VIETNAM MONTHLY REPORT Performance Data as at 31 December 2017

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1 Performance Data as at 31 December 217 MARKET REVIEW VN Index closes at its high for the year at The stock market continued its up ptrend from Nov for the first few trading days of Dec, with the VN Index trading as high as 97 points before correcting all the way down to 917 by mid-month. Butthatprovedtobejustatemporary setback: The market came roaring back, rising 7.3 from its low to close Dec at , its highest level of the year. This was a gain of 3.6 for the month and 48. for the whole of 217. Dec average trading volume was $241.9m, slightly lower than the $262.4m of Nov (excluding the huge put-through of Vincom Retail and Vinamilk). Highest yearly net Foreign investors net bought $72.2m during the month, bringing the full-year net foreign inflow to foreign inflow since $1.15bn, 15bn the highest level since 2 7. Despite Thai Beverage having completed its purchase of of Sabeco (SAB) for $4.8bn the biggest State divestment ever, SAB was among the top three foreign stocks that experienced net selling during the month, with an outflow of $19.6m. HD Bank completes all pre-listing requirements Energy sector leads the VN Index on oil price recovery Valuation remains attractive, with many IPOs imminent During Nov, a new mid-sized bank, Housing Development Bank (HDB), completed its private placement of 21.5 of its shares to foreign shareholders, with a total deal size of around $3m. It also raised its charter capital by 1 to VND 9,81bn. This put HD Bank into the top-1 listed banks in terms of market cap. HDB is an SME- and retail-focused bank, owning 49 of the third-largest consumer finance company HD Saison. The bank targets 62.4 profit growth in 218 and will list on the HOSE on 5 Jan 218 at a listing price VND 33,/sh. The energy sector led the VN Index, driven by the 5.3 mom increase in the WTI crude oil price (up 4 from its yearly low in June). The sector s gain was mostly attributable to the 22.3 rise in PV Gas (GAS) and the 2.9 gain by Petrolimex (PLX). Banking was the second leading sector as preliminary full-year earnings were generally above expectations. Meanwhile, the consumer segment was the bigges st drag on the VN Index as SAB fell by Despite its sizeable gain for the year, Vietnam s stock market currently trades at 14.7x projected 218 earnings, which are forecast to grow at 19.3 yoy. As such, its valuation remains attractive at a 17.8 discount to regional peers. The market is eagerly anticipating several large IPOs in early 218, including Binh Son Refinery ($169m), Petro Vietnam Oil ($121m), Petro Vietnam Power ($297m), Vietnam Rubber Group ($271m) and Power Generation Corporation 3 ($289m). In total, these five IPO deals are expected to attract $1.15bn inflow. MARKET FORECASTS 31-Dec-17 Unit E 218F PER x EPS Growth PEG x neg Sales Growth EBIT Growth PBT Growth NPAT Growth Net DER x Yield MARKET PERFORMANCE 5 1, Volume (LHS) VNI $m 9 4 VN Index (RHS) Mar-12 May-13 Jul-14 Sep-15 Nov-16 Dec-17 COMPARATIVE RATINGS, 218 FOREIGN FLOWS REMAIN SOLIDLY POSITIVE 22 2 PER - X PHILIPPINES INDONESIA INDIA $m THAILAND CHINA VIETNAM MALAYSIA EPS LCY Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 1

2 Performance Data as at 31 December 217 ECONOMY REVIEW Government meets its 217 economic growth and stability targets GDP grew 6.8 in 217; inflation at 2.6 Trade surplus expands to $2.9bn as exports grew by 21.2 Budget deficit and public debt decline Vietnam s economy closed 217 on an impressive note, with the Government achieving all of its economic growth and stability targets for the year. And economic prospects remain bright going into 218, with GDP growth expected to remain robust and inflation well controlled. 217 GDP growth surpassed the Government s target of 6.7, ending the year at 6.8 vs 6.2 in 216. Most sectors grew faster in 217, with manufacturing posting the highest growth at 14.4, thanks mainly to foreign companies, in particular Samsung and Formosa. However, mining output remained sluggish, falling by 4. on lower oil production. On the demand side, consumption maintained its upwar rd trajectory, with retail sales rising 9.5 in real terms against 8.3 in 216. Consumers income rose as GDP per capita grew to nearly $2,4. Rising incomes and a growing middle-income class should invigorate local consumption in the coming years. And inflation stood at 2.6 in 217, well below the target of 4.. As for external positions, the trade surplus expanded to $2.9bn in 217 vs $1.8bn in 216, with exports of $214.bn and imports of $211.1bn. Exports grew at their fastest pace in the past five years at 21.2, thanks to the substantial contribution of FDI, with major export goods being mobile phones, electronic products and textiles. til A relatively l low labour cost, stable politics, and improvement of infrastructure should continue to garner the attention of foreign manufacturers. In fact, FDI disbursements touched a high of $17.5bn in 217. Strong external positions and State divestments assisted the State Bank to build up foreign reserves to a high of $52bn in 217, enabling the dong to remain stable against the greenback. Thefiscalpositionimprovedin217, with a reduction in both the budget deficit and public debt. The budget deficit was 3.5 of GDP in 217 against 5.1 in 216, and public debt was 61.3 of GDP in 217 vs 63.6 in 216. We forecast 218 GDP growth at 6.7; inflation at 3. We forecast GDP to grow at 6.7 in 218, led by firm manufacturing and consumption. Inflation was primarily fueled by the upward adjustment of public service fees in 217, and the Government might control these in line with its inflation target in 218. As such, we project headline inflation at 3. for 218. Meanwhile, strong external positions and IPOs/privatisations will likely ensure continued significant USD inflows. Consequently, it might be difficult for the dong to depreciate by more than 2 against the USD in 218. ECONOMIC FORECASTS unit F Real GDP Growth Nominal GDP $bn CPI Export Growth (cif) Import Growth (cif) Trade Balance (cif) $bn (3.5) FX Reserves $bn FDI Disbursed $bn VND:$ (interbank) 1 22,54 22,75 22,75 23, GDP SURPASSES GOVERNMENT TARGET MANUFACTURING GROWTH HIGHER YET AGAIN 2 $bn 16 FDI DISBURSEMENT UP FOR FIFTH YEAR

3 Performance Data as at 31 December 217 VIETNAM ENTERPRISE INVESTMENTS LIMITED VEIL VEIL closed 217 with a strong Dec, rising 4.3 and outperf forming the VN Index by.5. Fund s outperformance were Airports Corp of Vietnam (ACV) and Hoa Phat Group (HPG). The main contributors to the ACV had a massive Dec on news that Aéroport de Paris negotiation to become ACV s strategic partner is likely to fail and the Ministry of Transportation is now considering selling up to 2 of the company to financial investors in the period. Meanwhile, the company is still on track to deliver 24 core profit growth for 217, while consensus estimates of top sell-side analysts put 218 core earnings growth at 3+. Listing of ACV on the main board is also expected next year. HPG s stock also performed well as the company reported its total sales volume in 217 hit an all time high of 3m tons, up 25 yoy. Construction steel, the company s key segment, also hit record high sales volume at 2m tons, up 2, cementing HPG s leading position in the industry with a 24 market share. Although they are both big holdings of the Fund that rose substantially, VEIL s underweight in VNM and GAS detracted from the Fund s performance. In the case of VNM, Jardine s emergence as a major shareholder in such a short time completely changed the dynamic of the story: F&N was no longer the sole interested party in VNM s divestment by the State. Sentiment in the stock was ebullient after the aggressive buying on the market by Jardine. As for GAS, it was a clear beneficiary of the recent sharp rise in global l oil prices, which h will have a direct impact on the company s averageselling price. On the downside, Sabeco (1.3 of NAV, -24.) was a noteworthy case. After the successful sale by the Government of a majority stake to, effectively, Thai Bev at quite a premium valuation, reality seemed to have hit home that any material improvements in efficiency and profitability that investors might have expected would take at least a few years to materialize. The result was a sudden and mass exodus from the stock. PRICE AND NAV DATA Net Price NAV/Share Assets Bid Offer $1,554.1m $ ,148.8m Price Change Monthly YTD Std. Dev. Sharpe Ratio NAV PERFORMANCE (in $ terms) TR$ - 31/12/217 VEIL (NAV) VNI (benchmark) VN3 (comp) M 3.6 1Y 2Y 3Y 5Y TOP 1 HOLDINGS (55.2 of NAV) COMPANY SECTOR VNI NAV CH 1 Mobile World Retail Vinamilk F&B ACB Banks Military Bank Banks ACV Transport FPT S wre/svc's Khang Dien House Property PV Gas Energy Hoa Phat Group Mat's/Res Vietjet Air Transport (1) (2) (3) (4) DISCOUNT TO NAV (5) Jan-5 Mar-7 May-9 Jul-11 Sep-13 Nov-15 Dec-17 3

4 Performance Data as at 31 December 217 VIETNAM EQUITY (UCITS) FUND VEF VEF rose 3.6 in Dec while the FTSE-VN Index gained 8.9. The Fund s gain was mostly attributable to Vinamilk (VNM), Coteccons (CTD), Phu Nhuan Jewelry (PNJ) and Airport Corporation of Vietnam (ACV, 3.23 of NAV, +29.2). On the downside, Mobile World (MWG) and Sabeco (SAB) detracted the most from performance. The benchmark FTSE-VN Index was mostly driven by outsized gains of its top-weighted positions such as Masan Group (MSN), Vinamilk, Vingroup (VIC) and Hoa Phat Group (HPG). And while VNM and HPG are amongst the Fund s top ten holdings, MSN and VIC are not, as we consider them to be overvalued. Our lack of holdings in those stocks was the main cause of our underperformance. The Fund s second-largest position, VNM, continued its strong momentum from Nov, rising 12.6 on heavy foreign buying following the divestment by the State Capital Investment Corp oration (SCIC) last month. VNM s fundamentals remain solid, with earnings expected to grow 15 in 218, driven by expanding market share, higher average selling prices and lower input material costs. VNM is now trading at 26.2x 218 earnings. In Dec, we increased our position in CTD fivefold - at a discount. The discount came about through the finalisation of a purchase agreement from some time ago, but the shares only became tradeable in Dec. Thus, although the share price was essentially flat, it contributed significantly to the Fund s performance. PNJ rose on good Nov results, with earnings up 71 yoy. We expect it to deliver VND 73bn in net profit for the whole of 217, up 62 yoy. In Nov and Dec, the company opened 16 new stores, bringing the total to 269 and approaching the target of 3 stores by April 218. Same store sales grew 22 in Nov, further reinforcing sentiment in the stock toward year-end. On the downside, the Fund s top position, MWG, fell as 1.7m shares were unlocked in Dec via the company s ESOP, creating a short-term oversupply. Its fundamentals remain solid, with 11M net earnings up 38 yoy. And Sabeco fell 24.2 following the divestment of the Ministry of Industry & Trade at VND 32,/sh, or 43x 217 earnings. We also took profit on the stock on strength and fully divested from it in Dec. PRICE AND NAV DATA NAV Change Net Assets NAV/Share Std. Dev. Sharpe Ratio Monthly YTD Total Cash $ $163.11m NAV PERFORMANCE TR$- 31/12/ VEF 12 FTSE Vietnam VNIndex M YTD 1Y 2Y 3Y INCEPTION 9/13 TOP 1 HOLDINGS (57.4 of NAV) COMPANY SECTOR FTSE NAV CH 1 Mobile World Retail Vinamilk F&B Phu Nhuan Jewelry Cons Dur VN Prosperity Bank Banks Hoa Phat Group Mats/Res Hau Giang Pharma Pharma Binh Minh Plastic Mats/Res HCMC Infrastructure Infra Viglacera Mats/Res Coteccons Property F&B, 11.7 Retail, 9.9 SECTOR BREAKDOWN Mats/Res 14.1 Infra, 9.7 Others, 1.7 Cash, 2.8 Brokers, 2.7 S'ware & S'vcs, 3.9 Banks, 9.2 Utilities, 4.4 Pharma, 4.9 Cons Dur, 8.2 Property, 8.4 Transport, 8.4 4

5 Performance Data as at 31 December 217 VIETNAM DEBT FUND VDeF 217 ended with a bang for both the equity and fixed income markets. Macro-economic variables continued to behave well and the dong had good support from the large inflows, with the Sabeco IPO being the biggest, contributing in excess of $4bn. The currency reserve finished at a record high level of $51.5bn, while the dong strengthened from 22,719 to 22,79, indirectly finding support from a weakening US dollar. From mid-nov, the EUR/USD went from to 1.198, the USD/CNY from 6.63 to 6.51, and the USD Index from 93.8 to As a result of the SBV buying the US dollar, the interbank bond market was flooded with cash at the same time as State Treasury continued with sparse bond issuance. VGBs became e scarce, which resulted in a major imbalance between supply and demand, pushing down VGB yields to record low levels. The 1-, 3-, 5- and 15-year screen yields, which started Dec at 3.95, 4.35, 4.61 and 5.99, fell by 27, 32, 25 and 3 bps to 3.65, 4.3, 4.36 and During the next 1-2 years, the SBV will very likely manage to keep average inflation below 4, but interbank rates may well stay above 4 for prolonged periods. Thus, from these levels, it is hard to see any further downside potential in the 1-5 year yields. Theoretically, the 15-year has the potential to come down further, although the volatile liquidity could pose a danger. Thus, any need for exit needs to be carefully considered before buying large amounts. VDeF-B s Dec net USD performance after fees/taxes but before performance fee was 1.31, resulting in a final 217 performance of 11.86, while the gross performance was The 1-, 2-, and 5-year VGB indices and DC market capand Thus, even in net-terms, VDeF-B was ahead of based bond index had 217 returns of 4.81, 7.8, the reference indices. After deducting the performance fee, the 217 final net-net return was The excess performance of VDeF-B can, to a large extent, be attributed to positions in 15+ year tenures, which were liquidated with large capital gains in July. PRICE AND NAV DATA Net NAV/ VND Returns USD Returns Assets Share Month YTD Since Launch Month YTD Since Launch VDeF - B $62.37m $1, DCB Index NAV PERFORMANCE VDeF Net 18 DC Vietnam Liquid Bond Index Nov-7 Dec-9 Dec-11 Dec-13 Dec-15 Dec VGBs 1yr VGB 5yr VGB 2yr VGB 3 Feb-13 May-14 Jul-15 Oct-16 Dec bps VIETNAM CDS Vietnam Diff to Average of Indo/Phil/Thai -1 Sep-8 Jan-11 May-13 Aug-15 Dec-17 5

6 Performance Data as at 31 December 217 VIETNAM PROPERTY FUND VPF VPF s Annual Report for the financial year ending 3 June 2 17 was published in Dec 217. It was a relatively successful year for VPF, with the adjusted NAV increasing by 6.5 for the year from 1 July 216 to 3 June 217. Accordingly, VPF s share price closed its NAV discount gap from 32.4 as at 3 June 216 to 26.7 as at 3 June 217. VPF s share price to NAV discount has narrowed to 17 from 26.7 since the end of financial year 217. The best performing assets for VPF during the calendar year were Development Investment Construction (DIG), which rose 169, and once again our co-investment in the Vincom Retail JV, up by 7, taking the value to just under $3m from an original investment of just under $12m. VPF partially exited the star performer, Vincom Retail, at IPO, resulting in a tripling of its investment since 213. The recovery of the real estate market has been strong during 217 and the trend is continuing. This a good environment for VPF to continue exiting projects. The Investment Manager will continue to take advantage of the strong real estate market recovery to divest VPF s remaining investments in a controlled and orderly manner. During the second half of 217, VPF divested two investments fully and one partially, with total net proceeds of circa $4m. These divestments t enabled VPF to distribute ib t cash through acapital return totalling t $16,992,799, equivalent to $.2 per share, in Dec. In Sep and Dec 217, VPF returned two tranches of capital to shareholders, with the combined capital return of $2,986,15 or $.247 per share. Further capital distribution to shareholders is anticipated in early 218. NAV Change Price NAV/Share Monthly YTD Bid Offer $ $.48 $.52 PRICE AND NAV DATA Price Change Net Sharpe Std. Dev. Monthly YTD Assets Ratio $51.17m $ SHARE PRICE 1 NAV PREMIUM / DISCOUNT Share Price Premium/ Discount to NAV (LHS) NAV (RHS) 1.1 $ 1..8 (1).9 (2).8.6 (3).7 (4).6.4 May-8 Jan-1 Aug-11 Mar-13 Oct-14 May-16 Dec-17 (5).5 May-8 Apr-1 Mar-12 Feb-14 Jan-16 Dec-17 VPF PORTFOLIO SUMMARY By Asset Class Fair Value ($) of NAV Cash 26,96, Investment Loan 12,97, Private Equities 9,222, Listed Equities 2,96, OTC Equities 1,246, Others* (396,1) (.8) Total 51,173, By Sector Fair Value ($) of NAV Cash 26,96, Property Projects 21,32, Property Stocks 3,343,4 6.5 Others* (396,1) (.8) Total 51,173, * Others is the net of other accounts receivable and accounts payable. 6

7 Performance Data as at 31 December 217 APPENDIX 1: MACRO Key Indicators Item Unit Top-Down GDP $bn Real GDP Growth Services Growth Agriculture Growth Ind'l and Const'n Growth Retail Sales Growth Prices CPI F Money, FX & Interest Rates Money Supply M Average Lending Rate yr VGB VND : $ $1 21,2 2,85 21,25 21,39 22,54 22,75 22,75 23, External Sector Trade Balance $bn (9.8).8. Current Account $bn Current Account / GDP FDI Registered $bn FDI Disbursement $bn FDI Net Disbursement $bn FX Reserves $bn (3.5) Public Debt & Fiscal Balance External Debt $bn External Debt ( GDP) Fiscal Balance ( GDP) (4.5) (5.4) (5.5) (5.3) (5.2) (5.1) (3.5) (4.2) 7

8 Performance Data as at 31 December 217 APPENDIX 2: MARKET Key Stock Market Data HSX HNX UPCoM Total 31-Dec Dec Dec Dec Dec Dec Dec Dec-17 Market cap ($m) 65, ,148 6,738 9,891 13,462 3,141 85, ,181 Number of stocks Number of large cap stocks (> $4m) Stocks with no room for foreigners Market cap of stocks with no room ($m) 5,178 15,969 1,64 1, ,346 6,296 19,254 Share of Market Cap with No Room () Top 25 Companies 31-Dec Price Mkt Wt PER PBV Yield No Company Price YTD Cap in VNI F 218F F 218F F 218F (VND) () ($m) () (x) (x) (x) (x) (x) (x) () () () 1 Vinamilk 28, , Airports Corporation VN 18, , Vingroup 77, , Vietcombank 54, , PV Gas 97,4 7. 8, Sabeco 249, , Vietinbank 24, , BIDV 25, , Petrolimex 75, 6.9 3, Masan Group 76, , Hoa Phat Group 46, , Vietjet Air 146, , VP Bank 41, 5.1 2, Military Bank 25, , Bao Viet Holding 65, , Mobile World 131, , Novaland 65, , ACB 36, , FPT 57, , Coteccons 226, Hau Giang Pharma 115, Phu Nhuan Jewelry 137, SSI 28, Quang Ngai Sugar 54, REE 41,

9 Performance Data as at 31 December 217 Fund Bloomberg ISIN SEDOL CUSIP Listed VEIL VEIL LN KYG9361H192 BD9X24 G9361H19 London (Main Market) VEF VIETNAM ID IEBD5HPH84 n/a n/a n/a VDeF-B VNDEBTB KYG B3K9234 G Ireland VPF VPF ID KYG9362H183 B9JL3Q3 G9362H18 Ireland Price Providers Funds Bloomberg Reuters Contact Dragon Capital Markets VPF DGCP DRAGON1 Nick Ainsworth Jefferies International VEIL,VPF JCEF BNP Paribas VEF n/a Michele White IFS Operations (investing from Asia) Transfer Agency Department (investing from Europe / ROW) Operational VEIL Trading Shares trade as depositary interests on the London Stock Exchange Clearing CREST Participant ID 393 (UK Equity) Settlement BIC Code: JEFFGB2X Legal Entity Identifier (LEI) 2138SYT3T4AGEVW864 VEF Subscription & Withdrawals VDeF Subscription & Withdrawals Operational VPF Trading Clearing Settlement Daily Monthly Shares trade OTC on a matched-market basis on the Irish Stock Exchange Euroclear or Clearstream Standard Chartered Bank Singapore, Clearstream No DISCLAIMER This document is issued by Dragon Capital Markets Limited ( DCK ) on beha alf of Enterprise Investment Management Limited (for VEIL), Dragon Capital Management Limited (for VPF), Dragon Capital Debt Management Limited (for VDeF), and Dragon Capital Management (Hong Kong) Limited (for VEF). This document is for investors in the above referenced funds (the Dragon Capital Funds ) and other eligible recipients only. By receiving the documents, recipients confirm their eligibility. It contains a review of the investment case for Vietnam and is neither a prospectus nor an offer or invitation to apply for shares or other interests and neither this document nor anything contained herein shall form the basis of any contract of commitment whatsoever. The information contained in this document is for background purposes only and is subject to updating, revision and amendment, and no representation or warranty, express or implied, is made, and no liability whatsoever is accepted by DCK, or any other person, in relation thereto. Any investment must be made on the basis of the prospectuses p of the Drag gon Capital Funds alone and this document may only be distributed to those eligible to receive those prospectuses. Investors are shareholders or unit holders in the Dragon Capital Funds and not customers of DCK. Past performance is not necessarily a guide to the future. The value of shares in the Dragon Capital Funds and any income derived therefrom may go down as well as up. You are advised to exercise caution in relation to this document. If you are in any doubt about this document or any information contained in this document, you should obtain independent professional advice. Information specific to UK investors in VEIL: Based on analysis undertaken on behalf of the fund by KPMG, they state that they consider that VEIL does not meet the definition of an offshore fund for the purposes of the Offshore Fund Regulations in the UK. On the basis of the this the Offshore Fund Regulations do not apply to VEIL and therefore the reporting fund status regime is not relevant to the fund or its UK investors. Please contact a member of the client group if you require the full report from KPMG. Representative and Paying Agent in Switzerland: The representative and paying agent for VEF in Switzerland is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 82 Zurich, Switzerland. The VEF prospectus, the key investor information documents (KIIDs), the articles of incorporation as well as the annual and semi-annual reports may be obtained free of charge from the representative in Switzerland. Dragon Capital Markets Limited 217. All rights reserved. The information contained in this document is strictly confidential and intended only for the use of the individual or entity to whom the report has been provided by DCK. It is solely addressed to persons outside Vietnam. No part may be divulged to any other person, distributed, resold and/or reproduced without the prior written permission of DCK. 9