AFC Vietnam Fund AFC Asia Frontier Fund CONFIDENTIAL January 2017 - - PowerPoint PPT Presentation

CONFIDENTIAL

AFC Asia Frontier Fund September 2013 AFC Vietnam Fund January 2017

2

Most new funds are launched when markets are “hot” and close to their highs We see opportunities as the market & economy are at the beginning of a new cycle

Viet Capital - Hanoi Index May 2006 – December 2016

AFC Vietnam Fund

AFC Vietnam Fund Launch

TABLE OF CONTENTS

Executive Summary 4 Why Vietnam 5 Investment Strategy 17 AFC Vietnam Fund 20 Fund Performance 21 Directors & Shareholders 23 Awards 28 Contact Information 29 Disclaimer 30 Appendix 31

3 AFC Vietnam Fund

EXECUTIVE SUMMARY

Fund Objective

• Capture the value of growth companies in Vietnam; especially in the small to medium size

company segment Opportunity

• Vietnams GDP growth is accelerating again since H2 2013 and is expected to grow at over

6% in 2017.

• Banking reform is under way, such as e.g. the resolution for NPL’s
• Strong FDI inflows are helping to transform Vietnam to a higher value added

manufacturing destination

• Low oil prices are beneficial for Vietnam and are helping to increase consumer spending
• VND - Currency expected to remain stable.

Potential

• We believe to achieve a significant capital appreciation for at least the next 4 - 6 years.

4 AFC Vietnam Fund

5

A Land of Opportunities Valuations

• Vietnam’s overall valuation looks extremely compelling versus its regional peers, but listed

“Small/Medium Caps” offer outstanding value

• Reaching the old highs in the next economic and stock market cycle would mean a potential
• f several hundred per cent, supported by fundamentals

Growth Prospects

• Very competitive labour costs, but rising individual wealth at CAGR 13.50% over the past 10

years

• High foreign remittances of around USD 12bn in 2016
• FDI disbursement grew by 9% and reached USD 15.8bn in 2016

AFC Vietnam Fund

WHY VIETNAM

6

Strong Fundamentals will Support Growth

• Sustainable GDP Growth
• GDP is accelerating again at 6.2% 2016, after declining from 8.5% (2007) to 5% (2012)
• Competitive Labour Costs
• Low wages with increasing productivity and improvements in human capital
• Inflation under Control
• The government managed to keep inflation below 5% at 4.7% in 2016 (recent highs in

2011 at 18.7% and in 2008 at 23.1%)

• Interest Rates Came Down
• Average lending rate came down from over 20% (2011) to 7.75% (2016)
• Improving Trade Balance
• Trade balance improved from USD -18bn (2008) to USD +2.6bn (2016)
• Foreign Reserves Increasing
• Foreign reserves increased from USD 12.5bn (2010) to approx. USD 41bn 2016
• Currency expected to remain stable versus USD

AFC Vietnam Fund

WHY VIETNAM

7 AFC Vietnam Fund

Competitive Labour Costs

Worldbank

WHY VIETNAM

8.48 4.63 3.87 1.25 1.21 1.19 0.73 0.56 0.30 0.30 Japan South Korea Hong Kong Malaysia Thailand China Philippines Indonesia Vietnam Laos

Minimum Hourly Wage (USD)

Singapore Hong Kong Korea Germany Switzerland Vietnam United States Thailand Indonesia

300 350 400 450 500 550 600 1,000 10,000 100,000

Average PISA Score GDP per Capita (current USD)

PISA Score

• Log. (PISA Score )

8 AFC Vietnam Fund

Increasingly Educated Population

OECD - PISA 2015 – assessed the competencies of 15 year olds in 72 countries / GDP per Capita 2015 (current USD); source: Worldbank

WHY VIETNAM

552 533 529 524 519 508 506 502 502 500 496 496 492 488 485 483 415 395

Singapore Hong Kong Japan Canada Korea Germany Switzerland Vietnam Australia United Kingdom France Sweden Austria United States Italy Luxembourg Thailand Indonesia

PISA 2015 - mean score of Mathematics, Reading & Science Pisa Score / GDP per Capita (current USD)

Vietnam Consumer Confidence

9 AFC Vietnam Fund

WHY VIETNAM

Bloomberg / ANZ Roy Morgan / AFC

91.0 61.2 58.4 98.2

52.0 57.0 62.0 67.0 72.0 77.0 82.0 87.0 92.0 97.0 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Vietnam Indonesia China Hong Kong Singapore New Zealand Australia India Thailand Taiwan South Korea

10

Vietnam is implementing several Free Trade Agreements, and is negotiating

• thers, such as the Regional Comprehensive Economic Partnership

WHY VIETNAM

WTO Center

AFC Vietnam Fund

15.8 27.8 0.0 5.0 10.0 15.0 20.0 25.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

FDI & Remittances 2005 - 2016

FDI Disbursements Overseas Remittances Total

Strong FDI Disbursements and Overseas Remittances

11 AFC Vietnam Fund

WHY VIETNAM

General Statistics Office of Vietnam

USD bn

• The

disbursement

• f

foreign direct investment (FDI) last year reached a record level with USD 15.8 billion. This achievement is expected to reiterate in 2017

• Vietnam received about USD 12bn worth of

inward remittances in 2016 from 5 million Vietnamese residing in 103 countries around the world, most of which has been invested in production and business activities

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Compelling Valuations (January 2017)

AFC Vietnam Fund

Bloomberg

WHY VIETNAM

P/E P/B Dividend Yield (%) AFC Vietnam Fund 9.44 1.6 6.4 Indonesia 24.0 2.4 1.5 Philippines 19.9 2.4 1.8 Thailand 17.1 1.9 3.1 Malaysia 16.8 2.4 3.1 Singapore 12.8 1.2 3.6

Vietnam - Ho Chi Minh

16.5 2.0 3.0

Vietnam - Hanoi

9.0 0.9 3.5

6.4% 6.2% 5.2% 5.4% 6.0% 6.7% 6.2% 6.5%

2010 2011 2012 2013 2014 2015 2016 2017F

Yearly GDP Growth

Agriculture, forestry, and fishery Industry & Construction Services Yearly GDP Growth

4.74% 8.50% 7.00%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

Vietnam Interest Rates and Inflation

CPI (y-o-y) Lending rate Deposit rate

13 AFC Vietnam Fund

GDP Growth - Inflation under control

Worldbank / General Statistics Office of Vietnam

WHY VIETNAM

14 AFC Vietnam Fund

Increasing Foreign Reserves will Support Currency & Balance of Payments

Worldbank

WHY VIETNAM

• 6.60
• 4.30
• 0.60

7.00 8.80 6.00 1.00 2009 2010 2011 2012 2013 2014 2015

Current Account Balance (USD bn)

• 10.95
• 12.60
• 9.80

0.80 0.90 2.00

• 3.20

2.6 2009 2010 2011 2012 2013 2014 2015 2016

Trade Balance (USD bn)

50.9% 49.0% 50.0% 53.2% 56.8% 62.2% 63.8% 64.4% 28.3% 27.8% 27.1% 26.4% 25.8% 28.9% 31.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 20 40 60 80 100 120 140 2010 2011 2012 2013 2014 2015e 2016e 2017e

Public Debts (Foreign & Domestic) in %

• f GDP

Foreign Debt Domestic Debt Public Debt / GDP Foreign Debt / GDP 90% 50% 38% 36% 56% 71% 75% 61% 66% 24 17 13 14 24 32 36 34 41 10 20 30 40 50 0% 20% 40% 60% 80% 100% 2008 2009 2010 2011 2012 2013 2014 2015 2016

Foreign Reserves in % of Foreign Debts

Foreign Reserves in % of Foreign Debt Foreign Reserves (USD bn)

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Improving Business Environment Government to Support Economic Recovery

• Relaxation of Foreign Ownership Limits, allowing foreign investors to buy up to 100 percent
• f stocks from companies in non-strategic sectors
• Relaxation of the rules on foreign ownership of property
• Tax Cuts for Individuals and Corporates
• Stimulus Packages for various Industry Sectors
• Restructuring of SOE’s (State Owned Enterprises)
• Improving Banking Regulatory Framework
• Better Supervision and Severe Punishment of Banking Misconduct
• Lower Lending Rates
• To keep NPL ratio below 3% and credit growth target at 18% - 20% range
• Visa exemption for foreign visitors

AFC Vietnam Fund

WHY VIETNAM

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Improving Business Environment

• Strong Foreign Investments into Manufacturing (Samsung alone ~USD 15bn)
• Key Sectors: Electronics, Textile and Energy
• TPP, ASEAN and other Free Trade Agreements will support Economy
• Political Stability
• Main Risks
• External economic or political shocks
• Vietnam will need to continue to drive economic reforms and also improvements in

labour productivity will need to keep the same pace

AFC Vietnam Fund

WHY VIETNAM

INVESTMENT STRATEGY

Value Based Bottom Up Stock Selection

• In-house and third party research to identify undervalued companies
• Self-developed Fundamental-Quantitative model
• Company visits

Risk Mitigation

• In-depth due diligence of investment opportunities
• The fund is well diversified and typically invests in 60 to 90 stocks across various sectors
• Investment limit per position max 9% with top-slicing at 19%
• Top 5 holdings have a weighting of around 11%

Cash

• Not fully invested in uncertain times and/or excessive valuations
• Holding cash will allow the fund to take advantage of opportunistic investments when they

arise (momentum / news driven)

17 AFC Vietnam Fund

INVESTMENT STRATEGY

18 AFC Vietnam Fund

Fundamental with quantitative

• verlay

Stock Analysis Dynamic Optimisation Process Portfolio Construction Managing Risks; aligning them with Investment Conviction Portfolio Monitoring

Investment Process

• Our stock selection process is driven by a fundamental approach, to which the team

applies a quantitative overlay in a controlled manner. Our core investment process does not target any particular style bias and aims to outperform in most market environments.

INVESTMENT STRATEGY

Example of Typical Equity Investments Portfolio Sector Weightings as of 31st December 2016

19 AFC Vietnam Fund

Industrials 26.0% Healthcare 3.9% Consumer Discretionary 20.5% Energy 3.7% Consumer Staples 14.5% Communications 3.4% Materials 13.7% Utilities 3.3% Financials 8.7% Cash 2.3%

Market Cap USD (m) P/E P/B

• Div. Yield

Pay Out Ratio Sector Agriculture Bank Insurance 35 8.5 1.1 5.7% 56% Financials Dinh Vu Port Inv. & Development 97 8.6 2.6 5.7% 48% Industrials Vietnam Fumigation 43 6.7 1.4 6.3% 46% Agri Chemicals Bao Viet Securities 48 7.9 0.8 0.0% 0.0% Financials Petro Vietnam Technical Services 564 6.7 1.3 4.4% 29% Energy

20 AFC Vietnam Fund

AFC VIETNAM FUND

21 AFC Vietnam Fund

FUND PERFORMANCE

NAV as of 31st December 2016 NAV USD 1,635.99 Since Inception +63.60% Inception Date 23/12/2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2013 USD

+2.37% +2.37%

2014 USD

+8.75% +4.50% +2.18%

• 4.65%
• 0.32%

+1.45% +1.86% +5.49% +3.87% +2.83% +2.50% +0.60% +32.50%

2015 USD

+0.44% +1.76%

• 0.96%

+1.93%

• 0.48%

+0.06% +0.22%

• 4.57%

+1.18% +6.90%

• 1.82%

+0.25% +4.62%

2016 USD

• 0.10%

+3.30% +1.28% +3.17% +1.40% +4.97% +3.00% +0.13% +0.11%

• 1.83%

+0.88%

• 1.76%

+15.29%

Monthly Performance (Net) - AFC Vietnam Fund

22 AFC Vietnam Fund

FUND PERFORMANCE

Monthly Performance (Net) - AFC Vietnam Fund

900 1000 1100 1200 1300 1400 1500 1600 1700 AFC Vietnam Fund USD (Net) VN Index (USD)

23 AFC Vietnam Fund

Vicente Nguyen, Fund Manager of AFC Vietnam Fund, has over 10 years of experience in finance. Prior to joining Asia Frontier Capital (Vietnam) Ltd., Vicente was the CEO of HVS Securities, a brokerage company in HCMC. He also spent several years at the HCMC office of Mirae Asset Group, a global investment management firm, as an Investment Manager. Vicente holds an MBA from Ecole de Management Strasbourg in France and a Bachelor diploma in audit and accounting from Ho Chi Minh City University of Economy, Vietnam.

SHAREHOLDER OF ASIA FRONTIER CAPITAL (VIETNAM) LTD.

24 AFC Vietnam Fund

Andreas Vogelsanger, CEO / Head Marketing of AFC Vietnam Fund, has over 25 years of wide-ranging experience with leading institutions in the finance industry. Prior to joining AFC Vietnam Fund Andreas was a Founding Partner and Chairman of a small corporate finance boutique in Bangkok and he worked for top-level investment banks, hedge funds and private banks in Zurich, Geneva, London, Hong Kong and Singapore. He is passionate in finding the best value solutions for clients in tailoring an optimal investment proposition. Andreas was awarded an AMP diploma from Wharton Business School, University of Pennsylvania and he also holds CEFA (Certified European Financial Analyst and Portfolio Manager) and FRM (Financial Risk Manager) diplomas.

DIRECTOR & SHAREHOLDER OF ASIA FRONTIER CAPITAL (VIETNAM) LTD.

25 AFC Vietnam Fund

Thomas Hugger, COO of AFC Vietnam Fund and Founder of Asia Frontier Capital, has spent 27 years in private banking where he specialized in managing portfolios of listed and unlisted equities. He has been investing in Asian and African Frontier Markets since 1993. He is the former Managing Partner, CFO & COO of Leopard Capital; and was previously a Managing Director and Head of Portfolio Management at LGT Bank in Hong Kong. He also held senior investment positions at Bank Julius Baer in Zurich and Hong Kong. Mr. Hugger was the founding shareholder

• f one of the largest brokerage companies in Bangladesh. He is also a

Certified Financial Investment Analyst (CFIA) and Investment Adviser (Switzerland) and a Certified European Federation of Financial Analysts Societies (EFFAS) Financial Analyst.

DIRECTOR OF ASIA FRONTIER CAPITAL (VIETNAM) LTD.

Our Team

Thomas Hugger, CEO and Fund Manager, has spent 27 years in private banking and has been investing in Asian and African Frontier Markets since

• 1993. He is the former

Managing Partner, CFO & COO of Leopard Capital; and was previously a Managing Director and Head of Portfolio Management at LGT Bank in Hong Kong. Mr. Hugger was the founding shareholder of one of the largest brokerage companies in Bangladesh. He is also a Certified Financial Investment Analyst (CFIA) and Investment Adviser (Switzerland) and a Certified European Federation of Financial Analysts Societies (EFFAS) Financial Analyst. Lord Fraser of Corriegarth, Director, is a graduate of St John's College, Oxford after which he held numerous posts in the financial sector both in the City

• f

London and

• elsewhere. He has previously held positions as;

CEO of Baring Securities in the UK, Chairman of Equity Partners Ltd., a Bangladesh investment bank, as well as Chairman of Bridge Securities, a quoted Korean company, amongst other

• posts. At present he is a global investor based

in London.

• Dr. Marc Faber, is CEO, investment advisor

and fund manager of Marc Faber Limited. He is the publisher of a widely read monthly investment newsletter The Gloom, Boom and Doom report which highlights global investment opportunities.

• Dr. Faber is

respected around the world for his market forecasts over the past three decades.

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SHAREHOLDERS OF ASIA FRONTIER CAPITAL LIMITED

AFC Vietnam Fund

AWARDS

27 AFC Vietnam Fund

28

ASIA FRONTIER CAPITAL (Vietnam) LTD.

c/o Elian Fiduciary Services (Cayman) Limited 89 Nexus Way Camana Bay Grand Cayman KY1-9007 Cayman Islands Tel: +852 3904 1015 Fax: +852 3904 1017 Email: info@asiafrontiercapital.com Investment Enquiries: Andreas Vogelsanger Mobile: +66 84435 7472 Email: av@asiafrontiercapital.com Skype: andreasvogelsanger

AFC Vietnam Fund

CONTACT INFORMATION

*The representative of the Fund in Switzerland is Hugo Fund Services SA, 6 Cours de Rive, 1204 Geneva. The distribution of Shares in Switzerland must exclusively be made to qualified investors. The place of performance and jurisdiction for Shares in the Fund distributed in Switzerland are at the registered office of the Representative.

29

DISCLAIMER

This Presentation is presented solely for purposes of discussion to assist prospective investors in determining whether they have a preliminary interest in the investment opportunity described herein. Under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy, any security or other interest in AFC Vietnam Fund, AFC Asia Frontier Fund, AFC Umbrella Fund or any other fund related thereto (the “Fund”). Offers and sales of interests in the Fund will not be registered under the laws of any jurisdiction and will be made solely to qualified investors under all applicable laws. Potential investors must read the entire Offering Memorandum delivered by the Fund and the disclosure in this Subscription Agreement. Nothing contained herein shall be deemed to be binding against, or to create any obligations or commitment on the part of, any potential investor or the Asia Frontier Capital (the “Fund Sponsors”). The Fund Sponsors reserve the right, in their sole and absolute discretion with or without notice, to alter the terms or conditions of this Presentation and the Fund and/or to alter or terminate the potential investment opportunity described herein. Potential investors are not to construe this Presentation as investment, legal or tax advice. Prior to making any potential investment, potential investors should consult with their own legal, investment, accounting, regulatory, tax and other advisors to determine the consequences of the potential investment opportunity described herein and to arrive at an independent evaluation of such potential investment opportunity. By accepting this Presentation, the recipient agrees not to copy, distribute, discuss or otherwise disclose this Presentation or the contents hereof (including the potential investment opportunity described) or any other related information provided by the Fund Sponsors or by its agents to any person other than employees of recipient evaluating this potential investment opportunity on recipient’s behalf without the prior written consent of the Fund Sponsors. While the information contained herein has been obtained from various sources which the Fund Sponsors believe, but does not guarantee, to be reliable, the Fund Sponsors do not represent that it is accurate or complete and it should not be relied upon as such. No person has been authorized to give any information or make any representation or warranty regarding the subject matter hereof, either express or implied, and, if given or made in this Presentation, in other materials or verbally, such information, representation or warranty cannot and should not be relied upon nor is any representation or warranty made as to the accuracy, content, suitability or completeness

• f the information, analysis or conclusions or any information furnished in connection herewith contained in this Presentation and it is not to be relied upon as a substitute for independent review of the underlying documents,

available due diligence information and such other information as prospective investors may deem appropriate or prudent to review. The Fund Sponsors, their agents, their respective affiliates, and each of their respective shareholders, members, officers, directors, managers, employees, counsel, advisors, consultants and agents (“Representatives”), expressly disclaim any and all liability for express or implied representations or warranties that may be contained in, or for omissions from or inaccuracies in, this Presentation or any other oral or written communication transmitted or made available to a prospective investor or its Representatives. Without limiting the generality of the foregoing, nothing contained herein is or shall be relied upon as a promise or representation as to any matter, including, without limitation, the future performance of the potential investment opportunity described herein. None of the Fund Sponsors, their agents, or their respective Representatives is under any obligation to correct any inaccuracies or omissions in this Presentation. Each prospective investor will have the sole responsibility for verifying the accuracy of all information furnished in this Presentation and in any other due diligence information furnished to a prospective investor, and each prospective investor shall have the sole responsibility for determining the value of the potential investment based on assumptions said prospective investor believes to be reasonable. Representatives will from time to time have long or short positions in, act as principal in, and buy or sell, the securities, referred to in this document. There shall be no recourse against the Fund Sponsors or any of their Representatives in the event of any errors or omissions in the information furnished, the methodology used, the calculations of values or conclusions. Without limiting the generality of the foregoing, any historical information or information based on past performance included herein is for informational purposes only, has inherent limitations and is not intended to be a representation, warranty or guarantee of future performance. All of the information presented herein is subject to change without notice. Actual returns to potential investors may be lower than the figures shown herein. Projected performance data shown constitutes “forward-looking information” which is based on numerous assumptions and is speculative in nature. Actual results may vary significantly from the values and rates of return projected herein. There can no assurance that the Fund will realize its rate of return objectives or return of investors’ capital. Potential investors should have the financial ability and willingness to accept the risks (including without limitation the risk of loss and lack of liquidity) characteristic of investments in entities such as the Fund. AN INVESTMENT IN THE FUND WILL NOT BE APPROPRIATE FOR ALL INVESTORS. INTERESTS IN THE FUND WILL INVOLVE A HIGH DEGREE OF RISK AND ARE INTENDED FOR SALE ONLY TO SOPHISTICATED INVESTORS WHO ARE CAPABLE OF UNDERSTANDING AND ASSUMING THE RISKS INVOLVED. INVESTORS MAY LOSE ALL OR SUBSTANTIALLY ALL OF THEIR INVESTMENT. THE INTERESTS IN THE FUND HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE APPLICABLE SECURITIES LAWS OF ANY US. STATE OR ANY NON-U.S. JURISDICTION, AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY SUCH APPLICABLE LAWS. INTERESTS IN THE FUND HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE US. SECURITIES AND EXCHANGE COMMISSION OR BY THE SECURITIES REGULATORY AUTHORITY OF ANY STATE OR ANY OTHER RELEVANT JURISDICTION, NOR HAS ANY OTHER AUTHORITY OR COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL. *The representative of the Fund in Switzerland is Hugo Fund Services SA, 6 Cours de Rive, 1204 Geneva. The distribution of Shares in Switzerland must exclusively be made to qualified investors. The place of performance and jurisdiction for Shares in the Fund distributed in Switzerland are at the registered office of the Representative. ** The AFV Vietnam Fund is registered for sale to investors in Japan, Switzerland (qualified investors), Hong Kong & UK (professional investors), Singapore (accredited investors) and USA (accredited investors and qualified purchasers). *** By accessing information contained herein, users are deemed to be representing and warranting that they are either a Hong Kong Professional Investor or are observing the applicable laws and regulations of their relevant jurisdictions.

AFC Vietnam Fund

30

Appendix

AFC Vietnam Fund

31 AFC Vietnam Fund

AFC Umbrella Fund (non US), Cayman Islands * AFC Vietnam Fund AFC VF Ltd. **** Investment Firm Viet Capital Securities Custodian Ernst & Young Hong Kong Auditor Custom House, Singapore Fund Administrator Ogier Hong Kong Legal Advisor Asia Frontier Capital (Vietnam)Ltd. ** Investment Manager Asia Frontier Investments Ltd. (licensed by SFC Hong Kong)*** Investment Advisor

* Directors: Thomas Hugger, Andrew Fraser, Heinrich Looser ** Directors: Thomas Hugger, Andreas Vogelsanger *** Directors: Thomas Hugger, Peter de Vries **** Directors: Thomas Hugger, Andreas Vogelsanger

AFC VIETNAM FUND

32

Vietnam’s Low Correlation to Global Markets offers significant Diversification Benefits

WHY VIETNAM

Bloomberg . Based on 10 years monthly data

AFC Vietnam Fund

0.35 0.42 0.72 0.82 0.87 VH Index (Hanoi) VN Index (Ho Chi Minh) MSCI Frontier Markets MSCI BRIC MSCI Emerging Markets Correlation with the MSCI World Index

33 AFC Vietnam Fund

Low Market Cap/GDP relative to Asian Markets

Worldbank 2014

WHY VIETNAM

29% 39% 72% 76% 78% 83% 91% 107% 112% 207%

Vietnam Indonesia India China Australia Philippines Thailand Japan Malaysia Singapore

Market Cap in % of GDP

34 AFC Vietnam Fund

Stable Political Environment

WHY VIETNAM

93 82 61 54 49 44 27 25 21 17 16 11

World Bank 2015 Political Stability Ranking

195 245 342 455 642 696 702 679 663 658 676 14 32 13 34 38 26 37 45 53 58 72 100 200 300 400 500 600 700 800 80 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Number of listed companies HCMC & Hanoi market cap (USD bn) 35 AFC Vietnam Fund

Stock Market Information

Bloomberg

WHY VIETNAM

Banking/Insurance 27.3% F&B 14.5% Real estate 11.5% Construction 11.3% Utilities 5.6% Oil & Gas 3.6% Construction material 3.5% Manufacturing 3.5% Transportation 3.1% Steel 2.9% Pharmaceutical/ Chemicals 2.3% Securities 2.1% Mining 1.8% Plastic/package 1.7% Information Technology 1.3% Commerce 1.0% Seafood 0.9% Tourism 0.9% Rubber 0.8% Education 0.2% Sector Breakdown Dec 2016

36 AFC Vietnam Fund

Viet Capital - HCMC Index July 2000 – Dec 2016

Ho Chi Minh Index

WHY VIETNAM

37 AFC Vietnam Fund

Worldbank

GDP per Capita Accelerating

WHY VIETNAM

Worldbank - GDP per capita (current USD)

230 288 337 361 361 374 402 416 441 492 607 699 797 919 1,165 1,232 1,334 1,543 1,755 1,909 2,052 2,111 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

38 AFC Vietnam Fund

Regional GDP per Capita (current USD)

World Bank 2015

WHY VIETNAM

GDP per Capita (USD) Population (m) Singapore 52,889 6 Malaysia 9,768 30 China 8,028 1,371 Thailand 5,815 68 Indonesia 3,346 258 Philippines 2,904 101 Vietnam 2,111 92 Myanmar 1,161 54 Cambodia 1,159 16

Shift of Production Base from China to Vietnam

39 AFC Vietnam Fund

VIETNAM

40 AFC Vietnam Fund

VIETNAM

www.transparency.org/cpi

21 22 25 25 25 30 31 35 36 37 37 38 38 50 56 62 75 75 79 85 10 20 30 40 50 60 70 80 90 Cambodia (150) Myanmar (147) Laos (139) Bangladesh (139) Papua New Guinea (139) Pakistan (117) Vietnam (112) Philippines (95) Indonesia (88) China (83) Sri Lanka (83) Thailand (76) India (76) Malaysia (54) South Korea (37) Taiwan (30) Hong Kong (18) Japan (18) Australia (13) Singapore (8)

Corruption Perceptions Index 2015