1. DOING BUSINESS IN VIETNAM Ms. Trang Nguyen Tel: +84-90 969 5881 Email : trang.nt@longhau.com.vn LONG HAU INDUSTRIAL PARK

2. 2 CONTENT 1. Investors concerns 2. Why Vietnam 3. Current situation of FDI in VN 4. Why Long Hau Industrial Park 3. 3 Investors Concern Security ProfitabilitySustainable development 4. 4 Investors Concerns Landscape of Investment environment: Political factor Economic factor Social factor Technological factor Environmental factor Legal factor 5. 5 CONTENT 1. Investors concerns 2. Why Vietnam? 3. Current situation of FDI in VN 4. Why Long Hau Industrial Park 6. 6 Geography & Topography Heart of Asia Proximity to other Southeast Asia major markets The Gate to entry Southeast Asia from the North 7. 7 Geography & Topography 8. 8 Why Vietnam? Vietnam is one of the most popular destinations for expansion within the ASEAN region ASEAN Business Outlook Survey AmCham and Singapore Business Federation Population: 92.47 million 15th (growth rate: 1.03%) GDP (PPP, Intl US$): 336.2 billion 39th 153.5 billion (real ex rate) Surface area: 331,210 sq.km 66th Commercial hub: Ho Chi Minh City Long coastline: 3440 km Neighborhood: Cambodia, China, Laos 9. 9 Why Vietnam? Answer: Vietnamese investment environment benefits investors Political Legal Social Environment Technology Economic 10. 10 Why Vietnam? Political stability Vietnam: ranked 2nd place for Political stability (tied with Hong Kong) by Business Monitor International - Only Communist Party plays the leader role - No threat of civil war, domestic conflict, terrorism (not a single military conflict has arisen since 1979) 11. 11 Why Vietnam? Solid economic growth 12. 12 Why Vietnam? Favorable social environment for business development Population: 92.47 million 15th largest country market with rising middle income class Golden population structure: 60% of population is under 30 66% : working age 1.5 million people will be in working age each year 13. 13 Why Vietnam? Vietnam Population Pyramid (CIA The World Fact Book) 14. 14 Why Vietnam? Social environment (cont): Vietnam Labor Force: At low cost: VN hourly wage rate 0.81 $ < 1.56$ China 15. 15 Why Vietnam? Social environment (cont): Vietnam Labor Force: More than low cost Literacy rate: >95% English: Secondary language Worker: diligent and eager to learn with a strong desire for great affluence Increasingly high skilled labor force o 2000-2008: Number of university/college student increased by 120% to 1.66 million student o Around 25,000 students apply for Intl educational programs each year 16. 16 Why Vietnam? Advantageous environment condition Pleasant climate Rich in natural resources Close to large metropolitan & economic hubs: Hong Kong, Shenzhen and Guangzhou. Proximity to China: global supply chains, adopt a China+1 strategy in Vietnam Thailand 2004Philippine 2013 17. 17 Why Vietnam? Technological factor Sea Port system Long coastline: 3440 km - convenience sea transport Port: around 30 commercial ports in around Me Kong River Delta only $400 trillion master plan for building ports capable of accommodating world largest container ships 18. 18 Why Vietnam? Technological factor (cont) Transportation system: Waterway: 17,000km Railway: 2,600km Road, highway: through out country Airway: 16 domestic airports, 6 International Airports (Tan Son Nhat, Noi Bai, Long Thanh, Da Nang, Dong Duong, Can Tho) 19. 19 Why Vietnam? Technological factor (cont) Low cost and stable power supply Figure: Comparison of cost between Vietnam and other Asia Countries National Electricity rate for business use (per kWh) Water rate for business use (per cu.m) Gas rate for business use (per cu.m) Vietnam (HCM) (1) 0.04 (2) 0.06 (3) 0.11 0.43 1.28/kg Thailand (Bangkok) 0.15* 0.31-0.53* 0.99/kg Indonesia (Batam) 0.09 1.08* Rate per 1mmBtu: 8.45 Philippines (Manila) 0.14~0.17* 1.84~2.23* 1.57/kg China (Shenzen) 0.04~0.18 0.7 Rate per cu.m: 2.48 Source: The 23 rd Survey of Investment related cost in Asia and Oceania by JETRO 20. 20 Why Vietnam? Legal environment: encourage and protect Foreign Investor No tax on dividends remitted to investors home country Figure: Comparison of Vietnamese Tax system and other Asian Countries National Corporate income tax rate Personal income tax rate (highest rate, %) Valued-added tax (VAT) (standard, %) Viet Nam (HCM) 22% 35% 0% . 5%. 10% Thailan (Bangkok) 20% 35% 7% Indonesia (Batam) 25% 30% 10% Philippine (Manila) 30% 32% 12% China (Shenzhen) 25% 45% 17% Source: The 23 rd Survey of Investment related cost in Asia and Oceania by JETRO 21. 21 Why Vietnam? Legal environment: encourage and protect Foreign Investor Figure: Tax incentive for Investment project in Vietnam Source: Vietnam Amended Corporate Income Tax Law 2013 (Ref: 32/2013/QH13) CIT rate Incentive duration CIT exemption holiday 50% reduction period New project included in the list of Encouraged Investment 22% 15 years 2 years from generating taxable revenue 4 years following exemption period New project included in the list of Encouraged Areas 22% 15 years 2 years from generating taxable revenue 4 years New project included in the list of Special Encouraged Investment and/or Special Encouraged Areas 10% 15 years 4 years from generating taxable revenue 9 years 22. 22 Why Vietnam? More than PESTEL? The openness of Vietnamese Economy WTO ASEAN APEC TTP: Trans Pacific Partnership: top economies Japan, United State, SingaporeTaiwan and South Korea expressed the interest to joint. Investors enjoy competitive advantage coming from TPP when invest in Vn Under TPP, for Vietnam Export Item such as textile, footwear can enjoy very low import tariff to duty free 23. 23 CONTENT 1. Investors concerns 2. Why Vietnam? 3. Current situation of FDI in VN 4. Why Long Hau Industrial Park 24. 24 Current situation of FDI in VN Figure: FDI in Vietnam by Counterpart ( accumulation until 31.12.2012) Source: GSO No Country Number of Project Registered capital (Bil US$) % Total 14522 210.52 100% 1 Japan 1849 28.7 13.6% 2 Taiwan 2234 27.1 12.9% 3 Singapore 1119 24.9 11.8% 4 Korea 3197 24.8 11.8% 5 British Virgin Island 510 15.3 7.3% 6 Hong Kong 705 12 5.7% 7 United State 648 10.5 5.0% 8 Malaysia 435 10.2 4.8% 9 Cayman Island 54 7.5 3.6% 10 Thailand 298 6.1 2.9% Figure: FDI in VN by Counterpart ( Accumulation as of 31.12.2013) Source: GSO No Country Number of Project Registered capital (Bil US$) % Total 14522 210.52 100% 1 Japan 1849 28.7 13.6% 2 Taiwan 2234 27.1 12.9% 3 Singapore 1119 24.9 11.8% 4 Korea 3197 24.8 11.8% 5 British Virgin Island 510 15.3 7.3% 6 Hong Kong 705 12 5.7% 7 United State 648 10.5 5.0% 8 Malaysia 435 10.2 4.8% 9 Cayman Island 54 7.5 3.6% 10 Thailand 298 6.1 2.9% 25. 25 Current situation of FDI in VN Figure: FDI in Vietnam by Counterpart ( accumulation until 31.12.2012) Source: GSO No Country Number of Project Registered capital (Bil US$) % Total 14522 210.52 100% 1 Japan 1849 28.7 13.6% 2 Taiwan 2234 27.1 12.9% 3 Singapore 1119 24.9 11.8% 4 Korea 3197 24.8 11.8% 5 British Virgin Island 510 15.3 7.3% 6 Hong Kong 705 12 5.7% 7 United State 648 10.5 5.0% 8 Malaysia 435 10.2 4.8% 9 Cayman Island 54 7.5 3.6% 10 Thailand 298 6.1 2.9% 0 2000 4000 6000 8000 10000 12000 14000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 MillionUS$ Implemented capital Average growth rate of implemented capital from 2002-2012: 15% 26. 26 Current situation of FDI in VN Figure: FDI in Vietnam by Counterpart ( accumulation until 31.12.2012) Source: GSO No Country Number of Project Registered capital (Bil US$) % Total 14522 210.52 100% 1 Japan 1849 28.7 13.6% 2 Taiwan 2234 27.1 12.9% 3 Singapore 1119 24.9 11.8% 4 Korea 3197 24.8 11.8% 5 British Virgin Island 510 15.3 7.3% 6 Hong Kong 705 12 5.7% 7 United State 648 10.5 5.0% 8 Malaysia 435 10.2 4.8% 9 Cayman Island 54 7.5 3.6% 10 Thailand 298 6.1 2.9% Ranked the 2nd popular location for Business Expansion in ASEAN Countries Source: ASEAN Business Outlook Surveys 2014 27. 27 CONTENT 1. Investors concerns 2. Why Vietnam? 3. Current situation of FDI in VN 4. Why Long Hau Industrial Park ? 28. Green Industrial Park with well developed Infrastructure System located in Strategic location facilitates for sustainable development LONG HAU INDUSTRIAL PARK 29. LONG HAU INDUSTRIAL PARK 30. LONG AN PROVINCE Transit point from HCMC to MEKONG DELTA Belong to Southern economic key points of VN PCI (Provincial Competitiveness Index): No. 3 of Vietnam & No.1 of the South provinces 31. 31 Long An: 4th FDI attractive Province in VN Long An, HCMC, Dong Nai, Binh Duong account: 56% total of Investment Project, 35 % of total registered capital 32. LONG HAU INDUSTRIAL PARK Ho Chi Minh City Peoples Committee Tan Thuan Industrial Promotion Co., Ltd (IPC) Phu My Hung New City Hiep Phuoc IP Hiep Phuoc Urban Area Tan Thuan EPZ Saigon Premium Container Terminal (SPCT) Long Hau Industrial Park Master plan of HCMC Expanding to the South 33. 33 LONG HAU INDUSTRIAL PARK Fact & figures: Scale: 288 ha, occupancy rate 70% No of current tenants: 122 (foreign investors: 56) Most attractive IP in Long An province One of 3 IPs in Vietnam have environmental certificate ISO 14001: 2004 for the whole IP (Loteco, VSIP 1, Long Hau) 34. 34 Some tenants in Long Hau Industrial park Name Nationality Owner Industry Wahl Vietnam Co.,Ltd USA Wahl Clipper International Holding B.V Hair care machines and products manufacturing World Cat Vietnam Co.,Ltd Germany World Cat Limited Puma complex village: vendor and supplier factory leasing & management Swire Cold Storage Vietnam Long Hau Branch AUS Swire Cold Storage Vietnam Co.,Ltd Cold storage, logistic and packaging services Vina Astec Co.,Ltd Japan Nissho Astec Co.,Ltd Steel and other metals components for manufacturing and construction Lotte Sea Logistic Company Limited Korea Lotte International Co.,Ltd Warehouse and packaging services Simone Accessories Collection Vietnam Limited Korea Simone Co.,Ltd Suitcase, bag, handbag and other similar items manufacturing MAGIC TECHWIN CO.,LTD Korea Magic LCD Co.,ltd Electronic component, IC & LED frame for high tech devices Dyechem Alliance (VN) Co.,Ltd Singapore Dyechem Alliance (VN) PTE Ltd Manufacturing chemical for textile industry Top cake Joint Venture Company Vietnam Liem Thanh Jsc Superior Stock Farm In Millelium.inc. Confectionary Vina Pride seafood Co.,LTD Russia & Korea Korean Seafood Co., ltd Igor Redkin Seafood processing 35. LONG HAU INDUSTRIAL PARK 70% 12% 3% 2% 2% 2% 2% 2% 2% 3% Japan Korea Singapore France Malaysia Australia Gemany US Spain China Foreign tenants by origin 23 19% 18 15% 18 15% 16 13% 14 12% 9 7% 9 7% 5 4% 5 4% 5 4% Mechanics Food Construction material Fashion Logistics Machinery Chemical Packaging Consumption Others Foreign tenants by industry 36. 36 LONG HAU INDUSTRIAL PARK Location: On the North South main Parkway of HCMC 12 km 19 km 3 km 30 km 37. Wastewater treatment plant Water supply plant Dormitory Supermarket Hospital New Ready Built Factory project Fire station Customs office Transformer substation 110/22 KV Residential area Ready Built Factory LONG HAU INDUSTRIAL PARK Fully equipped infrastructure system 38. 38 Why Long Hau IP? Saving time Saving cost Sustainable development 39. 39 Long Hau Industrial Park Long Hau IP Short travelling time to HCMC and seaports Labor force abundant for both high skilled and technician people and ordinary workers Established Infrastructure 15 days for Business Certificate Strong support from Long An province Saving Time in transportation, recruitment, business entry 40. 40 Long Hau Industrial Park Saving Cost Free: Legal support for start up business Worker Recruitment Low cost: Logistic cost Custom office inside IP Virtual office, Outsourcing service : Accountant, HR service , Reception Labor minimum salary in Long Hau IP is lower than HCMC, Dong Nai, Binh Duong, Ba ria - Vung tau Construction Project management 41. 41 Saving time & Cost KCN To Ph M Hng (km- miniute) Ct Li Port Km - minute SPCT Port Tn Sn Nht Airport Land Price RBF USD Month/ 1 m2 Tn Thun 7 km - 15 11 20 20 35 20 45 250 / 30 years 6 VSIP I 42 km - 90 30 60 42 90 42 100 90 / 35 years 4.5 AMATA 40 km 80 35 70 52 90 52 100 85 / 37 years 4.5 Long Hu 12 km - 25 25 35 3 10 26 55 105/ 47 years 4 5 Long Hau Ho Bnh 35 Km 35 45 60 45 60 39 60 55 / 47 Years 3.5 - 4 HCMC Binh Duong Dong Nai 42. 42 Sustainable Development Save the environment : ISO 14001 : 2004 Customer Service ( Japanese, English, Chinese, Korean) : ISO 9001: 2008 Monthly meeting with investors to improve customer services Human resource focusing IP for customers : Dormitory Convenience Store Kindergarten Leisure Service Language Center 43. 43 Our Customers 44. 44 Long Hau Corporation Thank You!