405 22,540 22,700 23,200
24
Source: RongViet Research

25. 25

26. 2016 Stock Market Overview
500
530
560
590
620
650
680
710
740
-
50
100
150
200
250
300
04/01 01/02 07/03 04/04 05/05 02/06 30/06 28/07 25/08 23/09 21/10 18/11
Brexit
- M2 and credit growth gap continued to widen
- VN-Index conquered the 8-year high of 650 pts
- Market
incidents: TTF,
DRH, ATA, JVC
- Foreigners
switched to
net seller
VIC, VCB
reached all-
time high
- VNM reached all-time
high thanks to FOL
news on end July
- State capital
divestments discussed
- ROS listed on HOSE
- ETF funds
completed
their Q3
review
- Tick size
change
ROS
getting
big
enough
to distort
the Index
- BHN listed on
UPCOM
- Circular 115 requires
SOEs to listed on
UPCOM within 20
days after IPO
- OPEC
meeting
- SAB
listed on
HOSE
Foreigners
net sold
VNM after
its
roadshow
- Oil price hit the bottom
$28/barrel
- GAS traded at VND 30.000/share
- Oil price recovered to $45/barrel
- GAS traded at VND 60.000/share
Foreigners
switched to
net buyers
+15.4 % YTD
26

27. The driver of market return is PE expansion There is a stark contrast in sector performances
Sources: FiinPro, RongViet Research
Valuation Multiples are at a Multi-year High! ROE Hardly Improved Between 2012 and 2016
2016 Stock Market Overview
0
5
10
15
20
01/03/2012
06/01/2012
10/22/2012
03/20/2013
08/13/2013
01/02/2014
06/06/2014
10/28/2014
03/27/2015
08/20/2015
01/11/2016
06/09/2016
10/28/2016
0
1
2
3
4
5
PBR PER
5%
10%
15%
20%
25%
30%
01/03/2012
06/01/2012
10/22/2012
03/20/2013
08/13/2013
01/02/2014
06/06/2014
10/28/2014
03/27/2015
08/20/2015
01/11/2016
06/09/2016
10/28/2016
VNINdex HNXINdex
60
80
100
120
140
160
180
4/1/2016
02/22/2016
04/04/2016
05/19/2016
06/30/2016
08/11/2016
09/23/2016
11/04/2016
Tech Industrial O&G
Consumer services Healthcare Consumer goods
Banks Resources Financials
Utilities
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
+/- PE +/- BVPS +/- EPS/BVPS Price return +/- Div
27

28. -80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
Retail
Insurance
RealEstate
Technology
Oil&Gas
FinancialServices
Utilities
Travel&Leisure
IndustrialGoods&Services
Personal&HouseholdGoods
Chemicals
Banks
Automobiles&Parts
BasicResources
Food&Beverage
Media
Construction&Materials
HealthCare
Dividend Yield Earrnings Growth P/E Change Gain
2016 Overview for Various Industries
Sources: FiinPro, RongViet Research
28

29. Overview for Various Industries
Market Cap
(billion VND)
+/- Price
1M (%)
+/- Price
3M
(%)
+/- Price
YTD (%)
+/- Price
12M (%)
Trailing
PER (x)
PBR
(x)
12M
ROAA
(%)
12M
ROE
(%)
Gross
profit
Margin
(%)
Net
profit
margin
(%)
EBITDA
margin
(%)
Debt
/Equity
(x)
HNX-Index 149,060.7 -0.6 -5.8 0.2 0.0 10.2 0.98 6.64 14.86 24.92 13.15 12.93 0.7
VN-Index 1,367,478.9 -1.1 -0.6 15.4 17.3 15.9 1.97 9.79 17.99 33.37 16.29 18.99 0.5
UPCOM Index 250,727.0 -4.5 0.4 10.6 16.3 56.5 1.52 4.94 9.94 20.84 9.67 22.36 0.7
Consumer goods 387,868.4 -2.5 -5.3 17.1 20.3 14.8 6.1 20.7 29.4 32.8 15.4 19.5 0.5
Industrials 347,152.0 9.1 28.4 55.4 56 18.2 4.0 7.6 14.3 21.5 15.7 23.6 0.6
Banks 311,447.7 -2.6 -6.5 -6.2 -5.9 13.0 1.7 0.8 11.8 53.5 23.1 - -
Financials 274,480.4 -2.1 0.7 8.3 10.6 25.3 2.7 2.7 7.4 35.0 17.8 18.1 0.7
Utilities 182,691.7 1.5 5.4 65.9 52.8 20.1 2.7 8.0 12.1 19.9 11.5 20.1 0.4
Resources 138,665.0 2.3 -2.5 13.8 14.1 10.5 2.0 9.0 16.9 13.4 1.7 12.6 0.3
Consumer services 55,983.9 -0.4 -4.1 42.6 39.5 19.7 4.4 12.9 28.9 21.7 9.8 10.4 0.7
Technology 25,915.0 0.5 -2.9 9.3 8.5 10.2 1.9 7.3 16.7 20.2 6.0 16 0.7
Healthcare 23,576.1 -0.2 -1.7 61.1 61.1 24.0 3.0 13.6 21.4 39.3 10.6 16.8 0.4
Oil & Gas 18,637.1 3.9 -6.4 1.4 -13.1 14.7 0.7 2.1 4.8 8.9 2.2 9.7 0.3
29Source: RongViet Research

30. 30
2017 Key Forecasts
#1 There will be a mean-reversion in market valuation
#2 Funds flows are not supportive in the short term
#3 Earnings growth will sustain despite strong dilution
#4 Sentiment will consolidate, but will do so cautiously

31. 10.6%
7.6%
-2.7%
10.6%
19.5%
8.0%
Share dilution NPAT growth EPS growth
Low scenario High scenario
Two Scenarios of 2017 Market Performance VNIndex Historical Trailing PER
2017 Market Performance Breakdown
* Based on the 100 largest stocks,
representing 87% of total market cap
-5
0
5
10
15
20
25
7
8
9
10
11
12
13
14
15
16
17
Vietnam
China
HongKong
India
Taiwan
Korea
Malaysia
Indonesia
Philippines
Singapore
Thailand
2017E P/E 2017E Earning growth (%)
Vietnam Stock Market Relative Valuations 2017 P/E forecast
PER
2017 =
15x
New
listings
PER >15x
Market
Upgrade
Privati-
zation
0
5
10
15
20
25
Jan-09
Jun-09
Nov-09
Apr-10
Sep-10
Feb-11
Jul-11
Dec-11
May-12
Oct-12
Mar-13
Aug-13
Jan-14
Jun-14
Nov-14
Apr-15
Sep-15
Feb-16
Jul-16
Dec-16
As the PE goes
higher, the chances
of mean reversion
also increases!
Sources: RongViet Research, JPMorgan Source: RongViet Research
31

32. Market Valuation: Not cheap, but not Expensive Yet
YTD returns PE PB EV/EBITDA
VNIndex 15.4% 15.9 2,0 10.7
Upcom Index 10.6% 56.5 1,5 12.3
HNXIndex 0.2% 10.2 1,0 6.8
Pakistan 42.1% 12.1 2.0 10.4
Sri Lanka -5.7% 12.3 1.41 7.2
Thailand 22.6% 16.7 1.8 10.8
Singapore 6.3% 12.5 1.2 13.7
Indonesia 17.7% 24.5 2.4 12.0
Malaysia -0.1% 17.0 1.7 10.5
Philippines 3.1% 19.1 2.3 12.5
Laos -9.0% 9.4 0.9 12.9
Source: Bloomberg
Components of index performance
Source: RongViet Research
EPS
growth
(8%)
Dividend
(3%)
P/E
change
(-4%)
Total
market
return
(7%)
32

33. A Wind of Change from the UPCOM
0%
5%
10%
15%
20%
25%
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2010 2011 2012 2013 2014 2015 YTD
2016
HSX
Foreign marcap Full marcap % of full marcap % Participation
0%
5%
10%
15%
20%
0
50,000
100,000
150,000
200,000
2010 2011 2012 2013 2014 2015 YTD 2016
HNX
Foreign marcap Full marcap % of full marcap % Participation
0%
2%
4%
6%
8%
0
50,000
100,000
150,000
200,000
250,000
300,000
2010 2011 2012 2013 2014 2015 YTD 2016
UPCOM
Foreign marcap Full marcap
% of full marcap % Participation
• Foreign ownership in HSX and HNX has stabilized since 2014
• Participation rates in the 2 main exchanges have increased
slightly
• Foreign investors have increased their positions in the
UPCOM over the last 2 years
UPCOM stocks may continue to emerge as the linkage
between IPO and listings will be strengthened by Circular
115/2016/TT-BTC
33
Source: RongViet Research

34. FOL Lifting is Still on the Way
Only 28 companies have increased the FOL or have plans to do so
Tickers Notes Status Tickers Notes Status
SSI Announced lifting FOL to 100%. Done SMC FOL lifting to 100% approved at AGM Pending
EVE Announced lifting FOL to 100%. Done HHS FOL lifting to 100% approved at AGM Pending
VHC Announced lifting FOL to 100% Done FCN FOL lifting to 100% approved at AGM Pending
PAN Announced lifting FOL to 100% Done VDS FOL lifting to 100% approved at AGM Pending
DMC Announced lifting FOL to 100% Done TSC FOL lifting to 100% approved at AGM Pending
FCN Announced lifting FOL to 100% Done VNE FOL lifting to 100% approved at AGM Pending
GTN Announced lifting FOL to 100% Done BMP FOL lifting to 100% approved at AGM Pending
KMR Announced lifting FOL to 100% Done VIX FOL lifting to 100% approved at AGM Pending
FID Announced lifting FOL to 100% Done ASP FOL lifting to 100% approved at AGM Pending
CVT Announced lifting FOL to 100% Done HQC Announced increase of the FOL to 60% Pending
VNM Announced lifting FOL to 100% Done TDH Announced increase of the FOL to 60% Pending
CII Announced lifting FOL to 70% Done HCM Unofficial information about 100% FOL lifting Unofficial
BIC Announced lifting FOL to 49% Done TCM Unofficial information about 100% FOL lifting Unofficial
BSI Announced lifting FOL to 49% Done Source: RongViet Research
MBB Announced lifting FOL to 20% Done
34

35. Ticker Current FOL Possible FOL Expected foreign inflows (best cases) (VND B)
MSN 48.1% 100% 24,535.76
MWG 49.0% 100% 11,587.11
CTD 49.0% 100% 6,749.05
PVD 49.0% 100% 4,217.48
KBC 49.0% 100% 3,497.83
KDC 49.0% 100% 3,293.46
DCM 49.0% 100% 2,915.94
KDH 49.0% 100% 2,410.67
DRC 49.0% 100% 1,938.70
NLG 49.0% 100% 1,616.27
CAV 49.0% 100% 1,307.23
SJS 49.0% 100% 1,242.58
HVG 40.5% 100% 1,223.36
NCT 49.0% 100% 1,120.94
CSM 49.0% 100% 1,022.63
IJC 49.0% 100% 1,125.71
BFC 49.0% 100% 865.92
LIX 49.0% 100% 941.87
CSV 49.0% 100% 606.38
STK 49.0% 100% 468.08
TMT 49.0% 100% 322.55
HTL 49.0% 100% 324.36
DGW 49.0% 100% 330.91
Source: StoxPlus
List of companies that can legally increase FOL to 100%
FOL Lifting is Still on the Way
35

36. ETFs have Fallen out of Favor
VNM ETF YTD return: -9.08%
FTSE ETF YTD return: 0.14%
VNIndex: +17.76%
Tracking difference: -17.62%
Tracking difference: -26.84%
36

37. ETFs have Fallen out of Favor
Net outflow:
- Year-to-date: -78.53 mn USD
Net outflow:
- Year-to-date: -71.01 million USD
-10
-8
-6
-4
-2
0
2
4
01-12-15
01-01-16
01-02-16
01-03-16
01-04-16
01-05-16
01-06-16
01-07-16
01-08-16
01-09-16
01-10-16
01-11-16
01-12-16
mnUSD
Db x-trackers Vietnam FTSE ETF
-8
-6
-4
-2
0
2
4
01-12-15
01-01-16
01-02-16
01-03-16
01-04-16
01-05-16
01-06-16
01-07-16
01-08-16
01-09-16
01-10-16
01-11-16
01-12-16
mnUSD
VanEck Vectors Vietnam ETF
Total outflows = -$149.54 million
(~23% of beginning NAV) – The
largest net outflows since inception!
37Source: RongViet Research

38. Market Status Upgrade is Nowhere in Sight
C. Market Accessibility Assessment Vietnam
C.1 Openness to foreign ownership
Investor qualification requirement ++
Foreign ownership limit (FOL) level -/?
Foreign room level -/?
Equal rights to foreign investors -/?
C.2 Ease of capital inflows/ outflows
Capital flow restriction level ++
Foreign exchange market liberalization level -/?
C.3 Efficiency of operational framework
Market entry
Investor registration & account set up -/?
Market organization
Market regulations +
Competitive landscape
Information flow -/?
Market infrastructure
Clearing and Settlement -/?
Custody ++
Registry/ Depository ++
Trading ++
Transferability -/?
Stock lending -/?
Short selling -/?
Stability of institutional framework +
Hardly any changes have been made to put Vietnam among other emerging markets
MSCI“C group”criteria revision 2015 MSCI“C group”criteria revision 2016
C. Market Accessibility Assessment Vietnam
C.1 Openness to foreign ownership
Investor qualification requirement ++
Foreign ownership limit (FOL) level -/?
Foreign room level -/?
Equal rights to foreign investors -/?
C.2 Ease of capital inflows/ outflows
Capital flow restriction level ++
Foreign exchange market liberalization level -/?
C.3 Efficiency of operational framework
Market entry
Investor registration & account set up -/?
Market organization
Market regulations +
Competitive landscape
Information flow -/?
Market infrastructure
Clearing and Settlement -/?
Custody ++
Registry/ Depository ++
Trading ++
Transferability -/?
Stock lending -/?
Short selling -/?
Stability of institutional framework +
38

39. Foreigners’activities since 2007 Foreigners’activities in 2016 (as of 09/12/2016)
Source: RongViet Research Source: RongViet Research
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
-200
-100
0
100
200
300
400
500
Thg1-07
Thg8-07
Thg3-08
Thg10-08
Thg5-09
Thg12-09
Thg7-10
Thg2-11
Thg9-11
Thg4-12
Thg11-12
Thg6-13
Thg1-14
Thg8-14
Thg3-15
Thg10-15
Thg5-16
Thg12-16
Net Value(mn $) Accumulate value (mn$)
Foreign Trading Activity Drops in 2016
(325)
(275)
(225)
(175)
(125)
(75)
(25)
25
(200)
(180)
(160)
(140)
(120)
(100)
(80)
(60)
(40)
(20)
-
20
04/01 22/02 04/04 19/05 30/06 11/08 23/09 04/11
Net bought/ sold (mn $) Accumulated value (mn $)
From 2007 to 2015, foreigners accumulated 3,742 million USD in Vietnamese stocks
However, by 08/12/2016, the accumulative value has been reduced to only 3,397 million USD
 That means foreign investors have withdrawn a staggering 345 million USD from Vietnam stock market in 2016 !!
39

40. Capital inflows may continue to increase
(1) Monetary easing
(2) More large-caps will list on the stock market
(3) Relaxation of margin lending requirements for newly listed and UPCOM stocks
(4) Room to increase margin lending is still ample
40

41. 2017 SECTOR RATINGS
Growth drivers Risk
SUM Cyclicality Regulation Input cost Exports
Domestic
demand
SUM Competition
Commodities
price risk
Interest
rate risk
FX risk
Automobile & Parts + + - + MH MH MH M MH
Banking + + - + MH MH N MH N
Basic resources +++ + - + + MH MH H M M
Chemicals ~ + - M M H N N
Construction & Building
materials
++ + + - + MH MH M M N
Financial services + + M M N H N
Food & Beverages + - + + MH MH M N M
Healthcare ~ - + MH MH M N M
Industrial goods & Services ++ + + - + MH MH M MH MH
Insurance + + MH MH N H N
Oil &Gas + + N N H N N
Personal & Household
goods
- - - + H MH M M H
Real estate ++ + + - + H H N H M
Retailing ++ + + N MH N M N
Technology ~ M MH N M M
Travel & Tourism ~ - + M H N N M
Utilities + + N N N N MH
Seriously negative - -
Negative -
Neutral ~
Positive +
Very positive + +
N Negligible
M Moderate
MH Moderate to High
H High
41Source: RongViet Research

42. Historical 3-month Rolling P/E
Financial Services Insurance Real Estate
Retailing Personal & Household Goods Food & Drinks
0
2
4
6
8
10
12
14
16
02/06/2012
05/21/2012
08/29/2012
12/10/2012
03/29/2013
07/15/2013
10/24/2013
02/13/2014
05/30/2014
09/11/2014
12/22/2014
04/13/2015
07/28/2015
11/06/2015
02/24/2016
06/08/2016
09/19/2016
0
5
10
15
20
25
30
35
40
02/25/2013
05/20/2013
08/06/2013
10/24/2013
01/13/2014
04/11/2014
07/03/2014
09/23/2014
12/10/2014
03/10/2015
06/02/2015
08/19/2015
11/06/2015
01/26/2016
04/21/2016
07/12/2016
09/29/2016
0
5
10
15
20
25
30
02/06/2012
05/21/2012
08/29/2012
12/10/2012
03/29/2013
07/15/2013
10/24/2013
02/13/2014
05/30/2014
09/11/2014
12/22/2014
04/13/2015
07/28/2015
11/06/2015
02/24/2016
06/08/2016
09/19/2016
0
5
10
15
20
25
30
35
40
45
02/06/2012
05/21/2012
08/29/2012
12/10/2012
03/29/2013
07/15/2013
10/24/2013
02/13/2014
05/30/2014
09/11/2014
12/22/2014
04/13/2015
07/28/2015
11/06/2015
02/24/2016
06/08/2016
09/19/2016
0
2
4
6
8
10
12
14
16
02/06/2012
05/15/2012
08/17/2012
11/22/2012
03/07/2013
06/17/2013
09/20/2013
12/25/2013
04/11/2014
07/21/2014
10/27/2014
02/02/2015
05/21/2015
08/25/2015
11/30/2015
03/11/2016
06/20/2016
09/23/2016 0
5
10
15
20
25
02/06/2012
05/15/2012
08/17/2012
11/22/2012
03/07/2013
06/17/2013
09/20/2013
12/25/2013
04/11/2014
07/21/2014
10/27/2014
02/02/2015
05/21/2015
08/25/2015
11/30/2015
03/11/2016
06/20/2016
09/23/2016
42

43. Historical 3-month Rolling P/E
Oil & Gas Basic Resources Utilities
Chemicals Construction & Materials Automobile & Parts
0
5
10
15
20
25
30
35
02/06/2012
05/15/2012
08/17/2012
11/22/2012
03/07/2013
06/17/2013
09/20/2013
12/25/2013
04/11/2014
07/21/2014
10/27/2014
02/02/2015
05/21/2015
08/25/2015
11/30/2015
03/11/2016
06/20/2016
09/23/2016
0
2
4
6
8
10
12
14
16
02/06/2012
05/15/2012
08/17/2012
11/22/2012
03/07/2013
06/17/2013
09/20/2013
12/25/2013
04/11/2014
07/21/2014
10/27/2014
02/02/2015
05/21/2015
08/25/2015
11/30/2015
03/11/2016
06/20/2016
09/23/2016
0
5
10
15
20
25
30
02/06/2012
05/15/2012
08/17/2012
11/22/2012
03/07/2013
06/17/2013
09/20/2013
12/25/2013
04/11/2014
07/21/2014
10/27/2014
02/02/2015
05/21/2015
08/25/2015
11/30/2015
03/11/2016
06/20/2016
09/23/20160
5
10
15
20
25
30
35
40
45
09/15/2014
10/31/2014
12/18/2014
02/06/2015
04/03/2015
05/27/2015
07/14/2015
08/31/2015
10/19/2015
12/04/2015
01/22/2016
03/17/2016
05/09/2016
06/24/2016
08/11/2016
09/29/2016
11/16/2016 0
2
4
6
8
10
12
14
16
02/06/2012
05/21/2012
08/29/2012
12/10/2012
03/29/2013
07/15/2013
10/24/2013
02/13/2014
05/30/2014
09/11/2014
12/22/2014
04/13/2015
07/28/2015
11/06/2015
02/24/2016
06/08/2016
09/19/2016
0
1
2
3
4
5
6
7
8
9
10
02/06/2012
05/21/2012
08/29/2012
12/10/2012
03/29/2013
07/15/2013
10/24/2013
02/13/2014
05/30/2014
09/11/2014
12/22/2014
04/13/2015
07/28/2015
11/06/2015
02/24/2016
06/08/2016
09/19/2016
43

44. Historical 3-month Rolling P/E
Healthcare Travel & Tourism Technology
0
5
10
15
20
25
30
35
40
45
02/06/2012
05/15/2012
08/17/2012
11/22/2012
03/07/2013
06/17/2013
09/20/2013
12/25/2013
04/11/2014
07/21/2014
10/27/2014
02/02/2015
05/21/2015
08/25/2015
11/30/2015
03/11/2016
06/20/2016
09/23/2016
0
5
10
15
20
25
30
02/06/2012
05/21/2012
08/29/2012
12/10/2012
03/29/2013
07/15/2013
10/24/2013
02/13/2014
05/30/2014
09/11/2014
12/22/2014
04/13/2015
07/28/2015
11/06/2015
02/24/2016
06/08/2016
09/19/2016
0
2
4
6
8
10
12
14
16
02/06/2012
05/15/2012
08/17/2012
11/22/2012
03/07/2013
06/17/2013
09/20/2013
12/25/2013
04/11/2014
07/21/2014
10/27/2014
02/02/2015
05/21/2015
08/25/2015
11/30/2015
03/11/2016
06/20/2016
09/23/2016
44Source: RongViet Research, FiinPro

45. 45
Our View on Various Sectors

46. Food & Drinks, FMCG, Retailing, Logistics
& Transportation
LOW-HANGING FRUIT
46

47. More Productivity, More Consumption!
Total Retail Sales (VND B) Vietnam Household Income Distribution
Sources: GSO, RongViet Research Source: Boston Consulting group
• Higher productivity & more employment for skilled workers leads to faster income growth and
consumption.
• Expansion of the“MAC”will result in higher demand for entertainment, recreation and premium goods.
• The ability to pass on input price increases depends on the level of competition and each company’s
market power.
0
500
1000
1500
2000
2500
3000
3500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
 434%
47
0
2000
4000
6000
8000
10000
12000
2012 2020
Poor Aspirant Emerging Established Affluent

48. More Productivity, More Consumption!
Road Freight Tonnes Port Throughput (mm tonnes)
Sources: GSO, RongViet Research Source: Ministry of Transport
• The logistics sector is crucial in ensuring a continuous flow of goods in, out and within the country.
• Seaports operators are among the most profitable companies in the market.
• TPP or no TPP, trade will continue to grow and FDI will keep on flowing.
722
1189
0
10
20
30
40
50
60
70
0
200
400
600
800
1000
1200
1400
2012 2013 2014 2015f 2016f 2017f 2018f 2019f
Road Freight Tonnes (mn) Road freight tonnes-km (bn ton km)
 64.7%
0
2
4
6
8
10
12
14
2011 2012 2013 2014 2015 2016E
Vietnam Cat Lai Hai Phong
48

49. Our Top Picks in this Theme
Ticker
Target
price
(VND)
Current
price
(VND)
Rating Time horizon
Financials
Valuation Trading
2016 2017
+/-
Rev.
(%)
+/-
NPAT
(%)
+/- Rev.
(%)
+/-
NPAT
(%)
PBR
Cur.
(x)
PEFR
(x)
+/-
Price
1y
(%)
3M Avg.
Vol.
(shares)
3M Avg.
turnover
(VND B)
MC
(VND B)
Room
(%)
Food & Beverages
SAB 143,000 141,200 Neutral Long-term 10.9 34.2 8.6 4.8 6.8 22.3 n/a 144,170 17,801 90,549 39.6
VNM 146,000 132,500 Neutral Long-term 17.1 26.0 15.4 9.4 9.4 20.3 37.6 2,098,362 291,329 92,317 52.1
Retailers
PNJ 89,600 68,900 Buy Long-term 6.0 221.7 8.0 29.6 4.3 14.9 80.5 140,238 10,149 6,771 -
Transportation
GMD 30,000 26,950 Accumulate
Intermediate-
term
5.6 (2.2) 9.9 36.7 0.9 13.4 12.2 529,978 14,628 4,836 19.0
PVT 15,300 12,000 Accumulate Long-term 5.1 13.0 1.2 1.0 1.0 7.8 38.9 830,787 11,228 3,377 24.2
VSC 71,200 55,700 Accumulate Long-term 18.5 (9.0) 17.6 23.0 1.9 11.1 (13.4) 116,612 7,794 2,538 -
Source: RongViet Research, as of 08/112/2016
49

50. Watch List
Name Subsector
Mar. cap
(VND B)
Shares
Outstanding
Trailing
PER (x)
PBR
Cur. (x)
ROEA
(%)
ROAA
(%)
Current
price
(VND)
2015 Trailing 12 months
+/- Rev.
(%)
+/- PAT
(%)
+/- Rev.
(%)
+/- PAT
(%)
LIX FMCG 1,817.6 32,400,000 8.9 3.8 43.7 26.5 56,100 124.6 3.0 13.4 20.7
NET FMCG 727.9 22,398,374 7.9 2.4 31.9 22.6 32,500 87.4 (2.5) 13.6 3.3
BHN
Food
&Beverages
29,940.7 231,800,000 33.7 5.8 15.1 9.2 135,700 6.4 5.1 5.1 6.4
CMF
Food
&Beverages
1,130.0 8,100,000 20.1 4.7 21.7 10.6 139,500 24.7 14.1 24.7 14.1
MSCC
Food
&Beverages
40,362.0 538,160,117 14.4 3.6 22.9 16.7 75,000 0.9 (15.3) 9.4 32.3
NCS
Food
&Beverages
771.1 11,998,630 8.5 4.0 52.6 35.4 64,000 66.5 17.7 17.7 66.5
SVC Retailing 1,039.0 24,975,507 10.9 1.2 8.8 3.3 41,600 86.0 24.7 23.1 (16.8)
ACV Transport 90,172.0 2,177,173,236 41.3 3.6 8.3 3.9 41,800 (33.4) 24.8 24.8 (33.4)
HAH Transport 892.3 22,939,129 6.9 1.5 26.7 15.9 38,900 26.9 21.9 (11.2) (41.1)
HVN Transport 55,239.0 1,227,533,800 18.1 3.4 17.5 2.7 45,000 (4.5) 93.3 8.5 162.0
Source: RongViet Research, as of 08/12/2016
50

51. Construction and Building Materials, Real estate,
Infrastructure, Insurance & Industrials
RIPENING FRUIT:
51

52. Nurturing Growth from the Inside
• To boost GDP growth and draw FDI, it is imperative that Vietnam builds more infrastructure.
• The development of infrastructure, new household formation and easier financing for house
buyers will continue to support house prices and keep the property market buoyant.
• Strong backlog and new orders will keep construction and materials businesses growing.
Construction Gross Product (VND B) Real Estate Transactions HCMC & Hanoi (units)
Sources: GSO, RongViet Research Source: Ministry of Construction
0
200
400
600
800
1000
1200
1400
1600
1800
2000
01/2015
03/2015
05/2015
07/2015
09/2015
11/2015
01/2016
03/2016
05/2016
07/2016
09/2016
Hanoi HCM
0
50
100
150
200
250
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
52

53. Nurturing Growth from the Inside
• Stable interest rates will continue to nurture the manufacturing sector and support expansion plans.
• Companies equipped with advanced technology and large market shares will be able to withstand
competition and market disruption.
• Innovators and market leaders are better positioned to receive incentives.
Monthly PMI and IIP (Moving Average) Manufacturing Sector Output (VND T)
Sources: GSO, RongViet Research Sources: GSO, Markit
0
100
200
300
400
500
600
700
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
-10
-8
-6
-4
-2
0
2
4
6
8
10
44
46
48
50
52
54
56
Jan-15
Mar-15
May-15
Jul-15
Sep-15
Nov-15
Jan-16
Mar-16
May-16
Jul-16
Sep-16
Nov-16
PMI IP (3m moving average)
53

54. Nurturing Growth from the Inside
• Vietnam’s nonlife insurance market is poised for rapid growth thanks to healthy economic growth, heavy
investment in infrastructure and increased consumption of the private sector.
• Vietnam has low gross premium per capita and low non-life penetration; the continuous increase in
household income will boost demand for non-life insurance products.
• The participation of strategic partners can help local insurers diversify their product offerings and improve
the overall market penetration.
Gross Non-Life Premiums Written (VND T) Non-life Premium Structure (1H2016)
Sources: GSO, RongViet Research Source: BMI, AVI
Transport Property
General liabilities Credit/Financial Guarantee
Motor vehicle Health & Personal accident
Other
0%
5%
10%
15%
20%
25%
0
5
10
15
20
25
30
35
40
45
2011 2012 2013 2014 2015 2016F 2017F 2018F
Non-life premiums +/-NL
54

55. Our Top Picks in this Theme
Ticker
Target
price
(VND)
Current
price
(VND)
Rating Time horizon
Financials
Valuation Trading
2016 2017
+/-
Rev.
(%)
+/-
NPAT
(%)
+/- Rev.
(%)
+/-
NPAT
(%)
PBR
Cur.
(x)
PEFR
(x)
+/-
Price
1y
(%)
3M Avg.
Vol.
(shares)
3M Avg.
turnover
(VND bn)
MC
(VND
bn)
Room
(%)
Construction
CTD 195,000 171,500 Neutral Long-term 54.9 102.9 25.0 15.0 2.3 8.8 65.1 132,631 27,846 13,203 (1.3)
SRF 32,100 25,700 Accumulate Long-term 44.0 29.4 12.0 11.9 1.5 9.0 84.2 16,316 461 626 21.9
VGC 17,800 15,400 Accumulate Long-term 1.2 57.9 7.2 7.9 1.3 8.8 96.9 167,601 2,787 4,780 46.2
Building Materials
BMP 179,000 189,000 Neutral Long-term 25.8 27.2 12.8 9.2 3.7 14.5 55.4 106,622 20,113 8,595 -
HPG 50,300 40,850 Accumulate Long-term 13.0 58.5 26.9 5.9 1.9 6.6 62.1 4,348,141 184,751 34,427 13.0
HSG 52,100 46,000 Accumulate
Intermediate-
term
10.3 124.1 27.5 34.6 2.2 6.2 117.1 1,809,957 76,951 9,041 21.1
NKG 45,700 35,200 Buy
Intermediate-
term
51.6 353.5 44.1 27.8 1.2 5.2 190.8 395,743 15,228 1,761 21.7
Infrastructure
HUT 15,000 11,500 Buy Long-term 75.5 173.5 14.9 41.6 0.9 14.3 13.1 1,575,676 19,797 2,028 31.9
CTI 36,000 25,600 Buy
Intermediate-
term
35.0 105.0 17.9 2.5 1.6 8.3 36.5 387,006 11,132 1,101 21.3
Source: RongViet Research, as of 08/12/2016
55

56. Watch List
Name Subsector
Mar. cap
(VND B)
Shares
outstanding
Trailing
PER (x)
PBR
Cur. (x)
ROEA
(%)
ROAA
(%)
Current
price
(VND)
2015 Trailing 12 months
+/- Rev.
(%)
+/- PAT
(%)
+/- Rev.
(%)
+/- PAT
(%)
HBC
Construction &
Building materials
2,654.0 94,447,467 7.5 1.9 28.7 3.8 28,100 20.4 44.3 148.4 1,578.1
HT1
Construction &
Building materials
8,317.6 381,541,911 9.8 1.4 18.2 7.1 21,800 142.3 12.6 10.7 87.3
NNC
Construction &
Building materials
1,185.3 16,440,202 7.1 2.9 49.2 37.9 72,100 18.4 29.5 11.4 17.8
PC1
Construction &
Building materials
2,754.6 75,262,482 6.3 1.4 23.1 10.6 36,600 (42.2) 0.0 (21.2) 47.1
PLC
Construction &
Building materials
2,213.9 80,797,566 11.1 1.7 16.4 5.7 27,400 23.1 1.6 (39.7) (58.8)
GTN Agriculture 4,587.5 250,000,000 117.6 1.7 1.4 1.0 18,350 (36.3) 231.9 (81.2) (86.9)
VLC Agriculture 1,185.2 63,101,000 10.3 1.4 9.7 7.6 18,900 42.7 5.9 3.8 (25.7)
KBC Real estate 6,788.0 469,760,189 8.6 0.9 9.5 5.6 14,450 93.0 34.2 (14.4) 94.8
KDH Real estate 4,715.1 233,999,892 13.0 1.0 8.4 4.3 20,150 338.6 69.1 60.9 (19.6)
NLG Real estate 3,169.2 142,114,510 10.8 1.4 11.3 5.6 22,300 101.4 45.2 155.3 243.0
Novaland Real estate 35,362.2 589,369,234 44.1 1.7 11.2 2.0 60,000 138.2 351.0 - -
Source: RongViet Research, as of 08/12/2016
56

57. 57

58. Turnaround Sectors
• China’s renewed demand and strengthening of the greenback promises to bring new hope for
commodities producers, exporters and even services providers.
• Having suffered from currency shocks and unfavorable weather, electricity companies are ready
for a turnaround.
• Agricultural production is recovering from the worst drought in 100 years.
Natural Rubber Prices (USD/kg) Crude Oil and Natural Gas Prices
Sources: GSO, Bloomberg Source: Bloomberg
00
01
01
02
02
03
03
04
04
05
05
08/26/2011
10/2/2012
07/27/2012
11/1/2013
06/28/2013
12/13/2013
05/30/2014
11/14/2014
1/5/2015
10/16/2015
1/4/2016
09/16/2016
0
1
2
3
4
5
6
7
0
20
40
60
80
100
120
140
08/26/2011
10/2/2012
07/27/2012
11/1/2013
06/28/2013
12/13/2013
05/30/2014
11/14/2014
1/5/2015
10/16/2015
1/4/2016
09/16/2016
Brent crude oil $/brl (LHS) Natural Gas $/MMBTU (RHS)
58

59. Our Top Picks in this Theme
Ticker
Target
price
(VND)
Current
price
(VND)
Rating Time horizon
Financials
Valuation Trading
2016 2017
+/-
Rev.
(%)
+/-
NPAT
(%)
+/-
Rev.
(%)
+/-
NPAT
(%)
PBR
Cur
. (x)
PEFR
(x)
+/-
Price
1y
(%)
3M Avg.
Vol.
(shares)
3M Avg.
turnover
(VND bn)
MC
(VND
bn)
Room
(%)
Chemicals
BFC 43,000 30,000 Buy Long-term 2.4 19.2 10.2 6.7 1.8 6.0 54.8 133,309 4,765 1,715 32.1
VFG 112,000 77,900 Buy Long-term 10.5 4.3 24.8 12.4 1.9 9.9 33.9 13,548 1,106 1,424 27.6
Electricity, Water, Gas
PPC 19,400 15,900 Accumulate Long-term (21.6) (38.9) 14.2 50.8 1.1 8.1 (3.1) 238,569 3,573 5,059 33.6
PGS 20,600 16,100 Buy
Intermediate-
term
16.0 204.0 10.6 (66.3) 0.8 2.3 7.2 190,278 3,232 805 27.9
REE 26,800 22,200 Accumulate Long-term 2.1 (3.6) 4.2 22.4 1.1 8.4 5.8 1,016,758 22,419 6,883 -
Oil & Gas
PVS 21,400 17,400 Buy
Intermediate-
term
(19.1) (28.7) (2.4) 10.6 0.8 7.2 2.3 1,900,408 37,404 7,773 21.5
Source: RongViet Research, as of 08/12/2016
59

60. Watch List
Name Subsector
Mar. cap
(USD M)
Shares
Outstanding
Trailing
PER (x)
PBR
Cur. (x)
ROEA
(%)
ROAA
(%)
Current
price
(VND)
2015 Trailing 12 months
+/- Rev.
(%)
+/- PAT
(%)
+/- Rev.
(%)
+/- PAT
(%)
DPR Natural Rubber 1,412.4 40,124,790 15.6 0.7 3.4 2.7 35,200 (27.2) (8.9) (11.4) (33.7)
PHR Natural Rubber 1,883.8 78,490,047 6.9 0.9 12.3 8.0 24,000 (19.4) (23.5) 14.8 460.8
CHP Utilities 2,583.0 125,999,511 12.7 1.8 13.8 6.6 20,500 54.1 16.4 0.7 48.5
Source: RongViet Research, as of 08/12/2016
60

61. 61

62. Export Growth and Valuation
The Good:
• Large potential market and plenty of room for growth in the long term
• Strong and high dividend yields for fertilizer companies and passenger carriers
The Bad:
• Competition & trade barriers reduce growth in the intermediate term
Textile & Seafood Exports Growth Trailing PE and Current PB vs 3-year Averages
Sources: GSO, Bloomberg Source: RongViet Research
… but prices
have decreased
a lot!!
-40%
-20%
0%
20%
40%
60%
80%
01/2013
04/2013
07/2013
10/2013
01/2014
04/2014
07/2014
10/2014
01/2015
04/2015
07/2015
10/2015
01/2016
04/2016
07/2016
10/2016
Textile Footwear Seafood
0
2
4
6
8
10
12
14
16
18
TCM TNG VNS SKG DPM VNINDEX
Trailing PER PBR 3Y Avg PER 3Y Avg PBR
62

63. Watch List
Name Subsector
Mar. cap
(VND B)
Shares
Outstanding
Trailing
PER (x)
PBR
Cur. (x)
ROEA
(%)
ROAA
(%)
Current
price
(VND)
2015 Trailing 12 months
+/- Rev.
(%)
+/- PAT
(%)
+/- Rev.
(%)
+/- PAT
(%)
FMC Food producer 573.0 30,000,000 5.7 1.1 20.6 7.1 19,100 55.1 (0.1) 25.1 (18.8)
VHC Food producer 5,067.4 92,301,883 9.6 2.1 23.7 11.1 54,900 (30.7) 3.2 29.7 122.2
TCM
Personal & Household
goods
711.9 49,099,501 6.4 0.8 12.6 4.4 14,500 (8.7) 8.6 (1.9) (12.4)
TNG
Personal & Household
goods
431.7 34,264,978 4.8 0.8 18.7 4.8 12,600 34.1 39.7 (5.0) 18.1
VGG
Personal & Household
goods
2,478.0 42,000,000 6.1 1.9 27.9 9.5 59,000 5.8 16.9 20.1 16.7
SKG Travel & Tourism 2,505.2 34,271,242 11.6 3.7 36.4 35.7 73,100 69.5 36.3 20.6 21.7
VNS Travel & Tourism 2,151.1 67,859,192 6.9 1.3 20.3 10.6 31,700 4.9 12.8 5.8 (5.7)
DPM Chemicals 8,805.0 391,334,260 6.7 1.0 14.8 12.5 22,500 34.2 2.3 (19.7) (49.8)
LAS Chemicals 1,376.8 112,856,400 7.2 1.1 14.4 7.1 12,200 (30.2) (6.7) 6.4 (9.0)
Source: RongViet Research, as of 08/12/2016 63

64. 64

65. Last but not Least
• Given the tight budget, the political will to push privatization and state divestment is strong.
• SOEs with $15 billion in market cap will hold their IPOs by 2018 and many will have to list shares in
2017.
• Big private companies are rushing to IPO, too.
 THE RESULT: Increased market size and more interest from foreign investors
Big-ticket IPO/New listing
No. Company IPO/Listing date No. Company IPO/Listing date
1 ACV Dec-16 8 PVOil 2017
2 BHN Nov-16 9 PVPower 2017
3 BSR 2017 10 QNS Dec-16
4 HVN Dec-16 11 SAB Dec-16
5 MSCC 2017 12 VEAM 2017
6 Novaland Dec-16 13 VGT 2017
7 PLX 2017 14 VietJet Air 2017
Source: RongViet Research 65

66. Watch List
Name
Mar. cap
(USD M)
Shares
O/S after IPO
Trailing
PER (x)
PBR
Cur. (x)
Current
Price
( VND)
ROEA
(%)
ROAA
(%)
2015 2014
+/- Rev.
(%)
+/- PAT
(%)
+/- Rev.
(%)
+/- PAT
(%)
ACV 88,393 2,177,173,236 40.53 3.50 40,600 8.3 3.9 24.8 (33.4) 10.5 14.5
BHN 31,432 231,800,000 35.43 6.04 135,600 15.1 9.2 5.1 6.4 42.3 7.6
HVN 55,239 1,227,533,800 18.15 3.43 45,000 17.5 2.7 (4.5) 93.3 0.3 61.9
MSCC 40,362 538,160,117 14.36 3.60 75,000 22.9 16.7 0.9 (15.3) 9.7 4.7
Novaland 35,362 589,369,234
44.12
1.66 60,000 11.2 2.0 138.2 351.0 75.1 1,172.4
PLX 38,816 1,293,878,100 8.65 1.90 30,000 20.1 7.4 (29.0) n/a 5.5 n/a
QNS 15,379 187,549,000 13.15 4.65 82,000 39.4 21.0 20.5 58.9 16.6 32.9
SAB 90,549 641,281,186 22.29 6.76 141,200 28.1 18.3 8.1 18.1 4.5 40.1
VEAM 20,596 1,328,800,000 1.74 0.50 15,500 30.2 26.8 15.9 31.4 (12.7) 41.2
VGT 6,800 500,000,000 15.96 0.92 13,600 5.8 2.2 12.6 14.5 22.9 69.8
Source: RongViet Research, as of 08/12/2016
66

67. THANK YOU!
Viet Dragon Securities Corporation
Viet Dragon Tower, 141 Nguyen Du Street.,
Dist.1, HCMC, Vietnam
www.vdsc.com.vn
Marc Djandji, CFA
Head of Institutional Sales
P. + 84 8 6299 2006 (Ext: 1312)
E. marc.djandji@vdsc.com.vn
Truc Doan
Head of Research
P. + 84 8 6299 2006 (Ext: 1308)
E. truc.dtt@vdsc.com.vn