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VIPC BROCHURE

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VIPC Viet Investment Power

TABLE OF CONTENTS PART 1:VIETNAM – EMERGING FOR OPPORTUNITIES ...................................................... 6 I. Vietnam – Land for Opportunities............................................................................................... 7 1. Vietnam at a glance ................................................................................................................. 7 1.1 Geography ......................................................................................................................... 7 1.2 Society............................................................................................................................... 7 1.3 Infrastructure ..................................................................................................................... 7 1.4 Economy ........................................................................................................................... 7 2. Why do invest in Vietnam ...................................................................................................... 8 II. Foreign Direct Investment in Vietnam ....................................................................................... 9 1. FDI inflows to Vietnam (1988- May 2010) ............................................................................ 9 2. FDI distribution by sector (1988-2007) ................................................................................ 10 3. Top ten countries investing to Vietnam ................................................................................ 11 III. Post – WTO Investment climate & Legal framework ............................................................ 12 1. Vietnam’s commitments to WTO ......................................................................................... 12 1.1 Schedule of concessions & commitments on goods: ...................................................... 12 1.2 Schedule of specific commitments on trade in services ................................................. 12 2. Investment-related obligations .............................................................................................. 12 3. Investment Opportunities entitled to Incentives ................................................................... 13 3.1 Preferential sectors: ....................................................................................................... 13 3.2 Regions entitled to Incentives: ........................................................................................ 13

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VIPC Viet Investment Power

4. Incentives on Corporate Income Tax .................................................................................... 13 5. Import Duty Exemption & Reduction................................................................................... 14 6. Forms of Investment ............................................................................................................. 14 7. Licensing & Registration Procedure ..................................................................................... 15 8. Investment Licensing Bodies ................................................................................................ 15 IV. Investment- related cost .......................................................................................................... 16 1. Monthly-wage (Source: JETRO survey, May 2009) ............................................................ 16 2. Land price, office rent (Source: JETRO survey, May 2009) ................................................ 16 3. Public Utility & Transportation expenses ............................................................................. 17 (Source: JETRO survey, May 2009) ......................................................................................... 17 4. Taxation (Source: JETRO survey, May 2009) ..................................................................... 18 PART 2: FOREIGN INVESTMENT IN VIETNAM ................................................................... 19 (Indirect investment in stock market) ........................................................................................... 19 Foreign investment in Vietnam's securities market ...................................................................... 19 I.Foreign investment in Vietnam's securities market .................................................................... 20 1. WHO are foreign investors? ................................................................................................. 20 2. What must a foreign investor do? ......................................................................................... 20 3. What must a foreign investor not do? ................................................................................... 21 4. Making the investment ......................................................................................................... 21 5. Appointment of a transaction representative ........................................................................ 22 6. Engaging a local fund manager............................................................................................. 22

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VIPC Viet Investment Power

7. Reporting............................................................................................................................... 22 8. What's missing? .................................................................................................................... 22 8.1 Personal income tax ( for individual).............................................................................. 22 8.2 Enterprise income tax (FOR institute) ............................................................................ 23 8.3 Capital investment tax (FOR investor) ........................................................................... 23 II.Investment entrustment process ................................................................................................ 23 III. Fee ........................................................................................................................................... 24 1. Fee for investment portfolio (VIPC): ................................................................................. 24 2. Broker fee (Securities company): ...................................................................................... 24 3. Custodian fee and asset keeping (custodian bank): ........................................................... 24 IV. Tax (MENTION above) ......................................................................................................... 25 1. Individuals (one of the following case) ............................................................................. 25 2. Enterprise income tax (Mention above) ............................................................................. 25 2.1 Institutes .......................................................................................................................... 25 2.2 Capital investment tax..................................................................................................... 25 PART 3:VIPC CAPITAL MANAGEMENT CORPORATION .................................................. 26 I. Our Firm .................................................................................................................................... 27 II.VIPC Products & Services ........................................................................................................ 29 1. VIPC Product family............................................................................................................. 29 2. Real Estate Fund (REF) ........................................................................................................ 29 2.1 Investment Objective ...................................................................................................... 29

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VIPC Viet Investment Power

2.2 Investment Strategy ........................................................................................................ 30 2.3 Investment process .......................................................................................................... 30 2.4 Why Vietnam? ................................................................................................................ 31 2.5 Key Facts ........................................................................................................................ 32 2.6 VIPC Real estate Fund structure ..................................................................................... 34 2.7 What are the benefits VIPC’s REF bring to investors? .................................................. 35 3. Portfolio management services ............................................................................................. 36 3.1 VIPC Portfolio Management Service (PMS) OFFERS: ................................................. 36 3.2 Investment methodology:................................................................................................ 36 3.3 PMS Term ....................................................................................................................... 37 3.4 VIPC 6 PMS Models ...................................................................................................... 38 3.5 Portfolio asset allocation and performance in 2009 ........................................................ 41 4. Advisory services .................................................................................................................. 47 4.1 About Our Team: ............................................................................................................ 47 4.2 Advantages to deal with us ............................................................................................. 47

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VIPC Viet Investment Power

PART 1: VIETNAM – EMERGING FOR OPPORTUNITIES

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VIPC Viet Investment Power

I. VIETNAM – LAND FOR OPPORTUNITIES 1. VIETNAM AT A GLANCE

1.1 GEOGRAPHY

Population (2009): 85.79 millions

Centre of Southeast Asia

Area: 331,698 sq. km

Coastline: 3,260 km

1.2 SOCIETY

Growth rate (2007): 1.2%

Under 30 yrs old: >60%

Literacy rate: >90%

1.3 INFRASTRUCTURE

National highways: 86,327 km

Railways: 3,219 km

International Airports: Hanoi, Da Nang & Ho Chi Minh City

International Seaports: 11 (Cai Lan, Da Nang, Van Phong, etc.)

150 IPs with area of 31,436 ha

8 EZs with area of 323,940 ha

1.4 ECONOMY

Real GDP: 94.68 billion US$

Real GDP growth rate (2009): 5.2%, year 2010e: 8.5%

Real GDP per capita (2009): US$ 1052,year 2010e: 1200 US$

Export Turnover (May 2010): US$ 6.1 billion

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VIPC Viet Investment Power

2. WHY DO INVEST IN VIETNAM 

Political and socio-economic stability

Brisk and steady economic growth

Transportation hub of Southeast Asia

Abundant young labor force at low price

Member of WTO, APEC, ASEAN, ASEM

Favorable FDI promotion policies

Rapidly improving infrastructure

Vietnam GDP Growth rate (%) 9.54 9.34

10 8.83

8.7

9

8.08

8.4

8.15

6.75

7 5.81

5

8.2

8.48

8.28

7.7

8

6

Source: FIA , GoldmanSachs forecast

7.1 6.84 7.01 6.32

5.76 5.2 4.77

4 3 2 1 0

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VIPC Viet Investment Power

II. FOREIGN DIRECT INVESTMENT IN VIETNAM 1. FDI INFLOWS TO VIETNAM (1988- MAY 2010) US$ mil. 70000

64,000

60000

50000

40000

30000

Investment inflows

21,300 21,480

Disbursed

20000

10000

10,200 11,500 10,000 8,030 5,920

3,600

1988-1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 5 months 2010

0

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VIPC Viet Investment Power

2. FDI DISTRIBUTION BY SECTOR (1988-2007)

FDI distribution by sector( 1988-2007)

Oil & gas industry Light industry

OfficeApartment

New urban

IPs-EZs infrastructure Oil & gas industry

4.09%

11.07%

4.59%

Agro-forestry

15.93%

Tourism 1.08% Transport ation-Post

Light industry Food Building

1.78% Hotel-1.47%

Heavy industry

7.21%

Services

5.08% 2.53% 4.71%

Services Marine industry

Marine industry

28.73%

TransportationPost Hotel-Tourism

6.90%

Banking-Finance

0.53% 4.28%

AgroForestry

Heavy industry

Building

Food

Source: FIA

Culture- MedicalEducation New urban infrastructure Office-Apartment building IPs-Ezs infrastructure

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VIPC Viet Investment Power

3. TOP TEN COUNTRIES INVESTING TO VIETNAM

No.

Countries

Number of Investment capital

Legal capital

Disbursed capital

projects

1.

Korea

1857

14,398,138,655

5,168,461,054

2,738,114,393

2.

Singapore

549

11,058,802,313

3,894,467,177

3,858,078,376

3.

Taiwan

1801

10,763,147,783

4,598,733,632

3,079,209,610

4.

Japan

934

9,179,715,704

3,963,292,649

4,987,063,346

5.

British Virgin

342

7,794,876,348

2,612,088,725

1,375,722,679

Islands

6.

Hong Kong

457

5,933,188,334

2,166,936,512

2,161,176,270

7.

Malaysia

245

2,823,171,518

1,797,165,234

1,083,158,348

8.

USA

376

2,788,623,488

1,449,742,606

746,009,069

9.

Holland

86

2,598,537,747

1,482,216,843

2,031,314,551

10.

France

196

2,376,366,335

1,441,010,694

1,085,203,846

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VIPC Viet Investment Power

III. POST – WTO INVESTMENT CLIMATE & LEGAL FRAMEWORK 1. VIETNAM’S COMMITMENTS TO WTO

1.1 SCHEDULE OF CONCESSIONS & COMMITMENTS ON GOODS:

Bound rates for 10,600 tariff lines

An average cut from 17.4% to 13.4% phased over 5-7 years since 2007

Largest reduction applied to garments & textiles, fish& fish products, wood & paper, other manufactured goods, machinery, electrical & electronic items

Committed to be member (fully or partially) to initiatives for IT products, garments & textiles, medical equipment, aircraft, chemicals, construction, equipment etc. Tariffs cut phased over 3-5 years since 2007

1.2 SCHEDULE OF SPECIFIC COMMITMENTS ON TRADE IN SERVICES

Open door in 11 out of 12 service sectors (or 110 out of 115 sub-sectors), including: business services, communication, construction & related engineering, distribution, health,

insurance,

education,

tourism,

environment,

finance,

entertainment,

transportation, etc. 

Commitments put in force right after WTO accession. In some cases, they’re phased over 2-4-6 years since 2007

2. INVESTMENT-RELATED OBLIGATIONS 

TRIMS (effective from 11 Jan 2007): Eliminate the application of requirements on trade balance, foreign exchange control on imports, export performance, export restrictions and local contents

Intellectual Property Rights: Comply with TRIPS Agreement upon accession

Transparency: Make public draft WTO-related legal instruments for public comments; Make public all legal documents; Provide WTO members with annual reports on equalization program

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VIPC Viet Investment Power

3. INVESTMENT OPPORTUNITIES ENTITLED TO INCENTIVES

3.1

PREFERENTIAL SECTORS:

Manufacture of new material & production of new energy, manufacture of high-tech products, bio-technology, information technology & mechanical manufacturing;

Breeding, rearing, growing & processing of agricultural, forestry & aquaculture products, production of salt, creation of new plant & animal varieties;

Utilization of high technology & advanced techniques, protection of the ecological environment & research, development & creation of high technology

Labor intensive industries;

Construction &development of infrastructure facilities & important industrial large-scale projects;

Professional development of education, training, health, sports, physical education & Vietnamese culture;

Development of traditional crafts & industries; and

Other manufacturing & service sectors which require encouragement

3.2 REGIONS ENTITLED TO INCENTIVES:

Regions with special difficult socio-economic conditions;

Regions with difficult socio-economic conditions; and

Industrial zones, Export processing zones, High-tech zones & Economic zones

4. INCENTIVES ON CORPORATE INCOME TAX 

Standard rate: 28%

Preferential rates of 10%, 15% and 20% for a period of 15 years, 12 years and 10 years are available depending on the scope of activities and location of the investment.

Tax holidays: A complete exemption from CIT for a certain period (4 yrs at maximum) followed by a period where tax is charged at half rate (9 yrs at maximum)

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VIPC Viet Investment Power 

Losses: Carry forward losses for 5 years

Other incentives: Exemption or deduction of land use tax, land use fee, land rent, and water surface rent

5. IMPORT DUTY EXEMPTION & REDUCTION Exemption applied to projects in investment encouraged sectors & regions on: 

Machinery & equipment, specialized means of transportation & construction materials( which cannot be produced in Vietnam) comprising the fixed assets of certain projects

Raw materials, spare parts, accessories, other supplies, samples, machinery & equipment imported for the processing of goods for export and finished products imported to stock to the processed goods

Preferential rates applied to imported goods from countries that enjoy MFN with Vietnam (89 countries). Rates vary by the category of goods. Special preferential rates applied to imported goods from countries that signed special agreement with Vietnam (e.g. ASEAN) Ordinary rates are 150% of preferential rates 6. FORMS OF INVESTMENT 

100% foreign-owned enterprise o Limited liability Company o Joint stock company o Partnership o Holding company

Joint venture

Business cooperation contract

BOT, BTO, BT

Capital contribution, purchase of shareholding,

M&A

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VIPC Viet Investment Power

7. LICENSING & REGISTRATION PROCEDURE

8. INVESTMENT LICENSING BODIES

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VIPC Viet Investment Power

IV. INVESTMENT- RELATED COST 1. MONTHLY-WAGE (SOURCE: JETRO SURVEY, MAY 2009)

Monthly

Ha Noi

HCMC

Shanghai

Hong Kong

Singapore

Worker

96

96

249

1294

1027

Engineer

270

270

610

2092

1892

Manager

798

798

966

3237

3139

70.7

70.7

140.4

Nil

_

wage(US$)

Legal minimum wage(monthly)

2. LAND PRICE, OFFICE RENT (SOURCE: JETRO SURVEY, MAY 2009)

Land price, office rent ($)

Ha Noi

HCMC

Shanghai

Hong Kong

Singapore

0.22

1.8-3.1

309.43

0.52-1.47

27.5-73.2

82.5

64.7

28-132

36-65

Hanoi

2550

2,047-

1,805-3,868

2,672-4,342

Industrial land

0.119-

( yearly, per sq.m)

0.142 (IPs)

Office rent ( monthly, per sq.m) Housing rent for

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VIPC Viet Investment Power

foreigners(per

tower:

month)

3600

4,386

International call charge

0.636

0.636

2.1-3.5

7.06

7.06

7.3

0.38-1.08

0.7-1.8

( for 3 min. to Japan) Mobile phone subscription fee Internet connection fee( per month)

29 -

194.44

194.44

365.5

33

240.5

3. PUBLIC UTILITY & TRANSPORTATION EXPENSES (SOURCE: JETRO SURVEY, MAY 2009)

Public Utility Expenses Transportation fee

Ha Noi

HCMC

Shanghai

Hong Kong

Singapore

0.028-0.103

0.09

0.12

0.147

0.59-1.4

0.22

4.6-11

1.39

($) Electricity rate for business use ( per KWh)

0.0280.103

Water rate for business use ( per

0.292

cu.m)

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VIPC Viet Investment Power

Gas rate for business use ( per cu.m)

Rate per

Rate per kg:

kg: 0.9

0.9

0.65

0.65

0.74

1.62

1.061-1.066

0.65

0.65

0.71

1.06

0.830

Regular gasoline price (1 liter) Diesel oil price( 1 liter)

0.25-0.28

rate per MJ: 0.026

0.135

4. TAXATION (SOURCE: JETRO SURVEY, MAY 2009)

Taxation

Hanoi

HCMC

Shanghai

Hong Kong

Singapore

Corporate income tax

28%

28%

25%

16.5%

18%

Personal income tax rate

40%

40%

45%

15%

20%

0%, 5%,

0%, 5%,

10%

10%

17%

Nil

7%

10%

10%

10%

Nil

10%

0%

0%

10%

Nil

Nil

VAT

Tax on interest remitted to Japan

Tax on dividend remitted to Japan

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VIPC Viet Investment Power

PART 2: FOREIGN INVESTMENT IN VIETNAM (INDIRECT INVESTMENT IN STOCK MARKET)

FOREIGN INVESTMENT IN VIETNAM'S SECURITIES MARKET

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VIPC Viet Investment Power

I.FOREIGN INVESTMENT IN VIETNAM'S SECURITIES MARKET CONTENTS 1.

Who are foreign investors?

2.

What must a foreign investor do?

3.

What must a foreign investor not do?

4.

Making the investment

5.

Appointment of a transaction representative

6.

Engaging a local fund manager

7.

Reporting

8.

What's missing? (Fee, Tax)

1. WHO ARE FOREIGN INVESTORS? 

Foreign citizens, including Viet Kieu (ie. overseas Vietnamese);

Entities established offshore o Branch offices in Vietnam o 100 per cent foreign-owned enterprises incorporated in Vietnam o Offshore investment funds o Vietnam domiciled investment funds with 100 per cent foreign ownership.

2. WHAT MUST A FOREIGN INVESTOR DO? Foreign investors who invest in listed and unlisted securities or participate in securities auctions in Vietnam must:

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VIPC Viet Investment Power 

Obtain and register a securities trading code (the Code) with the VSD – a foreign investor may have only one Code; and

Open an indirect investment capital account at any bank that is authorized to provide custody and foreign exchange services.

If a foreign investor chooses to invest using a local fund manager then that fund manager will apply and register the Code for the investor. 3. WHAT MUST A FOREIGN INVESTOR NOT DO? A foreign investor's Code may be suspended or terminated if the investor: 

Provides inaccurate or deceptive information in relation to the application for the Code or other information as required by the SSC;

Engages in illegal practices such as collusion, market manipulation or money laundering; or

Breaches foreign exchange regulations

4. MAKING THE INVESTMENT Three ways for a foreign investor to make securities investment in Vietnam: •

The foreign investor directly carries out the transaction by instructing a securities company to place the order;

The foreign investor appoints a transaction representative to place the order for the foreign investor; or

The foreign investor engages a local fund manager to manage the foreign investor's securities investment.

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VIPC Viet Investment Power

5. APPOINTMENT OF A TRANSACTION REPRESENTATIVE A foreign investor may appoint only one individual in Vietnam under a power of attorney 

The attorney must hold a securities business practicing certificate issued by the SSC;

The attorney

must not be an employee of any local securities company, fund

management company or custodian bank; 6. ENGAGING A LOCAL FUND MANAGER 

A local fund manager under an investment management agreement to carry out portfolio and asset management and make investment decisions for the foreign investor (including decisions in relation to the type of securities, volume, price and trading date)

A foreign investor may not engage any other individual or entity to carry out such management activities for the investor.

Vietnam representative offices of offshore funds which are currently carrying out these functions are doing so illegally.

7. REPORTING Securities companies, fund managers and transaction representatives are required to report periodically to the SSC on the securities transactions of the foreign investor using a standard form. 8. WHAT'S MISSING?

8.1 PERSONAL INCOME TAX ( FOR INDIVIDUAL)

20 per cent of the net gain or

0.1 per cent of the value of the securities transfer

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VIPC Viet Investment Power

8.2 ENTERPRISE INCOME TAX (FOR INSTITUTE)

0.1 per cent of the value of the securities transfer

8.3 CAPITAL INVESTMENT TAX (FOR INVESTOR)

5 per cent of the net gain

II.INVESTMENT ENTRUSTMENT PROCESS

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VIPC Viet Investment Power

III. FEE 1. FEE FOR INVESTMENT PORTFOLIO (VIPC):

2% annual

NAV

Fee of asset management

2. BROKER FEE (SECURITIES COMPANY):

0,1%

Transaction value

Broker fee

3. CUSTODIAN FEE AND ASSET KEEPING (CUSTODIAN BANK):

0,01%

1/12 x 0,06%

Total value of a transaction

Fee on transaction

NAV

Custodian fee

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VIPC Viet Investment Power

IV. TAX (MENTION ABOVE) 1. INDIVIDUALS (ONE OF THE FOLLOWING CASE)

Net gain

20%

the value of the securities transfer

0,1 %

Personal income tax

Personal income tax

2. ENTERPRISE INCOME TAX (MENTION ABOVE)

2.1 INSTITUTES

the value of the securities transfer

0,1%

Enterprise income tax

2.2 CAPITAL INVESTMENT TAX

Net gain

5%

Capital investm ent tax

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VIPC Viet Investment Power

PART 3:

VIPC CAPITAL MANAGEMENT CORPORATION INVESTMENT HUB TO VIETNAM

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VIPC Viet Investment Power

I. OUR FIRM VIPC Capital Management or well known as VIPC Fund Management is an independent national licensed investment fund upon teamwork management and trustworthy pass relationships with investors. The legal entity shareholder of VIPC is Viet Vinh Phu Company, a highly reputation domestic and international financial investment organization. Together with Viet Vinh Phu Company, VIPC is established by individual investors who have comprehensive education and extensive experience in the world and Vietnamese financial and stock market. Standing on a strong foundation, VIPC’s shareholders now has the largest shares in Saigon Commercial Bank, major shares in Great Truong Son project and Khanh Hoi Sugar Joint Stock Company VIPC offers independent and institutional investors variety range of investment capacities to match with hundreds of professional value contacts and investment opportunities in one of the most attractive emerging markets, Vietnam in Real estate, Securities and Private Equity.

Name

VIPC CAPITAL MANAGEMENT CORPORATION

Establishment

January 23, 2009

VAT Number

Business Scope Regulated Body

Address

Tel

Fax

0306790482 Fund management and investment portfolio management (Asset management) State Securities Commission of Vietnam (SSC)

No. 8, Nguyen Hue St. Dist 1, HCMC. Vietnam

(+84-8) 38277078

(+84-8) 38277079

(+84-8) 38277487

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VIPC Viet Investment Power

URL

Chartered Capital

www.vipc.com.vn

33.000.000.000 VND 1. VIET VINH PHU INVESTMENT FINANCE CO., LTD 2. PARAGON CORP. (http://www.saigonparagon.com)

Major Share Holders

3. Mr. Nguyen Xuan Tung 4. Mr. Doan Duc Vinh Ms. Vu Thi Toan

Legal Consultant

Vilaf Hong Duc

Representative Director

Mr. Nguyen Xuan Tung Mr. Nguyen Xuan Tung

Chairman

Mr. Nguyen Ho Nam

Board Member

Mr. Doan Duc Vinh

Board Member

Mr. Hoang Duc Hoa

Board Member

Ms. Vu Thi Toan

Board Member

Board of Directors

Legal Consultant

Auditor

Custodian Bank

Bank Account Number

Asset under management

Vilaf Hong Duc

AASCS

BIDV

BIDB000016

VND ( Vietnamdong)

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VIPC Viet Investment Power

II.VIPC PRODUCTS & SERVICES 1. VIPC PRODUCT FAMILY

2. REAL ESTATE FUND (REF)

2.1 INVESTMENT OBJECTIVE

Primarily Investment objective of VIPC Real Estate fund is by investing attractive projects at the early stages in Vietnam. The Fund will leverage its strong connected local networks and experience in property development and redevelopment of upscale residential, commercial and private projects to maximize an attractive overall return through diversified property portfolio.

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VIPC Viet Investment Power

2.2 INVESTMENT STRATEGY

To achieve a balanced risk-reward profile, the fund will be invested in three broad classes of companies: a. Projects, which are completed - this would comprise real estate assets, which are in use with established, high-quality tenants. Such asset class would typically denote steady income type characteristics. b. Projects in development stage - where the lead-time to commercial deployment is typically between one-three years, and the completed projects subsequently would have contractual off-take arrangements in place. c. Projects in the planning stage - where the lead-time to commercial deployment would be three-six years. These projects would offer the highest amount of return, although with a greater risk. 2.3 INVESTMENT PROCESS

Stage 1

Best

locations/lands

for

investment activities nomination (Industry

Screening)

• Site visit initial evaluation for nominated

projects

(Site

Inspections) • Geological studies for project locations ( Evaluation)

Stage 2 Drafting of feasibility studies • Information of legal studies with

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VIPC Viet Investment Power

regards to real estate activities • Maintenance and management plan examination. • Real estate valuation (appraisal) services •

Due diligence

Stage 3 • Industrial real estate services • Real estate management (market price, market rent, rent collection and follow-up) • Real estate applications and process clearance • Loan collateral and loan transitions services • Loan implementation services • Mortgage services • Real estate segmentation services (apartments and condominiums) • Other real estate related services 2.4 WHY VIETNAM?

Vietnam’s economy and real estate sector in particular are high on its ride to prosperity.

As

Vietnam’s

economic

growth curve rises, real estate have emerged as one of the most appealing investment areas for domestic as well as foreign investors. 

Maximum growth is attributed to its growth

from

the

booming

young

populations, since an estimated 60 per cent of the new construction is for the newlywed’s family.

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VIPC Viet Investment Power 

Investment scenario has certainly undergone a paradigm shift in Vietnam, rental return from new residential apartment’s ranges from 8 to 10.5%, and that from commercial property in Vietnam metros is around 12-14%, one of the highest in the world.

According to the Emerging Trends in Real Estate® Asia Pacific 2010 Report published by PricewaterhouseCoopers LLP (PwC), Vietnam is ranked 3rd in the regional list of countries that are least impacted by global economic crisis in 2009 and 2010. Thus, Vietnam real estate market is a promising destination for stability-expected investment flows

The report also states that Ho Chi Minh City of Vietnam is ranked 3rd for development prospects in 2010 and highly graded in segment ranking. Besides, the city is projected to achieve the world highest average real growth rate of GDP in the period 2008-2025, reaching 7% per annum

Also marked in the report, HCMC average yields in grade A office, retail, residential and industrial segments in 2009 range from 11.5% to 14%- an outstanding outcome comparing to other Asia Pacific players. Hotel and retail hold the 2nd place while segments of industry; office and residential housing are respectively ranked as 4th, 6th and

7th

in

the

list.

2.5 KEY FACTS

Selling and buying Vietnam property is now considered as the most profitable and attractive business opportunity in the present real estate scenario in ASEAN. User demands have added to strength of real estate markets across the commercial, residential and retail sectors in Vietnam, especially commercial property with exceeded supply for the past few years.

There has also been an upward swing on the real estate price values in the recent years. Due to the huge demand and rising prices, investment and speculative interest in real estate is growing while excess money supply, inflation and regular depreciation of VND to US$ are adding to the trend in favor of the real estate sector.

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VIPC Viet Investment Power 

In the last 2 years, the capital values of the commercial office spaces has increased by up to 25% owing to the increase in the demand from global business reallocation and domestic professional business sectors across major metros in Vietnam. -

Factors Favoring Real Estate’s Investment, easy availability of housing finance, burgeoning income and better job prospects, increase of nuclear families have given a boost to the demand in Vietnam. The net yields (after accounting for all outgoings) on residential property are currently at 8-10.5 % p.a. However, these investments have benefited from the improving residential capital values. As such, investors can count on potential capital gains to improve their overall returns. Capital values in the residential sector have risen by about 40-200% p.a in the last 5 years.

The residential market in Vietnam has been growing due to increasing demand from retailers; higher disposable incomes. The capital appreciation in this sector is close to 2035% p.a. However, the risks associated with this sector are higher as retailers are prone to cyclical changes typical of a business cycle. Changing consumer behavior combined with increasing disposable incomes will ensure further growth of the retail sector in Vietnam

In the present day scenario, if there is any powerful investment tool that brings burgeoning financial returns, it is VIETNAM REAL ESTATE!!! Investors should consider the parameters minutely and meticulously to find out why investing in Vietnam real estate now is the best viable option.

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VIPC Viet Investment Power

2.6 VIPC REAL ESTATE FUND STRUCTURE

Investment manager

VIPC Capital

Investment advisor

Dr. Markus Freiburghaus

Minimum investment

200 million USD

Term

Vote every 5 years to wind up fund

Initial unit price

5 USD

Distribution

At the end of investment

Number of calls

100% investment up – front

Withdrawal

Not permitted during term (subject to charter fund)

Auditor

Ernst and Young / KPMG or Grant Thornson

Custodian

BIDV / Deutsche Bank

Lawyer

Vilaf Hong Duc

Management fee

2%

Investment manager

VIPC Capital

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VIPC Viet Investment Power

Performance Fee

Incentive fee of 20% of total increase of the NAV over a hurdle rate of 15 % annual returns with higher watermark and catch up.

Fee & Tax

See

principal

information

section

(www.vipc.com.vn )

2.7 WHAT ARE THE BENEFITS VIPC’S REF BRING TO INVESTORS?

Liquidity: When an investor invests directly in an individual property, buying and selling proves a complex, time-consuming process. By contrast, an investment in VIPC Real Estate Fund will be more readily converted into cash as these units will be traded on the stock exchange when funds fully allocated.

Affordability: Real estate has traditionally been a sound investment option but remains limited to only a few as the amount of money required for investing in real estate directly is very high. VIPC REF will allow common investors to reap benefits of investment in real estate without putting in significant amounts.

Professional management: Real estate investment in Vietnam is fraught with risks related to documentation, title of property, legal aspects and so on which would be mitigated in this scenario. REF would also provide new investment avenues to pension funds, endowment funds, insurance companies, thereby bringing the institutional investor into the ambit of the real estate market. This will further boost professionalism in the real estate sector. VIPC REF structure is an ideal instrument for propelling investments into real estate. It combines the best features of the real estate industry with other financial instruments, and gives

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VIPC Viet Investment Power

the investor a practical and efficient means for including professionally managed real estate in his investment portfolio. 3. PORTFOLIO MANAGEMENT SERVICES

3.1 VIPC PORTFOLIO MANAGEMENT SERVICE (PMS) OFFERS:

Appointed Trust Agreement- we will follow your instruction and place your orders, we only act as an executor and clear your trades. Non Appointed Trust Agreement- a Managed Discretionary Account service and you hold your stock trading account with us, we will on be half of you to make investment decisions and clear all the trades for you. VIPC has 5 qualified investment managers to manage client assets in our PMS, on the basis of their expertise in managing fund portfolios.

Based on a completed Investor Profile

Questionnaire, investment manager of VIPC will review of individual financial situation, investment objectives, risk tolerance levels, planned investment time horizon, and recommend a long-term target portfolio strategy. We have six well-performed long term Portfolio Models being tested and fits to different risk appetites of investors. All our services are designed to help you to invest your money in a professionally managed portfolio using asset allocation principles. 3.2 INVESTMENT METHODOLOGY:

When we identify a specific sector to target for investment, deeply research the space and identify actionable investment opportunities. Combines “top down-sectors” (evaluating and selecting sectors based on carefully considered investment theses) and “bottom up-individual stock” assigning a team of investment professionals to get to know, at a Granular Level. It is a targeted, proactive, repeatable process that we apply to more than 5 sectors of stocks and that is core value of our investment approach. This targeted process sometimes can take many years to identify the new stocks, but we believe that it enables us to produce high quality, proprietary investment opportunities in sectors where we face limited competition. As a result of

36


VIPC Viet Investment Power

this process, more than two-thirds of the Discretionary Managed Account (DMA) and Portfolio Management Service (PMS) made by the VIPC since our establishment in 2009 have been internally generated.

3.3 PMS TERM

Product

PMS

Term

1 - 5 years

Minimum Investment

US$100,000.00

Currency

USD, AUD, EURO, SGD and JPY

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VIPC Viet Investment Power

Investment Objective

To generate a stable return on an annual basic with strong emphasis on capital preservation

Trading Fee

0.1% on each transaction

Management Fee

2%/year

Early Redemption Fee

Negotiable

Report

Monthly/Quarterly

Withdraw notice

1 month before

3.4 VIPC 6 PMS MODELS

Name of

Objectives

Styles, risk and return

PMS

Strategy, asset classes and allocation

VIPC

VIPC 1 aims to

VND denominated, selected

Depends on economic

Aggressive

provide superior

specific sectors by morning

cycles, OTC & Listed

Growth

returns (before

star with rigorous research to

stocks in Vietnam stock

HOSE &

fees and taxes)

target for high growth

trading market ( 95 %

HASTC

over the long

opportunities.

allocation)

stocks

term through

Risk: High

capital growth, by investing in growth stocks.

38


VIPC Viet Investment Power

Mainly consist of

VND denominated, selected

OTC and listed stocks in

VIPC

companies with

great potential of capital

Vietnam stock trading

Growth

above-average

earnings stocks and invest to

market 65% high growth,

growth in

asset classes with stable

30% High Dividend

earnings that rein

profit, while reserve some

stocks, 5 % Cash.

vest their

cash in fixed income.

earnings into

Risk: Medium-High

expansion, acquisitions, or research and development.

Well balanced VIPC Balance

VND denominated, invest in

stable income and large cap with steady growth

OTC & Listed stocks in Vietnam stock trading

capital growth in

and asset classes with an

market ( 40 % high

medium and

fixed income.

growth , 30 % large cap

long-term

Risk: Medium

)Vietnam Commercial Bank Instruments (25%). Cash 5%

Income from

VND denominated, securities 40% in Large & Mid Cap

dividends of big

instrument qualified with

with positive earnings &

Conservative cap low volatility

great potential of higher

high dividend outlook ,

with some

return. While invests in large

20% High growth, while

exposure to

cap with positive earnings

35-40% in high income

growth in

outlook.

bank instruments.

medium and

Risk: Medium-Low

VIPC

Balance

long-term. VIPC 5 invests

VND denominated, steady

50% Banking instruments

VIPC

mostly in the

incomes from different

with superior returns

Vietnam

defensive assets

banking instruments with

including corporate bonds

39


VIPC Viet Investment Power

High Income of cash and fixed income, with

return warranted.

and debentures or bills,

Risk: Low

35% in large cap with

some exposure to

steady dividends, 10%

growth assets.

high growth, 5% in cash.

Capital

VND or USD denominated,

An investment mixes

VIPC

conservation and

including money market

allocation 85% of highly

Preservation

well protected

instruments, benchmarking to

liquidated cash assets,

from Inflation

local inflation rate as a target such as VND, or USD. 10 return.

% in large cap, 5% in high

Risk: Very Low

growth.

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VIPC Viet Investment Power

3.5 PORTFOLIO ASSET ALLOCATION AND PERFORMANCE IN 2009

VIPC Aggressive Growth Fund Cash

Coal& mineral mines 6.80% Plastic, rubber& fiber

5%

Information technology 6.80%

Banking 10.20%

10.20% 8.50% Securities 8.50%

Construction materials & steel

4.30%

29.80%

Consumer services Real estate & Construction

150.00% 125.00% 100.00% 75.00%

126.40% 96.90%

29.60%

Fund return Hurdle rate

70.30%

50.00% 25.00%

99.70%

Comparative return

29.30%

0.00% 6 months

12 months

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VIPC Viet Investment Power

VIPC Growth Fund Petroleum distribution Beers and Aquacultures 4.50% 3.90% Foods 5.70% Pharmaceuticals

Cash

Information technology Banking 5.00% 5.20% 7.80% 6.50%

Securities

7.20%

Petroleum exploration,8.70% drilling & refining

22.80%

5.20% 7.80%

6.50%

3.30%

Coal& mineral mines Plastic, rubber& fiber

Real estate & Construction

Consumer Construction services materials & steel

150.00% 125.00% 100.00% 75.00%

121.80% 97.40% 96.90%

25.00%

Hurdle rate 70.30%

50.00% 24.90%

Fund return

Comparative return

27.00%

0.00% 6 months

12 months

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VIPC Viet Investment Power

VIPC Balance Fund Cash 5%

Fixed income

Information technology Banking 3.20% 4.80% 4.00%

25.00%

Securities

14.00%

Consumer 2.00% services 4.00%

4.50%

4.80%

3.90%

Petroleum distribution

Real estate & Construction

8.70%

5.70%

Construction materials & steel

3.20%

7.20%

Plastic,rubber &fiber

Beers & Aquacultures

Coal& mineral mines Foods Pharmaceuticals

Petroleum exploration, drilling & refining

100.00% 75.00%

89.20%

73.50% Fund return

73.90% 62.80%

50.00%

Hurdle rate Comparative return

25.00% 16.20%

18.70%

0.00% 6 months

12 months

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VIPC Viet Investment Power

VIPC Conservative Balance Fund Securities

Cash Fixed income

Information Banking 2.00% technology 2.40% 1.60%

Real estate Consumer services & Construction materials & 1.00% 7.00% Constructio 2.00% steel Plastic,rubber&fibe n 2.40%

5%

r 1.60%

35.00%

Coal& mineral mines

Petroleum exploration, drilling & refining

11.60%

9.60% 6.00%

7.60%

5.20%

Pharmaceuticals Petroleum distribution

Beers & Aquacultures

Foods

75.00% 73.90% 50.00%

62.80%

63.40% 48.70%

25.00%

Fund return Hurdle rate Comparative return

10.40%

14.20%

0.00% 6 months

12 months

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VIPC Viet Investment Power

VIPC High Income Fund

Information technology Banking Securities

0.50%

0.80%

1%

1.20%

3.50%

Real estate & Construction

1%

Consumer services

1.20% 0.80%

5%

Plastic,rubber and fibre

10.20% 8.40%

50%

Construction materials & steel

6.70% 4.60%

Coal and mineral mines Petroleum exploration, drilling and refining Pharmaceuticals Foods Beers and Aquacultures

5.30%

Petroleum distribution Fixed income Cash

60.00% 55.50% 40.00%

49.10%

49.10% 39.40%

Fund return Hurdle rate Comparative return

20.00%

6.40%

9.70%

0.00% 6 months

12 months

45


VIPC Viet Investment Power Information technology

VIPC Preservation Fund

Banking

0.50% 0.50%

0.30% 1.80%

0.40%

0.60%

Securities

0.60% 0.40%

Real estate & Construction

1.90%

2.90% 2.40%

1.30% 1.50%

Consumer services Construction materials & steel Plastic,rubber and fibre Coal and mineral mines Petroleum exploration, drilling and refining Pharmaceuticals

85%

Foods Beers and Aquacultures Petroleum distribution Fixed income

25.00% 20.00% 15.00%

23.70% 22.40% 20.40%

20.80% Fund return Hurdle rate

10.00%

Comparative return

5.00% 0.00%

1.90% 6 months

2.90% 12 months

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VIPC Viet Investment Power

4. ADVISORY SERVICES

4.1 ABOUT OUR TEAM:

Our team of seasoned analysts is a powerful tool that can provide you clarity, helping you understand how to best achieve your overall investing goals. 

Assured that your plan goals and objectives coupled with our risk management can lead to improved performance.

Certain about having another fiduciary point of view when developing or evolving your investment policies.

Confident about your decisions by using our due diligence and evaluations of both public and private investment opportunities.

4.2 ADVANTAGES TO DEAL WITH US

Greater independence 

Our firm is staffed by independent consultants who select products that fit your specific investment goals - not the sales goals of a large, impersonal brokerage firm.

Have the flexibility & capacity to match the right investment product with each investor. These products have been reviewed by our investment committee and meet our stringent selection criteria.

We rely on local decision-making, internal research plus third party independent research.

We use a disciplined investment approach.

Accountability 

As a regulated Capital Management Firm in Vietnam, we are licensed by SSC. In addition to adhering to our independent auditing requirements, our investment officers regularly review the operation and investment best practices we have in place.

We have a legal obligation to place our clients’ interest first.

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VIPC Viet Investment Power

We are well connected local 

VIPC has a strong well connected local network, such as Commercial Banks, major land banks, our real estate project focuses on commercial buildings, residential areas, service apartments, office buildings as well as new modern complexes providing all of the above services in one location.



We speak global investment languages, we understand business & your needs, we are local Vietnamese but with well perception of global investments, 50% of our staff received MBA degree and specialized in finance field with personal proven track record.

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VIPC CAPITAL MANAGEMENT COMPANY BROCHURE 2010  

VIPC Capital Management or well-known as VIPC Fund Management is an independent Vietnamese licensed investment fund built upon teamwork mana...

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