Retail industry has huge potential in Vietnam and it's booming

1. VIETNAM RETAIL MARKET FRONTIER Present to: R&D Summit

2. TRAN TINH MINH TRIET triet@cartridgeworld.com.vn trietttm@yahoo.com Personal information VIETNAM RETAIL MARKET FRONTIER

3. MARKET OVERVIEW RETAIL MARKET PERFORMANCE BY OWNERSHIP RETAIL MARKET PERFORMANCE BY FORMAT RETAIL MARKET PERFORMANCE BY CATEGORIES CONSUMER BEHAVIOR PATTERN INDUSTRY CHALLENGES FUTURE GROWTH PROSPECTS VIETNAM RETAIL MARKET FRONTIER Content

5. Vietnam currently houses around 230 super markets & hypermarket, 23 trade centers, 165 wholesale markets and nearly 1million M2 of floor area under construction for retail business

6. Forecasted growth as a CAGR of about 10-12% during 2007-2012Source: TNS Worldpanel Asia 2007 VIETNAM RETAIL MARKET FRONTIER 1.Market overview

7. Overview VIETNAM RETAIL MARKET FRONTIER 1.Market overview

8. Purchasing power Consumer spending (In Million USD), 2002-2007 2002 2003 2004 2005 2006 2007 Source: International Financial Statistics VIETNAM RETAIL MARKET FRONTIER 1.Market overview

9. Purchasing power Forecast for consumer spending (In Million USD), 2008-2012 Source: International Financial Statistics VIETNAM RETAIL MARKET FRONTIER 1.Market overview

10. Overall comment Young, Attractive but…… VIETNAM RETAIL MARKET FRONTIER 1.Market overview

11. Overall Goods & service retail sales ( in trillion VND) in 2007 2. Retail market performance By ownership Source: Vietnam Statistic Office VIETNAM RETAIL MARKET FRONTIER

12. Overall comment Nonstate-owned companies lead the growth in 2008 2. Retail market performance By ownership Source: Vietnam Statistic Office VIETNAM RETAIL MARKET FRONTIER

13. Traditional trade vs Modern trade Retail Structure 2006 3. Retail market performance By Format Source: TNS Worldpanel Asia 2006 VIETNAM RETAIL MARKET FRONTIER

15. Mama & Papa shops…still key player as they are part of Vietnamese culture

17. Growing middle class and expanding young population are fuelling growth of modern trade

18. In the near future, modern trade will offer all commodities at better price and with a better ambience. 3. Retail market performance By Format VIETNAM RETAIL MARKET FRONTIER

20. Non-food retailers mainly comprise small-scale businesses focused on selling white goods, consumer electronics, clothes or cosmetics & toiletries3. Retail market performance By Format VIETNAM RETAIL MARKET FRONTIER

22. The common size of supermarket format here from 500-3000 square meter

23. It has a wide range of location selection

24. There are currently 200 supermarkets

25. This format is enjoying a healthy growth

26. Supermarket is still play a key role in modern trade for the next 10 years

27. Coopmart is a leader in this concept3. Retail market performance By Format VIETNAM RETAIL MARKET FRONTIER

32. This channel will take a foothold in retail marketing sooner or later but limited in major urban centers3. Retail market performance By Format VIETNAM RETAIL MARKET FRONTIER

35. Average household spending patterns Spending on basic goods and services such as food, clothing, hygiene products and transportation Brand/Price sensitivity Vietnamese generally prefer foreign brands to domestic brands, therefore, it is likely that they remain fairly price sensitive given their moderate income position Emerging middle & upper class Growing middle & upper classes have shown particular interest in Foreign luxury brands, electronics, cosmetics Geographic Consumer behavior difference from the south to the north 5. Consumer behavior pattern VIETNAM RETAIL MARKET FRONTIER

40. DO YOU WANT TO BE PART OF THIS USD 90 BILLION INDUSTRY? End VIETNAM RETAIL MARKET FRONTIER

41. THANK YOU End VIETNAM RETAIL MARKET FRONTIER