Samjong KPMG Privatization in Vietnam YoungGak Ken Yun

Samjong KPMG Privatization in Vietnam Young-Gak (Ken) Yun CEO, Samjong KPMG July 2007 ADVISORY

Content l New Bounds of Vietnam l Privatization in Vietnam This document is CONFIDENTIAL and its circulation and uses are RESTRICTED. © 2006 Samjong KPMG LLP, the Korean member firm of KPMG International, a Swiss cooperative. All rights reserved. 1

New Bounds of Vietnam (2 of 3) 민영화의 의미 ‘시장화’(marketization) 또는 ‘규제철폐’(de-regulation) 일반적인 목적 1 정부의 국민경제 개입 및 정부기능의 축소 2 경영효율의 제고 3 정부 세입의 증대 4 자본시장의 저변확대 공기업 민영화 정책의 목적은 국가의 경제이념, 제도 등에 의해 달라진다. This document is CONFIDENTIAL and its circulation and uses are RESTRICTED. © 2007 Samjong KPMG, the Korean member firm of KPMG International, a Swiss cooperative. All rights reserved. 3

Content l New Bounds of Vietnam l Privatization in Vietnam This document is CONFIDENTIAL and its circulation and uses are RESTRICTED. © 2007 Samjong KPMG, the Korean member firm of KPMG International, a Swiss cooperative. All rights reserved. 5

Privatization in Vietnam(1 of 6) 국영기업현황 및 민영화 추세 l 1994년 6, 264개에서 2000년도까지 약 500여 개 기업만이 구조조정을 거쳐 민영화 l 2001년 총리직속으로 ‘국영 기업 개혁 및 발전위원회’를 설치하며 개혁을 가속화하여 2005년 3, 000 여 개로 크게 줄어듦 국영 기업수 (1999~2006) Source: 삼정KPMG 경제연구원 - 주베트남 대사관이 인용한 베트남 정부 자료 분석 This document is CONFIDENTIAL and its circulation and uses are RESTRICTED. © 2007 Samjong KPMG, the Korean member firm of KPMG International, a Swiss cooperative. All rights reserved. 6

Privatization in Vietnam(2 of 6) 국영기업 민영화 형태 국영기업 민영화 추진 실적 l 2001~2005년간 주식화 2, 377개, 매각 246개, 합병 395개, 통합 137개, 해체/파산 171개 완료 2001년 형태 기업수 2002년 % 기업수 2003년 % 기업수 2004년 % 기업 수 2005년 % 기업수 누적합계 % 기업수 % 주식화 205 54% 164 40% 562 61% 753 79% 693 81% 2, 377 68% 매각 34 9% 51 13% 74 8% 43 5% 44 5% 246 7% 합병 85 22% 83 20% 152 17% 60 6% 15 2% 395 11% 통합 34 9% 44 11% 47 5% 7 1% 5 1% 137 4% 해체/파산 22 6% 29 7% 54 6% 34 4% 32 4% 171 5% 1인 유한 0 0% 14 2% 41 4% 55 6% 110 3% 신기업창 출 0 0% 37 9% 18 2% 12 1% 79 2% 380 100% 408 100% 921 100% 950 100% 856 100% 3, 515 100% 합계 Source: 베트남 정부 This document is CONFIDENTIAL and its circulation and uses are RESTRICTED. © 2007 Samjong KPMG, the Korean member firm of KPMG International, a Swiss cooperative. All rights reserved. 7

Privatization in Vietnam(3 of 6) 여전히 높은 국영 기업 비중 l 현재 국영기업은 245, 000개 기업중 1%에 불과하지만 국영기업 생산비중은 GDP 대비 38. 4%로 여전히 높은 비중을 차지함 l 그외 전체기업에 대한 국영기업의 비중은 종업원수 33%, 자본금 54%, 매출액 38%, 세금 납부 41%로 베트남 경제에서 차지하는 비중이 큼 국영기업 생산비중 (GDP 대비, %) Source: Korea Investments & Securities This document is CONFIDENTIAL and its circulation and uses are RESTRICTED. © 2007 Samjong KPMG, the Korean member firm of KPMG International, a Swiss cooperative. All rights reserved. 8

Privatization in Vietnam(5 of 6) 민영화 추진 대상 대기업 현황 (2007~2010 기간) 민영화 추진 대상 대기업 - 총 71개 기업 (연도별 합계) * State Owned Enterprises; Hanoi’s People Committee This document is CONFIDENTIAL and its circulation and uses are RESTRICTED. © 2007 Samjong KPMG, the Korean member firm of KPMG International, a Swiss cooperative. All rights reserved. Source: www. OTC 24 h. com. vn 10

Privatization in Vietnam(6 of 6) 민영화 추진 대상 대기업 현황 (2007~2010 기간) Source: www. OTC 24 h. com. vn This document is CONFIDENTIAL and its circulation and uses are RESTRICTED. © 2007 Samjong KPMG, the Korean member firm of KPMG International, a Swiss cooperative. All rights reserved. 11

Appendix(1 of 4) [Appendix] 주요 민영화 대상 기업 Companies Vietcom Bank Mekong Delta Key Analysis l The biggest Vietnam national owned bank, established in 1963 l Total Assets (2006) 170, 000 Billion VND (10. 6 Billion US$) l Possesses 50% and 28% of Market share at Credit Card and International Settlement respectably l Contracts with Credit Suisse and IPO Consulting l IPO expected in July or August (6~8 weeks after IPO, planned to be listed at the Ho Chi Mihn Stock Exchange) l Expected to be listed at a foreign stock exchange in 2008 l Specialized bank at Housing Loan l Business Results in 2006 (comparing to 2005): Increases in Total Sales (46%) and Pre-Tax Profit (41%) l Introducing Privatization plan at June, 2007 (expected to be privatized at August, 2007) l Specialized Bank at Loan and Project Investment l In 2006 Paid-In Capital 3, 746. 30 Billion VND, Net Revenue: 1, 233. 04 Billiion VND (77 Million $, +120%) Housing Bank BIDV This document is CONFIDENTIAL and its circulation and uses are RESTRICTED. © 2007 Samjong KPMG, the Korean member firm of KPMG International, a Swiss cooperative. All rights reserved. 12

Appendix(2 of 4) [Appendix] 주요 민영화 대상 기업 Companies Bao Viet Insurance Mobi. Fone Vietnam Airline Key Analysis l Established at 1965, A only company in Vietnam doing business at Life and Non-life Insurance l Multi Functional Financial Organization: Investment, Stock Brokerage, Banking, Real Estate l Positioned at the relatively ‘calm region’ of the highly competitive insurance market (operating 18 Vietnamese and 19 Foreign Insurance Companies) l Established at 1965, A only company in Vietnam doing business at Life and Non-life Insurance l Established at 1993, Partnership Contract of 10 years with Covic (Sweden) at 1995 l IPO expected at 2007: promotion of a Foreign Consultant for IPO work l 2 Hundred Million Mobile Phone Users (2006): expected ‘doubled up’ at 2007 Market Share: Mobifone (31. 5%), Vinafone (32%), Vietel (30%) l Market Share: 80% l Registered Capital: 5, 740 Billion VND (3. 59 Hundred Million US$) l No of Customers (2006): 6. 8 Million (+One Million compared to 2005) This document is CONFIDENTIAL and its circulation and uses are RESTRICTED. © 2007 Samjong KPMG, the Korean member firm of KPMG International, a Swiss cooperative. All rights reserved. 13

Appendix(3 of 4) [Appendix] 주요 민영화 대상 기업 Companies SABECO Key Analysis l Scope of Business: Producing and Trading of Beer, Liquor and Beverage l Established by a French at 1875 and ownership transferred to the Vietnamese Government at 1977 l The best brewery in Vietnam having Modern Production Lines l World Wide Exporter: Japan, Australia, the US, EU, Hong. Kong, and Singapore l In 2006, Market Share 30%, Sales 8, 459 Billion VND (5, 3 Hundred Million US$, +22%), Net Revenue 1, 308 Billion VND (0. 82 Hundred Million US$, +7%) l HABECO Petro. Vietnam 20% IPO Expected at the Second Quarter of 2007 l Scope of Business: Producing and Trading of Beer, Liquor and Beverage l Established by a French at 1890 and reopened by the government recently l 24% IPO Expected (10% will be distributed to the Strategic Foreign investors) l Disposal by sale of Petrovietnam Engineering’ government equity in the first quarter l Possible equity disposal: Government Equity owned by PV Construction and Drilling Material & Chemical (DMC) This document is CONFIDENTIAL and its circulation and uses are RESTRICTED. © 2007 Samjong KPMG, the Korean member firm of KPMG International, a Swiss cooperative. All rights reserved. 14

Appendix(4 of 4) [Appendix] 주요 민영화 대상 기업 Companies Vinapharm Vinatex Satra Group (Saigon Trading Group) Key Analysis l The Leading company in Vietnamese Medicine Manufacturing Industry(M/S: 31%) l 14 Subsidiaries are already privatized and Vinapharm is preparing to be privatized too. l the World’s 10 th Textile & Garment Company l Changing Management Structure from ‘Subsidiaries’ to ‘Corporations’ l Market Share of Vinatex (2006): 20% out of 58 Hundred Million US$ l Market Share of the Material Companies, Thanh Cong Textile & Garment and Nha Tranh Textile VTEC: 50 -60% (80 retailers across home and abroad and exporting 90% of products to the US and EU) l A general trading company: the City of Ho Chi Minh has ‘Equity’. l Holding and Subsidiary companies: Privatization expected by ‘Issuing New stock’ l 34 Subsidiaries: planning to sale 49% of Government equity. Source: Korea Investments & Securities This document is CONFIDENTIAL and its circulation and uses are RESTRICTED. © 2007 Samjong KPMG, the Korean member firm of KPMG International, a Swiss cooperative. All rights reserved. 15

Young-Gak (Ken) Yun CEO Samjong KPMG Tel: +82 2 2112 0011 yyun@kr. kpmg. com 16