Vinaland : VNL Q1 2017 Update

Performance summary*	31 Mar 2017
NAV per share** (USD):	0.92
Change (Quarter-on-quarter)	3.6%
Total NAV** (USD 'm):	298.8
Share price (USD):	0.70
Market cap (USD 'm):	225.4
Premium/(discount)	-24.6%
* Figures in USD. Return percentages are for the period, not annualized. Please note that NAV and share price figures in this report takes into consideration the capital distribution in June 2016. ** NAV and NAV per share data are calculated on a quarterly basis

Manager's comment

As at 31 March 2017, VinaLand Limited (the "Company" or "VNL") posted an unaudited net asset value (NAV) of USD298.8million or USD0.92 per share, a 3.6% increase from the previous quarter's audited NAV per share of USD0.89. VNL's share price increased 1.09% to USD0.695 as at 31 March 2017, from the closing price of USD0.688 reported on 31 December 2016. As a result, the Company's share price to NAV discount is currently 24.6%. VNL repurchased and cancelled 33.63 million ordinary shares in the first quarter of 2017, bringing

the total of cancelled ordinary shares since October 2011 to 175.66 million. Since the commencement of the share buyback program, VNL has cancelled 35.13% of the fund's total issued shares prior to the program.

On 13 January 2017, the Manager completed its obligation to purchase shares, buying a total of 23,490,126 shares which equates to approximately 7.2% of the Company's total voting rights. On 29 March 2017, VNL announced its interim results for the six months ended 31 December 2016, which are available on the Company's website.

Fund update

Portfolio information	31 Mar 2017
Current assets	16
Divestments	30 full and residential unit sales
Debt	Project level (Bank): 18.9% of NAV
Fund level: Nil
Cash after future commitments (USD 'm)	8.8
Shares outstanding	324,305,511

VNL project revaluations were undertaken for the period ending 31 March 2017, with five projects appraised by international valuation consultants. Two of these projects are located in Ho Chi Minh City, one in Hanoi and two projects in the south and central regions of Vietnam. As a result, the project valuation movement was upward due to increasing investor interest and further continued improvement in the market, and this confidence flowed through to real estate land values.

On 25 January 2017, VNL announced that it divested its stake in Project BD. Acquired by VNL in 2007, the project is a 94.7-hectare parcel of land located in Binh Duong province which has approval for a future residential-township development. VNL disposed of its entire stake at a total valuation 17.4% below the unaudited NAV at the time of VNL's extraordinary general meeting (EGM) in November 2016, including adjustments for additional investments over this period. This transaction resulted in net proceeds of USD10.9 million to VNL which were received in full.

Subsequent to the close of the first quarter, on 10 April 2017 VNL announced that it divested its entire stake in the Dai Phuoc Lotus project, located in Dong Nai province, Vietnam. The project consists of a total site area of 198.5 hectares and was acquired by VNL in 2007. This transaction resulted in net proceeds of approximately USD48.8 million to VNL which were received in full. The total valuation was 11.2% above the

31 December 2016 audited NAV and 21.8% above the unaudited NAV at the time of VNL's EGM in November 2016, including adjustments for additional investments up to the date of exit for both figures. The proceeds received from this exit in conjunction with those collected from past and future disposals will continue to cover VNL's commitments including operating costs and distributions to shareholders.

Cumulative change (% change)
3mth	1yr	3yr	5yr
NAV per share	3.6	7.6	12.0	-12.4
Share price	1.1	26.6	49.8	35.2

Market conditions and deal activity continued to improve during the first three months of 2017, driven by continued momentum in the local real estate market and underpinned by strong foreign interest. There are

18.00

VNL shares repurchased (millions)

16.00

14.00

Key investments
Project	Location	Type	% portfolio NAV
Dai Phuoc Lotus	South	Township	15.3%
Pavilion Square	South	Mixed Use	14.6%
VinaSquare	South	Mixed Use	14.3%
Times Square Hanoi	North	Mixed Use	11.9%
Aqua City	South	Township	8.3%
Capital Square	Central	Mixed Use	7.7%
Trinity Garden	South	Residential	7.6%
Green Park Estate	South	Mixed Use	6.2%
Phu Hoi City	South	Residential	4.9%
Total	90.8%

12.00

10.00

8.00

6.00

4.00

2.00

0.00

NAV, share price performance and buy back activity

Shares bought back VNL NAVps VNL share price

VNL portfolio by sector (NAV %) VNL NAV by sector (USDm)

1.00

Share price and NAVps (USD)

0.90

0.80

0.70

0.60

0.50

0.40

Residential Mixed Use Township Hospitality

27.4%

2.7%

55.6%

14.3%

200.0

150.0

100.0

50.0

-

Hospitality Township Mixed Use Residential

Total Investment NAV Bank Debt

however some early indications that over-supply in some areas of the condominium sector are beginning to impact sales rates in the secondary market, an imbalance that we believe will increase gradually as the year continues. VNL currently has no direct exposure to development of condominium projects.

The Manager continues to pursue several disposal opportunities, and is negotiating terms with both foreign and local investors with the objective of securing project disposals during Q2 and Q3 2017.

Macroeconomic update

The Vietnam's GDP grew at a 5.1% rate in first quarter of 2017, a modest deceleration from the economy's 5.5% growth rate in the first quarter of last year. The slowdown was due to a 14% yoy decrease in oil production volume, to a reported 38% decline in Samsung's Vietnam-based production (as the company retooled its production line for the launch of the new S8 model), and a slowdown in domestic consumption. While the slight decline in Vietnam's Q1 GDP growth rate may appear to be cause for concern, we expect the economy to resume its higher growth trajectory in Q2 given positive manufacturing, trade, and foreign investment leading indicators.

Manufacturing: The Nikkei Purchasing Manager's Index (PMI) for Vietnam reached 54.6 in March, which was a 22-month high, and up from 54.2 in February. The "forward looking" components of the PMI, such as employment and new orders were particularly encouraging.

Trade: Vietnam reported an estimated trade deficit of USD1.9 billion in Q1, with imports growing 22% yoy, outpacing a 13% yoy increase in exports. However, import growth was driven by a 28% yoy increase in machinery and equipment imports, which is another positive leading indicator that firms are gearing up for increased manufacturing production and output later in the year.

6.0

5.0

4.0

3.0

2.0

1.0

0.0

60

55

50

45

Quarterly GDP growth (%)

MarJun SepDecMarJun SepDecMarJun SepDecMarJun SepDecMarJun SepDecMarJun SepDecMarJun SepDecMar 2010 2011 2012 2013 2014 2015 2016 2017

Purchasing Managers' Index

Expansion

Contraction

Foreign Investment: The registration of new foreign direct investment (FDI) surged 77.6% yoy in Q1 to USD7.7 billion, while the disbursement of actual FDI was flat. The surge in new FDI registration is yet another leading indicator that augers well for future manufacturing and construction activity in Vietnam, while the benign performance of the country's FDI inflows, which is a lagging indicator, shows that investors remain confident about Vietnam's prospects and about the country's viability as a manufacturing center, despite some well publicized concerns about possible impediments to global free trade going forward.

Dec-12

Mar-13

Jun-13

Sep-13

Dec-13

Mar-14

Jun-14

Sep-14

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Mar-16

Jun-16

Sep-16

Dec-16

Mar-17

40

Cumulative registered and disbursed FDI (2017, USDbn)

25

Domestic consumption: Domestic consumption growth in real terms slowed from 7.5% in 1Q16 to 6.2% in 1Q17. However, the country's consumption in the first quarter of the year is typically impacted by a variety of seasonal effects including the Tet New Year holiday, the impacts of which are difficult to disentangle. For

that reason we will continue to monitor domestic consumption trends in Q2 to determine if the slowdown in domestic consumption is a substantive issue or a transitory, seasonal phenomenon.

Inflation: The Consumer Price Index increased 5% year-over-year, as of the end of Q1. Core inflation came in a 1.7% yoy, indicating that the steep increase in oil prices over the last year contributed significantly to inflation, government administered price hikes also made a major contribution to the country's inflation rate; medical fees rose 7.5% mom in March, so medical costs rose 36% yoy as of the end of Q1.

Vietnam Dong: The Vietnamese dong (VND) remained stable despite the Fed rate hike, and despite the uptick in inflation over the last two quarters. Interbank rates reached 22,720 VND/USD in March.

20

15

10

5

0

1,500

1,000

500

- (500)

(1,000)

(1,500)

(2,000)

Feb-15 Mar-15 Apr-15

May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16

May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17

(2,500)

Disbursed (YTD) Registered (YTD)

Monthly trade balance (USDm)

Macroeconomic indicators
2016	Mar-17	2017 YTD	YTD Y-O-Y
GDP growth1	6.2%	5.1%
Inflation (%)	0.5%	0.2%	4.7%
FDI commitments (USDbn)	24.4	4.3	7.7	77.6%
FDI disbursements (USDbn)	15.8	2.1	3.6	3.4%
Imports (USDbn)	174.1	18.4	46.6	24.9%
Exports (USDbn)	176.6	17.3	44.6	15.1%
Trade surplus/(deficit) (USDbn)	2.5	(1.1)	(1.9)
Exchange rate (USD/VND)2	22,720	22,720	0.0%
Sources: GSO, Vietnam Customs, SBV, VCB |1. Annualized rate, updated quarterly |2.(-) Denotes a devaluation in the currency, Vietcombank ask rate

Year-on-year and month-on-month inflation (%)

YoY CPI

MoM CPI

8

7

6

5

4

3

2

1

Jan Feb Mar

-

2013 2014 2015 2016 2017

YoY CPI MoM CPI

1.2

1.0

0.8

0.6

0.4

0.2

0.0

(0.2)

(0.4)

(0.6)

Source: GSO, Vietnam Customs, Bloomberg

Current strategy

Following the outcome of the 2016 AGM and EGM, the Investment Manager, VinaCapital will continue with project disposals enabling further distributions

to shareholders. The combination of improving market conditions in conjunction with the new VNL strategy enables the Investment Manager to focus on the ongoing disposal program so further distributions can be made to shareholders over the 2+ years.

In line with the approved strategy, the Investment Manager will continue with the development of residential projects including construction of infrastructure currently under development to maximize value of these projects while disposal opportunities are pursued. The continuation of the stable market conditions during the first three months of 2017 are aligned with VNL objectives to realize value and make distributions during 2017. VNL has made steady progress with negotiating disposals during the first Quarter of 2017.

Disposals and Distributions post November 2015 EGM

(USDm)

120

NAV at exit Net proceeds to VNL Cumulative distribution value post November 2015 EGM

USD100.6m

100

80

60

40

20

0

Project Marina	Project C21	Project Golf	HBT Court	Project Pham Hung	Resort Project	Project Ceana	Project BD
Apr-16	May-16	May-16	May-16	Jun-16	Aug-16	Nov -16	Jan -17	Mar-17

Nov-15

Post EGM (November 2015)

Full Divestments	Project Marina	Project C21	Project Golf	HBT Court	Project Pham Hung	Resort Project	Project Ceana	Project BD
Exit Date	Apr-16	May-16	May-16	May-16	June-16	Aug-16	Nov-16	Jan-17
NAV at exit (USDm)1	1.3	75.2	37.5	0.6	16.3	7.0	6.7	13.2
Net proceeds to VNL (USDm)2	1.3	75.4	37.5	0.5	16.2	7.0	7.6	10.9
Net proceeds v.s NAV (%)	0.4%	0.2%	0.0%	-11.0%	-0.2%	-1.0%	12.9%	-17.4%
NAV at EGM (USDm)3	2.5	63.5	40.1	1.1	9.6	21.0	13.2	15.0
Net proceeds v.s NAV at EGM (Adjusted) (%)	-49.2%	18.8%	-6.4%	-52.1%	69.8%	-66.8%	-42.5%	-27.2%

1. All "NAV at exit" figures are based on most recent audited numbers prior to the exit date.

2. Net proceeds from exit include all transfers of money between the fund and project companies, including dividends, shareholder loans, and capital contributions.

3. For comparison purposes, the NAV has been adjusted for subsequent investments and returns. For all disposals up to Project Ceana, the 2012 EGM NAV has been reported while all disposals from Project BD use the 2016 EGM

NAV.

Investment in real estate and credit growth have remained steady and the expansion of real estate demand seen through the first three months of this year is expected to continue during the next quarters. The landed property market continued to demonstrate stability during the first three months of 2017 with new project launches and high absorption rates. Although developers continue to maintain the sale progress by changes in sales strategies, the condominium market remains over supplied and this imbalance will impact on prices and inventory movement in Q2 2017 and indeed for the remainder of 2017. Increasing supply from new construction and completed buildings through to the end of the year is expected to soften the rental rents of office and retail sectors. Vietnam's real estate market in Q1 2017

During the first quarter of 2017, the real estate market remained sound with strong foreign in- flows. According to the Ministry of Planning and Investment, Vietnam drew more than USD2.9 billion in newly-registered foreign direct investment (FDI) projects in the first quarter of 2017, up

approximately 6.5% against the same period last year. South Korea continued to be Vietnam's leading foreign investor with an invested capital of USD931.3 million, accounting for 32% of total newly- registered FDI. Real estate ranked second in attracting FDI during the quarter, with newly registered capital reaching USD310.9 million across a total of 13 projects. Though banks reached their credit limits (per revised Circular 36) on 01 January 2017, investment in real estate and credit growth remained steady during the quarter and the expansion of real estate demand seen through the first three months of this year is expected to continue into the next quarter.

On 16 March 2017, the United States Federal Reserve (Fed) announced the first of its benchmark interest in 2017 by a 0.25 percentage point to nearly 1.0% from 0.75%. The State Bank of Vietnam (SBV), however, has established its credibility after weathering the FX disturbance during the first three months of the year. As of the end of March 2017, USD/VND exchange rates remained stable at about 22,790 per dollar.

Landed property sector

The landed property market continued to demonstrate stability during the first three months of 2017 with new project launches and high absorption rates. According to CBRE Vietnam, an additional 500 units in Ho Chi Minh City and an additional 1,238 units in Hanoi were launched in the first quarter of 2017. The Hanoi landed property market witnessed improvement with new launches and impressive sale progress during the first three months of 2017. Average selling prices both in Ho Chi Minh City and Hanoi increased by between 3% to 10% year-on-year. Notably, shophouses are the most sought after unit because its ability for both accommodation and retail/trading purposes. In addition, given the extensive infrastructure developments in the Da Nang and Nha Trang, these markets have experienced improving sales volume over Q1 2017 and this trend is expected to continue.

Condominium sector

The condominium sector has also seen new launches in close proximity of future infrastructure development around Ho Chi Minh City and Hanoi. According to CBRE Vietnam, an additional 5,083 units in Ho Chi Minh City and 9,398 units in Hanoi were launched in Q1 2017, a decrease of 49% year-on-year in Ho Chi Minh City, but a rise of 36% year-on-year in Hanoi. Average sales reduced by 30% year-on-year in Ho Chi Minh City while sales in Hanoi increased by 50% year-on-year due to an increased number of attractive residential models and numerous promotional campaigns. The mid- end and affordable segments accounted for 65% of total transactions both in Ho Chi Minh City and Hanoi. Average selling prices increased approximately 13% year-on-year because several projects in locations with improving infrastructure, quality landscaping and available amenities have increased selling prices. Although developers continue to maintain sales by changes in sales strategies such

as diversifying products, protracting repayment plans and providing additional amenities, the condominium market remains oversupplied in certain areas and this imbalance will impact on prices and inventory movement in the remainder of 2017.

Office sector

Office supply, both in Ho Chi Minh City and Hanoi, remained stable during Q1 2017 with increased occupancy rates and rentals. The average asking rents in the office sector improved by between 3% to 10% year-on-year. In Q1 2017, fixed supply in Grade A buildings allowed landlords to increase rental prices and improve occupancy rates. Growing demand for high quality office buildings is driving new supply. As a result, it is expected that approximately 356,000sqm of new office space will be available both in Hanoi and Ho Chi Minh City from 2017 to 2018.

Retail sector

During the quarter, only 17,500sqm was added to Ho Chi Minh City retail market while Hanoi saw no added supply of retail space. Convenience stores such as Minigood, Miniso and Mumuso continue

to expand their operations and are attracting young consumers who prefer foreign products at reasonable prices. The lack of new supply during Q1 2017 currently holds the retail market in balance. However, increasing supply from new construction and completed buildings through to the end of the year is expected to soften the rental rents.