Growth

The State Bank of Vietnam reported that as the end of March this year Vietnam's bad debts ratio amounted US $9.6 billion U.S = 8.6% total outstanding credit.

Fitch Ratings and other independent economic survey organizations estimate = 14% or 13.3 billion U.S. dollars.

This is over 150 percent of the total capital of the entire Vietnamese banking sector of 230 trillion VND or over 11 trillion U.S. dollars.

Source: news.xinhuanet.com/english/indepth/2012-07/.../c_131728627.htm

Vietnam’s 100 largest state enterprises are indebted about US $50 billion, or more than one third of GDP. Source: Reuters

Investor sentiment

World economy is still in the dumps and looking for growth opportunities
57% of US companies wish to expand their business in SEA
75% note Vietnam as their #1 destination for expansion in SEA

Source: AMCHAM Singapore Survey -June / July  - Base = 356

q As China begins to feel the pressure of a slide in exports and inflation….

Vietnam as part of the China Plus 1 policy will make Vietnam more attractive for foreign investment

q As inflation reduces and the banking system is straightened out, Vietnam will receive more and new FDI

q 1st time since 2008 – there are more positives than negatives on

horizon