CONTENT I. VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN IV. CORPORATE GOVERNANCE V. SUSTAINABLE DEVELOPMENT II. CORPORATE PROFILE

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2 CONTENT I. VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN 04 Vision, Mission and Core Values Highlights Top Ten Events of Titles and Awards Message from the Chairman Financial and Operational Highlights IV. CORPORATE GOVERNANCE 64 Vingroup Governance Structure 64 Report of the Board of Directors 67 Report of the Supervisory Board 70 Governance Report 72 Internal Audit Report 74 Risk Management 75 Share Information and Investor Relations 79 II. CORPORATE PROFILE 18 V. SUSTAINABLE DEVELOPMENT 88 About Vingroup 18 Corporate Milestones 20 Businesses 22 Corporate Structure 32 Board of Directors 34 Management 36 Supervisory Board 38 Development Strategy 39 Sustainability by the Numbers and 2016 Highlights Vingroup s Vision for Sustainability Managing Sustainability 2016 Sustainability Report III. MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION 2016 Economy and 2017 Outlook 44 Vingroup Operations and Financial Performance in 2016 Blueprint for VI. CONSOLIDATED FINANCIAL STATEMENTS VAS Consolidated Financial Statements Summary IFRS Consolidated Financial Statements Reconciliations between VAS and IFRS Consolidated Income Statements VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

3 ANNUAL REPORT 2016 PRESERVING THE START-UP MINDSET VINHOMES GOLDEN RIVER

4 VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN VISION, MISSION, AND CORE VALUES VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN VISION, MISSION, AND CORE VALUES CHAPTER I THÔNG ĐIỆP CỦA CHỦ TỊCH HỘI VINGROUP 2016 AND ĐỒNG QUẢN TRỊ MESSAGE FROM THE CHAIRMAN VISION Vingroup s vision is to be the leading property developer and retailer in Vietnam by establishing a reputation as a Vietnamese brand that adheres to international standards. VISION, MISSION, AND CORE VALUES CORE VALUES Anchored in respect for discipline, Vingroup has built a corporate culture of professionalism that is expressed in six core values: CREDIBILITY INTEGRITY CREATIVITY SPEED QUALITY HUMANITY: CREDIBILITY Vingroup vigorously protects its Credibility as one would protect one s reputation. The Group is fully prepared to execute its plans and spares no effort in meeting its goals. SPEED Vingroup considers Speed and efficiency in every activity as a guiding principle. We practice Fast Decision Fast Investment Fast Deployment Fast Sales Fast Change and Quick Adaptation. SLOGAN PRESERVING THE START-UP MINDSET INTEGRITY Vingroup considers Integrity a foundation of its business. We comply fully with the law and maintain the highest level of professional and social ethics. In other words, customers come first. QUALITY The Group operates under the principle of Best People Best Products and Services Best Life Best Society. CREATIVITY Vingroup believes that Creativity enables the Group to deliver on its philosophy of Dare To Think, Dare To Do, aimed at building an organization eager to learn. HUMANITY Vingroup respects the interests of all of our stakeholders. We value employees as our most important asset. As a mature company with an established history, Vingroup also believes it is important to preserve the entrepreneurial values that led to our success. The startup mindset includes listening to customers, cultivating creativity, demonstrating the courage to innovate, and collaborating to succeed. We believe that the start-up mindset must always guide our growth and development. NỘI DUNG Vision, Mission and Core Values 1. Tầm 2016 nhìn, Highlights sứ mệnh và giá trị cốt lõi 2. Điểm Top nhấn Ten Events năm 2016 of Danh 2016 hiệu, Titles giải and thưởng Awards năm Top Message 10 sự kiện from nổi the bật Chairman năm Thông 2012 điệp 2016 của Chủ Financial tịch Hội and đồng Quản trị Operational Highlights 6. Các chỉ tiêu kinh doanh cơ bản giai đoạn MISSION FOR THE MARKET To deliver products and services that meet the highest international standards while reflecting the customs and cultural values of Vietnam. FOR EMPLOYEES To establish a dynamic, creative, and compassionate work environment that enables all employees to achieve their highest potential. FOR SHAREHOLDERS AND PARTNERS To uphold a cooperative spirit of mutual development. The Group is committed to being The Number One Partner to our suppliers and investors by creating sustainable value over the long term. FOR THE VIETNAMESE SOCIETY To demonstrate corporate social responsibility in order to balance our business goals with contributions to the community. LOGO VINGROUP S LOGO of a bird in flight towards the sun expresses our desire to reach new levels of success. THE FIVE STARS shown beneath the logo of the bird stand for Vingroup s gold-standard criteria and principles. THE V-SHAPE OF THE BIRD S WINGS makes reference both to national pride and to Victory in our competitive markets. THE RED AND YELLOW COLORS are from the country s national flag, expressing our pride in the Vietnamese identity, spirit and intelligence. 04 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

5 VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN 2016 HIGHLIGHTS VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN TOP TEN EVENTS OF HIGHLIGHTS 15,000 VINHOMES APARTMENTS, VILLAS, SHOPHOUSES AND CONDOTELS PRE-SOLD VND 83 TRILLION CONTRACTED PROPERTY SALES 1,000,000 M 2 OF RETAIL GROSS FLOOR AREA 56,000,000 RETAIL PURCHASES 1,000 RETAIL STORES 1,600,000 GUEST NIGHTS AT 32 1,900,000 VINPEARL HOTELS SHOPPING CENTERS 320,000 VINID MEMBERS NATIONWIDE PATIENTS AT VINMEC 4,100,000 VINPEARL LAND VISITORS 13,000 STUDENTS ENROLLED AT VINSCHOOL 630 HA OF VINECO AGRICULTURAL LAND TOP TEN EVENTS OF 2016 GROUND-BREAKING FOR MULTIPLE MAJOR REAL ESTATE DEVELOPMENTS AND LAUNCH OF THE VINCITY BRAND During 2016, Vingroup unveiled 24 projects throughout the country including Vinhomes Gardenia, Vinhomes Metropolis, Vinhomes Green Bay, Vinhomes Skylake in Hanoi, Vinhomes Golden River in Ho Chi Minh City, and Vinhomes Imperia in Hai Phong. Vingroup also sold 15,000 apartments, villas, commercial shophouses, and condotels with contracted sales revenue of VND 83 trillion. During the year, Vingroup introduced VinCity our affordable real estate brand. VinCity will be developed in seven major provinces and cities including Hanoi, Ho Chi Minh City, Hai Phong, Hung Yen, Thanh Hoa, Ha Tinh and Khanh Hoa. TEN NEW SHOPPING MALLS OPENED DURING 2016 AND VINCOM+ INTRODUCED Vincom Retail made significant gains in 2016 with the opening of ten new shopping malls, boosting the network to a total of 32 malls across 15 provinces and cities throughout Vietnam. NET REVENUE VND 57.6 TRILLION MARKET CAPITALIZATION VND TRILLION PROFIT BEFORE TAX VND 5.8 TRILLION EMPLOYEES ~40,000 PEOPLE Vincom Retail also launched the first Vincom+ shopping mall in Long Thanh, Dong Nai, marking the addition of the fourth format. The four formats developed by Vincom Retail now include Vincom Center, Vincom Mega Mall, Vincom Plaza, and Vincom+. The latest format signals Vincom Retail s strategy to expand its network in provinces and smaller cities and to introduce modern shopping to consumers nationwide. VINPEARL RAISES CAPACITY TO 6,000 ROOMS AND LAUNCHES VINPEARL CITY HOTEL BRAND Vinpearl opened two new developments during 2016 the Vinpearl Golf Land Resort & Villas in Nha Trang and the Vinpearl Can Tho Hotel. These openings bring Vingroup s hotel and resort network to nine properties with a total of over 6,000 rooms. In order to further diversify its product offerings and to meet demand in the provincial areas, a new line of premium city hotels has been added. Vinpearl Can Tho Hotel is the first entry in this new category. 06 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

6 VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN TOP TEN EVENTS OF 2016 VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN TOP TEN EVENTS OF 2016 VINCOMMERCE S EXPANSION OF MODERN CONSUMER RETAIL NETWORK With 1,000 stores throughout the country, VinCommerce has not only achieved a higher level of quality in its retail operations, but has also reached the scale where it can promote domestic production of clean and safe foods sold in its stores. In June 2016, VinCommerce launched a program to promote domestic production of clean and safe consumer goods and signed MOUs with nearly 250 companies. During 2016, VinCommerce established two food safety testing laboratories in Ho Chi Minh City and Hanoi. In addition, 18 instant testing stations with advanced equipment were set up across the VinMart network. This equipment enables VinMart to test food samples daily and to monitor the quality and safety of all food supplied to VinMart supermarkets and VinMart+ convenience stores. VINMEC AND VINSCHOOL ARE CONVERTED INTO SOCIAL ENTERPRISES In September of 2016, Vingroup announced that Vinmec and Vinschool have been converted to social enterprises, and that proceeds from their operations will be reinvested to expand and improve both networks, as well as to fund research and technology transfer while enhancing international cooperation. The decision reflects Vingroup s determination to raise the quality of healthcare and education in Vietnam. INTERNATIONAL HOSPITALS OPENED IN NHA TRANG AND HA LONG Vinmec Nha Trang International Hospital opened in April of 2016 with 150 beds. In December, Vinmec Ha Long International Hospital became operational. Both hospitals meet international standards and offer a full range of medical services. These openings address the local demand for high quality healthcare services, contribute towards the development of the local tourism industry and serve as part of Vinmec s goal of developing a network of 10 hospitals by VINSCHOOL EXPANDS TO TEN CAMPUSES AND ADMITS 13,000 STUDENTS In its third year of operations, Vinschool has reached a total enrollment of 13,000 students across ten campuses. In addition to growing in scale, Vinschool continuously improves its quality of education. The Vinschool network now offers a curriculum that encompasses both the Vietnamese national program and accredited international programs including the IPC Early Years Program, the Cambridge High School Program, and other curricular options. These improvements enable Vinschool to realize its vision of becoming the leading international-standard network in Vietnam. VINGROUP PARTNERS WITH 1,000 AGRICULTURAL CO- OERATIVES AND FARMERS TO PRODUCE CLEAN AND SAFE FRUITS AND VEGETABLES This new program is aimed at expanding domestic production of clean and safe agriculture produce and to provide farmers with access to more advanced production techniques. The program is entitled Partnership and Assistance for Vietnamese Products, which echoes Vingroup s mission to create a better life for the Vietnamese people. It will also promote the development of an international market for Vietnamese culinary brands. SUCCESSFULLY ISSUED THREE TRILLION VND CGIF- GUARANTEED BONDS AND OBTAINED USD 300 MILLION OF INTERNATIONAL SYNDICATED LOAN Vingroup succeeded in arranging a domestic issue of five- and ten-year bonds with coupon rates of 7.75% and 8.5%, guaranteed by CGIF, a trust fund of the Asian Development Bank (ADB). This landmark transaction debuted CGIF s support for the real estate sector in ASEAN. Vingroup also accessed the international syndicated term loan market for the second time in 3 years in 2016 with a loan of USD 300 million. The transaction helped the Group to diversify its sources of financing, balancing domestic and international borrowings, and reducing its longterm interest rate risks. The Asset magazine named this transaction Vietnam s Best International Syndicated Loan of VINID S BIGGEST CUSTOMER APPRECIATION EVENT The VinID reward card is a smart All in One membership card that connects customers to Vingroup s ecosystem, designed to promote growth in Vingroup s business segments and to offer effective marketing and advertising solutions for our subsidiary businesses. In 2016, VinID upgraded its system to optimize functionality and recorded 1.9 million members. Vingroup s January 2017 VinID Music Festival was the Group s biggest ever customer appreciation event, attracting nearly 30,000 attendees to My Dinh Stadium. The event was also followed online by many thousands more. 08 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

7 VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN 2016 TITLES AND AWARDS VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN 2016 TITLES AND AWARDS 1 TOP 2 TOP 3 Vietnam 4 The 5 TEN SUSTAINABLE COMPANIES OF 2016 Vingroup was named one of the ten Most Sustainable Companies in Vietnam in November This award is a testament to Vingroup s contributions to the economy and the community, recognizing the Group s achievements in sustainable development and competitiveness in the international economy. 300 MOST DYNAMIC COMPANIES IN ASIA Nikkei Magazine selected Vingroup as one of Asia s 300 most dynamic companies, the Asia300, together with some of the biggest names from 11 countries in the region. This list comprises the largest and fastest growing companies in Asia as measured by market value. LARGEST PRIVATE CORPORATE TAX PAYER IN VIETNAM Report ranked Vingroup first among private corporate taxpayers in Vietnam for the third consecutive year, in recognition of the Group s contribution to the government budget, as well as its scale and growth. VIETNAM S BEST INTERNATIONAL SYNDICATED LOAN Asset, a reputable Asian financial magazine, selected Vingroup for this award on the basis of the Group s international syndicated loan of USD 300 million. This is the second time Vingroup raised capital in the international syndication loans market, making Vingroup the only real estate company in Vietnam to have successfully accessed this market up to date. The Asset magazine named this transaction Vietnam s Best International Syndicated Loan of BEST ANNUAL REPORTS BY ARC, LACP AND HO CHI MINH CITY STOCK EXCHANGE Vingroup received the Gold Award for Best Annual Report in the field of Property Development: Various & Multi-use by the ARC. The Group was also honored by the LACP with two Gold Awards for the Global Conglomerates category and Integrated Reports Asia Pacific and EMEA, as well as Best In-house Report Asia Pacific. ARC and LACP are the two most prestigious international awards for annual reports. Vingroup was also selected as one of the Top 10 Best Annual Report by the Ho Chi Minh Stock Exchange (HOSE) TITLES AND AWARDS 6 In 7 Vingroup 8 Vingroup 9 Vingroup 10 FIVE MOST VALUABLE BRANDS IN VIETNAM September of 2016, Vinhomes, VinCommerce, Vincom Retail and Hanoi South, a brand of Hanoi Southern City Development JSC (a subsidiary of Vingroup) were selected among Vietnam s Top 50 Most Valuable Brands of 2016 by Brand Finance magazine. The value of all of Vingroup s brands doubled from last year while their rankings have all improved: Vincom Retail rose from #28 to #20, Vinpearl rose from #32 to #23 and VinCommerce secured a position in the Top 20 Brands for the first time, despite having only been launched in late EUROMONEY REAL ESTATE AWARDS was awarded three prizes by Euromoney, an international finance magazine: Best Mixed-use Developer, Best Retail Developers, and Best Leisure/Hotel Developer at the 2016 Euromoney Asia Real Estate Awards. Together these awards confirmed Vingroup s stature as the leading property developer in Vietnam INTERNATIONAL PROPERTY AWARDS (UK) received first prize in the category Best Residential High-Rise Development for Landmark 81 Tower, and first prize in the category Best Mixed-use Development for Vinhomes Central Park. The International Property Awards are recognized as one of the most prestigious real estate prizes in the world. The awards ceremony was held in December of Vinhomes was the only Vietnamese real estate company to secure top awards for Best Residential High-Rise Development, Best High-Rise Development and Best Residential Landscape Architecture for the projects Vinhomes Central Park, Landmark Tower 81 and Vinhomes Times City Park Hill at the regional Asia Pacific Awards in Kuala Lumpur in April of BEST WORKPLACE IN REAL ESTATE, RETAIL AND HOSPITALITY was honored as the Best Workplace in two major categories: Real Estate, Architecture and Design, and Wholesale, Retail and Trade by the online career network, Anphabe. In addition, market research leader Nielsen ranked Vingroup the second best workplace in the field of Tourism and Hotels based on a survey of 23,000 customers. VINPEARL AND VINPEARL LAND WERE HONORED AS VIETNAM S TOP HOTEL AND TOURIST ATTRACTIONS Vinpearl Nha Trang Resort and Vinpearl Da Nang Resort & Villas were named amongst the Top 10 Five-Star Hotels by the Vietnam National Administration of Tourism, together with the world s most established and prestigious hotel brands. VINCOM CENTER NGUYEN CHI THANH In the category of Top 5 Tourist Attractions, despite competing for the first time, Vinpearl Land Nha Trang and Vinpearl Land Phu Quoc both received nominations. 10 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

8 VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN MESSAGE FROM THE CHAIRMAN VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN MESSAGE FROM THE CHAIRMAN MESSAGE FROM THE CHAIRMAN Vingroup has gained in stature and reputation during Both authorities and customers have accorded Vingroup a degree of respect that raises the standards we must meet. Vingroup is now viewed as one of the leading private corporations that are trusted by the domestic and international businesses communities, and an enterprise known for its can-do attitude. Dear Valued Shareholders, On behalf of the Board of Directors, I extend my warmest greetings and wish you good health, happiness, and success! Ladies and Gentlemen, The Vietnamese economy grew at annual rate of 6.21% during 2016, securing its position among the fastest growing economies in Asia. Inflation is under control at 2.66%. Stable interest rates and ample credit availability continue to create a favorable environment for development of the general economy and the real estate sector GROWTH AND CONTRIBUTION 2016 witnessed a comprehensive development in the standing and influence of Vingroup with broader social impact in all of our business segments. The Group set new records of VND 83 trillion in contracted property sales and VND 58 trillion in revenue. These totals represent growth rates of 18% and 69% over the corresponding levels achieved in The group also created over 10,000 new jobs, bringing total headcount to almost 40,000 employees. Growth in scale was accompanied by improvements in the quality and value-add of our products and services that have been acknowledged by our customers and outside experts. These improvements are reflected in the large number of awards Vingroup has received. For the first time in our history, Vingroup was awarded the Best Residential High-Rise Development globally for Landmark 81 by International Property Awards, one of the most highly-respected industry recognition programs. In our Real Estate business segment, Vinhomes again asserted its leadership position by consistently offering impressive products in the categories of apartments, villas, shophouses, office-tels and condotels across the country. The launch of VinCity, our affordable home brand, marked our entry into housing for middle-income customers and signalled our desire to address the demand for modern residential properties offering integrated facilities at reasonable pricing levels. Vincom Retail opened ten new shopping malls in 2016, bringing the total number of our malls to 32 across 15 provinces and increasing our total retail gross floor area to one million square meters. In our Hospitality and Entertainment business segment, Vinpearl opened two new hotels, bringing our total to nine hotels with 6,000 rooms across five localities. Our new product, Vinpearl City Hotel, is a hotel development model located in the central business districts of major cities. Our first hotel in this category is Vinpearl Can Tho. Together with Vincom shopping centers, Vingroup s Consumer Retail business, with its leading formats of VinMart supermarkets and VinMart+ mini-marts and convenience stores, quickly increased their footprint to 1,000 outlets nationwide, recording 56 million purchases. With the benefit of our differentiation strategy, the Group s network of supermarkets, convenience stores and mini-marts has become the nation s most trusted retailer for clean, safe foods and high quality products with clearly traceable origins. Our retail network strives to become a trusted and reliable channel for Vietnamese suppliers of consumer retail products. Our Social Infrastructure Services segment grew in scope and size during We made investments in human resources and technology in order to build Vinmec, Vinschool, and VinEco into networks with world-class operational capabilities. Worthy of note is our decision to convert Vinmec and Vinschool into non-profit social enterprises, underscoring our comitment to improve the quality of healthcare and education services in Vietnam. Vingroup has gained in stature and reputation during Both authorities and customers have accorded Vingroup a degree of respect that raises the standards we must meet. Vingroup is now viewed as one of the leading private corporations that are trusted by the domestic and international businesses communities, and an enterprise known for its can-do attitude A COMMITMENT TO QUALITY Vingroup aims to continue expanding its scope and footprint to quickly bring to market our ecosystem of products and services while ensuring their quality will be a crucial year for our Real Estate business segment as we focus on the expansion of the VinCity brand. This brand not only opens a new business direction for Vingroup, but also delivers on Vingroup s mission to create modern housing with integrated facilities for middle-income consumers. Each VinCity project will have access to a network of Vincom+ small and mediumsized shopping malls located in districts throughout the country, as well as social infrastructure offerings such as hospitals and schools. In our Consumer Retail and Hospitality and Entertainment segments, VinCommerce, Vinpearl and Vinpearl Land plan to significantly improve the quality of our service to differentiate them from their competitors, while continuing to expand their network and customer base will be a year of revolution in governance. We are launching a new campaign: Elevate Standardize Simplify Automate. The first step in this revolution elevate is to strengthen the role of business leaders and managers at all levels and to decentralize authority so that leaders can assume greater responsibility and accountability. We also need to focus on standardization of our products and services throughout the network, as well as simplifying our professional systems and processes. These steps are important as they allow for automation. Automation will be introduced for explicit and regulated procedures in order to raise productivity. While this revolution will be challenging, it also offers opportunities for Vingroup to achieve breakthroughs and to optimize efficiency. To accomplish our mission of to create a better life for the Vietnamese people, Vingroup has an enormous amount of work ahead of us. I hope to receive your continued support in accomplishing this mission. On behalf of the Board of Directors, I wish you good health, happiness and success. Sincerely yours, PHAM NHAT VUONG Chairman of the Board 12 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

9 VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN FINANCIAL AND OPERATIONAL HIGHLIGHTS VINGROUP 2016 AND MESSAGE FROM THE CHAIRMAN FINANCIAL AND OPERATIONAL HIGHLIGHTS FINANCIAL AND OPERATIONAL HIGHLIGHTS NET REVENUE Billion VND 57,614 NUMBER OF SOLD APARTMENTS, VILLAS AND SHOPHOUSES Units KEY LOCATIONS VINHOMES VINCOM VINMART VINMART+ VINDS VINPRO VINMEC VINSCHOOL HANOI ,048 VINPEARL LAND 1 27,724 18,378 4,400 14,000 15,000 7,904 NETWORK Recurring income Revenue from sale of inventory properties TOTAL ASSETS Trillion VND OWNER S EQUITY Trillion VND Vingroup s extensive business network covers prime locations in key cities throughout the nation. Business units located in Hanoi, Ho Chi Minh City, Khanh Hoa and Kien Giang are material contributors to the Group s overall profits (each representing at least 10% of the Group s total recurring revenue in 2016) VINCOM SHOPPING MALL NETWORK VINCOMMERCE RETAIL NETWORK VINPEARL HOTEL NETWORK HO CHI MINH CITY VINHOMES 2 VINCOM Stores Guest nights 000s 1,620 VINMART VINMART+ VINDS VINPRO VINMEC VINECO KHANH HOA VINCOM 2 VINPEARL 4 VINPEARL LAND 1 VINMART 2 VINMART , KIEN GIANG VINPEARL 2 VINPEARL LAND 2 VINMEC 1 VINECO 1 VINDS VINMEC Property Hospitality and Entertainment Consumer Retail Healthcare 3 1 Number of shopping malls VinMart VinPro Education Retail gross floor area ( 000m2) VinMart+ VinDS Agriculture 14 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

10 ANNUAL REPORT 2016 PRESERVING THE START-UP MINDSET VINPEARL HA LONG BAY RESORT

11 CORPORATE PROFILE ABOUT VINGROUP CORPORATE PROFILE ABOUT VINGROUP ABOUT VINGROUP CHAPTER II CHAPTER COMPANY NAME: VINGROUP JOINT STOCK COMPANY TICKER: VIC CHARTER CAPITAL: VND 26,377,079,540,000 (as at February 28, 2017) HEADQUARTERS: No. 7 Bang Lang 1, Vinhomes Riverside Ecological Area, Viet Hung Ward, Long Bien District, Hanoi, Vietnam Vingroup Joint Stock Company ( Vingroup or the Group ) is one of the largest listed companies in Vietnam, as measured by market capitalization. With a long-term vision and principles of sustainability, Vingroup has initially focused on developing hospitality, commercial and residential properties under its Vinpearl and Vincom brands. Today, Vingroup operates in four main business segments, namely: Property Hospitality and Entertainment PROPERTY Vinhomes Premium apartments, villas and shophouses VinCity Affordable real estate with integrated facilities Vincom Quality shopping malls and offices HOSPITALITY AND ENTERTAINMENT Vinpearl Hotels, resorts and beach villas Vinpearl Golf World-class golf courses Vinpearl Land Amusement parks and conservation parks CORPORATE PROFILE TEL: (84 4) FAX: (84 4) BUSINESS REGISTRATION NUMBER AND TAX CODE: Consumer Retail Social Infrastructure Services (Healthcare, Education, and Agriculture) WEBSITE: About Vingroup 18 Corporate Milestones 20 Businesses 22 Corporate Structure 32 Board of Directors 34 In all of our businesses, Vingroup has proven a market leader, pioneering the modernization of consumer trends, bringing about world-class products and services and a modern lifestyle experience. CONSUMER RETAIL VinMart & VinMart+ Supermarkets, mini-marts and convenience stores VinPro Electronics and appliance stores VinDS Consumer lifestyle specialty retail stores Adayroi Comprehensive e-commerce platform SOCIAL INFRASTRUCTURE SERVICES Vinmec International hospitals Vinschool High-quality K-12 school system VinEco Clean and safe agricultural produce Management Supervisory Board Development Strategy VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

12 CORPORATE PROFILE CORPORATE MILESTONES CORPORATE PROFILE CORPORATE MILESTONES CORPORATE MILESTONES 2007 Vinpearl cable car, with a total of 3,320 meters in length, connected Hon Tre Island with the main land. Vinpearl Nha Trang Resort opened one more tower, raising the total number of five-star guest rooms to 485. Vingroup was honored as the Best Developer Vietnam by Euromoney and Vinhomes Riverside was honored as the Best Villa Development Vietnam and Asia Pacific at the Southeast Asia Property Awards in Singapore Vingroup achieved major progress in its property business segment by pre-selling 14,000 apartments, villas, and shophouses. By year-end, the Group operated 15 additional shopping malls and three more hotels Vinpearl JSC (formerly Hon Tre Tourism and Trading Limited Liability Company) was established on July Vincom JSC (formerly Vietnam General Commercial JSC) was founded on May Five-star resort Vinpearl Nha Trang commenced operation Vincom Center Ba Trieu was launched. As the first modern shopping center in Hanoi, Vincom Center Ba Trieu introduced a new shopping experience to the capital of Vietnam Vinpearl Land opened, turning formerly arid Hon Tre Island into a luxury tourist destination, and symbolizing the rapid growth of tourism in Nha Trang. Vincom listed its shares on the Ho Chi Minh City Stock Exchange with ticker symbol VIC Vingroup became the first real estate company in Vietnam to be selected by Russell Investments for the Russell Global Index Vincom became the first Vietnamese company to issue USD 100 million of convertible bonds on the Singapore Exchange (SGX) Vincom Center Dong Khoi opened in Ho Chi Minh City. The Group commenced pre-sales of apartments in the Royal City project in Hanoi Vinpearl Luxury Nha Trang, a five-star resort, and Vinpearl Golf Nha Trang opened simultaneously. Vinpearl Da Nang Resort & Villas were open Vincom JSC merged with Vinpearl JSC and increased total charter capital to VND 5.5 trillion. The Group began operating under the new name Vingroup Joint Stock Company. Vingroup introduced the Vinmec brand and opened the Vinmec International Hospital in the Times City urban area. Vingroup became a Foundation Member of the World Economic Forum. Vinschool was established and launched education offering ranging from kindergarten through high school. A consortium led by Warburg Pincus, a leading global private equity firm focused on growth capital, invested USD 200 million in a strategic partnership with Vincom Retail. Warburg Pincus invested an additional USD 100 million in Vincom Retail in June 2015, raising the total investment to USD 300 million, while still a minority shareholder. Vincom Mega Mall Royal City opened as Asia s largest underground retail complex. Vingroup successfully issued USD 200 million of international senior unsecured bonds, the first benchmark-sized international bonds issued by a Vietnamese company. The transaction was named Best Vietnam Deal 2013 by Finance Asia and Vietnam Capital Markets Deal of the Year 2013 by IFR Asia Vinhomes Central Park, one of the most modern and luxurious urban areas, broke ground in Ho Chi Minh City. The Landmark 81 Tower had 81 floors and a height of 461 meters, which, upon completion, would become the tallest skyscraper in Vietnam and one of the ten tallest buildings in the world. VinMart and VinMart+ commenced operations. Vinpearl Phu Quoc Resort opened after ten months of construction, setting a new record of completion speed. Almaz International Cuisine and Convention Center launched a state-of-the-art entertainment, culinary, and convention center in Vinhomes Riverside. During the year, we launched new businesses and brands, including: Vinpearl Resort & Villas a new concept combining resorts and beach villas Vinpearl Resort & Golf a combination of hotels and villas with an international standard golf course VinPro electronics and appliance stores VinDS consumer lifestyle specialty stores VinEco safe and clean agricultural produce Vingroup also commenced operations at Vietnam s first and still only wildlife safari park with more than 3,000 animals representing 150 rare species Vingroup introduced the VinCity affordable real estate brand. The Group opened ten new shopping malls to bring the portfolio to a total of 32 malls in 15 cities and provinces throughout Vietnam. The retail network was expanded to 1,000 outlets nationwide. Vingroup introduced the Vingroup Loyalty Program featuring VinID Card, offering additional benefits when using Vingroup s products and services to cardholders. Vingroup raised its hotel room count to more than 6,000 rooms and introduced a high-end city hotel brand, Vinpearl City Hotel, with the opening of Vinpearl City Hotel in Can Tho. Vingroup converted Vinmec and Vinschool into social enterprises and committed to reinvest 100% of profits generated from these two businesses to meet social targets. 20 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

13 CORPORATE PROFILE BUSINESSES CORPORATE PROFILE BUSINESSES BUSINESSES PROPERTY Vinhomes properties include: Hanoi: Vincom Ba Trieu Vinhomes Riverside Vinhomes Royal City Vinhomes Times City Vinhomes Nguyen Chi Thanh Vinhomes Gardenia Ho Chi Minh City: Vinhomes Dong Khoi Vinhomes Central Park Quang Ninh: Vinhomes Dragon Bay Ha Tinh: Vinhomes Ha Tinh VINHOMES PREMIUM APARTMENTS, VILLAS AND SHOPHOUSES units presold 15,000 contract value VND 83 trillion projects managed 10 apartments, villas and shophouses presold during 2016 during 2016 In Hanoi, Ho Chi Minh City, Quang Ninh and Ha Tinh Vinhomes is the leading real estate brand in Vietnam. Vinhomes develops, sells, and manages mixed-use residential real estate projects that target the mid-and high-end market segments. Vinhomes projects are in prime locations in Vietnam s most populous cities and provinces. stores. Vinhomes delivers not only a property but also a modern and high standard living environment in line with its slogan of where happiness dwells. VINHOMES TIMES CITY Vinhomes now operates ten projects with nearly 18,000 apartments, villas, and shophouses. Vinhomes benefits from all of the supporting infrastructure needed to create a successful community. Vinhomes developments include playgrounds, sports centers, year round swimming pools, lounges, Vinschool education services, Vinmec healthcare facilities, Vincom onsite shopping malls and VinCommerce supermarkets, mini-marts and convenience VINCITY AFFORDABLE REAL ESTATE WITH INTEGRATED FACILITIES Vingroup introduced the VinCity brand in 2016 to serve the middle-income segment of the property market in the suburban areas of Hanoi and Ho Chi Minh City, as well as centers of provinces such as Hai Phong, Hung Yen, Thanh Hoa, Ha Tinh, and Khanh Hoa. VinCity projects embrace the values that characterize all Vingroup properties: quality integration facilities. 22 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

14 CORPORATE PROFILE BUSINESSES CORPORATE PROFILE BUSINESSES VINCOM QUALITY SHOPPING MALLS VINCOM OFFICE PREMIUM OFFICE LEASING Vincom Office provides office properties for lease. These properties are located in the heart of major financial and business centers and offer maximum natural light, energy efficiency, and modern, professional working space. Vincom Office includes: Vincom Office Royal City Vincom Office Times City Vincom Office Dong Khoi 32shopping malls Vincom 04 Center 03 Vincom Mega Mall 22 Vincom Plaza million M 03 2 retail gross Vincom+ 01floor area As a premier operator of shopping malls, Vincom Retail owns four distinct brands: Vincom Center, Vincom Mega Mall, Vincom Plaza, and Vincom+. Together, these brands give Vincom a nationwide presence. By seamlessly integrating entertainment, culinary, and retail elements, Vincom offers not only luxury retail malls but also cultural, art, and recreation facilities. By combining these offerings, Vincom sets new standards for shopping and entertainment in Vietnam, and firmly establishes itself as the leading expert in investment and management of retail properties. VINCOM CENTERS A Symbol of Class VINCOM PLAZAS A Family Favorite Vincom Centers bring prestigious domestic and international brands to Vietnam s major cities, with four Vincom Centers in Hanoi and Ho Chi Minh City. VINCOM MEGA MALLS A Symbol of the New Lifestyle Vincom Plazas provide a modern shopping experience in newer cities and in the suburban areas of Hanoi and Ho Chi Minh City. Vincom Retail today operates 22 Vincom Plazas in 14 cities and provinces of Vietnam. VINCOM+ SHOPPING MALLS Transforming Consumer Trends These large-scale shopping malls, located at mixed-use projects and in heavily-populated areas, offer a broad array of shopping options combined with the latest entertainment and restaurant facilities. Today, Vincom operates three Vincom Mega Malls in Hanoi and Ho Chi Minh City. Located in districts and communes with populations greater than 30,000, these malls offer a modern shopping experience and high-quality products for the local population. Vincom Retail has opened three Vincom+ malls in Ho Chi Minh City, Hai Duong, and Dong Nai with dozens of Vincom+ projects under development nationwide. VINCOM PLAZA NGO QUYEN 24 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

15 CORPORATE PROFILE BUSINESSES CORPORATE PROFILE BUSINESSES HOSPITALITY AND ENTERTAINMENT VINPEARL VINPEARL LAND VIETNAM S RECREATION DESTINATION Vinpearl Land is Vingroup s entertainment brand, offering high-quality amusement parks, conservation parks and family entertainment centers. Located in Vingroup s resorts and mixed-use developments throughout the country, these facilities are large-scale complexes comparable to the leading global theme parks. Vinpearl Land facilities include: VIETNAM S VACATION PARADISE Outdoor amusement park: Vinpearl safari and conservation million 4.1visitors Vinpearl Land Nha Trang Vinpearl Land Phu Quoc park: Vinpearl Safari Phu Quoc Indoor entertainment center: Vinpearl Land Times City Over hotels, resorts 09and villas 08 resorts and villas 01 city hotel 02 golf courses 6,000rooms Vinpearl is the market-leading hospitality and tourism brand in Vietnam, including 5-star and 5-star-plus resorts and beach villas throughout Vietnam. Vinpearl now operates four lines: 5-star-plus resorts with the Vinpearl Luxury brand, 5-star resorts with the Vinpearl Resort, Vinpearl Resort & Villas, Vinpearl Resort & Golf brands, urban hotels and condotels with the Vinpearl City Hotel brand, and golf courses with the Vinpearl Golf brand. Vinpearl City Hotels include: Vinpearl Can Tho Hotel Vinpearl Golf includes: Vinpearl Golf Nha Trang Vinpearl Golf Phu Quoc Vinpearl currently operates nine hotels and resorts with a total of more than 6,000 rooms in popular tourist destinations in Vietnam: Ha Long, Da Nang, Nha Trang, Can Tho, and Phu Quoc. 5-star plus resorts include: Vinpearl Luxury Nha Trang 5-star resorts include: Vinpearl Ha Long Bay Resort Vinpearl Da Nang Resort & Villas Vinpearl Nha Trang Resort Vinpearl Nha Trang Bay Resort & Villas Vinpearl Golf Land Resort & Villas (Nha Trang) Vinpearl Phu Quoc Resort Vinpearl Phu Quoc Resort & Golf VINPEARL SAFARI PHU QUOC 26 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

16 CORPORATE PROFILE BUSINESSES CORPORATE PROFILE BUSINESSES CONSUMER RETAIL SOCIAL INFRASTRUCTURE SERVICES VINCOMMERCE 1, million VINMEC LEADING MODERN RETAIL NETWORK retail stores retail purchases QUALITY HEALTHCARE SERVICES VinCommerce is the umbrella brand for the Group s consumer retail offerings VinMart, VinMart+, VinPro, VinDS, and Adayroi. VinCommerce operates a comprehensive and market-leading network of retail stores in all the major retail formats throughout Vietnam, where customers can experience the convenience of modern retail both in brickand-mortar stores and online. VINMART SUPERMARKETS AND VINMART+ MINI-MARTS AND CONVENIENCE STORES ADAYROI 05 international hospitals 02 international clinics 1,200 beds 340 physicians VinMart supermarkets and VinMart+ convenience stores and mini-marts win customers trust by providing high quality products from trusted suppliers and supported by exceptional services. Currently, the Group operates 55 VinMart supermarkets and 843 VinMart+ mini-marts and convenience stores in Hanoi, Ho Chi Minh City, and many other provinces. VINPRO ELECTRONICS AND APPLIANCES STORES VinPro is the Group s retail brand for electronics, smartphones, tablets, laptops and home appliances. Currently, there are 24 VinPro stores located in Vincom shopping malls across the country. VINDS CONSUMER LIFESTYLE SPECIALTY RETAIL STORES VinDS lifestyle retail stores and franchised network serve consumers in four categories: Fashion, Cosmetics, Home and Food. VinDS services middle-income consumers, offering more than 200 brands through 78 stores and franchised locations in Vincom shopping malls throughout Vietnam. Adayroi is Vietnam s leading e-commerce website. Its mission is to bring modern and convenient online shopping to Vietnamese families. Adayroi's distinct advantage is its access to Vingroup s entire ecosystem of products and services. provides diverse products in 13 categories including Food & FMCG, Mobile Phones & Tablets, Household Appliances, Electronics and Technologies, Fashion, Health & Beauty, Mom & Baby, Sports & Outdoors, Books & Stationery, Automobiles & Motorcycles, Services and Vingroup Products & Services. Vinmec is a leading Vietnamese healthcare system that adheres to international standards. It is an established pioneer in applying advanced technology to people s healthcare needs. By employing the most highly skilled medical experts, and by using medical equipment imported from the United States, Canada, Europe, and Japan, Vinmec has grown rapidly in just four years in both quality and its range of services. Vinmec healthcare facilities include: Vinmec Times City International Hospital Vinmec Central Park International Hospital Vinmec Ha Long International Hospital Vinmec Nha Trang International Hospital Vinmec Phu Quoc International Hospital Vinmec Royal City International Clinic Vinmec Saigon International Clinic 28 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

17 CORPORATE PROFILE BUSINESSES CORPORATE PROFILE BUSINESSES VINSCHOOL VINECO HIGH QUALITY K 12 EDUCATION GREEN, CLEAN AND SAFE AGRICULTURE 13,000 students enrolled 10 kindergartens, secondary and high schools 14farms Over 2,000 ha agriculture land Vinschool is a comprehensive educational system of kindergartens, secondary schools, and high schools with the goal of becoming Vietnam s international school system and an incubator of talent. All schools in the Vinschool system are equipped with advanced educational facilities. Vinschool has made substantial investments in highly qualified teachers and progressive curricula. This dynamic environment prepares students to take full advantage of both domestic and international opportunities while remaining grounded in Vietnamese culture and values. Vinschool facilities include: Five Vinschool Kindergartens at Times City Two Vinschool Kindergartens at Royal City Vinschool Kindergarten at Vinhomes Riverside Vinschool Kindergarten at Nguyen Chi Thanh Vinschool Elementary, Secondary, and High School at Times City VinEco was launched in 2015 to provide consumers with a trusted source of clean and safe agricultural produce. VinEco has catalyzed the expansion of sustainable farming. By using the most advanced large-scale greenhouse VinEco collaborates with leading domestic producers technology from Japan and Israel, VinEco has achieved and farming households to diversify its product offerings, VietGAP standard. At the end of 2016, VinEco had 14 enhance productivity, and improve the quality of the farms throughout Vietnam with 2,000 ha of agriculture products it brings to market. land. VinEco products include clean and safe vegetables, fruits, and flowers. 30 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

18 CORPORATE PROFILE CORPORATE STRUCTURE CORPORATE PROFILE CORPORATE STRUCTURE CORPORATE STRUCTURE GENERAL MEETING OF SHAREHOLDERS Vingroup operates four core businesses, under six groups of subsidiary companies structured into six separate profit-and-loss centers (P&L). Subsidiary companies in six businesses retain self-governance capacity, have their own balance sheets, and are accountable for their own business plans and financial performance. The Group's six P&Ls include: Property, Hospitality and Entertainment, Consumer Retail, Healthcare, Education and Agriculture. BOARD OF DIRECTORS CHAIRMAN PHAM NHAT VUONG MANAGEMENT CHIEF EXECUTIVE OFFICER DUONG THI MAI HOA SUPERVISORY BOARD The corporate divisions in Vingroup JSC, the parent company, provide support, supervision, and operational advice to the P&Ls. They also play a leading role in the committees and working groups that meet to assess, monitor, and make decisions regarding the Group and its business units. CORPORATE OFFICE FINANCE DIVISION COMMUNICATION DIVISION PROPETY HOSPITALITY AND ENTERTAINMENT CONSUMER RETAIL HEALTHCARE EDUCATION AGRICULTURE OTHERS LEGAL AND COMPLIANCE DIVISION VINHOMES PROPERTY DEVELOPMENT COMPANIES VINPEARL HOLDING JSC VINCOMMERCE GENERAL COMMERCIAL SERVICES JSC VINMEC INTERNATIONAL GENERAL HOSPITAL JSC VINSCHOOL LLC VINECO AGRICULTURAL INVESMENT DEVELOPMENT AND PRODUCTION LLC VINCOM CONSTRUCTION MANAGEMENT COMPANY EXTERNAL FINANCE DIVISION VINHOMES PROPERTY SALES COMPANIES VINPEARL PROJECT DEVELOPMENT COMPANIES VINMART SUPERMARKETS AND VINMART+ MINI-MARTS AND CONVENIENCE STORES VINMEC HOSPITALS VINACADEMY EDUCATION AND TRAINING LLC VINCOM SECURITY LLC RISK MANAGEMENT DIVISION MANAGEMENT DIVISION CONSTRUCTION SUPERVISORY DIVISION VINCOM RETAIL JSC VINPEARL HOTEL MANAGEMENT COMPANY VINPRO ELECTRONICS AND APPLIANCES STORES VINMEC CLINICS INTERNAL AUDIT DIVISION VINCOM RETAIL NORTH VIETNAM LLC VINPEARL LAND LLC ADAYROI E-COMMERCE INFOMATION TECHNOLOGY DIVISION VINCOM RETAIL SOUTH VIETNAM LLC VINDS SPECIALTY DEPARTMENT STORES SECURITY AND FIRE PREVENTION DIVISION HUMAN RESOURCES DIVISION 32 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

19 CORPORATE PROFILE BOARD OF DIRECTORS CORPORATE PROFILE BOARD OF DIRECTORS BOARD OF DIRECTORS The Board of Directors (the Board ) consists of nine board members. The Board is headed by its Chairman and includes three independent members. Name Position 01 Mr. Pham Nhat Vuong Chairman 02 Ms. Pham Thuy Hang Vice Chairwoman 03 Ms. Pham Thu Huong Vice Chairwoman 04 Mr. Le Khac Hiep Vice Chairman and Independent Board Member 05 Ms. Nguyen Dieu Linh Vice Chairwoman and Authorized Spokesperson 06 Ms. Mai Huong Noi Board Member and Deputy CEO 07 Mr. Joseph Raymond Gagnon Board Member 08 Mr. Marc Villlers Townsend Independent Board Member 09 Mr. Ling Chung Yee Roy Independent Board Member The Board is the Group s policy-making body, with the authority to make decisions and to exercise all rights and responsibilities that do not fall under the jurisdiction of the General Meeting of Shareholders (the GMS ). The Board is also responsible for implementing the decisions of the GMS. Board members MR. PHAM NHAT VUONG MS. PHAM THUY HANG 01 CHAIRMAN VICE CHAIRWOMAN Mr. Pham Nhat Vuong was elected to the Board in 2002 and elected Chairman in He has a long track record as an entrepreneur both inside and outside Vietnam. He established the Group s core businesses, starting with its two initial brands, Vincom and Vinpearl. In 2012, Mr. Vuong was honored as the single billionaire in Vietnam by Forbes and retained the position as the billionaire with the highest net worth in Vietnam in five consecutive years Ms. Pham Thuy Hang was elected to the Board in 2005 and elected Vice Chairwoman in Ms. Pham Thuy Hang is a graduate of Hanoi University with a B.A. degree in Russian Linguistics and Literature. 03 MS. PHAM THU HUONG VICE CHAIRWOMAN Ms. Pham Thu Huong was elected to the Board in She is a graduate of the National University of Kiev (Ukraine) with a B.S. degree in International Law. 04 MR. LE KHAC HIEP VICE CHAIRMAN AND INDEPENDENT BOARD MEMBER Mr. Le Khac Hiep was elected to the Board in He was also Chairman of the Group from 2006 to He was appointed an Independent Member of the Board in From 1994 to 2004, he headed Prudential Real Estate s Vietnam Representative Office before becoming its Deputy General Director for External Relations. Previously, he was a researcher at the Institute of Physics in the Vietnam Academy of Science and Technology from 1984 to Mr. Le Khac Hiep graduated from the National University of Kharkiv (Ukraine) with a Distinguished B.S. degree in Physics. Mr. Le Khac Hiep is responsible for Vingroup s sustainability projects. 05 MS. NGUYEN DIEU LINH VICE CHAIRWOMAN AND AUTHORIZED SPOKESPERSON Ms. Nguyen Dieu Linh has been a member of the Board since 2008 and Deputy CEO of the Group from 2005 to August Prior to joining Vingroup, she was a legal expert with Ngo Migueres & Partners in Hanoi from 1996 to She graduated from Hanoi University with a B.A. degree in English and French. She also received a B.A. in Law from the University of Social Sciences and Humanities. 06 MS. MAI HUONG NOI BOARD MEMBER AND DEPUTY CEO Ms. Mai Huong Noi has been a Board Member since 2008 and Deputy CEO since She was also CEO of the Group from 2006 to Prior to joining Vingroup, she was Deputy Director of the Customer Service Division at Hanoi Post Office from 2004 to Ms. Mai Huong Noi received a B.S degree in Economics and Banking from the National Economics University. 07 Mr. Gagnon was elected to the Board in He is currently a Managing Director at Warburg Pincus Asia and leads its real estate investment business in North Asia. He is also a member of the Board of Directors of Vincom Retail, a subsidiary of Vingroup. He was a Director at Warburg Pincus Asia in Hong Kong from 2008 to 2011 and a Director of Business Development at GE Capital in Tokyo, Japan from 2003 to Mr. Gagnon graduated from Wake Forest University, USA. 08 MR. MARC VILLIERS TOWNSEND INDEPENDENT BOARD MEMBER Mr. Townsend was elected as an Independent Board Member in He was a Managing Director at CB Richard Ellis Vietnam from 2013 to 2017, the General Director of Regus in Southeast Asia from 1998 to 2002 and Vice Director of Marketing and Commerce at Rockwell Real Estate Co. in Manila from 1997 to Mr. Townsend graduated from the University of Montpellier (France) and received a B.S. degree in Accounting from the University of Exeter (UK). He also completed the Program in Management Development at the Asian Institute of Management in Manila in MR. JOSEPH RAYMOND GAGNON BOARD MEMBER PROFESSOR. LING CHUNG YEE ROY INDEPENDENT BOARD MEMBER Professor Ling was elected to the Board in He is currently a Managing Director of RL Capital Management Pte. Ltd. Professor Ling has also served as an independent board director of several listed companies across Asia, and as an Adjunct Professor in Finance at the EDHEC Business School. Prior to RL Capital Management Pte. Ltd., Professor Ling was a senior investment banker with JPMorgan, Lehman Brothers, Goldman Sachs and Salomon Smith Barney. He is a Chartered Financial Analyst and was formerly a Board Director of the CFA Society of Japan. He graduated from INSEAD with a Global EMBA and from the National University of Singapore with a B.B.A. degree. 34 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

20 CORPORATE PROFILE MANAGEMENT CORPORATE PROFILE MANAGEMENT MANAGEMENT Management The Board may elect a Board Member or appoint an outside executive to the position of CEO. The Board also decides on the compensation and employment terms for the CEO. The CEO need not be the Chairperson of the Board. The CEO s term of office is three years, unless otherwise decided by the Board. The CEO may be reappointed to successive terms. 01 MS. DUONG THI MAI HOA CHIEF EXECUTIVE OFFICER 04 DEPUTY MS. NGUYEN THI DIU CEO 2 1 Before becoming the Group s CEO in 2014, Ms. Duong Thi Mai Hoa had more than 20 year of experience in senior leadership positions at multinational corporations. She was the General Director responsible for Corporate Banking at Maritime Bank, General Director of Vietnam International Bank (VIB), Chief Financial Officer of Oracle Vietnam, Chief Accountant at Credit Lyonnais Bank Vietnam, and Head of Financial Planning at VMEP, a subsidiary of Chinfon Vietnam. She got her Master degree in Business Administration, Brussels University, Belgium. Ms. Hoa has been a member of ACCA (Association of Chartered Certified Accountants) since September MS. MAI HUONG NOI BOARD MEMBER AND DEPUTY CEO Further details can be found in Corporate Profile Board of Directors, Page DEPUTY MR. PHAM VAN KHUONG CEO Mr. Pham Van Khuong was appointed Deputy CEO in He has nearly 30 years of experience in construction and industrial technology. From 1996 to 2003, he was the General Director of the Construction and Water Resources Technology Company in the Ministry of Construction. He started his career in 1982 as a design engineer at Vietnam Water, Sanitation, and Environment JSC. He received a B.S. degree in Engineering from Hanoi Architecture University. Ms. Nguyen Thi Diu was appointed Deputy CEO in She served as a Director of Investment Banking Vietnam at UBS from 2013 to From 2008 to 2013, she was the Chairwoman and CEO of AFH Finance and Investment Consultancy JSC. From 1996 to 2008, she was the Chief Representative and Head of Investment Banking at JPMorgan Vietnam. She received her MBA degree in Finance from the University of Hawaii. 05 MS. DUONG THI HOAN DEPUTY CEO Prior to being appointed Deputy CEO in August 2016, Ms. Hoan held the position of the Head of Vingroup Communication Division from 2007 to She was the General Director of Hung Viet Company from 2005 to Ms. Hoan received a B.S from Vietnam University of Commerce and completed her Joint Master of Business and Administration degree between Hanoi National University and Benedictine University of Illinois, USA. 06 MS. NGUYEN THI THU HIEN CHIEF ACCOUNTANT Ms. Nguyen Thi Thu Hien has been Vingroup s Chief Accountant since She was the Chief Financial Officer of Ha Viet Investment JSC from 2005 to 2008 and its Chief Accountant from 2003 to She graduated from Hanoi University of Finance and Accounting with B.A. degree in English from the University of Languages and Foreign Studies. She is also a member of ACCA. 36 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

21 CORPORATE PROFILE SUPERVISORY BOARD CORPORATE PROFILE DEVELOPMENT STRATEGY SUPERVISORY BOARD The Supervisory Board is elected by the GMS. The Supervisory Board has four members including two independent members. Each Supervisory Board member serves for a five-year term. DEVELOPMENT STRATEGY KEY ACHIEVEMENTS Name Position 01 Mr. Nguyen The Anh Head 02 Mr. Dinh Ngoc Lan Member 03 Ms. Dong Thi Hong Van Independent Member 04 Ms. Nguyen Thi Van Trinh Independent Member The responsibility of the Supervisory Board is to inspect the validity and legality of the Group s business activities and financial reports. Supervisory Board members MR. NGUYEN THE ANH 01 HEAD OF THE SUPERVISORY BOARD 03 MR. DINH NGOC LAN MEMBER MS. DO THI HONG VAN INDEPENDENT MEMBER Mr. Nguyen The Anh was elected to the Supervisory Ms. Do Thi Hong Van was elected as an Independent Board in Prior to joining the Supervisory Board, he Member of the Supervisory Board in She is was a Deputy Head of the Corporate Office of the Joint currently the Chief Accountant at Nghe An Sugar Pte. Stock Commercial Bank for Foreign Trade of Vietnam Ltd. (previously known as Tate & Lyle Sugar Nghe An Co. (Vietcombank) from 2005 to 2007 and Assistant to the Ltd.) and was a Financial Controller with Shell Vietnam General Director from 2001 to From 1997 to 2000, Ltd. from 1998 to Ms. Do Thi Hong Van holds he worked at Vietnam Financial Leasing Company and a B.S. degree in Economics and Accounting and is a Vietcombank s Secretariat Office from 1995 to He senior member of ACCA. She is also a licensed auditor received a B.S. degree in Economics and a Master of Political recognized by the Vietnam Association of Certified Public Economics from the National University of Vietnam. Accountants (VACPA) MS. NGUYEN THI VAN TRINH INDEPENDENT MEMBER Mr. Dinh Ngoc Lan was elected to the Supervisory Board Ms. Nguyen Thi Van Trinh was elected as an Independent in Previously, he worked at the State Audit Office Member of the Supervisory Board in She serves as of Vietnam as a Regional Office Deputy Head of Business Managing Director in charge of Commerce and Financial Auditing from 2007 to 2008 and an auditor from 1996 Investment at Asia Star Trading and Investment Pte. Ltd. to Mr. Dinh Ngoc Lan received a B.S. degree in She was previously the Head of Department at Tomen Economics from Vietnam University of Commerce. General Commerce from 1996 to She received a B.S. degree in Economics from the Vietnam University of Foreign Trade and a degree in Executive Administrative Management from the Asian Institute of Technology. Vingroup successfully executed its strategic plan during this five-year period: The Group invested in large-scale mid-to-high-end mixed-use projects in prime locations, expanding its presence throughout Vietnam and increasing consumer awareness of all its brands Vingroup made the quality of its products and services the cornerstone of the Group s brand in order to raise customer satisfaction and establish new consumer trends and preferences The Group expanded, diversified its product offerings and improved its capabilities in sales, leasing, and property management Vingroup improved its corporate governance to adhere to domestic standards and international best practices The Group formed partnerships with leading global organizations in order to grow domestically and to become a regional business leader. Following the global economic slowdown between 2011 and 2013, Vietnam s economy and property market only began to recover during 2014 and Despite unfavorable market conditions, Vingroup had five years of successful results. The Group demonstrated competitive strength and growth potential in every one of its business segments. In the Real Estate segment, Vingroup concentrated on developing large, mixed-use projects in prime locations while simultaneously growing its portfolio of retail assets and increasing retail gross floor area to 883,000 square meters in 22 shopping malls located in cities and provinces throughout Vietnam. The Group s distinctive properties are considered landmarks wherever they are located. Vinpearl and Vinpearl Land continue to build their reputation, becoming the leaders in their categories among both domestic and international visitors. Within the Vingroup ecosystem, consumer retail businesses are a critical component. Despite having entered the market only recently, VinCommerce has made several breakthroughs with a portfolio of retail brands in various sub-segments and nationwide retail coverage. In its Social Infrastructure Services business, Vingroup has made substantial progress in building its healthcare, education, and agricultural operations in pursuit of its mission to create a better life for the Vietnamese people. Vinmec Times City International Hospital became the first hospital in Vietnam to earn accreditation from the Joint Commission International (JCI), an international accreditation organization that promotes standards for patient safety and healthcare quality. After three years of operations, Vinschool has established a reputation for quality and breadth of offerings with its progressive educational philosophy. VinEco has provided consumers with a trusted source of clean and safe vegetables at affordable prices through the extensive retail network of VinMart supermarkets and VinMart+ mini-marts and convenience stores. Improving corporate governance is the purpose of Vingroup s Transform To Succeed project. The focus of this project was the conversion from centralized management to a more decentralized model using independent profit & loss centers. The Group s new management system was designed on the basis of lessons learned from experts such as McKinsey, PwC, and EY, as well as internal studies. This management improvement project identified the systems that were best suited to Vingroup s current portfolio of businesses in order to help the Group to plan for future growth. 38 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

22 CORPORATE PROFILE DEVELOPMENT STRATEGY CORPORATE PROFILE DEVELOPMENT STRATEGY CORPORATE STRATEGY FOR THE PERIOD BUSINESS STRATEGY Over the next five years, Vingroup plans to evolve its business model to grow recurring revenue from consumer retail and service businesses. As a result, the share of its profits derived from property sales will be gradually lowered to less than half of total profits. First, real estate markets tend to exhibit a greater degree of cyclicality, even when there is secular growth due to economic expansion and social urbanization. Vingroup management believes that over-reliance on the property sector may result in higher volatility in revenues and profits, increased cost of financing, and limit long-term business planning. In contrast, the Group s recurring businesses such as shopping mall leasing, hospitality and entertainment, consumer retail and social infrastructure services all tend to be less cyclical and more stable in cash flow generation. By employing this strategy, the Group believes that cash flows from recurring businesses will augment profitability from residential property sales. In parallel, the Group will continue to expand its network of commercial properties, hospitality assets, and consumer retail operations. Collectively, the recurring businesses will be able to establish themselves as the premier brands in their respective industries. produce. The Group will make further investments in its Consumer Retail businesses to improve product quality and raise efficiency, in order to generate higher revenue contribution from this segment. Second, business segments other than residential sales offer the potential to build an ecosystem in which different businesses supplement and reinforce one another to create greater competitive advantage and protect the Group s position in the property segment. This strategy requires development in each business segment as follows: Shopping Malls: Continue to adopt best practices in developing quality shopping malls in order to leverage Vingroup s ecosystem and raise customer satisfaction Develop tailored models for increasing the Group s presence in provinces nationwide, leading the changes in consumer behavior, and capitalizing on the transition from traditional to modern retail channels. Hospitality and Entertainment: Consumer Retail: VinCommerce will continue to expand the scale and footprint of its consumer retail network: VinMart, VinMart+, VinPro, and VinDS. Again, product and service quality will continue to be the focus in order to provide safe and high-quality daily neccessities for a large proportion in our society VinEco s safe and clean vegetables, semi-processed foods, and VinMart s ready-to-cook ingredients will be VinMart s key strategy. At the same time, VinMart will accelerate its partnership and assistance program offered to high-quality Vietnamese brands in order to fast-track their access to customers. Social Infrastructure Services: Vingroup will develop new social infrastructure facilities at all of our residential projects. Our comprehensive investment will include equipment, facilities, expertise, and human resources. In addition, Vingroup will collaborate with well-known global organizations in the fields of healthcare, education, and agriculture in order to deliver best-in-class services to the Vietnamese people. Our investment strategy in core sectors will continue to emphasize the value of the ecosystem, rather than pursuing expansion for its own sake. ADMINISTRATIVE AND HUMAN RESOURCE DEVELOPMENT Vingroup uses Elevate to emphasize the importance of human resources, particularly leaders and managers at the Group s businesses. We promote the best managers who will form the next generation of leaders. Technical and management training, in addition to challenging opportunities, will be offered equally to employees who show promise. Vingroup will regulate existing procedures and deliverable standards, in order to create a lean and more effective organizational structure that will improve productivity. After processes and deliverables are standardized, over time, the Group will be able to automate many procedures using advanced technology to deliver performance breakthroughs. Vingroup will continue to improve the profit & loss governance model in order to promote greater decentralization. P&Ls will operate with support and supervision from the Corporate Office. This support enables Vingroup s ecosystem to continue growing. The Group s internal audit and risk management functions will be active at both the Corporate Office and P&L levels in order to ensure sufficient specialization and close monitoring of business activities. Finally, Vingroup will devote greater resources to cultivating a strong corporate culture, building on the Group s existing values. Management believes that the right strategy, combined with efforts by every member, will allow the Group to maintain its market-leading position while helping the entire market to develop. Vingroup currently owns two of the top brands in commercial property and hospitality: Vincom and Vinpearl. The growth of these two brands, combined with the introduction of new products, will support the strategy outlined above. After just two years of operations, the Group s consumer retail brands VinMart supermarkets, VinMart+ minimarts and convenience stores, VinPro electronics and appliances stores, VinDS specialty stores, and Adayroi e-commerce have established a trusted reputation with VinCommerce retail stores being preferred by consumers for their convenient locations and superior customer care programs, and its supermarkets and convenience stores clearly associated with clean and safe VinEco fresh Vingroup operates a chain of hotels, villas, and condotels at the most popular tourist destinations in Vietnam. Going forward, the Group will enhance service quality to protect existing revenues and to attract new customers Vingroup will penetrate key urban markets with the new Vinpearl City Hotel brand. These internationalstandard hotels will be located in prime locations at socio-economic hubs throughout Vietnam, which are expected to benefit from the nation s rapid urbanization Vinpearl Land will continue to upgrade its recreation equipment and introduce unique entertainment offerings to deliver new experiences that have not previously been available domestically. During 2016, Vingroup began the process of streamlining its management structure, simplifying procedures, balancing the workforce, and placing greater emphasis on results. Looking ahead, Vingroup will refine its management systems by incorporating proven practices and developing new techniques best suited to the Group s unique combination of businesses. In this 5-year period, the group intends to evolve its governance and management structure throught the program Elevate Standardize Simplify Automate. 40 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

23 ANNUAL REPORT 2016 PRESERVING THE START-UP MINDSET VINHOMES ROYAL CITY 1. Tình hình kinh tế vĩ mô năm 2016 và triển vọng kinh tế năm Kết quả hoạt động kinh doanh năm Kế hoạch hoạt động năm

24 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION 2016 ECONOMY AND 2017 OUTLOOK CHAPTER III MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION 2016 ECONOMY AND 2017 OUTLOOK 2016 ECONOMY MACROECONOMIC STABILITY During 2016, the world economy grew at a slower pace than forecast. Global trade expanded less than forecast and markets for goods were weak. Despite the challenging global climate, Vietnam remained among the fastest growing economies in Asia. The Vietnamese economy grew 6.21% in 2016, according to data from the General Statistics Office (GSO). The industrial and construction sector was the biggest driver, recording a 7.57% growth rate, while the effect of natural disasters caused the agriculture, forestry, and fishery sector to grow by only 1.36%, the slowest amongest all sectors. Economic growth in % 6.7% 6.2% 6.0% 5.2% 5.4% Source: GSO Retail sales of goods and services in Trillion VND 13.9% 11.5% 10.4% 9.3% 10.2% 2016 A YEAR OF IMPROVEMENTS IN THE REAL ESTATE, HOSPITALITY, AND RETAIL MARKETS The key factors driving the real estate market in 2016 were macroeconomic stability, rising income per capita of over USD 2,200, and ample bank liquidity. The government and relevant authorities passed several laws that would have lasting impacts on the real estate market. Most notably, the risk weighting for real estate loans was increased from 150% to 200% as of January 1, 2017, according to Circular 06/2016/TT-NHNN issued by the State Bank of Vietnam. Other measures in place to protect real estate buyers include requiring developers to provide bank performance guarantees. Together, these policies help prevent overheating of the real estate market and lay the foundation for a sustainable growth cycle. Credit for homebuyers grew by 14.2% in 2016 according to the Ho Chi Minh City Real Estate Association; at the same time, non-performing loans were limited to 2.6% in This data is also supportive of a robust real estate market. There were significant investments made and high sales transaction volume in the middle- and high-end segments of the major markets, Hanoi and Ho Chi Minh City. The number of apartments available for sale in these two markets was nearly 68,000 units, according to CBRE, most of which were in the middle-to high-end categories. Records were also set in the number of apartments sold, while projects launched by established developers in prime locations with attractive amenities continued to be most sought after. In the hospitality sector, there were major developments. Visa exemptions for certain western European countries and tourism advertisements on modern and traditional channels brought positive results. During 2016, international visitors made more than 10 million visits to Vietnam, an increase of 26% over 2015 and double the number of visits recorded in There were 62 million domestic tourist visits, an increase of 9% over Total 2016 revenue for the tourism sector was estimated at VND 400 trillion, 19% more than that in 2015, according to Vietnam s National Administration of Tourism. Vietnam s consumer retail market also experienced another year of solid growth. Sales of goods and services rose to VND 3.5 quadrillion, 10.2% over 2015, according to the GSO. Vietnam ranked 11 th among developing nations in A.T. Kearney s Global Retail Development Index. This ranking reflects the current low retail market penetration and Vietnam s strong GDP growth, one of the highest of all Southeast Asian nations. The retail sector of Vietnam s economy was also marked by significant merger and acquisition activity, especially transactions led by international investors. 3,527 2,369 2,615 2,916 3, Growth rate Source: GSO Retail sales of goods and services Inflation was at a manageable level of 2.66% for 2016 Economy and 2017 Outlook Vingroup Operations and Financial Performance in 2016 Blueprint for the full year. Exports grew at a robust rate of 8.6%. Credit rose by 16.46%, indicating the availability of growth capital for businesses and signaling improvements in bank profitability. VINPEARL DA NANG RESORT & VILLAS 44 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

25 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION 2016 ECONOMY AND 2017 OUTLOOK MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION VINGROUP OPERATIONS AND FINANCIAL PERFORMANCE IN 2016 MACROECONOMIC OUTLOOK FOR 2017 FORECAST OF CONTINUED MACROECONOMIC STABILITY Vietnam s economy is forecast to grow by 6.43% in 2017 with inflation reaching 3.64% and exports growing by 7.2%, according to forecasts by the Central Institute for Economic Management (CIEM). Overall, continued stable development is expected for Against a backdrop of slowing international economic integration, Vietnam s growth will increasingly depend on domestic demand, as well as on the country s ability to improve its infrastructure. OPPORTUNITIES EMERGING IN NEW SEGMENTS A dynamic year is expected in 2017 for all sectors of the real estate market. High-end villas and apartments in prime locations that are in the final stages of completion should attract strong interest from highincome customers who are ready to buy. For Vingroup, the focus during 2017 will gradually shift toward the mass market, due to rapid urbanization and increasing demand for fully finished housing. In the hospitality sector, service quality will remain the primary differentiator and attraction for tourists. The completion of major projects in Nha Trang and Phu Quoc, as well as other key locations, have offered a variety of new options for visitors considering travel to Vietnam. Tourism growth expectations will also create momentum for the entire hospitality property sector. The consumer retail market is also expected to develop in Over the previous decade, the retail sector grew at an average annual rate of 10%, according to the Ministry of Industry and Trade. However, today, sales from modern grocery retail stores account for only 5% of the total, according to Euromonitor International. This proportion is considerably lower than that in the other countries in the region. Public concern about food safety and origins will continue to be a major driving factor in the trend toward increasing use of modern retail channels, given rising per capita income and increasing public awareness of food safety. VINGROUP OPERATIONS AND FINANCIAL PERFORMANCE IN 2016 BUSINESS PERFORMANCE PROPERTY BUSINESS PERFORMANCE 15,000 VND 300, apartments, villas and shophouses presold during trillion of contracted property sales VinCity apartments in the next five years Vincom shopping malls Vinhomes strengthened its leadership position by launching 24 new projects in 17 provinces. These projects offered a wide range of properties including apartments, villas, shophouses, officetels, condotels, and beach villas. During 2016, the Group reported record contracted sales of VND 83 trillion, an increase of 18% over the prior year. Completed transactions totaled 15,000 units, an increase of 7% over Under existing accounting standards, cash proceeds from residential property sales can only be recognized as revenue after the properties have been delivered to buyers. Therefore, contracted property sales of VND 83 trillion will be recognized over the coming years as the projects in question are completed and handed over. This backlog creates a favorable precursor for the Group s revenue growth in future years. Based on market research and internal sale analyses, Vinhomes has developed a variety of real estate products for investors and customers who intend to purchase a second home. These products include beach villas, condotels, and eco-friendly urban villas. For those looking for class A apartments in central business districts with premium amenities, the Group continued to offer several attractive pipeline projects. In addition to targeting traditional markets in Hanoi and Ho Chi Minh City, Vinhomes also launched a wide range of property projects in other cities and provinces throughout Vietnam. Vinhomes success in sales of urban properties led other developers to approach us for assistance with the distribution and management of their properties. As a result, Vinhomes established an additional business line of distributing and managing Vinhomes-branded products developed by others under our guidelines. The first such relationship was set up with Tan Hoang Minh Group and the Vietnam Technological and Commercial Joint Stock Bank (Techcombank) to develop D. Capitale Tran Duy Hung, a complex of high-end apartments, offices, and retail floors in Hanoi. In addition to expanding the Vinhomes brand, in December of 2016, Vingroup launched the VinCity brand as an affordable real estate brand focused on customers with moderate budgets who are seeking full amenities and supporting infrastructure. Over the next five years, VinCity plans to bring to market approximately 300,000 mid-range apartments. VinCity intends to bring about a major transformation in product quality and availability of supporting services in the mid-range real estate segment. VINCOM RETAIL Vincom Retail expanded its scale and market share in 2016, opening ten new shopping malls, raising the total number of shopping malls in operation to 32 malls and the total gross retail floor area to one million square meters at year-end. Vincom Retail also began construction of nine new malls throughout Vietnam during the year. Even though it continued to expand at a record pace, Vincom Retail managed to maintain service quality, operating efficiency, and high mall occupancy rates. Vincom shopping malls remain the top destinations for the world s leading retail brands. For example, Zara opened its first store in Vietnam at Vincom Center Dong Khoi. Vincom Retail has also completed the renovation and reconfiguration of a number of its older properties, including Vincom Mega Mall Royal City, in order to offer the most modern shopping experience at its malls. 46 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

26 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION VINGROUP OPERATIONS AND FINANCIAL PERFORMANCE IN 2016 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION VINGROUP OPERATIONS AND FINANCIAL PERFORMANCE IN 2016 At the end of 2016, Vincom Retail launched Vincom+, a network of retail centers located in small towns and provinces. This new mall format offers a modern shopping experience in the provincial areas, helping Vingroup to build market share outside major cities. The first Vincom+ mall opened in December of 2016 in Long Thanh, Dong Nai, with more Vincom+ malls under planning and development. HOSPITALITY AND ENTERTAINMENT BUSINESS PERFORMANCE 1.6 million 123% 57% guest nights over the number of guest nights in 2015 foreign visitors cities Hanoi, Ho Chi Minh City, and Da Nang but also in second tier cities and provinces. As of February 2017, the network includes 55 VinMart supermarkets and 843 VinMart+ mini-marts and convenience stores. Going forward, VinMart will expand along with Vincom Plaza shopping malls and Vincom+ centers in all districts and towns throughout Vietnam. VinMart recorded 21.6 million purchases during 2016, and VinMart+ recorded 32.3 million purchases, increases of 52% and 1,149%, respectively, over The vision of VinCommerce is to partner with the Vietnamese business community to enhance domestic Vinpearl Golf Land Resort & Villas in Nha Trang, and Vinpearl City Hotel in Can Tho opened during 2016, increasing total capacity across the hotel network to more than 6,000 rooms. Guest nights occupied were more than 1.6 million, an increase of 123% over Foreign visitors made up 57% of all visitors, of which those from China, Russia and South Korea were the biggest proportion. DEVELOPMENT PROJECT PROGRESS During 2016, Vinpearl commenced construction at a number of large hospitality projects, beach villas and city hotels in Phu Quoc, Nha Trang, Da Nang, Nghe An, Ha Tinh, and Hoi An. Vinpearl Can Tho Hotel opened in December of 2016 with 262 rooms accredited with international five-star standards. This hotel pioneered a new format for Vinpearl hotels, demonstrating our efforts to diversify product offerings and tailor to domestic tourism trends and needs. CONSUMER RETAIL food production and bring to market hygienic food. In 2016, VinCommerce has begun its program of Partnership and Assistance for Vietnamese Products by pledging to collaborate with 250 Vietnamese businesses to develop distribution of Vietnamese products through modern retail channels, and to take part in the production value-chain. BUSINESS PERFORMANCE 1,000 retail outlets DEVELOPMENT PROJECT PROGRESS 56 million retail purchases The hallmarks of Vingroup s growth during 2016 were speed as well as trust from contractors and customers which helped us to meet deadlines and commitments. Key projects such as Vinhomes Central Park and Vinhomes Times City Park Hill were completed on or ahead of schedule. Vinhomes Central Park, a large-scale riverside park covering 15 hectares, created a green oasis in the central business district of Ho Chi Minh City with the largest public space for entertainment and enjoyment of the outdoors in the city center. To further improve service quality, Vinpearl standardized its design and uniforms, operating standards and procedures, and organized extensive training for service staff. With operations adjacent to Vinpearl hotels and resorts, Vinpearl Land amusement parks attracted a total of 4.1 million customer visits, an increase of 19% over After a full year of operation, Vinpearl Safari Phu Quoc has achieved stable operations, and become a popular destination for both Vietnamese and foreign tourists. The growth in visitors has been a boost for many businesses on Phu Quoc Island in Kien Giang province. Consumer Retail is central to Vingroup s strategy to gradually evolve its business model so that a greater contribution is generated by businesses with stable recurring revenue and profit. VinCommerce expanded its network during 2016 to approximately 1,000 stores while improving product and service quality and raising business efficiency. VINMART SUPERMARKETS AND VINMART+ MINI- MARTS AND CONVENIENCE STORES Today VinMart supper market and VinMart+ mini-marts and convenience stores are located not only in major VinCommerce has made relentless efforts to find and select or even create high quality products to bring to market. Examples of such products include the VinEco brand of safe vegetables and fruits, VinMart branded products which have undergone rigorous quality checks, and the prepared or semi-prepared foods sold under the VinMart Cook brand. VinMart Cook foods are prepared in our central kitchen and aim to enrich the quality of family meals in VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

27 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION VINGROUP OPERATIONS AND FINANCIAL PERFORMANCE IN 2016 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION VINGROUP OPERATIONS AND FINANCIAL PERFORMANCE IN % 24 VinPro electronics and appliance stores in the number of purchases at VinPro over VinDS specialty stores 200 brands distributed by VinDS network through VinDS stores. Among these brands are Canifa, BOO, Duc Giang, Nha Be, TNG, Marc, and Hnoss. In addition, VinDS has brought international brands to the Vietnamese market, including Mango, FCUK, DKNY, Reebok, Skechers fashion, Index Living Mall home furniture and appliances, and Lotteria fast food. VinDS aims to provide direct access to popular international brands for local consumers who would otherwise have to pay much more for parallel imports. As of February of 2017, VinDS operated a network of 78 stores, an increase of 59% over its store count in SOCIAL INFRASTRUCTURE SERVICES HEALTHCARE BUSINESS PERFORMANCE 1,200 VND 1.1 hospital beds trillion revenue 600,000 SKUs at Adayroi 42% in revenue over 2015 Vinmec opened two new hospitals during 2016 Vinmec Nha Trang International Hospital and Vinmec Ha Long International Hospital, bringing its total to five hospitals and two clinics in five cities and provinces across Vietnam with over 1,200 hospital beds. Vinmec earned a total revenue of VND 1.1 trillion, an increase of 42% over Vinmec continues to enhance its reputation for superior quality by pioneering new medical solutions. Examples VINPRO ELECTRONICS AND APPLIANCE STORES As of February 2017, VinPro operated 24 electronics and appliance stores in prime locations in Hanoi, Ho Chi Minh City, Da Nang, Viet Tri, Bien Hoa, and Can Tho. Anticipating the emerging e-commerce trend in Vietnam, VinPro launched an online shopping platform, During 2016, VinPro reclassified the categories of products sold in its stores, developed a sales strategy for each category, and discontinued products which did not meet the profitability hurdles. With eight new VinPro stores opened, the number of purchases at VinPro recorded an impressive growth rate of 125% over VINDS CONSUMER LIFESTYLE SPECIALTY STORES ADAYROI E-COMMERCE Vingroup s e-commerce platform, Adayroi, was launched simultaneously in 63 cities and provinces throughout Vietnam on August 15, 2016, marking a significant milestone in the development of online shopping in Vietnam. Adayroi was designed to bring e-commerce to every household in Vietnam, allowing even those in the rural areas to experience an innovative way to shop. It drew 48 million visits in 2016 with a return or exchange rate of only 0.6%, the lowest of all e-commerce platforms in the market. include the Department of Oncology at Vinmec Times City International Hospital, which safely administered immunotherapy to 20 patients, and the Department of Obstetrics and Pediatrics, which successfully treated gastroschisis with an operation performed during the first hour following birth. Following its conversion into a social enterprise, Vinmec promoted its medical research capabilities by establishing the Vinmec Stem Cell and Gene Technology Center with laboratories specializing in stem cells, gene technology, and umbilical cord blood, and a new oncology research center. Vinmec Times City International Hospital has offered eight new medical treatment services including self-immunity, prenatal diagnosis, identification of genetic mutations, and stem cell harvesting and isolation. DEVELOPMENT PROJECT UPDATES Vinmec will continue to expand its hospital network in order to have ten hospitals across Vietnam, plus Vinmec Medical University, by Two new hospitals will be opened in Hai Phong and Da Nang in Vinmec continues to work with leading international professional and educational partners to upgrade its capabilities, standardize its procedures, and develop its technologies in accordance with international standards. Since 2015, VinDS has been operating as a network of stores focusing on four categories of products: Fashion, Cosmetics, Home, and Food. VinDS sells more than 200 local, international and private-label brands. Many quality Vietnamese brands have been introduced to consumers 50 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

28 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION VINGROUP OPERATIONS AND FINANCIAL PERFORMANCE IN 2016 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION VINGROUP OPERATIONS AND FINANCIAL PERFORMANCE IN 2016 EDUCATION AGRICULTURE BUSINESS PERFORMANCE BUSINESS PERFORMANCE 13,000 students 14 farms 33% in the number of students over ha cultivated farm land VND 713 billion revenue >9,600 tons produced in % in revenue over varieties of fruits and vegetables Vinschool is guided by a comprehensive educational philosophy and seeks to provide students with a learning environment based on international standards and delivered at a reasonable cost. The number of students enrolled in Vinschool has reached a total of approximately 13,000, or 33% above the total for Revenue in 2016 reached VND 713 billion, an increase of 39% over Vinschool received a Certificate of Excellence from the Ministry of Education and Training in recognition of its achievements in educational reform for the second consecutive year. Vinschool continued to raise the quality of education it offers by obtaining licenses to offer renowned international education programs such as The Leader in Me, IPC International Kindergarten (exclusively licensed to Vinschool in Vietnam), the Raz-Kids English enrichment program and MOS computer certification. All of these programs help Vinschool students boost their knowledge and capacity for integration into the global economy. In October of 2016, Vingroup announced that Vinschool had been converted into a social enterprise. Profits generated by Vinschool will be reinvested into the network to improve its curriculum, train teachers, and upgrade facilities in order to develop a world class education network in Vietnam. an reno ned interna onal edical and educa onal ins tu ons includin the a o and Cle eland Clinics ar ard ale tanford ni ersi es and ohns op ins Hospital in the United States; Samsung Medical Center and onsei ni ersit in outh orea and eio ni ersit in apan are social enterprises in ec and inschool are oinin this elite roup of ins tu ons in re ec on of ietna s inte ra on into the orld econo his step rea r s the status credibilit and social responsibilit of in roup in par cular and ietna s business co unit in eneral Mr. Marc Villiers Townsend Independent Board Member. DEVELOPMENT PROJECT UPDATES During 2017, Vinschool plans to expand its network alongside Vingroup residential developments, adding to the schools currently under construction. Five new campuses are planned for 2017 openings, three of which are located in Ho Chi Minh City. During 2016, VinEco continued to develop multiple VietGAP accredited areas specializing in the cultivation of vegetables at a scale which is sufficient to apply modern technologies and automated farming, thereby providing hygienic and nutritious agricultural produce to the domestic market. As of early 2017, VinEco is operating 14 farms and two central processing centers with more than 630 hectares of farm land, out of a 2,000 hectare land bank. During 2016, VinEco s production totaled more than 9,600 tons with 325 varieties of fruits and vegetables. During the fourth quarter of 2016, VinEco implemented a partnership with farmers and agricultural cooperatives throughout Vietnam, with an aim to work with 1,000 such partners. The goal of this program is to promote and encourage widespread adoption of hygienic farming practices, thereby raising the quality of the agricultural supply chain. Farmers participating in our contract farming program receive funding, training in new production methods, and technical assistance in order to provide a stable source of safe and healthy vegetable for VinMart supermarkets, VinMart+ mini-marts and convenience stores and Adayroi e-commerce. By year end, VinEco has purchased over 8,000 tons of produce from partner cooperatives and farms. DEVELOPMENT PROJECT UPDATES In order to satisfying growing consumer demand, VinEco partnered with farming households in addition to operating its own farms. VinEco has increased the number of farms in its network, and classified them by product category and region: North, South, and Lam Dong Province. Products that meet VinEco s quality standards are purchased from farms in agreed-upon quantities and at competitive prices applicable to VietGAP vegetables. 52 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

29 MANAGEMENT CHAPTER NAME REPORT HEADLINEON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION VINGROUP OPERATIONS AND FINANCIAL PERFORMANCE IN 2016 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION VINGROUP OPERATIONS AND FINANCIAL PERFORMANCE IN FINANCIAL PERFORMANCE KEY FINANCIAL INDICATORS Indicators 2016 (VND trillion) 2015 (VND trillion) % increase / decrease Current assets % Long-term assets % Total assets % Total liabilities % f hich total debt Owner s equity % Total contracted property sales % Net revenue % Cost of goods sold % Operating profit % Other profit 0.1 (0.7) Profit before tax % Profit after tax % Stock dividend payout (%) 11% ource in roup C audited consolidated financial state ents for and DISCUSSION AND ANALYSIS OF THE BALANCE SHEET AS AT DECEMBER 31, 2016 Current assets rose by VND 19.9 trillion from VND 67.7 trillion in 2015 to VND 87.6 trillion. The increase was largely due to movements in the value of short-term investments, inventories, and short-term accounts receivable. Multiple projects under development by the Group caused inventories to increase in 2016 over the prior-year level. Long-term assets rose by 19% in 2016 over the level in 2015, reaching VND 92.9 trillion as of December 31, Fixed assets, in est ent proper es, and long-term assets in progress all rose due to an increase in the number of operating facilities and investment projects. Fixed assets rose to VND 26.9 trillion at the end of 2016 from VND 19.8 trillion at the end of 2015, due to the robust developments discussed above. During 2016, the value of in est ent proper es increased by VND 534 billion from VND 16.8 trillion to VND 17.3 trillion at the end of 2016 as Vincom Retail expanded its network with the opening of ten new shopping malls nationwide. Long-term assets in progress increased by VND 15.9 trillion to VND 34.0 trillion at the end of 2016, reflecting the large number of projects under construction by the Group during Projects with significant year-end balances included the Can Gio Urban Tourism Project (VND 12.2 trillion), Vinhomes Central Park (VND 3.9 trillion), Vinhomes Metropolis (VND 3.5 trillion) and Vinhomes Imperia (VND 1.1 trillion). otal liabili es reached VND trillion at the end of 2016 compared with VND trillion at the end of 2015, an increase of VND 27.2 trillion. The Group launched and presold several residential projects, and received a large amount of prepayment proceeds. Pre-sale contracts reached a total value of approximately VND 83 trillion at the end of 2016, 18% higher than the comparable figure at the end of This figure is recognized in advances from customers, which will be recognized as revenue once the projects have been completed and delivered during the coming years. Total debt of the Group increased by VND 2.8 trillion from VND 36.9 trillion at the end of 2015 to VND 39.8 trillion at the end of Short-term debt increased by VND 4.2 trillion, an increase of 292%. This increase reflected the portion of bonds approaching maturity. Non-current debt including loans and convertible bonds decreased by VND 1.3 trillion, a drop of 4%, as bondholders converted bonds to shares during The Group s debt structure is comprised of corporate bonds (69%), bank loans (14%), and other syndicated loans (17%). At the end of 2016, the average debt maturity was 2.95 years. The ratio of VND-denominated debt to total debt was 81.4%, a slight increase from 80.6% in The ratio of total debt to total assets declined to 22% at the end of 2016 from 25% at the end of Both ratios are well within the range for real estate companies in the region. ners e uit increased by 20% from VND 37.6 trillion at the end of 2015 to VND 45.3 trillion at the end of The Group paid a stock dividend of 11% and issued bonus shares of 22.5%. Non-controlling interests also increased by 27% to VND 18.4 trillion at the end of 2016 as a result of additonal capital contribution by minority shareholders, mergers and acquisitions completed, and additional profit distributed to non-controlling shareholders during VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

30 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION VINGROUP OPERATIONS AND FINANCIAL PERFORMANCE IN 2016 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION VINGROUP OPERATIONS AND FINANCIAL PERFORMANCE IN 2016 DISCUSSION AND ANALYSIS OF THE INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2016 NET REVENUE ANALYSIS KEY FINANCIAL RATIO Indicators Item Value (VND trillion) Percentage (%) Value (VND trillion) Percentage (%) Liquidity ratio (times) Current ratio: Current assets/current liabilities Quick ratio: (Current assets Inventories)/Current liabilities Sale of inventory property % % Leasing activities and rendering related services % % Hotel, amusement park, and related services % % Hospital and related services % % Sale of goods in supermarkets, convenience stores, and retail outlets % % Education % % Other services % % Total % % ource in roup C audited consolidated financial state ents for and Capital structure (times) Total liabilities1/total assets Total liabilities/owners equity Leverage (times) Debt ratio: Total debt/total assets Operating capacity (times) Asset turnover: Net revenue/total assets Inventory turnover: Cost of goods sold/inventories Profitability (times) Profit after tax/net revenue Net revenue increased by VND 23.6 trillion from 2015 to 2016, an increase of 69%. Revenue increased in all business segments, particularly the sale of inventory property. Consumer retail and other business segments also grew, due to the stronger presence of the entire Vingroup network. Revenue from the sale of inventory property grew by 76% from VND 21.2 trillion in 2015 to VND 37.3 trillion in Revenue growth from the sale of inventory property reflected the delivery of completed projects to customers in Hanoi and Ho Chi Minh City, including Vinhomes Times City Park Hill, Vinhomes Central Park, beach villas in Nha Trang and Phu Quoc, shophouses in Vinhomes Gardenia and other projectthroughout Vietnam. Revenue from leasing activities and related services rose by 25% from VND 2.7 trillion in 2015 to VND 3.3 trillion in The increase reflects the Group s expanding retail mall network across the country. Vingroup currently owns and operates 32 shopping malls and shopping centers in four different mall formats. Revenue from providing hotel, amusement park, and related services rose to VND 4.3 trillion in 2016, an increase of 49%, reflecting a surge in visitors and expansion of capacity to more than 6,000 hotel rooms across the nation. Revenue from consumer retail (or sale of goods in supermarkets, convenience stores, and retail outlets) increased by 115% from VND 4.3 trillion in 2015 to VND 9.2 trillion in 2016 due to an increase in the number of retail stores from 706 to 1,000. Retail revenue per square meter also rose meaningfully as VinMart and VinPro gained customers mind share. ther profit was VND 70 billion in 2016, comprising primarily gains from transfer of development rights in The impact of foreign exchange fluctuations on the Group s financial conditions is small, because the USD-VND exchange rate was stable throughout the year, and our USD borrowing cost was also at the lowest level historically. The development of Vingroup s entire ecosystem has grown profit a er ta from VND 1.5 trillion in 2015 to VND 3.5 trillion in 2016, an increase of 134% over the previous year and 17% above the target set at the 2016 GMS. Return on Equity: Profit after tax/equity Return on Assets: Profit after tax/total assets Operating income/net revenue Operating income/total assets otal liabili es include a ounts pa able to suppliers deposits fro custo ers and borro in s iabili es also include the proceeds fro contracted sales paid b custo ers for proper es under construc on hese pa ents are reco ni ed as re enues hen the proper es ha e been deli ered to custo ers The Group s li uidit ra os for the year ended December 31, 2016 declined as short-term liabilities rose faster than ra o, total debt to total assets, continued to fall, from 0.25 times in 2015 to 0.22 times in short-term assets. The current ra o fell from 1.04 times to 0.90 times, and the uic ra o decreased from 0.61 times to 0.39 times. hort ter liabili es rose as proceeds from contracted sales of projects under construction and paid for by customers increased. All profitability measures improved in 2016 reflecting an increase in after-tax profits, due mainly to the completion of large projects including Vinhomes Times City Park Hill and Vinhomes Central Park. Capital structure ra os also increased during 2016, due to larger advances from customers. However, the leverage 56 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

31 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION VINGROUP OPERATIONS AND FINANCIAL PERFORMANCE IN 2016 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION BLUEPRINT FOR 2017 FEATURED PROJECTS Vinhomes Gardenia is located in the My Dinh vicinity of Hanoi, with total project area of more than 17 hectares and comprising more than 2,000 apartments, 350 villas, and shophouses. Inspired by the purest jasminum grandiflorum, Vinhomes Gardenia is intended to promote the theme of green harmony thanks to concepts VINHOMES GARDENIA developed by two world-renowned design firms, CPG from Singapore and West Green Design from Canada. Delivery of homes to buyers began in December of VINHOMES SKYLAKE VINHOMES GOLDEN RIVER VINCOM CENTER PHAM NGOC THACH VINPEARL CAN THO HOTEL Vinhomes Skylake is located at the intersection of two major roads in Hanoi Pham Hung and Duong Dinh Nghe, facing the Cau Giay Reservoir Park. The 2.3 hectare development benefits from the adjacent 32-hectare public park. Vinhomes Skylake s design embraces a blue theme reminiscent of the abundant reservoir water. The project is expected to be completed during the second quarter of Vinhomes Golden River is the only project located between the two bridges, Thu Thiem 1 and Thu Thiem 2, connecting the City s administrative center in District 1 with the future administrative center in Thu Thiem, District 2, across the river. Metro Line No. 1 from Ben Thanh station to Suoi Tien station runs underground and along the project. The Ba Son station is located just beneath the central square of Vinhomes Golden River providing residents, office workers and shoppers at the project with easy access to other locations in the city. The project spans an area of 25.3 hectares and comprises more than 2,500 apartments and 63 villas. Vincom Center Pham Ngoc Thach is located at a major intersection of Dong Da District in Hanoi, featuring nearly 27,000 square meters of retail gross floor area over eight floors and three basement floors. The mall offers four main sections: shopping, entertainment, culinary, and health and beauty. It has been in operation since November of 2016 with approximately 100 shops showcasing popular domestic and international brands. Vinpearl Can Tho Hotel, located at the Ninh Kieu Wharf, forms part of a large-scale commercial complex in the Mekong Delta, featuring a shopping mall, shophouses and a hotel. The project is the first of the new Vinpearl City hotels. The hotel opened in December of 2016 offering 262 rooms of five-star international standards, the first of its kind in Can Tho. BLUEPRINT FOR 2017 BUSINESS STRATEGY PROPERTY To continue to lead the property market, Vinhomes will emphasize its competitive strengths, including delivery speed, product quality, and customer service. Vingroup will also begin work on affordable real estate projects under the VinCity brand. VinCity will leverage its development strengths to improve customers quality of life with modern style and more amenities, pioneering a new trend for the affordable segment. In the commercial real estate segment, Vincom Retail will continue to open new shopping malls throughout the country. The Group expects to open approximately 30 new shopping malls and centers during Our retail strategy is to focus on developing Vincom Plaza and Vincom+ malls in provinces and cities. At the same time, to serve the mid to high-end customer segments, Vincom Retail will work hand in hand with Vietnamese brands, while also enabling well-known international retailers to enter the Vietnamese market through our extensive network. HOSPITALITY AND ENTERTAINMENT During 2017, Vinpearl will continue to extend its lead in hotels and resorts in important tourist attractions and commercial locations throughout the country. In addition, Vinpearl will promote the development of its villa products, creating a resort trend in beach villas. Vinpearl s goal is to increase its domestic market share and expand its overseas customer base through targeted cooperation with local and foreign travel agents. In the entertainment business segment, Vinpearl Land plans to maintain its leadership position by diversifying available options at Vinpearl Land Nha Trang. Examples of new attractions include the Garden of Eden, Open Zoos, and the Ocean Circle, 200 meters above sea level. Vinpearl Land will also introduce mascot characters that are appealing, easy to remember, and closely relatable to the most popular games at our parks. 58 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

32 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION BLUEPRINT FOR 2017 MANAGEMENT REPORT ON 2016 BUSINESS PERFORMANCE AND 2017 PLAN OF ACTION BLUEPRINT FOR 2017 CONSUMER RETAIL VinMart will expand in 2017 by adding around 30 supermarkets, mostly in provinces with the best retail potential. VinMart+ aims to reach approximately 2,000 stores, while VinPro will also add about 30 new stores nationwide. In order to meet the demand for hygienic foods and maintain its leadership in product quality, VinMart and VinMart+ will continue to add fresh and prepared foods under the VinMart Cook brand, which adopts a strictly controlled and isolated process from production to processing. Adayroi e-commerce will expand its capabilities in delivery and customer service to promote the Vingroup ecosystem of products and services. Adayroi will set up logistics and after-sales hubs at each VinMart supermarket in 30 provinces throughout the nation. Adayroi also plans to launch a shopping application for smartphone users to improve the customer experience and enable greater outreach to consumers. PLANS FOR BUSINESS DEVELOPMENT AND HUMAN RESOURCES IN 2017 SOCIAL INFRASTRUCTURE SERVICES As Vietnam continues its rapid economic development, the need for quality-of-life improvements in health and education is urgent. Vingroup has prepared an action plan for its social infrastructure services segment in 2017 as follows: Vinmec will open two international general hospitals in 2017, one in Da Nang and one in Hai Phong. These openings will bring the total to nine hospitals, one research institute, and a medical university. Vinmec s vision is to be at the forefront of medical care in Vietnam. To realize this vision, Vinmec will invest and open research centers in oncology, cardiovascular services, organ transplants, gene therapies, and stem cells. Vinschool will open five new campuses during 2017, including three in Ho Chi Minh City, cementing its position as the largest educational institution in Vietnam. In addition, Vinschool will launch the Cambridge international bilingual program in its primary to high school classes in order to prepare students with the language and social skills they need to succeed. VinEco plans to increase production from its own farms and contract farming participants in In order to do so, VinEco will expand production capacity in 30 provinces to correspond with each major consumption zone, expand its supply chain, and provide training and consultation to assist its production partners will also be a year of foundation building for VinEco, as it looks to export highvalue products to attractive foreign markets including Japan, Korea, Europe, and the Middle East. To achieve its business goals, and to fulfill its initiative of "Elevate Standardize Simplify Automate", Vingroup aims to build a streamlined, versatile, and flexible management system. All business activities will be covered by detailed and logical action plans to achieve the highest effectiveness. The Group will promote management control through strategic planning and budgeting. All employees will be motivated to achieve personalized goals with appropriate incentives which are also in line with promoting sustainable development. To modernize the operations of each P&L, in 2017, Vingroup will deploy a single ERP system SAP for all P&Ls. In addition, all IT resources will be centralized into a single center to provide IT infrastructure support for the entire Group. This step will make best use of the Group s human resources and ensure the highest quality of IT services. BUSINESS ACTIVITIES Vingroup will continue to increase recurring revenue as a proportion of the Group s profits. At the same time, Vingroup will accelerate the refinement of operational processes and standards to uptier the quality of products and services during a period of rapid growth. CAPITAL AND INVESTMENT Vingroup will diversify its sources of capital both domestically and internationally, and match availability of capital in the short-term, medium-term, and long-term with appropriate uses. RESOURCE MANAGEMENT AND CORPORATE CULTURE-BUILDING The Group will promote the role of leaders while building its leadership pool from within. During 2017, Management plans to improve the material and spiritual life of employees so that Vingroup will become the Common Home for all of its team members. 60 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

33 ANNUAL REPORT 2016 PRESERVING THE START-UP MINDSET VINCOMMERCE SPIRIT

34 CORPORATE GOVERNANCE VINGROUP GOVERNANCE STRUCTURE CORPORATE GOVERNANCE VINGROUP GOVERNANCE STRUCTURE CHAPTER IV CORPORATE GOVERNANCE Vingroup Governance Structure 64 Report of the Board of Directors Report of the Supervisory Board Governance Report Internal Audit Report Risk Management VINGROUP GOVERNANCE STRUCTURE Vingroup periodically undertakes improvements in its corporate governance in order to provide a solid foundation for stable business growth. The Group also complies with both the Vingroup Management Code of Conduct issued in 2013 and other international standards. The Group has received the endorsement of the business community, investors, and management experts for outstanding corporate governance, as well as national and international awards for its 2015 annual report. In recent years, Vingroup launched a number of initiatives to strengthen its management and governance procedures. These initiatives were aimed at applying best practices in accordance with the Group s core values and aligning individual total compensation with business results. ROLE OF THE MANAGEMENT SYSTEMS IN VINGROUP S DEVELOPMENT Vingroup has identified corporate governance as a critical success factor in achieving sustainable growth and profitability. The Group has issued an internal management code of conduct describing the requirements for professional and transparent management of operations. The code of conduct is designed to balance and protect the interests of shareholders, customers, employees, and the community. CORE VALUES OF VINGROUP S MANAGEMENT MODELS Vingroup s governance structure has been developed based on the following core values: ec eness Transparency Vingroup believes that an effective management system enables the organization to promote its core values, control business operations, and delegate responsibilities among its various business units. The Group constantly looks for ways to realize the synergies among the various business units and P&Ls help meet its business goals. PRINCIPLES OF THE MANAGEMENT CODE OF CONDUCT PROVIDE TRANSPARENT OPERATIONS MAINTAIN AN EFFECTIVE MANAGEMENT STRUCTURE VINGROUP S MANAGEMENT CODE OF CONDUCT PREVENT CONFLICTS AMONG CONCERNED PARTIES PROTECT THE LEGAL RIGHTS AND ENSURE EQUAL TREATMENT OF ALL SHAREHOLDERS VINGROUP MANAGEMENT AND GOVERNANCE STRUCTURE Further details can be found in Corporate Profile Corporate tructure Pa e The Vingroup management and governance system follows standard international practices for publicly listed companies and includes a General Meeting of Shareholders, a Board of Directors, a Supervisory Board, a Chief Executive Officer (CEO), along with functional units and representatives of the Parent Company in the Group s subsidiaries (the independent profit-and-loss centers, or P&Ls ). Vingroup s management and governance structure is used for both the Parent Company Vingroup JSC and the P&Ls. The components of the Vingroup management structure are described below The General Meeting of Shareholders ( GMS ) has the highest level of authority within Vingroup and includes all shareholders with voting rights. The GMS determines key governance structures and has power to appoint members of the Board of Directors and Supervisory Board. The Board of Directors ( Board ) is the Group s management body, elected by the GMS and entrusted with the authority to make business decisions for the Group, and exercise rights and responsibilities that do not fall within the jurisdiction of the GMS. The Board consists of nine members, with three independent directors to ensure transparency and in accordance with prevailing laws and international standards. The Board does not have special committees because the functions of supervision and risk management are already assigned to dedicated Divisions in the Corporate Office. These Divisions supervise the operations of the business units and are empowered to take control of operational units as needed. The Board establishes standards for investment, divestiture, large corporate borrowings, and the issuance of stocks and bonds. Management is authorized to make decisions on those matters and transactions whose value fall below the Board approval thresholds as prescribed in the Charter of Vingroup JSC and can exercise rights and responsibilities that do not fall within the jurisdiction of the Board. The Supervisory Board is responsible for carrying out duties assigned by the GMS and for monitoring the business performance, management and operations of the Group. The Supervisory Board is elected by the GMS and works independently from the Board and Management. Management includes the CEO and Deputy CEOs who are appointed by the Board of Directors. The CEO is the legal representative of the Group and has the highest authority in managing the daily operations of the Group. Management is responsible for overseeing the Group s business operations by managing and supervising the heads of Divisions in the Corporate Office and the senior executives at each P&L. The Corporate Office is the body charged with supporting the Board, the CEO, and Management in formulating the Group s business strategies and directions. The Corporate Office also carries out such functions as brand-building, budgeting, capital allocation, fund raising, mergers and acquisitions, investments all aimed at maximizing benefits for shareholders. Key corporate management functions assigned to the Corporate Office include internal auditing, setting information technology management policies business development and project management. The P&Ls are responsible for implementing Group decisions, resolving issues not reserved under the jurisdiction of Management and the Corporate Office, running the day-to-day operations of the business units, and reporting to the Group as required and requested. The P&Ls are also responsible for escalating issues to the Group on matters that affect shareholder interests. Share Information and Investor Relations 79 Fairness Accountability tract fro Pro ision o in roup ana e ent Code of Conduct issued on u ust 64 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

35 CORPORATE GOVERNANCE VINGROUP GOVERNANCE STRUCTURE CORPORATE GOVERNANCE REPORT OF THE BOARD OF DIRECTORS Relationship between the Corporate Office and P&Ls / Affiliates Relationships between the Corporate Office and the business units are managed in accordance with the Enterprise Law, the Charter, Management Code of Conduct, other prevailing laws and Vingroup regulations. Vingroup effects decisions by exercising its rights as shareholders in the P&Ls. When projects require coordination between multiple business units, they are managed under the terms of Vingroup s responsibility matrix based on the RASCI framework (Recommender, Approver, Supporter, Consultant, and Informed). This framework is used to clarify responsibility, facilitate cooperation and promote transparency. Mechanism for coordination between the Corporate Office and the P&Ls Vingroup's business units are directed to cooperate with each other for mutual long-term benefit under arm s length principles. The Corporate Office also sets policies and guidelines to ensure that business units work with each other and with the Parent Company to utilize resources efficiently and leverage their individual strengths. REPORT OF THE BOARD OF DIRECTORS EVALUATION OF THE BOARD OF DIRECTORS ON MANAGEMENT AND BUSINESS PERFORMANCE IN 2016 APPROACH In compliance with provisions in the Group Charter, internal regulations and prevailing law, the Board has completed the following governance and supervision activities during 2016: Supervised capital-raising exercises to finance project development Successfully organized the Annual General Meeting ( AGM ) on April 22, 2016 Ensured the 2015 Financial report, Annual report and the quarterly financial reports provided a timely and comprehensive update of the Group s business performance and financial state on the reporting date Supervised the implementation of GMS and Board resolutions Maintained oversight on activities in order to improve operational performance and meet business targets Supervised the disclosure of information to stakeholders REPORT and profit after tax for 2016 were VND 57.6 trillion and VND 3.5 trillion, respectively, representing 28.0% and 17.1% in excess of the budget approved by the AGM. In 2016, Vingroup s contracted property sales reached a record level of VND 83.0 trillion. Contracted sales will be recorded as revenue and profit once properties are delivered. Multi-sector business operations in different locations and rapid expansion led to the increase in the total number of employees as well as the complexity and diversity of the work. Therefore, by complying with the Management Code of Conduct, streamlining business operation and opening new business units based on existing human capital and infrastructure, Vingroup has successfully maintained efficiency and stability in its business operations. This reflects significant contribution from Management, leaders and managers of the Group. In 2016, Vingroup continues to maintain its leadership in contributions to the community and has launched many charitable activities such as building schools for children in remote and mountainous areas, supporting poor families in areas impacted by storms and floods, and giving New Year s presents to households in need and families with war heroes and invalids, and prodiving healthcare services and general support to the poor. In 2016, the Board believes that the Group and Management have put in a lot of efforts in organizing and launching business operations, and maintaining good corporate governance practices. Business performance exceeded the planned levels. In particular, net revenue 66 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

36 CORPORATE GOVERNANCE REPORT OF THE BOARD OF DIRECTORS CORPORATE GOVERNANCE REPORT OF THE BOARD OF DIRECTORS ACTIVITIES OF THE BOARD OF DIRECTORS DURING 2016 BOARD MEETINGS AND THE PROMULGATION OF THE GROUP S MAJOR DECISIONS During 2016, the Board held a total of 14 meetings with a member participation rate of 100%. The Board issued 41 resolutions, approving important policies that impacted the Group s operations and prospects. The resolutions can be summarized as follows: Content Number of resolutions Reorganizing the corporate management and operational structure, establishing the P&Ls, making executive appointments at the Group and P&L levels Fund raising, issuance of corporate bonds, pledging of assets 4 Investment approval and changes to construction schedules of development projects 7 22 procedures in order to increase productivity and efficiency. Third, to foster a learning culture, organize training programs aimed at nurturing the next generation of Vingroup leaders, and make training a core element of the Group s development strategy. Fourth, to grow the Vingroup Family with an emphasis on improving physical well-being and morale for all employees so that the Group becomes the Common Home for all members. The fifth and final principle is to examine and apply technologies that will bring about breakthroughs in business operations and governance. This governance revolution calls for fundamental changes in perspectives for each employee, which is a challenging undertaking for those that are accustomed to the old methods. However, if successful, the new philosophy will enable Vingroup to continue achieving breakthroughs in performance. PARTICIPATION OF BOARD MEMBERS IN CORPORATE GOVERNANCE PROGRAMS During 2016, members of the Board (except for the three members who are located overseas) attended all seminars and training sessions on corporate management and governance. Increasing charter capital by paying share dividends and converting the international convertible bonds into equity, and issuance of shares from retained earnings 8 Total 41 CORPORATE MANAGEMENT AND GOVERNANCE PLANS FOR 2017 In 2016, Vingroup achieved initial successes in streamlining its operational structure. To continue with the momentum, the Board determines 2017 to be the year of governance reform with the Elevate Standardize Simplify Automate project. Elevate signifies that human resources are the key element of corporate operations. This principle is at the heart of Vingroup s approach to corporate governance. The Group s advanced human resources system is built on the basis of QUALITY, professionalism, and efficiency. Vingroup executives are actively involved in promoting the Group s philosophy of dare to take risks and accept responsibility. The Group s managers are expected to assume greater responsibility and are required to deliver tangible results. To reinforce this philosophy, Management has created training programs to ensure that all employees are committed to the Group s long-term goals. Standardize Simplify Automate This governance philosophy is the system by which all Group standards are established and reinforced. The Group as a whole and each P&L are encouraged to automate administrative processes and to maximize collaboration in business processes, whether in hotels, hospitals, or supermarkets. The Standardize Simplify Automate approach is expected to make management processes more coherent and effective. In addition, a systematic database of information and procedures will be put in place as a result of the exercise, which will support the Group s expansion in operational scale. During 2017, the Board identified five principles that guide our governance. These principles are, first, to build a solid foundation for sustainable growth, by maintaining a growth rate consistent with the capabilities of the Group in order to focus single-mindedly on quality of products and services. Second, to simplify operational 68 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

37 CORPORATE GOVERNANCE REPORT OF THE SUPERVISORY BOARD CORPORATE GOVERNANCE REPORT OF THE SUPERVISORY BOARD REPORT OF THE SUPERVISORY BOARD ACTIVITIES OF THE SUPERVISORY BOARD DURING 2016 Date Number of Content Result attendees May 18, /4 Evaluated and reviewed the implementation of resolutions issued by the Board during the second quarter. The findings indicated that the relevant Divisions and businesses had carried out the resolutions correctly. Reviewed the implementation of information disclosure regarding organizational restructuring of P&Ls. During 2016, the Supervisory Board collaborated closely with the Board and Management. The Supervisory Board frequently monitored resolutions issued by the Board, Assessed financial investments and advised the Board and Management on ways to minimize risk and maximize returns Evaluated the investment report of new real estate projects in Can Tho. The investment report was in compliance with relevant regulations. decisions by Management and audits conducted by the Internal Audit Division. It helped to ensure that resolutions were issued and implemented in compliance with legal regulations and the internal policies of the Group. Ensured accuracy of quarterly and annual financial statements in accordance with Vietnamese Accounting Standards and current fiscal policies July 4, /4 Discussed the internal supervision plan for the last six months of Evaluated the implementation of projects and proposed supervision plan for the last six months of The Supervisory Board carried out these functions during 2016: Supervised and evaluated execution of business plans and progress of achieving revenue targets Supervised implementation of 2016 AGM s resolutions covering dividends, increasing charter capital, business operations and organization of the Group and the P&Ls Ensured compliance with laws and regulations on information disclosure Reviewed and evaluated key related-party transactions. The Supervisory Board has not reported any unusual changes in business, investment, or finance during During 2016, the Supervisory Board held four quarterly meetings and several additional meetings as follows: September 14, /4 Evaluated and reviewed the implementation of resolutions issued by the Board during the third quarter. Collaborated with the relevant Divisions to review and resolve issues regarding the transformation of Vinmec and Vinschool into social enterprises. The findings indicated that the relevant Divisions and businesses had carried out the resolutions correctly. The transformation does not affect Vingroup s strategy in the healthcare and education segments, as well as Vingroup s development strategy and service quality of these brands. Date Number of attendees Content Result In 2016, the Supervisory Board worked with the Legal and Compliance Division, the Finance Division and the Chief Financial Officers of certain P&Ls regarding specific legal and financial matters. March 20, /4 Reviewed and approved the issuance of corporate bonds during the first quarter. Reviewed Management s resolution presented to the Board for increase in the charter capital. Reviewed the audited financial statements in The issuance of corporate bonds complied with Decree No. 90/2011/ND-CP on the issuance of corporate bonds, as well as laws and regulations applicable to publicly listed companies regarding information disclosure. The resolutions have been properly executed and the financial statements were accurately prepared in accordance with the standards. In addition to these quarterly meetings, the Supervisory Board attended several meetings of the Board and Management to monitor and ensure compliance with relevant regulations and the Vingroup Code of management PLAN OF ACTION OF THE SUPERVISORY BOARD During 2017, the Supervisory Board will continue to carry out its mandated functions and responsibilities with a strong focus on increasing overall compliance and transparency. Examine the implementation of AGM and Board resolutions and decisions Review quarterly and annual financial statements of the Group and those P&Ls that accounted for a high proportion of the Group s net revenue and expenses for accuracy and completeness Advise the Board on ways to increase capital efficiency and improve asset utilization Monitor the suitability and legality of the Group s business activities Coordinate activities among the Supervisory Board, the Board, Management, and the business segments to conduct regular and ad hoc inspections of specific businesses issues. 70 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

38 CORPORATE GOVERNANCE GOVERNANCE REPORT CORPORATE GOVERNANCE GOVERNANCE REPORT GOVERNANCE REPORT 2016 GOVERNANCE REPORT During 2016, Vingroup remained in full compliance with regulations on corporate governance. The Group disclosed to investors and stakeholders all information on business operations within the required time period and in a transparent manner. After achieving a positive outcome from the 2015 restructuring, Vingroup continued to streamline its administrative processes and optimize resource allocation in order to maximize contributions, and enhance the supervisory functions of the Board, as well as ensure a system-wide implementation of the principles and fortify the relationships between the Group and related parties. Vingroup s Investor Relations function strives to provide transparent information to shareholders and investors. Further details can be found in Corporate o ernance hare nfor a on and n estor ela ons Pa e Vingroup is one of the few enterprises to issue financial reports in line with Vietnamese Accounting Standards (VAS) and International Financial Reporting Standards (IFRS). The financial reports of the Group and its P&Ls are audited by Ernst & Young Vietnam Ltd. COMPENSATION FOR MEMBERS OF THE BOARD, SUPERVISORY BOARD, AND MANAGEMENT Company telephone: Members of the Board, the Supervisory Board and Management are supplied with a mobile phone with services plus reimbursement for usage costs. Discounts when using Group services: Members of the Board, the Supervisory Board, and Management receive discounts for certain Group products and services. Such discounts are applicable for services at Vinmec International Hospitals, Vinpearl Hotels and Resorts, Vinpearl Land amusement parks, and Vinschool. VinID Cards are also given to members of the Board, the Supervisory Board, and Management so that they can earn loyalty points when using Group services. Business-related expenses: Actual expenses for business trips are reimbursed for members of the Board, Supervisory Board, and Management as follows: Business class tickets for air, rail, water or road travel both domestically and internationally Group hotels for business-related travel, or 4- or 5-star hotels if Group hotels are not available CHANGES IN THE LIST OF RELATED PARTIES OF A PUBLIC COMPANY Ms. Duong Thi Hoan was appointed as a member of Management on August 29, Mr. Dang Thanh Thuy and Ms. Vu Tuyet Hang, previously members of Management, are no longer on the list following their resignation on August 29, INSIDER AND RELATED PARTY TRANSACTIONS Further details can be found in Consolidated Financial tate ents ote Pa e REMUNERATION POLICIES Remuneration for members of the Board, the Supervisory Board, and Management complies with regulations on compensation, incentives, and operating expenses prescribed in the Group s Charter. Remuneration is further approved periodically by the AGM and complies with applicable laws. REMUNERATION FOR MEMBERS OF THE BOARD, THE SUPERVISORY BOARD, AND MANAGEMENT During 2016, there were nine members of the Board and four members of the Supervisory Board. One member resigned from the Board in April of The AGM in April 2016 set the amount of remuneration for members of the Board and the Supervisory Board as a percentage of the Group s after-tax profit: Remuneration of the Board may not exceed 0.4% of 2016 after-tax profit Remuneration of the Supervisory Board may not exceed 0.1% of 2016 after-tax profit remunerations of the Board and the Supervisory Board were VND 8.5 billion and VND 1.7 billion, respectively. These amounts were equal to 0.24% and 0.05%, of 2016 after-tax profit, respectively. Members of Management received salaries and incentives based on their employment contracts, and did not receive any other form of remuneration. Other benefits for members of the Board, the Supervisory Board, and Management Regular health check-up: Full reimbursement is provided for the actual cost of annual health examinations at any Vinmec International Hospital or another medical facility selected by the Group. Health insurance: In addition to social and medical insurance required by law, members of the Board, the Supervisory Board and Management and their immediate families are provided with health insurance. Other business expenses are reimbursed based on actual costs. CHANGES IN MEMBERSHIP OF THE BOARD, THE SUPERVISORY BOARD, AND MANAGEMENT Ms. Vu Tuyet Hang, a member of the Board, resigned on April 22, Three members of Management, Ms. Nguyen Dieu Linh, Mr. Dang Thanh Thuy and Ms. Vu Tuyet Hang, resigned on August 29, Ms. Duong Thi Hoan was appointed as a member of Management on August 29, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

39 CORPORATE GOVERNANCE INTERNAL AUDIT REPORT CORPORATE GOVERNANCE RISK MANAGEMENT INTERNAL AUDIT REPORT RISK MANAGEMENT During 2016, the Internal Audit Division reviewed and evaluated the business and compliance activities of the Corporate Office and the P&Ls, as described below. Inspected and evaluated the quality of products sold to customers, focusing on strict control of food safety and hygiene. Also evaluated customer service to ensure full compliance with the law and terms of sale Followed up on customer feedback and suggestions for improvements in service Monitored relationships between the P&Ls and their vendors to ensure that business partners were treated with fairness, transparency, timeliness and in the spirit of mutual benefit Inspected work environments, employee compensation and benefits, training programs, and evaluated incentives and employee development opportunities Coordinated with Vincom Security to control fire and explosion risks at all business locations to oversee network security, data security, updates to the dataroom, and the maintenance of IT systems throughout the Group Evaluated returns on the Group s assets by benchmarking financial metrics for the Group s business segments against those at other leading regional companies in the same industries Coordinated with the Finance Division to evaluate the adequacy, reliability, timeliness, and transparency of financial and non-financial information in each P&L in order to provide maximum support for the Corporate Office. The Internal Audit Division stays current on relevant developments in audit practices, serving as an independent, specialized organization to monitor business operations and the financial condition of the P&Ls. During 2017, the Internal Audit Division will strengthen its advisory role to provide greater assistance to the P&Ls in achieving their targets. THE AIMS OF RISK MANAGEMENT Vingroup has built a risk management framework in accordance with international rules and standards (ISO 31000), while ensuring that it is suitable to the Group s corporate structure and the business environment in Vietnam. Risk management at Vingroup is based on the following principles: A comprehensive risk management framework, We will establish a common language in order to coupled with effective risk management tools, should strengthen the risk management culture at Vingroup. support the Group s business development strategies The Group recognizes that risk management is not only Risk management should identify risks in a timely manner and help maximize the outcome of favorable opportunities about threats but also about opportunities. Therefore, risk management is not risk minimization at all costs, but is about optimizing the correlation between risks and opportunities, and accepting risks within a pre-defined Vingroup will clearly allocate responsibilities and ownership in risk management and establish regular risk appetite. Vingroup is prepared to take risks in a prudent manner for justifiable business rationales. supervision and reporting mechanisms RISK MANAGEMENT STRUCTURE The model of risk management used at Vingroup is constructed with three lines of defense in order to ensure the independence and objectiveness of the Risk Management Division. Together with the Legal and Compliance Division, evaluated adherence to all legal and administrative requirements Coordinated with the Information Technology Division 1 THE FIRST LINE OF 2 DEFENSE THE SECOND LINE 3 OF DEFENSE THE THIRD LINE OF DEFENSE Is responsible for risk ownership and management in its operations. The first line of defense includes the CEO, Divisions of the Corporate Office and the lines of business. Is responsible for building policies, procedures and risk management tools, supporting the implementation of risk management activities at the Corporate Office and P&Ls. The second line of defense consists of the Board and the Risk Management Division. Is responsible for assessing the effectiveness and efficiency of risk management activities in the Group. The third line of defense is the Internal Audit Division. 74 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

40 CORPORATE GOVERNANCE RISK MANAGEMENT CORPORATE GOVERNANCE RISK MANAGEMENT Based on the three lines of defense, the risk management responsibilities are assigned to the Board, Management and the Divisions as follows: Responsible Party Risk management responsibility Board of Directors Issues regulations, strategies and policies on risk management, The model of risk management operates throughout the Group, from the Parent Company to P&Ls, to ensure coherent and continuous management of risk. RISK MANAGEMENT PROCESS The Group uses a risk management process consisting of six components. This process provides a logical and systematic approach to identify, analyze, assess the level of severity, formulate the risk mitigation measures, monitor and review, and communicate risks to provide information for Management to use for decision-making and timely response to both risks and opportunities. This risk management system is constructed based on the principles and guidelines of ISO standards as well as best risk management practices in the industry. The CEO and Head of the Risk Management Division submit risk management policies to the Board for approval at least annually, and the major risk factors of the Group are reviewed and assessed at least quarterly. The first component of risk management is to identify all of the risks that may affect the Group s goals, including the sources and potential impacts of all risk factors. Each business area is studied in detail to identify risk factors and the Group s risk portfolio is regularly updated. The sources, impacts and likelihood of each risk factor are analyzed both quantitatively and qualitatively. and determines the organization structure, functions and responsibilities of the risk management system. CEO Supervises and ensures that risk management activities are carried The Risk Management Division, Internal Audit Division, and Risk Management departments at the P&Ls 1 IDENTIFY 2 ANALYZE RISKS out in line with strategies and policies on risk management. Coordinate with other Divisions to manage risks with approved tools, limits, procedures appropriate for the Corporate Office and P&Ls. 3 All risk factors are ranked and weighed based on quantitative and qualitative pre-determined criteria. 4 PRIORITIZE RISKS FORMULATE RISK MITIGATION MEASURES RISKS Risk mitigation strategies and plans are identified. Then, risk management measures are assessed and implemented to capture opportunities while offsetting the negative impacts of each identified risk factor. 5 MONITOR AND REVIEW 6 RISKS Risk mitigation measures are continuously monitored to ensure that they remain relevant and effective, in order to improve the Group s risk profile where possible, to adopt new and appropriate mitigation techniques, if needed, and to forecast and respond to risk events, if any. Vingroup continued to strengthen its risk management systems throughout the year. During significant transactions, periods of market volatility, and changes in the legal environment, the Corporate Office and P&Ls consult the Risk Management, Legal and Compliance, Finance, External Finance Divisions in accordance with procedures set up for timely assessment and resolution. During 2016, the Group frequently arranged seminars to disseminate information about risks and legal developments for all members of Management and staff. The risks described in the following paragraphs were identified as having material potential implications on the Group s operations, and have therefore been monitored and controlled. In the property business, performance tends to fluctuate with macroeconomic conditions. Important macroeconomic factors include growth rates, inflation, credit growth, exchange rates, consumer indexes, savings rates, investments, and unemployment rates. All of these factors can influence Vingroup s operations and results. The Group frequently diversifies its real estate products. An example is its recent participation in the development of affordable housing. This category is less affected by economic fluctuations than the mid- and high-end market segments. Specialized divisions monitor the macroeconomic environment and consult with Management and P&Ls to forecast future trends and their potential impact on business developments. This analysis helps Management to prepare appropriate strategies and policies. Risks and risk management processes are widely communicated with employees to raise awareness and vigilance. Risk owners solicit and consider the opinions of the various parties involved to ensure that all stakeholders are fully aware of the role and responsibility of risk management. RISK MANAGEMENT ACTIVITIES IN MACROECONOMIC RISKS 2 FINANCIAL Financial risks for Vingroup include risks related to liquidity, interest rates and foreign currencies. Quarterly, the Finance and External Finance Divisions assess conditions in the capital and financial markets to proactively manage the debt portfolio and other commitments of the Group. The Finance and External Finance Divisions consult with local and External banking and finance experts to propose and implement risk management solutions, such as using derivatives, especially ahead of large transactions or transactions in foreign currencies. In order to manage liquidity risks, Vingroup actively manages our debt maturity profile and ensures that cashflows are carefully controlled. 3 COMPETITION COMMUNICATE RISKS RISKS RISKS Vingroup s real estate, leasing, and consumer retail businesses are highly competitive. Competitors include multinational groups and domestic rivals offering products similar to Vingroup s. To respond, the Group innovates frequently to launch attractive new products of high quality. Vingroup s loyalty program, VinID Card, has succeeded in attracting 1.9 million cardholders by the end of The loyalty program joins together Vingroup s ecosystem of products and services, enhancing value for customers and positioning Vingroup ahead of the competition. 76 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

41 CORPORATE GOVERNANCE RISK MANAGEMENT CORPORATE GOVERNANCE SHARE PRICE INFORMATION AND INVESTOR RELATIONS 4 INVESTMENT RISKS 7 ENVIRONMENTAL RISKS Investments in new projects are implemented based on Construction projects may cause air, noise, or water business strategies that are defined at the beginning of pollution. Large-scale mixed-use projects may impact the year. Every investment has to be financially viable their ecological, economic, and social environments. compared to the average cost of capital of the relevant The Group pays close attention to the potential P&Ls, or be important to the Group s strategy. Before an environmental impact of each project. All projects investment is made in a new project, risks such as market, undertaken by Vingroup undergo rigorous social and legal, licensing, tax or operational risks have to be carefully environmental analyses before development begins. The assessed, and mitigating solutions proposed if necessary. Group also follows the strictest standards in design and The Group frequently consults with financial, legal and tax material selection in all projects. advisers and follows rigorous due diligence and mergers & acquisitions processes for potential acquisitions. SHARE PRICE INFORMATION AND INVESTOR RELATIONS VINGROUP SHARE PRICES DURING 2016 Ticker: VIC Outstanding shares (as at December 31, 2016): 2,637,707,954 shares Market capitalization (as at December 31, 2016): VND trillion 5 PROJECT DEVELOPMENT RISKS Share price (*) Date Price (VND) Trading volume Date Volume ( 000 shares) Vingroup maintains a thorough project management system comprising several components for budgeting, cost management, quality control, regulatory compliance and speed of execution. There are stringent procedures to select well-qualified vendors for projects based on criteria such as experience and reputation. We also emphasize close supervision of our contractors. Senior executives in the Construction Supervisory Division are experienced practitioners from the design and engineering industries, well-equipped to evaluate the quality of external contractors. Closing December 31, ,000 Closing December 31, High September 27, ,950 High March 18, ,451 Low February 29, ,430 Low June 9, Average volume-weighted price (**) 38,368 Average daily volume 899 Closin prices are ad usted for share di idend pa ent at the ra o of and issuance of shares to e is n shareholders at the ra o of era e price as ei hted b the nu ber of shares traded in each tradin session ource o Chi inh toc chan e and Bloo ber 6 PERSONNEL RISKS There is a shortage of experienced managers in the domestic labor market, particularly in senior roles. The Group s compensation framework is competitive and is based on results, rather than seniority, to attract and motivate talent. Vingroup has successfully created a strong cultural environment, turning the Group into a Common Home for all employees as a way to promote long-term commitments. These steps are aimed at building a leadership pipeline and strong management bench to support the Group s growth plans. On a regular basis, Vingroup organizes large-scale training programs for its employees. In addition, the Group emphasizes developing younger employees to prepare them for future roles as managers share price performance 35% 25% 15% 5% -5% -15% The price of Brent crude oil fell to a 14-year low of USD per barrel Stock price fluctuations Brexit the United Kingdom voted to withdraw from the European Union January February March April May June July August September October November December VIC VN Index Donald Trump was elected president of the United States Stock price (VND) 45,000 40,000 35,000 30, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

42 CORPORATE GOVERNANCE SHARE PRICE INFORMATION AND INVESTOR RELATIONS CORPORATE GOVERNANCE SHARE PRICE INFORMATION AND INVESTOR RELATIONS Vingroup s share price moved in tandem with the VN-Index during the first six months of 2016, but was sometimes more volatile than the Index between late March and late May. Despite unfavorable developments, including the US Federal Reserve Bank s delay of a rate hike, the Brexit vote, and a slowing of Vietnam s growth rate, the stock market rallied. During this period, the Group received three Asia Pacific Property Awards, announced our business strategy for 2016 with robust sales and the launch of several shopping malls and shophouse projects in Hanoi, Ho Chi Minh City and other provinces. Shareholder structure (As at December 31, 2016) During July and August, the VN-Index fell 7% and followed by VIC. During the last four months of 2016, both the VN- Index and VIC remained flat. At year-end, the VIC share price was VND 42,000, an increase of 20% over the price on January 4, History of charter capital increase ( ) Capital Capital before Capital after the Time of mobilized from Transaction Recipients the issuance issuance (VND issuance the issuance (VND 000) 000) (VND 000) 2012 Share swap Existing shareholders 3,911,498,930 1,582,334,120 5,493,833,050 Stock dividend Existing shareholders 5,493,833,050 1,510,787,500 7,004,620,550 Issuance of bonus shares Existing shareholders 7,004,620,550 2,276,481,600 9,281,102, Conversion of international International 9,281,102,150 6,966,640 9,288,068,790 bonds convertible bondholders Share swap Existing shareholders 9,288,068,790 7,968,000 9,296,036, Conversion of international International 9,296,036, ,201,960 10,018,238,750 No Shareholder Number of shares held Ownership percentage (%) Number of shareholders bonds convertible bondholders Stock dividend Existing shareholders 10,018,238, ,201,960 14,545,550,980 1 Founding shareholder 10,025, Domestic 10,025, Foreign Significant shareholders (holding above 5%) 1,604,145, Domestic 1,604,145, Foreign Other shareholders 1,023,537, , Conversion of international International bonds convertible bondholders 14,545,550, ,690,630 14,918,241,610 Stock dividend Existing shareholders 14,918,241,610 3,763,639,260 18,681,880, Conversion of international International bonds convertible bondholders 18,681,880, ,667,640 19,398,548,510 Stock dividend Existing shareholders 19,398,548,510 2,133,799,410 21,532,347,920 Issuance of bonus shares Existing shareholders 21,532,347,920 4,884,731,620 26,377,079,540 Domestic 754,175, ,446 Foreign 269,361, Total 2,637,707, ,281 Dividend payment history ( ) Domestic shareholders 2,368,346, ,449 Foreign shareholders 269,361, Significant shareholders holding over 5% (As at December 31, 2016) Name Number of shares held Ownership percentage (%) Vietnam Investment Group JSC 880,175, Mr. Pham Nhat Vuong 723,969, Total 1,604,145, Dividend year (%) Form of payment Time of payment Share Cash Share Share Share Share Share 2016 Trading of treasury shares during the year None. 80 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

43 CORPORATE GOVERNANCE SHARE PRICE INFORMATION AND INVESTOR RELATIONS CORPORATE GOVERNANCE SHARE PRICE INFORMATION AND INVESTOR RELATIONS Bond issuances in 2016 Transactions by insiders in 2016 Bond Number of issuance Type of bond Currency Bond value (VND billion) 5- and 10-year tenor 2 Domestic VND 3,000 Name Relationship with insiders Number of shares held prior to the transaction Number of shares held after the transaction Rationale 3-year tenor 1 Domestic VND 3,900 3-year tenor 1 Domestic VND 750 Shares (%) Shares (%) Bonds listed in foreign markets None. Insider holdings (As at December 31, 2016) Foreign Trade Concrete JSC Ms. Mai Huong Noi is a Board Member of Foreign Trade Concrete JSC 0 0 3,000 0,00 Buying of shares Title Name Position Number of shares held Ownership percentage(%) (shares) Board of Directors Mr. Pham Nhat Vuong Chairman 723,969, Foreign Trade Concrete JSC Ms. Mai Huong Noi is a Board Member of Foreign Trade Concrete JSC 3, Selling of shares Ms. Pham Thuy Hang Vice Chairwoman 83,372, Ms. Pham Thu Huong Vice Chairwoman 124,840, Ms. Be Thi Thuan Mother of a Board Member 54, , Selling of shares Mr. Le Khac Hiep Vice Chairman and Independent Board Member 0 0 Ms. Nguyen Dieu Linh Vice Chairwoman 191, Ms. Mai Huong Noi Board Member and Deputy CEO 0 0 Mr. Joseph Raymond Gagnon Board Member 0 0 Mr. Marc Villlers Townsend Independent Board Member 0 0 Mr. Ling Chung Yee Roy Independent Board Member 0 0 Management Ms. Duong Thi Mai Hoa CEO 0 0 Vietnam Investment Group JSC Mr. Pham Nhat Vuong owns more than 10% charter capital of Vietnam Investment Group JSC 308,150, ,175, Deemed buying of shares via corporate merger and contribution to charter capital with VIC shares Ms. Mai Huong Noi Board Member and Deputy CEO 0 0 Mr. Pham Van Khuong Deputy CEO 1,555, Ms. Nguyen Thi Diu Deputy CEO 0 0 Ms. Duong Thi Hoan Deputy CEO Ms. Nguyen Thi Thu Hien Chief Accountant Supervisory Board Mr. Nguyen The Anh Head of the Supervisory Board 10, Mr. Dinh Ngoc Lan Member of the Supervisory Board 1, Ms. Nguyen Thi Van Trinh Member of the Supervisory Board 0 0 Ms. Do Thi Hong Van Member of the Supervisory Board 0 0 Total 933,941, % 82 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

44 CORPORATE GOVERNANCE SHARE PRICE INFORMATION AND INVESTOR RELATIONS CORPORATE GOVERNANCE SHARE PRICE INFORMATION AND INVESTOR RELATIONS SHAREHOLDER AND INVESTOR RELATIONS ACTIVITIES IN 2016 Vingroup maintains an active investor relations program to handle inquiries, disclose information, and manage communications with shareholders, investors, analysts, and other interested parties. The Group is committed to fair treatment of all shareholders, whether domestic or foreign, institutional or individual. Through its official website, the Group provides timely and accurate information to shareholders and members of the general public. Information is released in Vietnamese and English simultaneously. Investor presentations as well as news and financial releases are regularly updated and may be viewed and downloaded from the website under the Shareholder Relations section. US, and include hundreds of investors with an interest in Vingroup. The fifth annual Vingroup Tour took place in November of 2016 and included more than 60 investment funds and securities firms. The number of meetings held reflects growing interest in the Group and in our new projects in Ho Chi Minh City, Phu Quoc, and other cities and provinces throughout Vietnam. Vingroup s investor relations programs and annual reports have been recognized with several well-respected awards. Further details can be found in in roup in and Chair an s essa e itles and ards Pa es 2016 INVESTOR RELATIONS CALENDAR Time Conference Location Quarter I Credit Suisse 7 th Annual ASEAN Investor Conference Singapore Credit Suisse Asia Frontier Markets Conference New York VietCapital Vietnam Access Day Conference Ho Chi Minh City Quarter II 2016 Annual General Meeting Hanoi Maybank Kim Eng ASEAN Investor Conference Hong Kong UBS LVMC Conference Bangkok Quarter I 2016 Investor Call Hanoi Quarter III HOSE Daiwa Vietnam Corporate Day Singapore The Economist Vietnam Summit 2016 Ho Chi Minh City In addition to the AGM, quarterly conference calls and investor meetings following the release of financial results, Vingroup also hosts regular briefings, meetings, and site visits to keep investors and shareholders updated on the Group s projects, as well as financial and operational results. Many investor events provide access to members of the Group s senior management, who respond to questions about strategy and operations. During 2016, Vingroup held 120 such events including meetings, conference calls, and site visits. The Group also took part in conferences organized by leading financial institutions and bulge-bracket investment banks. These conferences were held in both domestic and overseas locations such as Singapore, Thailand, the UK, and the During 2017, Vingroup s Investor Relations Department, a part of the External Finance Division, plans an even greater number of events for investors. We continue to strive to respond promptly to all investor and analyst inquiries. Investor Relations can be contacted via at ir@vingroup.net. Quarter II 2016 Investor Call Hanoi, Ho Chi Minh City Quarter IV Vingroup Tour 2016 Ho Chi Minh City, Phu Quoc Quarter III 2016 Investor Meeting Hanoi FINANCIAL CALENDAR Financial year ending December 31, MAY 2016 JULY 2016 Release of Quarter I, 2016 Financial Statements Release of Quarter II, 2016 Financial Statements OCTOBER 2016 Release of Quarter III, 2016 Financial Statements FEBRUARY 2017 Release of Quarter IV, 2016 Financial Statements 22 APRIL Annual General Meeting JUNE 2016 SEPTEMBER 2016 Ex-dividend date, stock dividend with payout ratio 1,000 : 110 Ex-dividend date, bonus share issuance from retained earnings, issuance ratio 1,000 : 225 Financial year ending December 31, 2017 APRIL 2017 Proposed release of Quarter I, 2017 Financial Statements JULY 2017 Proposed release of Quarter II, 2017 Financial Statements OCTOBER 2017 Proposed release of Quarter III, 2017 Financial Statements Vietnam Access Day Viet Capital Securities Company Vingroup Tour 2016 Phu Quoc JANUARY 2018 Proposed release of Quarter IV, 2017 Financial Statements 84 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

45 ANNUAL REPORT 2016 PRESERVING THE START-UP MINDSET

46 SUSTAINABLE DEVELOPMENT SUSTAINABILITY BY THE NUMBERS AND 2016 HIGHLIGHTS SUSTAINABLE DEVELOPMENT SUSTAINABILITY BY THE NUMBERS AND 2016 HIGHLIGHTS SUSTAINABILITY BY THE NUMBERS 2016 HIGHLIGHTS CHAPTER V SUSTAINABLE DEVELOPMENT Sustainability by the Numbers and 2016 Highlights Vingroup s Vision for Sustainability Managing Sustainability 2016 Sustainability Report TOP 10 Sustainable Companies 1,000 Partnership with 1,000 agricultural cooperatives and farming households to grow clean and safe fruits and vegetables 1,500 Heifers donated to poor families TOP 10 Ranked among the Top Ten Employers USD 50 MILLION Allocated to human resources training and development for Vinmec HOURS P.A. Average annual training hours for managers 92.2 HOURS P.A. Average annual training hours for non-manager employees 42 Schools and boarding facilities created for students in mountain and border districts > 36,000 Followers in the internal social network VinClub 2 MILLION Page views in VinClub 1,400 New homes built by the Kind Heart Foundation for poor families in 32 provinces 123,000 More than 123,000 Lunar New Year gifts provided to lowincome families in 62 provinces 142 Successful surgeries provided free to lowincome people and war veterans 250 Partnership with 250 businesses to promote domestic food and consumer goods production 200,000 Grocery orders delivered by Adayroi with bio-degradable and environmentallyfriendly packages 1 Vingroup announced in September of 2016 that Vinmec and Vinschool would be converted into social enteprises with a non-profit business model in order to improve the quality of healthcare and education services in Vietnam. Vingroup allocated 100% of the profit from Vinmec and Vinschool to upgrading and further developing these two networks. The Group also decided not to recover its investments in Vinmec and Vinschool. These investments total over VND 4 trillion, including facilities, equipment, human resources, licenses, and technology transfers. VINGROUP ADOPTED A NON- PROFIT MODEL FOR VINMEC AND VINSCHOOL Vingroup also plans to invest approximately VND 5 trillion in establishing Vinmec Medical University and International VinUniversity. Both institutions will be operated on a non-profit basis. For corpora ons and businesses around the orld the ost important reason for doing so is that the conglomerates ant to i e bac to societ and contribu n to i pro in the health of the countr is one of the best a s to do so he con lo erates brin financial resources but ust as i portantl con lo erates brin e per se fro their other businesses to enable the hospitals to be run even more e cientl he e cienc is cri cal so that ore people can benefit fro the hospitals in roup con er n in ec into a not for profit or ani a on is an i portant strate ic o e that is in line ith lobal prac ce his puts in ec in a ood posi on to focus on its e ission of brin in ualit healthcare to the ietna ese people across all of ietna Dr. Jeremy Lim MBBS, MPH, MRCS (Edin), MMed (Surg), FAMS Partner, Head of the Health and Life Sciences Practice, Asia-Pacific, Oliver Wyman. 2 THE KIND HEART FOUNDATION S TEN-YEAR JOURNEY The Kind Heart Foundation is a non-profit affiliate of Vingroup. The Foundation carries out humanitarian and philanthropic projects, using contributions from Vingroup members to aid the community in the most efficient manner. The Foundation was established on October 3, 2006 and has been financed by Vingroup and its executives. Kind Heart has carried out many practical projects and action programs while keeping its focus on assistance to low-income families, the families 88 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

47 SUSTAINABLE DEVELOPMENT SUSTAINABILITY BY THE NUMBERS AND 2016 HIGHLIGHTS SUSTAINABLE DEVELOPMENT SUSTAINABILITY BY THE NUMBERS AND 2016 HIGHLIGHTS of war veterans, students from poor backgrounds, people affected by natural disasters, and communities in need of healthcare, education and cultural facilities. The Foundation has been honored with a Certificate of Merit from the Prime Minister and many other Certificates of Merit, Memorial Badges, Letters of Gratitude, Certificates of Recognition by Ministries, central government and local officials. This recognition indicates the high esteem in which the Foundation is held as one of the most trusted philanthropic institutions in Vietnam. he Pro ra ai s to pro ote do es c produc on thereb contribu n to the distribu on of safe food supplies and ualit consu er co odi es to the ar ets at the sa e e build na onal brands ith a ision to ards interna onal brands Par cularl uided b the ission to create a better life for the Vietnamese people the Pro ra focuses its priorit on safe foods his represents in roup s co it ent and de o on to protec n public health and the future of enera ons to co e produce safe and clean fruits and vegetables, cater to regional specialties, and be VietGAP compliant. By the end of 2016, VinEco had signed cooperation agreements under this project with 250 agricultural cooperatives and households producing mushroom, other vegetables, rice, and fruits. Mr. Le Khac Hiep Vice Chairman and Independent Board Member. 6 THE GROUP INITIATES VARIOUS WELFARE PROGRAMS FOR EMPLOYEES The Group believes that the living standards of its employees are of great importance. During 2016, Vingroup initiated a number of new policies to support employees. 3 COOPERATION AGREEMENTS WITH NEARLY 250 VIETNAMESE BUSINESSES On June 1, 2016, Vingroup held a signing ceremony to mark the Group s cooperation with nearly 250 businesses covering seven basic commodities from 18 provinces and cities across the country under a program named Partnership and Assistance for Domestic Production. Under this program, Vingroup and several of its subsidiaries companies VinCommerce, Vincom Retail, and VinDS assist Vietnamese businesses in improving their production and distribution efficiency, quality control procedures and market presence. Businesses that receive distribution support through VinMart supermarkets and VinMart+ mini-marts and convenience stores have committed to providing the market with high-quality products that meet statutory standards and market needs. 4 Edurun VINGROUP PARTNERED WITH 1,000 AGRICULTURAL COOPERATIVES AND FARMERS TO SUPPLY CLEAN AND SAFE FRUITS AND VEGETABLES Following the Partnership and Assistance for Domestic Production initiative, on September 1, 2016, Vingroup launched an initiative to partner with and assist agricultural cooperatives and farming households to promote the supply of clean and safe agricultural produce, in an effort to stimulate a modern, professional and efficient approach to faming. The program works with 1,000 agricultural cooperatives and farming households with a budget of VND 300 billion for its first year of operation. In order to qualify for the program, cooperatives and households must have at least one hectare of farm land, commit to 5 EDURUN 2016: OVER 10,000 COMPETITORS RAISED FUNDS FOR THE CONSTRUCTION OF SCHOOLS FOR POOR STUDENTS IN QUANG TRI PROVINCE is an annual running competition organized by Vinschool to raise money for the construction of school facilities in poor regions. An Edurun event was held on March 27, 2016 at the Vinhomes Riverside Ecological Area in the Long Bien District of Hanoi. Participants included more than 10,000 students, parents, contributors, and representatives from local and international organizations. The 2016 event raised over VND 2 billion. The Edurun event also received media coverage from the Loving Leaves Program of VTV24 News Center, Vietnam Television (VTV). Funds raised in Edurun 2016 were used to build schools for poor children in Dakrong district of Quang Tri province. These programs include Vinmec Health Group s health insurance program for employees, scholarships for children of employees who are top students, preferential housing programs for employees working in Phu Quoc, and interest-free loans sponsored by the Sharing Foundation. 7 PROMOTION FUND FOR VIETNAMESE FOOTBALL TALENT (PVF) SCORED BOTH DOMESTIC AND INTERNATIONAL SUCCESS During 2016, the Promotion Fund for Vietnamese Football Talent (PVF) supported by Vingroup continued 90 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

48 SUSTAINABLE DEVELOPMENT SUSTAINABILITY BY THE NUMBERS AND 2016 HIGHLIGHTS SUSTAINABLE DEVELOPMENT VINGROUP S VISION FOR SUSTAINABILITY to enjoy both local and international success in training members of the Vietnamese professional football teams, and positively raised the profile of Vietnam s youth football in the international arena. Five of PVF s players on the U19 (under 19 years old) team were key contributors to the team s victories and helped secure a place in the 2017 FIFA U20 World Cup tournament in South Korea. This will be Vietnam s first participation in world youth football. Six of PVF s players helped Vietnam s U16 team reach the quarter finals of the 2016 U16 Championship. here is so ethin unpolished but full of passion in Phi nh s novel approach to the performance art Duong Thu a veteran song writer, gushed after watching he ast u er i ht VINGROUP S VISION FOR SUSTAINABILITY Vingroup believes that business efficiency requires a company to deliver sustained, long-term value to stakeholders. Not only do we aim to succeed in all of our business segments, the Group contributes to positive development in its environment and community through practical and concrete efforts. Guided by this vision, Vingroup established the golden rules of its culture, using these rules as benchmarks against which the effort of every Vingroup employee can be measured. 8 VINTALENT FOUNDATION SUPPORTED SEVERAL TALENTED YOUTH PROGRAM NATIONWIDE The Foundation for the Support and Development of Vietnamese Talent, VinTalent, was estabished by Vingroup to identify and develop talented youths who can become leaders in society. 9 FOUR BENGAL TIGER CUBS BORN AT VINPEARL SAFARI PHU QUOC Half a year into its operations, Vinpearl Safari Phu Quoc, Vietnam s first conservation area for wild animals, has become home to several species of rare animals from around the world. In August of 2016, four Bengal tiger cubs were born at the zoo. Veterinarians and staff at Vinpearl Phu Quoc successfully bred a wide range of endangered animals including Bonobos, African wildcats, gray kangaroos, and black swans. The birth of these animals marked a significant milestone in the development of the conservation park, in line with its mission to replenish endangered animals, whilst entertaining visitors to Phu Quoc island. REGARDING SOCIETY Uphold patriotism and nationalism Abide by the law Give one s best on the job to achieve major victories, to contribute to national development and to enhance our country s international reputation Engage actively in social and charitable work to help those less fortunate Adopt a positive lifestyle and thinking, cultivate oneself in order to support the development of a civilized society, and REGARDING CUSTOMERS Put customers first and treat them with INTEGRITY Understand that the Group needs the support of its customers Maintain a friendly, respectful, and supportive attitude toward customers Demonstrate CREDIBILITY in all our interactions with customers Listen to customers in order to clearly understand their needs and balance customers needs with those of the Group During 2016, VinTalent worked with the Vietnam Student Association to sponsor the Student with Five Talents Award and the anuar tar Award. Four hundred students applied from universities across the country, of whom 63 were awarded the Student with Five Talents Award and 100 students received the anuar tar Award following a rigorous selection process. VinTalent also funded the Musical Project led in Hanoi by young director Nguyen Phi Phi Anh. 30 shows of The Street of Fame and The Last Summer Night musicals received praise from the public and critics alike for their Broadway-style-adapted-for Vietnam performances. Preserve natural resources and protect the environment. REGARDING EMPLOYEES Treat employees as our most valuable assets Establish a work environment that is professional, dynamic, creative, and humane, and Adopt outstanding human resources policies, offering excellent remuneration and growth opportunities for employees at all levels. Continuously improve the quality of our services to ensure customer satisfaction, and Anticipate market trends in order to innovate and offer superior products and services. REGARDING SHAREHOLDERS AND BUSINESS PARTNERS Maintain a spirit of cooperation for mutual benefit, and Uphold CREDIBILITY and commitment to sustainable partnerships and become The Number One Companion to our business partners and investors. 92 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

49 SUSTAINABLE DEVELOPMENT MANAGING SUSTAINABILITY MANAGING SUSTAINABILITY SUSTAINABILITY STRATEGY FOR 2020 Vingroup s senior management believes that long-lasting sustainable value and social contributions can only be accomplished by achieving sustainable economic growth. Leveraging our commercial success, the Group now has the resources to execute our strategies in human capital development, environmental protection, and corporate social responsiblity. The Group s sustainability strategy for 2020 requires Vingroup to strike a balance among the interests of stakeholders, following the four principles: SUSTAINABILITY STRATEGY FOR 2020 ONGOING DEVELOPMENT OF HUMAN CAPITAL MANAGING CORPORATE SOCIAL RESPONSIBILITIES ENVIRONMENTAL PROTECTION Protect employee rights and equality Develop products that meet community standards Minimize energy and water use and noise pollution in all ENGAGING STAKEHOLDERS Build a strong and cohesive corporate culture Raise the level of social well-being in areas where of the Group s projects Observe environmental Vingroup aims to balance the interests of its stakeholders, Focus on sustainable development of the human resources, and Foster team spirit by organizing community involvement and employee charitable activities. the Group operates, and Demonstrate a sense of social responsibility towards business partners, customers, colleagues and the community. protection plans in each of the buildings that the Group manages, and Adhere to the highest standards in construction, and design our products with Green Living in mind. in order to develop long-term sustainable partnerships based on mutual trust, transparency, and corporate ethical standards. These are the Group s most important stakeholder groups: Shareholders and Investors Customers Local community Regulators Maximize growth in ways Observe applicable Employees ACCOMPLISHING BUSINESS GOALS IN ORDER TO GROW EFFECTIVELY AND SUSTAINABLY that are sustainable Maintain a leadership position in the real estate market, as well as in all the other business segments Make sustainable contributions to the economy procurement, environmental, and social standards, and Strengthen corporate governance and management capability. Business partners. Using its many communications channels, the Group listens to our stakeholders and takes into account their views. This feedback enables the Group to improve governance practices as well as to improve the quality of our products and services in order to achieve sustainable growth, further contributing to society and the environment. 94 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

50 SUSTAINABLE DEVELOPMENT MANAGING SUSTAINABILITY SUSTAINABLE DEVELOPMENT MANAGING SUSTAINABILITY SHAREHOLDERS AND INVESTORS CUSTOMERS Business performance Dividend payment Transparent and fair corporate governance to protect shareholder interests Adequate and timely disclosure of information, promptly seeking shareholders consent for important matters through extraordinary shareholder meetings when required Frequent meetings, Vingroup website and Investor Relations Quarterly Newsletters enable investors to meet and understand the Group s strategy from senior management. Commitment to quality of products and services Highly-qualified consultants to provide adequate and accurate information Model units for prospective buyers of residential properties; relentless improvements in design, landscaping and amenities Additional benefits for customers using VinID Card (Vingroup Loyalty Program) Shopping mall tenants benefit from regular large-scale events to attract shoppers Vinhomes residents enjoy frequent community programs to connect with one another in a harmonious environment 24/7 hotline to provide information and assistance on the Group s products and services. IDENTIFICATION, CLASSIFICATION AND HANDLING OF CRITICAL ISSUES Vingroup constantly reviews its operations and maintains communications with stakeholders in order to identify critical issues facing the Group. These issues are ranked based on their level of concern to stakeholders and their impact on corporate operations in order for us to prioritize action plans and resources. Using this approach, critical issues identified by Vingroup that need to be addressed are discussed in the following paragraphs. 4,5 LOCAL COMMUNITY 4,0 Local community Product responsibility Safety and health Environmental and community impact assessment studies prior to implementation of real estate developments Frequent dialogues with local authorities regarding measures to improve the local environment Assist regulatory authorities in developing local infrastructure Mobilize local work force, create new jobs and raise level of social well-being in areas where the Group operates. REGULATORS Participate in conferences and seminars with regulators Member of many trade associations including the World Economic Forum ( WEF ) and Vietnamese Association of Enterprises with Foreign Investments. Materiality to Vingroup 3,5 3,0 2,5 2,0 1,5 Diversity and equal opportunity Human rights Public policy Regulatory compliance Fair remuneration Economic efficiency Energy Market presence Jobs Education and training Supplier evaluation Anti-corruption Waste management 1,0 0,5 BUSINESS PARTNERS 0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0 Materiality to our stakeholders EMPLOYEES Further details can be found in ustainable e elop ent ustainabilit eport Pa e Maintain relationships with suppliers and business partners based on fairness, transparency and mutual benefit Select suppliers based on criteria including compliance with the law and commitment to environmental protection and sustainability. Shareholders and Investors Customers Regulators Business partners Employees Local community 96 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

51 SUSTAINABLE DEVELOPMENT 2016 SUSTAINABILITY REPORT 2016 SUSTAINABILITY REPORT In 2016, the Group implemented concrete programs and action plans in pursuit of Vingroup s sustainability strategy for Further details can be found in ustainabilit e elop ent ana in ustainabilit Pa e ACCOMPLISHING BUSINESS GOALS IN ORDER TO GROW EFFECTIVELY AND SUSTAINABLY MAXIMIZE GROWTH IN WAYS THAT ARE SUSTAINABLE Vingroup understands the significance of sustainability and is therefore determined to integrate sustainability into our operations and governance at all levels, from executives to employees. INCREASE RECURRING AND STABLE REVENUE AND PROFIT SENIOR MANAGEMENT COMMITMENT INTEGRATION OF SUSTAINABILITY MEASURES INTO MANAGEMENT AND OPERATIONAL PRACTICES Sustainability criteria are defined in detail and are used as benchmarks to measure the performance of each member of Management and senior executives in Vingroup and the P&Ls. Management is responsible for developing specific policies, targets, and mechanisms to monitor the achievement of sustainability targets set by the Board. One example is the policy to require an environmental and community impact assessment to be conducted prior to the commencement of a real estate project. Another example is the way that recruitment and training procedures are designed to ensure equal opportunity for all employees. During 2016, recurring revenue increased by 58% over the previous year. Those business segments generating recurring revenue include commercial property leasing, consumer retail, hospitality and entertainment, and social infrastructure. In order to achieve its recurring income goals, Vingroup has expanded its presence in all of its businesses while improving the quality of products and services to attract new customers. Further details can be found in Report of Management on Business Perfor ance and Plan of c on in roup pera ons and Financial Perfor ance in Pa e TRAINING To ensure that sustainability objectives are achieved, the Group frequently provides training to all employees to introduce relevant knowledge and skills. Vingroup has already received recognition from the Business Council for Sustainable Development as one of the Top Ten Sustainable Companies in Vietnam in We view our current progress in sustainability as an early step on a long journey to achieve our mission, to create a better life for the Vietnamese people OPTIMIZE CAPITAL STRUCTURE AND INCREASE CAPITAL EFFICIENCY To take advantage of favorable capital market conditions, Vingroup restructured its capital base by mobilizing a variety of funding channels to minimize costs. During February of 2016, the Group issued five-year and ten-year unsecured bonds with fixed interest rates for a total value of VND 3.0 trillion. The bonds are guaranteed by CGIF, a trust fund of the Asian Development Bank (ADB). In July 98 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

52 SUSTAINABLE DEVELOPMENT 2016 SUSTAINABILITY REPORT SUSTAINABLE DEVELOPMENT 2016 SUSTAINABILITY REPORT of 2016, the Group received an international syndicated loan of USD 300 million, the second time it tapped the international syndicated loan market. Standard & Poors (S&P) has granted the Group a credit rating of B with Positive outlook, and Fitch Ratings has given the Group a rating of B+, with Stable outlook. S&P has indicated that it may raise the Group s rating within 12 to 18 months if Vingroup continues to deliver on its development strategy. Further details can be found in Report of Management on and Plan of c on in roup pera ons and Financial Perfor ance in Pa e MAINTAIN LEADERSHIP POSITION IN THE REAL ESTATE MARKET, AS WELL AS IN ALL THE OTHER BUSINESS SEGMENTS IN WHICH IT OPERATES Vingroup continues to maintain its leading position in the real estate segment. The Group is also establishing new trends in other business segments. Further details can be found in Report of Management on Business Perfor ance and Plan of c on in roup pera ons and Financial Perfor ance in Pa e MAKE SUSTAINABLE CONTRIBUTIONS TO ECONOMY The Group s business development goes hand in hand with its corporate social responsiblities was the third consecutive year in which Vingroup was named Vietnam s Largest Private Taxpayer by Vietnam Report. OBSERVE REQUIRED PROCUREMENT, ENVIRONMENTAL, AND SOCIAL STANDARDS Group s sustainability strategy. In order to become a member of Vingroup s partner network, suppliers must meet criteria of quality, capability, capacity, compliance with laws, and sustainbility practices in the areas of labor standards, human rights, social impact, and environmental protection. During 2016, VinCommerce upgraded the process of selecting partners. Greater quality control was applied to the selection and assessment of suppliers for VinMart supermarkets and VinMart+ mini-marts and convenience stores. VinCommerce established two food safety testing laboratories, one in Hanoi and one in Ho Chi Minh City. 18 quick testing stations were set up nationwide in VinMart stores, using modern equipment to test food samples for quality and safety on a daily basis before they are sold in our stores. In addition, VinCommerce proactively established policies to support local enterprises in sustainable production. In June of 2016, VinCommerce signed agreements with 250 Vietnamese businesses to promote domestic production of safe and clean food. Adayroi is a pioneer in the e-commerce industry in the use of environmentally-friendly, bio-degradable grocery packaging. During 2016, Adayroi successfully delivered more than 200,000 grocery orders using the new packaging. In the agriculture sector, VinEco implemented partnerships with 1,000 farming cooperatives and farming households to produce safe foods. VinEco supports farmers by giving them access to advanced techniques that can modernize traditional farms, increase their productivity and efficiency and ensure the quality, safety, and hygiene of their produce in accordance with VietGAP standards. SUSTAINABILITY IN PROJECT SELECTION AND DEVELOPMENT energy-saving designs, extensive landscaping, and a high density of trees. Vinhomes Central Park and Vinhomes Golden River, situated by the Saigon River, take advantage of their prime locations, proximity to open spaces, and the capacity to be covered by green trees. Public parks with green space along the river will make full use of the river s landscape, contributing to the development of a microclimate for the area and creating an attractive public space. Available natural landscapes are maintained during construction. In public areas, the density of green trees will cover at least 30% of the land area, with priority given to tall, broadleaved trees for maximum shade. Vinhomes Imperia follows a master plan for an ecological urban development, using a project design with building heights and density declining toward the Cam River to create a feeling of harmony with the landscape, ecology on the riverside, and maximum air circulation. Green solutions are also used in public areas. Outdoor parking areas employ environmentally-friendly techniques and avoid bare concrete surfaces that are heat producing. Shrubs and potted plants are arranged in each lot to improve the microclimate, and parking areas are planted with grass to retain water and prevent local flooding while dissipating heat, reducing dust, and protecting the environment. treatment system to protect the environment. The hospital also maintains programs in fire prevention and fire fighting, laboratory safety, radiation safety, and food safety which comply with the highest international standards. In Phu Quoc Island, trees with a diameter of at least 20cm are protected during construction of the Vinpearl projects in order to preserve the natural environment while creating a unique landscape for the projects under construction. The Vinpearl Safari and Conservation Park has met all required standards and is awaiting biodiversity certification from the Kien Giang Department of Natural Resources and Environment. This is the highest level certificate for environmental protection available in Vietnam. SUSTAINABLE PRODUCTS AND SERVICES Vingroup products are developed in accordance with the Group s strategy of sustainable development and are rigorously controlled for quality. Further details can be found in Corporate Profile Businesses Pa e STRENGTHEN CORPORATE GOVERNANCE AND MANAGEMENT CAPABILITIES In order to maintain its leadership position in all of its business segments, Vingroup is building a lean, flexible, and efficient governance structure. Strengthening governance and perfecting its corporate structure is a key part of Vingroup s strategy for achieving its business goals. Further details can be found in Corporate o ernance eport of the Board of irectors Pa e INTEGRATING SUSTAINABILITY IN SUPPLIER SELECTION At Vingroup, sustainability is integrated into all of our business activities. The value chain from inputs to outputs and business activities takes into consideration financial viability and impacts to the society and the environment. With four core business segments and a nationwide network of businesses, Vingroup has partnered with thousands of local and international suppliers. Managing this supply chain and partnerships is essential to the Vingroup pays special attention to sustainability in project selection. The Group conducts extensive environmental impact studies before undertaking a development project. By studying the nature of risks associated with investment projects, Vingroup is able to identify and minimize risks that may negatively impact the environment and society. This process enables Vingroup to screen out projects that would otherwise have negative impacts. Sustainability is then considered throughout the process of planning and implementing projects. Starting from the initial design, green structures are prioritized using With projects in environmentally sensitive areas, such as healthcare and hospitality, the environment is always of paramount concern. Vinmec Times City International Hospital has a sewage treatment system with a capacity of 600 cubic meters per day. The quality of treated water is monitored frequently and meets requirements set by the Ministry of Health. During 2016, Vinmec Times City International Hospital invested nearly VND 2 billion to upgrade this water 100 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

53 SUSTAINABLE DEVELOPMENT 2016 SUSTAINABILITY REPORT SUSTAINABLE DEVELOPMENT 2016 SUSTAINABILITY REPORT ONGOING DEVELOPMENT OF HUMAN CAPITAL Human capital is the critical resource for business development. Vingroup employees are experts in each of our core business segments, thereby creating an attractive, professional and friendly working environment based on the guidelines described below. PROTECT EMPLOYEE RIGHTS AND EQUALITY Vingroup respects the contributions made by all employees, regardless of nationality, age, gender, or educational background. The Group manages and promotes employees on the basis of their productivity and performance so that all can develop their abilities to the full extent of their potential. RECRUITMENT AND HUMAN RESOURCES STRATEGY: Vingroup recruits capable candidates who seek to work in a fast-paced, dynamic, creative, and professional environment. The recruitment process at Vingroup is fair and meritbased. The Group has created a modern, efficient work environment that balances business needs with employee goals. Vingroup invests in human capital through the successful implementation of its training policies which underline new knowledge and skill upgrades. The Group also encourages promotions from within. Employees are given the opportunity to attend training programs, to gain experience in different jobs through rotation and job postings, in order to gain practical knowledge about the Group s business operations. Managers are required to serve as facilitators to provide technical training to less experienced employees. In addition, Vingroup frequently engages outside experts to provide training. Total number of employees and average income 9.9 5, Average income (VND million/month) 2016 employee distribution by education (People) (People) 11,062 UNIVERSITY 722 PH.D. AND MASTER 2016 employee distribution by age 2, , , , ,363 BELOW UNIVERSITY LEVEL ABOVE ,192 24, , People EMPLOYEE BENEFITS AND THE WORK ENVIRONMENT During 2016, Vingroup was voted one of the Top Ten Employers by the Vietnam General Confederation of Labor and the Labor Newspaper. The Group was also ranked by Anphabe and Nielsen among the 100 Best Workplaces in Vietnam in the fields of Hospitality, Real Estate / Architecture / Design, Consumer Retail / Wholesale / Commerce and Agriculture. These awards recognize Vingroup s commitment to maintaining a modern, professional workplace with competitive benefit policies, balancing the interests of the employer and employees. Vingroup s work schedule Vingroup employees work eight hours per day. Noncustomer-facing or office employees work five and onehalf days per week, while customer-facing or service employees work six days per week. All employees receive paid public holidays, vacation and personal days in accordance with the Labor Law. Working conditions Vingroup is committed to maintaining a work environment where each employee can realize his or her full potential. We provide all employees with comfortable, modern offices and regular health checks. Customer-facing or service employees are further supplied with uniforms and work in environments that meet safety and sanitation standards. Labor regulations It is Group policy to maintain an Employee Code of Conduct that fully complies with all labor regulations. Employee allowances Vingroup salary levels are higher than other companies in the same sector. In the second half of the third quarter of 2016, the Group revised the minimum remuneration to VND 5 million (exclusive of meal allowances), as well as reformed the allowance and incentive payment scheme on the basis of employee performance and contribution. To attract and retain talent, the Group also applies a compensation policy that is particularly competitive for well-qualified and experienced employees in relevant fields. Social, Health, and unemployment insurance are provided in accordance with applicable laws. In addition, the Group also engaged Bao Viet Group to develop health insurance programs for employees. The Group increased its 2016 budget for benefits by a remarkable 50%, raising its total benefits budget in 2016 to more than VND 600 billion, enabling us to improve support for our employees. The Group s employee benefit programs include gifts for employees in conjunction with significant personal events, as well as recreational programs that bring employees together to promote teamwork and healthy lifestyles. In addition, support is provided for the children of employees in the form of recognition and awards, summer camps, and skills training programs. Multi-sport recreation complexes have been built at the Group s headquarters and several locations where there are large company operations. Other employee benefit programs include: an emergency fund, an employee loan fund that extends zero-interest loans for those facing personal hardship, and a bond issuance program with superior interest rates for employees only. Incentive scheme Vingroup has an incentive system for the Corporate Office and all Group companies. We also reward employees with outstanding achievements in the form of performance awards and bonuses employee distribution by gender (People) 50.3% 18, % 17,951 Participation of female employees is visible within management and operations, from the central to grassroots level of the Group. 102 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

54 BUILD A STRONG CORPORATE CULTURE With the goal of building Vingroup into a Common Home for its employees, the Group has established the Vingroup Family program to enrich its corporate culture. During 2016, the Group established the Vingroup Chronicle Project to educate employees about its unique history. The project included a number of events focused on sharing Vingroup history, including Vin People know Vin s History, the Golden Bell Tournament, and several specialized training programs. These programs drew participation from nearly 32,000 employees over the course of the year, celebrating Group history and milestones while inspiring young employees to contribute to the Group s success. transmitting the skills needed for both business and career development. Examples of these programs are: A training series of 12 sessions on leadership was presented for all Group managers The Professional Shopping Center Management program was organized in Singapore A specialized training program was organized for future VinMart supermarket managers Nursing specialist training was held in Taiwan and post-graduate training was given at Chulalongkorn University in Thailand Training in visual diagnostics was presented at Kouhoukai Hospital in Japan to embrace training, Vingroup organizes contests among P&Ls for the title of Learning P&L, where prizes include special welfare benefits for the winners. FOSTER TEAM SPIRIT BY ORGANIZING COMMUNITY INVOLVEMENT AND EMPLOYEE CHARITABLE ACTIVITIES The Group is interested in promoting corporate activites that boost the welfare and morale of its employees. The Group established a Communist Party section and a Trade Union to strengthen solidarity amongst employees and party members. Employee activities supporting the Party have been judged to be outstanding, and the Group s Trade Union also won the title of Excellent Union in Long Bien District and Hanoi. employees to participate in volunteer activities. Vingroup employees have a track record of taking part in community activities such as providing clothes and books for children living in orphanages and in remote districts throughout the country. The VinClub internal social network has become an effective link between management and employees, attracting more than 36,000 visitors, an increase of 572% over 2015, with 14,238 posts and over two million page views. DELIVER HIGHEST QUALITY OF EMPLOYEE TRAINING Vingroup s Learning Program was widely deployed during 2016 to promote the theme of improving Group performance through skills development. The 21st Century School Principals Development Training Program was given at the University of Waikato in New Zealand. On average, each Vingroup employee took part in 92.2 hours of training, while for each manager the average was hours per year. During 2016, the Group initiated the Learning Policy in order to formalize a learning mindset in its employees and lay down standards in quality and productivity of each training session. In order to encourage Group companies Vingroup formed a Department of Culture, Arts, and Sports as part of the Human Resources Division to further develop employee fitness and collaboration. The Department organizes weekly activities including football, tennis, and badminton games. Festivals are planned for monthly and quarterly intervals, including team building activities in fields such as arts, singing, dancing, and the Vingroup running competition. Arts, sports, and culinary events have attracted the participation of hundreds of Vingroup employees, further strengthening their camaraderie, fitness and spirit. Many of the Group s training programs are focused on In addition to corporate programs, Vingroup encourages 104 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

55 SUSTAINABLE DEVELOPMENT 2016 SUSTAINABILITY REPORT SUSTAINABLE DEVELOPMENT 2016 SUSTAINABILITY REPORT THE CORRECTIVE SURGERIES FOR THE BOY WITHOUT A FACE AT VINMEC MANAGING CORPORATE SOCIAL RESPONSIBILITY DEVELOP PRODUCTS THAT MEET COMMUNITY STANDARDS Vingroup s goal is to provide clean, environmentallyfriendly products in every business segment. Vingroup products and services, including real estate developments, resorts, and the Safari are all community-oriented. Further details can be found in ana e ent s eport on Business Perfor ance and Plan of c on in roup pera on and Financial Perfor ance in Pa e RAISE LEVEL OF SOCIAL WELL-BEING IN AREAS WHERE THE GROUP OPERATES During 2016, the Group made several important strategic decisions including the launch of VinCity and Vincom+, underpinned by our desire to improve social well-being in rural districts and provinces throughout Vietnam. Affordable real estate projects with integrated facilities will be developed, outside major cities, in neighborhood areas and local communities. The more modest scale of the Vincom+ shopping center model can be implemented in small towns and cities throughout the country, contributing to the evolution of local shopping behavior. In developing major real estate projects, Vingroup is a partner to the local governments in making investments in infrastructure such as roads, power lines, water systems, and public works, all of which are required to meet the needs of residential development. Two weeks after his fourth cranio-facial surgery, Le Trung Tuan (born in 1998, in Nhu Thanh, Thanh Hoa) went back to his studies. His face is now in harmony with the bridge of his nose, and Tuan is quite confident engaging in normal daily activities and communicating with other people. This teenager who has just turned 18 plans to open a small shop in order to earn a living independently. The fourth round of surgery was also the final procedure conducted by Dr. McKinnon, which closed the passage connecting Le Trung Tuan s nasopharynx, oropharynx and laryngopharynx, and in addition, reshaped the contours of his nose. In the first three procedures, the doctors removed a large malignant tumor. After each surgery, Tuan s facial aesthetics were improved, at the same time, the physiological functions of his eyes, nose, and pharynx also gradually recovered. Compared with his first day at Vinmec Times City International Hospital in the early 2013, Le Trung Tuan seems like a new person. His appearance has completely changed. He has also become a well-built young man, after gaining more 25 centimeters in height and 30 kilograms in weight. His father, Le Trung Ha, who had spent four years hopelessly seeking numerous medical opinions, could now happily look at Tuan s new face: The tumor covered most of his face, embedded in the skull, and pushed his eyes to different sides. Hence, during the past five years, Tuan had suffered from a deformed face, hearing loss in one ear, and blurred vision in one eye. Vinmec doctors successfully removed the tumor and it did not affect his brain. Now he can see and hear clearly. There is nothing more precious than that. Now he can look forward to a long future. Ha said. After seeing Tuan for the third time, Dr. McKinnon was surprised that Tuan could speak many simple sentences in English. This is due to Tuan s efforts to study English over the past three years in the hope that he could converse er recei in edical treat ents fro the orld s leadin cranio facial sur eon r c a c innon e run uan has a nor al face li e e er one else ot onl does he ha e a ne face but ith ore than three ears or in ith r c innon and an doctors at in ec i es Cit nterna onal ospital uan has ro n up no in co passion and findin an e traordinar ill to li e directly with his benefactor, Dr. McKinnon. Dr. McKinnon said it was Tuan s strong will that convinced him to return to Vietnam four times to help. Spreading the inspiration of doing good, and treating people with kindness Tuan s family life had been turned upside down for years because of his medical treatment and was finally back to normal. His father is a driver and his mother has a small tailor shop. Although his family still experiences much difficulty, whenever they read in the newspapers about patients who cannot afford medical treatment, Tuan and his parents will donate money to help them overcome their diseases. Ha, Tuan s father, said that Tuan had asked if he could register for organ donation after visiting many hospitals and witnessing many people who were battling for their lives, waiting for organ donors. Four times over three years, the Kind Heart Foundation covered all medical expenses for me. The doctor from the US came halfway around the world to Vietnam in order to conduct many surgeries for me. The doctors and nurses at Vinmec hospital have dedicated themselves to taking care of me for a long time. Now, I can live a healthy life. It is what the Kind Heart Foundation and the doctors from the US and at Vinmec have done that has taught me how to give and help others. Tuan said. I have always believed when a child is sick, if the parents persistently seek treatment, the child will definitely recover one day. We are lucky because, on our journey with many difficulties, we have met wonderful people, such as Dr. McKinnon, Dr. Nguyen Thanh Liem, doctor Vu Duc Nha, and other doctors and nurses at Vinmec, who conducted many treatments and took care of Tuan. Thus, our family can achieve things beyond the expected, Ha said with great emotion. 106 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

56 SUSTAINABLE DEVELOPMENT 2016 SUSTAINABILITY REPORT SUSTAINABLE DEVELOPMENT 2016 SUSTAINABILITY REPORT A LOAF OF BREAD GIVEN, A BRIGHT SMILE RETURNED Vingroup staff are selfless people who always care for the community. Embracing this mindset, the Vinpearl Bai Dai Nha Trang project management staff have had an August full of joy when they implemented a small but meaningful program for the local community. Seeing the poor in his community struggling to make ends meet, even though they worked very hard for themselves and their families, Deputy Project Manager Phung Van Quyen appealed to his staff to raise funds. The donations of his staff raised money to buy bread, drinking water, milk and medicine for the local people and the Project s workers. DEMONSTRATE A SENSE OF SOCIAL RESPONSIBILITY TOWARDS BUSINESS PARTNERS, CUSTOMERS, COLLEAGUES AND THE COMMUNITY FAIRNESS AND TRANSPARENCY WITH BUSINESS PARTNERS In partnerships, Vingroup emphasizes fairness, transparency, and mutual benefits for all involved parties, in accordance with applicable regulations and market practices. Each contract signed between the Group or its P&Ls and their counterparts contains an anti-bribery clause that clearly states the procedures for dealing with attempted bribery. Beginning in early August 2016, the program has given away, on a daily basis, 400 meals of bread and milk, four 25-liter water bottles, 20 doses of medicine and medical supplies (for headache, stomach ache and fever) to the local community and workers. The costs for the program were entirely covered by staff contributions. Under the simple motto of: a loaf of bread given, a bright smile returned, the local community has received not only substenance but also benefited from the caring and sharing of their compatriots. Small actions produce great results. Life is all about giving and receiving. eein poor people here e are reall sad e ant to do so ethin for the but our po er is li ited e tried to do our best and are reall happ to acco plish this e ill con nue the pro ra in the future hopin that ore people ill be helped said one pro ect ana e ent personnel INVESTING IN EDUCATION AND PREPARING THE NEXT GENERATIONS On June 6, 2016, Vingroup established the Vietnam Talent Promotion and Development Fund, also known as VinTalent. This Fund runs the Talent Pool Project to select, teach, and sponsor young people in the fields of business, administration, science, sports, and the arts. During 2016, the Fund sponsored internships for 53 students and awarded scholarships to 163 students. In September 2016, VinTalent sponsored the Student with Five Talents and the anuar tar awards, which were given to 163 recipients. The Promotion Fund for Vietnamese Football Talent (PVF), established and sponsored in 2009 by Vingroup, has trained 175 young football players through eight batches since inception. PVF teams have consistently achieved good results at the Youth Championships at both the national and regional levels. In 2016, the first batch of PVF students obtained high achievements in domestic tournaments and joined the Vietnam national football team. Their participation contributed to the national team s achievements in the international tournament, and in turn assisted the development the country s football foundation. IMPROVING COMMUNITY WELFARE Vingroup s commitment to corporate social responsibility is reflected in its decision to convert Vinmec and Vinschool to non-profit social enterprises and its investment in agriculture through VinEco. Through these steps, Vingroup has inspired many other companies to participate in social development. Vingroup s retail and agricultural products have competitive pricing mechanisms that provide lowerincome consumers with daily access to clean food. Further details about Vingroup transforming Vinmec and Vinschool into social enterprises can be found at Sustainable e elop ent i hli hts Pa e 2016 marks the tenth anniversary of the Kind Heart Foundation, the vehicle through which the Group supports a variety of charitable activities including providing financial and social assistance to build approximately 1,400 homes in 32 provinces, donating 1,500 heifers to supplement income for poor families, building 42 schools and boarding facilities, in mountainous areas and along the national borders, assisting Vietnamese war veterans, sponsoring healthcare and cardio-vascular surgery programs for poor patients, building and restoring cultural facilities and sponsoring educational and study programs. The Phat Tich Custodial Care and Youth Development center for the elderly and the orphans is based in Phat Tich Ward in Tien Du District, Bac Ninh Province and sponsored by the Kind Heart Foundation. The Center cares for and educates more than 150 orphans and elderly people. 108 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

57 SUSTAINABLE DEVELOPMENT 2016 SUSTAINABILITY REPORT ENVIRONMENTAL PROTECTION Vingroup places great emphasis on energy conservation as a means of achieving sustainable development throughout the Group. As a pioneer in real estate development and hospitality, the Group focuses on creating a green working environment, not only for its staff but also for customers. In our ongoing operations, the Group aims to raise staff awareness of environmental protection, addressing climate change, and managing waste treatment systems at Vingroup facilities. These steps ensure that Vingroup is meeting environmental standards, minimizing energy use, and reducing greenhouse gas emissions. MINIMIZE ENERGY AND WATER USE AND NOISE POLLUTION IN ALL OF THE GROUP S PROJECTS Environmental awareness is a top priority at Vingroup. Since 2016, Vinpearl hotels and resorts use electricpowered vehicles to handle passenger and luggage transportation in order to reduce energy consumption and emissions on their properties. Vinpearl Golf Resorts uses salt in place of chemical pesticides to remove weeds, protecting both wildlife and the environment. Today, Vingroup is studying opportunties to re-use water and to treat wastewater, beginning with the project design phase. Vinpearl projects use a system of purification and treatment of bio-waste water, from which treated water may be used to irrigate plants. In Nha Trang, 75% of daily water usage is provided from man-made reservoirs following thorough processing. In Phu Quoc, the Group implements a system of reservoirs to store water during the dry season and absorb water during rainy seasons. Vinpearl hotels have adopted energy saving measures that include reducing public lighting at night, control over boiler operations to avoid waste, and prioritizing the use of LED light bulbs. Vinmec emphasizes the protection of both hospital and community environments. Solid waste collection facilities are equipped with modern technology. Staff members are trained to monitor waste streams to limit amounts discharged into the environment. Several hospital departments review and monitor compliance with the new standards: the Professional Council, the Quality Control Board, the Infection Control Council, and the Environmental Safety Board. During 2016, Vinmec Times City International Hospital received a commendation from the Environmental Police Department at the Vietnam General Department of Public Security. In agriculture, Vingroup closely monitors the effect its products and farming methods have on the environment. VinEco advocates limiting the use of underground water supplies by investing in water pumping stations to fetch water from nearby rivers and lakes, and constructing water treatment zones in accordance with modern irrigations standards. Examples of these projects are located in Cu Chi, Tam Phuoc, Quang Ninh, and at other farms. Throughout the country, VinEco has built waste treatment systems for organic waste, whose outputs can be re-used by farms. OBSERVE ENVIRONMENTAL PROTECTION PLANS IN EACH OF THE BUILDINGS THAT THE GROUP MANAGES In real estate projects, environmental protection is reflected in low-density designs and an emphasis on harmony between the projects and their surroundings. Optimization of visibility and natural light are found at Vinhomes Skylake, Vinhomes Golden River, and Vinhomes Metropolis. With central air-conditioning, low-e glass lenses to restrict UV light, and electricity consumption controls, these projects now comply with many advanced environmental standards. ADHERE TO THE HIGHEST STANDARDS IN CONSTRUCTION, AND DESIGN PRODUCTS WITH GREEN LIVING IN MIND Emphasis on environmental protection extends from the project design phase through construction and operation at all Vingroup properties: hotels, shopping malls, urban complexes, offices, and residential buildings. Planning and architectural design teams are dedicated to achieving environmental protection in every aspect of their work, from maximizing the efficient use of space, to the creation of modern living and resort complexes, to energy efficiency in building design and contruction. Green areas are the hallmarks of Vingroup projects. With low-density housing, plentiful trees, and water features occupying a large proportion of the projects, there are many features to highlight in these modern living spaces. Projects such as Vinhomes Golden River and Vinhomes Central Park have maintained open spaces of more than 30% of total project areas, making full use of riverfront land to build eco-friendly, walkable complexes with large public parks along the Saigon River. Vingroup construction creates green focal points in every city across Vietnam. 110 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

58 ANNUAL REPORT 2016 PRESERVING THE START-UP MINDSET VINHOMES IMPERIA

59 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CHAPTER VI CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS GENERAL INFORMATION THE COMPANY Vingroup Joint Stock Company ( the Company ) is a joint stock company established in Vietnam pursuant to the Business Registration Certificate No issued by the Hanoi Department of Planning and Investment on 3 May 2002 and the Business Registration Certificate No re-issued on 12 May The Company subsequently received amended Enterprise Registration Certificates, with the latest amendment being the 63th amended Enterprise Registration Certificate dated 28 February The Company s shares were officially listed on the Ho Chi Minh Stock Exchange ( HOSE ) from 19 September 2007 in pursuant to Decision No.106/QD-TTGDHCM issued by the Director of HOSE on 7 September The current principal activities of the Company are to invest in, construct and trade real estate properties; to carry out capital mobilization and investment activities; and to provide general administrative services. Current principal activities of the Company s subsidiaries are presented in Appendix 1. The Company s head office is registered at No. 7, Bang Lang 1 street, Vinhomes Riverside Eco-urban Area, Viet Hung ward, Long Bien district, Hanoi, Vietnam. Its branch is located at No. 72, Le Thanh Ton and No. 45A, Ly Tu Trong street, Ben Nghe ward, district 1, Ho Chi Minh city, Vietnam. BOARD OF DIRECTORS Members of the Board of Directors during the year and at the date of this report are: SUPERVISORY BOARD Members of the Supervisory Board during the year and at the date of this report are: Mr. Nguyen The Anh Head of the Supervisory Board Mr. Dinh Ngoc Lan Member Ms. Do Thi Hong Van Member Ms. Nguyen Thi Van Trinh Member MANAGEMENT Members of management during the year and at the date of this report are: Ms. Duong Thi Mai Hoa Chief Executive Officer Ms. Mai Huong Noi Deputy Chief Executive Officer Mr. Pham Van Khuong Deputy Chief Executive Officer Ms. Nguyen Dieu Linh Deputy Chief Executive Officer resigned on 29 August 2016 Mr. Dang Thanh Thuy Deputy Chief Executive Officer resigned on 29 August 2016 Ms. Vu Tuyet Hang Deputy Chief Executive Officer resigned on 29 August 2016 Ms. Nguyen Thi Diu Deputy Chief Executive Officer Ms. Duong Thi Hoan Deputy Chief Executive Officer appointed on 29 August 2016 LEGAL REPRESENTATIVE The legal representative of the Company during the year and at the date of this report is Ms. Duong Thi Mai Hoa. AUDITOR The auditor of the Company is Ernst & Young Vietnam Limited. VAS Consolidated Financial Statements Summary IFRS Consolidated Financial Statements Reconciliations between VAS and IFRS Consolidated Income Statements Mr. Pham Nhat Vuong Chairman Mr. Le Khac Hiep Vice Chairman Ms. Pham Thuy Hang Vice Chairwoman Ms. Pham Thu Huong Vice Chairwoman Ms. Nguyen Dieu Linh Vice Chairwoman Ms. Vu Tuyet Hang Vice Chairwoman resigned on 22 April 2016 Mr. Ling Chung Yee Roy Member Ms. Mai Huong Noi Member Mr. Marc Villiers Townsend Member Mr. Joseph Raymond Gagnon Member 114 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

60 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS REPORT OF MANAGEMENT INDEPENDENT AUDITORS REPORT Management of Vingroup Joint Stock Company ( the Company ) is pleased to present its report and the consolidated financial statements of the Company and its subsidiaries (collectively referred to as the Group ) for the year ended 31 December MANAGEMENT S RESPONSIBILITY IN RESPECT OF THE CONSOLIDATED FINANCIAL STATEMENTS Management is responsible for the consolidated financial statements of each financial year which give a true and fair view of the consolidated financial position of the Group and of the consolidated results of its operations and its consolidated cash flows for the year. In preparing those consolidated financial statements, management is required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the consolidated financial statements; and prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue its business. Management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the consolidated financial position of the Group and to ensure that the accounting records comply with the applied accounting system. It is also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Management confirmed that it has complied with the above requirements in preparing the accompanying consolidated financial statements. STATEMENT BY MANAGEMENT Management does hereby state that, in its opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2016 and of the consolidated results of its operations and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of consolidated financial statements. For and on behalf of management: To: The Shareholders of Vingroup Joint Stock Company We have audited the accompanying consolidated financial statements of Vingroup Joint Stock Company ( the Company ) and its subsidiaries (collectively referred to as the Group ) as prepared on 25 March 2017 and set out on pages 6 to 109, which comprise the consolidated balance sheet as at 31 December 2016, the consolidated income statement and the consolidated cash flow statement for the year then ended and the notes thereto. Responsibility of the Company s management The Company s management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of the consolidated financial statements, and for such internal control as the Company s management determines is necessary to enable the preparation and presentation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Group s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Company s management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements give a true and fair view, in all material respects, of the consolidated financial position of the Group as at 31 December 2016, and of the consolidated results of its operations and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, Vietnamese Enterprise Accounting System and the statutory requirements relevant to preparation and presentation of the consolidated financial statements. Ernst & Young Vietnam Limited Duong Thi Mai Hoa Chief Executive Officer Tran Dinh Cuong Auditor Trinh Xuan Hoa Auditor Hanoi, Vietnam 25 March 2017 Audit Practising Registration Certificate No Hanoi, Vietnam 25 March 2017 Audit Practising Registration Certificate No VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

61 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET as at 31 December 2016 Code ASSETS Notes Ending balance Beginning balance (Restated) 100 A. CURRENT ASSETS 87,583,802,138,603 67,699,619,665, I. Cash and cash equivalents 5 9,833,332,219,401 6,938,465,104, Cash 6,243,230,621,899 3,771,965,874, Cash equivalents 3,590,101,597,502 3,166,499,229, II. Short-term investments 6 494,156,904,807 11,142,979,590, Held-for-trading securities ,369,112,000 32,369,112, Provision for held-for-trading securities 6.1 (18,996,660,000) (14,958,000,000) Held-to-maturity investments ,784,452,807 11,125,568,478, III. Current accounts receivable 18,254,656,305,786 13,848,128,025, Short-term trade receivables 7.1 3,170,762,775,815 2,532,249,371, Short-term advances to suppliers 7.2 5,229,186,165,035 6,695,026,549, Short-term loan receivables 8 3,224,258,638,813 1,763,123,912, Other short-term receivables 9 6,809,970,413,275 3,072,305,532, Provision for doubtful short-term receivables 10 (179,521,687,152) (214,577,340,741) 140 IV. Inventories 11 49,782,780,792,296 28,027,417,689, Inventories 49,879,776,253,837 28,085,895,835, Provision for obsolete inventories (96,995,461,541) (58,478,146,455) 150 V. Other current assets 9,218,875,916,313 7,742,629,256, Short-term prepaid expenses 12 3,123,024,713,156 1,548,029,401, Value-added tax deductible 972,722,775, ,027,543, Tax and other receivables from the State ,457,535,408 23,050,885, Other current assets 13 5,011,670,892,619 5,511,521,426,816 Code ASSETS Notes Ending balance Beginning balance (Restated) 200 B. NON-CURRENT ASSETS 92,867,047,555,191 77,854,737,886, I. Long-term receivables 465,506,617, ,324,078, Long-term loan receivables 8 58,989,915,115 62,559,839, Other long-term receivables 9 406,516,702, ,764,239, II. Fixed assets 26,878,731,078,331 19,837,150,938, Tangible fixed assets 14 26,066,821,876,593 19,114,346,085, Cost 30,165,242,182,483 22,037,695,324, Accumulated depreciation (4,098,420,305,890) (2,923,349,239,083) Intangible fixed assets ,909,201, ,804,853, Cost 1,171,451,553, ,235,746, Accumulated amortisation (359,542,351,914) (142,430,892,984) 230 III. Investment properties 16 17,362,127,296,491 16,827,664,243, Cost 19,186,357,270,103 18,192,494,564, Accumulated depreciation (1,824,229,973,612) (1,364,830,320,724) 240 IV. Long-term assets in progress 33,991,567,265,462 18,115,293,364, Construction in progress 18 33,991,567,265,462 18,115,293,364, V. Long-term investments 3,347,544,752,659 9,597,557,595, Investments in associates, jointly ,728,809,250,992 6,715,538,162,046 controlled entities Investments in other entities ,604,928,401,863 2,882,019,433, Provision for long-term investments (56,192,900,196) Held-to-maturity investments ,000,000, VI. Other long-term assets 10,821,570,545,051 13,222,747,664, Long-term prepaid expenses 12 2,252,711,733,160 1,437,896,150, Deferred tax assets ,604,798, ,157,957, Other long-term assets 13-3,000,000,000, Goodwill 20 8,240,254,012,956 8,614,693,556, TOTAL ASSETS 180,450,849,693, ,554,357,551, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

62 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET (continued) as at 31 December 2016 Code RESOURCES Notes Ending balance Beginning balance (Restated) Code RESOURCES Notes Ending balance Beginning balance (Restated) 300 C. LIABILITIES 135,184,454,789, ,969,432,655, I. Current liabilities 97,627,931,086,891 64,900,384,271, Short-term trade payables ,458,154,238,573 5,712,772,636, Short-term advances from customers ,537,280,868,648 20,221,096,466, Statutory obligations 22 7,366,546,933,741 1,678,401,228, Payables to employees 418,583,692, ,440,169, Short-term accrued expenses 23 8,454,261,883,875 6,920,895,138, Short-term unearned revenues 24 1,138,838,659,058 1,056,738,019, Short-term other payables ,468,556,855,796 27,471,724,880, Short-term loans and debts ,590,652,159,634 1,424,617,794, Short-term provisions ,055,795, ,697,938, II. Non-current liabilities 37,556,523,702,320 43,069,048,383, Long-term unearned revenues 24 2,389,764,581,482 2,683,411,532, Other long-term liabilities ,119,050,942 4,406,204,612, D. OWNERS EQUITY 45,266,394,904,583 37,584,924,896, I. Capital ,266,394,904,583 37,584,924,896, Issued share capital ,377,079,540,000 18,681,880,870,000 a hares ith o n ri hts Share premium ,504,959,737,448 5,798,727,464, Treasury shares 29.1 (2,974,924,074,484) (2,974,924,074,484) Other funds belonging to owners equity ,845,114,930 27,845,114, Undistributed earnings ,345,253,453 1,571,190,449,441 a - Undistributed earnings of prior year b - Undistributed earnings of prior year Undistributed earnings/(losses) of current year Non-controlling interests ,384,089,333,236 14,480,205,072, TOTAL LIABILITIES AND OWNERS EQUITY 180,450,849,693, ,554,357,551, Long-term loans and debts ,168,826,603,603 33,122,684,524, Convertible bonds 28-2,382,401,760, Deferred tax liabilities ,813,466, ,345,952,476 Ngo Nguyet Hang Preparer Nguyen Thi Thu Hien Chief Accoutant Duong Thi Mai Hoa Chief Executive Officer 25 March VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

63 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENT for the year ended 31 December 2016 CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 December 2016 Code ITEMS Notes Current year Previous year Revenue from sale of goods and rendering of services ,670,387,202,439 34,054,968,884, Deductions 30.1 (56,043,536,545) (7,002,571,734) Net revenue from sale of goods and rendering ,614,343,665,894 34,047,966,313,102 of services Cost of goods sold and services rendered 31 (40,184,632,606,036) (22,338,933,561,491) Gross profit from sale of goods and rendering of 17,429,711,059,858 11,709,032,751,611 services Finance income ,861,556,630,724 1,931,520,080, Finance expenses 32 (5,389,034,072,187) (3,282,074,915,976) -In which: Interest expense Shares of profit of associates, joint-ventures ,823,588,740 39,227,754, Selling expenses 33 (6,672,815,695,018) (2,957,825,676,439) General and administrative expenses 33 (5,526,090,462,009) (3,922,773,154,112) Operating profit 5,723,151,050,108 3,517,106,839, Other income ,479,678, ,039,374, Other expenses 34 (618,871,762,087) (948,045,248,993) Other profit/(loss) 34 69,607,916,270 (665,005,874,205) Accounting profit before tax 5,792,758,966,378 2,852,100,965, Current corporate income tax expense 36 (2,534,168,929,813) (1,424,642,826,631) Deferred tax income ,477,855,941 74,017,304, Net profit after tax 3,513,067,892,506 1,501,475,443,451 Code ITEMS Notes Current year Previous year I. CASH FLOWS FROM OPERATING ACTIVITIES 01 Profit before tax 5,792,758,966,378 2,852,100,965,401 Adjustments for: 02 Depreciation of tangible fixed assets and investment 41 3,355,807,214,759 2,215,531,092,798 properties and amortisation of intangible assets (including amortisation of goodwill) 03 Provisions 141,826,931, ,300,335, Foreign exchange (gains)/losses 32 (64,931,257,744) 392,125,548, Profits from investing activities 41 (5,066,205,170,001) (1,894,455,580,399) 06 Interest expenses 32 4,308,066,793,490 2,721,940,288, Operating profit before changes in working 8,467,323,478,811 6,467,542,650,397 capital 09 Increase in receivables (335,155,028,311) (4,510,794,740,749) 10 Increase in inventories (13,486,963,673,195) (7,424,030,776,827) 11 Increase in payables (other than interest, corporate 18,604,163,811,522 40,818,058,572,231 income tax) 12 Increase in prepaid expenses (2,720,086,885,910) (1,756,985,859,776) 13 Decrease in held-for-trading securities - 112,322,695, Interest paid (3,736,500,947,012) (4,381,857,928,346) 15 Corporate income tax paid (2,294,234,119,932) (1,421,314,104,431) 20 Net cash flows from operating activities 4,498,546,635,973 27,902,940,507, Net profit after tax attributable to shareholders of the parent ,439,510,861,997 1,215,774,826, Net profit after tax attributable to ,073,557,030, ,700,617,371 non-controlling interests Basic earnings per share 38 1, Diluted earnings per share 38 1, II. CASH FLOWS FROM INVESTING ACTIVITIES 21 Purchase and construction of fixed assets and other long-term assets 22 Proceeds from disposals of fixed assets and other long-term assets 23 Loans to other entities and payments for purchase of debt instruments of other entities 24 Collections from borrowers and proceeds from sale of debt instruments of other entities (14,301,529,343,969) (14,514,819,118,699) 66,786,752,382 38,823,385, (3,432,087,468,527) (18,880,888,911,471) 41 22,880,893,204,796 8,840,834,375,998 Ngo Nguyet Hang Preparer Nguyen Thi Thu Hien Chief Accoutant Duong Thi Mai Hoa Chief Executive Officer 25 March VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

64 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED CASH FLOW STATEMENT(continued) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at 31 December 2016 and for the year then ended Code ITEMS Notes Current year Previous year 25 Payments for investments in other entities 41 (22,459,345,068,846) (20,185,422,456,828) (net of cash held by entity being acquired) 26 Proceeds from sale of investments in other 41 15,306,966,443,347 4,450,260,724,277 entities (net of cash held by entity being disposed) 27 Interest and dividends received 1,107,787,615,493 1,152,731,210, Net cash flows used in investing activities (830,527,865,324) (39,098,480,790,940) III. CASH FLOWS FROM FINANCING ACTIVITIES 31 Capital contribution and issuance of shares 41 1,310,346,390,000 7,544,319,623, Drawdown of borrowings 20,814,923,248,321 20,664,801,635, Repayment of borrowings (21,563,433,421,832) (16,711,194,036,085) 36 Dividends paid to equity holders 41 (1,339,903,941,515) (974,185,674,300) 40 Net cash flows (used in)/from financing (778,067,725,026) 10,523,741,548,237 activities 50 Net increase/(decrease) for the year 2,889,951,045,623 (671,798,735,204) 60 Cash and cash equivalents at the beginning 6,938,465,104,490 7,607,513,719,673 of the year 61 Impact of exchange rate fluctuation 4,916,069,288 2,750,120, Cash and cash equivalents at the end of the year 5 9,833,332,219,401 6,938,465,104, CORPORATE INFORMATION Vingroup Joint Stock Company ( the Company ) is a joint stock company established in Vietnam pursuant to the Business Registration Certificate No issued by the Hanoi Department of Planning and Investment on 3 May 2002 and the Business Registration Certificate No re-issued on 12 May The Company subsequently received amended Enterprise Registration Certificates, with the latest amendment being the 63th amended Enterprise Registration Certificate dated 28 February The Company s shares were officially listed on the Ho Chi Minh Stock Exchange ( HOSE ) from 19 September 2007 in pursuant to Decision No.106/QD-TTGDHCM issued by the Director of HOSE on 7 September The current principal activities of the Company are to invest in, construct and trade real estate properties; to carry out capital mobilization and investment activities; and to provide general administrative services. Current principal activities of the Company s subsidiaries are presented in Appendix 1. The Group s normal course of business cycle of real estate business starts at the time of application for investment certificate, commencement of site clearance, construction and ends at the time of completion. Thus, the Group s normal couse of business cycle of real estate trading is from 12 to 36 months. The Group s normal course of business cycle of other business activities is 12 months. As at 31 December 2016, the Company has 62 subsidiaries. The information on these subsidiaries, along with the Company s voting rights and equity interest in each subsidiary are detailed in the Appendix 1. As at 31 December 2016, the Group also holds investments in a number of associates as disclosed in Note BASIS OF PREPARATION 2.1 Accounting standards and system The consolidated financial statements of the Company and its subsidiaries (the Group ) expressed in Vietnam dong ( VND ) are prepared in accordance with Vietnamese Enterprise Accounting System and Vietnamese Accounting Standard issued by the Ministry of Finance as per: Decision No. 149/2001/QD-BTC dated 31 December 2001 on the Issuance and Promulgation of Four Vietnamese Accounting Standards (Series 1); Decision No. 165/2002/QD-BTC dated 31 December 2002 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 2); Decision No. 234/2003/QD-BTC dated 30 December 2003 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 3); Decision No. 12/2005/QD-BTC dated 15 February 2005 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 4); and Decision No. 100/2005/QD-BTC dated 28 December 2005 on the Issuance and Promulgation of Four Vietnamese Accounting Standards (Series 5). Ngo Nguyet Hang Preparer 25 March 2017 Nguyen Thi Thu Hien Chief Accoutant Duong Thi Mai Hoa Chief Executive Officer The Company s head office is registered at No. 7, Bang Lang 1 street, Vinhomes Riverside Eco-urban Area, Viet Hung ward, Long Bien district, Hanoi, Vietnam. Its branch is located at No. 72, Le Thanh Ton and No. 45A, Ly Tu Trong street, Ben Nghe ward, district 1, Ho Chi Minh city, Vietnam. The number of the Group s employees as at 31 December 2016 is: 333 (31 December 2015: 482). Accordingly, the accompanying consolidated financial statements, including their utilisation are not designed for those who are not informed about Vietnam s accounting principles, procedures and practices and furthermore are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries other than Vietnam. 124 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

65 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 2.2 Applied accounting documentation system The Company s applied accounting documentation system is the General Journal. 2.3 Fiscal year The Group s fiscal year applicable for the preparation of its consolidated financial statements starts on 1 January and ends on 31 December. 2.4 Accounting currency The consolidated financial statements are prepared in VND which is also the Company s accounting currency. the Group s investment is accounted for using the equity method of accounting. Profit/loss from this transaction is recognised in the consolidated income statement. In case the Group disposes a partial interest in a subsidiary and loses control but retains an interest as an investment in other entities, the Group s investment is accounted for using the cost method. Profit/loss from this transaction is recognised in the consolidated income statement. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 3.1 Changes in accounting policies and disclosures property transfer taxes, construction overheads and other related costs. Net realisable value is the estimated selling price in the ordinary course of the business, based on market prices at the reporting date and less estimated costs to completion and the estimated costs of sale. The cost of inventory recognised in profit or loss on disposal is determined with reference to the specific costs incurred on the property sold and an allocation of any nonspecific costs based on the appropriate basis. Other inventories are doubtful of being recovered. Increases and decreases to the provision balance are recorded as general and administrative expense in the consolidated income statement. 3.5 Tangible fixed assets Tangible fixed assets are stated at cost less accumulated depreciation. The cost of a tangible fixed asset comprises its purchase price and any directly attributable costs of bringing the tangible fixed asset to working condition for its intended use. 2.5 Basis of consolidation The consolidated financial statements comprise the financial statements of the Company and its subsidiaries for the year ended 31 December Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continued to be consolidated until the date that such control ceases, except for temporary controls when a subsidiary is acquired and held exclusively with a view to resale within 12 months. The financial statements of the subsidiaries are prepared for the same reporting year as the parent company, using consistent accounting policies. All intra-company balances, income and expenses and unrealised gains or losses resulting from intra-company transactions are eliminated in full. Non-controlling interests represent the portion of profit or loss and net assets not held by the Group and are presented separately in the consolidated income statement and within equity in the consolidated balance sheet, separately from parent shareholders equity. Impact of change in the ownership interest of a subsidiary, without a loss of control, is recorded in undistributed earnings. The accounting policies adopted by the Group in preparation of the consolidated financial statements are consistent with those followed in the preparation of the Group s consolidated financial statements for the year ended 31 December Cash and cash equivalents Cash and cash equivalents comprise cash on hand, cash at banks and short-term, highly liquid investments with an original maturity of no longer than three months that are readily convertible into known amounts of cash and that are subject to an insignificant risk of change in value. 3.3 Inventories Inventory property Property acquired or being constructed for sale in the ordinary course of business or for long-term lease qualified for recognition of outright sales, rather than to be held for rental or capital appreciation, is held as inventory and is measured at the lower of cost incurred in bringing the inventories to their present location and condition, and net realisable value. Cost includes: Freehold and leasehold rights for land; Amounts paid to contractors for construction; and Inventories are carried at the lower of cost incurred in bringing each product to its present location and condition and net realisable value. Net realisable value represents the estimated selling price in the ordinary course of business less the estimated costs to complete and the estimated costs necessary to make the sale. The perpetual method is used to record the costs of other inventories, cost of other inventories is valued at the cost of purchase, on weighted average basis. Provision for obsolete inventories An inventory provision is created for the estimated loss arising due to the impairment of value (through diminution, damage, obsolescence, etc.) of raw materials, finished goods, and other inventories owned by the Group, based on appropriate evidence of impairment available at the consolidated balance sheet date. Increases and decreases to the provision balance are recorded into the cost of goods sold account in the consolidated income statement. 3.4 Receivables Receivables are presented in the consolidated financial statements at the carrying amounts due from customers and other debtors, after provision for doubtful debts. Expenditures for additions, improvements and renewals are added to the carrying amount of the assets and expenditures for maintenance and repairs are charged to the consolidated income statement as incurred. When tangible fixed assets are sold or retired, any gain or loss resulting from their disposal (the difference between the net disposal proceeds and the carrying amount) is included in the consolidated income statement. 3.6 Leased assets The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at inception date and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset and the arrangement conveys a right to use the asset. A lease is classified as a finance lease whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the asset to the lessee. All other leases are classified as operating leases. here the roup is the lessee Rentals under operating leases are charged to the consolidated income statement on a straight-line basis over the lease term. In case the Group disposes a partial interest in a subsidiary and loses control but retains an interest as an associate, Borrowing costs, planning and design costs, costs of site preparation, professional fees for legal services, The provision for doubtful debts represents amounts of outstanding receivables at the balance sheet date which 126 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

66 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS hen the roup is the lessor Assets subject to operating leases are included as the Group s investment properties in the consolidated balance sheet. Initial direct costs incurred in negotiating an operating lease are recognised in the consolidated income statement as incurred. Lease income is recognised in the consolidated income statement on a straight-line basis over the lease term. 3.7 Intangible fixed assets Development expenditure on an individual project is recognised as an intangible fixed asset only if the Group can demonstrate all of the following conditions: The technical feasibility study of completing the intangible fixed asset so that it will be available for use or sale; The intention to complete and use or sell the intangible fixed asset; The ability to use or sell the intangible fixed asset; No amortisation is charged on the land use rights with indefinite terms. (i) During the year, the Group changed its estimation of the useful life of the E-commerce website as the Group has planned to replace and upgrade this Website. 3.9 Investment properties Investment properties are stated at cost, including transaction costs, less accumulated depreciation and/or amortisation. made from investment properties when, and only when, there is change in use, evidenced by commencement of owner-occupation or commencement of development with a view to sale. The transfer from investment property to owner-occupied property or inventories does not change the cost or the carrying value of the property for subsequent accounting at the date of change in use Borrowing costs Borrowing costs consist of interest and other costs that the Group incurs in connection with the borrowing of funds. Intangible fixed assets are stated at cost less accumulated amortisation. The cost of an intangible fixed asset comprises of its purchase price and any directly attributable costs of preparing the intangible asset for its intended use. Expenditures for additions, improvements are added to the carrying amount of the assets and other expenditures are charged to the consolidated income statement as incurred. The asset will generate probable future economic benefits; The availability of resources to complete the development and to use or sell the intangible fixed asset; The ability to measure reliably the expenditure during the development; and Subsequent expenditure relating to an investment property that has already been recognised is added to the net book value of the investment property when it is probable that future economic benefits, in excess of the originally assessed standard of performance of the existing investment property, will flow to the Group. Depreciation of investment properties is calculated on a straight-line basis over the estimated useful life of each asset as follows: Borrowing costs are recorded as expense during the year in which they are incurred, except to the extent that they are capitalised as explained in the following paragraph. Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that necessarily take a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective asset. When intangible fixed assets are sold or retired, any gain or loss resulting from their disposal (the difference between the net disposal proceeds and the carrying amount) is included in the consolidated income statement. Land use rights They are estimated to meet all criteria for use duration and value prescribed for intangible fixed asset. Development costs capitalised as asset are stated at cost less accumulated amortisation. Amortisation of the asset begins when development is completed and the asset is available for use. Buildings and structures 5-48 years Machinery and equipment 8-15 years Amortisation of definite land use rights presented as investment properties is calculated on a straight-line basis over granted period from 25 to 48 years Prepaid expenses Prepaid expenses are reported as short-term or longterm prepaid expenses on the consolidated balance sheet and amortised over the period for which the amounts are paid or the period in which economic benefits are generated in relation to these expenses. Definite and indefinite land use rights are recorded as intangible fixed assets based on land use right certificates issued by governing bodies. The prepayment for land rental, of which the land lease contracts have effectiveness prior to 2003 and Land use right certificate being issued, are recorded as intangible fixed asset according to Circular No. 45/2013/TT-BTC issued by the Ministry of Finance on 25 April 2013 guiding the management, use and depreciation of fixed assets ( Circular 45 ). 3.8 Depreciation and amortisation Depreciation and amortisation of tangible fixed assets and intangible fixed assets are calculated on a straight-line basis over the estimated useful life of each asset as follows: Buildings and structures 5-50 years Machinery and equipment 3-15 years Means of transportation 3-12 years Office equipment 3-8 years No amortisation is charged on the land use rights presented as investment properties with indefinite terms. Investment properties are derecognised when either they have been disposed of or when the investment properties are permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the assets is recognised in the consolidated income statement in the year of retirement or disposal. Long-term prepaid expenses include long-term prepaid land rental, pre-operation expenditure, tools and supplies, and other prepaid expenses that bring future economic benefits for more than one year. Prepaid land rental represents the unamortised balance of advance payment made in accordance with Land Rental Contract signed with authorities. Such prepaid land rental is recognised as long-term prepaid expenses for allocation to the consolidated income statement over the remaining lease period according to Circular 45. Research and development costs Research costs and development costs that do not meet the capitalisation criteria are recognised as expensed in the consolidated income statement as incurred. E-commerce website (i) 2-20 years Computer software 3-10 years Land use rights with definite term years Distribution rights, copyright and others 3-15 years Transfers are made to investment properties when, and only when, there is a change in use, evidenced by ending of owner-occupation or readiness for sale, commencement of an operating lease to another party or ending of construction or development. Transfers are 128 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

67 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 3.12 Business combinations and goodwill Business combinations are accounted for using the purchase method. The cost of a business combination is measured as the fair value of assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange plus any costs directly attributable to the business combination. Identifiable assets and liabilities and contingent liabilities assumed in a business combination are measured initially at fair values at the date of business combination. In case prior to the date that control is obtained, the investment is an investment in associate or a long-term investment and the acquisition of that subsidiary is a business combination, when preparing the consolidated financial statements, the Group shall remeasure its previously held equity interests at its acquisition-date fair value and recognise the resulting gain or loss, if any, in the consolidated income statement. Goodwill acquired in a business combination is initially measured at cost being the excess of the cost the business combination over the Group s interest in the net fair value of the acquiree s identifiable assets, liabilities and contingent liabilities. If the cost of a business combination is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the consolidated income statement. After initial recognition, goodwill is measured at cost less any accumulated amortisation. Goodwill is amortised over 10- year period on a straight-line basis. The Group annually carries out test of impairment of goodwill, and if there is indicator that the impairment amount is higher than the annual amortisation, the excess of goodwill impairment over annual amortisation shall be expended in the period. ssets ac uisi ons and business co bina ons The Group acquires subsidiaries that own real estate and production projects. At the time of acquisition, the Group considers whether the acquisition represents the acquisition of a business. The Group accounts for an acquisition as a business combination where an integrated set of activities is acquired in addition to the property. When the acquisition of subsidiaries does not represent a business combination, it is accounted for as an acquisition of a group of assets and liabilities. The cost of the acquisition is allocated to the assets and liabilities acquired based upon their relative fair values, and no goodwill or deferred tax is recognised. In case prior to the date that control is obtained, the investment is an investment in associate or a long-term investment and the acquisition of the subsidiary is not a business combination, when preparing the consolidated financial statements, the Group shall not remeasure the previously held equity interests. Instead previously held equity interests and the consideration were allocated to the assets and liabilities acquired based on their relative fair values on acquisition date. Business co bina ons in ol in en es under co on control Business combinations involving entities under common control are accounted for as follows: The assets and liabilities of the two combined entities are reflected at their carrying amounts on the date of business combination; No goodwill is recognised from the business combination; The consolidated income statement reflects the results of the combined entities from the date of the business combination; and Any difference between the consideration paid and the net assets of the acquiree is recorded in equity Investments Investment in associates The Group s investment in its associate is accounted for using the equity method of accounting. An associate is an entity in which the Group has significant influence that are neither subsidiaries nor joint ventures. The Group generally deems they have significant influence if they have over 20% of the voting rights in the investee. Under the equity method, the investment is carried in the consolidated balance sheet at cost plus post-acquisition changes in the Group s share of net assets of the associates. Goodwill arising on acquisition of the associate is included in the carrying amount of the investment. The Group does not charge any amortisation on the goodwill, but annually carries out test of impairment of goodwill. The consolidated income statement reflects the Group s share of the post-acquisition results of operation of the associate. The share of post-acquisition profit/(loss) of the associates is presented on face of the consolidated income statement and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Dividend/profit sharing receivable from associates reduces the carrying amount of the investment. The financial statements of the associates are prepared for the same reporting year as the Group and using the consistent accounting policies with the Group. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group. The Group ceases the use of the equity method of accounting since the date it no longer has significant influence over the associate. If the retained equity interest is a long-term investment, the entity measures the retained equity interest at fair value regarded as the cost on initial recognition. Profit/loss from the disposal of associate is recognised in the consolidated income statement. Investments in joint ventures The Group s investment in joint ventures is accounted for using the equity method of accounting. Under the equity method, the investment is carried in the consolidated balance sheet at cost plus post joint ventures changes in the Group s share of net assets of the joint ventures. The consolidated income statement reflects the share of the post-acquisition results of operation of the joint ventures. The share of profit/(loss) of the joint ventures is presented on face of the consolidated income statement and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Dividend/profit sharing received or receivable from jointly controlled entities reduces the carrying amount of the investment. The financial statements of the joint ventures are prepared for the same reporting period and use the same accounting policies as the Group. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group. n est ents in securi es and in est ent in other en es Investments in securities and investment in other entities are stated at their acquisition costs. Pro ision for tradin securit and in est ent in securi es Provision is made for any diminution in value of the heldfor-trading securities and investments in capital of other entities at the balance sheet date in accordance with the guidance under Circular No. 228/2009/TT-BTC dated 7 December 2009 and Circular No. 89/2013/TT-BTC dated 28 June 2013 issued by the Ministry of Finance. Increases and decreases to the provision balance are recorded as finance expense in the consolidated income statement. Held-to-maturity investment Held-to-maturity investments are stated at their acquisition costs. After initial recognition, these investments are measured at recoverable amount. Any impairment loss incurred is recognised as expense and deducted against the value of such investments Payables and accruals Payables and accruals are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Group Accrual for severance pay The severance pay to employee is accrued at the end of each reporting period for all employees who have been more than 12 months in service up to balance sheet date at the rate of one-half of the average monthly salary for each year of service up to 31 December 2008 in accordance with the Labour Code, the Law on Social Insurance and related implementing guidance. The average monthly salary used in this calculation will be revised at the end of each reporting period following the average monthly salary of the 6-month period up to the reporting date. Any changes to the accrued amount will be taken to the consolidated income statement. 130 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

68 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS This accrued severance pay is used to settle the termination allowance to be paid to employee upon termination of their labour contract following Article 48 of the Labour Code Provisions General provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Group expects some or all of a provision to be reimbursed by a third party, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the consolidated income statement net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Provision for warranty expenses for apartments and villas The Group estimates provision for warranty expenses based on revenues and available information about the repair of real estate properties sold in the past Convertible bond Bonds that are convertible by the holder into a fixed number of ordinary shares of the entity are separated into financial liability (a contractual arrangement to deliver cash or another financial asset) and equity instrument (a call option granting the holder the right, for a specified period of time) based on the terms of the contract. In cases where the numbers of ordinary shares to be converted is not fixed, the entire convertible bonds are classified as a financial liability. On issuance of the convertible bond, the fair value of the liability component is determined by discounting the future payment (including principal and interest) to present value at the market rate for an equivalent non-convertible bond less issuance cost. This amount is classified as a financial liability measured at amortised cost (net of transaction costs) until it is extinguished on conversion or redemption. The remainder of the proceeds is allocated to the conversion option that is recognised and included in shareholders equity. The carrying amount of the conversion option is not re-measured in subsequent years. Transaction costs are allocated during the lifetime of the bond following straight line basis. At initial recognition, issuance costs are deducted from the liability component of the bond Foreign currency transactions Transactions in currencies other than the Group s reporting currency of VND are recorded at the actual transaction exchange rates at transaction dates which are determined as follows: Transaction resulting in receivables are recorded at the buying exchange rates of the commercial banks designated for collection; Transactions resulting in liabilities are recorded at the selling exchange rates of the transaction of commercial banks designated for payment; and Payments for assets or expenses without liabilities initially being recognised is recorded at the buying exchange rates of the commercial banks that process these payments. At the end of the year, monetary balances denominated in foreign currencies are translated at the actual transaction exchange rates at the consolidated balance sheet dates which are determined as follows: Monetary assets are translated at buying exchange rate of the commercial bank where the Group conducts transactions regularly; Monetary liabilities are translated at selling exchange rate of the commercial bank where the Group conducts transactions regularly. All foreign exchange differences incurred during the year and arised from the translation at the end of the year are taken to the consolidated income statement Treasury shares Own equity instruments which are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain or loss is recognised upon purchase, sale, issue or cancellation of the Group s own equity instruments Appropriation of net profits Net profit after tax (excluding gain from bargain purchases) is available for appropriation to shareholders after approval in the annual general meeting, and after making appropriation to reserve funds in accordance with the Charters of the Company and its subsidiaries and the Vietnamese regulatory requirements. The Group maintains the reserve funds which are appropriated from the Group s net profit as proposed by the Board of Directors and subject to approval by shareholders at the annual general meeting Advances from customers Payments received from customers as deposits for the purchase of residential properties in the future that do not meet the conditions for revenue recognition, are recognised and presented as Advances from customers in the liability section of the consolidated balance sheet Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, excluding trade discount, rebate and sales return. The following specific recognition criteria must also be met before revenue is recognised. Revenue from sale of inventory property Revenue from sale of inventory property is recognised when the significant risks and rewards incident to ownership of the properties have passed to the buyer. Revenue from sale of inventory property also includes long-term lease of inventory property qualified for recognition of outright sales. If the lease-term is greater than 90% of the asset s useful life, the Group will recognise the revenue for the entire prepaid lease payment if all of the following conditions are met: Lessee is not allowed to cancel the lease contract during the lease term, and the lessor is not reponsible for reimbursing the prepaid lease payments under any circumstances; The prepaid lease payment is not less than 90% of the total estimated lease payment collected under contract over the lease period and lessee must pay all rental within 12 months from the commencement of the lease; Almost all risks and rewards associated with the ownership of leased assets are transferred to the lessee; and Lessor must estimate the full cost of leasing activity. e enue fro leasin of proper es Rental income arising from leased properties is recognised in the consolidated income statement on a straight line basis over the lease terms on ongoing leases. Sale of goods Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually upon the delivery of the goods. Rendering of services Revenue from hotel, amusement park, education, beauty, hospital, real estate management and other related services is recorded when the services are rendered. When the outcome of the contract is certainly determined, revenue will be recognised based on percentage of completion. ains fro securi es tradin capital transfer Gains from securities trading and capital transfer are determined as the excess of selling prices against the cost of securities sold. Such gains are recognised on the trade date when the relevant contracts are executedinterest 132 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

69 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS Revenue is recognised as the interest accrues (taking into account the effective yield on the asset) unless collectability is in doubt. Dividends Income is recognised when the Group s entitlement as an investor to receive the dividend is established Construction contract Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the consolidated balance sheet date based on the construction works as certified by customers. Variations in contract work, claims and incentive payments are included to the extent that they have been agreed with the customer. Current income tax assets and liabilities are offset when there is a legally enforceable right for the Group to offset current tax assets against current tax liabilities and when the Group intends to settle its current tax assets and liabilities on a net basis. Deferred income tax Deferred tax is provided on temporary differences at the consolidated balance sheet date between the tax base of assets and liabilities and their carrying amount for financial reporting purposes. Deferred tax liabilities are recognised for all taxable temporary differences, except: where the deferred tax liability arises from the initial recognition of an asset or liability in a transaction which at the time of the transaction affects neither the accounting profit nor taxable profit or loss; and The carrying amount of deferred tax assets is reviewed at each consolidated balance sheet date and reduced to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Previously unrecognised deferred income tax assets are re-assessed at each consolidated balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset realised or the liability is settled based on tax rates and tax laws that have been enacted at the consolidated balance sheet date. Deferred tax is charged or credited to the consolidated income statement, except when it relates to items recognised directly to equity, in which case the deferred tax is also dealt with in the equity account. 4. SIGNIFICANT ACQUISITIONS AND DISPOSALS DURING THE YEAR 4.1 Acquisition of group of assets During the year, the Group has acquired shares/equity interest of the following companies from individuals and corporate counterparties. Management has reviewed and assessed that the acquisition of shares/equity interest of these companies is the acquisition of group of assets, rather than business combination. The total consideration for each of these acquisitions was allocated to the assets and liabilities acquired based on their relative fair values at acquisition date. Accordingly, a part of consideration was recognised in construction in progress (Note 18). The non-controlling interests were also recognised at their relative proportion of the interests in the assets and liabilities acquired. These acquired assets and liabilities are presented in the same categories as other similar assets and liabilities held by the Group. Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that is probably recoverable. Contract costs are recognised as expenses in the year in which they are incurred. Difference between the cumulative revenue of a construction contract recognised to date and the cumulative amount of progress billings of that contract is presented as construction contract receivable/payable based on agreed progress billings in the consolidated balance Taxation Current income tax Current income tax assets and liabilities for the current and year periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted as at the consolidated balance sheet date. Current income tax is charged or credited to the consolidated income statement, except when it relates to items recognised directly to equity, in which case the current income tax is also dealt with in equity. in respect of taxable temporarily differences associated with investments in subsidiaries and associates, and interests in joint ventures where timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognised for all deductible temporary differences, carried forward unused tax credit and unused tax losses, to the extent that it is probable that taxable profit will be available against which deductible temporary differences, carried forward unused tax credit and unused tax losses can be utilised, except: where the deferred tax asset arises from the initial recognition of an asset or liability which at the time of the related transaction, affects neither the accounting profit nor taxable profit or loss at the time transaction incurred; and in respect of deductible temporarily differences associated with investments in subsidiaries and associates, and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profits will be available against which the temporary differences can be utilised. Deferred tax assets and liabilities are offset when there is a legally enforceable right for the Group to offset current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on: either the same taxable entity; or when the Group intends either settle current tax liabilities and assets on a net basis or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered Segment information A segment is a component determined separately by the Group which is engaged in providing products or related services (business segment), that is subject to risks and returns that are different from those of other segments. Management defines the Group s segment report to be based on type of products and services provided. c uisi on of reen Cit e elop ent C reen Cit C a new subsidiary On 15 July 2016, the Group accquired 40% shares of Green City JSC from individuals with total consideration of VND1,242 billion, which increased the ownership interest of the Group in this company from 49.1% to 89.1% and thereby, Green City JSC became a subsidiary of the Group. At the date of acquisition, Green City JSC was the owner of a real-estate project under development in District 9, Ho Chi Minh city, Vietnam. Subsequently, on 12 Dec 2016, the Group acquired additional 8.9% shares of Green City JSC from Ecology JSC with total consideration of VND203 billion. This transaction increased the ownership interest of the Group in Green City JSC to 98%. On 30 Dec 2016, the Group disposed of all shares in Green City JSC (Note 4.4). c uisi on of Can io C a ne subsidiar On 30 August 2016, the Group acquired additional 62.25% shares of Can Gio JSC from a corporate counterparty and individuals with total consideration of VND8,474 billion, 134 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

70 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS which increased the ownership interest of the Group in this company to 97.15% and thereby, Can Gio JSC became a subsidiary of the Group. At the date of acquisition, Can Gio JSC was the owner of a potential real-estate project located in Long Hoa commune, Can Gio district, Ho Chi Minh city, Vietnam. c uisi on of ai inh ner C a ne subsidiar On 27 September 2016, the Group acquired 100% shares of Hai Linh Energy JSC from individuals with total consideration of VND113 billion and thereby, Hai Linh Energy JSC became a subsidiary of the Group. c uisi on of an Phat C a ne subsidiar On 18 October 2016, the Group accquired 90% shares of Van Phat JSC from individuals with total consideration of VND106 billion and thereby, Van Phat JSC became a subsidiary of the Group. At the date of acquisition, Van Phat was the owner of a seafood and eco-tourism development project in Lac Duong district, Lam Dong province, Vietnam. c uisi on of Central Par C a ne subsidiar On 24 October 2016, the Group acquired 100% voting rights of Central Park LLC from a corporate counterparty with total consideration of VND130 billion and thereby, Central Park LLC became a subsidiary of the Group. At the date of acquisition, Central Park LLC was the owner of a potential real-estate project in Nam Tu Liem district, Hanoi, Vietnam. c uisi on of han on eal state C a ne subsidiar On 29 December 2016, the Group acquired addtional 28% shares of Thang Long Real Estate JSC from corporate counterparties with total consideration of VND32.2 billion, which increased the ownership interest of the Group in this company to 63% and thereby, Thang Long Real Estate JSC became a subsidiary of the Group. At the date of acquisition, Thang Long Real Estate JSC was the owner of a potential real-estate project located in Thanh Xuan district, Hanoi, Vietnam. 4.2 Business combination c uisi on of oa on an ricultural Foodstu oint toc Co pan oa on an C a ne subsidiar On 1 February 2016, the Group acquired 100% shares of Hoa Hong Vang JSC from individuals with total consideration of VND21 billion. Subsequently, on 1 April 2016, Hoa Hong Vang JSC was merged into VinEco LLC, another subsidiary. The principal activities of Hoa Hong Vang JSC are to manufacture and operate in breeding and trading agricultural products. On 31 December 2016, the Group has completed determining the fair value of identifiable assets, liabilities or contingent liabilities of Hoa Hong Vang JSC at the date of acquisition. The fair values of identifiable assets and liabilities of Hoa Hong Vang JSC at the acquisition date were as below: Fair value recognised at acquisition date Fair value recognised at acquisition date Total purchase consideration 21,000,000,000 Analysis of cash flows on acquisition Cash of the acquired subsidiary 2,595,162 Cash paid for acquiring the subsidiary up to 31 December 2016 (21,000,000,000) Net cash flow used in acquisition (20,997,404,838) Total consideration of VND21 billion was fully paid in cash. Hoa Hong Vang JSC did not have any gains/losses from the acquisition date to 1 April 2016 (the date on which Hoa Hong Vang JSC was merged into VinEco LLC). c uisi on of oan an Produc on Co erce er ices oint On 31 December 2016, the Group has completed toc Co pan oan an C a ne subsidiar determining the fair value of identifiable assets, liabilities or contingent liabilities of Hoang Lan JSC at the date of On 3 February 2016, the Group acquired 100% shares of acquisition. The fair values of identifiable assets and Hoang Lan JSC with total consideration of VND28 billion. liabilities of Hoang Lan JSC at the acquisition date were Subsequently, on 1 April 2016, Hoang Lan JSC was merged as below: into VinEco LLC, another subsidiary. The principal activities of Hoang Lan JSC are to manufacture and operate in breeding and trading agricultural products. Fair value recognised at acquisition date Assets Cash 5,249,900 Short-term trade receivables 106,250,100 Tangible fixed assets 104,178,218 Construction in progress 265,145,780 Other current assets 682,500,000 1,163,323,998 Assets Cash 2,595,162 Inventories 40,601,290 Other current assets 42,507,605 Tangible fixed assets 3,093,131,896 3,178,835,953 Liabilities Trade payables 32,734,031 Total identifiable net assets 3,146,101,922 Non-controlling interests 5,251,545,265 Goodwill from business combination (Note 20) 12,602,352,813 Liabilities - Total identifiable net assets 1,163,323,998 Non-controlling interests 7,893,739,404 Goodwill from business combination (Note 20) 18,942,936,598 Total purchase consideration 28,000,000,000 Analysis of cash flows on acquisition Cash of the acquired subsidiary 5,249,900 Cash paid for acquiring the subsidiary up to 31 December 2016 (25,200,000,000) Net cash flow used in acquisition (25,194,750,100) Total consideration of VND28 billion was partly paid in cash. Hoang Lan JSC did not have any gains/losses from the acquisition date to 1 April 2016 (the date on which Hoang Lan JSC is merged into VinEco LLC). 136 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

71 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS c uisi on of a ina C a ne subsidiar On 27 April 2016, the Group acquired 65.33% shares of Savina JSC through equitisation of the Savina One Member Limited Liability Company with total consideration of VND475 billion and thereby, Savina JSC became the Group s subsidiary. The principal activities of Savina JSC are to trade books and related items and lease offices. At 31 December 2016, the Group is in the process of determining the fair value of identifiable assets, liabilities or contingent liabilities of Savina JSC at the date of acquisition. Therefore, the Group applied provisional accounting method to consolidate this company. The provisional fair values of identifiable assets and liabilities of Savina JSC at the acquisition date were as below: (3) associates and one (1) joint venture. Through this transaction, the Group indirectly owned these subsidiaries and the investments in these associates and joint venture of Truong Thanh Furniture Corporation. The principal acitivities of Truong Thanh Furniture Corporation are to cultivate, manufacture, trade and provide services related to wood products. On 30 November 2016, the Group disposed 20% shares of Truong Thanh Furniture Corporation via the stock exchange market as presented at Note 4.4. At 31 December 2016, the provisional fair values of identifiable assets and liabilities of Truong Thanh Furniture Corporation and its subsidiaries at the acquisition date are presented below: Provisional fair value recognised at acquisition date Provisional fair value recognised at acquisition date Assets Cash and cash equivalents 699,919,715,320 Tangible fixed assets 25,300,885,704 Investment in associates (Note ) 3,239,919,511 Other assets 29,942,765, ,403,286,046 Liabilities Short-term accrued expenses 43,960,667,647 Other liabilities 19,065,137,296 Total identifiable net assets 695,377,481,103 Non-controlling interests (241,087,372,698) Goodwill from business combination (Note 20) 20,875,503,395 Total purchase consideration 475,165,611,800 Analysis of cash flows on acquisition Cash of the acquired subsidiary 699,919,715,320 Cash paid for acquiring the subsidiary up to 31 December 2016 (475,165,611,800) Net cash flow from acquisition 224,754,103,520 Total consideration of VND475 billion was fully paid in cash. Profit before tax of Savina JSC for the period from the aquisition date to 31 December 2016 is VND11.2 billion. Assets Cash and cash equivalents 93,926,385,484 Short-term trade receivables 830,701,338,982 Short-term advances to suppliers 94,693,381,345 Other short-term receivables 73,705,752,271 Provision for doubtful short-term receivables (444,503,276,174) Inventories 1,774,315,136,359 Provision for obsolete inventories (67,613,918,513) Tangible fixed assets 473,926,197,028 Investments in associates, jointly controlled entities (Note ) 239,135,473,000 Long-term prepaid expenses 51,835,171,758 Other assets 149,330,298,297 3,269,451,939,837 Liabilities Short-term trade payables 424,164,774,172 Short-term advances from customers 97,770,799,574 Statutory obligations 72,410,986,804 Short-term accrued expenses 190,437,394,932 Short-term other payables 55,266,732,950 uisi on of ruon hanh Furniture Corpora on a ne subsidiary On 11 May 2016, the Group acquired 49.9% shares of Truong Thanh Furniture Corporation via the stock exchange market with total consideration of VND1,282 biilion. In addition, on 11 May 2016, the Group held two convertible loans due from Truong Thanh Furniture Corporation with total value of VND1,209 billion. Conversion options of these loans had been effective since 11 May 2016 and entitled the Group to convert these loans into ordinary shares of Truong Thanh Furniture Corporation and thereby, additionally increased potential voting rights and equity interests of the Group in Truong Thanh Furniture Corporation by 16.3%. Based on the terms of the convertible loan contracts, the Group has consolidated the financial statements of Truong Thanh Furniture Corporation and its subsidiaries by the Group s equity interests in Truong Thanh Furniture Corporation of 66.2%, including potential equity interest as mentioned above. At 11 May 2016, Truong Thanh Furniture Corporation held investments in fifteen (15) subsidiaries, three Short-term loan and finance lease obligations 1,035,638,185,385 Others 96,209,846,719 Total identifiable net assets 1,297,553,219,301 Non-controlling interests (51,032,481,966) Goodwill from business combination (Note 20) 1,244,602,203,203 Total purchase consideration 2,491,122,940,538 Analysis of cash flows on acquisition Cash of the acquired subsidiary 93,926,385,484 Cash paid for acquiring the subsidiary up to 31 December 2016 (1,282,369,317,454) Net cash flow used in acquisition (1,188,442,931,970) 138 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

72 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS Total purchase consideration is VND2,491 billion, in which VND1,282 billion was paid in cash and VND1,209 billion was the value of the convertible loans. Loss before tax of Truong Thanh Furniture Corporation and its subsidiaries for the period from the acquisition date to the disposal date was VND276 billion. c uisi on of icentra C a ne subsidiar At 31 December 2016, the Group was in the process of determining the fair value of identifiable assets, liabilities On 28 October 2016, the Group increased its ownership or contingent liabilities of Vicentra JSC at the date of interest in Vicentra JSC to 63.15% with total consideration acquisition. Therefore, the Group applied provisional of VND2,780 billion and thereby, Vicentra JSC became a accounting method to consolidate this company. The subsidiary of the Group. provisional fair values of identifiable assets and liabilities of Vicentra JSC at the acquisition date are presented below: The principal activities of Vicentra JSC are to invest, construct, trade and lease real estate properties. Provisional fair value recognised at acquisition date Provisional fair value recognised at acquisition date Total purchase consideration 4,529,596,620,800 Analysis of cash flows on acquisition Cash of the acquired subsidiary 1,206,813,935,768 Cash paid for acquiring the subsidiary up to 31 December 2016 (2,780,146,560,000) Net cash flow used in acquisition (1,573,332,624,232) Total purchase consideration is VND4,529 billion, in which VND2,780 billion was paid in cash and VND1,749 billion was the provisional fair value of 19% previously held equity interest of the Group in Vicentra JSC. On 31 December 2016, the provisional fair value of this previously held equity interest was equal to its carrying amount. Profit before tax of Vicentra JSC for the period from the acquisition date to 31 December 2016 is VND2.8 billion. Assets Cash and cash equivalents 1,206,813,935,768 Short-term trade receivables 351,537,095,788 Short-term advances to suppliers 353,693,817,646 Short-term loan receivables 9,035,689,095,154 Other short-term receivables 367,459,130,437 Short-term prepaid expenses 451,958,808,456 Deferred tax assets 16,226,938,919 Other long-term receivables 3,877,365,333,333 Construction in progress 6,943,642,868,303 c uisi on of colo C a ne subsidiar On 15 December 2016, the Group acquired 81.75% shares of Ecology JSC from individuals with total consideration of VND6,083 billion, which increased ownership interests of the Group in Ecology JSC to 100% and thereby, Ecology JSC became a subsidiary of the Group. At 15 December 2016, Ecology JSC held investments in three (03) subsidiaries and one (01) associate. Through this transaction, the Group indirectly owned these subsidiaries and the investment in associate of Ecology JSC. The principal activities of Ecology JSC are to invest, construct, trade real estate properties, lease retail outlets and retail. The fair values of identifiable assets and liabilities of Ecology JSC and its subsidiaries at the acquisition date are presented below: Fair value recognised at acquisition date Other long-term assets 68,680,027,976 22,673,067,051,780 Liabilities Short-term trade payables (205,229,551,429) Short-term advances from customers (5,618,486,690,150) Statutory obligations (76,930,249,745) Short-term accrued expenses (599,409,802,823) Unearned revenues (61,496,125,387) Short-term other payables (2,453,417,592,577) Other long-term liabilities (122,676,287,778) Long-term loans and finance lease obligations (10,777,654,960,903) Other liabilities (77,848,901,682) Total identifiable net assets 2,679,916,889,306 Non-controlling interests (987,427,626,946) Asset Cash and cash equivalents 2,338,353,409,059 Short-term loan receivables 2,754,028,571,429 Other short-term receivables 602,152,156,518 Inventories 76,509,048,866 Short-term prepaid expenses 47,568,505,803 Tangible fixed assets 458,773,142,116 Investment properties (i) 1,034,743,457,884 Construction in progress (ii) 6,796,143,809,223 Investments in associates, jointly controlled entities (Note ) 872,488,610,366 Investment in other entities (Note ) 24,487,200,000 Other long-term assets 143,714,933,356 15,148,962,844,620 Goodwill from business combination (Note 20) 2,837,107,358, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

73 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS Fair value recognised at acquisition date Liabilities Short-term advances from customers 3,194,052,246,762 Statutory obligations 278,688,960,484 Other short-term payables 445,494,832,498 Short-term loan and finance lease obligations 612,090,490,328 Unearned revenues 1,117,438,026,615 Other current liabilities 96,051,655,826 Total identifiable net assets 9,405,146,632,107 Non-controlling interests (2,813,657,899,902) Goodwill from business combination (Note 20) 604,881,921,890 In which, goodwill allocated to: colo C ietna n est ent C - Gia Lam LLC - Phu Gia LLC Total purchase consideration 7,196,370,654,095 Analysis of cash flows on acquisition Cash of the acquired subsidiary 2,338,353,409,059 Cash paid for acquiring the subsidiary up to 31 December 2016 (6,083,290,122,800) Net cash flow used in acquisition (3,744,936,713,741) (i) Investment properties include the fair values of three shopping malls which were evaluated by an independent valuer; (ii) Construction in progress mainly includes the fair value at the acquisition date of Vinhomes Metropolis project located in Ba Dinh district, Hanoi. The fair value of this project was evaluated by an independent valuer. Total consideration is VND7,196 billion in which value and recognised finance income of VND548 billion VND6,083 billion was fully paid in cash and VND1,113 in the consolidated income statement (Note 30.3). billion was the fair value of 18.25% previously held Profit before tax of Ecology JSC for the period from the equity interest of the Group tin Ecology JSC. The Group acquisition date to 31 December 2016 is VND7.6 billion. remeasured this previously held equity interest at its fair 4.3 Acquisition of subsidiaries for the purpose of holding for resale c uisi on and transfer of ietna otus ndustrial and Co ercial n est ent oint toc Co pan ietna otus C On 6 January 2016, the Group acquired 100% shares of Vietnam Lotus JSC from corporate counterparties with total consideration of VND627 billion and thereby, Vietnam Lotus JSC became a subsidiary of the Group. The principal activities of Vietnam Lotus JSC are to develop and trade real estate properties. The Group assessed that the acquisition of Vietnam Lotus JSC is an acquisition with a view to resale within 12 months, and thereby, the Group only temporarily controlled Vietnam Lotus JSC. Accordingly, the Group did not consolidate the financial statements of this company. On 12 April 2016, the Group transferred all shares of Vietnam Lotus JSC with total consideration of VND627 billion to corporate counterparties. Profit/loss from this transfer was nil. c uisi on and transfer of ie nban rade nion n es ent oint toc Co pan ie nban rade nion n es ent C On 8 March 2016, the Group acquired 100% shares of Vietinbank Trade - Union Invesment JSC from corporate counterparties with total consideration of VND320 billion and thereby, Vietinbank Trade - Union Invesment JSC became a subsidiary of the Group. The principal activities of Vietinbank Trade - Union Invesment JSC are to develop and trade real estate properties. The Group assesses the acquisition of Vietinbank Trade - Union Invesment JSC is an acquisition with a view to resale within 12 months, and thereby, the Group only temporarily controlled Vietinbank Trade - Union Invesment JSC. Accordingly, the Group did not consolidate the financial statements of this company. On 5 May 2016, the Group transferred all shares of Vietinbank Trade - Union Invesment JSC with total consideration of VND320 billion to corporate counterparties. Profit/loss from this transfer was nil. 4.4 Significant disposals with loss of control educ on of e uit interest in and loss of control of inho es Real Estate Management Limited Liability Company inho es ana e ent C On 4 February 2016, the Group completed the merger transaction of ILF LLC into Vinhomes Management LLC under the contracts signed with individual counterparties, who were shareholders of ILF LLC, and thereby, reduced the Group s equity interest in Vinhomes Management LLC from 100% to 12.5%. As a result, the Group s investment in Vinhomes Management LLC was reclassified to investment in other entities (Note ). No profit/loss has been arised from this transaction. isposal of un o er e elop ent and n est ent oint toc Co pan un o er C and inacone ie el rban e elop ent oint toc Co pan inacone ie el C On 25 April 2016, the Group disposed 100% shares of Sunflower JSC and 100% shares of Vinaconex-Viettel JSC to individual counterparties with total consideration of VND5,680 billion. Gain from this disposal of VND85.6 billion was recognised in the consolidated income statement (Note 30.3). Disposal of Metropolis Limited Liability Company ( Metropolis C On 27 May 2016, the Group disposed 100% voting right of Metropolis LLC to a corporate counterparty with total consideration of VND979 billion. Previously, on 25 April 2016, Metropolis LLC was demerged into Metropolis LLC (the entity being demerged) and Newcosc LLC (the demerged entity). Gain from this disposal of VND164.8 was recognised in the consolidated income statement (Note 30.3). Disposal of Blue Star Urban Development and Commercial n est ent oint toc Co pan Blue tar C On 28 June 2016, the Group disposed 100% shares of Blue Star JSC to individuals and corporate counterparties with total consideration of VND4,499 billion. Blue Star JSC was a subsidiary which owned a complex real estate project. 142 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

74 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS Gain from this disposal of VND1,671 billion was recognised in the consolidated income statement (Note 30.3). isposal of on Phu un Binh huan oint toc Co pan on Phu un Binh huan C On 1 November 2016, the Group disposed 99% shares of Dong Phu Hung - Binh Thuan JSC to corporate counterparties with total consideration of VND495 billion. Gain from this disposal of VND103 billion was recognised in the consolidated income statement (Note 30.3). isposal of op hat roup oint toc Co pan op hat C On 25 November 2016, the Group disposed 79.96% shares of Hop Nhat JSC to a corporate counterparty with total consideration of VND348 billion. Gain from this disposal of VND112 billion was recognised in the consolidated income statment (Note 30.3). isposal of sado Business Coopera on and e elop ent Company ( ISADO LLC ) On 26 October 2016, the Group disposed 70% shares of ISADO LLC to an individual counterparty with total consideration of VND200 billion. ISADO LLC is the owner of a potential real estate project at H1-BV Vinhomes Riverside Eco-urban. Gain from this disposal of VND82.9 billion was recognised in the consolidated income statments (Note 30.3). isposal of ruon hanh Furniture Corpora on On 30 November 2016, the Group disposed 20% shares of Truong Thanh Furniture JSC via the stock exchange with total consideration of VND127 billion. Also, on 2 December 2016, the Group announced not to exercise the conversion option of the convertible loans due from Truong Thanh Furniture Corporation. Thereby, the equity interest of the Group in this company decreased to 29.90% and Truong Thanh Furniture Corporation became an associate of the Group. Gain from this disposal of VND209 billion was recognised in the consolidated income statement (Note 30.3). isposal of Phu uoc n es ent and e elop ent oint toc Co pan Phu uoc ouris C On 22 December 2016, the Group disposed 25% shares of Phu Quoc Tourism JSC to individual counterparties with total consideration of VND414 billion. Phu Quoc Tourism JSC was a subsidiary which owned hotels and hospitality real estate projects in Phu Quoc. Additionally, the Group entered into Business Cooperation Contracts with this company which specified that the Group is entitled to majority of interests and rights relating to a group of projects belonging to Phu Quoc Tourism JSC. The impact of these transactions decreased the undistributed earnings of the Group by VND356 billion. isposal of reen Cit C On 30 December 2016, the Group disposed 98% shares of Green City JSC to individual counterparties with total consideration of VND5,292 billion. Gain from this disposal of VND1,278 billion was recognised in the consolidated income statement (Note 30.3). 4.5 Completion of the provisional accounting for business combination c uisi on of ietna e le Fashion radin Co pan i ited inate t art C in In 2015, the Group acquired 100% shares of Vinatextmart LLC. On 1 June 2015, Vinatextmart LLC was merged into Vincommerce JSC, another subsidiary. At 31 December 2015, the Group was in the process of determining the fair values of identifiable assets, liabilities or contingent liabilities of Vinatextmart LLC at the date of acquisition. Therefore, the Group applied provisional accounting method to consolidate Vinatextmart LLC. For the year ended 31 December 2016, the Group has completed the determination of the fair value of net assets acquired with changes compared to provisional fair value determined previously, and made the retrospective adjustments as follows: Provisional fair value Adjustment Fair value after adjustment Assets 598,597,433,937 87,558,680, ,156,114,237 In which Inventories Fixed assets Liabilities 498,647,463, ,647,463,258 Net assets 99,949,970,679 87,558,680, ,508,650,979 Non-controlling interests 38,865,008,796 (26,267,604,090) 12,597,404,706 Goodwill arising from business combination 90,685,020,525 (61,291,076,210) 29,393,944,315 c uisi on of n Phon C in acquisition. Therefore, the Group applied provisional accounting method to consolidate this company. Total In 2015, the Group acquired 100% shares of An Phong JSC. consideration at 31 December 2015 was provisionally measured at VND1,835 billion. For the year ended 31 At 31 December 2015, the Group was in the process of determining the fair value of identifiable assets, liabilities December 2016, the Group has finalised the consideration and adjusted restrospectively as the followings: or contingent liabilities of An Phong JSC at the date of Provisional fair value Adjustment Fair value after adjustment Total consideration 1,834,593,000,000 51,603,290,000 1,886,196,290,000 Non-controlling interests 8,509,350, ,879,038 9,494,229,741 Goodwill arising from business combination (Note 20) 437,342,855,521 50,618,410, ,961,266,483 c uisi on of other en es in Current year, the Group has also finalised the provisional Acquisition of Vinaconex-Viettel JSC; Acquisition of Dong Phu Hung Binh Thuan JSC accounting for other business combinations in the previous year, including: The Group assessed that the fair values of identifiable net assets of these entities at acquisition dates approximate Acquisition of Hop Nhat JSC; to their carrying values that had been used for provisional accounting previously. Therefore, the finalised results of Acquisition of VEFAC JSC; these business combinations are unchanged compared to the provisional results determined in Acquisition of VinEco-Tam Dao LLC; Acquisition of Sunflower JSC; 144 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

75 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 5. CASH AND CASH EQUIVALENTS Ending balance Beginning balance Cash on hand 55,845,974,848 34,915,215,231 Cash in banks 6,168,352,990,692 3,717,308,507,824 Cash in transit 19,031,656,359 19,742,151,512 Cash equivalents 3,590,101,597,502 3,166,499,229,923 TOTAL 9,833,332,219,401 6,938,465,104,490 Cash equivalents at 31 December 2016 comprise bank deposits in VND with terms ranging from 1 month to 3 months, and earning interest rates ranging from 4.3% to 5.2% per annum (As at 31 December 2015: from 3.5% to 5% per annum). Details of foreign currencies: Ending balance Beginning balance Foreign currencies: United State dollar 3,751,403 3,038,673 Euro 36,362 8,567 Japanese Yen - 75,000 British Pound - 20 Hong Kong dollar - 1,000 Australian dollar SHORT-TERM INVESTMENTS 6.1 Held-for-trading securities Ending balance Beginning balance Cost Fair value Provision Cost Fair value Provision Shares of Pertro Vietnam 32,369,112,000 13,372,452,000 (18,996,660,000) 32,369,112,000 17,411,112,000 (14,958,000,000) Fertiliser and Chemicals Corporation TOTAL 32,369,112,000 13,372,452,000 (18,996,660,000) 32,369,112,000 17,411,112,000 (14,958,000,000) 6.2 Held-to-maturity investments Ending balance Beginning balance Cost Carrying value Cost Carrying value 480,784,452, ,784,452,807 9,602,998,237,082 9,602,998,237,082 Short-term bank deposits and certificates of deposits (i) - - 1,522,570,241,813 1,522,570,241,813 Current portion of long-term bank deposits (Note 19.2) TOTAL 480,784,452, ,784,452,807 11,125,568,478,895 11,125,568,478,895 (i) Bank deposits in VND as at 31 December 2016 have terms ranging from more than 3 months to 1 year, and earning interest rates ranging from 5.0% to 6.5% per annum (As ` at 31 December 2015: short-term bank deposits and certificates of deposits have terms ranging from more than 3 months to 1 year, and earning interest rates ranging from 5.0% to 7.8% per annum). 146 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

76 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 7. SHORT-TERM TRADE RECEIVABLES AND SHORT-TERM ADVANCE TO SUPPLIERS 7.1 Short-term trade receivables 8. LOAN RECEIVABLES Ending balance Beginning balance Ending balance Beginning balance (Restated) Short-term: Current portion of long-term loans to customers and individuals 24,697,885,462 1,009,251,354,122 Sale of inventory properties 1,973,699,838,278 1,220,757,401,526 Leasing activities and rendering related services 222,226,402, ,588,553,650 Rendering hotel services, amusement park services and related 95,357,152,770 91,852,450,219 services Rendering hospital services and related services 55,576,231,521 42,697,629,658 Sale of goods in supermarkets, convenience stores and other retail 26,256,987, ,442,622,389 outlets Rendering education services and related services 840,137, ,673,277 Construction and related services 301,559,823, ,465,507,260 Rendering of management services, real estate brokerage and related services 97,426,132, ,139,015,931 Loans to corporate counterparties (i) 1,831,835,225, ,668,376,862 Loans to related parties (Note 37) 1,367,725,527,787 55,204,181,818 3,224,258,638,813 1,763,123,912,802 Long-term: Loans to individuals - 904,533,000,000 Loans to customers 28,687,800, ,278,193,287 Loans to a corporate counterparty 55,000,000,000 55,000,000,000 n hich current por on of lon ter loans to custo ers and indi iduals TOTAL 58,989,915,115 62,559,839,165 Provision for doubtful loan receivables (34,849,342,992) (67,064,381,376) Disposal of investments 367,694,692,439 93,448,998,244 Other short-term receivables 30,125,377,578 4,153,518,984 TOTAL 3,170,762,775,815 2,532,249,371,138 In which: Short-term trade receivables from customers hort ter trade recei ables fro related par es ote Provision for doubtful debts (61,176,629,527) (111,652,055,514) Details of receivables which are more than 10% of total balance: ale of in entor proper es to a corporate counterpart Construc on ser ice renderred to a corporate counterpart - Disposal of an investment to a corporate counterparty - (i) This comprises: Loan receivables of VND1,300 billion from a corporate counterparty with term of 6 months from 24 September 2016, and earning interest rate of 10.5% per annum. This loan is secured by all current shares and additionally issued shares of a third party which is owned by this counterparty and other shareholders, and a real-estate project of the third party. Loans to corporate counterparties, which are unsecured and earn interests at rates ranging from 6% to 7% per annum. 7.2 Short-term advances to suppliers Short-term advances to suppliers as at 31 December 2016 mainly include advances to suppliers, construction contractors and consultants for developing real estate projects of the Group. The Group has made provision for uncollectible advances of VND20 billion. 148 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

77 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 9. OTHER RECEIVABLES Ending balance Beginning balance (Restated) Short-term: Deposit for investment co-operation contracts (i) 4,035,000,000,000 1,050,000,000,000 Interest on bank deposits, deposits and loans to others 1,042,244,561, ,625,661,389 Customers advance collected by third party on behalf of the 431,005,348,149 - Group Guarantee deposits for project development, selling apartments 399,402,596, ,249,597,024 and completing contracts Discounts receivable from suppliers 167,538,476,309 21,960,629,137 Advances to employees 72,218,182,604 59,515,702,495 Dividends receivable 36,115,522,222 36,115,522,222 Receivables from former owners of subsidiaries and associates - 220,279,946,923 Others 626,445,725, ,558,473,513 TOTAL 6,809,970,413,275 3,072,305,532,703 Provision for doubtful other short-term receivables (62,885,538,299) (35,860,903,851) 10. BAD DEBTS Bad debts of the Group mainly include overdue trade receivables, loan principal receivables and interest receivables: Ending balance Beginning balance Debtor Cost Recoverable amount Cost Recoverable amount Overdue receivables 356,097,494, ,425,150, ,500,521, ,657,154,382 Overdue loans receivables 99,537,848,254 64,688,505,262 82,578,564,023 17,844,590,574 Unrecognised interests 3,170,544,373-19,169,910,308 - TOTAL 458,805,887, ,113,655, ,248,996, ,501,744,956 Details of overdue receivables which account for more than 10% of total overdue receivables: hai ieu C - - cean roup C Thang Long Tobacco One Member - - LLC cean han on C Tan Hoang Minh LLC - - In which: Other short-term receivables ther short ter recei ables fro related par es ote Long-term: Long-term deposits for outlet rentals 194,115,824, ,574,004,529 Guarantee deposit for bond obligation 120,190,140,000 - Deposit for business co-operation contracts 73,366,827,000 - Other receivables 18,843,910,330 12,190,234,785 TOTAL 406,516,702, ,764,239,314 (i) This comprises: A deposit receivable of VND1,035 billion due from a corporate counterparty which was guaranteed by another corporate counterparty. This amount was previously deposited for the purpose of developing a potential real estate project in Hanoi. Deposits receivable of VND3,000 billion from a corporate counterparty. These amounts were previously deposited for securing the right to invest in a potential real estate project in Hung Yen province. In 2017, the Company has collected VND1,500 billion of these deposits. 150 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

78 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 11. INVENTORIES 12. PREPAID EXPENSES Ending balance Beginning balance Ending balance Beginning balance Cost Provision Cost Provision Completed inventory 2,150,104,528,562 (13,837,803,985) 2,254,855,916,792 - properties Inventory properties 45,386,442,763,079-23,916,488,173,756 - under construction Raw materials 118,928,525,806-91,902,736,933 - Inventories 2,097,927,277,737 (62,681,136,250) 1,417,091,695,671 (46,099,841,693) for hospital, supermarkets, hotel and retail outlets Tools and equipment 58,283,018,424-78,385,314,913 - Goods in transit 5,084,926, ,671,215,241 - Others 63,005,213,232 (20,476,521,306) 29,500,782,315 (12,378,304,762) TOTAL 49,879,776,253,837 (96,995,461,541) 28,085,895,835,621 (58,478,146,455) Inventory properties under construction of certain real estate projects are being used as collaterals for borrowings of customers under Interest Supporting Program. Details of other inventory properties used as collaterals for borrowings and corporate bonds of the Group are disclosed in Note 26 and Note 19. Detail movements of provision for obsolete inventories: Ending balance Beginning balance Beginning balance 58,478,146,455 7,055,170,624 Short-term: Prepaid selling expenses related to 1,718,749,696,667 1,141,536,744,894 apartments not yet handed over Prepaid committed profit for villas 639,882,103,856 - business co-operation contract and management program Tools and supplies 100,963,377, ,913,017,914 Prepaid interest expenses 45,141,308,506 23,446,929,828 Provisional corporate income tax 498,649,303, ,807,092,577 Others 119,638,923,255 72,325,615,988 TOTAL 3,123,024,713,156 1,548,029,401,201 Long-term: Prepaid land rental 852,344,458, ,520,735,608 Overhaul expenditures 53,579,631,482 37,798,336,027 Tools and supplies 1,137,285,673,676 1,018,070,710,745 Pre-operation expenditures 38,374,812, ,227,531,032 Prepaid rental for leasing supermarket areas 6,343,035,371 36,999,995,943 Others 164,784,122,282 75,278,841,194 TOTAL 2,252,711,733,160 1,437,896,150,549 Add: Provision made during the year 96,995,461,541 55,111,612,196 ess lisa on and re ersal of pro ision during the year (58,478,146,455) (3,688,636,365) Ending balance 96,995,461,541 58,478,146, OTHER CURRENT AND NON-CURRENT ASSETS Short-term: Ending balance Beginning balance Deposits for investment purpose (i) 4,789,340,371,022 4,629,328,253,727 Other current assets 222,330,521, ,193,173,089 TOTAL 5,011,670,892,619 5,511,521,426,816 Long-term: Deposits for investment purpose - 3,000,000,000,000 TOTAL - 3,000,000,000,000 (i) This comprises: Unsecured deposits of VND2,500 billion to individuals for acquiring additional shares of an existing subsidiary of the Group; Deposits of VND2,200 billion to individuals for acquiring additional shares of an existing subsidiary of the Group. This deposit was fully collected in 2017; and Other deposits of VND89 billion for the purpose of developing projects. 152 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

79 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 14. TANGIBLE FIXED ASSETS Buildings and structures Machinery and equipment Means of transportation Office equipment Others Total Cost: Beginning balance 14,546,599,894,304 5,813,447,671, ,002,066, ,208,623, ,437,068,921 22,037,695,324,834 Additions 7,050,251,537,438 2,820,523,747, ,509,481, ,948,327, ,571,480,369 10,448,804,574,723 In which: Newly purchased Newly constructed c uisi on of subsidiaries eclassified fro in est ent proper es ote ther addi ons - Decreases (1,433,266,332,214) (639,892,046,993) (131,419,545,697) (17,539,046,691) (99,140,745,479) (2,321,257,717,074) In which: old disposal - eclassified to in est ent proper es ote eclassified to in entories - - Disposal of subsidiaries Other decreases - Ending balance 20,163,585,099,528 7,994,079,372, ,092,001, ,617,905, ,867,803,811 30,165,242,182,483 In which: Fully depreciated Accumulated depreciation: Beginning balance 1,150,641,947,558 1,300,301,053, ,012,256, ,186,221, ,207,760,303 2,923,349,239,083 Additions 777,415,634, ,917,475, ,422,813,101 90,428,165,164 60,662,700,374 1,885,846,789,611 In which: eprecia on for the ear c uisi on of subsidiaries eclassified fro in est ent proper es ote Decreases (311,145,901,696) (320,349,833,109) (54,672,257,645) (12,003,714,358) (12,604,015,996) (710,775,722,804) In which: old disposal - eclassified to in est ent proper es ote eclassified to in entories - - Disposal of subsidiaries Other decreases - Ending balance 1,616,911,680,860 1,835,868,696, ,762,811, ,610,672, ,266,444,681 4,098,420,305,890 Net carrying amount: Beginning balance 13,395,957,946,746 4,513,146,617, ,989,810, ,022,402, ,229,308,618 19,114,346,085,751 Ending balance 18,546,673,418,668 6,158,210,675, ,329,190, ,007,232, ,601,359,130 26,066,821,876,593 Details of tangible fixed assets used as collaterals for borrowings and corporate bonds of the Group and third parties are disclosed in Note 26 and Note VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

80 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 15. INTANGIBLE FIXED ASSETS Indefinite land use rights Distribution right Definite land use rights E-commerce website Computer software Others Total Cost: Beginning balance (restated) 37,127,969,964 94,000,000, ,715,386, ,936,512, ,379,461,755 92,076,415, ,235,746,007 Additions 1,458,632,000 18,320,981,723 17,500,000,000 22,560,398, ,424,998, ,265,010,815 In which: Newly purchased Newly constructed c uisi on of subsidiaries Decreases (1,458,632,000) - (17,500,000,000) - (12,019,819,370) (29,070,751,800) (60,049,203,170) In which: eclassified to in est ent proper es ote Ending balance 37,127,969, ,320,981, ,715,386, ,496,910, ,784,641,316 63,005,663,762 1,171,451,553,652 In which: Full a or sed Accumulated amortisation Beginning balance (restated) - 49,611,111,111 30,483,119,413 5,299,744,420 51,720,091,661 5,316,826, ,430,892,984 Additions - 34,815,681,228 13,450,240,430 93,978,724,168 82,798,028,740 6,483,628, ,526,302,825 In which: or sa on for the ear i - 34,,, c uisi on of subsidiaries Decreases - - (7,802,083,335) - (5,759,336,247) (853,424,313) (14,414,843,895) In which: eclassified to in est ent proper es ote Disposal of subsidiaries Ending balance - 84,426,792,339 36,131,276,508 99,278,468, ,758,784,154 10,947,030, ,542,351,914 Net carrying amount: - Beginning balance (restated) 37,127,969,964 44,388,888, ,232,266, ,636,768, ,659,370,094 86,759,589, ,804,853,023 Ending balance 37,127,969,964 27,894,189, ,584,109, ,218,442, ,025,857,162 52,058,633, ,909,201,738 (i) During the year, the Group changed the estimated useful life of E-commerce website as disclosed in Note 3.8. This change in useful life increases amortisation expense by VND66 billion in comparision with previous year. Details of intangible fixed assets used as collaterals for borrowings and corporate bonds of the Group are disclosed in Note VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

81 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 16. INVESTMENT PROPERTIES Land use rights Buildings and structures Machinery & equipment Total Cost: Beginning balance 7,573,842,091,224 8,472,292,443,588 2,146,360,029,445 18,192,494,564,257 Additions 1,759,580,774,038 2,439,140,172, ,246,318,212 4,892,967,264,860 As at 31 December 2016, the fair value of the Group s investment properties is measured as follows: (i) As per draft valuation reports of an independent valuer: In which: Newly constructed Investment properties VND billions c uisi on of subsidiaries eclassified fro intan ible fi ed assets ote - - eclassified fro tan ible fi ed assets ote ther addi ons - - Decreases (1,997,664,465,181) (1,466,126,287,725) (435,313,806,108) (3,899,104,559,014) In which: old disposal - eclassified to in entories eclassified to tan ible fi ed assets ote Other decreases - (215,726,183,676) (8,061,261,857) (223,787,445,533) Ending balance 7,335,758,400,081 9,445,306,328,473 2,405,292,541,549 19,186,357,270,103 Accumulated depreciation: Beginning balance 204,589,816, ,770,160, ,470,344,144 1,364,830,320,724 Additions 124,908,223, ,852,503, ,785,882, ,546,609,549 In which: eprecia on a or sa on for the ear c uisi on of subsidiaries eclassified fro intan ible fi ed assets ote - - Vincom Center shopping malls 11,177 Vincom Mega Malls 6,457 Vincom Offices 5,464 Vincom Plaza shopping malls 4,935 Schools for lease 406 Others 374 (ii) Estimated by the Group: Investment properties VND billions Villas in Vinhomes Riverside ecourban 2,448 area Details of investment properties used as collaterals for borrowings and corporate bonds of the Group and third parties are presented in Note 26. eclassified fro tan ible fi ed assets ote Decreases (14,891,447,596) (115,294,468,345) (65,961,040,720) (196,146,956,661) In which: old disposal - - eclassified to in entories eclassified to tan ible fi ed assets ote Ending balance 314,606,592, ,328,195, ,295,185,948 1,824,229,973,612 Net carrying amount: Beginning balance 7,369,252,274,772 7,827,522,283,460 1,630,889,685,301 16,827,664,243,533 Ending balance 7,021,151,807,935 8,619,978,132,955 1,720,997,355,601 17,362,127,296, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

82 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 17. CAPITALISED BORROWING COSTS During current year, the Group capitalised borrowing costs amounting to VND1,087 billion (for the year ended 31 December 2015: VND1,481 billion). These costs related to specific and general borrowings obtained to finance the real estate projects of the Group. The capitalised borrowing costs in relation to the general borrowings are determined by applying a capitalisation rate of 9.74% per annum (for the year ended 31 December 2015: 10.69% per annum) on the accumulated weighted average expenditures of the real estate projects. The capitalisation rate used is the weighted average of the borrowing rates applicable to the borrowings of the Group that are outstanding during the year. Ending balance Beginning balance Vinpearl Hoi An project 192,334,811,149 82,574,687,134 Southern Star project (*) 189,272,511,069 - Vincom Hung Vuong project, Hue 185,547,295,582 71,638,460,640 Maximark supermarket chains project 173,679,009, ,836,500,000 Tay Ho View project 169,954,400, ,852,323, CONSTRUCTION IN PROGRESS Details of construction in progress of the Group are presented as below: Ending balance Beginning balance Vinpearl Cua Hoi project 140,876,937,416 - Vincom Plaza Tra Vinh project 139,556,964,057 - Vinpearl Condotel Nha Trang project 139,354,536, ,967,772,182 Vincom Thanh Hoa project 116,648,455,745 12,942,906,625 Can Gio urban area project (*) 12,243,684,937,843 - Vinhomes Central Park project (*) 3,929,866,564,685 1,818,156,762,596 Vinhomes Metropolis project 3,518,540,132,293 - Agricultural projects 1,276,545,915, ,525,140,937 Vinhomes Imperia project (*) 1,130,454,940, ,249,657,518 Vinhomes Smart City project (*) 989,138,707, ,485,481,324 Vu Yen island eco-urban area project 901,924,230, ,632,423,817 Vinhomes Springlake project (*) 823,768,956, ,972,759,456 Vinpearlland amusement park projects 639,686,691, ,192,079,793 Golf area and Spa Vinpearl Nha Trang 546,856,749, ,233,168,277 area projects Vinmec Hospital project 499,261,077, ,750,176,708 Con Au golf course project, Can Tho 456,273,969, ,421,179,531 Vinpearl Quy Nhon project (*) 413,960,206, ,452,118,618 Vincom Ha Tinh project 330,725,763,495 79,461,006,322 Vinhomes Gardenia project (*) 310,114,974,026 - Vinhomes Golden River project 296,036,399,839 - Vincom Bac Ninh project (*) 292,944,453, ,266,168,755 Lang Van project 269,546,570, ,707,579,088 Vincom Vinh Long project 262,530,998,697 - International Passenger Port project 254,586,113,776 - Vincom Plaza Hau Giang project 115,769,011,486 - Vidifi project 108,044,747,462 - Nam Long project 104,000,000,000 - Giang Vo project 94,028,014,722 - Vinhomes Green Bay project (*) 87,901,749,375 1,987,225,173,391 Vincom Plaza Ly Bon project - 60,826,885,884 Vincom Plaza Buon Ma Thuot project - 101,113,430,230 Vincom Plaza Bac Lieu project - 28,228,070,000 Vinpearl Premium Golf Land project - 668,363,446,429 Thao Dien project (*) - 844,666,731,848 Riverview Danang Hotel project (*) - 54,415,552,534 E-commerce project - 25,899,738,346 Vinhomes Riverside - The Harmony - 1,135,894,144,276 project Vincom Plaza Xuan Khanh project, - 622,457,582,346 Can Tho Vincom Center Pham Ngoc Thach - 586,183,027,208 project Vincom Plaza Go Vap project - 490,336,000,000 Other projects 1,985,323,843,183 3,764,637,170,175 TOTAL 33,991,567,265,462 18,115,293,364,854 Hon Mot project (*) 230,209,993, ,061,969,695 Vinpearl Phu Quoc project 229,381,668, ,053,725,772 Times City Parkhills project (*) 203,234,960, ,612,364,031 (*) Construction in progress of these projects include allocated consideration from acquisition of groups of assets as disclosed in Note 4.1. Construction in progress used as collaterals for borrowings and corporate bonds of the Group and third parties are disclosed in Note 26 and Note VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

83 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 19. LONG-TERM INVESTMENTS 19.1 INVESTMENT IN JOINT VENTURE, ASSOCIATES AND OTHER ENTITES Note Ending balance Beginning balance Investment in joint venture, associates ,728,809,250,992 6,715,538,162,046 Investments in other entities ,604,928,401,863 2,882,019,433,681 Provision for diminution of long-term investments (56,192,900,196) - TOTAL 3,277,544,752,659 9,597,557,595, Investment in joint ventures, associates Details of investment in joint ventures, associates of the Group are presented as follows: 31 December 2015 Transferred from subsidiaries Additional investment during the year Share of profit/(loss) from associates Diminution of investment Investment disposed during the year Convert to subsidiaries 31 December 2016 Truong Thanh Furniture Corporation (i) - 1,042,557,225,447 - (3,777,938,525) (805,779,509,476) ,999,777,446 Viwasupco JSC (v) ,000,000, ,610, ,488,610,366 Phu Quoc Tourism JSC (vi) - 492,139,241, ,139,241,524 Nha Trang Port JSC (viii) 89,924,078, ,678,099 - (10,475,954,723) - 80,262,801,920 Hanoi Breeds JSC 47,404,859,687-5,622, ,622, ,654,104,725 Vietnam Book Printing JSC (ii) - - 3,239,919,511 24,795, ,264,715,011 Can Gio Tourism JSC (Note 4.1) 4,798,892,080, ,314,563, (4,818,206,643,531) - Green City Development JSC (Note 4.1) 979,672,327, ,911, (979,929,238,827) - Thang Long Real Estate JSC (Note 4.1) 171,306,421, ,256, (172,202,677,363) - Phu Huu Gia JSC (i) ,680,000,000 (45,649,336) - (118,634,350,664) - - M.Y.M Fashion JSC (iv) 81,600,013, (11,849,081,958) - (69,750,931,993) - - Foreign Trade Concrete JSC (vii) 24,410,420, ,012,411,588 - (26,422,832,090) - - Truong Thanh Agro-Forestry JSC (i) ,525,000,000 (188,244) - (23,524,811,756) - - Truong Thanh Packing JSC (i) - - 2,000,000,000 (10,845,745) - (1,989,154,255) - - Truong Thanh OJI Forest LLC (i) ,930,473,000 82,775,879 - (95,013,248,879) - - Vien Dong Pearl LLC (iii) 522,327,960, ,372,667,034 - (533,700,627,941) - - TOTAL 6,715,538,162,046 1,534,696,466,971 1,114,381,014,733 19,823,588,740 (805,779,509,476) (879,511,912,301) (5,970,338,559,721) 1,728,809,250, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

84 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS (i) On 11 May 2016, the Group acquired 49.9% shares of Truong Thanh Furniture Corporation as disclosed in Note 4.2. As a result of this acquisition, the Group has investments in joint-ventures, associates, which are Truong Thanh Agro-Forestry JSC, Truong Thanh Packing JSC, Phu Huu Gia JSC and Truong Thanh OJI Forest LLC. On 2 December 2016, the Group disposed 20% shares of Truong Thanh Furniture Corporation and announced not to excersice the convertion option of the convertible loans as disclosed in Note 4.4. Accordingly, Truong Thanh Furniture Corporation became an associate of the Group with carrying value determined by equity method at the disposal date. Simultaneously, Truong Thanh Agro- Forestry JSC, Truong Thanh Packing JSC, Phu Huu Gia JSC and Truong Thanh OJI Forest LLC are no longer jointventures and associates of the Group. (ii) On 27 April 2016, the Group acquired 65.33% shares of Savina JSC as disclosed in Note 4.2. On 31 December 2016, the Group is in the process of determining the fair value of identifiable assets, liabilities or contingent liabilities of Savina JSC at the date of acquisition, including the investment in an associate i.e. Vietnam Book Printing JSC. The fair value of the investment in this associate is recorded under provisional accounting method in the consolidated financial statements. (iii) On 14 June 2016, under the Resolution No. 02/2016/ NQ-HDTV-NGOC VIEN DONG, the Members Council of Vien Dong Pearl Urban Development Investment Company Limited ( Vien Dong Pearl LLC ) approved to increase the charter capital of this company from VND1,153 billion to VND5,400 billion, in which the Group had the right to contribute additional capital amounting to VND1,910 billion. The Group transferred this contribution right to another existing shareholder of Vien Dong Pearl LLC, which then reduced the Group s voting right in Vien Dong Pearl LLC from 45% to 9.62%. Vien Dong Pearl LLC, as a result, became an other longterm invesment of the Group as presented in Note A gain of VND87 billion from this transaction was recorded in the consolidated income statements (Note 30.3). (iv) On 3 August 2016, the Group transferred 20% shares of M.Y.M Fashion JSC ( M.Y.M JSC ) to an individual counterparty, accordingly decreased the shares owned by the Group in M.Y.M JSC to 19%. The investment in M.Y.M JSC became an other investment of the Group as disclosed in Note A gain of VND25 billion from this transfer was recorded in the consolidated income statement (Note 30.3). (v) On 15 December 2016, the Group acquired 81.75% shares of Ecology JSC as disclosed in Note 4.2. As a result of this acquisition, the Group has an investment in an associate, Vinaconex Water Supply JSC ( Viwasupco JSC ), with fair value of VND872 billion. (vi) On 22 December 2016, the Group transferred 25% shares of Phu Quoc Tourism JSC as disclosed in Note 4.4. Thereby, Phu Quoc Tourism JSC became an associate of the Group. Additionally, the Group used a group of projects which the Group has majority of rights and interests in as collaterals for loans and bonds of Phu Quoc Tourism JSC. (vii) On 23 December 2016, the Group transferred the entire 30% shares of Foreign Trade Concrete JSC to an individual counterparty. Accordingly, Foreign Trade Concrete JSC is no longer an associate of the Group. The loss of VND0.4 billion of this transfer was recorded in the consolidated income statements (Note 32). (viii) As at 31 December 2016, the Group completed the determination of the fair value of identifiable assets, liabilities or contingent liabilities of Nha Trang Port JSC. Details of these associates and the voting rights held by the Group as at 31 December 2016 are as follows: No Name Voting Equity Registered office s Principal activities rights (%) interest (%) address 1 Hanoi Breeds JSC No.77 Le Hong Phong, Cattle breeding Nguyen Trai Street, Ha Dong district, Hanoi 2 Nha Trang Port JSC No. 05 Tran Phu street, Port services Vinh Nguyen ward, Nha Trang city, Khanh Hoa province 3 Vietnam Book Printing JSC No. 22B, Hai Ba Trung street Trang Tien Trading books and related items and lease offices ward, Hoan Kiem district, Hanoi 4 Truong Thanh Furniture Corporation Road DT747, No.7 street, Uyen Hung ward, Tan Uyen commune, Cultivation, production, trade and services related to wooden products Binh Duong province 5 Phu Quoc Tourism JSC Bai Dai area, Ganh Dau commune, Phu Quoc Providing short stay services district, Kien Giang province 6 Viwasupco JSC Vat Lai, Phu Son commune, Ky Son district, Hoa Binh province Supplying water 164 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

85 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS Ending balance Beginning balance Number of shares Amount (VND) Number of shares Amount (VND) Hanoi Breeds JSC 677,306 47,654,104, ,800 47,404,859,687 Vietnam Book 297,500 3,264,715, Printing JSC Phu Quoc Tourism 34,500, ,139,241, JSC Viwasupco JSC 21,800, ,488,610, Nha Trang Port JSC 7,492,240 80,262,801,920 8,500,000 89,924,078,544 Truong Thanh 43,233, ,999,777, Furniture Corporation Can Gio Tourism JSC ,798,651 4,798,892,080,000 Green City JSC ,650, ,672,327,325 Thang Long Real - - 1,750, ,306,421,130 Estate Trading Investment JSC Phu Huu Gia JSC M.Y.M JSC ,700,000 81,600,013,951 Foreign Trade - - 1,800,000 24,410,420,502 Concrete JSC Vien Dong Pearl LLC (*) - (*) 522,327,960,907 TOTAL 1,728,809,250,992 6,715,538,162,046 (*) This is a limited liability company Investment in other entities Details of other long-term investments of the Group as at 31 December 2016 are disclosed as follows: Ending balance Beginning balance Cost (VND) Provision (VND) Voting right (%) Cost (VND) Provision (VND) Number of shares Voting right (%) Number of shares Ecology JSC (Note 4.2) ,741, ,728,918,336 - Thanh Nien Media JSC 400, ,400,000, , ,400,000, , ,000,000, , ,000,000,000 - Thuan Phong Energy Development JSC ,395,000,000-50,000, ,395,000,000 - Vinatextmart JSC 50,000,000 Kim Ngoc Joint Venture LLC (ii) (i) ,154,842,680 - (i) Vicentra JSC ,985, ,749,495,515,345 - (i) ,071,699,183 - (i) Vien Dong Pearl LLC (Note ) M.Y.M JSC (Note ) 5,700, ,669,660, Viwaco JSC (iii) 1,201, ,487,200, Vinhomes Management LLC (iv) (i) ,750,000,000 (56,192,900,196) (i) TOTAL 1,604,928,401,863 (56,192,900,196) 2,882,019,433, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

86 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS. VAS CONSOLIDATED FINANCIAL STATEMENTS (i) These are limited liabilities companies. (ii) The Group has owned this invesment via the acquisition of Savina JSC (Note 4.2). (iii) The Group has owned this invesment via the acquisition of Ecology Developing Investment JSC (Note 4.2). (iv) On 4 February 2016, ILF was merged into Vinhomes Management LLC via contracts signed by the Group and individuals being shareholders of ILF. Accordingly, the equity interests of the Group in Vinhomes Management LLC decreased to 12.5% as disclosed in Note 4.4 and the investment of the Group in Vinhomes Management LLC became an other long-term invesment HELD-TO-MATURITY INVESTMENT Ending balance Beginning balance Long-term bonds (i) 70,000,000,000 - Long-term deposit - 1,522,570,241,813 n hich Current por on of lon ter deposit (Note 6.2) - TOTAL 70,000,000,000 - (i) These are straight unsecured bonds issued by Joint Stock Commercial Bank for Foreign Trade of Vietnam without collateral. These bonds were issued on 25 November 2016 with term of 10 years and par value of VND100,000 each bond. Interest rates for the first period is 7.5% per annum. VINPEARL PHU QUOC RESORT & GOLF 168 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY. ANNUAL REPORT

87 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 20. GOODWILL Cost Accumulated amortisation Net carrying amount Goodwill on acquisition of subsidiaries Beginning balance (Restated) Additions Disposed Ending balance Beginning balance (Restated) Amortisation Disposed Ending balance Beginning balance (Restated) Ending balance Hanoi South JSC 2,246,022,053, ,246,022,053, ,420,080, ,728,961,236-1,127,149,041,384 1,343,601,973,611 1,118,873,012,375 PFV JSC (1) 567,441,137, ,441,137, ,945,375,259 53,982,454, ,927,829, ,495,761, ,513,307,772 Sai Dong JSC 2,251,823,291,311-2,251,823,291, ,585,568, ,789,733, ,375,302,313 1,669,237,722,760 1,444,447,988,998 Royal City JSC 1,262,707,762, ,262,707,762, ,559,740, ,552,634, ,112,374, ,148,021, ,595,387,599 Vinpearl Danang LLC 209,390,722,257 - (804,208,063) 208,586,514, ,639,956,861 24,413,178,644 (421,444,512) 128,631,690, ,750,765,396 79,954,823,201 Tan Lien Phat JSC 498,584,453,672 - (3,704,123,665) 494,880,330,007 54,013,315,814 49,716,966,887 (476,778,660) 103,253,504, ,571,137, ,626,825,966 Vincom Construction 1 LLC 20,000,000, ,000,000,000 4,000,000,000 2,003,649,635-6,003,649,635 16,000,000,000 13,996,350,365 Vincommerce JSC 421,707,818,920 - (93,000,891,437) 328,706,927,483 61,036,868,474 36,040,199,062 (15,885,487,014) 81,191,580, ,670,950, ,515,346,961 Khanh Gia Investment Trading 218,481,464,295 - (3,766,847,762) 214,714,616,533 22,677,796,181 21,790,869,163 (467,764,396) 44,000,900, ,803,668, ,713,715,585 Services LLC (2) Vinlinks JSC 212,916,929,493 - (212,916,929,493) - 14,676,805,602 19,228,950,939 (33,905,756,541) - 198,240,123,891 - Vinatextmart LLC (3) 21,925,106,322 - (4,849,421,368) 17,075,684,954 1,887,176,290 2,125,849,103 (523,533,582) 3,489,491,811 20,037,930,032 13,586,193,143 An Phong JSC 487,961,266,483 - (7,620,416,887) 480,340,849,596 5,783,311,684 49,642,344,884 (257,244,682) 55,168,411, ,177,954, ,172,437,710 Vinaconex Viettel JSC 2,220,737,168,894 - (2,220,737,168,894) - 555,184,292 70,321,005,430 (70,876,189,722) - 2,220,181,984,602 - Dong Phu Hung Binh Thuan JSC 452,448,609,116 - (452,448,609,116) - 377,040,508 37,462,116,190 (37,839,156,698) - 452,071,568,608 - Hoang Lan LLC (4) - 18,942,936,598-18,942,936,598-1,726,326,734-1,726,326,734-17,216,609,864 Hoa Hong Vang LLC (4) - 12,602,352,813-12,602,352,813-1,155,388,121-1,155,388,121-11,446,964,692 Savina JSC (5) - 20,875,503,395-20,875,503,395-1,422,940,144-1,422,940,144-19,452,563,251 Truong Thanh Furniture - 1,244,602,203,203 (1,244,602,203,203) ,504,201,876 (69,504,201,876) Corporation (5) Ecology JSC (5) - 322,419,360, ,419,360,569-1,579,110,933-1,579,110, ,840,249,636 Phu Gia JSC (5) - 34,561,278,264-34,561,278, ,397, ,397,030-34,162,881,234 Vietnam Investment JSC (5) - 246,843,055, ,843,055,863-1,212,135,061-1,212,135, ,630,920,802 Vicentra JSC (5) - 2,837,107,358,440-2,837,107,358,440-47,312,195,954-47,312,195,954-2,789,795,162,486 Other subsidiaries 69,257,832,321 1,058,227,194 (27,979,471,012) 42,336,588,503 13,553,839,364 7,240,535,642 (3,171,057,819) 17,623,317,187 55,703,992,957 24,713,271,316 TOTAL 11,161,405,616,199 4,739,012,276,339 (4,272,430,290,900) 11,627,987,601,638 2,546,712,059,554 1,074,350,144,630 (233,328,615,502) 3,387,733,588,682 8,614,693,556,645 8,240,254,012,956 (1) In 2013, PFV Investment and Trading Joint Stock (2) In 2015, Khanh Gia Investment Trading Services (3) In 2015, Vinatextmart LLC was merged into (5) These goodwill are arisen from business combinations Company ( PFV JSC ), a subsidiary, was merged into the Company. Limited Company was merged into South Vincom Retail LLC which is another subsidiary of the Group. Vincommerce JSC which is another subsidiary of the Group. during the year as presented in Note 4. (4) In 2016, Hoa Hong Vang LLC and Hoang Lan LLC were merged into Vineco JSC, which is another subsidiary of the Group. 170 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

88 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 21. SHORT-TERM TRADE PAYABLES AND ADVANCES FROM CUSTOMERS 21.1 SHORT-TERM TRADE PAYABLES Ending balance Beginning balance Balance Amount payable Balance (Restated) Amount payable (Restated) Short-term Trade payables to 6,452,935,402,714 6,452,935,402,714 5,698,278,299,744 5,698,278,299,744 suppliers Bro era e ad isor and real estate management services - - Others Payables to related 5,218,835,859 5,218,835,859 14,494,336,920 14,494,336,920 parties (Note 37) TOTAL 6,458,154,238,573 6,458,154,238,573 5,712,772,636,664 5,712,772,636, STATUTORY OBLIGATIONS Beginning balance Payables for the year Payment made in the year Ending balance Payables Value added tax 643,176,298,743 3,084,299,205,407 (3,208,330,051,146) 519,145,453,004 Corporate income tax 661,166,354,957 2,882,956,656,854 (2,264,690,777,810) 1,279,432,234,001 Personal income tax 53,076,285, ,966,340,702 (584,087,241,274) 65,955,384,490 Land use fee and land 170,609,765,250 8,153,766,124,881 (2,849,847,242,530) 5,474,528,647,601 rental fee Foreign contractor tax 112,752,577,813 - (112,752,577,813) - arising from acquiring shares Other taxes 37,619,946,544 7,325,606,081 (17,460,337,980) 27,485,214,645 TOTAL 1,678,401,228,369 14,725,313,933,925 (9,037,168,228,553) 7,366,546,933,741 Beginning balance Receivables for the year Collected in the year Ending balance 21.2 ADVANCES FROM CUSTOMERS Receivables Overpayment of 18,430,364,745 29,543,342,122 (2,923,154,643) 45,050,552,224 corporate income tax Other taxes 4,620,520,334 61,786,462,850-66,406,983,184 Ending balance Beginning balance TOTAL 23,050,885,079 91,329,804,972 (2,923,154,643) 111,457,535,408 Downpayment from customers under real 46,746,483,533,640 19,365,321,728,392 estate sale and purchase agreements Advance from customers under other 790,797,335, ,774,737,625 contracts related to: eneral contruc on contracts Long-term lease of apartments - Restaurant and hospitality services Hospital services Retail trading duca onal ser ices and others TOTAL 47,537,280,868,648 20,221,096,466,017 In which: Advances from customers 23. SHORT-TERM ACCRUED EXPENSES Ending balance Beginning balance Interests 1,205,242,481, ,480,551,017 Construction costs 5,825,575,368,830 5,314,788,962,900 Commission fee 424,588,008, ,787,321,201 Other accrued expenses 998,856,024, ,838,303,862 TOTAL 8,454,261,883,875 6,920,895,138,980 In which: Short-term accrued expenses due to related par es (Note 37) Other short-term accrued expenses d ances fro related par es (Note 37) VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

89 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 24. UNEARNED REVENUE 25. OTHER PAYABLES 25.1 OTHER SHORT-TERM PAYABLES Ending balance Beginning balance Short-term: Ending balance Beginning balance (Restated) Apartment and villa management services - 194,671,051,737 Education services 374,544,782, ,247,876,157 Villa leasing management services 281,220,641, ,083,223,337 Office leasing 24,775,727,931 97,876,548,628 Hospitality and entertainment services 284,235,383, ,873,032,806 Customer loyalty program - Vingroup Card 122,751,293,234 - Other unearned revenues 51,310,830,403 66,986,286,611 Payables under deposit, loan and other 16,724,175,440,632 24,902,889,733,089 agreements related to real estate projects (i) Other short-term payables 3,744,381,415,164 2,568,835,147,227 Deposits by tenants to be refunded within the ne t onths (Note 25.2) eposits b counterpar es for purchase of the roup s in est ents ii Collec on on behalf Dividend payable Social insurance payable TOTAL 1,138,838,659,058 1,056,738,019,276 Pa able to custo ers due to cancella on of contracts Long-term: Apartment and villa management services - 1,198,094,154,929 Education services 9,806,280 90,716,093,933 Villas leasing management services 2,286,854,496,566 1,319,975,110,242 Office leasing 57,194,087,287 7,668,595,322 Other unearned revenues 45,706,191,349 66,957,578,042 Apartment maintenance fund held on behalf of customers Payables to customers due to early - ter ina on of lease contracts Others TOTAL 20,468,556,855,796 27,471,724,880,316 In which: Other short-term payables TOTAL 2,389,764,581,482 2,683,411,532,468 ther short ter pa ables to related par es (Note 37) In which: nearned re enue fro related par es - (Note 37) Other unearned revenues (i) Ending balance comprises of: Payables under deposit and loan agreements with total amount of VND15,217 billion related to development of real estate projects of the Group; Deposits with total amount of VND1,507 billion from corporate counterparties under business cooperation contracts in relation to the development of Vinhomes Central Park project. (ii) Ending balance comprises of: A deposit of VND802 billion from a corporate counterparty to acquire the equity interest in an existing subsidiary of the Group; Deposits payable of VND700 billion due to an associate according to business cooperation contracts signed by the associate and an existing subsidiary of the Group; A deposit of VND493 billion from a corporate counterparty to guarantee obligation under a business cooperation contract with an existing subsidiary of the Group; and A deposit of VND275 billion from a corporate counterparty to acquire shares of an entity which is a long-term investment owned by the Group. 174 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

90 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 25.2 OTHER LONG-TERM LIABILITIES Ending balance Beginning balance Long-term Deposits from tenants 747,240,797, ,877,406,008 In which: Deposits from tenants to be refunded ithin the ne t onths (Note 25.1) TOTAL 604,279,014, ,142,376,723 Payment under the office leasing contract at - 3,988,274,000,000 Vincom Center Dong Khoi (i) Other long-term liabilities 35,840,036,692 30,788,236,251 TOTAL 640,119,050,942 4,406,204,612,974 (i) This is the advance under a contract for leasing office In 2016, Vicentra JSC became a subsidiary of the spaces in Vincom Center Dong Khoi signed between Times Group as presented in Note 4.2. Trading LLC and Vicentra JSC with lease term ending in 26. LOANS AND FINANCE LEASES 26.1 SHORT-TERM LOANS AND DEBTS Beginning balance Movement during the year Ending balance Notes Balance Payable amount Increase Decrease Balance Payable amount 604,469,918, ,469,918,658 1,231,106,976,951 (962,106,263,425) 873,470,632, ,470,632,184 Current portion of longterm loans from banks Current portion of - - 3,973,682,722,225-3,973,682,722,225 3,973,682,722,225 corporate bonds 360,447,875, ,447,875,436 4,858,050,566,912 (4,474,999,637,123) 743,498,805, ,498,805,225 Short-term loans from banks Other short-term loans 459,700,000, ,700,000, ,000,000,000 (909,700,000,000) - - TOTAL 1,424,617,794,094 1,424,617,794,094 10,512,840,266,088 (6,346,805,900,548) 5,590,652,159,634 5,590,652,159,634 In which: - - Short-term loans from related par es Short-term loans from other par es 176 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

91 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS Short-term loans from banks Ending balance Lender EUR VND Maturity date Interest rate Collateral Joint Stock Commercial Bank for Foreign Trade of Vietnam 4,751, ,548,667,551 From February 2017 to December 2017 From 3.7% to 4.5% per annum 340,054,682,124 March % per annum (i) Vietnam Technological and Commercial Joint Stock Bank 4,528, ,166,403,652 From September 2017 to November % per annum 76,638,408,197 From April 2017 to November % per annum (ii) Joint Stock Commercial Bank for Investment 85,439,902,579 From January 2017 to March % per annum and Development of Vietnam Other banks 17,650,741,122 May % per annum TOTAL 743,498,805,225 (i) These loans are secured by a number of treasury shares of the Company owned by certain subsidiaries (see Note (ii) Including loan which is guaranteed by the Company for the payment by VinEco Tam Dao LLC. 29.5) LONG-TERM LOANS AND DEBTS Beginning balance Movement during the year Ending balance Notes Balance Payable amount Increase Decrease Balance Payable amount Long-term loans from 10,396,236,955,432 10,396,236,955,432 13,544,547,002,118 (13,557,564,539,666) 10,383,219,417,884 10,383,219,417,884 banks Convertible loans 439,278,942, ,278,942,399 10,337,695, ,616,637, ,616,637,420 Corporate bonds 22,287,168,627,156 22,287,168,627,156 13,761,078,444,983 (12,712,256,523,840) 23,335,990,548,299 23,335,990,548,299 TOTAL 33,122,684,524,987 33,122,684,524,987 27,315,963,142,122 (26,269,821,063,506) 34,168,826,603,603 34,168,826,603, Long-term loans from banks Details of long-term loans are presented as below: Ending balance Lender USD VND (*) Maturity date Interest rate Collateral (i) 12-month interest paid in arrears VND saving rate for individual (+) 3% to 3.5% per annum Joint Stock Commercial Bank for Foreign Trade of Vietnam 2,715,390,280,677 From January 2017 to December 2025 n hich current por on (ii) 12-month interest paid in arrears VND saving rate for individual (+) 3.5% per annum 1,711,600,000,000 From February 2017 to November 2018 Vietnam Joint Stock Commercial Bank for Industry and Trade n hich current por on (iii) 218,086,909,983 December month interest paid in arrears VND saving rate for individual (+) 1% per annum Joint Stock Commercial Bank for Investment and Development of Vietnam 3-month LIBOR (+) 5% per annum (iv) Syndicated loan (iv) 300,000,000 6,611,612,859,408 From January 2018 to July 2021 Convertible loan (v) 20,000, ,616,637,420 October % per annum TOTAL 10,832,836,055,304 In which: Long-term loans Current por on (*) Balances in VND as at 31 December 2016 is net-off with loan issuance costs. 178 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

92 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS i oans fro oint toc Co ercial Ban for Forei n rade of Vietnam These loans are secured by the land use rights and assets attached to the land of Vinhomes Central Park project; a part of assets and rights to receive the insurance benefit according to insurance contracts related to Vinpearl Ha Long Luxury Resort; machineries used in business operations of Maximark District 2 and all assets associated with Homyland 2 project of An Phong JSC, a subsidiary. ii oans fro ietna oint toc Co ercial Ban for ndustr and Trade These loans are secured by assets attached on land of Landmark 81 Tower (except apartment component) formed in the future, receivable rights of some apartment buildings in Vinhomes Central Park project and some treasury shares of the Company owned by a subsidiary (Note 29.5). iii oans fro oint toc Co ercial Ban for n est ent and Development of Vietnam This loan is secured by Vinmec International General Hospital in Nha Trang. (iv) Syndicated loan This loan is from Credit Suisse AG Singapore Branch, Industrial and Commercial Bank of China, Maybank International Labuan Branch, Taipei Fubon Commercial Bank Foreign Branch, United National Bank Ltd., Ta Chong Bank Ltd., Mega AC Mega Foreign Branch, ICBC Bejing, Hua Nan Commercial Bank Foreign Branch, First Commercial Bank OBU, Entie Commercial Bank Ltd and Chang Hwa Commercial Bank Hong Kong Branch with total principal of USD300 million, disbursed on 11 July 2016 and 8 September This loan is secured by a number of ordinary shares of certain subsidiaries owned by the Company and an individual. Con er ble loan fro P in est ent B arbur Pincus and Credit suisse in apore Branch Credit uisse These are loans from Credit Suisse and Warburg Pincus under Convertible Loans Agreement between Vincom Retail JSC, a subsidiary and two counterparties in 2013 and 2014 with the amount of USD15 million and USD5 million respectively, equivalent to VND341,850,000,000 and VND113,950,000,000 respectively (borrowing costs exclusive). These convertible loans bear an interest rate of 8.75% per annum and can be fully or partially converted into preference shares of Vincom Retail JSC three months after the earlier of (i) the completion date of issuing preference shares of Vincom Retail JSC to Credit Suisse and Warburg Pincus; and (ii) 31 March As at 31 December 2016, this loan has not been converted into preference shares of Vincom Retail JSC. a o es c corporate bonds Lender Ending balance Term and maturity Interest rate Collaterals Vietnam Joint Stock 2,792,825,000,000 June month interest paid-inarrears (i) Commercial Bank for VND saving rates (+) Industry and Trade 3% per annum Joint Stock Commercial 989,814,176,330 April month interest paid-inarrears (ii) Bank for Investment and VND saving rates (+) Development of Vietnam 5.5% per annum Vietnam Technological 18,580,227,647,564 From June 2017 to 12-month interest paid-inarrears (iii) and Commercial Joint February 2026 VND saving rates (+) Stock Bank 4% - 5% per annum; 8.5% n hich current por on of per annum; and 10% per long-term bonds annum Joint Stock Commercial 4,198,711,446,630 From October month interest paid-inarrears (iv) Bank for Foreign Trade of to February 2021 VND saving rates (+) Vietnam 3% per annum; and 7.75% per annum Vietnam Prosperity Joint 748,095,000,000 July % per annum (v) Stock Commercial Bank TOTAL 23,335,990,548,299 In which: Long-term bonds Current por on of long-term bonds Corporate bonds Ending balance Beginning balance Domestic corporate bonds (a) 27,309,673,270,524 17,947,487,676,853 n hich current por on of lon ter bonds (a) - International bonds (b) - 4,339,680,950,303 TOTAL 23,335,990,548,299 22,287,168,627,156 i ietna oint toc Co ercial Ban for ndustr and Trade These bonds are secured by a part of the shopping mall of Vincom Ba Trieu and Vincom Center Long Bien owned by North Vincom Retail LLC, a subsidiary. ii oint toc Co ercial Ban for n est ent and Development of Vietnam These bonds are secured by a part of assets associated with land of Vincom Mega Mall Royal City, part of its parking areas, and all incomes and benefits arising from these assets. 180 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

93 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS iii ietna echnolo ical and Co ercial oint toc Ban These bonds are secured by a number of treasury shares of the Company owned by a subsidiary, a part of VAP Project and 5-star hotel Vinpearl Nha Trang Resort project, a guarantee for payment by a subsidiary, guarantee by a trust fund of Asia Development Bank secured by shares of some subsidiaries, and a part of Vincom Dong Khoi Tower owned by the Company and a subsidiary. i oint toc Co ercial Ban for Forei n rade of ietna These are secured by part of land use rights, all machineries, equipment of Vinpearl Nha Trang Bay Resort & Villas and Vinpearl Premium Land and by a trust fund of Asia Development Bank secured by shares of some subsidiaries. 27. SHORT-TERM PROVISION ietna Prosperit oint toc Co ercial Ban These are secured by 10 villas at Vinhomes Riverside Eco-urban Area owned by a corporate counterparty, a number of treasury shares of the Company owned by other individuals and counterparties. b nterna onal bonds International bonds with face value of USD200 million were issued in November 2013, for a maturity of 4.5 years. These bonds are unsecured, bearing fixed interest rate of % per annum and the interest is paid twice a year. In 2016, the Company has early redeemed these bonds with repayment amount is determined under bond agreement and related documents. Currency: USD Movement during the year Beginning balance New issuance Converted to Due but not yet Ending balance shares converted Value 106,300,000 - (106,300,000) - - Current year Previous year Initial recognition of convertible bonds after deducting issuance costs 5,939,186,943,335 5,939,186,943,335 Equity component - - Liability component at initial recognition 5,939,186,943,335 5,939,186,943,335 Ending balance Beginning balance Warranty provision 127,414,378, ,697,938,748 Others 67,641,416,970 - TOTAL 195,055,795, ,697,938,748 Add: Accumulated amortisation of bond issuance costs Beginning balance 295,037,817, ,522,147,579 Amortisation during the year 13,600,239, ,515,669,668 Ending balance 308,638,056, ,037,817,247 Minus: Accumulated conversion at the end of the year (6,270,000,000,000) (4,048,330,000,000) 28. CONVERTIBLE BONDS Convertible bonds amounting to USD300 million were issued in April and July 2012 with a term of 5 years. This type of bond is unsecured, and bear fixed interest rate of 5% per annum. Management assesses there is no equity component in these convertible bonds (since there is not known fixed number of shares to be converted on issue date) and as a result, has recognised the entire convertible bonds as financial liabilities. Following the terms of these convertible bonds, the bondholders have the right to convert the bonds into ordinary shares of the Company at the price which is subject to annual adjustment on 3 Octorber, from 3 Octorber 2012 to 3 Octorber During the year, the bondholders converted all convertible bonds into ordinary shares of the Company. Add: Unrealised foreign exchange loss arising from 22,175,000, ,189,341,667 revaluation Add: Realised foreign exchange loss - 14,317,658,333 Liability component at the end of the year - 2,382,401,760,582 During 2016, the bondholders converted bonds with total par value of USD106,300,000 into 71,666,764 ordinary issued share capital by VND716,667,640,000 and share premium by VND1,485,854,312,538. shares of the Company at the price of VND31,000 per share. This conversion increased the Company s 182 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

94 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 29. OWNERS EQUITY 29.1 INCREASE AND DECREASE IN OWNERS EQUITY Issued share capital Share premium Treasury shares Other funds belonging to owners equity Undistributed earnings (Restated) Non-controlling interest (Restated) (i) Total Previous year (Restated) Beginning balance 14,545,550,980,000 4,582,534,150,067 (2,974,924,074,484) 22,845,114,930 4,220,035,125,587 7,066,647,379,677 27,462,688,675,777 Net profit for the year ,215,774,826, ,700,617,371 1,501,475,443,451 Conversion of bonds 372,690,630, ,507,720, ,083,198,350,930 Distribution to other funds ,000,000,000 (5,000,000,000) - - Stock dividends 3,763,639,260, (3,763,639,260,000) - - Capital contribution by non-controlling interest Acquisition of new subsidiaries Step-up acquisition of equity interest in existing subsidiaries Partial disposal of equity interest in existing subsidiaries without loss of control ,544,319,623,168 7,544,319,623, ,610,182, ,610,182, (182,625,670,826) 47,496,474,797 (135,129,196,029) - 477,565,957, (91,409,988,137) (260,254,138,062) 125,901,831,403 Disposal of subsidiaries (136,460,041,659) (136,460,041,659) Dividend declared to noncontrolling interest Adjustment for share of profit after tax to noncontrolling interest in previous year Deferred tax asset regarding treasury shares held by subsidiaries (Note 36.3) (553,515,146,415) (553,515,146,415) ,055,416,737 (178,055,416,737) ,119,635, ,715,537,715 31,835,173,424 Ending balance 18,681,880,870,000 5,798,727,464,308 (2,974,924,074,484) 27,845,114,930 1,571,190,449,441 14,480,205,072,598 37,584,924,896, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

95 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS Issued share capital Share premium Treasury shares Other funds belonging to owners equity Undistributed earnings (Restated) Non-controlling interest (Restated) (i) Total Current year Beginning balance (Restated) 18,681,880,870,000 5,798,727,464,308 (2,974,924,074,484) 27,845,114,930 1,571,190,449,441 14,480,205,072,598 37,584,924,896,793 Bonus issue 4,844,731,620,000 (4,844,731,620,000) Net profit for the year ,439,510,861,997 1,073,557,030,509 3,513,067,892,506 Stock dividends 2,133,799,410, (2,133,799,410,000) - - Conversion of bonds (Note 28) Distribution to other funds Capital contribution by non-controlling interest Acquisition of new subsidiaries Step-up acquisition of equity interest in existing subsidiaries Partial disposal of equity interest in existing subsidiaries without loss of control 716,667,640,000 1,485,854,312, ,202,521,952, ,000,000,000 (5,000,000,000) ,400,346,395,000 1,400,346,395, (23,825,982,181) 4,910,229,837,099 4,886,403,854, (1,360,145,951,101) (2,646,722,525,621) (4,006,868,476,722) - 65,109,580, ,415,285, ,747,117,687 1,080,271,983,586 Disposal of subsidiaries ,200,042, ,200,042,135 Dividend declared to non-controlling interest (1,948,473,636,171) (1,948,473,636,171) Ending balance 26,377,079,540,000 2,504,959,737,448 (2,974,924,074,484) 32,845,114, ,345,253,453 18,384,089,333,236 45,266,394,904, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

96 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS (i) Non-controlling interest as at 31 December 2016 included: Capital contribution of VND5,925 billion (equivalent to USD279 million) from Warburg Pincus and Credit Suisse into Vincom Retail JSC, a subsidiary, in accordance with the agreements signed between the Company, Vincom Retail JSC and other companies within the Group with Warburg Pincus and Credit Suisse on 28 May 2013 and 12 July 2013 together with subsequent amendments. In which, capital contribution in the year 2015 was VND2,152 billion (equivalent to USD99 million). Vincom Retail JSC issued preference shares and ordinary shares to Warburg Pincus and Credit Suisse. Preference shares issued by Vincom Retail JSC are dividend preference shares, which are convertible into the ordinary shares of Vincom Retail JSC and entitled to other privileges. Pursuant to the Mortgage Agreement between Vincom Retail JSC, Warburg Pincus and Credit Suisse dated 12 July 2013 and subsequent amendments in relation to the issuance of preference shares by Vincom Retail JSC and the convertible loan ( the mortgage terms ) as presented in Note , the entire equity interest of Vincom Retail JSC in North Vincom Retail LLC have been used as collaterals for irrevocably guaranteeing the Group s obligations under the transaction documents, the Founders and the Company s obligations in relation to the put options granted to Warburg Pincus and Credit Suisse. According to the mortgage terms, North Vincom Retail LLC is establised through merger of subsidiaries of the Group, including Vincom Mega Mall Royal City LLC, Vincom Mega Mall Times City LLC, Vincom Center Ba Trieu LLC, Vincom Center Ha Long, 29.2 CAPITAL TRANSACTIONS WITH OWNERS Hai Phong Land Investment and Development LLC and Hanoi Entertainment Sport Culture Center JSC. As at 31 December 2016, the Group has mergered a number of subsidiaries into North Vincom Retail LLC. Capital contribution of VND3,235 billion from Continental Pacific Investment LLC ("Continental Pacific LLC") in Vinpearlland JSC, a subsidiary, in accordance with the agreements signed between Vinpearlland JSC and other companies with Continental Pacific LLC dated 8 December Vinpearlland JSC issued preference shares and ordinary shares to Continental Pacific LLC. Preference shares of Vinpearlland JSC held by Continental Pacific LLC are dividend preference shares, which are entitled to other privileges. Pursuant to the Mortgage Agreement between Royal City JSC and Vinpearlland JSC, subsidiaries, and Continental Pacific LLC on 12 December 2016 in relation to the issuance of preference shares of Vinpearlland JSC, 308,983,560 shares of Vincom Retail JSC held by Royal City JSC and Vinpearlland JSC are used as collaterals to guarantee Vinpearlland JSC s obligations under the transaction documents and for the Founders and a corporate counterparty s obligations in relation to put options granted to Continental Pacific LLC. This capital contribution was transferred from the investment of Continental Pacific LLC in Vinmec JSC, another subsidiary, according to an agreement dated 7 December (*) On 16 August 2016, General Shareholders of the Company adopted Resolution No. 02/2016/NQ-DHDCD-VIN- GROUP on the issuance of bonus share from share premium to existing shareholders at the ratio of 1,000:225 in order to increase share capital DIVIDEND Current year Previous year Dividend declared and paid during the year (*) 2,133,799,410,000 3,763,639,260,000 toc di idend per ordinar share in per share per share (*) On 22 April 2016, General Shareholders of the No. 514/2016/CV-TGD-VINGROUP dated 13 June Company adopted Resolution No. 01/2016/NQ-DHDCD about the public anouncement of stock dividends. VINGROUP on the declaration of stock dividends at the Accordingly, the number of additional shares that the ratio of 1,000:110 (each existing shareholder owning Company issued was 213,379,941 under the Notification 1,000 receives dividends of 110 shares). 28th June 2016 No. S023/2016-VIC/VSD dated 28 June 2016 of the was the date to finalise the list of shareholders who are Securities Depository Center. entitled to receive stock dividends under Official Letter 29.4 ORDINARY SHARES AND PREFERENCE SHARES Ending balance Beginning balance Authorised shares 2,637,707,954 1,868,188,087 Issued shares 2,637,707,954 1,868,188,087 Ordinary shares Preference shares - - Shares in circulation 2,456,818,742 1,735,156,855 Ordinary shares Preference shares - - Issued share capital Current year Previous year Treasury shares 180,889, ,031,232 Ordinary shares Beginning balance 18,681,880,870,000 14,545,550,980,000 Preference shares - - Increase 716,667,640,000 4,136,329,890,000 Stock dividend 2,133,799,410,000 - The par value of outstanding share: VND10,000 per share (2015: VND10,000 per share). Bonus shares (*) 4,844,731,620,000 - Ending balance 26,377,079,540,000 18,681,880,870, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

97 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 29.5 TREASURY SHARES As at 31 December 2016, the number of shares of the Company held by subsidiaries is as below: Vinpearl JSC holds 90,039,008 shares, in which, 15,395,089 shares are used as collaterals to guarantee obligations in relation to a bond (Note ); 19,000,000 shares are used as collaterals to guarantee a loan (Note ); and 3,741,292 are deposited at bank to guarantee the Group s obligations under future credit agreements; Royal City LLC, a subsidiary, holds 60,426,722 shares, in which, 34,500,000 shares are used as collaterals to guarantee payments for a deposit received by the Company; and 21,754,660 shares are used as collaterals for a loan of a subsidiary of the Group (Note ); Vincommerce JSC, a subsidiary, holds 18,550,241 shares which are used as collaterals for a loan obtained by a subsidiary of the Group (Note ); and Xavinco JSC, a subsidiary, holds 11,873,241 shares, in which, 3,793,000 shares are used as collaterals for a loan payable by the Company (Note ); and 4,938,929 shares are used as collaterals for a loan payable by a corporate counterparty. Current year Previous year Net revenue 57,614,343,665,894 34,047,966,313,102 In which: ale of in entor proper es easin ac i es and renderin related services enderin of hotel ser ices a use ent par ser ices and related ser ices Rendering of hospital services and related services 30. REVENUES ale of oods in super ar ets convenient stores and retail outlets 30.1 REVENUE FROM SALE OF GOODS AND RENDERING OF SERVICES Current year Previous year enderin of educa on ser ices and related services Others In which: Gross revenue 57,670,387,202,439 34,054,968,884,836 In which: Sale to others ale to related par es ote ale of in entor proper es easin ac i es and renderin related services 30.2 REVENUE AND EXPENSE RELATING TO INVESTMENT PROPERTIES enderin of hotel ser ices a use ent par ser ices and related services Rendering of hospital services and related services ale of oods in super ar ets convenient stores and retail outlets enderin of educa on ser ices and related services Current year Previous year Income from leasing investment properties 3,321,913,007,632 2,655,125,765,258 Direct operating expenses of investment properties 1,602,025,651,331 1,299,884,812,167 that generated income during the year Direct operating expenses of investment properties 15,640,100,716 13,930,867,408 that did not generate income during the year Income from trading of investment properties 4,731,612,000 - Others Less sales deduction (56,043,536,545) (7,002,571,734) 190 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

98 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 30.3 FINANCE INCOME 32. FINANCE EXPENSES Current year Previous year Interest income from loans and deposits 1,190,500,694,694 1,637,439,302,366 Gains from disposal of financial investments 3,859,473,487, ,118,020,321 Foreign exchange gains 232,870,285,809 30,813,033,113 Dividend income 18,377,216,675 8,460,239,107 Gains on re-measurement of investments in business 548,351,612,959 - combination achieved in stages Others 11,983,333,554 7,689,485,415 Current year Previous year Loan interest (including amortisation of bond and convertible bond 4,308,066,793,490 2,721,940,288,870 issuance costs) Loss from declaration fair value of an investment 805,779,509,476 - Foreign exchange losses 167,939,028, ,828,628,307 Provision for diminution in value of investments made/(reversed) 60,231,560,196 (16,848,788,998) Others 47,017,180,960 39,154,787,797 TOTAL 5,389,034,072,187 3,282,074,915,976 TOTAL 5,861,556,630,724 1,931,520,080, SELLING EXPENSES AND GENERAL AND ADMINISTRATIVE EXPENSES 31. COST OF GOODS SOLD AND SERVICES RENDERED Current year Previous year Selling expenses Current year Previous year Labor costs 1,464,088,652, ,393,418,962 Inventory properties sold 22,707,240,650,972 12,594,041,335,413 Leasing activities and rendering related services 1,617,665,752,047 1,313,815,679,575 Rendering of hotel services, amusement park services 4,672,696,626,891 2,214,225,322,491 and related services Rendering of hospital services and related services 897,688,516, ,822,011,722 Cost of goods sold in supermarkets, convenient stores 8,514,918,751,254 3,762,913,601,872 and retail outlets Rendering of education services and related services 546,422,771, ,757,050,359 Others 1,227,999,536,570 1,549,358,560,059 TOTAL 40,184,632,606,036 22,338,933,561,491 Raw materials, tools and supplies 151,577,651,970 83,326,116,492 Depreciation and amortisation 511,786,167, ,964,017,309 External service expenses 4,134,457,194,645 1,593,620,134,637 Others 410,906,027, ,521,989,039 6,672,815,695,018 2,957,825,676,439 General and administrative expenses Labor costs 1,517,028,703,068 1,110,047,951,059 Depreciation and amortisation of fixed assets and goodwill 1,342,316,321, ,405,400,852 External service expenses 832,123,777,653 1,069,392,897,794 Support and charity expenses 1,326,843,735, ,568,804,205 Others 507,777,924, ,358,100,202 5,526,090,462,009 3,922,773,154,112 TOTAL 12,198,906,157,027 6,880,598,830, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

99 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 34. OTHER INCOME AND EXPENSES 36. CORPORATE INCOME TAX Current year Previous year Other income 688,479,678, ,039,374,788 Transferring of right to develop a project 450,000,000,000 - Disposal of fixed assets 11,796,442,562 35,700,385,497 Compensation income 143,710,158,776 70,708,814,696 Gains from bargain purchase on business combination - 123,824,134,645 Others 82,973,077,019 52,806,039,950 The current statutory corporate income tax ( CIT ) rate applicable to the Company and its subsidiaries is 20%, except for the following entities: Vinpearl Nha Trang LLC, Vinpearlland JSC (Nha Trang and Phu Quoc branches) apply the incentive tax rate of 10% for activities as rendering hotel, amusement park and related services excluding transferring inventory of properties activities; Vinmec JSC applies the incentive tax rate of 10%; VinEco LLC and VinEco Tam Dao LLC apply the incentive tax rate of 15%; and The tax returns filed by the Company and its subsidiaries are subject to examination by the tax authorities. As the application of tax laws and regulations is susceptible to varying interpretations, the amounts reported in the consolidated financial statements could be changed at a later date upon final determination by the tax authorities. Other expenses 618,871,762, ,045,248,993 Disposal of fixed assets 224,910,588,639 72,547,843,357 Penalty paid 312,368,662, ,917,328,631 Others 81,592,510,547 36,580,077,005 Vinschool LLC and Phu Quoc Tourism JSC are in the tax exemption period CIT EXPENSES NET OTHER PROFIT/ (LOSS) 69,607,916,270 (665,005,874,205) Current year Previous year 35. PRODUCTION AND OPERATING COSTS Current tax expense 2,534,168,929,813 1,424,642,826,631 Deferred tax income (254,477,855,941) (74,017,304,681) Current year Previous year TOTAL 2,279,691,073,872 1,350,625,521,950 Raw materials 10,576,707,421,358 5,631,331,843,325 Cost of developing inventory properties 43,139,203,044,646 22,299,459,268,555 Labour costs 5,006,641,648,907 2,273,760,802,057 Depreciation and amortisation 3,342,836,031,423 2,339,355,227,442 Expenses for external services 7,506,395,119,722 4,006,701,892, CURRENT TAX The current CIT payable is based on taxable profit for the current year. The taxable profit of the Group for the year differs from profit as reported in the consolidated income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are not taxable or deductible. The Group s liability for current tax is calculated using tax rates that have been enacted by the balance sheet date. Reconciliation between CIT expenses and the accounting profit multiplied by applicable CIT rate is presented below: Others (excluding finance expenses) 3,243,717,890,681 2,374,341,291,041 TOTAL 72,815,501,156,737 38,924,950,325, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

100 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS Current year Previous year (Restated) Accounting profit before tax 5,792,758,966,378 2,852,100,965,401 At CIT rate applied to the Company 1,158,551,793, ,462,212,388 Effect of variable tax rates applied to subsidiaries (18,322,899,619) (16,745,356,166) Losses of subsidiaries 611,427,189, ,787,724,269 Allocation of the differences between consideration and 243,248,959,644 14,387,665,444 carrying value of net assets under acquisition of group of assets Donations 245,641,012,215 34,952,328, DEFERRED TAX The following are the deferred tax assets and deferred tax liabilities recognised by the Group, and the movements thereon, during the current and previous year: Consolidated balance sheet Consolidated income statement Ending balance Opening balance Current year Previous year Deferred tax assets Unrealised profit from intertransactions 194,022,890,385 80,540,170, ,482,720,068 57,503,655,845 within the Group Selling expenses allowable for 66,586,444,793 13,013,856,584 33,071,116,494 13,013,856,584 capitalisation for tax purpose in the year Treasury shares held by 31,835,173,424 31,835,173, subsidiaries Goodwill allocation in the consolidated financial statements 214,870,028, ,600,118,587 Assets used as capital contribution to subsidiaries 30,874,229,236 42,971,435,401 (12,097,206,165) 10,255,510,879 Impacts from acquisition and disposal of shares of (326,571,845,091) (59,331,890,829) subsidiaries in the consolidated financial statements Adjustment for CIT incentives (8,155,490,173) (9,380,219,059) Shared profit from associates (3,964,717,748) (8,630,105,924) Dividend income (3,675,443,335) (1,861,252,604) Others 5,286,061,097 1,797,321,735 3,488,739, ,348,544 Deferred tax liabilities Assets used as capital (8,779,295,223) (12,544,961,545) 3,765,666,322 11,951,871,101 contribution to subsidiaries Deferred tax for bond issuance cost in subsidiaries (2,568,532,800) (3,210,666,000) 642,133,200 (3,210,666,000) Others 32,661,636,216 27,372,479,403 Tax losses carried forward (221,028,790,676) (13,202,777,526) Losses ineligible for offsetting against taxable income 355,009,640,377 89,214,594,988 Estimated CIT expense charged to the consolidated income statements 2,279,691,073,872 1,350,625,521,950 Revaluation of project development right of Hon Mot project Unearned revenue of Tri An Tan Gia program Fair value adjustment from acquisition of subsidiaries (10,782,089,058) (13,510,761,290) 2,728,672,232 3,052,362,750 - (19,832,420,863) 19,832,420,863 (19,832,420,863) (333,223,610,138) (423,110,288,216) 89,886,678,078 1,475,888,403 Others (2,459,939,074) (2,136,854,561) (323,084,513) (1,158,102,562) Net deferred CIT liabilities (29,208,667,358) (304,187,995,015) Deferred tax charged to the consolidated income statement 254,477,855,941 74,017,304,681 Presented on the consolidated balance sheet Deferred tax assets 328,604,798, ,157,957,461 Deferred tax liabilities (357,813,466,293) (474,345,952,476) Net deferred CIT liabilities (29,208,667,358) (304,187,995,015) 196 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

101 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 36.4 UNRECOGNISED DEFERRED TAX Tax losses carried forward Related parties Relationship Transactions Current year VND Previous year VND The Group are entitled to carry each individual tax loss Company and its subsidiaries, which have not been forward to offset against taxable profits arising within finalised by the local tax authorities as of the date of these five years subsequent to the year in which the loss was consolidated financial statements. No deferred tax assets incurred. At the balance sheet date, the Group had has been recognised in respect of these accumulated tax accumulated tax losses of VND5,805 billion available for losses (VND5,805 billion) because future taxable profit offset against future taxable profits. These are estimated cannot be ascertained at this stage. accumulated tax losses as per the CIT declarations of 37. TRANSACTIONS WITH RELATED PARTIES Green City JSC Associate (until 15 July 2016) Vien Dong Pearl LLC Associate (until 20 June 2016) Lending - 500,000,000,000 Collection of loan principal - (500,000,000,000) Borrowing - (475,000,000,000) Repayment of loan 424,700,000,000 60,300,000,000 principal Significant transactions with related parties during the year were as follows: Related parties Relationship Transactions Current year Previous year VND VND Vietnam Investment Under Collection from - (163,028,002,628) Group JSC common transfer of assets owners Payables due (432,848,844,386) - to revision of land transfer agreement Receivables from 28,613,805,825 - infrastructure using fee Repayment due 404,235,038,561 - to revision of land transfer agreement after being offset with infrastructure using fee Payables for (49,273,329,999) (49,776,134,732) rental and other service Foreign Trade Concrete JSC Kind Heart Foundation Truong Thanh Furniture Corporation Associate (until 23 December 2016) Under common owners Associate (from 30 November 2016) Providing concrete (20,951,956,204) (113,586,469,600) Payment of concrete expense 36,264,594,345 97,033,262,542 Charity expenses (1,024,460,000,000) (201,694,581,574) Cash transferred 670,000,000,000 69,100,359,367 to Kind Heart Foundation Construction fee 84,924,238,604 - receivables Construction fee (147,991,950,236) - received Receivables for 19,165,633,000 - collection on behalf Payables for (23,171,440,992) - collection on behalf Collection of loans (169,563,472,214) - principal Lending 82,485,000,000 - Interest receivables (130,436,527,786) - Payment for rental and other service 49,273,329,999 51,458,644, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

102 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS Related parties Relationship Transactions Current year VND Previous year VND Key members of Key Downpayment - (422,848,705,600) management members of management from customers to purchase villas Receivables from 585,521,325,121 - sales of villas and rendering related services Collection from sales of villas and rendering related services (161,546,505,153) - Related parties Relationship Transactions Ending balance VND Short-term trade receivables (Note 7.1) Key members of management Other related parties Advances to suppliers Truong Thanh Furniture Corporation Key members of management Other related parties Associate (from 30 November 2016) Receivables from sale of villas Services fee receivables Advance for wood supply Beginning balance VND 2,533,193, ,767,914,218 11,319,259,495 76,717,175,845 17,538,001,271 - er s and condi ons of transac ons ith related par es Other related parties Other related parties Other advances 1,213,992,000-18,751,993,271 - During current year, the Group provided loans earning During the year, the Group has not made provision for interests to related parties. These loans are to be settled doubtful debts relating to amounts due from related in cash or offset against receivables and have collateral as parties (31 December 2015: nil). This assessment is disclosed below. undertaken each year through the examination of the financial position of the related parties and the market in During current year, the Group sold/purchased goods which the related parties operate. and services to/from related parties based on the price offered to third parties. Amounts due to and due from related parties as at 31 December 2016 were as follows: Short-term loan receivables (Note 8) Thang Long JSC Truong Thanh Furniture Corporation Associate (until 29 December 2016) Associate (from 30 November 2016) Short-term loans - 55,204,181,818 Short-term loans 1,367,725,527,787-1,367,725,527,787 55,204,181,818 Related parties Relationship Transactions Ending balance Short-term trade receivables (Note 7.1) VND Beginning balance VND Other receivables (Note 9) Kind Heart Foundation Under common owners Charity expense receivables 1,066,579,317 5,526,579,317 Kind Heart Foundation Under common owners Construction fee receivables Receivables from rendering hospital service 5,825,479,978 68,893,191,610 2,960,585,919 1,056,070,017 Truong Thanh Furniture Corporation Other related parties Associate (from 30 November 2016) Other related parties Interest receivables 8,284,768,374 - Other receivables - 5,432,460,002 9,351,347,691 10,959,039, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

103 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS Related parties Relationship Transactions Ending balance VND Beginning balance VND Related parties Relationship Transactions Ending balance VND Beginning balance VND Short-term trade payables (Note 21.1) Other short-term payables (Note 25.1) Foreign Trade JSC Associate (until 23 Dec 2016) Payables for construction materials - 14,494,336,920 Phu Quoc Tourism JSC Associate (from 22 Dec 2016) Payables for business co-operation contract 700,000,000,000 - Other related parties Other related parties Advance from customers (Note 21.2) Kind Heart Foundation Under common owners Short-term accrued expenses (Note 23) Payables for providing goods and rendering of services Advances for hospital service 5,218,835,859-5,218,835,859 14,494,336,920 2,394,046,903-2,394,046,903 - Key members of management M.Y.M Fashion JSC Kind Heart Foundation Other related parties Key members of management Associate (from 10 December 2015 to 3 August 2016) Under common owners Other related parties Deposits for purchasing villas at some projects 1,407,079, ,848,705,600 Centralised cash flow - 18,178,161,051 management payables Payables for collection - 86,238,674 on behalf Other payables 4,005,807,992 - Other payables - 1,265,044,684 Vien Dong Pearl LLC Truong Thanh Furniture Corporation Associate (until 20 June 2016) Associate (from 30 November 2016) Interest payables - 5,025,300,000 Payables for 1,047,955,645 - construction materials Short-term loans (Note 26.1) Vien Dong Pearl LLC Associate (until 20 June 2016) 705,412,887, ,378,150,009 Short-term loans - 424,700,000, ,700,000,000 Kind Heart Foundation Under common owners Payables for committed charity expense 350,000,000,000 - Other related parties Other related parties Other payables - 1,451,350, ,047,955,645 6,476,650,924 Unearned revenue (Note 24) Key members of management Key members of management Unearned revenue 81,871,768,284-81,871,768, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

104 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS Details on loans due from related parties and related interest rates are as follows: The following reflects the income and share data used in the basic and diluted earnings per share computations: Related parties Relationship Interest Short-term loan receivables (Note 8) rate Maturity date Collaterals Ending balance VND Current year Previous year (Restated) Truong Thanh Furniture Corporation Associate (from 30 November 2016) 10% per annum 10% per annum 7% per annum June 2017 (i) 529,498,750,007 July 2017 (i) 502,837,777,780 From February None 335,389,000, to June 2017 Net profit after tax attributable to ordinary shareholders 2,439,510,861,997 1,215,774,826,080 Net profit attributable to ordinary shareholders 2,439,510,861,997 1,215,774,826,080 adjusted for the effect of dilution Weighted average number of ordinary shares (excluding 2,070,880,886 1,602,759,048 treasury shares) for basic earnings per share Effect of bonus issues in June ,303,495 1,367,725,527,787 Effect of bonus issues in August ,289,072 (i) These loans are secured by shares of some subsidiaries held by Truong Thanh Furniture Corporation and other properties. Remuneration to members of the Board of Directors and the management of the Company: Weighted average number of ordinary shares (excluding 2,070,880,886 2,179,351,615 treasury shares) for basic earnings per share Basic earnings per share 1, Diluted earnings per share 1, Current year Previous year Preference shares and convertible loans issued by Vincom Retail JSC, a subsidiary, could potentially dilute basic earnings per share in the future, but they were not included in the calculation of diluted earnings per share because they are anti-dilutive for the years presented. Salaries and bonus 19,866,740,632 24,709,478,446 TOTAL 19,866,740,632 24,709,478, COMMITMENTS AND CONTINGENCIES CAPITAL EXPENDITURE COMMITMENTS RELATING TO ON-GOING REAL ESTATE PROJECTS COMMITMENT UNDER OPERATING LEASES WHERE THE GROUP IS A LESSOR 38. EARNINGS PER SHARE Basic earnings per share amounts are calculated by dividing net profit/(loss) after tax for the year attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share amounts are calculated by dividing the net profit/(loss) after tax attributable to ordinary shareholders of the Group (after adjusting for dividend on the convertible preference shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. The Group has entered into a number of contracts relating to the development of certain real estate projects. The remaining commitment on these contracts amounted to approximately VND33,680 billion as at 31 December 2016, in which commitments related to land use right are VND836 billion. The Group, as lessor, lets out office, retail and mixed use spaces under operating lease agreements. The future minium rental receivables under the agreement as at 31 December 2016 are as follows: Ending balance Beginning balance Less than 1 year 2,173,406,499,123 1,550,500,448,342 From 1 to 5 years 4,182,661,576,564 2,605,382,920,856 More than 5 years 3,328,399,202,222 1,770,642,136,912 TOTAL 9,684,467,277,909 5,926,525,506, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

105 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS Under the business co-operation contract signed in February 2012 between certain subsidiaries of the Group and Thien Huong Investment JSC ("Thien Huong JSC") regarding the school operation in Vinhomes Riverside and Vinhomes Royal City projects, the Group is entitled to the share of Thien Huong JSC s revenue, which is equal to 15% of revenue and can be adjusted according to the business co-operation contract. The duration of the cooperation contract is from February 2012 to the end of August COMMITMENT UNDER OPERATING LEASES WHERE THE GROUP IS A LESSEE The Group, as lessee, entered into certain operating lease agreements with the minimum lease commitments under these agreements as at 31 December 2016 as follows: Ending balance Beginning balance Less than 1 year 513,275,413, ,904,000,252 From 1 to 5 years 1,629,402,985,098 1,315,048,177,986 More than 5 years 5,387,453,710,610 3,858,014,544,056 TOTAL 7,530,132,109,567 5,558,966,722,294 Under the co-operation contracts signed in May 2015 between An Phong JSC and a corporate counterparty regarding the co-operation in constructing and exploiting Maximark Go Vap and Maximark Bien Hoa Projects, this fee adjusted according to the co-operation contracts. Duration of the co-operation contracts is 35 years from the completion and finalization date of the projects; after that, two parties signed lease contract. corporate counterparty will be entitled to the rental OTHER COMMITMENTS Co it ents related to the real estate pro ect at and B u en rai hanh uan anoi According to the Share Transfer Contract for strategic investor signed between the Company and VEFAC One Member LLC dated 13 March 2015, the Company In accordance with the co-operation agreement dated 20 April 2015 between Xavinco JSC and a corporate counterparty regarding the development of a real estate project, Xavinco JSC committed to provide financial support to the counterparty for carrying out its relocation with an amount of VND71 billion as well as to provide committed to raise 100% financing sources for the development of National Exhibition Center Project following the approved master plan. The Company also commits to complete phase 1 of National Exhibition Center Project within 3 years since receiving of the project site except for delays due to objective conditions. loan to this counterparty to make capital contribution into Xalivico JSC with an amount of VND130 billion. The remaining commitment of this agreement as at 31 December 2016 are VND130 billion. Commitments under the contract to purchase shares of F C C Co it ents under Construc on contract of Phu uoc nterna onal Passen er Port ien ian pro ince under BOT mode According to Decision of Kien Giang People Committee dated 3 April 2015 on approval of appointing investor for Phu Quoc International Passenger Port project, Phu Quoc Tourism JSC was appointed to be the investor under BOT contract. The total suggested BOT capital assigned to the investor is VND493 billion. After the project is completed, the investor will be entitled to operate, manage, and transfer the project in the expected period of 30 years. Co it ents related to business coopera on and leasin contracts of n Phon C Under the business co-operation contract and the lease contracts of a number of commercial centers between An Phong JSC and corporate counterparties in Ho Chi Minh City and Dong Nai, An Phong JSC commits to transfer back the construction and fixed equipment attached to the existing structure to the lessors or the counterparties without any additional conditions at the end of the contract duration. Commitment to transfer a certain part of Vincom Ba Trieu Tower A&B On 31 July 2006, the Company had transferred certain parts of the Vincom City Towers to a corporate counterparty. According to the Transfer Agreement, the Group has committed to transfer the ownership of the following investment properties to this corporate counterparty on 20 July 2052: The ownership of half of the commercial area (from 1st floor to 6th floor of Vincom City Towers (the towers ), except for the reception and elevator waiting area of 160m2 on the 1st floor); and The ownership of 31% of the basement 1 and basement 2 of the towers. Commitment under interest support agreements to buyers of apart ents illas at the roup s pro ects According to three-party (3) interest support agreements among the investors, buyers of the inventory properties of the Group s projects and certain banks, the investors commit to support the buyers in getting loans to finance for a part of the selling price and to settle the interest in committed period. In addition, Royal City JSC has entered into three-party (3) agreements with the buyers of the apartments at Vinhomes Royal City project and certain banks who provide loans to these customers for buying apartment from Royal City JSC. Under this agreement, there are some key terms as follows: (i) The banks will provide loans to the buyers to finance for the purchase apartment at Royal City project; and (ii) In case the buyers breach the terms and conditions of the loan agreements signed with the banks, the bank can require Royal City JSC to buy back the apartment units at a price of at least 80% of the downpayments received by Royal City JSC from the buyers under the apartment sale agreement. Commitments related to program of management services and villas rental Vinpearl Phu Quoc LLC, Vinpearl Nha Trang LLC, and Vinpearl Danang LLC have provided management and leasing services to customers who bought villas from these entities. Accordingly, for the first 10 years from the date of villas being handed over, customers are guaranteed by these entities to receive a higher amount between: (i) 8% per annum to 10% per annum on the total price of the villa sale contract; and (ii) 85% on the annual net leasing income from the sublease of the villa to third parties. Co it ents for the addi onal shares transfer of an e is n subsidiar fro indi idual counterpar es According to shares transfer contract dated 6 December 2016 between the Company and individual counterparties, the Company commits to acquire 98,250,000 shares, equivalent to 15% of share capital in an existing subsidiary. The value of this contract is VND2,701.9 billion. As at 31 December 2016, the Company has deposited an amount of VND2,500 billion to these individual counterparties for acquiring the shares. 206 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

106 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 40. SEGMENT INFORMATION For the management purpose, the operating businesses are organised and managed separately according to the nature of the products and services provided, and consist of business segments as follows: Sales of inventory properties: including developing and trading apartments and villas at real estate projects of the Group as well as other investment activities in real estate sector; Leasing investment properties and related services: including leasing of office and retail areas and rendering related services at investment properties owned by the Group; Hospitality, entertainment and related services: including provision of hotel and related services at the hotels and resorts owned by the Group; Health care and related services: including provision of health care and related services at Vinmec International General Hospitals; Education and related services: including provision of education and related services at Vinschool system and Vinacademy of the Group; Retail services: including provision of retailing and supermarket, convenience stores; fashion showrooms; and Others: including provision of management, construction services, security, agriculture, trading wooden goods and other services. The following tables present revenue and profit and certain assets and liability information regarding the Group s business segment as at 31 December 2016 and for the year then ended: Sale of inventory properties Leasing investment properties and related services Hospitality, entertainment and other services Health care and related services Education and related services Retail services Others Adjustment and elimination Total Net revenue Net sale to external customers Net inter-segment sales (1) 37,295,758,090,569 3,321,913,007,632 4,256,597,378,984 1,092,565,847, ,567,649,695 9,247,730,309,731 1,687,211,381,425-57,614,343,665, ,439,299, ,286,861,150 19,522,698,400 5,243,000,000 6,450,072,536,958 8,113,801,056,318 (15,916,365,452,681) - Net total revenue 37,295,758,090,569 4,223,352,307,487 4,682,884,240,134 1,112,088,546, ,810,649,695 15,697,802,846,689 9,801,012,437,743 (15,916,365,452,681) 57,614,343,665,894 Results Depreciation and amortisation Share in profit/(loss) of associates Segment profit/ (loss) (2) 897,218,500, ,630,276, ,046,977, ,036,932,501 16,240,740, ,827,039, ,835,563,982-3,342,836,031,423 33,852,809, ,055, (11,599,836,920) (3,238,440,105) - 19,823,588,740 9,244,759,500,607 1,778,967,661,151 (1,213,476,245,682) (336,058,880,998) 86,363,582,864 (3,132,380,131,984) 1,968,039,420,197 (2,603,455,939,777) 5,792,758,966,378 Assests Investment in associates ,402,043, ,654,104,725 1,108,753,102,823-1,728,809,250,992 Capital expenditure 9,459,436,474,780 10,490,410,026,319 2,588,774,665,668 1,317,754,651,568 7,937,460,151 1,303,484,639,265 1,257,298,336,245-26,425,096,253,996 Total assests (3) 96,972,199,224,819 34,999,272,075,263 17,710,593,265,940 4,049,820,830, ,858,284,579 11,954,387,982,050 3,801,190,544,771 10,489,527,486, ,450,849,693,794 Total liabilities (4) 70,102,442,562,452 1,515,057,108,910 9,423,202,768, ,318,300, ,722,898,217 2,800,853,242,765 1,458,757,307,076 49,074,100,600, ,184,454,789, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

107 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 1. Net inter-segment sales are eliminated in consolidation. 2. Segment profit does not include: Finance income 5,861,556,630,724 Finance expenses (5,389,034,072,187) Other income 688,479,678,357 Other expenses (618,871,762,087) Reversal of provision for loan principal and interests receivables 64,060,421,393 Total 606,190,896,200 Eliminate: 4. Segment liabilities do not include the following items because these liabilities are managed on a group basis: Statutory obligations 7,366,546,933,741 Accrued interest expenses 1,205,242,481,968 Dividend payables 385,018,955,101 Short-term loans and debts 5,590,652,159,634 Long-term loans and debts 34,168,826,603,603 Deferred tax liabilities 357,813,466,293 Total 49,074,100,600,340 Inter-segment income (3,209,646,835,977) (2,603,455,939,777) 3. Segment assets do not include the following items because these assets are managed on a group basis: Short-term investments 494,156,904,807 Receivables from disposal of investments 367,694,692,439 Short-term loan receivables 3,224,258,638,813 Interest income from bank deposits, deposits and loans to others 1,042,244,561,460 Dividend receivables 36,115,522,222 Provision for doubtful loan receivables (34,849,342,992) Provision for doubtful loan interest receivables (3,203,880,000) Prepaid interest expenses 45,141,308,506 Prepaid corporate income tax 498,649,303,769 Value-added tax deductible 972,722,775,130 Tax and other receivables from the State 111,457,535,408 Long-term loan receivables 58,989,915,115 Long-term investments 3,347,544,752,659 Deferred tax assets 328,604,798,935 Total 10,489,527,486, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

108 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS The following tables present revenue, profit and certain assets and liability information regarding the Group s business segment as at 31 Dec 2015 and for the year then ended: (Restated) Sale of inventory property Leasing investment properties and related services Hospitality, entertainment and other services Health care and related services Education and related services Retail services Others Adjustment and elimination Total Net revenue Net sales to external customers Net inter-segment sales (1) 21,179,148,427,947 2,655,125,765,258 2,847,874,120, ,605,761, ,231,160,146 4,305,993,748,453 1,774,987,328,583-34,047,966,313, ,111,255, ,069,508,360 15,633,050,742 46,894,633,522 2,208,951,791,935 7,471,388,184,883 (11,057,048,424,525) - Net total revenue 21,179,148,427,947 3,505,237,020,341 3,311,943,629, ,238,812, ,125,793,668 6,514,945,540,388 9,246,375,513,466 (11,057,048,424,525) 34,047,966,313,102 Results Depreciation and amortisation Share in profit/(loss) of associates Segment profit/ (loss) (2) 784,467,555, ,719,574, ,840,848, ,113,189,361 25,101,485, ,239,049,832 8,873,523,892-2,339,355,227,442 45,414,860,194-1,391,478, (7,578,584,538) ,227,754,200 6,207,559,342,399 1,368,494,771,966 (140,509,261,243) (90,643,874,579) 87,822,714,692 (1,610,549,072,792) 858,459,408,663 (3,828,533,063,705) 2,852,100,965,401 Assets Investments in associates 6,496,609,209,864-89,924,078, ,004,873, ,715,538,162,046 Capital expenditure 6,862,452,727,850 4,306,792,777,837 5,762,322,502,878 1,823,225,828, ,475,058,169 2,289,101,339,504 8,579,822,904-21,164,950,057,779 Total assets (3) 63,301,518,998,400 26,588,625,080,026 15,347,614,777,138 2,834,470,320, ,527,272,723 9,692,251,119,124 2,294,172,597,770 25,168,177,386, ,554,357,551,975 Total liabilities (4) 45,399,273,835,670 8,928,198,405,394 8,575,497,722, ,894,879, ,178,720,546 1,075,423,483,717 3,299,887,212,371 39,979,078,395, ,969,432,655, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

109 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 1. Net inter-segment sales are eliminated in consolidated financial statements. 2. Segment profit does not include: Finance income 1,931,520,080,322 Finance expenses (3,282,074,915,976) Other income 283,039,374,788 Other expenses (948,045,248,993) Long-term loan receivables 62,559,839,165 Long-term investments 9,597,557,595,727 Deferred tax assets 170,157,957,461 Total 25,168,177,386,285 Provision for doubtful loan receivables and loan interest receivables (32,697,507,652) Total (2,048,258,217,511) Eliminate: Inter-segment income (1,780,274,846,194) (3,828,533,063,705) 3. Segment assets do not include the following items because these assets are managed on a group basis: Short-term investments 11,142,979,590,895 Receivables from disposal of investments 93,448,998,244 Short-term loan receivables 1,763,123,912,802 Interest income from bank deposit, deposits and loans to others 890,625,661, Segment liabilities do not include the following items because these liabilities are managed on a group basis: Statutory obligations 1,678,401,228,369 Accrued interest expenses 830,480,551,017 Dividend payables 66,146,583,977 Short-term loans and debts 1,424,617,794,094 Long-term loans and debts 33,122,684,524,987 Convertible bonds 2,382,401,760,582 Deferred tax liabilities 474,345,952,476 Total 39,979,078,395,502 Dividend receivables 36,115,522,222 Provision for doubtful loan receivables (67,064,381,376) Provision for doubtful loan interest receivables (34,385,705,464) Prepaid interest expenses 23,446,929,828 Prepaid corporate income tax 207,807,092,577 Value-added tax deductible 660,027,543,114 The Group monitors operating results separately for each business segment for the purpose of making resources allocation decision and operating result assessment. The result of each segment will be assessed based on profit/ loss and determined consistently with profit/loss of the Group in the consolidated financial statements. However, financial activities of the Group (including finance income and finance expenses) are managed centrally and not allocated for each business segment. Transfer prices applied between business segments are set on an arm s length basis in a manner similar to transactions with third parties. Segment revenue, segment expenses and segment results include transfers between business segments. Those transfers are eliminated in the preparation of the consolidated financial statements. Tax and other receivables from the State 23,050,885,079 Dividend advance for preference shareholders 598,725,944, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

110 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 41. NOTES TO CASH FLOW MOVEMENT Current year Previous year Current year Previous year Significant non-cash transactions that will have impact on the cash flow statement in the future: Increasing owner s equity from conversion of bonds (Note 29.1) 2,202,521,952,538 1,083,198,350,930 Code 24. Collection from borrowers and proceeds from sale of debt instruments of other entities Collection of loans 12,257,780,740,761 2,669,609,550,761 Collection of term deposits 10,623,112,464,035 6,171,224,825,237 Stock dividend declared (Note 29.1) 2,133,799,410,000 3,763,639,260,000 Increasing owner s equity from bonus shares (Note 29.1) 4,844,731,620,000 - Offset obligations between operating activities and investing activities 263,140,083,992 - Offset obligations between financing activities and investing activities 130,937,638,643 - Code 02. Depreciation of fixed assets and investment properties and amortisation of intangible assets (including amortisation of goodwill) Depreciation and amortisation 2,281,457,070,129 1,522,991,052,048 Goodwill amortisation (Note 20) 1,074,350,144, ,364,175,395 Gains from bargain purchase - (123,824,134,645) Total 22,880,893,204,796 8,840,834,375,998 Code 25. Payments for investments in other entities Acquisition of subsidiaries (after deducting cash balance (1,691,523,942,666) (12,939,136,407,998) of subsidiaries at acquisition date) Acquisition of additional shares in existing subsidiaries - (523,718,706,200) Deposit to acquire subsidiaries (7,664,761,129,950) (3,621,128,422,500) Payments for investments in other entities (13,034,330,192,800) (3,077,484,315,345) Advance for business co-operation contracts (68,729,803,430) (23,954,604,785) Total (22,459,345,068,846) (20,185,422,456,828) Code 26. Proceeds from sales of investments in other entities Total 3,355,807,214,759 2,215,531,092,798 Code 05. Profits from investing activities Loss on disposal of fixed assets (Note 34) 213,114,146,077 36,847,457,860 Proceeds from disposal of subsidiaries, after deducting cash disposed Proceeds from disposals of equity investments in other entities 11,207,105,907,932 1,960,679,834,204 1,951,923,727,844 1,186,277,993,558 Gain on disposal of investments in other entities (4,050,617,815,969) (246,175,742,586) Share of profit of associates (Note ) (19,823,588,740) (39,227,754,200) Interest and dividend income (Note 30.3) (1,208,877,911,369) (1,645,899,541,473) Total (5,066,205,170,001) (1,894,455,580,399) Code 23. Loans to other entities and payments for purchase of debt instruments of other entities Disbursement of loans (3,128,785,916,909) (6,777,600,000,000) Term deposits (303,301,551,618) (12,103,288,911,471) Total (3,432,087,468,527) (18,880,888,911,471) Collection of deposits to acquire shares 801,817,800,000 - Proceeds from deposit for transfer of equity investment - 648,000,000,000 Proceeds from transferring right to develop a project 450,000,000,000 - Collection of deposit in real estate investment projects 896,119,007, ,302,896,515 Total 15,306,966,443,347 4,450,260,724,277 Code 31. Capital contribution and issuance of shares Capital contributions from non-controlling shareholders 1,310,346,390,000 7,544,319,623,168 Total 1,310,346,390,000 7,544,319,623,168 Code 36. Dividends, profit paid to equity holders Dividend, profits paid to non-controlling shareholders (1,339,903,941,515) (974,185,674,300) Total (1,339,903,941,515) (974,185,674,300) 216 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

111 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS 42. RESTATEMENT OF CORRESPONDING FIRGURES Restatements to certain corresponding figures on consolidated financial statements due to finalisations of provisional accounting applied in business combination transactions in previous year and other restatements are as follows: Code Items 31 December Restatement 31 December (Previously (Restated) presented) CONSOLIDATED BALANCE SHEET 131 Short-term trade (3) 2,438,800,372,894 93,448,998,244 2,532,249,371,138 receivables In February 2017, Ecology JSC, a subsidiary, received a deposit from a corporate counterparty with an amount of VND680 billion under a deposit agreement which is signed on 20 February 2017 to transfer entire shares of an existing associate of the Group. In February 2017, the Company established Phuc Dong House Development JSC with total charter capital of VND300 billion, in which VND294 billion is contributed by the Company, equivalent to 98% of the charter capital. The principal activities of this subsidiary is to provide printing service and other supporting services relating to transportation and short-stay accommodation services. This Company s head office is located in Dong Ngac ward, Bac Tu Liem district, Hanoi, Vietnam. In March 2017, Tan Lien Phat JSC, a subsidiary, received a deposit from a corporate counterparty with an amount of VND98 billion under a Frame Agreement which is signed on 6 March 2017 to transfer entire shares of an existing associate of the Group. There is no other matter or circumstance that has arisen since the balance sheet date that requires adjustment or disclosure in the consolidated financial statements of the Group. 136 Other short-term receivables (3) 3,165,754,530,947 (93,448,998,244) 3,072,305,532, Intangible fixed assets (1) 649,061,296,920 73,743,556, ,804,853, Cost (1) 789,293,394,723 75,942,351, ,235,746, Accumulated amortisation (1) (140,232,097,803) (2,198,795,181) (142,430,892,984) 269 Goodwill (1),(2) 8,628,752,138,992 (14,058,582,347) 8,614,693,556, Short-term trade payables (2),(4) 4,578,748,195,301 1,134,024,441,363 5,712,772,636,664 Ngo Nguyet Hang Preparer Nguyen Thi Thu Hien Chief Accoutant Duong Thi Mai Hoa Chief Executive Officer 319 Other short-term payables (4) 28,554,146,031,679 (1,082,421,151,363) 27,471,724,880, March Undistributed earnings (1) 1,601,415,502,116 (30,225,052,675) 1,571,190,449, Non-controlling interest (1),(2) 14,441,898,336,167 38,306,736,431 14,480,205,072,598 (1) Finalisation of provisional accounting for acquisition of Vinatextmart LLC as presented in Note 4.5. (2) Finalisation of provisional accounting for acquisition of An Phong JSC as presented in Note 4.5. (3) Reclassification of receivables from disposal of investments (VND93,448,998,244) from short-term receivables to trade receivables. (4) Reclassification of payables for purchasing shares (VND1,082,421,151,363) from other short-term payables to trade payables. 43. EVENTS AFTER THE BALANCE SHEET DATE Except for the events after the balance sheet date as presented in other notes of the consolidated financial statements, the Group also has following events after the balance sheet date: In December 2016, according to the Decree No.04/2016/ NQ-DHDCD-VINPEARL JSC, General Shareholders of Vinpearl JSC, a subsidiary, approved the mergers between the following companies: Vinpearl Da Nang LLC, Vinpearl Hoi An LLC, Vinpearl Nha Trang LLC, Vinpearl Bai Dai LLC, Vinpearl Quy Nhon JSC, Vinpearl Ha Long LLC, Vinpearl Can Tho LLC and FPI LLC. The mergers are carried on 3 January VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

112 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS APPENDIX 1 THE GROUP STRUCTURE AS AT 31 DECEMBER 2016 No. Full name Short name Voting right (%) Equity interest (%) Registered office s address Principal activities No. Full name Short name Voting right (%) Equity interest (%) Registered office s address Principal activities 1 Vincom Retail JSC Vincom Retail JSC Vinhomes Riverside (1) Investing, developing and trading real estate properties 11 Vincom 6 Construction Management LLC Vincom 6 Construction LLC Vinhomes Riverside (1) Architecture activities and technical consultancy 2 South Vincom Retail LLC 3 North Vincom Retail LLC 4 Suoi Hoa Urban Development and Investment JSC 5 An Phong Investment JSC 6 Times Trading Investment and Development One Member LLC 7 Vinhomes 1 Real Estate Trading LLC 8 Vinhomes 2 Real Estate Trading LLC 9 Vincom 1 Construction Management LLC 10 Vincom 3 Construction Management LLC South Vincom Retail LLC No.72, Le Thanh Ton street and No. 45A Ly Tu Trong street, Ben Nghe ward, district 1, Ho Chi Minh city Leasing real estate properties North Vincom No.72A, Nguyen Trai Leasing real estate Retail LLC street, Thuong Dinh properties ward, Thanh Xuan district, Hanoi Suoi Hoa JSC Km , Tran Hung Investing, developing Dao street, Suoi Hoa and trading real estate ward, Bac Ninh city, Bac properties Ninh province An Phong JSC No.3, road 3/2, No.11 Leasing real estate ward, district 10, Ho Chi properties Minh city Times Trading No.72, Le Thanh Ton Investing, developing LLC street and No.45A, Ly Tu and trading real estate Trong street, Ben Nghe properties ward, district 1, Ho Chi Minh city Vinhomes Vinhomes Riverside (1) Trading real estate LLC properties Vinhomes Vinhomes Riverside (1) Trading real estate LLC properties Vincom Vinhomes Riverside (1) Residential and civil Construction constructions LLC Architecture activities and technical consultancy Vincom Vinhomes Riverside (1) Residential and civil Construction constructions LLC Architecture activities and technical consultancy 12 Royal City Real Estate Development & Royal City JSC No.72A, Nguyen Trai street, Thuong Dinh ward, Thanh Xuan Investing, developing and trading real estate properties Investment JSC district, Hanoi 13 Hanoi Southern City Development JSC Hanoi Southern JSC No.458 Minh Khai street, Vinh Tuy ward, Hai Ba Trung district, Investing, developing and trading real estate properties Hanoi 14 Saidong Urban Development and Investment JSC Sai Dong JSC Vinhomes Riverside (1) Investing, developing and trading real estate properties 15 Xavinco Land JSC Xavinco JSC No.191, Ba Trieu street, Le Dai Hanh ward, Hai Ba Trung Investing, developing and trading real estate properties district, Hanoi 16 Tan Lien Phat Construction Investment Tan Lien Phat JSC No.72, Le Thanh Ton street, Ben Nghe ward, district 1, Ho Chi Minh Investing, developing and trading real estate properties Corporation JSC city 17 Xalivico LLC Xalivico LLC Nguyen Trai street, Thuong Dinh ward, Thanh Xuan district, Hanoi Investing, developing and trading real estate properties 18 Vietnam Exhibition VEFAC JSC No.148 Giang Vo Investing, developing Fair Center JSC street, Giang Vo ward, Ba Dinh district, Hanoi and trading real estate properties 19 Southern Star Urban Development Southern Star JSC No.72, Le Thanh Ton street, Ben Nghe ward, district 1, Ho Chi Minh Investing, developing and trading real estate properties and Trading Investment JSC city 20 Hoa Mai Trading Commercial Services LLC Hoa Mai LLC No.72, Le Thanh Ton street, Ben Nghe ward, district 1, Ho Chi Minh city Investing, developing and trading real estate properties 220 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

113 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS No. Full name Short name Voting right (%) Equity interest (%) Registered office s address Principal activities No. Full name Short name Voting right (%) Equity interest (%) Registered office s address Principal activities 21 Metri Sport and Entertainment Development JSC Metri JSC No.7 Thang Long avenue, MeTri ward, Nam Tu Liem district, Hanoi Investing, developing and trading real estate properties 32 Vietnam Investment and Consulting Investment JSC Vietnam Investment JSC No.191, Ba Trieu street, Le Dai Hanh ward, Hai Ba Trung district, Hanoi Investing, developing and trading real estate properties 22 Metropolis Hanoi LLC 23 Viet Nam Books JSC 24 Royal City Development & Investment LLC 25 Can Gio Tourist City Corporation 26 Hai Linh Energy JSC 27 Thanh Pho Ho Chi Minh Investment Service Trading JSC 28 Central Park Development LLC 29 Ecology Development and Investment JSC 30 Gia Lam Urban Development and Investment LLC 31 Phu Gia Property Trading LLC Metropolis Hanoi LLC HH land area, Pham Hung street, Nam Tu Lien district, Hanoi Savina JSC No.44, Trang Tien street, Hoan Kiem district, Hanoi Investing, developing and trading real estate properties Trading books and related items and lease offices Royal City LLC Vinhomes Riverside (1) Investing, developing Can Gio JSC No.72 Le Thanh Ton, Ben Nghe ward, District 1, Ho Chi Minh city Hai Linh JSC Nguyen Binh Khiem street, Dong Hai 2 ward, Hai An district, Hai Phong Vicentra JSC No.72 Le Thanh Ton, Central Park LLC Ben Nghe ward, District 1, Ho Chi Minh city Room 900, 9th floor, IPH Tower, 241 Xuan Thuy street, Dich Vong Hau ward, Cau Giay district, Hanoi Ecology JSC No.191, Ba Trieu street, Le Dai Hanh ward, Hai Ba Trung district, Hanoi and trading real estate properties Investing, developing and trading real estate properties Investing, developing and trading real estate properties Investing, developing and trading real estate properties Investing, developing and trading real estate properties Investing, developing and trading real estate properties Gia Lam LLC Vinhomes Riverside (1) Investing, developing Phu Gia LLC No.63 Hang Ga street, Hang Bo ward, Hoan Kiem district, Hanoi and trading real estate properties Investing, developing and trading real estate properties 33 Thang Long Real Estate Trading Investment JSC Thang Long Real Estate JSC No.13 Hai Ba Trung, Trang Tien ward, Hoan Kiem district, Hanoi 34 Vinpearl JSC Vinpearl JSC Hon Tre island, Vinh Nguyen ward, Nha Trang city, Khanh Hoa province 35 Vinpearl Trading Investment JSC 36 Vinpearl Managerment LLC 37 Vinpearl Nha Trang LLC 38 Vinpearl Da Nang One Member LLC 39 Vinpearl Hoi An One Member LLC 40 Vinpearl Quy Nhon JSC Vinpearl Trading Investment JSC Vinpearl Hotel Management LLC Vinpearl Nha Trang LLC Vinpearl Da Nang LLC Vinpearl Hoi An LLC Vinpearl Quy Nhon JSC Investing, developing and trading real estate properties Investing, developing and trading hospitality services Vinhomes Riverside (1) Investing, developing and trading real estate properties Vinhomes Riverside (1) Management Hon Tre island, Vinh Nguyen ward, Nha Trang city, Khanh Hoa province Truong Sa road, Hoa Hai ward, Ngu Hanh Son district, Da Nang city Phuoc Hai block, Cua Dai ward, Hoi An city, Quang Nam province Vinpearl Quy Nhon tourism complex, Nhon Hoi economic zone, Hai Giang village, Nhon Hai commune, Quy Nhon city, Binh Dinh province consultancy, real estate brokerage, auction, tourism support and promotion, providing shortstay services Investing, developing and trading hospitality services Investing, developing and trading hospitality services Investing, developing and trading hospitality services Ecotourism and other services 222 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

114 CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS VAS CONSOLIDATED FINANCIAL STATEMENTS No. Full name Short name Voting right (%) Equity interest (%) Registered office s address Principal activities No. Full name Short name Voting right (%) Equity interest (%) Registered office s address Principal activities 41 Future Property Invest LLC 42 Tay Tang Long Real Estate LLC 43 Tay Ho View Hotel and Tourism LLC 44 Vinpearl Bai Dai LLC 45 Cam Ranh Investment LLC 46 Hon Mot Tourism JSC 47 Hon Tre Investment and Development LLC 48 Vinpearl Ha Long LLC 49 Vinpearl Can Tho LLC FPI LLC Truong Sa road, Hoa Hai ward, Ngu Hanh Son district, Da Nang city Tay Tang Long No.72, Le Thanh Ton LLC street, Ben Nghe ward, district 1, Ho Chi Minh city Tay Ho View LLC No.58 Tay Ho street, Quang An ward, Tay Ho district, Hanoi Vinpearl Bai Dai Hon Tre island, Vinh LLC Nguyen ward, Nha Trang city, Khanh Hoa province Cam Ranh LLC No.16 Mac Dinh Chi street, Phuoc Tien ward, Nha Trang city, Khanh Hoa province Hon Mot JSC Hon Tre island, Vinh Nguyen ward, Nha Trang city, Khanh Hoa province Hon Tre LLC No.42/2 Dong Nai, Phuoc Hai ward, Nha Trang city, Khanh Hoa province Vinpearl Ha Long Reu Island, Bai Chay LLC ward, Ha Long city, Quang Ninh province Vinpearl Can Tho No.209, 30/4 street, LLC Xuan Khanh ward, Ninh Kieu district, Can Tho city 50 Vinpearlland JSC Vinpearlland JSC Hon Tre island, Vinh Nguyen ward, Nha Trang city, Khanh Hoa province 51 BFF Commercial BFF LLC No.72 Le Thanh Ton Trading street, Ben Nghe Investment LLC ward, district 1, Ho Chi Minh city Investing, developing and trading hospitality services Investing, developing and trading real estate properties Investing, developing and trading hospitality services Investing, developing and trading hospitality services Investing, developing and trading hospitality services Investing, developing and trading real estate properties Investing, developing and trading hospitality services Investing, developing and trading hospitality services Investing, developing and trading hospitality services Amusement park and theme park entertainment services Retails in department stores 52 Vincommerce General Commerce Services JSC 53 VinDS Trading and Services LLC 54 Vinmec International General Hospital JSC 55 Vinschool One Member LLC 56 VinAcademy Education and Training LLC 57 Vincom Security Service LLC 58 VinEco Agricultural Investment Development and Production LLC 59 VinEco Tam Dao Agricultural Investment Development and production LLC 60 Dongnai VinEco Agriculture LLC 61 VINECO SAGRI Agriculture LLC 62 Van Phat Tourist and Seafood JSC Vincommerce JSC No.72, Le Thanh Ton street, Ben Nghe ward, district 1, Ho Chi Minh city Retails in department stores VinDS LLC Vinhomes Riverside (1) Retails in department stores Vinmec JSC No.458, Minh Khai street, Vinh Tuy ward, Hai Ba Trung district, Hanoi Health care, medical and related services Vinschool LLC Vinhomes Riverside (1) Providing education services VinAcademy LLC Vincom Security LLC Vinhomes Riverside (1) Providing education services Vinhomes Riverside (1) Security services VinEco LLC Vinhomes Riverside (1) Producing and trading agricultural products VinEco Tam Dao LLC Dongnai VinEco LLC VINECO SAGRI LLC Co Quan commune, Gia Khanh town, Binh Xuyen district, Vinh Phuc province Km13, Highway 51, Long Khanh 3 hamlet, Tam Phuoc commune, Bien Hoa city, Dong Nai province No.38 Pham Van Coi, Pham Van Coi commune, Cu Chi district, Ho Chi Minh city Van Phat JSC Dung K'Si Hamlet, Da Chais commune, Lac Duong district, Lam Dong province Producing and trading agricultural products Producing and trading agricultural products Producing and trading agricultural products Wholesale of solid, liquid, gas and related products (1) Full registered office address: No.7, Bang Lang 1 street, Vinhomes Riverside Eco-urban area, Viet Hung ward, Long Bien district, Hanoi. 224 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

115 CONSOLIDATED FINANCIAL STATEMENTS SUMMARY IFRS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS SUMMARY IFRS CONSOLIDATED FINANCIAL STATEMENTS SUMMARY IFRS CONSOLIDATED FINANCIAL STATEMENTS Net (loss)/gain on financial asset/liability at fair value through profit or loss (Reclassified and restated) 2014 (Reclassified and restated) (214,925,043,589) (177,976,329,326) 78,799,591,340 Share of profit/(loss) of associates 19,823,588,740 28,192,276,513 (12,723,839,340) CONSOLIDATED STATEMENTS OF PROFIT OR LOSS for the years ended 31 December 2016, 31 December 2015 and 31 December 2014 Continuing operations (Reclassified) 2014 (Reclassified) Sale of inventory property 30,766,775,693,516 21,179,148,427,947 21,737,531,428,617 Leasing of investment properties and rendering of related services Rendering of hospitality, entertainment and related services Rendering of health care and related services 3,346,836,352,981 2,626,594,016,799 2,081,148,806,516 4,030,946,351,316 2,848,396,713,901 2,113,985,422,722 1,092,565,847, ,605,761, ,565,516,769 Rendering of education and related services 712,567,649, ,231,160, ,548,890,247 Sale of goods in supermarkets, convenience stores and retail outlets 9,247,730,309,731 4,306,023,191, ,051,494,099 Rendering of construction services 1,144,465,550,817 1,406,261,489,860 17,788,745,325 Other revenue 1,285,588,532, ,674,674, ,379,418,995 Revenue 51,627,476,288,093 34,397,935,437,014 27,640,999,723,290 Cost of sales (36,054,617,430,160) (22,326,180,022,944) (16,814,230,632,632) Profit before tax from continuing operations 4,871,725,546,400 4,228,422,694,172 7,127,824,750,272 Income tax expense (1,916,761,657,354) (1,669,476,302,603) (1,740,891,441,047) Profit for the year from continuing operations Discontinued operations Loss after tax for the year from discontinued operations 2,954,963,889,046 2,558,946,391,569 5,386,933,309,225 (567,204,791,430) - - Profit for the year 2,387,759,097,616 2,558,946,391,569 5,386,933,309,225 ributable to Equity holders of the parent 2,329,645,433,551 1,813,718,976,072 4,759,962,662,932 Non-controlling interests 58,113,664, ,227,415, ,970,646,293 Earnings per share Basic, profit for the year attributable to ordinary equity holders of the parent Diluted, profit for the year attributable to ordinary equity holders of the parent arnin s per share for con nuin opera ons Basic, profit from continuing operations attributable to equity holders of the parent 1, ,704 1, ,704 1, ,704 Gross profit 15,572,858,857,933 12,071,755,414,070 10,826,769,090,658 Valuation (loss)/gain from completed investment property (380,577,542,322) 647,858,601, ,311,520,016 Diluted, profit from continuing operations attributable to equity holders of the parent 1, ,704 Valuation (loss)/gain on investment property under construction (1,176,361,884,650) 67,991,183,846 1,174,571,478,490 Other operating income 6,949,603,069, ,779,891, ,932,246,890 Selling and distribution costs (6,773,266,845,920) (3,555,176,925,098) (953,173,773,051) Administrative expenses (5,206,498,010,053) (3,345,910,979,492) (1,622,752,319,824) Other operating expenses (724,010,423,040) (155,242,931,546) (46,622,671,289) Operating profit 8,261,747,221,750 6,148,054,255,187 10,024,035,571,890 Finance income 1,379,664,631,182 1,719,580,338,155 1,170,043,347,806 Finance costs (4,574,584,851,683) (3,489,427,846,357) (4,132,329,921,424) 226 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

116 CONSOLIDATED FINANCIAL STATEMENTS SUMMARY IFRS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS SUMMARY IFRS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME for the years ended 31 December 2016, 31 December 2015 and 31 December Profit for the year 2,387,759,097,616 2,558,946,391,569 5,386,933,309,225 Other comprehensive income Other comprehensive income to be reclassified to profit or loss in subse uent periods net of ta Net other comprehensive income/ (loss) to be reclassified to profit or loss in subsequent periods Other comprehensive income not to be reclassified to profit or loss in subse uent periods net of ta Revaluation of land and buildings 103,318,433, Net other comprehensive income/ (loss) not to be reclassified to profit or loss in subsequent periods 103,318,433, CONSOLIDATED STATEMENTS OF FINANCIAL POSITION as at 31 December 2016, 31 December 2015 and 31 December 2014 ASSETS NON-CURRENT ASSETS (Restated and reclassified) 2014 (Reclassified) Property and equipment 27,789,809,438,860 20,392,973,908,804 11,548,606,990,518 Intangible assets 5,718,018,067,317 4,975,805,312,243 1,651,620,986,606 Completed investment property 29,854,746,097,115 29,741,444,527,477 24,304,938,854,727 Investment property under construction 10,505,045,553,245 11,732,344,946,371 8,874,573,168,448 Construction in progress 28,906,126,172,936 6,747,626,194,623 3,766,514,368,335 Investment in associates 1,233,161,666,461 6,705,391,848, ,622,881,676 Other non-current assets 7,411,304,539,160 10,153,613,484,698 9,496,770,414,856 Deferred tax assets 420,306,975, ,578,899, ,441,863,345 Long-term prepayments 2,220,925,691,427 1,429,073,529, ,685,302,139 Total non-current assets 114,059,444,202,085 92,192,852,652,321 61,803,774,830,650 Other comprehensive income/ (loss) for the year, net of tax Total comprehensive income for the year, net of tax ributable to 103,318,433, ,491,077,531,186 2,558,946,391,569 5,386,933,309,225 CURRENT ASSETS Inventories 50,798,651,214,078 28,878,583,573,492 19,130,609,723,994 Trade receivables 3,036,520,802,575 2,401,490,621, ,510,006,047 Advances to suppliers 5,444,066,924,311 6,693,959,969,973 1,459,215,551,014 Equity holders of the parent 2,432,404,110,636 1,813,718,976,072 4,759,962,662,932 Non-controlling interests 58,673,420, ,227,415, ,970,646,293 Financial assets at fair value through profit or loss Loans to and receivables from related parties Short-term prepayments and other receivables 13,372,452, ,812,106,518 74,444,996,900 1,416,776,232, ,189,003, ,398,795,326 11,360,322,029,835 5,569,293,722,527 1,312,876,252,378 Short-term investments 2,305,585,500,097 12,582,810,895,507 6,077,802,744,475 Cash and cash equivalents 9,838,043,247,034 6,934,902,178,877 7,607,402,590,552 Biological assets 35,632,591, Total current assets 84,248,970,993,913 63,574,042,071,771 36,597,260,660,686 Assets classified as held for sale - 173,536,690, ,475,990,356 TOTAL ASSETS 198,308,415,195, ,940,431,414,744 98,574,511,481,692 EQUITY AND LIABILITIES EQUITY Issued capital 26,377,079,540,000 18,681,880,870,000 14,545,550,980,000 Share premium 5,052,821,661,370 7,632,863,374,561 6,184,733,954, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

117 CONSOLIDATED FINANCIAL STATEMENTS SUMMARY IFRS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS SUMMARY IFRS CONSOLIDATED FINANCIAL STATEMENTS (Restated and reclassified) 2014 (Reclassified) Treasury shares (3,609,183,275,263) (3,609,183,275,263) (3,707,383,275,263) Other reserves 135,603,792,015 27,845,114,930 22,845,114,930 Retained earnings 6,477,126,245,930 7,093,678,204,536 9,180,738,208,390 Equity attributable to equity holders of the parent 34,433,447,964,052 29,827,084,288,764 26,226,484,982,211 Non-controlling interests 18,444,953,974,792 13,904,340,626,137 6,286,346,261,395 Total equity 52,878,401,938,844 43,731,424,914,901 32,512,831,243,606 NON-CURRENT LIABILITIES Interest-bearing loans and borrowings 38,542,077,157,906 35,456,813,472,254 31,179,434,165,219 Long-term customers deposits 440,691,416, ,123,310, ,875,262,722 Long-term deferred revenue and advance from customers 2,455,729,647,545 6,753,495,367,392 6,162,446,924,111 Deferred tax liabilities 3,245,966,841,087 3,635,842,155,326 3,048,012,813,066 Other long-term liabilities 23,343,484,235 30,748,062,874 37,924,129,355 Total non-current liabilities 44,707,808,547,215 46,176,022,368,593 40,644,693,294,473 CURRENT LIABILITIES Short-term loans and borrowings 6,106,652,159,634 1,001,834,468,920 1,258,304,056,555 Financial liability at fair value through profit or loss - 682,093,849, ,358,563,520 Trade payables 6,608,322,434,013 4,564,191,853,380 1,628,746,222,883 Deposits and down payment from customers 64,423,559,300,028 45,315,758,470,535 14,714,504,156,437 Borrowing from and payables to related parties 445,945,493, ,842,709,199 17,228,800,466 Short-term deferred revenue 1,142,936,808,817 1,111,225,919, ,965,893,268 Accruals 11,485,100,942,412 7,574,691,612,531 3,896,115,868,010 Warranty provisions 127,414,358, ,697,938,748 99,627,506,502 Corporate income tax payable 1,247,767,471, ,164,447, ,949,795,404 Other current liabilities 9,134,505,741,631 4,521,479,620,391 2,064,176,770,898 Total current liabilities 100,722,204,709,939 66,032,980,890,648 25,416,977,633,943 Total liabilities 145,430,013,257, ,209,003,259,241 66,061,670,928,416 Liabilities directly associated with assets classified as held for sale - 3,240,602 9,309,670 TOTAL EQUITY AND LIABILITIES 198,308,415,195, ,940,431,414,744 98,574,511,481,692 CONSOLIDATED STATEMENTS OF CASH FLOWS for the years ended 31 December 2016, 31 December 2015 and 31 December 2014 OPERATING ACTIVITIES (Reclassified) 2014 (Reclassified) Profit before tax from continuing operations 4,871,725,546,400 4,228,422,694,172 7,127,824,750,272 Loss before tax from discontinued operations (567,204,791,430) - - Profit before tax 4,304,520,754,970 4,228,422,694,172 7,127,824,750,272 Adjustments to reconcile profit before tax to net cash flows Depreciation, amortisation, impairment of goodwill and gain from bargain purchase 2,186,661,769,013 1,284,726,855, ,387,558,854 Provision 141,826,931, ,695,896,224 71,609,018,302 Foreign exchange loss 109,400,742, ,407,293, ,192,392,574 Loss/(gain) on disposal of property and equipment 213,114,146,077 36,847,457,860 (3,104,218,385) Profit from disposal of investments in subsidiaries and other entities Loss/(gain) on financial assets and liabilities at fair value through profit or loss Changes in amortised cost of loans and receivables other than nominal interest Changes in amortised cost of payables other than nominal interest (5,974,543,319,602) (110,854,558,093) (137,667,866,676) 214,925,043, ,976,329,326 (78,799,591,340) (118,233,368,529) (43,638,516,661) (19,812,218,325) 355,891,640, ,645,485,107 1,013,418,866,496 Interest and dividend income (1,208,877,911,369) (1,645,899,541,473) (1,142,105,330,177) Interest expense 4,001,872,812,477 2,402,860,475,537 2,771,297,326,323 Share of (profit)/loss of associates (19,823,588,740) (28,192,276,513) 12,723,839,340 Valuation loss/(gain) on investment property and investment property under construction Working capital adjustments: 1,556,939,426,972 (715,849,785,748) (1,433,882,998,506) (Increase)/decrease in trade and other receivables 1,137,126,402,352 (4,529,029,763,870) (215,818,430,208) (Increase)/decrease in inventories (12,588,577,318,621) (7,425,054,156,235) 8,717,442,970,739 Increase/(decrease) in trade and other payables 18,730,320,335,978 40,678,171,090,009 (324,285,341,587) (Increase)/decrease in prepayments (2,671,638,431,605) (1,913,081,448,848) (848,564,488,639) Other cash (outflows)/inflows from operating activities - (20,815,480,785) (19,749,436,780) Income tax paid (2,294,234,119,932) (1,421,314,104,431) (1,910,568,513,664) Net cash flows from operating activities 8,076,671,947,852 32,169,023,944,355 14,267,538,288,613 INVESTING ACTIVITIES Proceeds from sale of property and equipment 66,786,752,382 38,823,385,497 23,987,643,862 Purchase of property and equipment, investment property and construction in progress (14,143,205,530,633) (14,514,819,118,700) (11,348,610,949,497) Payment for equity investment in other entities (13,034,330,192,800) (3,077,484,315,345) (1,254,685,000,000) Advance for business co-operation contracts (68,729,803,430) (3,621,128,422,500) (5,800,000,000,000) Collection of advance for business corporation contracts ,500,000, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

118 CONSOLIDATED FINANCIAL STATEMENTS SUMMARY IFRS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS RECONCILIATIONS BETWEEN VAS AND IFRS CONSOLIDATED INCOME STATEMENTS 2016 Deposits for investment in potential real estate projects Redemption of deposit for potential real estate projects Acquisition of new subsidiaries, net of cash of subsidiaries at acquisition date (Reclassified) 2014 (Reclassified) - (23,954,604,785) (700,000,000,000) ,000,000,000 (5,108,972,915,033) (12,939,136,407,998) (2,359,415,821,372) RECONCILIATIONS BETWEEN VAS AND IFRS CONSOLIDATED INCOME STATEMENTS 2016 Short-term deposits for interest gain (303,301,551,618) (12,103,288,911,471) (3,509,011,030,716) Collection of short-term deposit for interest gain 10,623,112,464,035 6,171,224,825,237 2,232,617,805,005 Disbursement of loans (3,128,785,916,909) (6,777,600,000,000) (885,106,000,000) Collection of loans 12,257,780,740,761 2,669,609,550,761 1,711,688,675,151 Proceeds from disposals of equity investments in subsidiaries, net of cash disposed Proceeds from disposals of equity investments in other entities Proceeds from deposit of counterparties for acquiring investments Redemption of deposit to counterparties for acquiring investments Proceeds from disposal of potential real estate project 14,632,880,654,716 1,697,969,504, ,000,000, ,250,446,244 1,298,600,688, ,000,000,000 1,697,936,807, ,000,000, ,312,091, ,302,896, ,200,000, ,000,000, Interest and dividend received 1,107,787,615,492 1,152,731,210,287 1,017,729,795,067 Net cash flows from/(used in) investing activities FINANCING ACTIVITIES 5,178,209,570,778 (38,725,149,719,740) (18,740,792,790,825) Proceeds from sale of treasury shares - - 1,411,009,772,856 Capital contribution from non-controlling interests Payment for acquisition of additional interest in existing subsidiaries 1,310,346,390,000 7,544,319,623,168 2,948,518,325,757 (7,664,761,129,950) (523,718,706,200) (3,025,235,910,441) Proceeds from partial disposals of subsidiaries 1,822,673,281, ,710,330, ,099,660,000 Proceeds from borrowings 20,814,923,248,321 20,664,801,635,454 17,264,986,730,202 Repayment of borrowings (21,563,433,421,833) (16,711,194,036,087) (8,682,400,989,547) Interest paid (3,736,500,947,012) (4,381,857,928,346) (3,191,276,794,957) No Items Amount I Profit after tax of VAS 3,513,067,892,506 II Adjustment for IFRS 1 Valuation loss on investment properties, investment properties under construction at fair value (1,556,939,426,972) 2 Net loss on financial liability at fair value through profit or loss (210,886,383,588) 3 Finance income/expenses arising from measurement of loans/customers' deposits/ar at amortised cost (11,139,355,613) 4 Adjustment for gain/loss from investment activities (338,166,879,246) 5 Recognition of convertible bond (199,485,767,658) 6 Recognition of convertible lending 97,189,809,805 7 Adjustment for profit shared from associates 5,542,799,066 8 Deferred tax expenses eferred ta e penses inco e incurred fro easure ent of in est ent proper es in est ent proper es under construc on at fair alue and adjustment for tax rate ther deferred ta inco e incurred this ear 9 Other adjustments d ust ents for prepa ents hich should be e penses under F eco ni on of di erences in deprecia on of in est ent proper es and a or sa on of prepaid land rental fees asbein easured at fair alue e ersal of ood ill a or sa on e penses ther e penses ad ust ent III Profit after tax of IFRS 2,387,759,097,616 Dividend paid to non-controlling interests (1,339,903,941,514) (974,185,674,300) (521,509,281,485) Dividends paid to equity holders of the parent - - (1,844,966,743,620) Net cash flows (used in)/ from financing activities Net increase/(decrease) in cash and cash equivalents (10,356,656,520,388) 5,880,875,243,689 4,546,224,768,765 2,898,224,998,242 (675,250,531,696) 72,970,266,553 Cash and cash equivalents at 1 January 6,934,902,178,877 7,607,402,590,552 7,534,048,703,295 Impact of exchange rate fluctuation 4,916,069,915 2,750,120, ,620,704 Cash and cash equivalents at 31 December 9,838,043,247,034 6,934,902,178,877 7,607,402,590, VINGROUP JOINT STOCK COMPANY ANNUAL REPORT 2016 VINGROUP JOINT STOCK COMPANY ANNUAL REPORT

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120 VINGROUP JOINT STOCK COMPANY No. 7 Bang Lang 1, Vinhomes Riverside Ecological Area, Viet Hung Ward, Long Bien District, Hanoi, Vietnam Tel: (84-4) Fax: (84-4) Website: