VIETNAM EQUITY HOLDING | 2008 ANNUAL REPORT ’S #1 PERFORMING EQUITY FUND TABLE OF CONTENT

Company Overview 3

Board of Directors 4

Equity Market Overview 6

Performance Review 6

Financial Highlights 7

Portfolio Holding 9

Report of the 14

Auditor’s Report 15

Consolidated Balance Sheet 16

Consolidated Statement of Changes in Equity 17

Consolidated Statement of Income 17

Consolidated Statement of Cash Flows 18

Notes to the Consolidated Financial Statements 19 COMPANY OVERVIEW

About the Company Investment Objective Vietnam Equity Holding (“VEH” or the “Company”) is an exempted The principal investment objective of the Vietnam Equity Holding is to company incorporated in the Cayman Islands on August 9, 2007. The seek capital appreciation of its assets by making equity investments Company was listed on the Frankfurt Exchange on November in companies with significant exposure to Vietnam. Specifically, 30, 2007. VEH was placed as the top performing Vietnam equity the Company has invested in and will continue to invest in equity focused fund in 2008 by LCF Rothschild. Report (LCF Rothschid securities of listed and private companies, over-the-counter (“OTC”) Report December 31, 2009) companies, and/or in debt securities. The Company seeks to invest the Company is managed by Saigon in a diversified and balanced portfolio that would achieve above Corporation (“SAM or the “Investment Manager”), an exempted average returns at an acceptable level of risk, give rise to long-term company incorporated under the laws of the Cayman Islands. For and short-term returns, and be capable of yielding recurrent earnings more information please visit www.saigonam.com and/or capital gains.

Corporate Information Structure Cayman Islands registered closed-end investment company Launch date August 9, 2007 Total Net Asset Value Euro 39.5mn (as of December 31, 2008) Duration 5 Years Listed Frankfurt Stock Exchange (FSE) & Xetra Annual Management Fee 2% of NAV NAV Frequency Monthly Performance Fee 20% of gains over 8% hurdle with a high water mark Investment Manager Saigon Asset Management Auditor Grant Thornton (Vietnam) Company Ltd Legal Counsel Reed Smith LLP A appleby Administrator/ Custodian Deutsche Bank (Cayman) Ltd/ D deutsche Bank AG ( Branch, Vietnam)

Trading Market FSE and Xetra Clearing Euroclear or Clearstream Settlement Euroclear or Clearstream ISIN KYG936251043 WKN AOW12V Bloomberg Symbol 3MS:GR Reuters Symbol 3MS.DE Price Provider/ 886 AG (www.886ag.de) Designated Sponsor/Market Maker Jefferies International Limited Enquiries [email protected]

SAIGON ASSET MANAGEMENT Vietnam equity holding 2009 ANNUAL REPORT | 3 | BOARD OF DIRECTORS

Dr. Lee G. Lam Mr. Howard I. Golden, Esq Chairman and Independent Non-executive Director Director

Dr. Lee G. Lam is an experienced CEO, company director and Howard I. Golden, Esq. a U.S. Citizen, is the Chairman of the Board investment banker and has over 26 years of international of Worldwide Opportunity Fund (Cayman) Ltd. (“WWOF”) a multi class corporate management, governance and finance experience in international and the President of Terra Partners, the telecommunications, media and technology, consumer/retail, Ltd an company he founded in 1989. Terra property and financial services sectors in the Asia Pacific region. Dr. manages money for institutional and qualified investors in a number Lam holds a Bachelor of Science in Mathematics and Sciences, a of countries. He has been investing in stock markets since 1977 Master of Science in Systems Science, and a Master of Business and has specialized in global investing since 1991. Mr. Golden has Administration, all from the University of Ottawa in Canada, a Post- a B.A. in Economics, an M.B.A. in International Marketing and a graduate Diploma in Public Administration from Carleton University in Juris Doctorate, all from the University of Wisconsin, Madison. Mr. Canada, a Post-graduate Diploma in English and Hong Kong Law and Golden began practicing law in 1972, and has been actively investing a Bachelor of Law (Hons) from Manchester Metropolitan University in stock markets since 1977. Mr. Golden has lectured on closed- in the U.K., a PCLL in law (and has completed the Bar Course) end funds in London and Prague and at various business schools, from the City University of Hong Kong, and a Doctor of Philosophy including Harvard and University of Chicago. He has been quoted from the University of Hong Kong. He is Chairman of Monte Jade as an expert in Transition Capital Markets and Science and Technology Association of Hong Kong, and serves as in The Economist, The Financial Times, The New York Times, The an independent or non-executive director of several publicly-listed International Herald Tribune, Newsweek, Prague Business Journal companies and investment funds in the Asia Pacific region. Having and Business Central Europe, among other publications. He was served as a Part-time Member of the Central Policy Unit of the asked to participate in a project created by Columbia University Government of the Hong Kong Special Administrative Region for and Nobel Prize winner Joseph Stiglitz to provide a textbook guiding two terms, Dr. Lam is a Member of the Jilin Province Committee of journalists reporting on emerging markets. His article on corporate the Chinese People’s Political Consultative Committee (CPPCC), a governance, translated into five languages, can be accessed at Member of the Hong Kong Institute of Bankers, a Board Member of http://www-1.gsb.columbia.edu/ipd/j_contrib.html. the East-West Center Foundation, a Member of the Young Presidents’ mr. Golden also currently serves as the Chairman of the Board Organization, a Fellow of the Hong Kong Institute of Directors and a of Directors of The Romanian Investment Fund, AGNI Systems Member of its Corporate Governance Committee, a Member of the Ltd., a Bangladesh ISP listed on the Dhaka Stock Exchange, and General Committee and the Corporate Governance Committee of the Reconstruction Capital II, an AIMS listed investment fund concentrating Chamber of Hong Kong Listed Companies, an Adjunct Professor at on Romania and Bulgaria. He also serves on the Boards of Vietnam the Hong Kong Baptist University School of Business, and a Visiting Equity Holding and Vietnam Property Holding, two closed end funds Professor at the School of Economics & Management of Tsinghua trading on the Frankfurt Stock Exchange. He was previously Chairman University in Beijing. He is fluent in English, Cantonese, Chiu Chow, of the Board of The Kazakhstan Investment Fund and the Romanian Mandarin, and Vietnamese. Growth Fund, both Cayman Island domiciled investment funds listed on the Dublin Stock Exchange and served on the Board of Directors of Framlington Bulgarian Fund until the fund’s voluntary dissolution. His tenure on these boards was a result of his activist policy, which involves close and direct supervision of large investments.

| 4 | Vietnam equity holding 2009 ANNUAL REPORT SAIGON ASSET MANAGEMENT BOARD OF DIRECTORS

Mr. Louis Nguyen Director

Louis Nguyen has over 20 years of experience in investment management and . Mr. Nguyen has been investing in Vietnam since 2003 and currently the Chairman and CEO of Saigon Asset Management (SAM). Prior to founding SAM, Mr. Nguyen was Managing Director at VinaCapital, an investment management firm in Vietnam with approximately $2 billion under management. He was also Founding General Partner of IDG Ventures Vietnam, a $100 million venture capital fund. Prior to 2003, Mr. Nguyen was actively working in the U.S. as Vice President at Intelligent Capital, a mergers and acquisitions firm based in San Francisco, California. Prior to that, he was Partner at Osprey Ventures, a $100 million venture capital fund based in Menlo Park, California. Mr. Nguyen has extensive operating experience as a Controller at NEC Computer Systems Division in Sacramento, California, where he was responsible for the division’s post merger integration with Packard Bell, a $5 billion transaction. Prior to NEC, he was a financial manager at Apple Computer in Cupertino, California, where he participated in restructuring analysis, cost controls, and total quality management (TQM) at the Fremont Manufacturing facilities, the most automated computer factory in the world at the time. Prior to that, Mr. Nguyen was with KPMG in Silicon Valley, California, where he specialized in audit and M&A advisory work. He is the founder of Asia-Silicon Valley Connection, a networking organization with over 3,000 members consisting of technology entrepreneurs, senior executives, and venture investors. Mr. Nguyen is currently Chairman of the WTO Committee, American Chamber of Commerce in Ho Chi Minh City. He is also the Chairman of Saigon Asset Management Foundation, a U.S. nonprofit organization which provides assistance to the underprivileged in Vietnam. Mr. Nguyen received a Bachelor of Science in Accounting from San Jose State University, California. He is fluent in English and Vietnamese

SAIGON ASSET MANAGEMENT Vietnam equity holding 2009 ANNUAL REPORT | 5 | EQUITY MARKET OVERVIEW PERFORMANCE REVIEW

It was in 2006 when Vietnam emerged as one of the best performing The Company’s Net Asset Value (“NAV”) per share decreased by markets in the world, returning almost 150 percent. In 2007, the 24.1% in 2008, from EUR2.39 to EUR1.81. This compares with a VN index experienced several corrections, dropping 21% from its decline in the Vietnam Index (“VNI”) of 66% over the same period. March peak of 1,170 points. In early 2008, the market further eroded despite the suboptimal NAV performance, VEH was placed when the government intervened in order to cool the overheating the best performing equity focused Vietnam fund in 2008 by economy by limiting bank lending for securities to 20 percent of LCF Rothschild. their charter capital. After more sharp corrections related to the 2008 witnessed unprecedented declines across the global government’s efforts to curb inflation and cut the trade deficit, the markets. VEH was determined to move towards a defensive allocation VN Index fell to 316 by the end of 2008, representing a 66 percent strategy, with careful investment timing and securities selection decline for the year. The financial crises in the US led by the collapse which helped to minimize potential the damage. Concerned about of Lehman Brothers and the subsequent events which brought where global market events might lead and to protect our investors’ the global economy’s problems into turmoil did much to squash interests, we refocused our strategy away from private equity and investment in emerging markets, and in Vietnam in particular. OTC and allocated a large portion of our investment portfolio Market capitalization decreased from US$28.9 billion to US$12.3 into more liquid listed market leaders during the downturn. billion during 2008, while average daily trading values on the stock VEH targeted companies with experienced management, strong market fell from US$40.7 million in December 2007 to US$17.3 corporate governance and transparency, commanding large market million in December 2008. share, ability to stay resilient during a recession, with healthy balance in spite of the challenges evidenced in 2008, the medium and sheets as well as a track record of solid growth rate. By focusing on long term outlook for Vietnam equities market is fairly positive given larger, “blue chip” companies, these equities would be less severely the outlook for the economy in 2009 and beyond. Valuation has impacted in the event of a continued downturn, and that they would become much more attractive as equities are reasonably priced at PE improve faster in the event of a recovery. As events unfolded, and our multiples of approximately 10x to 12x at the end of 2008, less than concerns were validated, these decisions contributed to achieving half of what they were in 2007. Due to likely compelling demographics, significant better NAV reduction than the drop of 66% that the VN the growth trajectory will continue and listed securities in Vietnam Index suffered. will likely once again offer a good value.

| 6 | Vietnam equity holding 2009 ANNUAL REPORT SAIGON ASSET MANAGEMENT FINANCIAL HIGHLIGHTS

Financial Data (EUR except where otherwise noted)

• NAV per share decreased during As at Dec 31, As at Dec 31, % of change 2008 from EUR2.39 to EUR1.81 2007 2008 (-24.1%) • Equity investments valued at Net asset value 52,014,010 39,481,393 -24.1% euR33,601,751 Outstanding shares 21,745,510 21,745,510 • Cash and bank balances of Net asset value per share 2.39 1.81 -24.1% euR5,830,167 (15% of NAV) Ordinary share price 2.65 0.50 -81.1% Premium/Discount of share price to NAV 10.9% (72.5%)

As at April 2009, VEH’s net asset value per share was EUR1.88 which increased 3.4% YTD and the share price was traded at EUR 0.70 or 62.8% discount to its NAV per share.

Capital Structure Ordinary Shares Placing (November 30, 2007) 21,745,510 Movement during the year - Outstanding shares as at December 31 2008 21,745,510

Net Asset Value per Share since IPO

€ 4

€ 3

€ 2

€ 1 NAV/Share

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 07 07 08 08 08 08 08 08 08 08 08 08 08 08 Source: Deutsche Bank’s NAV monthly report

Share Price vs. VN Index since IPO

3.0 € 1.200

2.5 € 1.000

2.0 € 800

1.5 € 600

1.0 € 400

0.5 € 200 VN Index

Share Price 0.0 € 0 Nov Dec Jan Mar Apr Jun Jun Jul Jul Sep Oct Oct Nov Dec 07 07 08 08 08 08 08 08 08 08 08 08 08 08

Source: Deutsche Bank’s NAV monthly report and Reuters

SAIGON ASSET MANAGEMENT Vietnam equity holding 2009 ANNUAL REPORT | 7 | FINANCIAL HIGHLIGHTS

Share price, NAV per Share & Share Price to NAV Premium/(Discount) since IPO

3.0 € 20%

2.5 € 0%

2.0 € -20%

1.5 €

-40% 1.0 €

-60% 0.5 €

NAV Per Share 0.0 € -80% Nov Dec Mar May Jul Jul Aug Sep Otc Dec Primium/(Discount) 07 07 08 08 08 08 08 08 08 08

Share Price Deutsch Bank’s NAV monthly report and Reuters

Portfolio Holdings as at December 31, 2008

Total Investment by Asset Type Total Investment by Industry

Cash & Others, 14.9% Real Estate & Infrastructure, 19.6%

OTC Holdings, 27.5% Chemicals, 10.5%

Listed Holdings, 52.6% Pharmaceauticals, 9.9%

Private Equity, 5.0% Transportation, 1.8%

General Industrials, 6.8%

F&B, 13.0%

Utilities, 6.6%

Oil & Gas, 8.2%

Banking & Financial Services, 8.8%

Cash & Others, 14.9%

| 8 | Vietnam equity holding 2009 ANNUAL REPORT SAIGON ASSET MANAGEMENT PORTFOLIO HOLDINGS

1. Phu My Bridge Corporation (“PMC”)

PMC is the project owner of the largest suspension bridge (US$180mn BOT project) and Phu My Bridge Approach Roads (US$90mn BT project), which links District 2 and District 7 through the backbone belt road of Ho Chi Minh City. The company has 26 years of toll fee collection right on the Phu My Bridge project. PMC is well positioned to be the leader in infrastructure sector in the Southern Vietnam and has a deep connection with local government. PMC was recently assigned by the Ho Chi Minh City’s People Committee of three key projects: the Thu Thiem Bridge No.3, linking District 2 to District 4 of Ho Chi Minh City, Saigon Bridge II in Ho Chi Minh City and Ca Pass Tunnel in the central region

Sector / Asset Type Infrastructure / OTC

year acquired 2008

Book Value EUR6.2mn (as of Dec 31, 2008)

% NAV 15.8%

location District 7, Ho Chi Minh City

Size/Area US$180mn Phu My Bridge BOT project US$90mn Phu My Bridge Approach Roads project

Status Construction is 3 months ahead schedule

highlights Expected to be connected in May 2009 and fully operated by early September 2009 to generate stable income from toll fee and advertisement

2. Vietnam Dairy Products Joint Stock Company (“VNM”)

VNM is the top listed company on the Ho Chi Minh Stock Exchange (“Hose”) in term of market capitalization. It delivered solid performance in 2008 with net profit reaching 22.1% growth y-o-y . The company now owns a number of household brand names and is a leader with approximately 37% market share in the domestic milk and diary market. VNM recently entered the fast-growing coffee market through its new brand Coffee Moment and planned to build an additional factory to achieve better economy of scale and to increase its capacity by 20-25%.

Sector / Asset Type Food and beverage / Listed

year acquired 2008

Book value EUR3.24mn

% NAV 8.2%

Financial Highlights (EURmn except where otherwise noted)

2008 2007

Revenue 343.3 285.7

eBITDA 64.6 47.0

net income 50.3 41.2

net income growth 22.1% 32.5%

earning per share VND7,132 VND5,496

SAIGON ASSET MANAGEMENT Vietnam equity holding 2009 ANNUAL REPORT | 9 | PORTFOLIO HOLDINGS

3. PetroVietnam Drilling and Well Services Joint Stock Company (“PVD”)

PVD is a blue chip company on Hose as well as a leader in drilling and well maintenance services for the petroleum industry. With over 50% equity interest held by Petro Vietnam, PVD receives strong support from the Government and is the only local company in this industry. PVD’s performance has been solid with net profit reaching 55.3% growth compared with the previous year. We expect a more difficult operating environment in 2009 for PVD as rig rental price has dropped by as much as 30% from its high in Q2 2008. We will continue to monitor PVD closely and consider exiting when appropriate.

Sector / Asset Type Oil & Gas / Listed

year acquired 2008

Book value EUR3.22mn

% NAV 8.2%

Financial Highlights (EURmn except where otherwise noted)

2008 2007

Revenue 152.4 117.2

eBITDA 48.9 34.3

net income 38.2 24.6

net income growth 55.3% 396.6%

earning per share VND7,060 VND5,233

4. PetroVietnam Fertilizer and Chemicals Corporation (“DPM”)

DPM is a blue chip company on Hose and the number two company in term of market capitalization. It manufactures and wholesales nitrogen fertilizers, liquified ammonia and industrial gases, as well as other agricultural chemical products. DPM is currently operating at full capacity and continued to maintain its leadership position with 40% market share. Its 2008 revenue and net profit increased 64.5% and 0.4% respectively y-o-y. The company is taking steps to increase its capacity in the next few years. Recently DPM signed a MOU to jointly develop a US$600mn Diammonium Phosphate (DAP) plant with Morocco’s Office Cherifien de Phosphate (OCP), which will start operations in 2011 and will sell its entire output of 1 million tones to Vietnam where DAP is currently imported exceeding 700,000 tones annually.

Sector / Asset Type Chemicals / Listed

year acquired 2008

Book value EUR3.05mn

% NAV 7.7%

Financial Highlights (EURmn except where otherwise noted)

2008 2007

Revenue 266.0 161.7

eBITDA 107.0 107.0

net income 56.7 56.5

net income growth 0.4% 13.8%

earning per share VND3,646 VND3,499

| 10 | Vietnam equity holding 2009 ANNUAL REPORT SAIGON ASSET MANAGEMENT PORTFOLIO HOLDINGS

5. Hau Giang Pharmaceutical Joint Stock Company (“DHG”)

Despite a difficult business environment, DHG business performance in 2008 was impressive. Revenue grew 13% compared with 2007, while net profit increased 14.3%. DHG is a leader in the domestic pharmaceutical industry and listed on Hose. The company has restructured its product lines by focusing more on high gross margin products and increasing its distribution system.

Sector / Asset Type Pharmaceuticals / Listed

year acquired 2008

Book value EUR1.95mn

% NAV 4.9%

Financial Highlights (EURmn except where otherwise noted)

2008 2007

Revenue 61.3 54.3

eBITDA 7.3 7.2

net income 5.6 4.9

net income growth 14.3% 32.2%

earning per share VND6,776 VND5,774

6. Hoa Phat Group (“HPG”)

HPG is one of the leading steel manufacturers in Vietnam with 11.7% market share. Even the steel industry faced a difficult year with inventory build -up and decreasing prices, HPG achieved the full year result exceeded expectations with net profit achieving 27.5% growth on 2007. The company will start its new steel and cement factories later this year; which will further strengthen the company’s market leadership. HPG is a blue chip company on Hose and currently in top 5 steel producers in Vietnam .

Sector / Asset Type General Industrials / Listed

year acquired 2008

Book value EUR1.92mn

% NAV 4.9%

Financial Highlights (EURmn except where otherwise noted)

2008 2007

Revenue 342.7 241.5

eBITDA 52.0 39.3

net income 35.2 27.6

net income growth 27.5% n/a

earning per share VND4,439 VND5,264

SAIGON ASSET MANAGEMENT Vietnam equity holding 2009 ANNUAL REPORT | 11 | PORTFOLIO HOLDINGS

7. Vinh Son - Song Hinh Hydropower Joint Stock Company (“VSH”)

VSH is a Hose listed company and is one of the most efficient hydro power stations in Vietnam. It delivered solid performance in 2008 with net profit reaching 37.3% growth y-o-y. The government will stop subsidizing electricity sector and we expect to see electricity price to increase by about 10% next year, which will help increase VSH’s revenue and net profit.

Sector / Asset Type Utilities / Listed

year acquired 2008

Book value EUR1.64mn

% NAV 4.2%

Financial Highlights (EURmn except where otherwise noted)

2008 2007

Revenue 19.8 15.8

eBITDA 21.8 17.9

net income 15.1 11.0

net income growth 37.3% -4.8%

earning per share VND2,687 VND1,868

8. Development Investment Construction Corporation (“DIC Group” or “DIG”)

DIG is one of the leading real estate companies in Vietnam. Despite a difficult year for the property market, DIG was able to exceed profit target by 50% and posted an impressive EPS in 2008. It has paid out 60% dividend in 2008, in which 35% in cash and 25% as share dividend, and will pay out at least 35% dividend in 2009. The company’ shareholders have recently given approval to increase its chartered capital by 63%, which will be used to fund new real estate projects. DIG has been planning to list in Hose in the third quarter of 2009.

Sector / Asset Type Real Estate & Infrastructure / OTC

year acquired 2007

Book value EUR1.51mn

% NAV 3.8%

Financial Highlights (EURmn except where otherwise noted)

2008 2007

Revenue (EURm) 12.3 6.8

eBITDA (EURm) 17.1 1.8

net income (EURm) 13.4 0.8

net income growth 1,675% -5.0%

earning per share VND8,871 VND1,248

| 12 | Vietnam equity holding 2009 ANNUAL REPORT SAIGON ASSET MANAGEMENT PORTFOLIO HOLDINGS

9. Petro Vietnam Insurance Company (“PVI”)

PVI is the second biggest Vietnamese insurance company with over 20% market share in non-life

insurance sector and listed in Hatsc. The Company offers insurance and reinsurance services of energy, marine, engineering, liability, motor vehicle, property, medical and life. With Petro Vietnam being the major shareholder (76%), PVI receives strong support from Petro Vietnam, especially in all oil and gas related insurance activities.

Sector / Asset Type Banking & Financial Services / Listed

year acquired 2008

Book value EUR1.5mn

% NAV 3.7%

Financial Highlights (EURmn except where otherwise noted)

2008 2007

Revenue 34.2 21.5

net income 7.0 10.7

net income growth -34.5% 468.2%

earning per share VND1,618 VND2,810

10. Saigon Thuong Tin Commercial Joint Stock Commercial Bank (“STB”)

Saigon Thuong Tin Commercial Joint Stock Commercial Bank (“STB”), founded in 1991, is 2nd largest commercial banks in Vietnam by assets. STB has recorded a yearly growth averaging 79% in total assets in the last 4 years.The bank has significant market share through the retail network with over 250 offices nationwide. It owns a series of subsidiaries and joint ventures in financial industry such as securities, investment management, foreign exchange remittances, and debt services. STB is one of the blue chip companies on Hose with 30% of its equity owned by foreigners. Despite the risks in banks globally, we believe STB’s valuation is attractive given the decline in the stock price in the last 12 months combined with its market leadership, relatively strong balance sheet and strong liquidity position.

Sector / Asset Type Banking & Financial Services / Listed

year acquired 2008

Book value EUR0.8mn

% NAV 1.9%

Financial Highlights (EURmn except where otherwise noted)

2008 2007

total assets 2,803.8 2,763.2

net income 39.1 59.8

net income growth -34.6% 197.4%

earning per share VND1,869 VND2,732

SAIGON ASSET MANAGEMENT Vietnam equity holding 2009 ANNUAL REPORT | 13 | REPORT OF THE BOARD OF DIRECTORS

The Board of Directors submits its report together with the Board of Directors’ responsibilities in respect of the financial audited financial statements of Vietnam Equity Holding (“the statements Company”) for the year ended 31 December 2008. The Board of Directors is responsible for ensuring that the financial statements are properly drawn up so as to give a true and fair view The Company of the financial position of the Company as at 31 December 2008 Vietnam Equity Holding was incorporated in the Cayman Islands as and of the results of its operations and its cash flow for the year a company with limited liability. The registered office of the Company then ended. In preparing these financial statements, the Board of is at Deutsche Bank (Cayman) Limited at Boundary Hall, Cricket Directors is required to: Square, PO Box 1984, Grand Cayman KY1-1104, Cayman Islands. (i) adopt appropriate accounting policies which are supported by reasonable and prudent judgments and estimates and then apply Principal activities them consistently; The principal activity of the Company is to invest in a diversified and (ii) comply with the disclosure requirements of International balanced portfolio that would achieve above average returns at an Financial Reporting Standards or, if there have been any departures acceptable level of risk, give rise to long-term and short-term returns, in the interest of true and fair presentation, ensure that these and be capable of yielding recurrent earnings and/or capital gains have been appropriately disclosed, explained and quantified in the consolidated financial statements; Results and dividend (iii) maintain adequate accounting records and an effective The results of the Company for the year ended 31 December 2008 system of internal control; and the state of its affairs as at that date are set out in the financial (iv) prepare the financial statements on a going concern basis statements on pages 17 to 24. unless it is inappropriate to assume that the Company will continue the Board of Directors does not recommend the payment of its operations in the foreseeable future; and dividends during the year. (v) control and effectively direct the Company in all material decisions affecting its operations and performance and ascertain Board of Directors that such decisions and/or instructions have been properly reflected The members of the Board of Directors during the year and up to the in the financial statements. date of this report were: the Board of Directors is also responsible for safeguarding the

Board of Directors: Appointed on/Resigned on assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Lee G. Lam Chairman November 9, 2007 The Board of Directors confirms that the Company has complied with Independent Non-executive Director the above requirements in preparing the financial statements. Howard Golden Director November 9, 2007 Louis T. Nguyen Director August 9, 2007 Statement by the Board of Directors Bui Cong Giang Director October 1, 2007/ In the opinion of the Board of Directors, the accompanying balance May 20, 2008 sheet, statements of income, changes in equity and cash flows together with the notes thereto, have been properly drawn up and There being no provision in the company’s articles of give a true and fair view of the financial position of the Company as at association to the contrary, all Directors shall remain in office for the 31 December 2008 and the results of its operations and cash flows ensuing year. for the year then ended in accordance with International Financial Auditors Reporting Standards. The financial statements have been audited by Grant Thornton On behalf of the Board of Directors (Vietnam) Ltd. and they have expressed their willingness to accept their re-appointment subject to their reacceptance policies and procedures.

Directors’ interest in the Company No contract of significance to which the Company was a party and ______in which a director of the Company had a material interest, whether Lee G. Lam directly or indirectly, subsisted at the end of the year or at any time Chairman and Independent Non-executive Director during the year. Ho Chi Minh City, Vietnam at no time during the year was the Company a party to any Date: May 27, 2009 arrangement to enable the Directors of the Company to acquire benefits by means of acquisition of shares in or debentures of the Company or any other body corporate.

| 14 | Vietnam equity holding 2009 ANNUAL REPORT SAIGON ASSET MANAGEMENT AUDITOR’S REPORT

To the Shareholders of Vietnam Equity Holding

We have audited the accompanying financial statements of Vietnam Equity Holding (“the Company”) which comprise the balance sheet as at 31 December 2008, and the related statements of income, changes in equity and cash flows for the year then ended and a summary of significant accounting policies and other explanatory notes.

Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance that the financial statements are free from material misstatement. an audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. an audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the accompanying financial statements give a true and fair view of the financial position of Vietnam Property Holding and its subsidiaries as at 31 December 2008 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

Ho Chi Minh City, Vietnam Date: May 27, 2009

SAIGON ASSET MANAGEMENT Vietnam equity holding 2009 ANNUAL REPORT | 15 | AUDITOR’S REPORT

BALANCE SHEET

Notes December 31, 2008 December 31, 2007 EUR EUR

ASSETS

Current assets

Cash and cash equivalents 6 5,830,167 49,009,587

Financial assets at fair value through profit and loss 7 33,601,751 2,983,817

Other receivables 137,119 73,821

Other current assets 2,029 573,163

Total assets 39,571,066 52,640,388

RESOURCES

Equity

Share capital 8 43,491,020 43,491,020

Share premium 9 7,881,004 7,881,004

Retained earnings (11,890,631) 641,986

Total Equity 39,481,393 52,014,010

Current liabilities

Other payables 10 89,673 626,378

Total Equity and liabilities 39,571,066 52,640,388

Net assets per share (EUR per share) 1.816 2.392

Source: Audited Report from Grant Thornton

| 16 | Vietnam equity holding 2009 ANNUAL REPORT SAIGON ASSET MANAGEMENT AUDITOR’S REPORT

STATEMENT OF CHANGES IN EQUITY

Share capital Share premium Retained earning Total Equity EUR EUR EUR EUR

Issuance of new shares 43,491,020 7,881,004 - 51,372,024

Net profit for the year - - 641,986 641,986

Balance at 31 December 2007 43,491,020 7,881,004 641,986 52,014,010

Balance at 1 January 2008 43,491,020 7,881,004 641,986 52,014,010

Net loss for the year - - (12,532,617) (12,532,617)

Balance at 31 December 2008 43,491,020 7,881,004 (11,890,631) 39,481,393

Source: Audited Report from Grant Thornton

STATEMENT OF INCOME Notes For the year ended Period from 9 August 2007 to 31 December 2008 31 December 2007 EUR EUR

Net changes in fair value of financial asset at fair value through profit and loss 11 (12,518,567) 819,285

General and administration expenses 12 (1,156,581) (229,390)

Profit/(Loss) from operations (13,675,148) 589,895

Finance income 13 1,894,470 178,832

Finance expense 14 (751,939) (126,741)

Profit before tax (12,532,617) 641,986

Corporate income tax 15 - -

Net profit (loss) (12,532,617) 641,986

Attributable to shareholders (12,532,617) 641,986

Attributable to minority interests - -

Earnings per share – basic and diluted (EUR per share) 16 (0.58) 0.04

Source: Audited Report from Grant Thornton

SAIGON ASSET MANAGEMENT Vietnam equity holding 2009 ANNUAL REPORT | 17 | AUDITOR’S REPORT

STATEMENT OF CASH FLOWS

December 31, 2008 Period from 9 August 2007 to December 31, 2007 EUR EUR

Cash flows from operating activities

Profit/ (loss) before tax (12,532,617) 641,986

Adjustments for:

(Gain)/ loss on revaluation of financial assets 12,955,742 (819,285)

Loss on foreign currency translation 769,668 126,741

Gain from disposal of investments (437,175) -

Interest and dividend income (1,894,470) (178,832)

Change in other receivables 636,064 (573,163)

Change in other payables (536,705) 197,424

Net cash flow used in operating activities (1,039,493) (605,129)

Cash flows from investing activities

Purchase of financial assets (45,490,619) (2,291,273)

Proceeds from disposal of financial assets 1,584,450 -

Interest received 953,385 172,794

Dividends received 812,857 -

Net cash outflow from investing activities (42,139,927) (2,118,479)

Cash flows from financing activities

Proceeds from shares issued - 53,167,678

Payment for placement fee - (1,434,483)

Net cash inflow from financing activities - 51,733,195

Net increase/(decrease) in cash and cash equivalents (43,179,420) 49,009,587

Cash and cash equivalents, beginning of the year 49,009,587 -

Cash and cash equivalents, end of the year 5,830,167 49,009,587

Source: Audited Report from Grant Thornton

| 18 | Vietnam equity holding 2009 ANNUAL REPORT SAIGON ASSET MANAGEMENT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1 General information 3 Summary of significant accounting policies Vietnam Equity Holding was incorporated in the Cayman Islands as a limited liability company. The registered office of the Company is at 3.1 Basis of presentation Deutsche Bank (Cayman) Limited at Boundary Hall, Cricket Square, The significant accounting policies that have been used in the PO Box 1984, Grand Cayman KY1-1104, Cayman Islands. Its shares preparation of these financial statements are summarized below. are listed on German stock exchanges (Frankfurt and XETRA) The financial statements have been prepared using the historical the investment objective of the Company is to achieve capital cost convention, as modified by the revaluation of investment appreciation by making equity investments in companies with property, leasehold land and certain financial assets and financial significant interests in Vietnam. Specifically, the Company intends liabilities, the measurement bases of which are described in the to invest in equity securities of state owned enterprises, private accounting policies below. companies, over-the-counter (“OTC”) companies, and listed The preparation of financial statements in accordance with IFRS companies and in debt securities. The Company aims to invest in a requires the use of certain accounting estimates and assumptions. diversified and balanced portfolio that would achieve above average Although these estimates are based on management’s best returns at an acceptable level of risk, give rise to long-term and short- knowledge of current events and actions, actual results may term returns, and be capable of yielding recurrent earnings and/or ultimately differ from those estimates. The areas involving a higher capital gains degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 4 to the financial statements. 2 Statement of compliance with IFRS and adoption of new and amended standards and interpretations 3.2 Functional and presentation currency 2.1 Statement of compliance with IFRS The financial statements are presented in Euro (EUR) (“the The financial statements have been prepared in accordance with presentation currency”) which is also the functional currency of the International Financial Reporting Standards (“IFRS”) as issued by the Company. International Accounting Standards Board (“IASB”). 3.3 Foreign currency translation 2.2 Changes in accounting policies Transactions arising in currencies other than the presentation currency of the Company are translated at exchange rates in effect on 2.2.1 Overall considerations the transaction dates. Monetary assets and liabilities denominated in The IASB and the International Financial Reporting Interpretations currencies other than the presentation currency are translated at the Committee have issued various standards and interpretations with prevailing exchange rates at the balance sheet date. Translation gains an effective date after the date of this financial information. The and losses and expenses relating to foreign exchange transactions Company has not elected for early adoption of the standards and are recorded in the statement of income. interpretations that have been issued as they are not yet effective. The 3.4 Interest income most relevant for the Company are IAS 1 (Revised 2007) “Presentation of the Financial Statements” (effective for periods beginning on or Interest income is recognized on a time proportion basis on the after 1 January 2009) and IFRS 8 “Operating Segments” (effective principal outstanding and at the applicable interest rate. for periods beginning on or after 1 January 2009). 3.5 Financial assets upon adoption of IAS 1 (Revised 2007), the Company will disclose its capital management objectives, policies and procedures in each Financial assets, other than hedging instruments, are divided into annual financial report and will have its capital movements and other the following categories: loans and receivables; financial assets at gains and losses presented separately in the statement of changes fair value through profit or loss; available-for-sale financial assets; in equity and statement of recognized income and expenses. Upon and held-to-maturity investments. adoption of IFRS 8, the Company will disclose segmental information Management determines the classification of its financial assets when evaluating performance and deciding how to allocate resources at initial recognition depending on the purpose for which the financial to operations. assets were acquired. Management re-evaluates this designation at the Directors do not anticipate that the adoption of these each reporting date. standards and interpretations will have a material impact on the All financial assets are recognized when, and only when, the financial statements in the period of initial application. Company becomes a party to the contractual provisions of the Adoption of IFRS 7, Financial Instruments: Disclosures instrument. When financial assets are recognized initially, they are iFRS 7 introduces new disclosures to improve the information measured at fair value or in the case of investments not at a fair about financial instruments. It requires the disclosure of qualitative value through profit or loss, directly attributable transaction costs. and quantitative information about exposure to risks arising from After initial recognition, the Company measures financial assets and financial instruments, including specified minimum disclosures derivatives that are assets, at their fair values, without any deductions about credit risk, liquidity risk and market risk, including sensitivity for transaction costs it may incur on sale of other disposal. analysis to market risk. The Company has applied IFRS 7 from the Derecognition of financial assets occurs when the rights to period beginning 9 August 2007. receive cash flows from the investments expire or are transferred

SAIGON ASSET MANAGEMENT Vietnam equity holding 2009 ANNUAL REPORT | 19 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

and substantially all of the risks and rewards of ownership have been period of realization, provided they are enacted or substantively transferred. At each balance sheet date, financial assets are reviewed enacted at the balance sheet date. Most changes in deferred tax to assess whether there is objective evidence of impairment. If assets or liabilities are recognized as a component of tax expense any such evidence exits, any impairment loss is determined and in the statement of income. Only changes in deferred tax assets or recognized based on the classification of the financial assets. liabilities that relate to a change in value of assets or liabilities that is The Company’s financial assets consist primarily of receivables and charged directly to equity are charged or credited directly to equity. financial assets at fair value through profit or loss. Receivables 3.7 Cash and cash equivalents all loans and receivables, except trustee loans, are non- Cash and cash equivalents include cash at bank and in hand as derivative financial assets with fixed or determinable pay¬ments that well as short term highly liquid investments such as money market are not quoted in an active market. After initial recognition these are instruments and bank deposits with an original maturity term of not measured at amortized cost using the effective interest method, less more than three months. provision for impairment. Any change in their value is recognized in profit or loss. The Company’s trade and most other receivables fall 3.8 Equity into this category of financial instruments. Discounting, however, is Share capital is determined using the nominal value of shares that omitted where the effect of discounting is immaterial. have been issued. Share premium includes any premiums received Significant receivables are considered for impairment on a on the initial issuing of the share capital. Any transaction costs case-by-case basis when they are overdue at the balance sheet associated with the issuing of shares are deducted from share date or when objective evidence is received that a specific premium, net of any related income tax benefits. counterparty will default Financial assets at fair value through profit or loss 3.9 Financial liabilities Financial assets at fair value through profit or loss include The Company’s financial liabilities consist of other payables. financial assets that are either classified as held for trading or are other payables are recognized initially at their fair value and designated by the entity to be carried at fair value through profit or subsequently measured at amortized cost, using the effective loss upon initial recognition. By definition, all derivative financial interest rate method. instruments that do not qualify for hedge accounting fall into this A financial liability is derecognized when the obligation under the category. Other financial assets at fair value through profit or loss liability is discharged or cancelled or expires. held by the Company include listed and unlisted securities. Any gain or loss arising from derivative financial instruments 3.10 Provisions, contingent liabilities and contingent assets is based on changes in fair value, which is determined by direct Provisions are recognized when present obligations will probably lead reference to active market transactions or using industry standard to an outflow of economic resources from the Company that can be valuation techniques where no active market exists. reliably estimated. A present obligation arises from the presence of a legal or constructive obligation that has resulted from past events. 3.6 Income taxes Provisions are not re¬cognized for future operating losses. Current income tax assets and/or liabilities comprise those obligations Provisions are measured at the estimated expenditure required to, or claims from, fiscal authorities relating to the current or prior to settle the present obligation, based on the most reliable evidence reporting periods that are unpaid at the balance sheet date. They are available at the balance sheet date, including the risks and calculated according to the tax rates and tax laws applicable to the uncertainties associated with the present obligation. Where there fiscal periods to which they relate based on the taxable profit for the are a num¬ber of similar obligations, the likelihood that an outflow year. All changes to current tax assets or liabilities are recognized as will be required in settlement is determined by considering the class a component of tax expense in the statement of income. of obligations as a whole. Long term pro¬vi¬sions are discounted to deferred income taxes are calculated using the liability method their present values, where the time value of money is material. on temporary differences. This involves the comparison of the all provisions are reviewed at each balance sheet date carrying amounts of assets and liabilities in the consolidated financial and adjusted to reflect the current best estimate of Company’s statements with their respective tax bases. In addition, tax losses management. available to be carried forward as well as other income tax credits to the Company does not recognize a contingent liability but the Company are assessed for recognition as deferred tax assets. discloses its existence in the financial statements. A contingent Deferred tax liabilities are always provided for in full. Deferred tax liability is a possible obligation that arises from past events whose assets are recognized to the extent that it is probable that they existence will be confirmed by uncertain future events beyond the will be able to be offset against future taxable income. However, control of the Company or a present obligation that is not recognized the deferred income tax is not accounted for if it arises from initial because it is not probable that an outflow of resources will be required recognition of an asset or liability in a transaction other than a to settle the obligation. A contingent liability also arises in the rare business combination that at the time of the transaction affects circumstance where there is a liability that cannot be recognized neither accounting nor taxable profit nor loss. because it cannot be measured reliably. deferred tax assets and liabilities are calculated, without a contingent asset is a possible asset that arises from past discounting, at tax rates that are expected to apply to their respective events that’s existence will be confirmed by uncertain future events

| 20 | Vietnam equity holding 2009 ANNUAL REPORT SAIGON ASSET MANAGEMENT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

beyond the control of the Company. The Company does not recognize been no sale that day will be valued at the closing bid price on the contingent assets but discloses their existence when inflows of relevant Valuation Day. Investments in unlisted securities for which economic benefits are probable, but not virtually certain. an active OTC market exists are stated at fair value based upon price quotations received from at least three independent brokers. 3.11 Related parties other unlisted securities, for which no active OTC market exists, Parties are considered to be related if one party has the ability to are valued at fair value using a valuation technique determined by the control the other party or exercise significant influence over the Company and in accordance with International Financial Reporting other party in making financial or operational decisions. Parties are Standards. considered to be related to the Company if: 1. directly or indirectly, a party controls, is controlled by, or is under 5 Segment reporting common control with the Company; has an interest in the Company that gives it significant influence over the Company; or has joint Segment information is presented in respect to the Company’s control over the Company; investment and geographical segments. The primary format, 2. a party is a jointly-control entity; investment segments, is based on the investment manager’s 3. a party is an associate; or management and monitoring of investments. Investments are 4. a party is a member of the key management personnel of the allocated into the following main segments: banking & financial, oil & Company. gas, chemical, pharmaceutical, infrastructure, F&B and other sectors 5. a close member of the family of any individual referred to in (1) and cash (including term deposits). and (4). to determine the geographical segments for assets the following rules are applied: 3.12 Segment reporting • Listed shares − place of primary listing; An investment segment is a group of assets that are subject to • Unlisted shares − place of incorporation of the issuer; risks and returns that are different from those of other business • Cash − place of deposit; segments. Segmental liabilities are not disclosed as they are immaterial. a geographical segment is a particular economic environment that is subject to risks and returns that are different from those of 6 Cash and cash equivalents segments operating in other economic environments. 2008 2007 EUR EUR 3.13 Earnings per share and net asset value per share The Company presents basic earnings (loss) per share (“EPS”) for its Cash in bank 611,346 22,709,587 ordinary shares. Basic EPS is calculated by dividing the profit or loss Term deposit in bank 5,218,821 26,300,000 attributable to the ordinary shareholders by the weighted average 5,830,167 49,009,587 number of ordinary shares outstanding during the year. Net asset value (NAV) per share is calculated by dividing the net asset 7 Financial assets at fair value through profit and value attributable to ordinary shareholders of the Company by the loss number of outstanding ordinary shares as at the balance sheet date. Net asset value is determined as total assets less total liabilities. 2008 2007 EUR EUR 4 Critical accounting estimates and judgements Ordinary shares – listed 20,763,792 - When preparing the financial statements the Company makes Ordinary shares – unlisted 12,837,959 2,983,817 estimates and assumptions concerning the future. The resulting Total financial assets at fair value accounting estimates will, by definition, seldom equal the related through profit or loss 33,601,751 2,983,817 actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

Impairment of other receivables The Company’s management determines the provision for impairment of other receivables on a regular basis. This estimate is based on the credit history of its debtors and prevailing market conditions.

Fair value of financial instruments Listed securities are valued at their closing bid prices as of the last official close of the applicable exchange on the relevant Valuation Day. Securities traded on a securities exchange for which there has

SAIGON ASSET MANAGEMENT Vietnam equity holding 2009 ANNUAL REPORT | 21 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

8 Share capital 12 General and administration expenses

2008 2007 2008 2007 Number of Number of EUR EUR shares EUR shares EUR Management fees (Note 17) 943,252 197,366 Authorized: Director fees (Note 17) 16,472 2,813 Ordinary Professional fees 62,274 6,134 shares General administration expenses 55,733 22,024 of EUR Other expenses 78,850 1,053 2 each 50,000,000 100,000,000 50,000,000 100,000,000 1,156,581 229,390

Issued and fully paid: At 1 January 21,745,510 43,491,020 - - 13 Financial income

New shares 2008 2007 issued - - 21,745,510 43,491,020 EUR EUR At 31 Interest income 88,836 178,832 December 21,745,510 43,491,020 21,745,510 43,491,020 Dividend 941,085 - Interest from bank deposit 864,549 - 1,894,470 178,832 9 Share premium Share premium represents the excess of consideration received over the par value of shares issued less the transaction costs associated 14 Financial expense with the issuance of shares. 2008 2007 2008 2007 EUR EUR EUR EUR Realized loss from foreign 1 January 7,881,004 - exchange difference 29,275 - Share premium during the year - 9,744,441 Unrealized loss from foreign Placement fees - (1,863,437) exchange difference 722,664 126,741 31 December 7,881,004 7,881,004 751,939 126,741

10 Other payables 15 Corporate income tax The Company is domiciled in the Cayman Islands. Under the current 2008 2007 laws of the Cayman Islands, there is no income, state, corporation, EUR EUR capital gains or other taxes payable by the Company. Payables to related party- Management fee (see note 17) 65,738 171,144 16 Earnings per share Payables to related party- Placement fee (see note 17) - 428,954 (a) Basic Other payables 23,935 26,280 Basic earnings per share is calculated by dividing the profit (loss) 89,673 626,378 attributable to shareholders of the Company by the weighted average number of ordinary shares outstanding during the period.

11 Net changes in fair value of financial assets at fair December 31, December 31, value through profit or loss 2008 2007

2008 2007 Profit/(loss) attributable EUR EUR to equity holders of Unrealized gain/(loss) (12,955,742) 819,285 the Company (12,532,617) 641,986 Realized gain 437,175 - Weighted average number of (12,518,567) 819,285 ordinary shares outstanding 21,745,510 16,586,781 Basic earnings per share (EUR per share) (0.58) 0.04

| 22 | Vietnam equity holding 2009 ANNUAL REPORT SAIGON ASSET MANAGEMENT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(b) Diluted The Company is exposed to a variety of financial risks: market Diluted earnings per share is calculated by adjusting the weighted risk (including currency risk, interest rate risk, and price risk); credit average number of ordinary shares outstanding to assume conversion risk; and liquidity risk. The Company’s overall risk management of all dilutive potential ordinary shares. The Company has no category programme focuses on the unpredictability of financial markets and of potentially dilutive ordinary shares. Therefore, diluted earnings seeks to minimize potential adverse effects on the Company’s financial per share is equal to basic earnings per share. performance. The Company’s risk management is coordinated by its Investment Manager who manages the distribution of the assets to achieve the investment objectives. The most significant financial risks to which the Company is exposed are described below: 17 Related party transactions

Foreign currency risk Management fees The Company invests in financial instruments and enter into The Company is managed by Saigon Asset Management Corporation transactions denominated in currencies other than its reporting (the “Investment Manager”), an exempted company formed under currency of Euro. Therefore, the Company is exposed to risks that the the law of the Cayman Islands, and changed its old name from Anpha exchange rate of its currency relative to other currencies may change Capital Group on 3 July 2008. Under the Management Agreement and have an adverse effect on the value of the Company’s assets or (the “Management Agreement”) dated 1 October 2007 between liabilities denominated in currencies other than Euro. the Company and Investment Manager. The Investment Manager is the Company may enter into arrangements to hedge currency entitled to receive a management fee based on the net asset value of risks if such arrangements become desirable and practicable in the the Company, payable monthly in arrears, at an annual rate of 2%. future in the interest of efficient portfolio management. total management fees for the year amounted to EUR943,252 The Company’s exposure to fluctuations in foreign currency with EUR65,738 in outstanding accrued fees due to the Investment exchange rates at the balance sheet date were as follows: Manager at the end of the period. December 31, December 31, Performance fees 2008 2007 In accordance with the Management Agreement, the Investment EUR EUR Manager is also entitled to receive a performance fee equal to Assets denominated in 20% of the annual increase in Net Asset Value over an annualised Vietnamese Dong 34,989,005 6,427,976 compounding hurdle rate of 8%. no performance fee is payable for the period due to the non- Price risk achievement of the above requirements. Price risk is the risk that the value of the instrument will fluctuate as a result of changes in market prices, whether caused by factors Placement fees specific to an individual investment, its issuer or all factors affecting When raising capital through the issuance of new Ordinary Shares, a all instruments traded in the market. As the majority of the Company’s commission equal to 3.5% of the subscription price multiplied by the financial instruments are carried at fair value with fair value changes total number of the shares allotted by the Company on admission is recognized in the income statement, all changes in market conditions payable by the Company to the Investment Manager. The Investment will directly affect net investment income. Manager is responsible for paying placing agents that are engaged in the Company’s equity securities are susceptible to market price respect to such subscriptions. The net proceeds of share subscriptions risk arising from uncertainties about future values of the investment are recorded after netting off placement fees. securities. The Investment Manager provides the Company with investment recommendations that are consistent with the Company’s Director fees objectives. The Investment Manager’s recommendations are The aggregate director fees payable to the directors of the Company approved by an Investment Committee before investment decisions for the year ended 31 December 2008 was EUR16,472 (period from are implemented. 9 August 2007 to 31 December 2007: EUR2,813) all securities investments present a risk of loss of capital. The Investment Manager manages this risk through the careful selection Acquisitions of unlisted shares from related parties of securities and other financial instruments within specified During the year, the Company acquired 264,000 shares of Phu My limits and by holding a diversified portfolio of listed and unlisted Bridge Company for EUR4,018,093 from Desmond Lin, managing instruments. In addition, the performance of investments held by director of the Investment Manager. The said transaction was the Company is monitored by the Investment Manager on a weekly presented to the Investment Committee and was approved based on and monthly basis and reviewed by the Board of Directors on a full disclosure of conflict of interest, reasonable due diligence and quarterly basis. competitive price valuation.

18 Risk management objectives and policies The Company invests in listed and unlisted equity instruments with the objective of achieving capital appreciation and providing investors with an attractive level of investment income from dividends.

SAIGON ASSET MANAGEMENT Vietnam equity holding 2009 ANNUAL REPORT | 23 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Cash flow and fair value interest rate risks Fair value The majority of the Company’s financial assets are non-interest December 31, 2008 March 2009 31, Movement bearing. The Company currently has no financial liabilities with EUR EUR EUR floating interest rates. As a result, the Company is not exposed to Financial assets at fair value through profit or loss: cash flow interest rate risk. Any excess cash and cash equivalents are Ordinary shares – invested at short-term market based interest rates. unlisted 12,837,959 12,548,920 (289,039)

Credit risk Ordinary shares – Credit risk is the risk that a counterparty will be unable to pay amounts listed 20,763,792 19,299,151 (1,464,641) in full when due. Impairment provisions are provided for losses that 33,601,751 31,848,071 (1,753,680) have been incurred by the Company at the balance sheet date. All transactions in listed securities are settled/paid for upon delivery using approved brokers. The risk of default is considered low, as 20 Comparative figures delivery of securities sold is only made once the broker has received The comparative figures for the statements of income, cash flow, payment. Payment is made for purchases once the securities have statement of changes in equity and related notes, included for been received by the broker. The trade will be unwound if either party comparative purpose are for the period from 9 August 2007 to 31 fails to meet its obligations. December 2007. the carrying amount of other receivables and loans represent the Company’s maximum exposure to credit risk in relation to its 21 Authorization of financial statements financial assets. The Company has no other significant concentrations The financial statements were authorized for issue by the Directors of credit risk. on May 27, 2009. in accordance with the Company’s policy, the Investment Manager monitors the Company’s credit position on a monthly basis.

Liquidity risk Liquidity risk is defined as the risk that the Company may not be able to settle or meet its obligations on time or at a reasonable price. The Company adopts its risk management guidelines which are designed to minimize its liquidity risk through: • Monitoring its exposure to illiquid or thinly traded investments and financial instruments, and • Applying limits to ensure there is no concentration of liquidity risk with a particular counterparty or market. the Company also regularly monitors current and expected liquidity requirements to ensure that the Company maintains sufficient reserves of cash to meet its liquidity requirements in the short and longer term.

19 Subsequent events Subsequent to the year ended 31 December 2008, global markets were sharply affected by the world wide financial crisis. As the extent of the credit crisis became clear the market turmoil spread to emerging markets including the Vietnam stock market. As of the date of issuance of the financial information, the aggregate fair value of the Company’s financial assets at fair value through profit or loss has decreased to EUR 31,848,071 from the aggregate fair value of EUR33,601,751 as of 31 December 2008 . The decrease is mainly due to a general decline in share prices in Vietnam. The management believes that the fall is temporary and consequently no adjustment has been made in the financial information as at 31 December 2008 and for the year ended 31 December 2008. The details are as follows:

| 24 | Vietnam equity holding 2009 ANNUAL REPORT SAIGON ASSET MANAGEMENT

COPORATE INFORMATION

Directors Legal adviser to the Company as to US Auditors Lee G. Lam, Chairman and German law Grant Thornton (Vietnam) Company Ltd. Howard Golden Reed Smith LLP 28th Floor Saigon Trade Center Louis Nguyen 599 Lexington Avenue, 29th Floor 37 Ton Duc Thang Street, District 1 New York, New York 10022 Ho Chi Minh City USA Vietnam Registered Office c/o Deutsche Bank (Cayman) Limited Boundary Hall, Legal adviser to the Company as Administrator Cricket Square, to Cayman law Deutsche Bank (Cayman) Limited P.O. Box 1984, Appleby Boundary Hall, Grand Cayman KY1-1104 Clifton House, Fort Street Cricket Square, Cayman Islands PO Box 190 George Town P.O. Box 1984, Grand Cayman KY1 1104, Cayman Islands Grand Cayman KY1-1104, Cayman Islands

Investment Manager Saigon Asset Management Corporation Legal adviser to the Company as Custodian Military Bank Building Vietnamese law Deutsche Bank AG, Ho Chi Minch City Branch 75-77 Calmette St., Nguyen Thai Binh Ward, DC Law Floor 14, Saigon Centre District 1, HCMC, Vietnam Sun Wah Tower, Suite 2003 65 Le Loi Boulevard, District 1 115 Nguyen Hue Boulevard Ho Chi Minh City District 1, Ho Chi Minh City Vietnam Vietnam