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

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Outline I. This month activities and

Achievements

II. Up date Market news

III. Next month project

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This month activities and Achievements

1)Q1 and Mar 2009 report to Parent company, MOF, AVI, Tax Department

2) Q109 Auditing

3) Finalized and submitted the internal auditing report- (Investment Dept).

4)Prepared documents for applying the fund management company.

5) Tax registration for Da Nang office

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1.1. Mar Mar 2009 financial income

Trend of revenue and expense from July 08 to Mar 2009Trend of revenue and expense from July 08 to Mar 2009

-

5,000

10,000

15,000

20,000

25,000

Premiums Investment Income Expense

( mil VND)( mil VND)

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Trend of revenue and expense from Q3/2008 to Q3/2009Trend of revenue and expense from Q3/2008 to Q3/2009

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Q3-08 Q4-08 Q1-09

Expense

Investment Income

Premiums

( mil VND)( mil VND)

1.1. Mar Mar 2009 financial income

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ActualActual BudgetBudget

Expense performanceExpense performance

Jan-09Feb-09

Mar-09

Jan-09 Feb-09

Mar-09

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Sale expenseSale expense Administration expenseAdministration expense

( mil VND)( mil VND)

1.1. Mar Mar 2009 financial income

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News

1) Circular 62/2009/TT-BTC issued date 27 March 2009-Summarizing main content

Non taxable Taxable 1) One-off relocation allowance for expatriates coming to reside in Vietnam.  x2)Airfares for one round trip home leave for expatriates  x

3) School fees for children of expatriate employees from elementary up to high school level  x

  4) Housing allowance paid by the employer

Taxable based on the actual expenses but not exceeding 15% of total taxable income.

5) Midshift meal : x - organized directly by employer

- Pay cash –maximum 540,000 (minimum basic salary)

 

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NEWS2) The Economic continue face difficulties

**Some of spot bright from Q1 financial report

Institution 1st quarterly result

1. Citi Group USD 1.6 bil profit

2. Goldman Sachs Bank USD 1.8 bil profit

3. Bank of America USD 4.2 bil profit

4. JB Morgan USD 2.1 bil profit

** Problem loans are growing even faster

Loan loss reserve at big banks ($billion)18

15

12

6

32

30

27

22

0 10 20 30 40 50 60

Citibank

BofA

JP Morgan

Well Fargo

Q1 2008 Q1 2009

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A. Economic News• Loans subsidy program: to sustain with the recession of

economy, Government had decided to boom USD 1 bn ~ VND 17 trillion via 4% loan interest rate subsidy program

As of 17 Apr 09, about VND 276.8 trillion has been injected into the economy:

Vietnamese market review

Bank Amount (VND trillion)

State Owned Commercial Banks 175.9Joint Stock Commercial Banks 50.3Foreign & Joint venture banks 10.1Finance Companies 0.5

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A. Economic News• GDP of Q1/09 declined to 3.1% against last year – the lowest

rate since year 1999:

Market Review

=> GDP is estimated to improve in the next quarters thanks to the affection from stimulate packages of Government and the recovery of global economy

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B. Interest Rates • Base Rate remains unchanged at 7% in April• Deposit rate at banks have slightly bounced since

Feb due the fund demand for loan subsidy program

Market Review

Deposit rate 20-Mar 20-Apr1 Week 5.75% 7.00%1 Month 7.00% 7.30%3 Months 7.50% 8.00%6 Months 7.50% 8.50%

=> Interest rate is estimated to increase but not so high due to the loan ceiling rate of 10.5%

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C. Foreign Exchange Rate• The USD liquidity in the VN market is not plentiful due to

the decreasing export value• FX at banks was stable and close to the upper bound of

the trading band, i.e. market expects higher FX rates.

Market Review

Increase 5% Increase 5% official rate official rate

Increase 5% Increase 5% trading bandtrading band

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PROJECT NEXT MONTH

Prepare the system for fund splitting

Implement budget in the system Testing system and official cooperate with Sacombank in

premium collection

Study new investment instruments for enhancing the portfolio yields in 2nd half of this year.

Keep preparing related applications and documents for establishing the Fund Management Company

Recruitment and training new staff

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