ESG Integration

Vuong Van Anh

SRI Officer – Senior Investment Manager

TBLI Conference, Singapore

29-30 April 2015

Background

Inception June 2006

London Listing (AIM) VNH:LN

Frankfurt Listing (Entry Standard) VH1:GR

Net Asset Value USD 120.4 M

Share Price Discount to NAV 14.2%

Benchmark Vietnam All Share Index(VNAS)

Number of Stocks in Portfolio 23

Investment Themes Urbanization, Domestic Consumption, Agriculture

ESG History

2007: Member of UN Global Compact

Launch of VNH Forum

2009: AGM voted ESG Integration

Signed UNPRI Initiative

Inrate Sustainability Assessment Framework

2010 – 2015: ESG Integration

2

VietNam Holding (VNH)

Sources: Bloomberg, VNHAM / 31 March 2015.

3

Performance

Sources: Bloomberg, VNHAM / 31 March 2015.

VNH Portfolio

Responsible Investment Policy

“Norm-based” screening

Director Engagement

ESG Checklist embedded into Due

Diligence process

VNH Forums

Controversial screening

Sust

ain

abili

tyLo

ng

term

va

lue

4

Sustainability Strategy

• Macro Themes

• Quantitative Indicators

• Free Float

• Exclusion

• Investment Case

• Management

Appraisal

• Due Diligence (incl. ESG checklist)

• Material ESG issues

• Sell Discipline

• Investment Limits

• Periodic Review

Target Screening

• Financial

• Market leaders

ESG Screening

• Policies

• Products

• Practices

Portfolio Management

Review & Rebalance

23-34 stocks

• Asset Allocation

• Diversification

• Investment themes

• Discretionary Rangers

• Foreign Room

Portfolio Construction

Proposal&

Decision

ESG Analysis

Selection&

Valuation

Investment Universe

HOSE 302HNX 363OTC ~780

Risk Mgmt&

Engagement

• Economic Cycle

• Market Environment

• One-off Events

• Exit Opportunities/Disciplines

5

ESG integrated Investment Process

Issues of Materiality

Strategic management

Transparency & Information disclosure

Role Segregation of CEO vs. Chairperson

Functions of Supervisory Board and Independent Directors

Leadership transition plan

ERP systems, environmental policies and actions

Mandate

Create awareness of key issues on ESG

Apply global best practices

Dialogue focused on ESG progress

6

Director Engagement Program

29 Director Engagement visits

to 25 investee companies since

Q4-2013

Global best practices in Vietnam context

Mostly in partnership with government

Participants of regulatory, business and . investment communities

VNH Brand building among public and . .. local media

Impact from VNH Forum & Engagement

A third of portfolio firms launched IR team

Segregation CEO / Chair tripled in 3 years

1/3 of 2014 Forum attendees upgraded digital presence

Top 10 Annual Reports: 25% investees awarded for 3+ years

50% have added independent board members

7

VNH Forum

Hau Giang Pharma ESG Achievements

Best IR team in Vietnam

Annually “Best Annual Report” award since 2011

Pioneer in ESG reporting

First to segregate CEO & Chair duties

Pioneer to have Independent Directors

Industry leader

Unmatched distribution

Strong branding

Experienced management

R&D with institute of biotechnology

8

Case Study 1: DHG Pharmaceutical

Traphaco ESG Achievements

Green development value chain

GACP –WHO plantation area

Pioneer in promoting sustainable development

Industry leader - herbal medicine

Building material plantation

Restructuring programs

9

Case Study 2: Traphaco

Vietcombank ESG Achievements

Pioneer to disclose Board Committee functions

High percentage non-executive Board members

Active IR activities

Open minded to recommendations

Advanced technology

“Best Bank in Vietnam” brand

10

Case Study 3: Bank for Foreign Trade of Vietnam

Dong Phu Rubber ESG Challenges

Reports of controversial practices in Cambodia

Engaged company for details

“Rubber Barons” report by Global Witness

Intensified engagement, asked for actions

Lack of clear commitment triggered exit

Manufacturing of rubber products

Cultivates and processes agricultural and

forest products

A subsidiary of Vietnam Rubber Group

11

Case Study 4: Dong Phu Rubber

An Giang Plant Protection ESG Challenges

Corporate governance issues not resolved

Unconvincing expansion policy & execution

Consistent delay of listing

Exit due to unsatisfactory ESG execution

Market leader in plant protection

Well established distribution network

Solid relationship with Syngenta

Unique Farmers’ Friends network

Penetrating into rice business

12

Case Study 5: An Giang Plant Protection

Globalization of trade and supply-chain management

Sustainability reports and

indices

Vietnam-EU Free Trade Agreement

Trans-Pacific Partnership

13

Market Drivers and significant Events

Contact

Vietnam Holding Asset Management Ltd.

London AIM VNH LN

Frankfurt Entry Standard VH1:GR

Bloomberg VNH LN Equity

Reuters VNHq.L

ISIN KYG9361X1043

www.vietnamholding.com | info@vnham.com

Ho Chi Minh City

Floor 8, Nam A Bank201-203 CMT8, Dist. 3Vietnam+848 3929 1511

Zurich

Gartenstrasse 19CH - 8002Switzerland+41 43 500 2810

2007

• Corporate Governance

2008

• Strategic Management

2009

• Global Economic Crisis 2010

• Investor Relations

2011

• Strategic Management II

2012

• Managing Environment Impact 2013 -

2014

• Corporate Reputation in a digital World

15

VNH ForumsAppendix

This presentation ("Update") is for information only and does not constitute or form part of any offer, inducement or an invitation to sell, acquire orissue, or any solicitation of any offer to purchase or subscribe for, any shares or securities including any ordinary shares (“Ordinary Shares”) in VIETNAMHOLDING LIMITED (the "Company") nor shall the Update or any part of it form the basis of or engage in investment activity, or be relied on inconnection with, any contract therefore.

The information contained in this Update has not been verified and no reliance may be placed for any purpose whatsoever on the informationcontained in this Update or on its completeness. No representation or warranty, expressed or implied, is given by the Company or any of theirrespective directors, officers, employees, agents or advisers or any other person as to the accuracy or completeness of the information or opinionscontained within this Update and no responsibility or liability is accepted for such information or opinions.

This Update may contain forward-looking statements in particular, but without prejudice to the generality of the foregoing, no representation orwarranty is given, and no responsibility or liability is accepted, as to the achievement or reasonableness of any future projections or the assumptionsunderlying them, or any forecasts, estimates, or statements as to prospects contained or referred to in this Update. All statements other thanstatements of historical facts included herein, including, without limitation, those regarding the Company's financial position, business strategy, plansand objectives of management are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding theCompany's present and future business strategies and the environment in which the Company expects to operate in the future. These forward-lookingstatements speak only as to the date of this Update and cannot be relied upon as a guide to future performance. The Company, its directors, officers,employees, agents or advisers expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-lookingstatements contained in this Update to reflect any changes in its expectations with regard thereto or any change in events, conditions or circumstanceson which any statement in this Update is based.

The information and opinions in this Update (which includes information drawn from public sources) are subject to change without notice, updating,revision, further verification and amendment. No responsibility or liability is accepted by any person for any loss by any person, direct or indirect,howsoever arising from any use of, or reliance on, or in connection with, this Update or its contents or otherwise arising in connection therewith.

This Update is not for publication, release or distribution, directly or indirectly, in or into the United States of America, Canada, Australia, the Republic ofIreland, the Republic of South Africa or Japan, or their respective territories.

Recipients of this Update are recommended to seek their own independent legal and investment advice in relation to the matters set out in this Update.

Disclaimer