Rates of Inflation & Currency Exchange

Current Annual Rate of Inflation : Year 2007: 5.9%[Chart VET January 2008] By way of
historical reference, in 1986 and the start of the "Doi Moi" or "renovation" program, inflation stood at 774.7%. By 1995 that rate
had dropped to 12.7%. See prior reports or above for a more complete, historical picture.

Current and Recent monthly rates of inflation:

September November December

July 2007 August 2007 October 2007
2007 2007 2007
6.2 6.8 7.3 8.2 9.4 12.6
February
January 2007 March 2007 April 2007 May 2007 June 2007
2007
1.0 2.1 3.2 3.5 4.3 5.7

July 2006 August 2006 September 2006 October 2006 November 2006 December 2006

4.4 4.8 5.1 5.4 6.0 6.6

January 2006 February 2006 March 2006 April 2006 May 2006 June 2006

1.2 2.1 2.8 3.0 3.6 4.0

July 2005 August 2005 September 2005 October 2005 November 2005 December 2005

5.6 6.0 6.8 7.2 7.6 8.4

January 2005 February 2005 March 2005 April 2005 May 2005 June 2005

1.1 3.1 3.7 4.3 4.8 5.2

July 2004 August 2004 September 2004 October 2004 November 2004 December 2004

7.7 8.3 8.6 8.6 8.8 9.5

January 2004 February 2004 March 2004 April 2004 May 2004 June 2004

1.1 4.1 4.9 5.4 6.3 7.2

July 2003 August 2003 September 2003 October 2003 November 2003 December 2003

1.8 1.7 1.8 1.6 2.2 3.0

January 2003 February 2003 March 2003 April 2003 May 2003 June 2003

0.9 3.3 2.5 2.5 2.4 2.1

July 2002 August 2002 September 2002 October 2002 November 2002 December 2002

2.8 2.9 3.1 3.4 3.7 4.0

January 2002 February 2002 March 2002 April 2002 May 2002 June 2002

1.1 3.3 2.5 2.5 2.8 2.9

July 2001 August 2001 September 2001 October 2001 November 2001 December 2001

- 0.9 - 0.9 - 0.4 - 0.4 - 0.2 0.8

January 2001 February 2001 March 2001 April 2001 May 2001 June 2001
0.3 0.4 0.0 - 0.5 - 0.7 - 0.7
 July 2000 August 2000 September 2000 October 2000 November 2000 December 2000

-1.6 -1.5 -1.7 -1.6 - 0.7 - 0.6

Historical annual rates of inflation:

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
14.4 12.7 4.5 3.8 9.2 0.7 - 0.5 - 0.3 2.9 3.0 2.7 5.3 4.1

Current Rate of Exchange (Domestic buying VND using cash in new bills
denominated in $100 or $50 only) US dollar to Vietnam dong 1 : 16,109 (The State Bank of
VietNam, 8January08 ) prior report 1:16,122. T he black market rate: buying 100 and 50 US
dollar notes for approximately 250 VND/US$ more, and selling dollars for 350 VND/US$
more, than the quoted official rate.

Interbank Rate Tuesday, January08, 2008 http://www.oanda.com/convert/classic

1 US Dollar = 16,264 Vietnamese Dong

[The introduction in year 2001 of the VND 100,000 "brown" (now green) note worth US$ 6.04 at
the current exchange rate, helps to ease, if not speed, the rate of spending. The new VND
500,000 "brown" note is now worth about US$ 31.15. When we first arrived in January 1994 the
standard bank note was the VND 5,000 note while the largest bank note was the then very new
VND 20,000 "green" bill, then worth US$1.90 and now convertible at $1.19 at the prevailing
Interbank rate].

Outstanding External Debt in US$ millions (ADB): 1997 - 11,612; 1998 -

10.8; 1999 - 11.1;
2000 - 13.9; 2001 - 14.4; 2002 1 - 12,500

1. Gross external debt is put at US$14.0 billion or 38% of gross domestic product (GDP),
reportedly mainly made up of low-interest ODA lending. Net external debt is put at 18.5% of
currency external receipt. (Source Fitch Report via STW)

Index

Balance of Trade US$ billions (VET January 2008 and other public reports)
Note : All publications in Vietnam are subject to strict State censorship and State
propagandizing. The numbers reported here are not always consistent with those from other
services. When we are aware of substantial discrepancies, we mention them. We also pass on
any explanation that is offered, which is very rare .

Because changes are so frequent and unsubstantiated, we encourage readers to refer to prior
reports on line for such historic details as they may need. This is the most current and best data
available from public sources, even though the accuracy of all these numbers is anyone's guess.

2000
2007 2006 2005 2004 2003 2002 2001 1 1999 1998 1997 1996 1995

Exports 13.06/
48.39 38.90 16.87 24.56 12.61 16.23 16.74 11.9 9.4 8.9 7.1 5.2
14.31
Imports 14.63/
60.83 44.35 18.95 29.36 14.79 18.26 17.70 12.01 11.4 11.2 11.1 7.5
15.2
Balance - - -
- 4.80 -2. 18 - 2.03 - 1.0 - 1.6 - 0.2 - 2.0 - 2.3 - 4.0 - 2.3
12.4 5.45 2.08

1 . Year 2000 [VET January 2001]. Numbers in blue are from Vietnam's GSO

Index

Growth Rate of Merchandise Exports as a percent of change from the prior year
(ADB)

2005 2004 2003 2002 2001 2000 1999 1998 1997

na na na na na 6.9 4.5 3.9 22.2

Change in Consumer Prices expressed as a percent of change from the prior year
(Dec 04 VET)

2005 (f) 2004 2003 2002 2001 2000 1999 1998 1997
6.0 9.0 4.0 3.8 - 0.4 7.0 4.0 9.2 3.6

GDP Growth (%) Government Statistics Bureau/ ADB/ IMF/ UPI / BKK Post

2010 2007
2006 2005 2004 2003 2002 20011 2000 1999 1998 1997 1996 1995
(f) (f)
double 7.1/ 6.75/ 5.8 / 8.8 /
year 8.5 8.2 7.5 7.7 7.25 4.4 4.8 9.34 9.54
2000 7.0/4.75 5.5 4.0 8.2

1. The State reduced this figure from 7.5 to 7.1 in October 2001, which the World Bank supports.

Index

GDP (converted to US$) US$ 1 = VND 15,000 (constant) Reported in billion dollars

20051 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995
53.1 35.3 33.7 32.89 32.9 28.19 26.41 26.0 24.27 21.65 14.86

1. US Department of State

Index

GDP per capita household consumption (converted to US$) VND 1 =

US$ 16,0001 (constant)
 2006
2005 5 20044 2002 2001 3 2000 1999 1998 1997 1996 1995
(f)6
375-
720 638 564 394 363 2 339 311 295 282 200
1,875

1 as of 1 September 2005. We caution readers that these numbers were previously converted at
1 US$ to 14,000 VND and at 15,000 VND as constants. Thus when looking at the actual GDP per
capita for 1995 at the time, please first convert to VND at the current rate and then use the rate
of conversion then current (11,500 to 1) for US$ 278.26

2 This number is derived by taking the most recently announced GDP for year 2000 of US$30.6
billion and dividing by the estimated total population of 79 million. The reports of Vietnam's per
capita Gross Domestic Product (GDP) are all over the mark. VBJ, an early source of our
numbers (in blue), is no longer published. While VET has been reporting that the GDP per capita
was at and above US$ 301 since 1996, Vietnam Investment Review in mid-year 20000 - a
publication of the MPI - reports:

[The average income [broke] $250 a year for the first time.... Monthly income per person
reached VND 295,000 ($21.07) in 1999, a 30.1 per cent increase on 1996 and equivalent to an
annual $252.86. (455 VIR 4, 3-9 July 2000).

VIR cites figures from the General Statistics Department of Vietnam. The actual number is as
elusive as are most official numbers in Vietnam and will remain so until Vietnam's reporting
becomes transparent. However, as the GDP numbers are substantially under those of the "news"
media, we suspect the GDP numbers are the more accurate.

3 . It is claimed (VIR, Jan 2002 p10) that this reported range is determined under the Parity
Purchase Power method (PPM).

• No explanation is offered if this is the same as the United Nation's Purchase Power Parity
(PPP) system, designed "to show the different levels of spending power on a country by
country basis. A market basket of such items as average incomes, taxes, interest rates,
insurance, utilities, gasoline, milk, newspapers and other typical expenses are compared
and used to devise the PPP. The standard is based on the USA=100," or who the PPP is
now made into a range and used by the State to report GDP.
• The CIA defines GDP as the value of all final goods and services produced within a
nation in a given year and computed on the basis of purchasing power parity (PPP)
rather than value as measured on the basis of the rate of exchange.
• The World Bank reports that in 2001 per capita household consumption (in constant 1995
US dollars) was $256. Household consumption includes expenditures of individuals,
households, and nongovernmental organizations on goods and services, excluding
purchases of dwellings.

For a more complete read on the PPP system developed by the United Nations, please write to
VVG to receive a copy by E-mail.

The more widely accepted sum for year 2001 is $399.

4. Source: Ministry of Finance, as reported in the 726VIR4 September 12-18, 2005 that also
reports Per Capita Income for the same period at US$ 384

5. US Department of State
6. BKK Post 18 Oct 06, quoting PM Dung.

Index

Foreign Capital Investment 1

Caveat : All publications in Vietnam are subject to strict State censorship and State
propagandizing. The numbers reported here change dramatically from time-to-time. The
numbers of projects seem to decrease or increase without regard to the value of the projects or
the steel in the ground. There is rarely an explanation offered.

Because the changes are so frequent and unsubstantiated, we encourage readers to refer to
prior reports on line or above for such historic details as they may need. This is the most current
and best data available from public sources, even though the accuracy of all these numbers is
anyone's guess.

These numbers do not include ODA disbursements that in 2004 has been variably reported but in
the range of $2.8 billion. This has been increased to $3.4 billion for 2005. Despite its fast-growing
economy, averaging seven per cent a year, the country still relies on foreign aid to build schools,
clinics, road and power grids. $25 billion was earlier pledged from 1999 to 2003.

As of December 22, 2007(January2008 VET ) 8.590 [vs. 8.411 last month] with Total Investment
T

Capital US$ 83.104 billion [vs. $78.325 billion last month] and Implemented Capital of US$
29.236 billion [vs. $29.323 last month].3

Where the numbers increase or decrease month-on-month, we've added a corresponding +/-
respectively. Where no change is reported, no symbol follows the number. We have no
explanations for the changes but invite readers to review the previous month's Economic
Indicators for further research. Determining accuracy in these reported numbers is akin to reading
tea leaves as the system lacks transparency.

Top Twenty Foreign Direct Investor Nations :

Number Total Number Implemen

Rank Implemented Total Capital
2 Nation of Capital Rank 2 Nation of Capital
Capital (US$b) (US$b)
Projects (US$b) Projects (US$b)
Rep. of
1 1,837 + 13.533+ 2.738+ 11 Cayman Is. 29+ 1.839- 0.595-
Korea
2 Singapore 543+ 10.739+ 3.804+ 12 China 536+ 1.699+ 0 .256-
3 Taiwan 1,788+ 10.528+ 3.079+ 13 Thailand 168+ 1.667+ 0.832+
4 Japan 928+ 9.038+ 4.988+ 14 U.K. 99 1.443- 0.648+
5 Br.Vir.Islands 336+ 7.708+ 1.376+ 15 Samoa 54+ 1.267+ 0.028+
6 Hong Kong 452+ 5.824+ 2.161+ 16 Australia 167 0.869+ 0.397+
7 Malaysia 246+ 2.821+ 1.084+ 17 Luxembourg 15 0.804- 0.012+
8 United States 375+ 2.796+ 0.752+ 18 Switzerland 47 0.749+ 0.530+
9 Netherlands 84+ 2.593+ 2.027+ 19 Germany 98 0.546 0.161+
10 France 195+ 2.419- 1.137 20 Br. W. Indies 6 0.511+ 0.117
Notes:

1. As reported earlier (here in March 2002 and April 2002, and in Vietnam Vignettes for May 2002) we see some fiddling with the
reported numbers in the listings for Total Implemented Capital. While most if not all financial reports from the State are still
considered by leading foreign economists as overstated, undisguised errors highlight huge discrepancies and the questionable
nature of these financial reports from Vietnam. In March 2003 we saw a reported loss in total FDI and yet the numbers for that
month indicated an increase. The third Q 2002 loss of Russian investments amounting to $600 million in the Dung Quat project at
that time seem to account for some of this down turn. The total capital numbers were down from 1.507 billion to 0.214 billion while
implemented capital was down from 0.671 billion to 0.140 billion. January 2003 numbers were not published, which may have
something to do with then current picture. Clearly the nation still needs transparency in reporting (that means access to accurate --
both current and historical -- numbers as well as accountability in reporting) to build investor confidence.

2. While the State authorized media report this list in rank order, we are not able to determine the basis of the rank order. In the
past this listing had been ranked by the total capital invested, but that ordering system is long abandoned. Therefore, we suggest
that no significance be attributed to the ranking number and readers should instead concentrate on the actual numbers presented
in each of the several categories. The reported originating source is the Ministry of Planning and Investment.

3. This is the largest monthly drop we have seen in a long time. There is no explanation offered.

Foreign Investment By Sector 1

Total Foreign Investment by Sector (US$)

Caveat:

As above in Foreign Capital Investment, these numbers are the best available and are published
by State controlled media. For the reasons earlier stated, they are highly suspect. We encourage
readers to review archived monthly reports as they may have the need to review the accuracy of
reporting.

Where the numbers increased or decreased month-on-month, we've added a corresponding +/-
respectively. Where no change is reported, no symbol follows the number. Where there is
substantial change worthy of note, we mark that with a double + or - (as ++ or --). While the public
and we are given no explanations for the changes, we do invite readers to review the previous
reports in Economic Indicators for further research.

As of December 22, 2007 (January2008 VET) T

Total
Total Total Invested
Sector Implemented
Projects (US$ bn)
(US$ bn)
Industry &
5,745+ 50.030+ 20.043+
Construction
Oil & Gas 38 3.862 5.148+

Construction 451+ 5.301+ 2.147+

Agriculture &
933+ 4.465+ 2.026+
Forestry
Fisheries 130- 0.450+ 0.169-

Services 1,912+ 28.609+ 7.176+

Transport &
208 4.287+ 0.717-
Telecom
Hotels &
223+ 5.884+ 2.401+
Tourism
 Banking and
66 0.897+ 0.715-
Finance
Health and
271 1.249- 0.367+
Education
Building
New Urban 9 3.478+ 0.111+
Areas
Offices and
153 9.263+ 1.892+
Apartments
IPZ & EPZ
28 1.406+ 0.576+
Infrastructure
Others 954 2.145+ 0.383-

Notes:

1. As reported earlier (here in March 2002 and April 2002, and in Vietnam Vignettes for May 2002) we see some fiddling with the
Sector Investments. While most if not all financial reports from the State are considered overstated, recent undisguised
errors show huge discrepancies and the questionable nature of these financial reports from Vietnam. The third Q 2002 loss of
Russian investment amounting to $600 million in the Dung Quat projects first was reported in February 2003 that seems to
account for some of down turn seen in the total investment numbers that were down from 3.195 billion to 1.953 billion while the
implemented capital decreased from 3.511 billion to 3.346 billion. That the January 2003 numbers were not published may have
something to do with the then current picture. Clearly the nation still needs transparency in reporting (that means access to
accurate -- both current and historical -- numbers as well as accountability in reporting) to build investor confidence.

Foreign Investment By Province 1 :

Caveat :
Accurate investment figures are not readily available, and when published, they lack
transparency. There is no logical reason for apparent reporting discrepancies. Following a long,
unexplained suspension, in September 2000, the State resumed its monthly reports on
Implemented Capital, earlier called Capital Committed . Estimates of this number differ among
multinational institutions but currently run at between 25% to 50% of the official government
statistics offered here.

The numbers in this report as they are reported by the State for international use, and vary
substantially from month to month. Sometimes the number of projects and capital increases but
implemented capital decreases. The reverse also happens. It could be due to a reporting lag time
or intentional fiddling with the numbers. There is no explanation offered to the public.

Where the following numbers increased or decreased month-on-month, we've added a

corresponding +/- respectively. Where no change is reported, no symbol follows the
number. While we have no explanations for the changes, we do encourage readers to review
prior reports on line as readers may have the need for historical accuracy.

Top Twenty Locations by Total Capital As of December 22, 2007 (January2008 VET)

Total
Number of Total Capital Total Implemented
Province Number of
Projects 2003 (US$ bn) Capital (US$ bn)
Projects

1 HCMC 94+ 2,398+ 16.583+ 6.347+

 2 Hanoi 28+ 987+ 12.424+ 3.592+
3 Dong Nai 19+ 918+ 11.667+ 4.153+
4 Binh Duong 39+ 1,570+ 8.469+ 2.079+
5 BaRia-Vung Tau 3+ 159+ 6.111- 1.268+
6 Hai Phong 1 268 2.601- 1.274
7 Phu Yen 5+ 39+ 1.976+ 0.124+
8 Da Nang 4 113+ 1.873+ 0.184-
9 Vinh Phuc 0 140+ 1.866+ 0.438+
10 Long An 5+ 188+ 1.864+ 0.423-

11 Hai Duong 2 271+ 1.757- 0.439-

12 Ha Tay 5+ 74+ 1.505+ 0.218-

13 Quang Ngai 0 15+ 1.125- 0.012-

14 Bac Ninh 5+ 106+ 0.932+ 0.200-

15 Thua Thien Hue 11+ 40 0.791+ 0.146-

16 Quang Ninh 1 94 0.775+ 0.399+

17 Thanh Hoa 3+ 29 0.751+ 0.448+

18 Hau Giang 2+ 5 0.630+ 0.001+

19 Hung Yen 0 116 0.612+ 0.133+

20 Tay Ninh 4 149 0.575+ 0.238+

Notes:

1. Clearly the nation needs transparency in reporting (that means access to accurate -- both current and historical -- numbers as
well as accountability in reporting) to build investor confidence and attract more substantial western investors and projects to
Vietnam. By way of example only, the home of the Dung Quat Refinery Project, Quang Ngai, first showed the loss of US$ 1.3
billion (down from 1.326 to 0.026 billion) in capital investment in January 2003 with implemented capital decreasing from 0.546 to
0.011 billion. The Russians pulled out three months earlier yet the numbers were not published until our report dated April 2003.
However, the reported value of the Russian investment was only $600 million. There is no explanation offered for the even larger
loss. Errors are less apparent in other reports, but in several reports the number of year-to-date new projects increase where the
total number of projects hold fast or in several cases drop. I

Industrial Zones Of Vietnam We are no longer up-dating this information. The

available data is now so extensive (> 100 IZs) that to do it justice would require a separate web
page of its own. We retain this data and will be pleased to supply it to any reader who requests it.
Please write to us with your request. Of course there will be a fee for this extra service.

Industrial Zone Province Licensed Date

1 Nhon Trac Dong Nai 2003

2 An Phuoc Dong Nai 2003
3 Tam Phuoc Dong Nai 2003
4 Long Thanh Dong Nai 2003
5 Nhon Trash V Dong Nai 2003
6 Cat Lai IV HCMC 1997
7 Phong Phu HCMC 2003
8 Linh Trung III Tay Ninh 2002
9 Chon Thanh Binh Phuoc 2003
10 Hoa Can Da Nang 2003
11 Nam Cam Nghe An 2003
12 Vung Anh I Ha Noi 2002
13 Dai Tu-Ha Noi Ha Noi 1995
14 Daewoo-Hanel Ha Noi 1996
15 Nam Thang Long Ha Noi 2001
16 Hai Phong 96 Hai Phong 1997
17 Dai An Hai Duong 2003
18 Nam Sach Hai Duong 2003
19 Phuc Dien Hai Duong 2003
20 Pho Noi B Hung Yen 2003
21 Pho Noi A Hung Yen 2004
22 Bac Phu Cat Ha Tay 2002
23 Kim Hoa Vinh Phuc 1998
24 Phuc Khanh Thai Binh 2002
25 Xuyen A Long An 1997
26 Tan Kim Long An 2003
27 Hoa Xa Nam Dinh 2003