WHAT HAPPENED IN VIETNAM ON WEDNESDAY 11 JAN 2012

WHAT HAPPENED IN VIETNAM

January 11, 2012

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A Member of Horizon Capital Group

MARKET COMMENTARY

BVH and MSN trading to the ceiling and helping VN Index extend its gain today. Liquidity was abysmal, with the two exchanges combining to have less than US$30mln of traded value.
HOSE gained 0.8% to 347.43 on US$20mln of traded value, a decrease of 16% from yesterday. 106 stocks rose and 109 fell. Blue chips were led by BVH, MSN (ceiling), PVD (+3.6%), STB (+2.9%), EIB (+2.7%) and DPM (+1.7%). VNM, VCB, CTG, HPG and SSI were flat while IJC (floor), VIC (-3.0%), REE (-2.5%), SJS (-1.3%) and VSH (-1.2%) negatively impacted the index. STB remained the most liquid ticker with US$3.2mln of traded value on cash market and US$1.9mln in put- through.
HNX dropped 0.5% to close at 55.88 on US$9.7mln of liquidity. Decliners equaled gainers. No blue chip traded to the downside. ACB, PVS, SHB and PVX stayed flat while KLS (+2.6%), VCG (+1.2%) and PGS (+1.2%) were advancers. KLS was the most liquid stock with US$892K of traded value on cash market while FLC saw US$899K in put-through.

HO CHI MINH EXCHANGE

VN Index	347.43			Change
Net change (point)	2.75	Total trading volume (x000 shares)	29,075	-20.47%
Percent change (%)	0.80	Total trading value (US$'000)	20,098	-15.99%

Movers

Advancers	106
Decliners	109
Unchanged	68

Top Gainers Top Losers Top Most Liquid (Order Matching)

Ticker Close Chg Chg Ticker Close Chg Chg Ticker Close Volume Value

VND VND % VND VND % VND shares US$

CIG 4,200 200 5.00 BSI 5,700 -300 -5.00 STB 17,900 3,729,860 3,204,354

FBT 4,200 200 5.00 MCG 5,700 -300 -5.00 JVC 18,900 1,145,550 1,003,780

EVE 21,200 1,000 4.95 NVT 1,900 -100 -5.00 EIB 15,000 1,060,460 747,560

TRA 46,800 2,200 4.93 TLG 15,200 -800 -5.00 VCB 20,600 583,520 582,919

BVH 40,600 1,900 4.91 ALP 7,800 -400 -4.88 HAG 18,300 660,090 576,938

HA NOI EXCHANGES

HNX Index

Net change (point) Percent change (%)

55.88

-0.27

-0.48

Change

UPCoM Index 33.48

Net change (point) 0.06

Percent change (%) 0.18

11:06 AM

Volume (x000 shares) 24,045

Value (US$'000) 9,677

Movers

-14.90%

-20.81%

Volume (share)

Value (US$)

45,200

5,491

Advancers	108
Decliners	108
Unchanged	177

Top Gainers Top Losers Top Most Liquid (Order Matching)

Ticker Close Chg Chg Ticker Close Chg Chg Ticker Close Volume Value

VND VND % VND VND % VND shares US$

SDP 4,700 300 6.93 WCS 30,600 -2,300 -6.91 KLS 7,800 2,361,600 892,332

VDL 24,700 1,600 6.93 KTS 36,600 -2,700 -6.87 VND 6,300 2,043,300 632,488

WSS 3,100 200 6.88 CTC 7,100 -500 -6.58 BVS 8,600 1,209,700 502,576

ADC 6,500 400 6.78 B82 8,600 -600 -6.52 PVX 6,500 1,498,000 479,611

NST 10,900 700 6.78 S12 4,400 -300 -6.38 DBC 14,300 649,200 449,678

NEWS SUMMARY

Industrial News

Three scenarios for Vietnam's 2012 economic growth - Three possible scenarios for the country's economic growth this year were unveiled on January 10 by the National Financial Supervision Commission (NFSC). In the first scenario, which is considered "a good one," Vietnam's gross domestic product (GDP) growth will reach 6% to 6.3%, while inflation is restricted to 8% to 10%. The state budget's overspending in 2012 is around 4.8% of GDP and government debt would be around

58.8% of GDP. In the second premise, or the "average scenario," the country's GDP growth would stand at 5.6% to 5.9% and the state budget overspending expected to be 4.8% of GDP, the government debt would top 59.2%of GDP. The NFSC said this is the most likely scenario, as the expected growth is close to the country's real potential. Finally, in the worst situation, with the global economy likely to be in a depression, Vietnam's economy would also be greatly affected, in terms of both

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economic and export growth. Under such assumptions, the committee said Vietnam's GDP would only reach 5.2% to 5.5%, and government debt would be around 60.4% of GDP. (Tuoi tre)

Lending interest rate forecast to fall to 15% - 17% in 2012 - According to Mr. Pham Hong Hai, Monetary and Capital

Market Director of HSBC Vietnam, the lending interest rate in 2012 may fall to about 15% - 17% p.a. The faster or slower decline in interest rates will depend on the health of the entire economy. If in the near future, many companies cannot continue to tolerate difficulties and go bankrupted, interest rates will be reduced more quickly. In addition, the forex rate in
2012 is predicted to be more stable than that of 2011 thanks to the market-based regulations. HSBC representative also noted that there will be not too big adjustment phenomenon for forex rate as the previous year. The forex rate may be adjusted from 3% to 4% but the adjustment will slowly and gradually. (Lao dong)

Vietnam expected to export US$2.1bln rubber in 2012 - Vietnam forecasted to earn US$2.1bln from rubber exports in

2012, falling 36.36% from 2011, according to the Ministry of Agriculture and Rural Development (MARD). However, the country expected to increase the ship volume to 880,000 tons in 2012 from 846,000 tons in 2011. Vietnam currently has a total of 834.200 hectares of rubber plantation, of which, 811.600 hectares are ready for harvests. (Vietnam Business News) Auto sales may drop 20% this year - The auto sales volume of the Vietnam Automobile Manufacturers Association (VAMA)'s members would decline by 20% this year, given the new policy and other economic difficulties. Starting from this year, the vehicle registration fees are adjusted up to 20% in Hanoi and 15% in HCMC, together with the increased license plate fees of VND20mln (US$957). This will push up the total costs to own a car, and drag down the market demand accordingly. Moreover, given the Government's target to sacrifice economic growth to curb inflation this year, the auto market will face more challenges and hardly record any significant growth compared to 2011. (Saigon Times)

Market News

HOSE, HNX to stop trading on January 23-27 for Tet holiday - The HOSE and HNX announced that both exchanges will stop trading from January 23 to January 27 this year on occasion of Tet holiday, Vietnamese traditional New Year.

Transactions will be resumed from Monday, January 30, 2012. (HOSE, HNX)

Corporate News

ANZ Bank successfully sold out 103mln shares of STB - Sacombank (STB) recently announced the transaction of major holder ANZ Bank. Accordingly, ANZ Bank successfully sold out 103mln shares of STB. The transaction was carried out from January 9 to January 10, 2012. The sold amount accounts for 9.61% of STB's chartered capital. The buyer in this deal is Eximbank (EIB). Besides, as of Dec 12, 2011, STB already bought 42.7mln shares of its registered amount. STB rose 2.9% to close at VND17,900 (US$0.86) and EIB rose 2.7% to close at VND15,000 (US$0.72).

VCB completed the sale of 15% stake to Mizuho - Vietnam Joint Stock Bank for Foreign Trade (Vietcombank or VCB)

announced that the bank sold 347,612,562 shares to Japanese bank Mizuho at VND34,000 (US$1.63) per share. Total proceeding of the sale was more than VND11.8trln (US$564.6mln), and Mizuho completed the payment to VCB at its account in Standard Chartered Bank. VCB was unchanged at VND20,600 (US$0.99).

DPR's pretax profits doubled its full year target in 2011 - Dong Phu Rubber JSC (DPR) announced its business result in

2011 with revenues of VND1.93trln (US$92.3mln) and pre-tax profits of VND 920 (US$44mln), surpassing by 46% and 108%
of its full year targets, respectively. DPR fell 2.2% to close at VND45,000 (US$2,15).

OceanBank earned pretax profits of VND640bln (US$30.6mln) in 2011 - Ocean Commercial Joint Stock Bank reached pretax profits of VND640bln (US$30.6mln) in 2011, fulfilling 80% of the year's plan. Total outstanding loans achieved

VND19.2trln (US$918.7mln), up 10% on year. Current chartered capital is VND4trln (US$191.4mln), growing 15% y-o-y. The
bank's bad debt ratio was 2% by the end of 2011. Late last year, OceanBank was chosen as one of three Vietnamese banks in top 100 banks with a safe balance sheet in Asia Pacific by Asian Banker Magazine.

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