Read and follow the top economic indicators for Vietnam, M&A activity, and major developments in finance, banking, and legal. Published Monthly.

1. > Investment Brief
Vietnam
COLLIERS INTERNATIONAL
September | 2013
Indicator
Value
Updated
Source
VN-Index
+33.04% to 492.63
9/30
Bloomberg
Inflation
+4.63% ytd, +7.5% yoy
9/30
GSO
Credit market
+5.83% ytd
9/18
SBV
Exp/Imp
+15..7%/+15.5% ytd
9/24
GSO
Deposit Rate
7%
9/30
SBV
GDP
+5.14% ytd
9/27
GSO
Refinance Rate
7%
9/30
SBV
Lending Rate
7-9% short, 9-11% long
9/21
SBV
10-year bond yield
8.84%
9/27
ADB
FDI
+36% yoy to $15b
9/30
FIA
FDI Disbursement
+6.4% yoy
9/30
FIA
Energy Prices
unchanged
9/30
EVN
Retail Sales
+13.7% yoy
9/1
GSO
Deposits
+11.74% -13.78% ytd
9/18
GSO, SBV
M2 Money Supply
+8.4% ytd
8/27
GSO
PMI
49.4
9/1
HSBC
Overnight Rate
2.77%
9/24
GSO
VND-USD
21,117
9/30
Bloomberg
Repurchase Rate
5.5%
8/7
Bloomberg
Fitch
B+
8/27
Fitch
Standard & Poors
BB-
9/29
S&P
Moody’s
B2
9/29
Moody’s
Colliers at a Glance
: $2 billion
Revenue
: 62
Countries
: 482
Offices
: 13,500
Professionals
: 5,100
Brokers
Square Feet Managed : 1.12 billion
: 78,000
Total Transactions
Total Transaction Value : $71 billion
Contact the Investments Team
PETER DINNING
General Director
peter.dinning@colliers.com
+84 903 322 344
Ho Chi Minh Office
KYNAM DOAN
Investment Manager
kynam.doan@colliers.com
+84 1223 128 032
Hanoi Office
TUNG NGUYEN
Investment Manager
tung.nguyen@colliers.com
+84 912 885 070
*Arrows indicate monthly trends
**Data is accurate as reported by the source on the indicated date
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2. VIETNAM INVESTMENT BRIEF | SEPTEMBER 2013
Overview
Economic indicators have been trending
upwards in Q3...
While many of the major economic indicators have been trending upwards in
Q3, as seen in the table above, recovery has been slow. The next 6-9 months
will set the tone for recovery as several important developments will resolve
during this time: performance of the Vietnam Asset Management Company
(VAMC), stability of the Dong, the Trans-Pacific Partnership (TPP) free trade
agreement, and a framework to reform Vietnam into a market economy.
Performance of the VAMC
Agribank has sold US$118m to the
VAMC, 3 other banks are in preparation:
Navibank, Saigon Commercial JSB, an
Saigon-Hanoi Commercial JSB...
Agribank, the country’s largest lender, has signed the first debt-purchase
contract with the VAMC, agreeing to sell US$118m. Three other banks have
publicly announced preparation to sell bad debts to the VAMC: Navibank,
Saigon Commercial Joint Stock Bank (SCB), and the Saigon-Hanoi
Commercial Joint Stock Bank (SHB). The VAMC will issue special bonds
that can be mortgaged to the State Bank for refinancing. However, the banks
must set aside 20% of the bond’s face value per year as a risk provision. In
effect, this structure simply extends five years of diminishing liquidity to help
banks resolve or sell these bad debts.
Market Economy
PM Dung pledges reforms including
strengthening oversight and increasing
foreign ownership limits. Vietnam will
treat SOEs equal to others including
FOEs...
Prime Minister Dung reaffirmed Vietnam’s pledge to further open the economy
to external markets on the 27th of September in New York. Reforms include
strengthening oversight and increasing foreign ownership limits in various
industries including an increase from 30% to 49% ownership of local banks
in the “near future.” PM Dung pledged that state-owned enterprises would
be forced to operate in the market economy and Vietnam would “treat them
equal to other enterprises.” While such a strong public stance is promising,
concrete reforms likely will not appear in the short term.
Stability of the Dong
Government plans to devalue the Dong
a further 2 percent...
Prime Minister Dung also indicated that the government plans to devalue
the Dong a further 2 percent before the end of the year despite the recent
stability: foreign reserves account for over 2.5 times monthly import turnover,
trade deficit is a manageable $578 million year to date, and the US economy
is still in flux. The dollar has fallen recently due to weakening economic
indicators and the impending partial shutdown of the US government, the
first in 17 years.
Colliers International | Accelerating success | www.colliers.com/vietnam

3. VIETNAM INVESTMENT BRIEF | SEPTEMBER 2013
Trans-Pacific Partnership
Washington has agreed to include
more Vietnamese garment products in
the TPP agreement despite containing
products from non-TPP countries...
The US and Vietnam hope to conclude negotiations on the TPP by year’s end
PM Dung promises a market economy...
Minister Nguyen Tan Dung has pledged to reform Vietnam into a market
and have made significant progress in September. Washington has agreed to
include more Vietnamese garment products in the TPP agreement despite
containing products from non-TPP countries such as China. In return, Prime
economy.
Foreign Direct Investment Up Sharply
Pledged FDI has jumped 36%yoy to $15
bln, disbursed FDI up 6.4% to $8.62
bln...
Pledged FDI has jumped 36% year over year to $15 bln according to the
Foreign Investment Agency (Ministry of Planning and Investment). As of
September 20th, there were 872 new investments with total registration
capital of $9.3 bln, an increase of 34.9% yoy. In addition, there were 340
projects that registered an additional $5.7 bln in capital, an increase of 37.9%
yoy. Total disbursed capital stands at $8.62 bln, an increase of 6.4% against
the same period last year.
M&A
HD Bank + Dai A Bank > Development
Bank HCMC...
September 25th: Official approval of voluntary merger of HD bank (chartered
capital of $238 mil) and Dai A Bank (chartered capital of $148 mil) to form
the Development Bank HCMC with a share swap ratio of 1:1.
September 10th: PetroVietnam Finance Corporation finalizes merger with
Western Bank to form the new Vietnam Public Bank, or PVComBank and has
a chartered capital of $426.42 mil.
Other M&A deals in Q3 include the EXS Capital’s (JPN) $37 mil injection into
Son Kim Land (VN) and CJ Group’s (Kor) pending $45.5 mil acquisition of
Gemadept Tower from Gemadept (VN).
Monthly investment brief
General Director
Peter.Dinning@colliers.com
Investment Manager | HCMC
KyNam.Doan@colliers.com
Investment Manager | Hanoi
Tung.Nguyen@colliers.com
This brief is published monthly by Colliers Vietnam Investment Services, led
by Peter Dinning and KyNam Doan. We advise an asset portfolio that focuses
on appropriate returns to match diverse risk-return profiles. Our portfolio
tracks a wide range of assets including land, developments, and incomeproducing properties across all market sectors - commercial, hotel, industrial,
residential, and retail. Contact us to receive our other reports such as our
Quarterly Research and Forecast Report or HCMC CBD Market Report.
Colliers International | Accelerating success | www.colliers.com/vietnam

4. Colliers International
Investment Services
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investment opportunities. We provide
breadth and depth of services to
both international and local investors,
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We manage a portfolio of opportunities
that offer strong returns along a
spectrum of well-understood levels of
risk. This portfolio includes bare land,
distressed developments, and incomeproducing properties across all market
sectors - commercial, hotel, industrial,
Colliers Vietnam is committed to residential, and retail.
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decisions - whether it's through Backed by an outstanding track record,
investing, divesting, or holding - to wealth of knowledge and strong
increase the value of their porfolios regional presence, our team is able to
and achieve target liquidity, risk, and deliver the following services:
returns.
Acquisitions
>> Identify & secure opportunities to help
you achieve your porfolio targets
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intent through to settlement of contract
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Diligence as well as advise on best use of
land
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interested parties prior to negotiation
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