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MONTHLY REPORT Nov, 2009MONTHLY REPORT Nov, 2009Accounting, Finance and InvestmentAccounting, Finance and Investment

Presenter: Neva LinPresenter: Neva LinInvestment Dept.Investment Dept.27th Nov 200927th Nov 2009

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Outline

I. Activities and Achievements for this month and Plans for next month

II. Financial report of Oct

III. Economic indicators update and investment outlook

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AccountingAccounting

1. The final version of the 2010 budget has been released out to parent company for approval.

2. Reviewed the YTD budget performance of all departments; put on the alert to the department whose expenses were over and reminded to seek additional expenses approval by BOD.

3. Reviewed all balance sheet accounts to ensure the outstanding balances are reasonable.

4. Worked with IT on the Budget system – phase 2.

This month activities and Achievements

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Next month plan

AccountingAccounting

1. Perform the year-end closing for the 2009 reporting.

2. Preparing for the year-end audit from Erns & Young.

3. Working on the profit center project. Following that, a geographic area or a branch office which is treated as a distinct entity enabling revenues and expenses to be determined so that profitability can be measured. Hence, management can evaluate easily whether the profit unit is meeting its own direct expenses and how much it is contributing to the company overhead.

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This month activities and Achievements

1. Monthly tax reports : VAT, PIT, Withholding tax, invoices using,

2. Cooperate with IT to enhance Finance System – Auto Cash and Receive voucher printing

3. Accounting and Finance Legal Compliance procedure

FinanceFinance

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Next month plan

1. Contact with tax Dept to get Certificate of tax withhold due to PIT Finalization year 2009

2. Open Visa Debit card for using BM fund and regional fund

3. Work with Sacombank about Auto pay premium fee

FinanceFinance

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InvestmentInvestment

1. Consolidated all application documents for fund management company and filed to SSC.

2. VND time deposit re-investment to match cash flow needs in the future.

3. Prepare documents for Auditing Department to general auditing.

This month activities and Achievements

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Next month plan

InvestmentInvestment

1. Keep following the progress of fund management company. After receiving approval from SSC, operational check preparation will be started soon.

2. Following up international and domestic bond market, including economic indicators and bond trading activities.

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2009 Oct Actual Financial Income

Trend of revenue and expense from Jan to Oct 09Trend of revenue and expense from Jan to Oct 09

( mil VND)( mil VND)

-

5,000

10,000

15,000

20,000

25,000

Jan

Mar

May Ju

lSep

Premium Invest Inc Expense-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

YTD

YTDYTD

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Expense performanceExpense performance

From Jan to Oct 2009 Financial income

( mil VND)( mil VND)

Administration expenseAdministration expenseSale expenseSale expense

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Q109 Q209 Q309 Q409 YTD Q109 Q209 Q309 Q409 YTD

Budget

Actual Actual

Budget

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I. Local News : stimulus package update

• Since running the 4% interest subsidy in Feb 09, the MoM credit growth has increased significantly. The YTD change is 33% which is above 30% official target for the year.

• Banks are required to focus on lending to manufacturing and agricultural sectors.

Credit Growth and Fund MobilizationCredit Growth and Fund Mobilization

05

101520253035

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Credit growth Fund Mob growth

YTD chgYTD chg

0%

1%

2%

3%

4%

5%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Credit growth Fund Mobilization

MoM chgMoM chg

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I. Local News : Second stimulus package

Loan subsidy program

– Medium-long term loans for investment will be extended until the end of 2010

– Short term loan will be applicable for export-oriented labor intensive corporate until 1Q2010

– The loan subsidy program will be reduced from 4% to 2%

Corporate will also be allowed to defer tax payments for 1Q10

=> Government has approved in the monthly cabinet meeting but is waiting for appoval of National Assembly

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II. Economic indicatorsII. Economic indicators

Higher pressure on CPI • With international food and oil commodity prices rising

and domestic demand picking up, the inflation pressure is getting higher.

• YoY inflation rate seems modest increase, but QoQ suggests CPI heading in one direction in the next few months.

Oil priceOil price

YoY & QoQ CPIYoY & QoQ CPI

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II. Economic indicatorsII. Economic indicators

Trade Balance – Neutral to Negative

• Trade deficit has widen to -22.7% of GDP in Oct 2009.

• Policy-driven macro rebound is leading to pressure of trade deficit. A V-shape rebound in imports led by stimulus measures. Exports remained weak as global demand struggled.

YOY % Change of Export & ImportYOY % Change of Export & Import Trade Balance TrendTrade Balance Trend

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Economic indicatorsEconomic indicators

Exchange rate: •FX is still over- demanded. FX quoted by Commercial banks remains at the ceiling rate of SBV commonly at 17,870-17,877.• Black market quotation was 19,550-19,750, still in the depreciation trend for

Increase 5% official rate

Widening trading band to 5%

This Wednesday SBV made a one time increase 5% of official rate to 17,961, narrow the trading band dollar against the dong to 3% from the current 5%.

=> Still show signs of weakness of VND and lack of USD with the approach of year end

VND.

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II. Investment OutlookII. Investment Outlook

Money market: Deposit rate of VND and USD → /↑ Deposit rate for VND generally increased recently because of

huge capital needs by banks to support loan subsidy policy. This trend can not be easily reversed Short term VND TD is preferred

USD: USD Deposit rate was slightly up because of insufficient USD in banking system especially when year end coming.

The average mobilizing rate is quoted as follows (source: SBV):

The average mobilizing rate

CurrencyDemand 3 months 6 months 12 months

(% p.a) (% p.a) (%p.a) (% p.a)

Group of state- owned commercial banks

VND 2.7 8.65 8.8 9.2USD 0.3 2.05 2.25 2.75

Group of joint-stock commercial banks

VND 3.0 9.33 9.42 9.57USD 0.3 2.45 1.7 3.05

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Interest rate of government bonds is set to rise in 4Q of 2009 due to following reasons：

1. Heavy issuance (shortage of tax revenue). Sizeable portion of government bonds are due to mature next year

2. Depreciation of VND and expectation of rising CPI force government to increase benchmark base rate (8% now)

=> Favorable direction for interest re-invest in the future.

II. Investment OutlookII. Investment Outlook

Government Bond Maturity ProfileGovernment Bond Maturity Profile

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8.5

9

9.5

10

10.5

11

11.5

12

2yr 5yr 10yr

Govt Bonds Yield Trend

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Thanks for your attention

～～ The End ～～