FINANCE. finance & business news. Reference exchange rate up by 4 VND

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1 finance & business news 8 November Reference exchange rate up by 4 VND 1 Bitcoin regulation headaches reemerge in Vietnam 1 What can be seen from the shift in service revenue of banks in Q3? 2 Many banks earn over 1tr dong profit 3 Driving force for banks' profit boom in Has taste of Japanese investors on Vietnam's financial market changed? 6 Local banks learn a trick from fintech with QR pay 7 Salary of employees at small banks only equal to half of big banks 8 Local insurers still neglect network security insurance 8 Vietjet, HDBank launch joint promotion 9 Sun Life targets growing local client base 9 Vietnam launches Apec Economic Leaders' Week 11 Apec 2017: Apec CEO Summit kicks off 12 Apec 2017: Vietnam's improved business climate lauded 13 Apec 2017: Malaysian media lauds Vietnam's development 13 'We Mean Business': Vietnam lures international investors at Apec business summit 14 Reforms raise local ranking 15 Dong Nai's FDI attraction surpasses annual target 16 External debt service obligations beyond limit 16 WB: Vietnam climbs 81 places in ease of paying taxes 17 New petrol import tax benefits people 17 State turns inward for PPP plans 18 HoREA: BT, BOT projects can lead to corruption 19 Product origin info to be enhanced 20 Apec 2017: Startups face numerous difficulties, says VBS delegate 20 Special economic units call for investment at Apec 21 Mineral sector posts low growth rate 22 Industry hits a peak in October 22 Over 10 billion USD needed for water supply, treatment projects 23 Realty climbs on solid fundamentals 24 Tourism projects worth 2.7 billion USD launched in Quang Ninh 25 Da Nang calls for tourism investment 26 Hanoi calls for Finnish investments 26 Reference exchange rate up by 4 VND More opportunity for Vietnam rice to enter Sri Lanka, Philippines 27 BIZ NEWS Business Briefs 08 November, VN Index approaches 850 points 28 VN Index hits trading value high 29 HNX: October trading value increases by 8.6pct 29 Vietnam's BSR refinery delays IPO again, plans to sell more shares: CEO 30 Taseco Airs files for HOSE listing 30 Vincom Retail to reach $2.8 billion market cap 30 Deputy PM: Mobile payment in Vietnam seen booming in coming years 31 Vietnam still lacks powerful conglomerates: economists 32 Typical Vietnamese products introduced to Apec 2017 delegates 33 Vietnamese businesses design new products targeting Gen Z 33 HCM City: Land available for Build-Transfer projects shrinks 34 Origin of pigs to be traced from birth 35 First Solar scales up investment in Vietnam 35 Petrolimex prepared for intensified competition 36 Investor told to clarify pros and cons in sea tourism project 37 HP acquires Samsung's printer business for $1.05 billion 37 Vietjet welcomes travelling season with discounted tickets 38 VNPT launches community-based project 38 Vietnam's ICT corporation opens subsidiary in Japan 38 Ford's continuing efforts to make Vietnam's roads safer 39 Binh Dien Fertiliser growing with success of farmers 40 Tetra Pak introduces new ice cream packaging 41 BrandLaureate Special Edition World Awards launched in Vietnam 41 Apec announces first Digital Prosperity Award winner 42 Jack Ma: Vietnam holds huge e-commerce potential 43 One man connecting entrepreneurs all over the world 44 Online Friday 2017 to take place next month 45 VIETWATER expo brings global water technologies, trends firms to attend Vietbuild Over 200 businesses to join VietFood & Beverage ProPack /NOV/2017 INTELLASIA VNA The State Bank of Vietnam set its reference VND/USD exchange rate at 22,470 VND/USD on the morning of November 8, up by 4 VND from the day ago. With the current/- 3 percent VND/USD trading band, the ceiling exchange rate is 23,136 VND per USD and the floor rate is 21,798 VND per USD. Major commercial banks kept their rates quite stable. Vietcombank raised its both rates by 5 VND from the previous day to 22, 680 VND (buying) and 22,750 VND (selling), per USD. Meanwhile Vietinbank and BIDV set 22,680 VND (buying) and 22,750 VND (selling), per USD, unchanged from November 7. Intellasia No. 21, lane 173/63/17, Ngoc Ha Ward, Ba Dinh Dist, Hanoi All Rights Reserved Tel: Fax: Office@intellasia.com Websites:

2 Vietnam finance & business 8 November 2017 Bitcoin regulation headaches reemerge in Vietnam 08/NOV/2017 INTELLASIA TUOITRE NEWS The question of whether to regulate Bitcoin has been back on the table in Vietnam The question Bitcoin regulation is back on the table in Vietnam after a private university announced plans to accept tuition payments in the cryptocurrency despite the central bank reiterating its position that the digital currency is outlawed in the country. While Vietnam originally made Bitcoin transactions illegal, the government issued a directive in August tasking relevant agencies with preparations to complete a legal framework to manage the cryptocurrency. The agencies were required to identify the appropriate regulatory measures to oversee Bitcoin and other 'virtual assets' by August 2018 and complete the legal framework to enact those measures by June 2019, according to the directive. However, the State Bank of Vietnam announced late last month that Bitcoin is banned in the country and those who do business using the currency will be subject to fines or even criminal charges. In a media statement on October 28, the central bank asserted that Bitcoin and other types of cryptocurrency are not considered as legal modes of payment in Vietnam, and the issuance, supply, and use of Bitcoin and other virtual currencies are prohibited in the Southeast Asian country. Those breaching this regulation will be subject to a fine of between VND150 million (US$6,575) and VND200 million ($10,959), in accordance with a decree on penalties in the monetary and banking sector. The announcement came after Le Truong Tung, president of privately-owned FPT University, announced that the institution "accepts tuition payment in Bitcoin," calling the payment in the cryptocurrency a "feasible solution" for many international students. Following the latest announcement of the central bank's position, Tung defended that FPT University "only planned to" accept tuition in Bitcoin and has yet to enact the payment method in practice. With the central bank reiterating its position that Bitcoin is outlawed, FPT University will "form a research group on Bitcoin" as it believes that "cryptocurrency is an issue that shouldn't be ignored during these times of the Fourth Industrial Revolution." To ban or not to ban While the State Bank of Vietnam is unlikely to recognise Bitcoin as a legal mode of payment, the 'underground world' of Bitcoin investors and 'miners' in Vietnam is quite active. The central bank only bans the use of Bitcoin as a means of payment, which means investors in the currency are still able to store and exchange the cryptocurrency as an asset, not a currency unit, without violating the law. Regulating Bitcoin is a headache suffered not only by Vietnam, according to Associate Professor Nguyen Khac Quoc Bao, dean of the finance department of the University of Economics HCM City. "The world is still unable to find, or to be more precise, come to a mutual decision on how to treat this special form of currency," Bao said. "People around the world are arguing over the nature of Bitcoin as a currency, and whether it should be accepted in official transactions." Economic expert Ngo Tri Long said the first problem that needs solving is whether Bitcoin should be treated as goods or a currency. In the meantime, Vietnam may look to other countries to form its official policy. In early September, Russian finance minister Anton Siluanov said his ministry expects to finish working on a law that would define a procedure for buying cryptocurrencies, including the registration of entities willing to buy the virtual money, by the end of this year. Siluanov said Russia's government understands that cryptocurrencies are real and there is no sense in banning them, but instead, there is a need to regulate them, according to Reuters. "The buying of crypto-currencies should be similar to buying securities, such as treasury bonds for households launched by the finance ministry this year," Siluanov was quoted by Reuters. China has banned Bitcoin and other cryptocurrencies since September 30, but there are signs that the ban will soon be lifted. Analysts believe that Bitcoin has the potential to replace China's currency in everyday transactions and as a store of value in the long term, according to Forbes. Intellasia 8 November / 47

3 What can be seen from the shift in service revenue of banks in Q3? 08/NOV/2017 INTELLASIA KINH TE & TIEU DUNG In Q3, most banks had growth in the net interest from service operation, some had unexpected growth. This reflects a shift in revenue structure from credit to non-credit in the new period. Data from 22 banks that released financial statements in Q3/2017 showed that most banks had growth in net interst from service compared to the same period last year. Among banks that released business results, 15/19 had growth. Especially, nine banks had the growth rate of more than 80 percent including SHB, MBBank, OCB, SCB, VP- Bank, Kienlongbank, TPBank, LienVietPostBank and Bac A Bank. In contrast, four banks had decreased growth including Eximbank, NCB, VietinBank and Viet A Bank. Specifically, the total net interest from service operation of banks reached trillion dong, up more than 50 percent from the same period last year. Of which, the top five banks in this category were SHB (844 billion dong), BIDV (730 billion dong), Vietcombank (651 billion dong), Techcombank (554 billion dong) and Sacombank (456 billion dong). The state-owned commercial bank i.e. Vietinbank only ranked the eighth after other competitors such as VPBank and MBBank. In the quarter, SHB rose to the top of the system in the net interest from service operation when its growth surged to 844 billion dong, 15 times higher than the same period last year and exceeded the net interest revenue in the period. SHB's financial statement showed that revenue from other service fee accounted for the largest proportion in the bank's revenue from service fee. SHB's leader said the bank's increased revenue from service operation in Q3 was thanks to many categories, especially insurance. However, in the first nine months of the year, the net interest from this operation also increased nearly 19%, a bit higher than the revenue growth from net interest. The net interest margin from service on net profit from business of 22 banks in Q3 was 17.2%, higher than 15.1 percent in the same period last year. Of which, three banks having the highest ratio i.e. SCB, Sacombank and SHB exceeded 70%. SCB had unexpected growth in this ratio as the net interest from service touched 230 billion dong while the net profit from business only touched 7.3 billion dong. SHB was also one of four banks with increased net interest from service but decreased net interest revenue (down 29.4%) in Q3. Compared to the net interest revenue growth in Q3, six among 22 banks had higher net interest growth from service operation. The aforementioned result shows that the shift in revenue structure from credit to noncredit is having rapid change. So far, profit from credit operation has always been the main source of income of banks. However, this operation had a lot of risks due to arising bad debts, and irrecoverable receivables. Meanwhile, non-credit operation (providing service, forex trading, securities investment, etc. brought about solid revenue and less risks, especially service operation when banks have had available customers. On the other hand, along with the development of the society, the increasingly high demand for financial service, banks need to make continual efforts to provide the most modern and convenient services and utilities. This not only requires personnel quality but also the investment in infrastructure and technological applications in bank. Many banks earn over 1tr dong profit 08/NOV/2017 INTELLASIA BAO DAU TU The bank profit picture in the first three quarters of the year is gradually being fully assembled with bright colours. Record figures have constantly been broken, and the list of banks earning more than one trillion dong profit is longer and longer. By this time, a series of banks have been listed in "more than one trillion dong profit club" such as Vietcombank, Vietinbank, BIDV, Agribank, VPBank, Techcombank, MB, ACB, SHB, LienVietPostBank, HDBank and Sacombank. At the end of this year, several more banks may achieve more than one trillion dong profit. As such, profit of the banking sector has had very good growth this year. Banks earning trillions of dong of profit accounted for nearly half of all banks across the system. Intellasia 8 November / 47

4 With bright business prospect, at the end of this year, some banks such as Vietcombank, Vietinbank may achieve the profit target of 10 trillion dong an unprecedented figure. However, screening business results, we may see that banks still rely heavily on credit. The larger the banks and the larger the loans, the higher profits they will earn. However, the consequence from "hot" credit growth over the last period is increased credit risks. Therefore, despite huge profits, many banks had to spend trillions of dong on putting for risk provisions. For example, if excluding the provisions, BIDV would lead the system in business results with the separate profits amounting to trillion dong. However, the burden of putting for provision amounting to trillion dong caused the bank's profit to remain only more than one third (six trillion dong). After merging, the bank's consolidated pre-tax profit decreased to trillion dong (the provision was trillion dong), leading the bank to drop out of the Top 3 in the system in profit. Similarly, in the first three quarters of the year, the profit earned from Vietinbank's consolidated business operation amounted to trillion dong. However, the bank's pre-tax profit remained only trillion dong due to having to spend nearly half on putting for provision (more than trillion dong). Meanwhile, Vietcombank's pre-provisioning profit was lower than the two aforementioned banks. However, due to low provision, the profit jumped to trillion dong, leading the system. For private commercial joint stock banks, many banks have to spend one dong on putting for risk provision out of every two dong earned. Specifically, VPBank's net interest from consolidated business operation was trillion dong. The bank had to put trillion dong for risk provision compared to ACB's trillion dong profit and trillion dong provision. The fact that banks have to spend largely on putting for provisions shows two perspectives. Firstly, banks are cautious. Secondly, hot credit growth leads to the loan quality to be risky. Of course, not all banks having hot growth have risks. Nguyen Xuan Thanh, Chair of Vietcombank said so far, Vietcombank's total reserve fund amounted to 136 percent of the total outstanding bad debt. The reason why the bank put a large amount of profit into provision is to prevent potential risks in the future. However, to reduce credit risks, the bank also promotes retail sale, increases service income instead of relying on credit. Meanwhile, admitting to have been pursuing rapid growth strategy in recent time, Nguyen Duc Vinh, CEO of VPBank said in order to lead, Vietnamese banks must run fast, provided that they have good risk management ability. "VPBank's risk provisions are very high, showing that the bank is very prudent, and is entirely able to handle the entire bad debt", Vinh said. The CEO added that if risks are measured, a good risk management system is built then despite high bad debt, banks can still attain high business effectiveness while being fully capable of handling bad debt. Another reason why many banks said they have to increase putting for risk provision is that despite good economic growth, the shocks of the economy in recent time forced banks to be more considerate. That is not to mention, the unsolved bad debt of the bank at Vietnam Asset Management Company (VAMC) still remains large. Increasing the risk provision will help banks be more active in handling bad debt in the near future. Driving force for banks' profit boom in /NOV/2017 INTELLASIA VNECONOMY Many commercial banks posted high profits in the third quarter (Q3) and expect a booming year by the end of the year. This boom will soon show up at many members with the highest profit record ever in the history. Up to now, it is possible to predict that the Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) will top the profit ranking of Vietnamese banks, in Intellasia 8 November / 47

5 absolute number. From mid-year, Vietcombank's leaders estimated that the bank is likely to attain a profit of 10 trillion dong. In addition, the bank's pre-tax profit may soar to 10.5 trillion dong and even 11 trillion dong it is forced to realise its own plan. As oriented, Vietcombank is facing the request/plan to divest capital at Export Import Commercial Joint Stock Bank (Eximbank) and Military Commercial Joint Stock Bank (MBBank). As answered to shareholders in the previous time, the related profit, which is retained from many years, is fairly huge and can be soon realised. Vietcombank is also the first to buy all the bad debts sold the Vietnam Asset Management Company (VAMC) from The reversed profit from the settlement of bad debts was anticipated. The bank regularly recovered trillion dong of off-balance sheet debts in the last three years, and trillion dong in the first nine months of the year. For mid-sized banks such as Tien Phong Commercial Joint Stock Bank (TPBank), the recovered amount from bad debts is also noticeable in the first nine months of the year. Of over 189 billion dong bad debts were handled by TPBank in the period, billion dong were repaid by customers. This is one of the main motivations for TPBank to soon complete the annual profit target after just nine months (807 billion dong compared to the target of 780 billion dong). For the above cases, bad debts do not mean a loss of capital. They are the "reserved assets" of banks as each settled bad debt brings a prospect of reversing provisions and offsetting profits, which is also a major driver for many banks this year. Although no fully updated data has been released, according to the National Financial Supervisory Commission, in the first seven months of 2017, the entire banking system handled about 45 trillion dong of bad debts, in which the bad debts recovered from customers accounted for about 33.6%, a significant proportion which is associated with profit. However, in reverse, bad debts seem to remain the biggest obstacle for the profitability of some member banks, as the bad debt size in absolute number sharply rise in Q3 report period. There are active reasons. Firstly, the opportunities to restructure debts without having to changing the debt group have ended. Banks so far have to receive the debts restructured in the previous years which could not be recovered. Secondly, from 2017, the amount of bad debts sold to VAMC has been very limited. Accordingly, the record on financial reports has become less scattered, and even increased at some banks'. Statistics also showed that from 2013 until September 15th 2017, VAMC acquired a total on-balance sheet bad debts of trillion dong, in which only trillion dong were bought in Thirdly, since numerous members are about to start the scheme of piloting the bad debt settlement in accordance with the resolution of the National Assembly, accounting bad debts fully and accurately is more motivated in order to focus on the application of the supporting mechanisms. Vietcombank's case should be again noted, as the bank has finalised the steps to carry out the restructuring scheme, in which an axis retail is emphasized. From 2016, the trend to shift income structure to retail segment at Vietcombank has been clearly seen, in which lending to individual customers has been promoted. This shift has become stronger in Not only Vietcombank, members in the group of four major state-owned banks (including Vietcombank, Commercial Joint Stock Bank for Agriculture and Rural Development (Agribank), Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank), and Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV)) are all following this trend. One of the main reasons is that since their Capital Adequacy Ratio (CAR) has reached the limit (near the minimum limit of 9%, due to the inability to increase capital), the assets need to be shifted to the areas with lower risks (to lessen the negative impact on CAR) or higher returns. In the context when cutting lending interest rates has been a standing requirement Intellasia 8 November / 47

6 since the beginning of the year, the profit margin from retail loans and personal loans has become more attractive. Not only Vietcombank, the regularly updated reports of BIDV has also clearly shown this shift. However, this group of four major banks is still out of a new and large segment: consumer credit and personal loans. An explanation for this is the risk appetite, but in terms of technology, this group of banks is still struggling with the existence of finance companies. Accordingly, consumer credit at present and in the short term is still a potential playground of some private commercial banks which already have specialised finance companies, such as Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Hochiminh Development Commercial Joint Stock Bank (HDBank), MBBank, and soon Saigon Hanoi Commercial Joint Stock Bank (SHB). This is also a strong factor of the driving force for the profit boom of these banks this year. Even if not yet deeply entering the consumer credit with specialised companies, many private commercial banks have put the focus on retail credit and individual customers. As mentioned above, TPBank is promising to have a boom of profit with the prospect of reaching one trillion dong of profit out of the five trillion dong charter capital, in which the lending to individual customers has accounted for nearly 39%. This proportion has also been seen in Vietnam Technological and Commercial Joint Stock Bank (Techcombank) in 2016 and 2017, although the bank's lending in the first three months of 2017 tended to decline. The decline of lending in the first nine months of 2017 was rare for a few member banks. In general, the credit growth in the period was higher than the same period of 2016, and the expansion of the annual credit growth limits in the recent year also contribute to boost the profits of the system. As mentioned by VnEconomy in the recent article, the 2017 profits of banks is also contributed by the successful cooperation with insurance firms a highlight in the trend of increasing the proportion of service revenue. With the results in nine months and the booming outlook for the whole year, it is expected that the stock market will continue to welcome more products from profitable banks such as HDBank, TPBank, after Vietnam International Joint Stock Commercial Bank (VIB), VPBank, and Lien Viet Post Commercial Joint Stock Bank (LienVietPost- Bank) have made their debuts in the recent time. Has taste of Japanese investors on Vietnam's financial market changed? 08/NOV/2017 INTELLASIA TRI THUC TRE Japanese investors have long been regarded as very meticulous and careful. However, they are also very prestigious investors that many Vietnamese businesses want to become partners, especially in the field of banking and finance. Some Japanese financial institutions that are strategic partners of major Vietnamese banks are Mizuho that owns 15 percent stake in Vietcombank, Bank of Tokyo-Mitsubishi UFJ that owns nearly 20 percent stake in VietinBank. In addition, Credit Saison entered into a joint venture with HDBank in finance company when holding 49 percent stake in HD Saison, Sumi Trust cooperated with BIDV to acquire 49 percent stake in financial leasing company... and most recently, Shinsei partnered with MB to own 49 percent stake at Mcredit finance company. Apart from long-term cooperation as strategic investors, Japanese investors are also present in the banking and finance sector in Vietnam in many products and services such as insurance (typically Daichi-Life), bank cards, Memorandum of Understanding (MOU), etc. In the context of increasing FDI from Japan, more and more Japanese businesses come to do business in Vietnam, the cooperation wave is expected to be higher in the future. Nevertheless, it should be pointed out that although the wave of Japan's investment into Vietnam has been rather strong during the last 30 years, in the banking sector, the shadow of Japanese investors is still quite limited. Other statistics show that Japanese investors' accounts reckon for about 30 percent of the total number of foreign investors' accounts in Vietnam but the investment is much Intellasia 8 November / 47

7 lower than that percentage. Some people think that the taste of investors with the market has now been different so it is very difficult to see big business deals that many Vietnamese banks want. Kagita Kiroyuki, head of business strategy at Shinsei Bank said Japanese investors are still very interested in Vietnamese market. However, Japanese people are very cautious in everything. Even in their internal decision-making process, they also have to go through many stages, so they need to have certain time to learn. For example, Shinsei's collaboration with MB now had experienced six years of study. "Many Vietnamese businesses probably think whether we want to work, to cooperate with then or not. But every business is the same and not excluding Japan, whatever we do, we must take into account the profit. If sides can make profits, there are bright future then, we can cooperate happily with each other", Kagita said. According to the Shinsei's director, Japanese investors always want to cooperate with Vietnamese businesses. Kagita said that in order for a business to become a partner of Japanese investors, there need to have important factors such as mutual understanding, common direction and development goals (not just the goal of the businesses itself but also the target of serving the economy). Local banks learn a trick from fintech with QR pay 08/NOV/2017 INTELLASIA VIR Local banks are deploying the use of quick response codes for contactless payments, a move set in anticipation of the involvement of some of the world's largest players. Late last month, privately-held Tien Phong Commercial Joint Stock Bank (TPBank) officially launched a new payment application and money transfer system using quick response (QR) codes on mobile phones, called TPBank QuickPay. TPBank QuickPay enables users to make payments or transfer money easily and quickly through the use of QR codes. For payments, users simply open the application, sign in, scan the QR code, and scan their fingerprint or enter a personal password to confirm the payment. Early this year, state-owned VietinBank deployed QR code payments to benefit its customers on the VietinBank ipay Mobile App, dedicated to smart devices running on ios, Android, and Windows phones. Several other banks Vietcombank, VPBank, ACB, Sacombank, OCB, HDBank, and Maritime Bank have also made deals with the local fintech firm Moca to expedite the creation of similar payment systems. According to banking experts, the recent move toward digitalised payments is not only an effort to catch up with the contemporary contactless payment trend, but also an anticipatory defence tactic ahead of the Vietnam entrance of AliPay the world's largest mobile payment platform, founded by Alibaba's Jack Ma. Ma, who was ranked second on Fortune's 2017 "The World's Greatest Leaders" list, is expected to attend the Vietnam E-Payment Forum 2017 in Hanoi this week. Though the news has yet to be confirmed by the State Bank of Vietnam (SBV), it was rumoured that both AliPay and WeChat Pay (the second largest mobile payment service in China behind AliPay) are intent on entering the Vietnamese market. If this happens, AliPay might see booming development in Vietnam, capitalising on the crowded user community of Lazada, Asia's leading e-commerce platform. In 2016, Lazada was bought out by the Alibaba Group, a conglomerate of internet-based businesses and the parent company of AliPay. In this context, local banks are remaining optimistic, saying that new players in the game will bring about profound changes to consumer habits, and from there pass on opportunities to all stakeholders, including banks and fintech firms. According to TPBank general director Nguyen Hung, unlike scanning barcodes on point-of-sale (POS) systems, QR codes are very simple to use. They can be applicable for daily activities, helping to save on expenses and make transactions more efficient. A market survey by Visa released in late 2016 revealed that more than 60 per cent of Intellasia 8 November / 47

8 Salary of employees at small banks only equal to half of big banks Vietnamese respondents said they preferred e-payments over traditional payment methods. Meanwhile, in a recent media talk, Arn Vogels, country manager for Indochina at MasterCard, said that according to the company's recent survey, 60 per cent of young Vietnamese users would be happy to adopt QR code payment systems. The demand for these payment methods will increase once the technology is widely applied, covering both invoice payments and cash-on-delivery payments. According to Pham Tien Dung, head of the SBV's Payment Department, following the government's non-cash payment development plan, in September 2017, the State Bank governor enacted a plan on POS system development for small merchants, which also mentions QR code payments. Last month, the SBV agreed to found the QR Code Sub-Committee. 08/NOV/2017 INTELLASIA TRI THUC TRE Recently, a series of banks reported good profit growth, causing the market to expect that this year will be the best business year in terms of profitability of the banking system many recent years and also a "prosperous" year in terms of remuneration for bank staff. Hereinafter is the way to calculate the salary, major income that banks announced in detail in their finance statements. In the last nine months, MB Bank achieved the profit before tax of four trillion dong. In addition, the bank also increased salary and bonus for employees. The average number of employees in the past nine months was 7,938 people, the average salary of employees was 12 million dong/month, but the average income has nearly doubled, at an average of 23 million dong/month. Compared with the same period of 2016, MB labourers' average salary increased by nearly 2.1 million dong/person or about 19 percent while the income increased nearly 5.4 million dong/person/month, equal to 30%. The average income of Techcombank staff increased to 24 million dong. In recent years, the income of Techcombank staff has been greatly improved. In 2016, the bank even paid a higher average salary than BIDV, with an average monthly income of 23 million dong, up two million dong per month compared to After the first nine months of this year, Techcombank announced that its average salary per employee was still 19 million dong/month, unchanged compared to the same period last year. However, along with other allowances and income, each employee received 24 million dong per month, up one million dong compared with the same period last year. By the end of September 2017, VIB had 4,500 employees. The average salary paid to each employee was million dong per month and the average income was million dong, 1.5 million dong per month higher than the same period. *Salary at small banks is only equal to half of big banks At smaller-scale banking group such as PGBank and Saigonbank, the income of employees is much lower, even less than half of the aforementioned group of joint stock banks. Specifically, PGBank paid an average salary per employee at 11 million dong per month, down slightly compared to the same period last year. Other subsidies were also insignificant with about 700,000 dong per person. At Saigonbankthe level of income of this bank's employees is considered to be the lowest in the system with nine million dong per month, unchanged over the same period. At the same time, the income of Kien Long Bank's employees is slightly higher at million dong per month, up 2.2 million dong over the same period last year. Local insurers still neglect network security insurance 08/NOV/2017 INTELLASIA VIR Network security has grown into a pressing global issue, and Vietnam is not an exception. Aware of the growing concerns associated with current network security loop- Intellasia 8 November / 47

9 holes, many local firms are still unprepared to cope with the risk. A recent survey by PwC Vietnam, part of global professional services company PwC, shows that large-scale network security incidents are increasingly commonplace and trigger growing concerns among global consumers as well as governments. In this context, many businesses, including those in Vietnam, are still lacking the necessary knowledge and skills on managing new risk related to network security in today's complex digital technology era. A PwC representative said that according to the survey results, up to 44 per cent of surveyed firms do not have an overall strategy on information security, 48 per cent do not have a training programme to raise awareness about network security among their staff, and 54 per cent do not have a compatible mechanism to confront hackers. In fact, until now just a handful of foreign insurers, such as AIG, QBE or Chubb, have engaged in offering network security insurance products to their customers. These insurance products might cover losses the customers incur in case of hacker or virus attacks or the expenses put into amending and replacing companies' information technology system after network security incident occurrences, and more. "As this is a fresh and specific product line, the insurance policies are still modest in number. Only several dozen such policies have been registered until present," said the representative of a foreign insurer currently deploying the service. "The market has proven to hold great potential as not many insurers have engaged in providing the service. In fact, in developed markets insurance premiums from network security insurance products began to increase in recent years only," the source added. According to industry experts, data and network security insurance was introduced by international insurers in the late 1990s. The service stemmed from the ICT companies and services firms who wanted to protect themselves from computer viruses and losing customer information. A survey by Aon, a global London-based professional services firm, shows that in 2015 global network security insurance premiums reached approximately $1.7 billion and reach an estimated $2.3 billion in 2016, growing about 30 per cent annually during In Asia, after the recent WannaCry ransomware attacks, the demand for such insurance products has increased sharply. According to Japan Network Security Association (JNSA), the network security insurance portfolio of Japan's three leading non-insurers surpassed 1,000 products last year. In 2017's first quarters, the insurance premiums from this segment at some Japanese insurers rose by three to five folds on-year. Vietjet, HDBank launch joint promotion 08/NOV/2017 INTELLASIA VNA Vietjet and Ho Chi City Development Joint Stock Commercial Bank (HDBank) have launched a promotional programme for new customers and existing Vietjet HDBank international co-branded credit card holders. Under the programme, which runs from now to December 31, the first customers to sign on for an international co-branded credit card and the earliest cardholders buying tickets will be reimbursed for the total Vietjet air ticket purchase by 20 percent (up to a maximum 500,000 VND or 22 USD) and 10 percent (maximum 200,000 VND or 9 USD) respectively when they finalise payment on the website The promotion will be applied for all Vietjet's domestic and international routes flying to Seoul and Busan, the Republic of Korea; Hong Kong; Kaohsiung, Taipei, Taichung and Tainan, Taiwan (China); Singapore; Bangkok, Phuket and Chiang Mai, Thailand; Kuala Lumpur, Malaysia; Yangon, Myanmar; Phnom Penh and Siem Reap, Campuchia. New cardholders will be reimbursed only one time in the first month after opening cards and no more than two times on the following month, while existing cardholders will be reimbursed a maximum of three times during the promotional time, Vietjet Intellasia 8 November / 47

10 Sun Life targets growing local client base said, adding that the promotional money will be transferred to cardholders' payment accounts within 20 days after the end day of each month's programm. 08/NOV/2017 INTELLASIA VIR As Vietnam's middle class grows at a region-leading rate, the need for the kind of financial security offered by insurers like Sun Life Financial is also on the rise. Dean A. Connor, president and CEO of Sun Life, gives VIR an inside view on the growth strategy informing one of the field's prime movers. Please give us a brief overview of Sun Life Financial's overall business strategy? The foundation of our strategy is what we call our "Four Pillars" our businesses in Canada, the US, in asset management, and in Asia, where we operate in seven countries. We've had excellent growth and success across these pillars since this strategy was launched in We've now added a bold new ambition for Sun Life globally: to be one of the best insurance and asset management companies in the world. This includes becoming one of the best insurance companies in Vietnam. Being one of the best involves not just top financial performance, but also delivering for our clients around the world. In fact, our purpose as a company is to help our clients achieve lifetime financial security and live healthier lives. We renewed our strategy last year in what we call "Sun Life Client's focused strategy". At the centre of this is delivering a better experience to our clients and creating strong emotional connections with them. We want to make it easier for clients to do business with us, to connect with them more, and be great at solving their problems when issues arise. By doing this well, we are able to build relationships with clients for life. To create this better experience, we're making improvements in our businesses around the world. While specific strategies are determined in each country, key elements are: -An investment in digital platforms -Increased use of data and analytics -Continuing to develop and attract the best people in the industry Financial discipline also remains a foundational part of our success and sustainability. Sun Life is a 150-year-old company known for its enduring strength and keeping its commitments. We remain committed to our clients, our shareholders, and our people through a combination of achieving our financial performance goals, our risk management, and our capital strength. Are Asia, and Vietnam in particular, still growth areas for your company? Yes, absolutely. We have deep roots in Asia spanning back to Today, the growth of the middle class in the emerging markets of Asia is one of the major forces driving our business success. That is also why Sun Life Financial Asia is one of the four pillars of our strategy and why it's a growing part of the Sun Life story. From 2012 through 2016, our earnings from Asia have nearly tripled in size, and we have expanded to seven markets in the region. We have high hopes for even more success in the region. We entered Vietnam in 2013, and our acquiring 100 per cent ownership of the company a year ago demonstrates our commitment to the country. We find Vietnam a very attractive market with its growing prosperity and young population who need the types of products and services that Sun Life can provide. Many international insurers have been in Vietnam for quite some time already. What is Sun Life Vietnam's competitive advantage? We bring our rich heritage, a commitment to the country, and a very client-focused strategy along with our winning culture, which we call our "secret sauce". We've been in business a century-and-a-half, and more than 125 years in Asia, which brings a wealth of experience through all economic cycles and a history of sharing know-how around the world and regionally. We believe our Client focused strategy is a strong competitive advantage focusing on the client and providing experiences that are convenient, modern, and tailored to each client. The professionalism of our advisors is a crucial part of that experience, which is Intellasia 8 November / 47

11 why across Asia we are investing in our "Most Respected Advisor" platform, as well as expanding our advisor force in Vietnam. In the era of technological innovation, what initiatives are underway? Will Sun Life Asia and Vietnam be able to leverage the latest technology from Canada? In Canada and in Asia we are also very interested in partnerships in the digital landscape, and have connections with the startup community. We recently became a principal backer of the FinTech Innovation Lab Asia Pacific, created by Accenture. We will be mentoring insurtech startups that could lead to innovations that could be shared across Sun Life in Asia. We also have our local fintech partnership with Timo to offer life and health products through Timo's mobile app and connect Timo members to Sun Life advisors. As our newest operation, Vietnam is in a unique position within Sun Life to pick the best and right-fit technology from what we have already successfully implemented in our other businesses across Asia including, for example, efficiency improvements and automation systems, advisor and client engagement applications and portals, and data analytics tools. The bancassurance business in Vietnam is getting more competitive, and it seems that insurers who have a strong brand and capital position are winning the bancassurance battle. Does Sun Life Financial have plans for this channel in Asia and Vietnam? We always look for the right opportunities to grow our business in each of our markets, and that naturally includes expanding our distribution. Across the region, we have a combination of agencies, bancassurance, brokerages, and digital distribution. We also have bancassurance partnerships in five of our seven markets, including with CIMB Bank in both Indonesia and Malaysia. We are interested in the bancassurance channel for Vietnam if the right opportunity presents itself. How about digital insurance sales and services? What trends do you see in developed markets? The advancement of digital capabilities is driven by consumer demand for convenient and personalised service. They want their financial services to be as easy as their interactions with Amazon or Alibaba. This means there is enormous investment underway in our industry globally to make the client experience much easier, including being able to access information immediately and through mobile devices as well as face-toface. We refer to this as an omni-channel experience. Sometimes a client wants to be able to buy a simple product easily online and other times they want advice that is more comprehensive and service that can be provided through an advisor relationship. Our Timo relationship is a great example of how we are combining both an online platform that also allows referrals to our advisors. Vietnam launches Apec Economic Leaders' Week 08/NOV/2017 INTELLASIA THE SAIGON TIMES Vietnam on November 6 kicked off the Apec Economic Leaders' Week in the central coast city of Danang with theme "Creating new dynamism, fostering a shared future." The Apec Economic Leaders' Week, which lasts until Saturday, comprises eight key events such as the Concluding Senior Officials' Meeting, Vietnam Business Summit, Apec ministerial Meeting, Apec CEO Summit, and Apec Business Advisory Council (ABAC) Dialogue with Apec Economic Leaders. The organising committee said theme of the week reflects three key points. First, it shows the common interests of 21 Apec member economies in seeking a new driving force behind the integration, relations and economic growth in the Asia-Pacific region. Second, the common long-term goal of the Asia-Pacific Economic Cooperation forum (Apec) and the Asia-Pacific region is to foster a peaceful, sustainable and prosperous future. Third, it indicates expectations of Apec's new developments, partly strengthening the position of the forum. As the host of the Apec meetings, Vietnam has selected four priorities relevant to theme: promoting sustainable, innovative and inclusive growth; deepening regional Intellasia 8 November / 47

12 economic integration; strengthening the competitiveness and innovation of micro, small and medium enterprises in the digital age; and enhancing food security and sustainable agriculture in response to climate change. Sustainable, innovative and inclusive growth has been one of Apec's top priorities at a time of global economic uncertainties and rising inequalities. Emphasis is placed on the dimensions of sustainability and inclusiveness of growth to help realise the Apec strategy for strengthening quality growth until 2020 and the United Nations' sustainable development goals. Structural reform and innovation are crucial to creating new dynamism for growth through improving labour productivity, enhancing manpower development and ensuring effective resource allocation. This pattern of growth places people and businesses at its centre. Vietnamese prime minister Nguyen Xuan Phuc will deliver his opening remarks at the Vietnam Business Summit today. Vietnam's deputy prime minister and minister of Foreign Affairs Pham Binh Minh and minister of Industry and Trade Tran Tuan Anh will chair the 29th Apec ministerial Meeting tomorrow. Vietnamese State President Tran Dai Quang will deliver a keynote speech at the Apec CEO Summit which will be held from Wednesday to Friday. He will also host key events including the 25th Apec Economic Leaders' Meeting (AELM), the AELM Gala Dinner and Cultural Performances, the ABAC Dialogue with Apec Economic Leaders, and the Apec-Asean Informal Dialogue on Friday and Saturday. Meanwhile, President Quang's wife Nguyen Thi Hien will host the Leaders' Spouse Programme in the ancient city of Hoi An in Quang Nam Province, and Danang City on Saturday. Vietnamese deputy minister of Foreign Affairs and SOM Chair Bui Thanh Son presided over the two-day Concluding Senior Officials Meeting which began on November 6. Son said this year Apec cooperation has witnessed both difficulties and opportunities. "But the crucial thing is even facing difficulties, we have managed to achieve important results such as maintaining the momentum of cooperation and reaching convergences in a wide range of fundamental issues to boost this year's priorities and support other Apec members." He added the meeting aims to review the progress of Apec cooperation this year and report results to Apec leaders, and finalise the Apec ministerial Meeting statement and the Apec Economic Leaders' Meeting Declaration. Founded in 1989, Apec is an economic forum intended to support sustainable economic growth and prosperity in the Asia-Pacific region. The forum represents about 39 percent of the world's population and contributes 59 percent to global gross domestic product (GDP) and 48 percent to international trade. Its 21 members are Australia, Brunei, Canada, Chile, China, Hong Kong (China), Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Chinese Taipei, Thailand, the United States and Vietnam. Apec 2017: Apec CEO Summit kicks off 08/NOV/2017 INTELLASIA VNA The Apec CEO Summit 2017 is taking place in the central city of Da Nang from November 8-10 as part of the ongoing Apec Economic Leaders' Week. This is the largest and most important annual event of the business community in the Asia-Pacific region, which is expected to draw President Tran Dai Quang and leaders of Apec economies as well as senior officials and entrepreneurs in the region. The three-day summit gives a chance for leaders, businesses, policy-makers and researchers exchange ideas on global and regional economic, trade and investment viewpoints and orientations, while sharing experience and designing measures to Intellasia 8 November / 47

13 Apec 2017: Vietnam's improved business climate lauded strengthen cooperation between businesses of the Apec and the rest of the world. Participants will focus on discussing new trends of globalisation, science and technology revolution, connection of enterprises. They concentrated on the role of enterprises and governments to ensure well-being of labourers and optimise the activeness and creativity of the business community in grasping opportunities. The same day, the Apec ministerial Meeting is set to take place with the participation of deputy prime minister and Foreign minister Pham Binh Minh, and minister of Industry and Trade Tran Tuan Anh, who will co-chair a press conference following the meeting. Meanwhile, the Apec Voice of the Future 2017 had a dialogue with members of the Business Advisory Council and completed the Youth Declaration /NOV/2017 INTELLASIA VNA Representatives from a number of international organisations applauded Vietnam's improved business climate and competitiveness at the Vietnam Business Summit that took place in central Da Nang city on November 7 within the framework of the Apec Economic Leaders' Week Philipp Rosler, Managing director of the World Economic Forum (WEF), said that the Global Competitiveness Report recently announced by the WEF ranked Vietnam 55th overall, up five places from 2016 and 20 from five years ago. Vietnam has made noted improvements in terms of technological readiness and labour market efficiency, he said. Such achievements demonstrate the wonderful cooperation between the public and private sectors in Vietnam, Philipp Rosler said, considering this a right way to improve the country's competitiveness in the future. He held that Vietnam's biggest asset is not oil and gas, infrastructure nor technologies but its people, especially the youth. Therefore, improving knowledge and capacity for young people is the best way to raise national competitiveness. Victoria KwaKwa, the World Bank's vice President for East Asia and Pacific, also lauded Vietnam's rapid and inclusive growth, saying Vietnam is one of the countries with open economy, attracting about over 16 billion USD in foreign direct investment (FDI) each year. She suggested the country pay more heed to training and investment in high-tech sectors, especially innovations. Vietnam should focus on enhancing economic competitiveness and productivity, as well as product values, thus ensuring sustainable and inclusive growth, she said. Chair of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said with a favourable geological and economic location, young, abundant labour forces, a growing economy and a growth-enabling and action-oriented government, Vietnam's business opportunities are coming. Loc expressed his hope that international delegates and the world's leading businesses at the event will share solutions and make recommendations for Vietnam's institutional environment and business model, especially in smart agriculture, exclusive economic zones, digital economy and innovative start-up, which are being piloted in the country. Established in 1989, the Asia-Pacific Economic Cooperation (Apec) forum comprises 21 economies, including Australia, Brunei, Canada, Chile, China, Hong Kong-China, Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Chinese Taipei, Thailand, the US, and Vietnam. The Apec Economic Leaders' Week 2017, which is underway in Da Nang city, is the most important external event of Vietnam this year, with the participation of leaders from the 21 member economies vnp Intellasia 8 November / 47