Classified: Public

VinaCapital Vietnam Opportunity Fund

Investor Update

London, 30 June 2020

Classified: Public

Contents

1. Macroeconomic update Michael Kokalari

2. Market update Ismael Pili

3. Portfolio update Andy Ho and Khanh Vu

Classified: Public

3|

Praise for Vietnam’s handling of COVID-19

Classified: Public

MACROECONOMIC UPDATE01

4|

Classified: Public

5|

Shape of the economic recovery

Economists are debating an “alphabet”

of possible economic recoveries

• “V-Shaped” recovery unrealistic

although the equity market has shown a

“V-Shaped” recovery

• Other possibilities: “W”, “L”, “I”, and the

“Nike Swoosh”

(This is a distortion of square root sign)

The most realistic scenario is an 18-Month

“Square Root Shaped Recovery”

Classified: Public

6|

Vietnam’s economy remains strong despite exogenous factors

2Q20 GDP: +0.36% yoy

• Driven by agricultural (1.72% yoy) and industrial

sectors (1.38% yoy).

1H20 real GDP: +1.8% yoy

• 2H20 growth could reach 6.8% yoy to meet the

government’s ambitious 4.5% target.

Biggest hit to GDP growth will be from Tourism

• Foreign tourist spending accounts for 8% / GDP.

• Tourist arrivals are down -56% yoy in 1H2020.

Classified: Public

7|

GDP growth positive for Vietnam compared to negative for region

Source: Bloomberg, Vietnam Government, Asian Development Bank, International Monetary Fund, Oxford Economics, Standard Chartered Bank,

VinaCapital Research

1. Vietnam Government forecast currently ranges from 3.6% to 5.2% with the base case approximately 4.5%.

2. Source: Standard Chartered Bank, IMF World Economic Outlook Update, June 2020, Real GDP Growth, % change.

VN Govt: 7.0%

Regional peers negative GDP 2020 growth2:

• Vietnam: +4.5%

• Indonesia: -0.3%

• Malaysia: -3.8%

• Philippines: -5.1%

• Thailand: -8.1%

0%

1%

2%

3%

4%

5%

6%

7%

8%2019

VN Govt: 4.5%1

2020F

ABD: 4.1%

IMF: 2.7%OxfordEcon: 2.0%

SCB: 1.7%

Very wide

distribution

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8|

Inflation is under control, post-Swine Fever

1

2

3

4

5

6

7

Jan

-19

Feb

-19

Mar-

19

Ap

r-1

9

May-1

9

Ju

n-1

9

Ju

l-1

9

Au

g-1

9

Sep

-19

Oct-

19

No

v-1

9

Dec-1

9

Jan

-20

Feb

-20

Mar-

20

Ap

r-2

0

May-2

0

Ju

n-2

0

CPI YoY (%)

ASF drove

Inflation

• African Swine Fever (ASF) pushed pork

prices up over 100% YoY

Risk: Global Food Price Inflation

CPI: Food - United States

(year-over-year percent

change)

CPI: Food - Euro Area

(year-over-year percent

change)

• ASF is under control, but global food prices are rising

• We expect 3.5% inflation at end-2020

Source: Bloomberg, Vietnam Government, VinaCapital Research, 29 June 2020

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9|

VN Dong has remained stable and resilient

Source: Bloomberg, VinaCapital research, May 2020

The VN Dong vs.

THB/IDR/MYR

The VN Dong vs.

JP Morgan EM CCY Index

85

90

95

100

105

VND Average (THB,IDR,MYR)

75

80

85

90

95

100

105

JPM CCY Index VND

Classified: Public

10|

VN Dong resilience due to adequate reserves and avoiding hot money flows

• Vietnam is in much better financial condition in 2020 that it was before the GFC

• The VND depreciated ~20% over 2009-2011.

• The country had about 1 months’ imports of FX reserves.

• There is no risk from “hot money” outflows now

• Investors withdrew ~USD331 million from Vietnam in March compared to a record USD83 billion

from EM Markets.

• Vietnam’s USD85 billion FX reserves are much larger than ~USD15 billion maximum outflows.

• The currency was set to appreciate before COVID-19 hit

• 33%/GDP of FX reserves, and 9 years of C/A surplus, 4 months of imports – better than the

minimum recommendations from the World Bank and IMF.

Classified: Public

11|

Vietnam is the biggest post-COVID winner

Classified: Public

12|

Apple Inc. is the first prominent example

The Next FDI Wave Will Transform Vietnam’s Economy

After the COVID Outbreak Subsides:

Multinational companies will help build the capability of Vietnam’s

local suppliers

Spillover benefits from FDI companies to local industry will accelerate

Classified: Public

13|

Apple is embarking on a “multi year” process in Vietnam

13|

• Apple will manufacture its $350,

Airpods Studio Earphone product in

Vietnam

• For the first time, Apple will

manufacture in Vietnam before

perfecting production in China

• Apple aims to train workers, and to

create a new cluster of component

providers in Vietnam

Classified: Public

14|

FDI spillover transmission mechanisms

Firm-to-Firm

Former FDI Employees

• Backward Linkages

• Forward Linkages

• Horizontal Spillovers

• Ex-multinational employees start their own firms,

to supply their former employer and/or its

competitors

• Locals leave their multinational jobs after ~5years

to work for a local firm for a higher salary

Classified: Public

MARKET UPDATE02

15|

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16|

Money printing by Central Banks is driving stock markets

Fed B/S Versus SP500 PE Ratio M2 Growth, 3-Month Trailing (Annualized)

• Money will make its way into EM stock and bonds. • US Fed predicts minimal stock market returns over the

next decade.

Classified: Public

17|

Foreign indirect investment – Vietnam most resilient to outflows

Source: Bloomberg, VinaCapital Research, 26 June 2020

FOREIGN FLOWS ($US bn) ($US mn) ($US mn) ($US mn) ($US mn)

Mcap 1W 1M 3M YTD

Vietnam 129 -14 +620 +260 -91

Total EM ASEAN 1,238 -894 -1,670 -5,988 -12,644

Philippines 153 -156 -149 -675 -1,291

Indonesia 399 -202 -225 -272 -963

Malaysia 226 -140 -792 -1,940 -3,732

Thailand 460 -396 -504 -3,101 -6,658

Flow/Mkt Cap % % % %

Vietnam -0.01 +0.48 +0.20 -0.07

EM ASEAN -0.07 -0.13 -0.48 -1.02

Classified: Public

18|

VN ID MY PH SG TH

2015 6.1 -12.1 -3.9 -3.9 -14.3 -14.0

2016 14.8 15.3 -3.0 -1.6 -0.1 19.8

2017 48.0 20.0 9.4 25.1 18.1 13.7

2018 -9.3 -2.5 -5.9 -12.8 -9.8 -10.8

2019 7.7 1.7 -6.0 4.7 5.0 1.0

2020 YTD -11.3 -22.2 -6.6 -20.8 -19.2 -15.8

-11.3

-22.2

-6.6

-20.8 -19.2-15.8

-40

-20

0

20

40

60

Vietnam Index is the best performing emerging market in region

Source: Bloomberg, VinaCapital Research, 26 June 2020, index returns in local currency terms and USD terms.

ASEAN market performance (%, USD terms)ASEAN market performance (%, local terms)

VN ID MY PH SG TH

2015 0.9 -21.3 -21.8 -8.4 -19.9 -21.6

2016 13.4 18.1 -6.9 -6.8 -2.1 20.5

2017 48.4 19.6 20.9 24.0 27.9 25.1

2018 -11.2 -8.8 -7.6 -17.0 -11.6 -10.8

2019 7.7 6.1 -5.0 8.2 6.5 9.7

2020 YTD -11.5 -24.2 -10.9 -19.3 -21.9 -18.3

-11.5

-24.2

-10.9

-19.3 -21.9-18.3

-40

-20

0

20

40

60

Classified: Public

19|

V-shaped recovery? Protracted recovery more likely

In Asia

• FY20 EPS have limited informational value.

Far more important is the steepness of recovery

into 2021-22.

• MSCI AC ex Japan analysts are expecting a

strong V-shaped recovery (~21% net profit

growth in 2021 followed by ~12% in 2022).

• A far more likely course will be a gradual &

protracted recovery.

• Policy risks: further fiscal stimulus, a 2nd covid-

19 bump, Global economic growth outlook, US-

China tensions, Rising EM indebtedness.

Classified: Public

20|

2H20 Outlook

In Vietnam

• Continued volatility for the 2H20. Exogenous

factors influencing market moves.

• Weak foreign interest; strong retail flow. The

market is an off-index bet amidst heightened

volatility & risks.

• When & if FII return, the wall of worry to

clamber over is high.

• Investors will have a blend of quality blue chip

stocks to consider, with calls based on

management & business quality.

• Banks, property, & consumers will be the first

port of call.

Three thematic baskets

• Early stage domestic recovery plays: Banks,

Property, Consumer Discretionary, Aviation

related, Brokers.

• Infrastructure: ACV, Construction Materials,

Property, Utilities.

• ‘Defensibles’: ACV, VNM, FPT, MWG, PNJ,

VHM, & HPG.

Classified: Public

PORTFOLIO UPDATE03

21|

Classified: Public

STRATEGY AND SECTOR ALLOCATION03.1

Classified: Public

23|

Period of

Uncertainty

Brace for uncertainty Address for insanity

Long-term outlook positive, short- to medium-term uncertainty

Vietnam’s fundamentals very much intact: young demographic, low

cost base, high literacy levels, rapid urbanization, expanding

middle-class.

Domestic consumption will recover; exports are unpredictable

Rising middle-class and wages will continue to drive domestic

consumption; export-driven manufacturing sectors will struggle.

Capital markets could not be any further from real economy

Earnings projections are down across sectors, yet stock markets

have recovered to pre-COVID levels, without significant stimulus

measures.

Potential upside is “priced-in”; hope earnings don’t disappoint

Market multiples close to all-time highs, so any deviation from the

forecasts is likely to be to the downside.

Post-COVID we will need to…

Classified: Public

24|

New Realities Our Strategies

1. Weaker consumer spending 1. Steer away from discretionary spending and retail

sectors (such as malls, restaurants and retail chains).

2. Stressed cashflows at businesses 2. Continue to back market leaders, but also invest in

short-medium term capital needs; provide growth

capital.

3. Limited upside on stock valuations 3. Focus on structured investments (guaranteed

downside protection, IRR, yields, and collateral cover).

4. Fewer offshore investors due to travel restrictions 4. Co-Investments opportunities; and when offshore

investors eventually return, they are a path for exit.

5. Some sectors are clearly worse-off than others 5.

Investment focus over the next 12-18 months

More interesting Less interesting

Real Estate Financial/Banks Energy

Healthcare Materials

Information

Technology

Consumer

Staples

Consumer

Discretionary

Classified: Public

25|

Current and target sector allocation as at 29 June 2020:

a risk-return based approach

As at 29 June 2020

Classified: Public

26|

VOF significant transactions over the past 12 months (FY2020)

Private Equity and structured investment activities dominate

• July 2019: USD8.4m invested in Petrolimex Aviation, 2nd largest jet fuel supplier for airlines,

30% market share.

• September 2019: Consortium invested USD21.4 million in Ngoc Nghia Industry, a leading

packaging manufacturer in Vietnam.

• November 2019: Consortium invest USD25.1 million in Projects Twins, leading hospitality,

F&B, convention and services company.

• February 2020: Signed documents to partially divest Project Indiana. Proceeds expected in

July 2020 on completion of regulatory approvals, market update on close.

• May 2020: Consortium invest USD20.0m in Project Kuala Lumpur, a leading consumer

staples business via a structured investment (min. 18% IRR, belt-and-braces collateral).

• June 2020: Consortium invest USD26.2 million in Project Tea Mask, a leading private hospital

and medical clinic group in Hanoi. Disbursement in July 2020, awaiting regulatory approvals.

Classified: Public

PORTFOLIO AND PERFORMANCE03.2

Classified: Public

28|

VOF portfolio as at 29 June 2020: PE portfolio allocation is at 20.2%

NAV as at 29 June 2020.

Asset Class

NAV

29 June

2020

Weight

29 June

2020

Target 12-

24 months

USDm % %

Listed equity 493.7 58.2% 55%

Unlisted

securities112.3 13.2% 12%

Private equity 171.8 20.2% 25%

Bond 29.7 3.5% 3%

Operating assets 12.5 1.5% 0%

Cash and others 28.9 3.4% 5%

TOTAL 848.9 100.0% 100

58.2%

13.2%

20.2%

3.5%

1.5% 3.4%

Listed Equity (58.2%) Unlisted Equity (13.2%)

Private Equity (20.2%) Bond (3.5%)

Operating Assets (1.5%) Cash and Others (3.4%)

USD848.9m

Classified: Public

29|

Top holdings: Capital Markets and Private Equity

As at 29 June 2020

Top 10 Listed HoldingsNAV

USDm%NAV

1. Hoa Phat Group (HPG) 113.7 13.4

2. Khang Dien House (KDH) 72.8 8.6

3. Airports Corporation of Vietnam (ACV) 56.8 6.7

4. Eximbank (EIB) 47.5 5.6

5. Phu Nhuan Jewelry (PNJ) 46.3 5.5

6. Vinamilk (VNM) 43.3 5.1

7. Quang Ngai Sugar (QNS) 28.8 3.4

8. FPT Corporation (FPT) 24.5 2.9

9. Orient Commercial Bank (OCB) 20.9 2.5

10. Coteccons (CTD) 17.0 2.0

Total 471.4 55.5

Top Private Equity HoldingsNAV

USDm%NAV

1. International Dairy Product 35.6 4.2

2. An Cuong Wood-Working 34.7 4.1

3. Tam Tri Medical JSC 22.0 2.6

4. Project Twins 20.3 2.4

5. Thai Hoa International Hospital 19.0 2.2

6. Ngoc Nghia Industry Service Trading 18.2 2.1

7. Petrolimex Aviation 15.4 1.8

8. Saigon Pearl Group 6.5 0.8

Total 171.8 20.2

Classified: Public

30|

Update of significant transactions for FY2020 YTD (31 May 2020)

All figures are gross selling/buying, unaudited, as at 31 May 2020.

USD’000 Bought Sold

Listed equities 63,304 135,720

Unlisted securities 818 6,336

Private equity 47,038 -

Operating assets - -

TOTAL 111,160 142,055

Summary of Buy/Sell transactions FY2020 YTD May

Ticker Main businessMarket Cap

(USDm)1

FPT (HOSE)FPT Corporation

Leading technology & outsourced software services

1,600

PHR (HOSE)Phuoc Hoa Rubber

Leading industrial land developer

296

VPB (HOSE)Vietnam Prosperity Bank (FE Credit)

Bank and leading consumer credit

2,350

VCB (HOSE)Commercial Bank for Foreign Trade of Vietnam

Leading commercial bank 13,582

MWG (HOSE)Mobile World

Leading consumer retail 1,664

VHM (HOSE)Vinhomes

Leading real estate developer

10,766

KDC (HOSE)Kido Group

Leading 265

Recently initiated positions in leading public companies

Classified: Public

31|

Fund performance FY2020 YTD 26 June 2020

NAV as at 31 December 2019 is audited, NAV as at 30 June 2019 is investment management performance basis. * VOF performance is based on NAV/share total return basis (assuming dividend distribution is reinvested at spot NAV/share on the exercise dates).

FY2020 YTD

Rolling basis

Change (%)

FY2019

as of Jun

Jul

2019

Aug

2019

Sep

2019

Oct

2019

Nov

2019

Dec

2019

Jan

2020

Feb

2020

Mar

2020

Apr

2020

May

2020

26 June

2020

VOF* (1) -1.9 -2.7 -3.9 -3.7 -0.6 -1.9 -1.2 -5.4 -8.1 -22.8 -12.6 -4.1 -3.1

VOF CAPM (2) -7.0 -1.1 -1.9 -1.7 -1.3 -4.2 -5.3 -9.5 -13.4 -31.8 -21.7 -10.5 -9.4

VN Index (3) -2.6 4.8 4.0 5.4 5.6 2.6 1.7 -1.0 -6.9 -31.2 -19.5 -8.9 -9.9

Rate of difference (delta )

1 minus 3 0.7-7.5 -7.9 -9.0 -6.2 -4.6 -2.9 -4.4 -1.3 8.4 6.9 4.8 6.8

2 minus 3 -4.4-5.9 -6.0 -7.0 -6.9 -6.9 -7.0 -8.4 -6.6 -0.6 -2.2 -1.6 0.5

FY2020 Month-to-month performance – Capital Markets performance has rebounded

Classified: Public

32|

Top 10 VOF CAPM Performance

CY2020: VOF CAPM performance vs VN Index

Source: Bloomberg, VinaCapital

Performance from 31 Dec 2019 to 31 May 2020.

* Stocks that are not in VNINDEX (QNS and ACV are listed in UPCOM, OCB is an OTC stock).

Top 10 Largest Companies Performance

Performance of top 10 holdings, CY2020 YTD 31 May 2020 (%)

11.0%7.7%

-1.3%-5.5%

-9.7%-13.1%

-15.7%-20.6% -21.2% -22.7%

45.0%

15.6%

4.3%

-1.3% -2.7% -3.1%

-15.7% -16.3%-21.3%

-25.5%-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

MSN CTG VNM VCB VHM BID VIC GAS SAB VJC CTD(2.1%

ofNAV)

HPG(13.7%

ofNAV)

QNS(3.0%

ofNAV)*

VNM(5.3%

ofNAV)

FPT(2.9%

ofNAV)

EIB(5.3%

ofNAV)

OCB(2.4%

ofNAV)*

KDH(8.0%

ofNAV)

ACV(6.5%

ofNAV)*

PNJ(6.0%

ofNAV)

Classified: Public

PIPELINE03.3

Classified: Public

34|

Private equity: Potential pipeline

As at 29 June 2020

NoProject name

Company sectorMain business Investment type

Implied equity

value (USDm)

Deal size

(USDm)Target stake Status

1 Tea Mask General hospital Equity 87.326.2

(VOF: 21.2)30%

Disbursement is expected

in 2nd week of July 2020.

2 Andes Steel structure provider Convertible bond 117.630.0

(VOF: 25.0)25.5%

Term sheet signed.

Due diligence complete.

3 TaipeiRecycled resin and

plastic productsConvertible bond 57.1

17.0

(VOF: 12)29.8%

Term sheet signed.

Revised business plan in-

progress.

4 Orient Convention centers Equity 188.047.0

(VOF: 42.0)25%

Total pipeline (excluding recent investments)120.2

(VOF: 100.2)

Classified: Public

APPENDIX04

35|

Classified: Public

36|

VOF portfolio highlights

1. Portfolio by asset class, inclusive of cash and others. Cash on hand.

2. Unaudited Net Asset Value as at month end, except for 29 June 2020.

3. In March 2020 the portfolio experienced a significant correction due to the impact on COVID pandemic on the market. Therefore these small-cap

holdings declined the least and hence they detracted the least from performance during that month.

Asset Class1

(%NAV)

Cash1 $28.9m $47.8m $39.4m $38.4m

NAV2 USDm / GBPm $849 / £691 $858 / £696 $788 / £634 $708 / £571

Sector Allocation

(%NAV)

Construction materials 17.5% 17.7% 16.4% 15.2%

Real estate & construction 18.2% 16.6% 16.3% 16.5%

Food & beverage 13.7% 12.5% 13.4% 15.3%

Financial services 11.8% 11.6% 10.8% 10.3%

Consumer discretionary 6.6% 7.2% 7.0% 6.2%

Top Holdings

(%NAV)

HPG (construction materials) 13.4% 13.7% 12.0% 10.3%

KDH (real estate development) 8.6% 8.0% 8.3% 8.1%

ACV (infrastructure) 6.7% 6.5% 7.1% 5.5%

PNJ (consumer discretionary) 5.5% 6.0% 5.8% 5.3%

VNM (consumer staples) 5.1% 5.3% 5.6% 5.7%

Top Contribution to

Performance

(m-o-m)

Top contributor KDH HPG HPG NT23

Second EIB EIB ACV VCI3

Third DBC VNM PNJ VIM3

31 May 2020 30 April 2020 31 March 2020

56.9%

12.6%

20.0%

3.5%1.5%

5.6%

54.3%

13.2%

22.1%

3.8%1.6%

5.0%

50.3%

12.7%

25.6%

4.1%1.8%

5.4%57%

13%

20%

3%

1%

6%

Listed Equity

Unlisted Equity

Private Equity

Bond

Operating Assets

Cash & Others

29 June 2020

58.2%

13.2%

20.2%

3.5% 1.5%3.4%

Classified: Public

1. Data as at 29 June 2020.

2. New fee structure applied from 1 July 2019.

3. Prepared in accordance with the Association of Investment Companies (AIC) recommended methodology.

VinaCapital Vietnam Opportunity Fund (VOF)

Fund type: Closed-end listed fund (LSE: VOF)

Listing: London Stock Exchange Premium Market Listing, FTSE 250

Focus: Alternative assets, Vietnam, multi-sector, high-growth focus

NAV1: USD849 million

Market Cap: USD716 million

Discount1: 15.6%

Investment manager: Andy Ho, since April 2007, over 20 years investment experience

Independent board: 5 independent members, diverse non-executive Board of Directors

Reduced Fees2: Management fee, 1.5% with a step-down tier structure

Performance fee, 12.5% with a fee cap, compounding 8% hurdle

Manager uses one-quarter of performance fee to buy VOF shares

TER3 1.7%

37|

Classified: Public

DISCLAIMER

The information contained herein has been prepared by VinaCapital Group Limited (the

“Company") and is subject to updating, completion, revision, further verification and

amendment without notice.

The information contained herein has not been approved by any listing authority or any

investment regulator. The information does not constitute or form part of any offer for

sale or solicitation of any offer to buy or subscribe for any securities nor shall they or

any part of them form the basis of or be relied on in connection with, or act as any

inducement to enter into, any contract or commitment whatsoever.

No undertaking, representation, warranty or other assurance, expressed or implied, is

made or given by or on behalf of the Company or any of its directors, officers, partners,

employees, agents or advisers or any other person as to the accuracy or completeness

of the information or opinions contained herein and no responsibility or liability is

accepted by any of them for any such information or opinions or for any errors,

omissions, misstatements, negligence or otherwise for any other communication written

or otherwise.

The information herein may not be reproduced, re-distributed or passed to any other

person or published in whole or in part for any purpose. By accepting receipt of this

document, you agree to be bound by the limitations and restrictions set out above.

Neither these pages nor any copy of them may be taken or transmitted into or

distributed in any jurisdiction where the distribution of such material would be prohibited

under the jurisdiction’s applicable securities laws. Any failure to comply with this

restriction may constitute a violation of national securities laws.

Past performance is not a guarantee of future returns.

VinaCapital

17th Floor, Sun Wah Tower

115 Nguyen Hue, District 1, Ho

Chi Minh City, Vietnam

Tel: +84 28 3821 9930

Fax: +84 28 3821 9931

Email: ir@vinacapital.com

Website: www.vinacapital.com

ANDY HO

Managing Director and Chief

Investment Officer

andy.ho@vinacapital.com

KHANH VU

Deputy Managing Director

Investments

khanh.vu@vinacapital.com