pxpvam lotus issue presentation june 2008

8/10/2019 PXPVAM Lotus Issue Presentation June 2008

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Vietnam in Perspective:Crises? What Crises?

June 2008


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Macroeconomic Highlights 10-year average annual GDP

growth rate 7.5% Primary Drivers;

export growth

domestic demand Foreign Direct Investment

57% of population under 30

Literacy rate of 94%

Politically stable


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Headline Economic Statistics

GDP Growth (%) 8.2 8.5

GDP per capita (US$) 724 832

Trade Deficit (US$ BLN) 5.1 12.4F.D.I (US$ BLN) 10.0 20.3

Retail Sales (% YOY) +20.9 +25.0

CPI (% YOY) +6.6 +12.6

Source: Government Statistics Office

2006 2007


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Top-5 Exports 2007

1. Crude Oil 8.5

2. Garments 7.8

3. Footwear 4.04. Aquatic Products 3.8

5. Furniture 2.4

US$ BLN


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Top-5 Imports 2007

1. Machinery 10.4

2. Petroleum Products 7.5

3. Textiles 6.74. Steel 4.9

5. Electronics 2.9

US$ BLN


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Areas of Concern 2008/9

Inflation

Trade Deficit

Balance of Payments

Foreign Currency ReservesCurrency Devaluation

Slowing Growth

Banking Sector


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The Viet Nam Index

Source: Ho Chi Minh City Securities


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Viet Nam Index Highlights

19 January 2006:

Listing of VinamilkMarket Capitalisation > US$ 1 billion

Vietnam Index (VNI) closes at 307.07

3 February 2006:

Release of Merrill Lynch Report

announcing Vietnam as 10 year buyVNI rose 105% (from 309.00 to 632.69)in 12 weeks before re-tracing


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Viet Nam Index Highlights (contd)

2 August 2006:

Index dips below 400Announcement of removal of tax breaklisting incentives effective 31 Dec 06

29 December 2006:

VNI finishes the year at 762.79

Market Capitalisation > US$ 9 billion


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Viet Nam Index Highlights (contd)

2007:

Index peaks at 1,170 on 12 March 2007Finishes the year at 927.02

2008:

Market falls 55% YTD to 30 May

largely on macro-economic fears

As of 13 June 2008 the Viet Nam Index has returned to

a level last seen 3 weeks after the release of the Merrill

Lynch 10-year Buy recommendation two years ago


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Valuation Comparison

8 Mar 06 13 Jun 08VN Index 409.28 372.68

Market Cap (US$) 1.3BN 10.3BN

Historic P/E 17.3x 05 10.9x 07

Forward P/E 14.5x 06 9.9x 08


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Stock Filter

20 HCM City-listed stocks Weighted Average:

6x 07, 5x 08 earnings

1.3x 2007 book value

Sectors include:

Construction; Consumer Staples; Energy;Financials; Industrials; Logistics; Plastics;Property; Seafood; Soft Commodities


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Confidence is showing distinct signs ofimprovement in recent days, with morestocks up than down although selling in bluechips has not yet cleared

There is renewed discussion of reversion to a5% daily trading band, which should allowthe removal of overhang in the short-term

Consultation process underway between

authorities & market participants

The View from Phan Xi Pang (2)


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Relative Performance*

% %

YTD (45.52) (55.33)

2007 15.87 23.31

One Year* (44.20) (61.71)

Inception (37.16) (46.61)

Viet Nam Index(VNI)

* To 30 May 2008


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Saigon Post & TelecommunicationsSSG DevelopmentHau Giang Pharmaceutical (DHG)Imexpharm (IMP)

VietcombankNavico (ANV)Sao Mai

Vinamilk (VNM)Gemadept (GMD)Pha Lai Thermal Power (PPC)

* At 30 May 2008: 69% of Portfolio

Top 10 Holdings*


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Vietnam Lotus Fund

Issue Size: 10,834,500 Shares To be priced at estimated Net Asset Value on

19th June 2008

NAV on 30 May 2008: US$ 3.142 Estimated NAV on 12 June 2008: US$ 2.813

Existing Shareholders have right to buy 1 new

Share for 1 Share (total 9,165,500 Shares) New Investors may apply for balance (plus any

Shares not subscribed as above) at thesame price plus Placing Fee of up to US$0.10


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Vietnam Lotus Fund

Final Date for Applications: 19 June 2008

Closing Date: 20 June 2008

For Prospectus, Placing Letter & Application Form

PLEASE CONTACT:

Kevin SnowballPXP Vietnam Asset Management Limited

Vietnam Representative OfficeTel. No: + (848) 827 6040Fax No: + (848) 827 6043

Mobile: + (84) 918 299 980

[email protected]


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pxpvam lotus issue presentation june 2008

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