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MONTHLY REPORT August, 2009MONTHLY REPORT August, 2009Accounting, Finance and InvestmentAccounting, Finance and Investment
Presenter: Daryl ChenPresenter: Daryl ChenInvestment Dept.Investment Dept.28th Aug 200928th Aug 2009
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Outline
I. Activities and Achievements for this month and Plans for next month
II. July Financial report summary
III. Economic indicators update and market news
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Accounting
1. Conducted the presentation on the payment guideline to all departments to ensure the company regulation on accounting to be complied strictly
2. Kick-off the 2010 budget, a short meeting on the departmental expenditures have been arranged and the 2010 budget template has been released out for forecasting
This month activities and Achievements
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Next month plan
Follow-up and support the departments on the budget 2010 The time line for the 2010 budget:
AccountingAccounting
Early of Sep Departments to submit the first draft budget
Mid of Sep Accounting to work with each departments on the draft budget
End of Sep Department to submit the final budget
Mid of Oct Accounting to consolidate and submit the master budget to BOD
End of Oct BOD to meet individual department
Early of Nov To submit the 2010 budget to parent company
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This month activities and Achievements
Monthly tax reports : VAT, PIT, Withholding tax, invoices using
New policy issue of cash payment of insurance payment Registration for MOF invoice which is used for other biz
and apply for Certificate of income tax withhold Update and Notice to HR and Marketing Dept about PIT
regulation and compose internal procedures for compliance
FinanceFinance
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Next month plan
Cooperate with IT to upgrade Finance system – Linking data between accounting and Finance
Process replacing cash payment of BM fund and Regional fund by bank payment (Visa card)
FinanceFinance
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News
Circular 160/2009/TT-BTC issued date 12
August 2009-PIT Exemption
1- Salary , Wages : - PIT exemption from Jan to June 2009 - The time of payment : Latest 31 Dec 2009
2- Quarterly bonus:- PIT exemption for Q1 and Q2- The time of payment : Latest 31 Dec 2009
3- Yearly bonus:- 50% bonus is non-taxable - The time of payment : Latest 31 March 2010
4- 2008 Salary, Wages: - Non-taxable if payment from Jan to June 2009
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Investment
1) Following up international and domestic bond market, including economic indicators and bond trading activities.
2) Acquire list of FMC key persons from parent company
3) Transfer all the portfolio to IVB on August 12th.
This month activities and Achievements
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Next month plan
1. Keep following the macro economy and bond market.
2. Prepare documents related to FMC key persons and file the application form to SSC.
3. Allocate time deposit tenor to meet cash flow needs in
the future.
InvestmentInvestment
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II. II. Jul Jul 2009 financial income
Trend of revenue and expense from Jan 09 to Jul 09Trend of revenue and expense from Jan 09 to Jul 09
( mil VND)( mil VND)
0
5000
10000
15000
20000
25000
Jan Mar May Jul
Premiums Invesmtnet Expense
0
20000
40000
60000
80000
100000
120000
YTD
YTDYTD
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Expense performanceExpense performance
II.II. Jul Jul 2009 financial income
( mil VND)( mil VND)
Sale expenseSale expense Administration expenseAdministration expense
-
2,000
4,000
6,000
8,000
10,000
12,000
Actual Budget
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III. Economic indicatorsEconomic indicators
Domestic Demand Indicator -- Positive
• Consumption generally accounts for 64% of overall GDP.
• Domestic demand remains strong. Retail sales rose 20% yoy in July, compared with 21.4% increase in June
• Industrial output rose 7.6% in July from 8.2% in June
2005 2006 2007 2008
GDP 839.2 974.3 1,144 1,484
Private consumption
533.1 617.2 741.9 958.3
(% of GDP) 63.5% 63.3% 64.9% 64.6%
Government consumption
51.7 58.7 69.4 81.9
Gross fixed investment
275.8 324.9 424.9 629.6
YoYYoY
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III. Economic indicatorsEconomic indicators
Trade Balance –Neutral to Negative
• The trade balance slightly improved, where the trading deficit tighten to 1bn in July from 1.5mn in June.
• However, exports remained weak, falling 28% yoy as global demand (eg US, Japan, and Australia) struggled.
Jan Feb Mar Apr May Jun Jul
Exports, % y/y -24.2 38.6 4 -2.1 -26 -26.1 -28
Imports, % y/y -53.8 -29 -49.5 -24.7 -24.9 -20.1 -19.2
Trade Balance, USD bn
0.4 0.9 0.3 -1.1 -1.3 -1.5 -1
Leading markets 2008
% of total
US 20.6
Japan 13.5
Australia 8.1
China 6.8
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III. Economic indicatorsEconomic indicators
CPI Pressure -- Negative
• Inflation fell to a five-year low of 3.3%(yoy) in July, reflecting declines in transportation and telecommunication costs, mainly due to the “base period” effect.
• However, monthly inflation remains elevated at 0.5% in July, unchanged from June, which shows four consecutive months growth from April
Oil PriceOil Price
$70 USD/ Barrel
CPICPI
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Ⅳ. Market NewsMarket News
Exchange rate: -Commercial banks still quoted the exchange rate at the ceiling rate set by the SBV, commonly at 17,810 – 17,820-Black market: softly decreased 50 – 100 VND, around: 18,300-18,400
USD/VND rate
Trading band adjustment rumor-Recommended by National Center for Socio-economic Information and Forecast (NCEIF) to expand the trading band to 6-7% ( vs 5% currently ) in order to boost export volume.
=> Still show signs of weakness of VND and lack of USD in banking system
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Ⅳ. Market NewsMarket News
1. Money market: Deposit rate of VND -- and USD VND ： Despite recent increase in VND time deposit rate, huge capital
needs by banks may slow down due to oncoming end of loan subsidy. There is no incentive to attract more funds unless further extension is announced by government.
USD ： USD Deposit rate was slightly up because of insufficient USD in banking system.
The average mobilizing rate is quoted as follows (source: SBV):
The average mobilizing rate
CurrencyDemand(% p.a.)
3 months(% p.a.)
6 months (% p.a.)
12 months(% p.a.)
Group of state- owned commercial banks
VND 2.4-3.0 7.5-8.0 7.9-8.2 8.2-8.5
USD 0.1-0.5 1.1-1.3 1.2-1.4 1.5
Group of joint-stock commercial banks
VND 2.4-3.6 8.0-8.4 8.3-8.5 8.5-8.7
USD 0.1-0.5 1.2-1.7 1.4-2.0 1.8-2.5
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Interest rate of government bonds is set to rise in 2H of 2009 due to following reasons：
1. Heavy issuance ( Successful issuance is only 13% of auction)
2. CPI is set to rise, starting from Sep or Oct.
3. Rising ceiling rate of primary auction
Ⅳ. Market NewsMarket News
5y Bonds Across the tenors
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Ⅳ. Market NewsMarket News
Update on the 4% loan subsidy programs of 1bio USD (equals to around VND 425 trillion of total loan size )
Remaining amount for programs is only around 30 trillion, which means Government needs to have another stimulus package to support economy and enterprises.
Loan Subsidy Schedule Loans by enterprises
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Thanks for your attention
～～ The End ～～
