Vingroup JSC Annual Report 12848a PDF

TABLE OF CONTENT
01 02 03 04 05 06
CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER
VINGROUP 2017 AND ABOUT MANAGEMENT REPORT CORPORATE GOVERNANCE SUSTAINABLE CONSOLIDATED FINANCIAL
MESSAGE FROM THE VINGROUP ON 2017 BUSINESS DEVELOPMENT STATEMENTS
CHAIRMAN PERFORMANCE AND 2018 Vingroup Governance 72
Vingroup Profile 22 PLAN OF ACTION Structure Vingroup’s Vision for 94 General information 116
Vision, mission, core values 08 Sustainability
Corporate Milestones 24 Report of the Board of 74 Report of management 118
2017 At a glance 2017 Economy and 2018 50
10 Directors Sustainability by the 95
Businesses 26 Macroeconomic outlook Independent auditors’ report 119
2017 Achievements Numbers and 2017
11 Report of the Supervisory 77
Corporate Structure 36 Vingroup Operations and 54 Highlights Consolidated balance sheet 120
2017 Titles and awards 14 Board
Board of Directors 38 Financial Performance in Consolidated income 124
2017 Sustainability Report 99
Message from the Chairman 16 2017 Governance Report 78
statement
Management 40 Managing Sustainability 110
2013 – 2017 Financial and 18 Blueprint for 2018 66 Internal Auditing Report 80 125
Consolidated cash flow
Supervisory Board 42
Operational Highlights Risk Management 81 statement
Development Strategy 43
Share Information and 84 Notes to the consolidated 127
Investor Relations financial statements
Appendix 1 – The Group 206

structure as at 31 December
2017
VINGROUP
ANNUAL
REPORT
2017
GO GLOBAL
VINHOMES METROPOLIS
01
CHAPTER
VINGROUP “Vingroup is a premier corporate group but

its influence is only within Vietnam. We strive
2017 AND to become a true international enterprise
that is recognized globally. Our international
MESSAGE standards of superiority should be reflected
FROM THE not only in our services and products, but
also in our people. Every member of the
CHAIRMAN Vingroup team must become a professional
leader, serve with the highest integrity, and
inspire co-workers to achieve the best levels
of service.”
Vision, mission, core 08

values
2017 At a glance 10
Pham Nhat Vuong
2017 Achievements 11
Vingroup Chairman
2017 Titles and awards 14
Message from the 16

Chairman
2013 – 2017 Financial 18

and Operational
Highlights
VINHOMES CENTRAL PARK

CHAPTER 1 CHAPTER 1
VINGROUP 2017 AND MESSAGE FROM THE CHAIRMAN VINGROUP 2017 AND MESSAGE FROM THE CHAIRMAN
VISION, CORE VALUES
MISSION, Vingroup strives to uphold six core values: CREDIBILITY, INTEGRITY, CREATIVITY, SPEED, QUALITY, and HUMANITY.
These values are described below.
CORE VALUES
CREDIBILITY SPEED
Vingroup vigorously protects its Credibility as The Company considers speed of execution and
one would protect one’s honor. The Group is fully efficiency in operations to be critical to our success.
prepared to execute its plans and spares no effort in Among the practices that follow from our emphasis
meeting its goals. on speed are, “Fast To Decide, Fast To Invest, Fast To
VISION Deploy, Fast To Sell, Fast To Change, and Fast To Adapt.”
INTEGRITY
With the goal of market leadership and sustainable
As a foundation of our Company, Integrity demands
development, Vingroup aims to become one of the most
that we remain in full compliance with all applicable
respected companies not only in Vietnam but also in the QUALITY
laws and ethical standards. It follows that we must
region. We will achieve this goal by improving production The place of quality in Vingroup’s operations is
always put the interests of customers first.
quality and service levels in real estate development, retail expressed as “Best in People, Best in Products and
operations, and hospitality, by improving the quality of life Services, Best in Quality of Life, Best in Commitment
for the Vietnamese people, and by raising the reputation to Society.”
of the nation in the world.
CREATIVITY
Vingroup’s management believes that creativity
MISSION is what enables the Company to deliver on its HUMANITY

philosophy, which is expressed as, “Dare To Think, The Company respects the interests of all its
Customers Dare To Do.” This philosophy encourages all stakeholders. Employees are Vingroup’s most important
Vingroup will provide products and services that meet employees to learn new skills. resource. The Company will continue to promote
international standards while reflecting the customs and harmony among the interests of all stakeholders by
cultural values of Vietnam. Products and services must emphasizing fairness, integrity, unity, and strength.
anticipate changes and lead the trends.
Shareholders and Business Partners

The Company will uphold a spirit of cooperation,
emphasizing mutual development and respect for partners SLOGAN LOGO
by emphasizing the creation of long-term sustainable PRESERVING THE STARTUP MINDSET
value.
As a relatively young company, Vingroup believes it is
important to preserve the entrepreneurial traits that led
Employees
to our success. The startup mindset includes listening
Vingroup will maintain a dynamic, creative, and respectful
to customers, cultivating creativity, supporting the
work environment that enables employees to achieve
courage to innovate, and collaborating to succeed. These
their maximum potential.
traits will continue to guide the Company’s growth and
Vietnamese Society development.
The Vingroup Logo shows a bird in flight toward to the
The Company will demonstrate its corporate social Sun. This image expresses our determination to strive for
responsibility by harmonizing its corporate goals with the
MESSAGE new levels of success. The V-shape of the bird’s wings
values of the communities in which it does business. GO GLOBAL refers to Vietnamese national pride and to the Company’s
Our development goal this year is to Go Global! Vingroup’s place in its competitive marketplace.
mantra for its future is to emphasize the Company’s place
The five stars beneath the image of the bird represent
in the world and to consider the role of the world in
Vingroup’s gold standards and principles.
Vingroup’s future. The Vingroup team must listen, research,
innovate, dare to think and dare to do, and relentlessly The two colors of the logo, from Vietnam’s flag, express
improve ourselves in order to exceed customers’ wishes. the Company’s pride in our Vietnamese identity, spirit, and
This new perspective preserves our focus on growth and intelligence.
sustainability.
VINPEARL HA TINH HOTEL
8 ANNUAL REPORT 2017 - VINGROUP VINGROUP - ANNUAL REPORT 2017 9
CHAPTER 1 CHAPTER 1
2017 ACHIEVEMENTS
2017 AT A GLANCE
VND VND VND
89.4
TRILLION
5.7
TRILLION
250.3
TRILLION
NET REVENUE PROFIT BEFORE TAX MARKET CAPITALIZATION
1. VINFAST AUTOMOBILE AND 3. VINHOMES LAUNCHES

MOTORBIKE BRAND LAUNCHED PROJECTS THROUGHOUT
43,000 14,000 46 On September 2, 2017, Vingroup opened the VinFast VIETNAM
EMPLOYEES APARTMENTS, VILLAS, AND RETAIL MALLS Automobile Complex on Cat Hai Island in the City of Hai During 2017, Vinhomes launched 15 new projects
SHOPHOUSES DELIVERED
Phong. The name VinFast comes from the Vietnamese including Vinhomes Riverside – The Harmony, Vinhomes
DURING 2017
words for Vietnam, Style, Safety, Innovation, and Pioneer. Skylake and Vinhomes Green Bay in Hanoi, and Vinhomes
The goal of VinFast is to become the leading auto maker Imperia in Hai Phong.
in Southeast Asia with a range of products extending from
Across Vietnam, Vinhomes handed over nearly 14,000
internal combustion engines to electric vehicles.
new apartments, townhouses, villas and beach villas to
During 2017, VinFast signed agreements with such major homebuyers.
1.2 1,200 82
suppliers as BMW, Bosch, Siemens, Pininfarina, Magna
Steyr, and AVL. These agreements will enable VinFast to
MILLION SQUARE METERS RETAIL STORES MILLION
deliver electric motorcycles in September of 2018 and
RETAIL GROSS FLOOR AREA RETAIL PURCHASES automobiles in September of 2019.
2.1 4.3 475,000 4. VINPEARL INCREASED ITS HOTEL

MILLION GUEST NIGHTS MILLION VISITS PATIENTS SERVED AT VINMEC
SOLD AT VINPEARL HOTELS TO VINPEARL LAND HOSPITALS AND CLINICS ROOM COUNT TO MORE THAN
10,000 ROOMS
2. LISTING OF VINCOM RETAIL 2017 was an expansion year for Vinpearl, with the launch
JSC SHARES of eight new resorts and hotels, raising its total to 17 hotels
and resorts and its room count to over 10,000 rooms.
19,000 1,160 4
Vincom Retail JSC listed more than 1.9 billion shares on
As part of this development, Vinpearl launched properties
the Ho Chi Minh City Stock Exchange and quickly became
in four new locations: Nghe An, Ha Tinh, and Cam Ranh.
one of the largest listed companies in Vietnam. During
STUDENTS ENROLLED IN HECTARES MILLION During 2017, Vinpearl opened a 36-hole golf course in Vu
VINSCHOOLS FARMABLE LAND AT VINID MEMBERS 2017, Vincom Retail opened 15 new retail malls, bringing
VINECO FARMS Yen near the large northern city of Hai Phong, creating a
its portfolio to 46 malls in 24 cities and provinces across
unique new destination for customers.
the nation and its total retail GFA to 1.2 million square
meters, making Vincom Retail Vietnam’s largest retail mall
developer, owner, and operator.
CHAPTER 1 CHAPTER 1
8. VINGROUP CREDIT RATING 9. COOPERATION WITH A

UPGRADED BY S&P NETWORK OF 1,000 AGRICULTURAL
5. THE FASTEST GROWING RETAIL NETWORK IN VIETNAM COOPERATIVES AND FARMERS TO
In December of 2017, S&P raised Vingroup’s long-term
VinCommerce has expanded its scale of operations to approximately 1,200 supermarkets and convenience stores
credit rating to B+, the highest credit rating awarded in PROVIDE CLEAN, SAFE AGRICULTURAL
nationwide, while at the same time investing in the retail experience of our customers by improving its service quality and
the freshness of its foods.
the history of the real estate industry in Vietnam. PRODUCTS
Vingroup is judged by S&P to have a stronger market During 2017, Vingroup launched a program entitled,
position than some of its Southeast Asia business peers Accompanying, Supporting, and Promoting Domestic
with the same credit rating. Vingroup also maintained its Production.
rating of B+ from Fitch. These ratings are important in
giving Vingroup credibility in international capital markets. This program introduced the strictest quality control
Forbes Magazine recognized Vingroup during 2017 as a procedures, providing clean production materials to 44
multi-business corporation after having previously viewed cities and provinces.
Vingroup as only a real estate company. Recognition by To date, more than 1,800 participants have attended
Forbes demonstrates the extent to which Vingroup’s training programs in the standardization of farming
ecosystem of businesses is now respected by international technology, crop rotation, VietGap, pesticide, production
arbiters. optimization through adoption of advanced technology,
and international branding.
6. VINSCHOOL MEETS HIGHEST 7. INTERNATIONAL AND

INTERNATIONAL EDUCATIONAL PROFESSIONAL RECOGNITION FOR
STANDARDS VINMEC
After more than four years of operation, Vinschool On 9 June 2017, after only 15 months of operation, Vinmec
has become home to nearly 19,000 students with 17 Central Park International Hospital became the fourth
campuses spread across Vietnam. hospital in Vietnam to win JCI international accreditation.
This global standard is given to hospitals that meet the
During 2017, Vinschool adopted a comprehensive mix
highest standards of patient care and safety.
of national and international standard curricula including
the IPC Preschool Program, the Cambridge General Vinmec Times City International Hospital completed
School Program, and many other programs. All of these its first live-donor liver transplant, becoming the first
standards are based on progressive ideals, aiming for the privately-owned hospital in Vietnam to master the
full development of students. These programs are yet challenge of complex organ transplants, bringing new
another step by Vinschool towards becoming the leading options and hope to the people of Vietnam. 10. LARGE INVESTMENTS IN CULTURE AND SPORT
international educational network in Vietnam. In 2017, Vinmec also opened the sixth hospital – Vinmec Throughout the year, Vingroup made large investments to support the arts and culture. Examples include the opening of
Da Nang International Hospital. With a team of qualified, the VinTata Animation Studio and the Vincom Center for Contemporary Art (VCCA), strengthening the spiritual values of the
experienced doctors and medical professionals in many community.
important specialties, Vinmec Da Nang International
The headquarters of the Fund for Investment and Development of Vietnamese Football (PVF) was transferred from Ho Chi
Hospital was one of four medical facilities selected to
Minh City to Hung Yen, Hanoi, with new facilities and enhanced training regime to raise PVF football to international standards.
support the APEC Summit that took place in November
2017 in Da Nang.

CHAPTER 1 CHAPTER 1
2017 TITLES AND AWARDS
1. VINGROUP HONORED AS THE 4. BEST PRIVATE EQUITY DEAL 6. RECOGNITION FOR VINGROUP 8. VINHOMES RECOGNIZED
LARGEST PRIVATE COMPANY IN AND BEST FRONTIER MARKET BRANDS AS BEST DEVELOPER IN ASIA
VIETNAM TRANSACTION IN ASIA PACIFIC Four of the Company’s brands were honored in 2017:
PACIFIC BY INTERNATIONAL
In December 2017, the Vietnam Report recognized In December 2017, FinanceAsia and IFR Asia magazines Vinhomes, Vincom Retail, Vinpearl, and VinCommerce PROPERTIES AWARDS
Vingroup as The Largest Private Enterprise in Vietnam, gave the Vincom Retail listing and USD 741 million share were recognized among the 50 most valuable brands in
In December of 2017, Vinhomes was honored by
not only for its size but also for its contributions to the sale the Best Private Equity Deal and the Best Frontier Vietnam by Brand Finance Magazine on December 4,
the International Property Awards for its Vinhomes
nation’s economy and community. The Vietnam Report Market Transaction regional awards. The share sale 2017. Vinhomes was chosen as the fourth most valuable
Metropolis project, which was chosen in The Best High
also awarded Vingroup top-10 rankings in the categories attracted over USD 2 billion worth of investor orders – brand in Vietnam with a value of USD 604 million, an
Rise Building category. The Company’s Landmark 81
of Most Respected Real Estate Developers and Most the largest level of interest in Vietnam’s capital market increase of 18% over the prior year and the only real
Tower at Vinhomes Central Park won first place in the
Respected Listed Companies in Vietnam during 2017. history, and was more than three times over-subscribed. estate brand among Vietnam’s top ten brands in 2016
category of The Best High Rise Architectural Buildings for
and 2017. VinCommerce ranked 19th, Vinpearl 26th,
its designers at Atkins design company. The IPA Awards
2. SELECTED FOR NIKKEI’S ASIA 5. ONE OF THE TOP TEN and Vincom Retail was in 32nd place. Vincom Retail also
are recognized as the world’s most prestigious awards for
received third place recognition amongst the five most
300 LIST ANNUAL REPORTS AND powerful brands in Vietnam, based on Vingroup’s position
property development.
INTERNATIONAL ARC, LACP in the modern retail real estate sector. 9. BEST WORKPLACE AWARD
Nikkei Magazine of Japan chose Vingroup as one of the
top ten most dynamic companies in its Asia 300 list of AWARDS FOR ANNUAL REPORTS In the same year, the Vietnam Report honored VinMart BESTOWED BY ANPHABE CAREER
companies during 2017. The list includes the largest and
Vingroup’s annual report was amongst the ten best
and VinMart+ amongst the Two Most Popular brands and
COMMUNITY NETWORK
fastest growing enterprises throughout Asia. the Fourth Most Respected Retailer in the country.
reports named by the Ho Chi Minh City Stock Exchange.
3. ONE OF THE TOP TEN MOST The Company also received several prestigious 7. VINGROUP HONORED AT THE Vingroup was proud to be named Best Workplace in the
Real Estate / Architecture / Design / Retail / Wholesale
SUSTAINABLE COMPANIES international awards from ARC and LACP for its annual EUROMONEY INTERNATIONAL / Commerce / Travel / Restaurant / Hotel categories
reports, namely a Gold award for Best Photography, a PROPERTY AWARDS surveyed by the Anphabe Career Community Network in
Vingroup was honored as one of the Ten Most Sustainable Silver award for Best Content in the Real Estate – Mixed- collaboration with Nielsen Market Research Company
Businesses in the Service Sector by VCCI, as well as one use and Conglomerates categories by ARC, and a Gold Vingroup was honoured with the four most prestigious
of the Ten Enterprises with the Best Compensation and award for the Global Conglomerate category by LACP. country real estate awards from Euromoney magazine. 10. VINPEARL RESORTS
Social Welfare for Employees, an award given by the These awards were Best Real Estate Developer, Best
Vietnam General Confederation of Labor. Mixed-Use Developer, Best Retail Developer, and Best
HONORED AS A LEADING
Hospitality Developer. These awards denote Vingroup’s RESORT NETWORK IN VIETNAM
position and pretige as a leading real estate developer in
Vinpearl was chosen by the World Travel Awards in
Vietnam.
June of 2017 as the Best Marine Resort in Vietnam. In
August of 2018, Vinpearl was honored for the eighth
consecutive time for its quality of service as well as for its
contributions to tourism in Vietnam when it was chosen
as The Best Resort in 2017 at the 2017 Guide Awards.

CHAPTER 1 CHAPTER 1
MESSAGE FROM
Ladies and Gentlemen, • In real estate development, Vingroup continued to Ladies and Gentlemen,
hold the marketing-leading position, with the following
During 2017, the economy of Vietnam grew by 6.8% Beyond facts and figures, Vingroup has achieved a new
highlights:
THE CHAIRMAN over 2016, thanks to improvements in both demand and
productive capacity. • Vinhomes deployed astute sales strategies and
level of dynamism that has drawn respect both in Vietnam
and in international markets. Particularly, Vingroup is seen
offer attractive product packages across all product as an agent of change, a catalyst for entrepreneurism
Macroeconomic fundamentals are stable, with inflation
segments. The Group also handed over a record and an example of the “Can Do” mindset. The Group’s
at a four-year low for the fourth consecutive month.
nearly 14,000 apartments, villas, townhouses and standing in the domestic and international business
With that economic backdrop, Vingroup has enjoyed a
beach villas throughout the country. communities has also been elevated in 2017.
successful year with many achievements.
Dear Valued Shareholders, • Vincom Retail listed more than 1.9 billion shares on Our mission in 2018 is to “Go Global”
Vingroup Became the Largest Private Sector Enterprise in
the Ho Chi Minh City Stock Exchange. The Company
On behalf of the Board of Directors, I send you my warmest Vietnam in 2017 Vingroup’s accomplishments during the past year have
partnered with such well-known retail brands as
wishes for health, happiness, and success! prepared us to set new goals for 2018. The Company
With strong growth in both size and service quality, Zara, H&M, and Pull & Bear to open their first stores
will continue to upgrade the breadth and quality of its
Vingroup has become the largest private company in in Vietnam. Vincom Retail’s strategy of upgrading
operations to achieve international standards.
Vietnam and the enterprise with the largest market and diversifying shoppers’ retail experience drew
capitalization of USD 11 billion as of February 28, 2017. more than 115 million visitors, an increase of 42% Vingroup companies, especially Vincom Retail Malls, and
Vingroup’s emergence as the largest private enterprise in retail traffic over the prior year. VinMart and VinMart+ retail stores, will expand their
amongst Vietnam’s Top 500 Companies reflects many • In our Hospitality and Entertainment segment, Vinpearl presence throughout Vietnam. With solid investment
years of hard work by tens of thousands of employees. made improvements in service quality by implementing backing, Vingroup will expand its comprehensive
extensive reform campaigns that upgraded standards to ecosystem of products, services, and delivery systems to
Vingroup’s combined business results for 2017 were as
the international five-star level, putting the Company on a meet the needs of Vietnamese customers.
follows: revenue of VND 89.4 trillion, growing 55% over
2016, and after-tax profit of VND 5.7 trillion, growing path to leadership among the region’s integrated resorts. Vingroup will further upgrade all operations to five-
27% over 2016. The Company added nearly 7,000 new • In our Consumer Retail business, VinMart, VinMart+, and star standards, with accompanying improvements in
jobs, bringing our total number of employees to nearly Adayroi achieved 41% growth during the year, serving infrastructure, staffing, and level of sophistication for
43,000. more than 82 million customers with accompanying gains Vinpearl, international doctors and techniques for Vinmec,
in service quality, customer perception and mind share. and progressive educational philosophy for Vinschool and
In operations, the Group not only expanded the scale
VinUni.
of existing businesses but also added a seventh core • In the Healthcare segment, Vinmec implemented a
business segment – Industrials – with VinFast motorcycles new strategy focused on investing in key strengths, As a new business segment for Vingroup, VinFast will set
and cars. promoting international cooperation, and raising the standard for the Company’s entrepreneurial approach
professional standards for doctors and other medical to business. It will also introduce the first production
2017 was also a year marked by an emphasis on
staff. Vinmec increased the scale of its operations to six motocycles and two prototype car models in 2018.
improving the quality of services in all areas of operations
as Vingroup aims to attain international five-star hospitals with breakthroughs in treatments for cancer, Vingroup will continue to implement the governance
cerebral palsy, autism, cardiovascular surgery, organ revolution that was initiated in 2017, building on the
standards across all businesses.
transplant, and robotic surgery.
Five Transformational Principles. The objectives of the
In the area of corporate governance, Vingroup
• In Education, Vinschool has adopted a strategy of Principles are to optimize internal resources to attain the
introduced the Five Transformational
upgrading the quality of its offerings through innovative highest level of effectiveness, so that Vingroup may make
Principles that guide our strategy, business
curricula and adding more teachers. The Vinschool our mark as a leading global enterprise.
model, and governance: “Elevate –
network now enrolls close to 19,000 students on 17
Standardize – Simplify – Automate – With the mission of "To create a better life for the
campuses throughout Vietnam, making it the largest
Share”. Vietnamese people”, Vingroup still has a lot of work to do.
private educational institution in the nation. On March
On behalf of the Board, I express my sincere gratitude for
Vingroup’s new operational 5, 2018, Vingroup announced the establishment of
your continued support, and I send my best wishes.
model has helped win the trust VinUni International University to contribute talented
of customers and has gained graduates to the workforce in Vietnam. Yours sincerely,
professional recognition in
• VinEco’s agricultural operations successfully
the form of domestic and
implemented advanced farming techniques using
international awards.
increased automation and growing new cultiva across
The Company’s core business its farms. VinEco also grew to 1,000 its network of
areas have achieved outstanding cooperatives and farms producing clean agricultural
results, as follows: products for Vietnamese consumers, helping to instill
a change towards responsible farming practices in the
Pham Nhat Vuong
country.
Vingroup Chairman
• During 2017, Vingroup added a new business in
Industrials sector by launching VinFast to manufacture
and sell motorcycles and cars. This launch represents
the culmination of a long-held dream for Vietnam to
produce its own cars.
CHAPTER 1 CHAPTER 1
2013 ‒ 2017 FINANCIAL AND

HAI PHONG
VINCOM 1
VINPEARL 1
OPERATIONAL HIGHLIGHTS VINMART

VINMART+
VINPRO
31
1
1
VINECO 1
VINFAST 1
NET REVENUE VINCOM SHOPPING MALL NETWORK KEY LOCATIONS

(Trillion VND) HANOI
46
VINHOMES 8
89.4 32
100000 VINCOM 7
22 1,173 NETWORK VINMART 18
80000 VINMART+ 460
57.6 3 5 6 1,026
Vingroup’s extensive network
883 VINPRO 5
60000 of business operations cover VINMEC 2
34.0
prime locations throughout VINSCHOOL 14
40000 27.7
483 514 VINPEARL LAND 1
18.4 Vietnam. As of February
20000
28, 2018, Vingroup and its
132
0 subsidiary companies conduct
2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017
operations in 38 of Vietnam’s
Revenue from sale of inventory properties Retail gross floor area (‘000m2) provinces and cities.
Recurring income Number of shopping malls
Each of our business units
headquartered in Hanoi, Ho
TOTAL ASSETS VINCOMMERCE RETAIL NETWORK Chi Minh City and Khanh Hoa KHANH HOA
(Trillion VND) (Stores) VINCOM 3
contributed more than 10%
250 VINPEARL 5
213.8
of the Group’s total revenue VINPEARL LAND 1
200 183.5
during 2017. VINMART 3
145.5 1,158 VINMART+ 13
150
922 36 VINMEC 1
90.1 24
100 75.8 1,055
843
50 67
55 HO CHI MINH CITY
0
2013 2014 2015 2016 2017 28/02/2017 28/02/2018 VINHOMES 2
VINCOM 11
VinMart VinMart+ VinPro
VINMART 14
VINMART+ 396
VINPRO 7
VINMEC 2
OWNER’S EQUITY VINPEARL HOTEL NETWORK VINECO 1
(Trillion VND) (Guest nights‘000s) VINSCHOOL 3
52.6 2,119
48.3
60 60
37.6 50 1,620 Property
50
Hospitality and Entertainment
40 27.5 40 KIEN GIANG
VINCOM 1 Consumer Retail
30 30
14.5 VINPEARL 4 Healthcare
20 20 725 VINPEARL LAND 2
556 Education
10 10 473 VINMART 1
VINPRO 1 Agriculture
0 0 VINMEC 1
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Industrials
VINECO 1

VINGROUP
ANNUAL
REPORT
2017
GO GLOBAL
VINHOMES THE HARMONY

Chapter 2 CHAPTER II
2
ABOUT VINGROUP ABOUT VINGROUP
VINGROUP
PROFILE
Company Name: Vingroup Joint Stock Company (“Vingroup” or “The

Vingroup JSC Group”) is one of the largest listed companies in Vietnam
as measured by market capitalization. With its long-term
Ticker:
02
vision of sustainability, Vingroup has initially focused
CHAPTER VIC
on developing hospitality, commercial, and residential
properties under the Vinpearl and Vincom brands. Today,
PROPERTY
Vinhomes – Premium integrated offerings of apartments, villas and shophouses
VinCity – Mid-range and affordable residential properties with comprehensive facilities
Charter Capital: Vincom Retail – Quality retail malls and offices
VND 26,377,079,540,000 Vingroup competes in five business segments:
as of February 28, 2018
• Property
Headquarters: • Hospitality and Entertainment
No. 7, Bang Lang 1
Vinhomes Riverside Ecological Area • Consumer Retail
Viet Hung Ward
ABOUT Long Bien District

Hanoi, Vietnam
• Social Infrastructure Services
• Industrials
VINGROUP Telephone:
(84-24) 3974 9999
Vingroup Profile 22
Fax:
Corporate Milestones 24
(84-24) 3974 8888
Businesses 26
Business registration
Corporate Structure 36 number and tax code:
Board of Directors 38 0101245486
HOSPITALITY Vinpearl – Five star & five star plus resorts and city hotels CONSUMER VinMart & VinMart+ – Supermarkets, mini-marts
RETAIL
Management 40 Website: AND
ENTERTAINMENT Vinpearl Golf – World-class golf courses
and convenience stores
VinPro – Electronics and appliance stores
www.vingroup.net Vinpearl Land – Amusement parks and conservation parks
Supervisory Board 42 Adayroi – Comprehensive e-commerce platform
Development Strategy 43
In all of its established business segments, Vingroup is a proven market leader

with a focus on the continuing modernization of consumer purchasing trends and
lifestyles.
SOCIAL Vinmec – International hospitals

VinFast – Vietnamese international – quality INFRASTRUCTURE
INDUSTRIALS Vinschool – High-quality K-12 school system
motorcycles and automobiles SERVICES
22 ANNUAL REPORT 2017 - VINGROUP VinEco – VINGROUP
Clean and- safe agricultural
ANNUAL products
REPORT 2017 23
Chapter 2 CHAPTER 2
2. CORPORATE MILESTONES
2001 2003 2006 2008 2010 2012 2014 2016
Vinpearl JSC (formerly Hon Vingroup became the first real • Vincom JSC merged with • The Group opened ten
Tre Tourism and Trading estate company in Vietnam Vinpearl JSC and increased new retail malls to bring its
Limited Liability Company) to be selected by Russell total charter capital to VND total to 32 malls in 15 cities
was established on July 25, Investments for the Russell 5.5 trillion. The Group began and provinces throughout
Vietnam
2001 Global Index operating under the new name
Vingroup Joint Stock Company • The retail store network
was expanded to 1,000
• Vingroup introduced the • Vinhomes Central Park, a outlets nationwide
Five-star resort Vinpearl Nha Vinmec brand and opened the
Trang commenced operation modern, luxurious urban area,
Vinmec International Hospital • Vingroup introduced the
broke ground in Ho Chi Minh
in Times City Vingroup Loyalty Program
City. The Landmark 81 Tower,
with 81 floors and a height of • Vingroup raised its hotel
461 meters, would become, room count to more than
upon completion, the tallest 6,000 rooms and introduced
skyscraper in Vietnam a high-end city hotel brand,
and one of the ten tallest Vinpearl City Hotel, with the
buildings in the world opening of a Vinpearl City
Hotel in Can Tho
• VinMart and VinMart+
began operations • Vingroup converted Vinmec
Vinpearl Land opened, and Vinschool into social
turning formerly arid Hon Tre • Vinpearl Phu Quoc Resort enterprises and committed
Island into a luxury tourist opened after ten months to reinvest 100% of profits
destination, and symbolizing of construction, setting a generated from these two
• Vincom Center Dong Khoi businesses to meet social
the rapid growth of tourism new record for on-time
opened in Ho Chi Minh City targets
in Nha Trang completion
• The Group commenced • Vingroup introduced the
pre-sales of apartments in the VinCity affordable real estate
Royal City project in Hanoi brand
2002 2004 2007 2009 2011 2013 2015 2017

Vincom JSC (formerly • Vinpearl cable car, with • Vinpearl Luxury Nha Trang, • Vingroup achieved major
Vietnam General Commercial a total of 3,320 meters in a five-star resort, and Vinpearl progress in its property
JSC) founded on May 3 length, connected Hon Tre Golf Nha Trang opened business segment by pre-
Island with the main land. simultaneously selling 14,000 apartments,
Vinpearl Nha Trang Resort villas, and shophouses
opened an additional tower, • Vinpearl Da Nang Resort &
raising the total number of Villas were opened • By year-end, the Group
five-star guest rooms to 485. • Vingroup became a operated 15 additional retail
• Vincom Retail opened 15
Foundation Member of the malls and three more hotels
new retail malls for a total of
• Vincom listed its shares on World Economic Forum
• During the year, Vingroup 46 in 24 cities and provinces
the Ho Chi Minh City Stock throughout Vietnam. It was
Exchange with ticker symbol • Vinschool was established launched new businesses and
and launched education brands, including: listed on Ho Chi Minh City
VIC Stock Exchange in November
offering ranging from
kindergarten through high • Vinpearl Resort & Villas – 2017
school a new concept combining
resorts and beach villas • The retail store network
• A consortium led by was expanded to 1,200
Warburg Pincus invested • VinEco – safe and clean outlets nationwide
USD 200 million in a strategic agricultural products
• Vinpearl launched eight new
partnership with Vincom • VinPro – electronics and hotels and resorts, bringing
Retail. Warburg Pincus appliance stores its total room count to over
invested an additional USD 10,000 rooms.
Vincom Center Ba Trieu Vincom became the first 100 million in Vincom Retail • Vingroup also commenced
launched. As the first modern Vietnamese company to issue in June 2015, raising the total operations at Vietnam’s • VinFast automobile
retail mall in Hanoi, Vincom USD 100 million of convertible investment to USD 300 million first – and still only – wildlife and motorbike brand was
Center Ba Trieu introduced a bonds on the Singapore safari park with more than announced and construction
• Vincom Mega Mall Royal began at its production site in
new shopping experience to Exchange (SGX) 3,000 animals representing
City opened as Asia’s largest September 2017
the customers 150 rare species
underground retail complex
• The Vincom Center for
• Vingroup successfully
Contemporary Art (VCCA)
issued USD 200 million of
and VinTata Animation Studio
international senior unsecured
were introduced
bonds

Chapter 2 CHAPTER 2
BUSINESSES VINCITY
MID-RANGE AND AFFORDABLE

REAL ESTATE IN FULLY-INTEGRATED
PROPERTY COMMUNITIES
Vingroup introduced the VinCity brand in 2017 to serve

middle-income customers in non-CBD locations in Hanoi
VINHOMES and Ho Chi Minh City, as well as the provinces of Hung
Yen and Ha Tinh.
PREMIUM APARTMENTS, VILLAS AND SHOPHOUSES
VinCity projects are characterized by high-quality
WHERE HAPPINESS LIVES
construction and a full complement of amenities.
14,000 Vinhomes is the leading real estate brand in Vietnam.

Vinhomes develops, sells, and manages mixed-use
residential real estate projects that target the mid-range
Vinhomes properties include:
Ho Chi Minh City

Hanoi
Apartments, villas, shophouses and beach villas handed
and high-end market segments. Vinhomes projects are • Vincom Ba Trieu • Vincom Dong Khoi
over during 2017
in prime locations in Vietnam’s most populous cities and • Vinhomes Central Park
• Vinhomes Riverside
12
provinces.
• Vinhomes Riverside Quang Ninh
Vinhomes now manages twelve projects with nearly – The Harmony
• Vinhomes Dragon Bay
31,000 apartments, villas, and shophouses. Vinhomes • Vinhomes Times City &
Projects managed in Hanoi, Ho Chi Minh City, Quang Vinhomes Times City Ha Tinh
benefits from all of the supporting infrastructure needed
Ninh and Ha Tinh – Park Hill • Vinhomes Ha Tinh
to create a successful community. These amenities include
• Vinhomes Royal City
playgrounds, sports facilities, swimming pools, lounges,
Vinschool educational institutions, Vinmec healthcare • Vinhomes Nguyen Chi Thanh
facilities, Vincom Retail malls and VinCommerce • Vinhomes Gardenia

supermarkets, mini-marts and convenience stores. • Vinhomes Thang Long
Vinhomes delivers not only a property but also a modern
and high-living-standard environment in line with its
slogan of “where happiness lives”.
Chapter 2 CHAPTER 2
VINCOM RETAIL
QUALITY RETAIL MALLS

HOSPITALITY AND ENTERTAINMENT
VINPEARL
VIETNAM’S VACATION PARADISE
46 are currently three Vincom Mega Malls located in Hanoi

15
Retail malls include 4 Vincom Centers, 3 Vincom Mega Vinpearl Five-Star Plus Resorts include:
and Ho Chi Minh City. Hotels, resorts and villas
Malls, 30 Vincom Plazas, and 9 Vincom+ malls
2
• Vinpearl Luxury Nha Trang
1.2
• Vincom Plazas – The Family Favorite: The Vincom Plaza
Vinpearl Five-Star Resorts include:
brand provides a family-oriented modern shopping
experience in newer cities and in suburban areas • Vinpearl Ha Long Bay Resort
City hotels
Million square meters of Retail Gross Floor Area outside Hanoi and Ho Chi Minh City. There are currently • Vinpearl Ha Tinh Ocean Villas
As a leading operator of retail malls, Vincom Retail

30 Vincom Plaza malls in 21 Vietnamese cities and
provinces. 3 • Vinpearl Cua Hoi Resort & Villas
• Vinpearl Da Nang Resort & Villas
operates four distinct brands: Vincom Center, Golf courses
• Vincom+ Retail Malls – Transforming Retail Behavior: • Vinpearl Da Nang Ocean Resort & Villas
Vincom Mega Mall, Vincom Plaza, and Vincom+. In
> 10,000
These malls are located in districts and towns whose
combination, these brands give Vincom Retail a presence • Vinpearl Hoi An Resort & Villas
population exceeds 30,000 and where people are eager
throughout Vietnam with differentiated offerings for • Vinpearl Nha Trang Resort
to take advantage of the newest shopping experience.
each customer group. Vincom Retail malls combine Rooms • Vinpearl Nha Trang Bay Resort & Villas
There are nine Vincom+ malls in eight different provinces
shopping, entertainment, and dining, as well as cultural
in Vietnam. • Vinpearl Golf Land Resort & Villas
and recreation experiences. This combination of Vinpearl is the market-leading hospitality and tourism
brand in Vietnam, operating 5-star and 5-star-plus • Vinpearl Nha Trang Long Beach Resort & Villas
services has set a new standard for Vietnamese retail
and entertainment, establishing Vincom Retail as the VINCOM OFFICE resorts and beach villas throughout Vietnam. • Vinpearl Phu Quoc Resort
market leader in modern retail real estate investment and VINCOM OFFICE PROVIDES PREMIUM Starting with Vinpearl Resort Nha Trang, and after more than • Vinpearl Phu Quoc Resort & Golf
management. WORKSPACES 15 years of development, Vinpearl now owns luxurious hotel • Vinpearl Phu Quoc Ocean Resort & Villas
• Vincom Centers – For the Shopping Elite: By bringing and resort chains across Vietnam with four key resort lines: • Vinpearl Phu Quoc Paradise Resort & Villas
Vincom Office provides office properties for lease. These 5-star-plus resorts with the Vinpearl Luxury brand, 5-star
the leading international and domestic retail brands to Vinpearl City Hotels include:
properties are located in the heart of major financial and resorts with the Vinpearl Resort, Vinpearl Resort & Villas and
Vietnam’s major cities, Vincom Retail provides the elite
business centers and offer maximum natural light, energy Vinpearl Resort & Golf brands, urban hotels and condotels • Vinpearl Ha Tinh Hotel
shopping and entertainment experience in Hanoi and
efficiency, and modern, professional workspaces. with the Vinpearl City Hotel brand, and golf courses with the • Vinpearl Can Tho Hotel
Ho Chi Minh City.
Vincom Offices include: Vinpearl Golf brand. Vinpearl Golfs include:
• Vincom Mega Malls – For the Modern Lifestyle: These
large-scale retail malls are mixed-use facilities located • Vincom Office Royal City Vinpearl currently operates seventeen hotels and resorts • Vinpearl Golf Hai Phong
in densely-populated areas and offer a wide array of with a total of more than 10,000 rooms in such popular
• Vincom Office Times City • Vinpearl Golf Nha Trang
shopping, entertainment, and dining experiences. There tourist destinations as Ha Long Bay, Nghe An, Ha Tinh, Da
• Vincom Office Dong Khoi • Vinpearl Golf Phu Quoc
Nang, Nha Trang, Cam Ranh, Can Tho, and Phu Quoc.

Chapter 2 CHAPTER 2
CONSUMER RETAIL
VINPEARL LAND VINCOMMERCE
VINPEARL LAND – VIETNAM’S RECREATION PARADISE A LEADING MODERN RETAIL NETWORK
1,200 and convenience stores in Hanoi, Ho Chi Minh City, and

Retail stores
many other provinces.
82
VinPro Electronics and Appliances stores
VinPro is the Group’s retail brand for electronics,

smartphones, tablets, laptops and home appliances.
Million retail purchases during 2017
Currently, there are 36 VinPro stores located in Vincom
4.3
shopping malls across the country.
VinCommerce is the umbrella brand for the Group’s
consumer retail offerings – VinMart, VinMart+, VinPro, Adayroi e-commerce
Vinpearl Land facilities include: and Adayroi. VinCommerce operates a comprehensive
Million visitors in 2017 Adayroi is Vietnam’s leading e-commerce website. Its
• Outdoor amusement parks: and market-leading network of retail stores in all major
mission is to bring modern and convenient online shopping
retail formats throughout Vietnam, where customers
Vinpearl Land is Vingroup’s entertainment brand, offering • Vinpearl Land Nha Trang to Vietnamese families. Adayroi's distinct advantage is its
can experience the convenience of modern retail both in
high-quality amusement parks, conservation parks and access to Vingroup’s entire ecosystem of products and
• Vinpearl Land Phu Quoc brick-and-mortar stores and online.
family entertainment centers. Located in Vingroup’s services.
resorts and mixed-use developments throughout the • Indoor entertainment center: VinMart supermarkets and VinMart+ mini-marts and
adayroi.com provides diverse products including Food &
country, these facilities are large-scale complexes convenience stores
• Vinpearl Land Times City FMCG, Mobile Phones & Tablets, Household Appliances,
comparable to the leading global theme parks. VinMart supermarkets and VinMart+ convenience stores Electronics and Technology, Fashion, Health & Beauty,
Vinpearl safari and conservation park includes:
and mini-marts win customers’ trust by providing high Mom & Baby, Sports & Outdoors, Books & Stationery,
quality products from trusted suppliers and supported Automobiles & Motorcycles, Services and Vingroup
• Vinpearl Safari Phu Quoc
by exceptional service. Currently, the Group operates 67 Products & Services.
VinMart supermarkets and 1,055 VinMart+ mini-marts

Chapter 2 CHAPTER 2
SOCIAL INFRASTRUCTURE SERVICES
VINMEC VINSCHOOL
QUALITY HEALTHCARE SERVICES HIGH QUALITY K-12 EDUCATION
6 By employing the most highly skilled medical experts, and

17 Vinschool facilities include:
International hospitals Kindergartens, elementary, secondary and high schools
by using medical equipment imported from the United In Ha Noi
States, Canada, Europe, and Japan, Vinmec has grown
2 19,000
• Five Vinschool Kindergartens at Vinhomes Times City
rapidly in just five years in both quality and its range of
services. • Two Vinschool Kindergartens at Vinhomes Royal City
International clinics Vinmec healthcare facilities include: Students enrolled • Vinschool Kindergarten at Vinhomes Riverside
• Vinmec Times City International Hospital • Vinschool Kindergarten at Vinhomes Nguyen Chi Thanh
1,500
Vinschool is a comprehensive educational system of
• Vinmec Central Park International Hospital kindergartens, secondary schools, and high schools with • Vinschool Kindergarten at Vinhomes Gardenia
the goal of becoming Vietnam’s leading international • Vinschool Kindergarten at Vinhomes Thang Long
Beds • Vinmec Ha Long International Hospital
school system and an incubator of talent.
• Vinmec Da Nang International Hospital • Vinschool Elementary School at Vinhomes Gardenia
2,200
All schools in the Vinschool system are equipped with
• Vinmec Nha Trang International Hospital • Vinschool Elementary, Secondary, and High School at
advanced educational facilities. Vinschool has made
Vinhomes Times City
• Vinmec Phu Quoc International Hospital substantial investments in highly qualified teachers and
Healthcare professionals progressive curricula. This dynamic environment prepares • Vinschool Elementary, Secondary, and High School at
• Vinmec Royal City International Clinic Vinhomes – The Harmony
students to take full advantage of both domestic and
Vinmec is a leading Vietnamese healthcare system that
• Vinmec Saigon International Clinic international opportunities while remaining grounded in In Ho Chi Minh City
adheres to international standards. It is an established
Vietnamese culture and values.
pioneer in applying advanced technology to people’s • Two Vinschool Kindergartens at Vinhomes Central Park
healthcare needs.
• Vinschool Elementary, Secondary, and High School at
Vinhomes Central Park

Chapter 2 CHAPTER 2
INDUSTRIALS
VINECO VINFAST
GREEN, CLEAN AND SAFE AGRICULTURE VIETNAMESE MOTORCYCLES AND AUTOMOBILES BUILT TO INTERNATIONAL
QUALITY STANDARDS
14 land. VinEco products include clean and safe vegetables,

335 VinFast stands for “Vietnam – Style – Safety – Innovation
Farms Hectares of production complex
fruits, and flowers. – Pioneer”, which aims to produce Vietnamese cars to
international standards. The goal of VinFast is to become
2,000 250,000
VinEco collaborates with leading domestic producers and
the leading automobile manufacturer in Southeast Asia.
farming households to help them diversify their product
Its main products will be automobile engines, internal
offerings, enhance productivity, and improve the quality
Cars in production capacity combustion engines, electric engines and eco-friendly
Hectares agricultural land of the products available on the market.
electric scooters. The first phase of the project has a
VinEco was launched in 2015 to provide consumers with
design capacity of 250,000 cars and 250,000 scooters
a trusted source of clean and safe agricultural products.
per annum.
VinEco has catalyzed the expansion of sustainable
farming.
By using the most advanced large-scale greenhouse

technology from Japan and Israel, VinEco has achieved
VietGAP standard. At the end of 2017, VinEco had 14
farms throughout Vietnam with 2,000 ha of agriculture

Chapter 2 CHAPTER 2
CORPORATE STRUCTURE GENERAL MEETING

OF SHAREHOLDERS
Vingroup operates five core businesses within seven

BOARD OF DIRECTORS
groups of subsidiary companies, each structured into CHAIRMAN
separate profit-and-loss (P&L) centers. Subsidiary PHAM NHAT VUONG
companies in seven businesses retain self-governance
capacity, have their own balance sheets, and are
accountable for their own business plans and financial MANAGEMENT
SUPERVISORY BOARD
CHIEF EXECUTIVE OFFICER
performance.
NGUYEN VIET QUANG
The corporate divisions in Vingroup JSC, the parent
company, provide support, supervision, and operational
direction 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
CORPORATE OFFICE
business units.
HOSPITALITY
PROPETY CONSUMER RETAIL HEALTHCARE EDUCATION AGRICULTURE INDUSTRY OTHER FINANCE DIVISION
AND ENTERTAINMENT
VINECO AGRICULTURAL
VINHOMES PROPERTY VINCOMMERCE GENERAL VINMEC INTERNATIONAL INVESMENT DEVELOPMENT VINFAST MANUFACTURING VINCOM CONSTRUCTION
VINPEARL JSC VINSCHOOL LLC COMMUNICATION
DEVELOPMENT COMPANIES COMMERCIAL SERVICES JSC GENERAL HOSPITAL JSC AND PRODUCTION LLC AND TRADING LLC MANAGEMENT COMPANY
DIVISION
VINPEARL VINMART SUPERMARKETS VINACADEMY EDUCATION

VINCOM RETAIL JSC PROJECT DEVELOPMENT VINMART+ MINI-MARTS AND VINMEC HOSPITALS VINCOM SECURITY LLC LEGAL AND COMPLIANCE
AND TRAINING LLC
COMPANIES CONVENIENCE STORES DIVISION
VINPRO ELECTRONICS
VINCOM RETAIL VINMEC CLINICS EXTERNAL FINANCE
VINPEARL LAND AND APPLIANCES STORES
NORTH VIETNAM LLC DIVISION
VINCOM RETAIL RISK MANAGEMENT

SOUTH VIETNAM LLC ADAYROI E-COMMERCE
DIVISION
INTERNAL AUDIT DIVISION
INFOMATION
TECHNOLOGY DIVISION
SECURITY AND FIRE

PREVENTION DIVISION
HUMAN RESOURCES
DIVISION

Chapter 2 CHAPTER 2
BOARD OF DIRECTORS
MS. PHAM THU HUONG MR. JOSEPH RAYMOND GAGNON
3 7
The Board of Directors (the “Board”) consists of nine Vice Chairwoman Board Member
members. The Board is headed by its Chairman and Ms. Pham Thu Huong was elected to the Board in 2011. Mr. Gagnon was elected to the Board in 2013. He is
includes three independent members. She is a graduate of the National University of Kiev currently a Managing Director at Warburg Pincus Asia
(Ukraine) with a B.S. degree in International Law. and leads its real estate investment business in North
Asia. He is also a member of the Board of Directors of
NAME POSITION Vincom Retail, a subsidiary of Vingroup. He was a Director
MR. LE KHAC HIEP
Mr. Pham Nhat Vuong Chairman
4 at Warburg Pincus Asia in Hong Kong from 2008 to 2011
and a Director of Business Development at GE Capital in
Vice Chairman and Independent Board Member
Tokyo, Japan from 2003 to 2005. Mr. Gagnon graduated
Mr. Le Khac Hiep was elected to the Board in 2006. He
Ms. Pham Thuy Hang Vice Chairwoman from Wake Forest University, USA.
was also Chairman of the Group from 2006 to 2011. He
was appointed an Independent Member of the Board in
Ms. Pham Thu Huong Vice Chairwoman MR. MARC VILLIERS TOWNSEND
2014. From 1994 to 2004, he headed Prudential Real
Estate’s Vietnam Representative Office before becoming 8
Mr. Le Khac Hiep Vice Chairman and Independent Board Member Independent Board Member
its Deputy General Director for External Relations.
Mr. Townsend was elected as an Independent Board
Previously, he was a researcher at the Institute of Physics
Ms. Nguyen Dieu Linh Vice Chairwoman and Authorized Spokeperson Member in 2013. He has worked in Asia in the real
in the Vietnam Academy of Science and Technology
estate sector since 1988. He was the Managing Director
from 1984 to 1994. Mr. Le Khac Hiep graduated from
Mr. Nguyen Viet Quang Board Member and Chief Executive Officer at CBRE Vietnam from 2003 to 2017, the General
the National University of Kharkiv (Ukraine) with a
Director of Regus in Southeast Asia from 1999 to 2002
Distinguished B.S. degree in Physics. Mr. Le Khac Hiep is
Mr. Joseph Raymond Gagnon Board Member and Vice Director of Sales & Marketing at Rockwell
responsible for Vingroup’s sustainability projects.
Land Corp. in Manila from 1997 to 1999. Mr. Townsend
Mr. Marc Villlers Townsend Independent Board Member attended the University of Montpellier (France) and
MS. NGUYEN DIEU LINH
5 received a B.A degree in Accounting Studies from the
Mr. Ling Chung Yee Roy Independent Board Member Vice Chairwoman and Authorized Spokesperson University of Exeter (UK). He also completed the Program
in Management Development at the Asian Institute of
The Board is the Group’s policy-making body, with the authority to make decisions and to exercise all rights and responsibilities Ms. Nguyen Dieu Linh has been a member of the Board Management in Manila in 1999. Marc started his career in
that do not fall under the jurisdiction of the General Meeting of Shareholders (the “GMS”). The Board is also responsible for since 2008 and Deputy CEO of the Group from 2005 to the Royal Marines. Marc is Chairman of CBRE Cambodia.
implementing the decisions of the GMS. August 2016. Prior to joining Vingroup, she was a legal
expert with Ngo Migueres & Partners in Hanoi from 1996 MR. LING CHUNG YEE ROY
to 1999. She graduated from Hanoi University with a 9
Independent Board Member
B.A. degree in English and French. She also received a
Professor Ling was elected to the Board in 2011. He is
BOARD MEMBERS B.A. in Law from the University of Social Sciences and
currently a Managing Director at RL Capital Management.
Humanities
Concurrently, he also serves as an Independent Board
MR. PHAM NHAT VUONG MS. PHAM THUY HANG Director at several listed companies and non-profit
MR. NGUYEN VIET QUANG
1 2 organizations across Asia, as an Adjunct Professor
Chairman Vice Chairwoman 6 in Finance at the EDHEC Business School, and as a
Board Member and Chief Executive Officer
Mr. Pham Nhat Vuong was elected to the Board in 2002 Ms. Pham Thuy Hang was elected to the Board in 2005 Consultant for RHT Strategic Advisory and RHT Academy.
Mr. Nguyen Viet Quang was elected to the Board
and elected Chairman in 2011. He has a long track record and elected Vice Chairwoman in 2010. Ms. Pham Thuy Prior to RL Capital, Prof. Ling held senior investment
since 2017. Prior to joining Vingroup in 2010, he was
as an entrepreneur both inside and outside Vietnam. He Hang is a graduate of Hanoi University with a B.A. degree banking positions with JPMorgan, Lehman Brothers,
Board Member and Head of the Supervisory Board of
established the Group’s core businesses, starting with in Russian Linguistics and Literature. Goldman Sachs and Salomon Smith Barney. Prof. Ling
Y Cao Company Limited during the period from 1996
its two initial brands, Vincom and Vinpearl. In 2012, Mr. was a former Board Director of the CFA Society of Japan.
to 2009. Mr. Nguyen Viet Quang graduated from the
Vuong was honored as the only billionaire in Vietnam by He was honored as the Real Estate Executive of the Year
National Economics University with a B.A in Business
Forbes and retained the position as the billionaire with by Singapore Business Review in 2016, and as one of
Administration.
the highest net worth in Vietnam for four consecutive 20 Rising Stars in Real Estate by Institutional Investor in
years from 2013 to 2016. 2008. Prof. Ling graduated from INSEAD with a Global
EMBA and from the National University of Singapore with
a Bachelors degree in Business Administration.

Chapter 2 CHAPTER 2
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.
MR. PHAM VAN KHUONG MS. NGUYEN THI DIU

3 4
Deputy CEO Deputy CEO
MEMBERS Mr. Pham Van Khuong was appointed Deputy CEO in Ms. Nguyen Thi Diu was appointed Deputy CEO in 2014.
2007. He has nearly 30 years of experience in construction She served as a Director of Investment Banking Vietnam
and industrial technology. From 1996 to 2003, he was the at UBS from 2013 to 2014. From 2008 to 2013, she was
General Director of the Construction and Water Resources the Chairwoman and CEO of AFH Finance and Investment
Technology Company in the Ministry of Construction. He Consultancy JSC. From 1996 to 2008, she was the
started his career in 1982 as a design engineer at Vietnam Chief Representative and Head of Investment Banking
Water, Sanitation, and Environment JSC. He received a B.S. at JPMorgan Vietnam. She received her MBA degree in
degree in Engineering from Hanoi Architecture University. Finance from the University of Hawaii.
MR. NGUYEN VIET QUANG MS. MAI HUONG NOI

1 2
Board Member and Chief Executive Officer Deputy CEO
Further details can be found in Chapter 2: About Vingroup – Ms. Mai Huong Noi has been a Board Member since 2008
Board of Directors – Page 39. and Deputy CEO since 2012. She was also CEO of the
Group from 2006 to 2012. Prior to joining Vingroup, she
was Deputy Director of the Customer Service Division at
Hanoi Post Office from 2004 to 2006. Ms. Mai Huong Noi
received a B.S degree in Economics and Banking from the
National Economics University.
MS. DUONG THI HOAN MS. NGUYEN THI THU HIEN

5 6
Deputy CEO Chief Accountant
Prior to being appointed Deputy CEO in August 2016, Ms. Nguyen Thi Thu Hien has been Vingroup’s Chief
Ms. Hoan held the position of the Head of Vingroup Accountant since 2008. She was the Chief Financial
Communication Division from 2007 to 2016. She was the Officer of Ha Viet Investment JSC from 2005 to 2008 and
General Director of Hung Viet Company from 2005 to its Chief Accountant from 2003 to 2005. She graduated
2007. Ms. Hoan received a B.S from Vietnam University from Hanoi University of Finance and Accounting with
of Commerce and completed her Joint Master of Business B.A. degree in English from the University of Languages
and Administration degree between Hanoi National and Foreign Studies. She is also a member of ACCA.
University and Benedictine University of Illinois, USA.

Chapter 2 CHAPTER 2
THE SUPERVISORY BOARD CORPORATE STRATEGY

The Supervisory Board is elected by the GMS. The serves for a five-year term. The responsibility of the
Supervisory Board has three members including two Supervisory Board is to inspect the validity and legality of
independent members. Each Supervisory Board member the Group’s business activities and financial reports.
RESULTS OF PHASE I OF VINGROUP’S
CORPORATE STRATEGY FOR THE
NAME POSITION PERIOD FROM 2016 TO 2020
Mr. Nguyen The Anh Head Vingroup has successfully implemented its key strategies
for Phase I. These strategies are as follows:
Mr. Dinh Ngoc Lan Member
• Maintain its leading position in the property sector,
maximize existing strength in project completion and
Ms. Do Thi Hong Van Independent Member delivery, and product quality, providing the best living
environment and integrated ecosystem, including
hospitals, schools, retails, playgrounds, sport facilities
and other amenities. Vingroup continues to invest
SUPERVISORY BOARD in premium large-scale mixed-use projects in prime
MEMBERS locations
• Expand and diversify products and businesses, maintain
MR. NGUYEN THE ANH MS. DO THI HONG VAN and improve sales, leasing and property management
1 3 capacity and quality
Independent Board Member
Head of the Supervisory Board
• Improve Vingroup’s footprint in cities and provinces
Ms. Do Thi Hong Van was elected as an Independent
Mr. Nguyen The Anh was elected to the Supervisory throughout the country by expanding the Company’s
Member of the Supervisory Board in 2011. She is
Board in 2007. Prior to joining the Supervisory Board, he ecosystem across sectors, especially in property, retail,
currently the Chief Accountant at Nghe An Sugar Pte.
was a Deputy Head of the Corporate Office of the Joint hospitality and entertainment
Ltd. (previously known as Tate & Lyle Sugar Nghe An Co.
Stock Commercial Bank for Foreign Trade of Vietnam • Upgrade product and service quality to five-star
Ltd.) and was a Financial Controller with Shell Vietnam
(Vietcombank) from 2005 to 2007 and Assistant to the standards
Ltd. from 1998 to 2007. Ms. Do Thi Hong Van holds
General Director from 2001 to 2005. From 1997 to 2000,
a B.S. degree in Economics and Accounting and is a • Build strategic partnerships with leading international
he worked at Vietnam Financial Leasing Company and
senior member of ACCA. She is also a licensed auditor organizations and companies to raise Vingroup’s
Vietcombank’s Secretariat Office from 1995 to 1997.
recognized by the Vietnam Association of Certified Public international reputation and capabilities
He received a B.S. degree in Economics and a Master
Accountants (VACPA).
of Political Economics from the National University of • Promote governance and management improvements
Vietnam. using the Five Transformational Principles of “Elevate
– Standardize – Simplify – Automate – Share”
MR. DINH NGOC LAN
2 In the property sector, Vinhomes delivered nearly 14,000
Member units during 2017 and placed in operation across the
Mr. Dinh Ngoc Lan was elected to the Supervisory Board country 12 real estate projects with more than 31,000
in 2009. Previously, he worked at the State Audit Office apartments and villas. Today Vinhomes is ranked fourth
of Vietnam as a Regional Office Deputy Head of Business among the fifty most valuable brands in Vietnam by Brand
Auditing from 2007 to 2008 and an auditor from 1996 Finance Magazine and is the only real estate developer on
to 2007. Mr. Dinh Ngoc Lan received a B.S. degree in this list.
Economics from Vietnam University of Commerce. Vincom Retail was successfully listed on the Ho Chi Minh
City Stock Exchange. After this listing, some investors were
able to transfer shares with a value of USD 741 million, VINPEARL CAN THO HOTEL

Chapter 2 CHAPTER 2
setting a record for the largest equity transaction on the In September 2016, Vingroup transformed Vinmec and
Exchange, and bringing the market value of Vincom Retail Vinschool into social enterprises to improve the quality
to USD 3.4 billion. of medical and social services. Vinmec is now the first
and only hospital system in Vietnam to have received
During 2017, Vincom Retail continued to expand its scale
two recognized JCI certificates. The Vinschool education
and market share by opening 15 new shopping malls,
system continues to invest in facilities and curriculum to
bringing its total to 46 malls in 24 provinces nationwide. VINHOMES GREEN BAY
improve the quality of their educational programs.
Vinpearl and Vinpearl Land continue to hold the market-
In March of 2018, Vingroup announced the formation of
leading position in the hospitality industry in Vietnam.
VinUni International University, marking the Company’s
These brands are now the first choice for domestic and
foreign tourists. With the opening of seven hotels and
official entry into the field of higher education to contribute CORPORATE STRATEGY FOR THE 2016 TO 2020 PERIOD
high-quality human resources to the nation.
one golf course on 29 April 2017, Vinpearl increased BUSINESS STRATEGY
its capacity to more than 10,000 rooms. Vinpearl Land In 2017, Vingroup announced its entry into the automobile
Entertainment welcomed over 4.3 million visitors during and motorcycle manufacturing industry under the VinFast Over the coming five-year period, Vingroup will continue offices and service partments to capture the growing
2017 and recorded an increase in revenue of 42% over brand, signaling the Group’s entrance into the Industry to expand the scale and scope of each vertical industry demand for an integrated “live-work-play” environment
2016. business sector. Vingroup thus fulfills a dream of a group in its ecosystem, turning each of Vingroup’s from the rising middle-income populations in Vietnam.
Vietnamese automotive brand. subsidiaries into a leader in product quality. The The investment in commercial properties also helps
On January 15, 2018, Vinpearl announced plans to
overhaul its hospitality system to match international five- In the area of corporate governance, Vingroup continues Company’s business segments have been carefully Vinhomes secure a recurring stream of income to
star standards. With this breakthrough in quality, Vinpearl to evolve its governance model from top-down, centralized examined to create an integrated set of products and supplement existing residential cash flows.
will introduce a new set of high-end services to achieve its management to a more decentralized model built around services that maintain Vingroup’s competitive advantage
goal of “Vietnam Hotels – World Standards.” subsidiaries as business entities and independent P&Ls and market leadership.
while the parent company, Vingroup JSC, plays a strategic

Vingroup’s retail brands – VinMart, VinMart+, VinPro, This governance strategy requires the following
role in evaluating and administering each subsidiary.
and Adayroi – have improved materially over 2016 both developments in each business segment:
This new model has grown out of transformational
in terms of scale and quality, with more than 82 million
research from such leading consulting firms as McKinsey, Property
purchases in 2017. These brands invested heavily
Pricewaterhouse Coopers, and Ernst & Young, but including
improving brand awareness and image, displays, familiarity
internal modifications and adjustments. This research has In the Vingroup ecosystem, property continues to play a
and the shopping experience. VinMart and VinMart+ were
created numerous efforts to find the governance model strategic role. During 2018, the VinCity product line will
chosen by customers as their top two retail brands. The
best suited to diversified businesses like Vingroup. A significantly expand the Vinhomes property portfolio. Four
addition of VinEco agricultural products to these stores
robust governance model will be an important foundation major VinCity projects will be launched simultaneously
have helped to build customer trust and are among the
The Company’s goal is to implement the governance in Hanoi, Ho Chi Minh City, and two other provinces.
most requested products at VinMart supermarkets and
model best suited to support Vingroup’s next phase of This launch will bring Vingroup’s powerful and unique
VinMart+ mini-marts and convenience stores.
growth and development. integrated ecosystem to the middle- and affordable
In social infrastructure services, Vingroup has always segments of the property market.
been determined to develop high-quality health care,
Together with residential properties, Vinhomes will
education, and agricultural offerings to deliver on its
continue to invest in commercial projects, including
mission “To create a better life for the Vietnamese people.”

Chapter 2 CHAPTER 2
Retail 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.
and high-quality daily neccesities for a large proportion ADMINISTRATIVE AND HUMAN The Group’s internal audit and risk management functions
in our society   RESOURCE DEVELOPMENT will be active at both the Corporate Office and P&L levels
in order to ensure sufficient specialization and close
• VinEco’s safe and clean vegetables, semi-processed Vingroup will continue to improve the profit & loss
monitoring of business activities.
foods, and VinMart’s ready-to-cook ingredients will governance model in order to promote greater
be VinMart’s key strategy. At the same me, VinMart decentralization. P&Ls will operate with support and Vingroup will devote greater resources to cultivate a strong
will accelerate its partnership and assistance program supervision from the Corporate Office. This support enables corporate culture, building on the Group’s existing values.
o ered to high-quality Vietnamese brands in order to Vingroup’s ecosystem to continue growing. The Group’s Management believes that the right strategy, combined
fast-track their access to customers. internal audit and risk management functions will be active with efforts by every member, will allow the Group to
at both the Corporate Office and P&L levels in order to maintain its market-leading position while helping the entire
Social Infrastructure Services ensure sufficient specialization and close monitoring of market to develop.
Hospitality and Entertainment business activities.
Vingroup will develop new social infrastructure facilities
In this 5-year period, the group intends to evolve its
• Vinpearl operates a chain of hotels, villas, and at all of our residential projects. Our comprehensive
governance and management structure through the Five
condotels at the most popular tourist destinations investment will include equipment, facilities, expertise, and
Transformational Principles of
in Vietnam. Going forward, the Group will enhance human resources. In addition, Vingroup will collaborate
service quality to protect existing revenues and to with well-known global organizations in the fields of “Elevate – Standardize – Simplify –
attract new customers healthcare, education, and agriculture in order to deliver Automate – Share”
best-in-class services to the Vietnamese people. Vingroup uses “Elevate” to emphasize the importance of
• Vinpearl will penetrate key urban markets with the
human resources, particularly leaders and managers at
new Vinpearl City Hotel brand. These international-
standard hotels will be located in prime locations at Industrials the Group’s businesses. We promote the best managers
who will form the next generation of leaders. Technical
socio-economic hubs throughout Vietnam, which are
Vingroup will invest in a system of synchronous production and management training, in addition to challenging
expected to benefit from the nation’s rapid urbanization
processes, apply the most modern technologies in the opportunities, will be offered equally to employees who
• Vinpearl Land will continue to upgrade its recreation world to production, thus helping consumers to own world- show promise.
equipment and introduce unique entertainment class cars and eco-friendly scooter at reasonable prices.
Vingroup will regulate existing procedures and deliverable
offerings to deliver new experiences that have not This will meet the increasing demand from consumers in
standards, in order to create a lean and more effective
previously been available domestically. the country, and enable export to foreign markets.
organizational structure that will improve productivity.
Consumer Retail After processes and deliverables are standardized, over the
time, the Group will be able to automate many procedures
• VinCommerce will continue to expand the scale and using advanced technology to deliver performance
footprint of its consumer retail network: VinMart, breakthroughs. Last, subsidiaries and P&Ls will cooperate
VinMart+, VinPro. Again, product and service quality with one another closely to share resources, opportunities
will continue to be the focus in order to provide safe and operations to the greatest possible extent to maximize
our efficiency and capacity.

VINGROUP
ANNUAL
REPORT
2017
GO GLOBAL
VINPEARL CUA HOI RESORT & VILLAS

CHAPTER 3
MANAGEMENT REPORT ON 2017 BUSINESS PERFORMANCE AND 2018 PLAN OF ACTION
2017 ECONOMY AND 2018

MACROECONOMIC OUTLOOK WORLD ECONOMY
GROW GDP VIETNAM
3.6% 6.81%
2017 ECONOMIC
03
CHAPTER CONDITIONS
VIETNAM ECONOMY MAINTAINS BASIC INDUSTRIES CONTINUED
13 MILLION WHICH REPRESENTS A TOP
6/10
A HIGH GROWTH RATE TO GROW DURING 2017 30% GROWTH RATE
INTERNATIONAL
During 2017 both the world and the Vietnamese With most sectors growing steadily, creating more jobs VISITORS TOTAL REVENUE FROM THE
MANAGEMENT TOURISM INDUSTRY WAS

economies maintained high growth rates. According to data and employment income, Vietnam’s economic growth rate
from the National Supervisory Commission of Vietnam, The ranked highest in the region and very high in the world.
73 MILLION APPROXIMATELY VND FASTEST-GROWING
REPORT ON
world economy grew at an annual rate of 3.6% in 2017, an
DOMESTIC
510 TRILLION TOURIST DESTINATIONS
Real estate, hospitality, and retail markets all benefited
improvement over 2016, thanks to a strong recovery for
from the economy’s growth trends. According to CBRE,
key global economies. VISITORS
2017 BUSINESS The United States and the European Union both enjoyed
there were 59,193 apartment transactions in Ho Chi
Minh City and Hanoi during 2017. The average price of
PERFORMANCE low rates of unemployment. Consumption spending and

investment activities both increased significantly in the
properties sold in the mid- and high-end segments of the
market reached the highest level of the past three years. VIETNAM TOTAL REVENUE WHICH GREW
IN THE CONSUMER RETAIL
AND 2018 PLAN U.S., while trade in Europe grew steadily during the year.
The tourism sector of Vietnam performed strongly during
INDUSTRY WAS VND
2,900 10.9%
Japan’s economy also performed positively during the year
2017, with nearly 13 million international arrivals, a
OF ACTION in terms of manufacturing, consumption, and exports. The

Bank of Japan continued to maintain a stimulus to fuel an
growth rate of approximately 30% over the prior year.
Domestic tourism also rose to a total of 73 million visitors.
economy with very low inflation.
Total revenue from tourism was estimated at VND 510
Vietnam also experienced an excellent year for economic trillion. A report by the UN World Tourism Organization
development. listed Vietnam in sixth place among the ten fastest growth TRILLION
tourism destinations world-wide, and in first place within
The General Statistics Office of Vietnam (GSO) reported
the Asia Pacific Region with a year-over-year growth rate
that economic growth in Vietnam was 6.8%, exceeding
of 31.2%.
the target of 6.7% set by the Government. This strong
performance was due to improvement across all sectors of The consumer retail sector of the economy has long been RETAIL SALES REVENUE AND RETAIL SALES GROWTH RATE FOR 19912017
2017 Economy and 2018 50 the national economy. viewed by analysts as an area with high growth potential.
Macroeconomic outlook According to the GSO, Vietnam’s total consumer retail 3,5 80,0%
The GSO reported that the agriculture, fishery, and forestry
revenue in 2017 was VND 2.9 trillion or USD 130 billion,
Vingroup Operations and 54 sector of the economy have recovered significantly with 70,0%
an increase of 10.9% over 2016. Forbes Vietnam reported 3,0
Financial Performance a growth rate of 2.9%, an improvement over the 2016
that consumer retail revenue has been growing steadily 60,0%
in 2017 growth rate of 1.4%. This sector contributed an additional 2,5
for more than 25 years. Vietnamese retail companies
0.44 percentage points of growth to the overall economy.
Blueprint for 2018 took advantage of this strong growth to expand store 50,0%
66 The industrial and construction sector of the economy grew 2,0
coverage across the nation. At the same time, many
at an annual rate of 8.0%, contributing 2.77 percentage 40,0%
well-known international brands chose Vietnam as an 1,5
points to overall economic growth. Lastly, the services
important destination. Among these international brands, 30,0%
sector growth rate was 7.4%, contributing 2.87 percentage
H&M, Zara, and Seven-Eleven entered the Vietnam 1,0
points to overall growth. 20,0%
market during the past two years. Their arrival served to
It is notable that the industrial and manufacturing sector make retail shopping even more attractive to Vietnamese 0,5 10,0%
has had the highest growth rate of all sectors during the consumers by increasing the range of product choices.
past year, despite a significant slowdown in the mining 0,0 0,0%
category. This performance reflects a shift to clean, high-
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
tech industries producing high-value products and services.
Source: Forbes
VINGROUP - ANNUAL REPORT 2017 51
CHAPTER 3 CHAPTER 3
MANAGEMENT REPORT ON 2017 BUSINESS PERFORMANCE AND 2018 PLAN OF ACTION MANAGEMENT REPORT ON 2017 BUSINESS PERFORMANCE AND 2018 PLAN OF ACTION
MACROECONOMIC OUTLOOK FOR 2018

ECONOMIC STABILITY growth and the growth of the middle class. CBRE has
forecasted a shift in the market to mid-end and affordable
IMPROVES OPPORTUNITY FOR housing offerings, in addition to satellite cities near Hanoi
SUSTAINABLE DEVELOPMENT and Ho Chi Minh City. These areas benefit from the
expectation of significant investment in infrastructure and
According to the World Bank’s 2018 Report on Global public transport facilities.
Economic Prospects, the world economy is projected
In June of 2017, the National Assembly of Vietnam
to grow at a 3.1% annual rate. Overall economic growth
passed the Law on Tourism, effective January 1, 2018.
is projected to increase as a result of a strong recovery
This law supports the development of tourism with the
in investment s, manufacturing, and trade. Commodity
expectation that Vietnam will receive 15 to 17 million
exporters will benefit from increasing prices. The growth
international visitors and 78 million domestic visitors with
rates of developed economies will decline to 2.2% in 2018
total projected revenue of VND 620 trillion in 2018. The
as central banks reduce post-crisis stimulus levels and
hospitality sector of the economy is forecasted to see
global investment levels slow. Developing economies and
continued growth and attractiveness to investors, not
emerging markets, on the other hand, will grow at a faster
only in major tourist destinations such as Phu Quoc and
rate of 4.5%, thanks to the growth of commodity exporters.
Nha Trang, but also in other destinations such as Cua Lo
The growth rate of the East Asian – Asia Pacific Region is
in Nghe An Province and Hoi An in Quang Nam Province.
forecasted to decline to 6.2% in 2018 from 6.4% in 2017.
As living standards improve, the retail industry will
Vietnam’s National Financial Supervisory Commission has
THE NATIONAL FINANCIAL SUPERVISORY COMMISSION OF VIETNAM projected GDP growth in the range of 6.5% to 6.8%, with
continue to benefit from rising per capita income.
FORECASTED GDP GROWTH OF VIETNAM TO REACH 6.5% considered the optimal growth rate for economic At a Hanoi seminar on the topic of modern retailing,
6.5% - 6.8%
expansion without inflation pressure. Inflation in 2018 is held in December of 2017, experts noted two prominent
forecasted at the same level as 2017, or less than 4%. trends in consumer behavior during 2017: non-cash and
digital payments. During 2018, competition is expected to
GOLDEN DEMOGRAPHIC increase as many retailers implement customer-focused
STRUCTURE AND strategies. Although foreign-owned retailers are expected
INFRASTRUCTURE INVESTMENT to compete vigorously for market share, Vietnamese
retailers are also expected to invest aggressively to
VIETNAM URBAN EQUIVALENT THE PROPORTION OF THE CONSIDERED KEYS TO improve product and service quality. Domestic retailers
POPULATION IN THE AGE OF ECONOMIC DEVELOPMENT
POPULATION IS DEMAND OF 25-44 ACCOUNTS FOR are also expected to integrate their online and retail
800,000
48.7%
FORECASTED TO According to forecasts by JLL, Vietnam’s middle class will
operations to strengthen their competitive advantage.
GROW AT A RATE OF account for 83.1% of all households by 2020, up from

APARTMENT
3.5% /PER ANNUM
79.9% in 2017. From 2018 to 2025, the urban population of
UNITS A YEAR OF THE VIETNAM POPULATION Vietnam is projected to grow at an annual rate of 3.5%, the
fastest growth expected in Southeast Asia. This urban shift
is expected to result in demand for 800,000 new apartment
units each year. With 48.7% of the population in the 25- to
VIETNAM IS EXPECTED TO WELCOME 44-year-old age cohort, Vietnam ranks highest in Southeast
AROUND Asia in this “golden age” segment of the population. All
of these factors suggest that Vietnam will be a leader
15 - 17 A TOTAL REVENUE OF in housing investment and growth prospects, according

MILLION INTERNATIONAL
620
to the 2018 Asia Pacific Real Estate Outlook published
VISITORS TRILLION by JLL. Although Vietnam’s economy is the sixth largest
VND among ASEAN member nations (after Singapore, Malaysia,
75 - 80 MILLION DOMESTIC
VISITORS IN 2018
Philippines, Indonesia, and Thailand), it is projected to
experience the fastest GDP growth in ASEAN in 2018.
Therefore, the real estate market is projected to maintain

strong growth in 2018 on the basis of overall economic
Source: Vietnam’s National Financial Supervisory Commission, CBRE, JLL, Vietnam National Administration of Tourism

CHAPTER 3 CHAPTER 3
VINGROUP OPERATIONS AND

FINANCIAL PERFORMANCE IN 2017
BUSINESS
PERFORMANCE
14,000
apartments, villas, and
shophouses handed over during
2017
share of the residential property
15% market in Hanoi and Ho Chi

Minh City during the three-year
period from 2015 to 2017
46 retail malls under operation
Property
Vinhomes’ strategy is to develop residential properties

under the Vinhomes and VinCity brands.
VINHOMES SKYLAKE
Vinhomes projects focus on the high-end segment of the

residential property markets in Hanoi, Ho Chi Minh City,
and other properties, while VinCity projects focus on the
Retail Malls offering of quality products meet the needs of a wide
mid-end and affordable segments in Hanoi, Ho Chi Minh
range of Vietnamese consumers. Progress of Development Projects
City and their satellite cities. VinCity’s expansion plan has
Vincom Retail develops, owns, and operates Vietnam’s Recently the Group introduced the Vincom+ brand, which
an important role in maintaining our Group’s leadership
largest and fastest-growing network of shopping malls. At Vingroup’s competitive advantage lies in its
in real estate development. At the same time, VinCity has been launched in eight provinces with nine malls. At
the end of 2017, Vincom Retail managed 46 malls in 24 speed of development and project deliveries to
benefits from the Group’s sizeable land bank and holistic the same time, malls across the three other formats are
provinces throughout the country with total retail gross customers. Projects undertaken by the Group in
ecosystem of quality infrastructure services. In 2017, our still being developed, extending Vincom Retail’s expansion
floor area of 1.2 million square meters. 2017 will continue to be handed over on time
project development teams and staff have improved the trajectory.
or ahead of schedule, in line with our past track
efficiency of their permitting procedures to speed up the On November 6, 2017, Vincom Retail share (under the
Vincom Retail malls have been successful in attracting the record.
launch of new projects. With a market share of 15% in ticker VRE) was listed on the Ho Chi Minh City Stock
world’s most popular brands: Nike, Adidas, The Gap, Old
Hanoi and Ho Chi Minh City, Vinhomes is strengthening Among the projects completed and delivered
Navy, McDonalds, KFC, CGV, Lotte, California Fitness, and Exchange and closed the first trading day at VND 40,550
its leadership by offering 15 new projects and delivering during 2017 were Vinhomes Times City – Park Hill,
Playtime. per share. This listing brought the market capitalization
nearly 14,000 apartment, villas, beach villas, and Vinhomes Central Park, Vinhomes The Harmony,
of Vincom Retail to VND 77 trillion. Vincom Retail joined
shophouses to homebuyers. Many leading retail brands are choosing Vincom as the and several beach villa projects.
the ranks of the largest listed companies after the first day
site of their first stores in Vietnam. These retailers include
At the end of 2017, Vinhomes managed 12 real estate of trading. VRE shares received significant attention from Other projects are being developed by Vingroup
Zara, H&M, Mango, Massimo Duti, and Pull & Bear. These
projects with more than 31,000 apartments, villas and institutional investors, both domestic and foreign, with an and leading contractors with the highest level of
brands appeal to Vietnam’s fast-growing middle class, the
shophouses, bringing the joy of new homes to tens of average daily trading volume of VND hundreds of billions. quality and attention to deadlines. These projects
group in which consumer spending is increasing at the
thousands of families. include Vinhomes Golden River, Vinhomes Green
most rapid rate.
Bay, and Vinhomes Metropolis.
To accommodate this rapid growth, Vinhomes opened
Vincom malls are also home to proprietary Vingroup
three large real estate trading floors with nearly 30,000
brands such as VinMart and VinPro. These brands’ diverse
square meters in Hanoi and Ho Chi Minh City.

CHAPTER 3 CHAPTER 3
CONSUMER RETAIL
HOSPITALITY AND
ENTERTAINMENT
~1.200 retail outlets
2.1 million hotel guest nights sold

>82 million customer
purchases
>30% over the number of guest

nights in 2016
66% increase in the number
of purchases at VinPro
over 2016
64% foreign visitors Business Performance
The Consumer Retail business is central to Vingroup’s

strategy to derive a greater proportion of the Group’s
Business Performance revenue from businesses with stable recurring revenue
and profit. In 2017, VinCommerce continued to execute
Vinpearl is one of the Group’s first two lines of business. on its long term goal and strategy, with an expansion of its
Today it is the largest resort operator in Vietnam, with store count to 67 VinMart supermarkets, 1,055 VinMart+
more than 10,000 rooms in 17 resorts across the nation. In convenience stores, 36 VinPro electronics and appliances
September of 2017, the Group officially merged Vinpearl stores, and increased transactions through its e-commerce
Land into Vinpearl Resorts, making Vinpearl Resorts the site, adayroi.com.
largest hospitality and entertainment operator in Vietnam.
On April 29, 2017, Vinpearl simultaneously opened eight VinMart Supermarkets and VinMart+ Mini-
new properties, bringing its room count from 6,000 to Marts and Convenience Stores
over 10,000 rooms in seven hotels and a golf course. This
With the goal of becoming a reliable source of quality
is a record on the number of properties opened on a single VINPEARL LAND NHA TRANG products for consumers, since its introduction, VinMart
day in the Group so far. These newly launched properties
and VinMart+ have grown rapidly and become one
are:
of the retail chains that contributed positively to the
Vinpearl Da Nang Ocean Resort and Villas, Vinpearl Phu development of modern retail in Vietnam. As of February
Quoc Ocean Resort and Villas, Vinpearl Phu Quoc Island Vinpearl has adopted an “Elevate” strategy in human 2018, the system has 67 VinMart supermarkets and 1,055
Resort and Villas, Vinpearl Nha Trang Long Beach Villas, VinMart+ mini-marts and convenience stores nationwide,
resources management and governance to improve Progress of Development Projects
Vinpearl Hoi An Resort and Villas, Vinpearl Cua Hoi Resort efficiency and maintain its leadership position as amidst which increased by 12 supermarkets and 212 stores
and Villas, Vinpearl Ha Tinh Ocean Villas, Vinpearl Ha Tinh increasing competition from other operators of resort During 2017, Vinpearl launched large integrated respectively over the same period last year.
Hotel properties. The Elevate strategy focuses on human hospitality projects, beach villas, and city hotels The VinMart and VinMart+ are the only supermarket,
Vinpearl’s business performance set record results in resources training to build the next generation of young, in Nghe An, Ha Tinh, Da Nang, Hoi An, Nha Trang, mini-marts and convenience stores that has nationwide
2017. Vietnamese visitors accounted for nearly 36% of all talented, and dynamic leaders. During 2017, Vinpearl and Phu Quoc. coverage. Not only in Hanoi, Ho Chi Minh City, and Da
guest nights. Among the 64% of all guest night stays by implemented ten major information technology projects Nang, VinMart is also actively spreading to smaller cities
The goal of Vinpearl’s expansion is to increase
foreign visitors, the three largest sources are China, Korea, and 19 projects to overhaul the quality of customer through Vincom Plaza and Vincom+. During 2017, VinMart
brand coverage in important tourist destinations,
and Russia. The total number of guest night stays was 2.1 service. These projects are aimed at reaching international and VinMart+ served over 27 million and nearly 54 million
large cities and, eventually, throughout the nation.
million, an increase of 30% over 2016. Our Nha Trang five-star service standards in all Vinpearl properties. orders respectively, which is up 25% and 66% respectively
Vinpearl also aims to conduct advanced surveys,
properties recorded the most guest night stays, followed research and field studies in order to add facilities over 2016.
by Phu Quoc, and Da Nang resorts. and services to its resorts that will improve The synergy from Vingroup ecosystem is the key selling
Vinpearl Land also had a record year of operations, with customer satisfaction in Vinpearl resorts, Vinpearl point where VinEco-branded clean and fresh vegetalbes
revenue increasing by 42% over 2016. Our network of Land, Safari Golf, and Spas. Vinpearl’s suite of has become the highlight of VinMart and VinMart+
amusement parks and safari had more than 4.3 million offerings include amusement parks, safaris, golf system. Products under VinMart Cook brand are gradually
customer visits. Vinpearl Land properties in Nha Trang and fine dining, whose improvements will help welcomed by housewives and office workers, enriching
hosted nearly 2.5 million customer visits, an increase of to strengthen its position as Vietnam’s vacation and enhancing the meal quality for Vietnamese families. In
31% over 2016, accounting for more than half of the total leader.
number of visits to Vinpearl Land properties.
CHAPTER 3 CHAPTER 3
SOCIAL INFRASTRUCTURE healthcare infrastructure and human resources in

accordance with international standards.
SERVICES
On December 18, 2017, Vinmec signed a five-year
cooperation agreement (2017 to 2022) with the Hanoi
HEALTHCARE University of Pharmacy to improve the technical skills
of Vinmec’s staff and to strengthen the quality of young
1,500
physicians.
hospital beds
EDUCATION
1.9
VND
trillion revenue
~19,000 students
70% increase in revenue
45%
over 2016 increase in number
of student over 2016
Business Performance
17
The Cardiology Department has the fastest revenue
On September 27, 2017, Vinmec Da Nang International growth, 416% over 2016, followed by the Oncology campuses
Hospital began operating as the sixth hospital in the Department with revenue growth of 105%. Outpatient
2017, VinCommerce built 5 new testing rooms, increasing
Vinmec network. With a total investment of over VND and emergency care revenues increased by 115% and
the number of testing facilities to 25 units nationwide. The
1,200 billion, including 222 hospital beds and advanced 111%, respectively, over 2016. The number of patient
Business Performance
testing rooms tested and monitored 62,909 samples from
medical equipment, Vinmec is now Da Nang’s largest visits grew by 30% over last year, and per patient revenue
VinMart and other subsidiaries of Vingroup. In 2017, Vinschool became the largest educational
private hospital. Upon its official opening, Vinmec Da Nang for outpatients, inpatients, and health exams also grew
network in Vietnam after just four years of operations.
VinPro Electronics and Appliance Stores was honored as one of four health facilities supporting the substantially. Vinmec focused on the development
APEC Summit in November 2017. Vinschool has begun a new phase of development based
across important Departments with special treatments
At the end of February 2018, Vinpro operated 36 on the Group’s strategy to attain international standards.
The total number of patients in 2017 increased by 30% for cancer, cerebral palsy, autism, cardiovascular surgery,
supermarkets with a strategy of accompanying Vincom Innovative new programs have been launched including
over 2016, which boosted revenue by 70% from VND 1.1 organ transplants, and robotic surgery. As the monthly
malls system. As a result, Vinpro benefited from favorable the IPC International Pre-School Program (which is
trillion in 2016 to VND 1.9 trillion in 2017, the fastest patient load increased, the utilization rates of operating
location with large population in the cities such as Hanoi, offered in Vietnam exclusively through the Vinschool
growth in the last four years. and labor rooms also grew during the year.
Ho Chi Minh City, Da Nang, Viet Tri, Bien Hoa and Can network), the Cambridge Bilingual program, and the
Tho. The number of orders in 2017 saw an impressive NUMBER OF PATIENTS AND HEALTHCARE Strategic Alliances and Partnerships bilingual 21st Century Skills Program, currently taught at
growth compared with 2016, reaching 400,000 orders, REVENUE FOR 2016 AND 2017 4,655 International Baccalaureate schools in over 160
equivalent to a growth of 69%. On November 16, 2017, Vinmec Times City International
Number of paents countries throughout the world.
Hospital and Vietnam National Cancer Hospital signed a
Adayroi E-Commerce cooperation agreement on research and transfer of cancer Vinschool’s goal is to become a world-class educational
treatment technology for the period 2017 to 2019.
Although a late comer, Adayroi became a familiar address
to the new generation of consumers in Vietnam. One On December 12, 2017, Vinmec and GE Healthcare, a
year after launch, Adayroi reached 60.3 million visits in leading US healthcare company, signed a comprehensive
2017. According to the Vietnamese E-commerce map strategic partnership to promote the application of
by iPrice – a large e-commerce portal across 7 ASEAN science and technology and to develop Vinmec’s
1Q 2Q 3Q 4Q
countries – Adayroi is among 10 largest e-commerce
platform in terms of number of visits. In 2017, Adayroi’s
Revenue (VND billion) Progress of Development Project
products were diversified with more affordable prices and
Vinmec Hai Phong International Hospital is in the
improved product quality. At the same time, Adayroi team
final phase of construction to open during the
also facilitated the promotion of attractive bundles and
second quarter of 2018; all equipment has been
increased interactions with users.
installed as scheduled.
Vinmec Can Tho International Hospital has

completed ground preparation; construction
1Q 2Q 3Q 4Q
commenced in March of 2018.
2016
2017
CHAPTER 3 CHAPTER 3
institution in Vietnam and a leader in educational reform AGRICULTURE INDUSTRIALS

efforts. In September of 2017, Vinschool announced
its plans for a major change in the quality of education,
including funding to attract the best teachers with training
in the latest instructional methods, as well as investments 14 farms
in educational programs, school facilities and service

standards.
In October of 2017 Vingroup announced the conversion

4 central
processing centers
of Vinschool to a not-for-profit model. Standard tuition

for new students for the 2018 – 2019 academic year is
based directly on expected program costs. All increases in
~1,200 hectare of farmland
tuition fee as a result of the upgrade in education quality

for existing students in the next three years will be fully
absorbed by Vingroup, with further sponsorship to reduce
>14,600 tons of products
in 2017
Progress of Development Projects
~230
any increase in tuition fees from 2021 to 2023. On September 2, 2017, Vingroup announced its investment
varieties of fruits
and vegetables Among VinEco’s 2017 business and operational in industrials, specifically to produce automobiles and
Lastly, the Group will sponsor investments in extra-curricular motorcycles under the VinFast brand. With VinFast,
accomplishments are the following:
facilities and equipment in certain campuses, such as a new Vingroup is launching the automobile industry in Vietnam.
swimming pool and indoor football field in Vinschool Times Business Performance In the areas of production infrastructure and Production facility construction began in the Dinh Vu –
City, and a theatre in Vinschool The Harmony. At the end of 2017, VinEco had built a network of 14 Cat Hai Economic Zone of Hai Phong using European and
technology: VinEco has implemented advanced
farms and 4 central processing facilities with about 1,200 mushroom production techniques at Tam Dao American technology standards and with assistance from
hectares of farmland contributing about 230 varieties farm. This farm produces five kinds of mushrooms the world’s leading manufacturing experts.
of fruits and vegetables to the market with an average with a maximum capacity of 1.5 tons per day,
The VinFast name stands for Vietnam – Style – Safety
Progress of Development Projects monthly output of about 2,500 tons. Total sales of and is the largest facility of its kind in the
– Innovation – Pioneer. VinFast aspires to become the
agricultural products in 2017 increased by 71% over 2016. country. VinEco has installed 45 hectares of
Vinschool continued to expand its school system largest automobile manufacturer in Southeast Asia. In the
NFT hydroponics to produce microgreens, leafy
based on its initial strategic of following Vinhomes The VinEco team is highly skilled and their enthusiasm first phase of development, VinFast will have a capacity
vegetables, tomatoes, sweet peppers, melons,
urban areas. Although having recently operaad, and energy have contributed greatly to the development of 250,000 electric scooters and 250,000 cars annually.
and cucumbers at multiple locations: Long Thanh,
Vinschool facilities at Vinhomes The Harmony, of this operation: 28.72% of VinEco’s staff hold degrees The primary products will be automobiles using internal
Quang Ninh, Ha Nam, Hai Phong, Phu Quoc, and
Vinhomes Central Park and Vinhomes Gardenia in Agriculture at the bachelor’s, master’s and Ph.D. levels. combustion engines, electric cars, and environmentally-
other VinEco farms throughout the country
have attracted a large number of students due to friendly electric motorcycles.
VinEco has promoted the use of local labor, with a monthly
the established prestige and quality has. Other In the area of management: VinEco has established
average of 2,368 workers employed on VinEco farms The launch of VinFast demonstrates Vingroup’s
facilities in urban areas such as Vinhomes Golden detailed production standards. The first phase
during 2017. determination to build a Vietnamese brand that can master
River, Vinhomes Green Bay are being completed of SAP management system adoption has been
advanced manufacturing technology. Through automobile
To promote the concept of producing clean agricultural implemented with several functions tailored for
to start operationg once the apartments were manufacturing, Vingroup intends to promote the
products and their benefits for consumers, VinEco has VinEco to automate and expedite management
delivered. development of industrials in Vietnam and to contribute
partnered with 1,000 family farms to provide VND 300 reporting and analytics. A comprehensive 100-
to the industrialization and modernization of Vietnam.
billion in production support. Farmers would receive day transformation program was implemented
technical assistance and production funding to provide between July 2017 and September 2017 to During 2017, VinFast’s staff of experts have made plans
safe and high-quality products for the VinEco supply chain. promote initiative and accountability, quality and to introduce motorcycle products by the end of 2018 and
efficiency of work, and quality of management and gasoline and electric cars by the end of 2019. The Company
During 2017, this partnership established strict controls
governance. has partnered with the world’s leading auto design
to ensure the supply of clean ingredients at purchase
companies to create exterior car designs. These designs
points in 44 towns across the country. VinEco held more
have been previewed with a mass audience in a contest
than 30 training sessions with 1,800 participants covering and destroyed in accordance with local regulations. All of
entitled, “Choosing Your Car With VinFast.” to solicit
technical standards, crop rotation, VietGap standards, and VinEco’s agricultural products are subjected to rigorous
opinions on consumers preferences for future VinFast
the use of pesticides. quality control standards to ensure safety to consumers.
cars. From its survey, VinFast has selected two Sedan
Each month, VinEco purchases approximately 1,000 tons VinEco’s various actions and efforts aim to transform and SUV designs by Pininfarina of Italy for production,
of safe vegetables from these farms, creating a reliable farming practices and spread the adoption of safe farming purchased technology from BMW and selected Magna
market for the farmers. All farmers selected for VinEco practices throughout Vietnam. Steyr as technical consultant to introduce the best, most
production are complying with VietGap standards in order stylish and safe car models from experts around the world.
to improve the environment through the standardization of
pesticides. Fertilizer and pecticide packages are collected

CHAPTER 3 CHAPTER 3
2017 FINANCIAL PERFORMANCE townhouses in Vinhomes Gardenia, beach villas in Nha

Trang and Phu Quoc, and other projects throughout
billion from VND 17.4 trillion to VND 18.2 trillion at the
end of 2017 as Vincom Retail expanded its network with
Vietnam. the opening of 15 new shopping malls nationwide.
Revenue from leasing activities and related services rose Long-term assets in progress increased by VND 3.3 trillion
KEY FINANCIAL INDICATORS by 33% from VND 3.3 trillion in 2016 to VND 4.4 trillion to VND 37.5 trillion at the end of 2017, reflecting the
in 2017. The increase reflects the Group’s expanding large number of projects under construction by the Group
shopping mall network across the country. Vingroup during 2017. Projects with significant year-end balances
Indicators 2017 (VND trillion) 2016 (VND trillion) % increase/decrease
currently owns and operates 46 shopping malls and included the Can Gio Urban Tourism Project (VND
Current assets 100.3 93.0 8% shopping centers in four different mall formats. 12.3 trillion), Vinhomes Central Park (VND 2.6 trillion),
Non-current assets 113.5 90.5 25% Vinhomes Metropolis (VND 1.6 trillion) and VinCity Gia
Revenue from providing hotel services, amusement park
Lam (VND 1.6 trillion). Other long-term assets increased by
Total assets 213.8 183.5 17% services and related services rose to VND 5.5 trillion in
7.1 trillion VND compared with the end of 2016, mainly
Total liabilites 161.2 135.2 19% 2017, an increase of 28%, reflecting a surge in visitors
attributed to the Group’s deposits to develop potential
Of which, total debt (short-term and long-term) 49.4 39.8 24% and expansion of capacity to over 10,000 hotel rooms
projects.
managed across the nation.
Statutory obligations 4.9 7.4 -33%
Total liabilities reached VND 161.2 trillion at the end
Owner’s equity 52.6 48.3 9% Revenue from sale of goods in supermarkets, convenience
of 2017 compared with VND 135.2 trillion at the end
stores, and retail outlets increased by 41% from VND
Net revenue 89.4 57.6 55% of 2016, an increase of VND 26.1 trillion, mainly due
9.2 trillion in 2016 to VND 13.1 trillion in 2017 due to
Cost of goods sold 62.8 40.2 56% to an increase in current liabilities. The Group launched
an increase in the number of retail stores from 1,000 to
Operating profit 9.4 6.7 42% and presold several residential projects, and received
about 1,200. Retail revenue per square meter also rose
Other profit (loss) -0.3 0.1 -575% a large amount of prepayment proceeds. The proceeds
meaningfully as VinMart, VinMart+ and VinPro gained
is recognized in advances from customers, which will be
Profit before tax 9.1 6.7 35% customers’ trust.
recognized as revenue once projects have been completed
Profit afer tax 5.7 4.5 27% The development of Vingroup’s entire ecosystem has and delivered during the coming years.
Source: Vingroup JSC audited consolidated financial statements for 2016 and 2017 lifted profit after tax from VND 4.5 trillion in 2016 to VND
Total debt of the Group increased by VND 9.6 trillion from
5.7 trillion in 2017, an increase of 27% over the previous
VND 39.8 trillion at the end of 2016 to VND 49.4 trillion
DISCUSSION AND ANALYSIS OF THE INCOME STATEMENT FOR THE year and 88% above the target set at the 2017 General
at the end of 2017. Short-term debt increased by VND 12.6
Meeting of Shareholders.
YEAR ENDING DECEMBER 31, 2017 trillion, an increase of 224%. This increase reflected the
In 2017, the impact of foreign exchange fluctuations on classification of current portion of bonds and bank loans
the Group’s financial conditions is small, because the USD- approaching maturity as well as new short-term loans
2017 2016
VND exchange rate was stable throughout the year, and acquired during the year. Non-current debt including loans
Value Percentage Value Percentage our borrowing cost in USD was also at a low level. and convertible bonds decreased by VND 2.9 trillion, a
Item
(VND trillion) (%) (VND trillion) (%) drop of 9% due to reclassification as mentioned.
Sale of inventory property 62.5 69.9% 37.3 64.7% DISCUSSION AND ANALYSIS The Group’s debt structure is comprised of corporate
Leasing activities and rendering related services 4.4 4.9% 3.3 5.8% OF THE BALANCE SHEET AS AT bonds (62%), bank loans (14%), and other syndicated loans
Rendering hotel, amusement park, and related services 5.5 6.1% 4.3 7.4% DECEMBER 31, 2017 (14%). At the end of 2017, the average debt maturity was
2.38 years. The ratio of VND-denominated debt to total debt
Rendering hospital and related services 1.9 2.1% 1.1 1.9%
was 85.3%, a slight increase from 81.4% in 2016. The ratio
Sale of goods in supermarkets, convenience stores, Current assets rose by VND7.3 trillion from VND 93.0
13.1 14.6% 9.2 16.1% of total debt to total assets remained stable at 23% at the
and retail outlets trillion to VND 100.3 in 2017. The increase was largely
end of 2017 compared with 22% at the end of 2016. Both
Rendering education and related services 1.0 1.1% 0.7 1.2% due to movements in the value of short-term receivables
ratios are well within the range for real estate companies
attributed to do some outstanding receivables from a
Rendering other services 1.1 1.2% 1.7 2.9% in the region.
business partner. As of the date of the consolidated
Total 89.4 100.0% 57.6 100.0% financial statements, these receivables have been fully Statutory obligations declined to VND 4.9 trillion at the
collected. end of 2017 from VND 7.4 trillion at the end of 2016, due
Source: Vingroup JSC audited consolidated financial statements for 2016 and 2017 to payment of most of the land use fees and land leased
Non-current assets rose by 25% in 2017 over the level in
fees during this period relating to the robust real estate
Net revenue increased by VND 31.7 trillion from 2016 to Revenue from sale of inventory property grew by 68% 2016, reaching VND 113.5 trillion as of December 31,
projects developments by the Group. In 2017, the Group
2017, equivalent to an increase of 55%. Revenue increased from VND 37.3 trillion in 2016 to VND 62.5 trillion in 2017. Fixed assets, investment properties, and long-term
paid VND 13.5 billion in tax and statutory obligations.
in all business segments, particularly the sale of inventory 2017. Revenue growth from the sale of inventory property assets in progress all rose due to an increase in the number
property. Revenue from other business segments also reflected the delivery of various projects to customers in of operating facilities and investment projects. Owners’ equity increased by 9% from VND 48.3 trillion at
grew, especially sale of goods in supermarkets, convenience Hanoi and Ho Chi Minh City, including Vinhomes Times the end of 2016 to VND 52.6 trillion at the end of 2017,
Fixed assets rose to VND 35.6 trillion at the end of 2017
stores, and retail outlets, due to the stronger presence of City – Park Hill, Vinhomes Central Park, apartments and mainly attributed to a significant increase in retained
from VND 26.9 trillion at the end of 2016, due to the
the entire Vingroup network. earnings resulting from positive performance results
robust developments discussed above. During 2017,
during the period.
the value of investment properties increased by VND 836
CHAPTER 3 CHAPTER 3
KEY FINANCIAL INDICATORS
2017 2016
Liquidity ratio (times)

Current ratio: Current assets/Current liabilities 0.81 0.95
Quick ratio: (Current assets – Inventories)/ Current liabilities 0.36 0.39

Capital structure (times)
Total liabilities1 /Total assets 0.75 0.74
Total liabilities1/Owners’ equity 3.07 2.80
Leverage (times)
Debt ratio: Total debt/Total assets 0.23 0.22
Operating capacity (times)
Asset turnover: Net revenue/Total assets 0.4 0.3
Inventory turnover: Cost of goods sold/Inventories 1.13 0.97
Profitability (times)
Profit after tax/Net revenue 6.3% 7.7%
Return on Equity: Profit after tax/Equity 10.8% 9.2%
Return on Assets: Profit after tax/Total assets 2.6% 2.4%
Operating income/Net revenue 10.6% 11.6%
Operating income/Total assets 4.4% 3.6%
1
Total liabilities include amounts payable to suppliers, deposits from customers, and borrowings. Liabilities also include the
proceeds from contracted sales paid by customers for properties under construction. These payments are recognized as
revenues when the properties have been delivered to customers
The Group’s liquidity ratios for the year ended December As a result of the impact from short-term borrowings,
31, 2017 declined as short-term liabilities rose faster than capital structure ratios for the year increased compared
short-term assets. The current ratio fell from 0.95 times to with 2016. However, these ratios generally remained
0.81 times, and the quick ratio decreased from 0.39 times stable during the period.
to 0.36 times. Short-term liabilities rose as it reflected the
Profitability ratios for the year 2017 were improved
reclassification of current portion of bonds and bank loans
compared with 2016 as profit after tax increased
approaching maturity and new short-term loans acquired
significantly, mainly attributed to the delivery of major
during the period.
projects in the year including Vinhomes Times City – Park
Hill and Vinhomes Central Park.
VINPEARL GOLF HAI PHONG

CHAPTER 3 CHAPTER 3
BLUEPRINT FOR CONSUMER RETAIL
2018
During 2018, VinMart, VinMart+ and VinPro supermarket,
convenience store and electronic store chains will expand
by adding stores across several provinces in Vietnam with
the best retail potential. VinMart and VinMart+ will focus
BUSINESS STRATEGY on improving food hygiene, customer perception and
mind share, and service quality. VinMart and VinMart+
PROPERTY will continue to add clean VinEco agricultural products
and both fresh and prepared foods sold under the
Vinhomes will develop and open large-scale residential VinMart Cook brand to meet the growing demand from
projects in the high-end and mid-range segments of the consumers and to strengthen consumer’s awareness of
property market, maintaining its leading position in the interest in product quality and food safety.
market based on product quality, delivery speed, and the
overall ecosystem of property amenities. Adayroi e-commerce will become a strategic retail channel
to promote the Vingroup ecosystem of products and
In the more affordable residential segment, VinCity will
services. In 2018, Adayroi will pay more attention to the
become the new standard by contributing to changes in
tourism and travel segments, and will improve business
the appearance of cities.
profits. The Group will leverage VinID’s customer base of
In retail real estate, Vincom Retail will continue to open nearly 4 million loyal members by offering them a great
new shopping malls throughout the country. The Group shopping experience with outstanding values.
expects to open about 25 shopping malls during 2018.
SOCIAL INFRASTRUCTURE SERVICES
At the same time, Vincom Retail will serve the mid-range
to high-end consumer segments by enabling well-known In healthcare, Vinmec plans to strengthen its cooperation
international retailers to enter Vietnam through our with international partners and with leading hospitals in
extensive network of shopping malls. Vincom Retail will Vietnam in order to develop departments such as organ
continue to diversify its dining and entertainment options transplant, and cardiovascular and oncology surgery.
to attract more customers from all age groups and to At the same time, Vinmec will continue to strengthen
meet the shopping needs of all consumers. existing departments in obstetrics and pediatrics. During
2018, Vinmec plans to open a new international hospital
HOSPITALITY AND ENTERTAINMENT in Hai Phong.
During 2018, Vinpearl will extend its network of hotels Vinschool plans to open 16 new kindergartens and
and resorts to more tourist and commercial destinations schools in Hanoi, Ho Chi Minh City, and Hai Phong
throughout Vietnam. In addition, the Group will promote this year. After successful implementation of the IPC
a wide range of attractive hospitality packages to meet kindergarten program and the Cambridge curriculum in
its growth targets for the domestic market and to expand its primary, secondary and high schools, Vinschool will
its share among international travelers. Vinpearl will focus continue to focus on improving the quality of its teaching
on new facilities and services such as Kids Clubs and and will integrate international educational concepts with
Spas at our existing hotels and resorts and will improve Vietnamese values.
service levels to meet international standards. Vinpearl
In March of 2018, Vingroup officially entered the higher
is developing plans to overhaul its dining offerings. The
education segment with its announcement of VinUni.
number of international a la carte options will be increased,
VinUni will operate as a not-for-profit private institution.
and dining services will become more personalized to
As part of its launch, VinUni signed strategic partnership
appeal to customers from different countries.
agreements with two leading U.S. institutions: Cornell
Within the entertainment business, Vinpearl Land plans University and the University of Pennsylvania. Through
to open projects developed during 2017. These include these partnerships, VinUni will build a modern higher
the Floating Bay, Royal Garden, Vinpearl Sky Wheel, education program and coordinate with its partners to
Hill of Flowers, and other unique offerings originating in create its strategy and management systems.
the VinTata Automation Studio. These innovations will
In the field of agriculture, VinEco continues to strengthen
enable Vinpearl Land to maintain its leading position in
its production and purchasing activities with our affiliated
the entertainment business and will become a symbol of
producers to meet increasing demand from customers.
Vietnamese tourism in the cities where it operates.
Besides VinMart and VinMart+, VinEco will develop the
Horeca channel and look for potential export markets. VINHOMES TIMES CITY
CHAPTER 3
MANAGEMENT REPORT ON 2017 BUSINESS PERFORMANCE AND 2018 PLAN OF ACTION
INDUSTRIALS
Following on VinFast’s progress in 2017, this business

unit aims to meet important development milestones
during 2018. These include the construction of a modern,
automated manufacturing plan with total area of 500,000
square meters at the Dinh Vu – Cat Hai Economic Zone,
to be completed during the third quarter of 2018. VinFast
will work with respected auto industry partners in the
areas of design, manufacturing, technology solutions,
equipment, components, and auto parts needed for
electric motorcycles in 2018 and automobiles in 2019.
PLANS FOR BUSINESS

DEVELOPMENT AND HUMAN
RESOURCES MANAGEMENT IN
2018
The Group will continue to implement the decentralized
P&L model at its subsidiaries, emphasizing the need for
efficiency and accountability. Vingroup continues to
implement the Five Transformational Principles of Elevate
– Standardize – Simplify – Automate – Share in order to
build a streamlined, versatile, and flexible management
system.
The role of the Company’s business development system

is to diversify the products and services of each business
segment with the aim of delivering products of the
highest quality to Vietnamese consumers. The ultimate
goal is to diversify revenue sources and encourage
consumers to use the products from the entire Vingroup
ecosystem. Vingroup will simultaneously continue its
strategy of raising standards toward the international five-
star standard.
Vingroup will diversify its sources of investment capital

both domestically and internationally and will match the
availability of capital in the short-term, mid-term, and
long-term with appropriate uses.
The Group will promote the role of leaders while building

its leadership pool from with its ranks. During 2018,
Management plans to take steps to improve the material
and spiritual life of employees, and to maintain an
attractive, professional and friendly work environment.
VINCOM CENTER LANDMARK 81

VINGROUP
ANNUAL
REPORT
2017
GO GLOBAL
VINPEARL LAND NHA TRANG

CHAPTER 4
CORPORATE GOVERNANCE
VINGROUP GOVERNANCE STRUCTURE

Components of the Vingroup management structure objectives of Divisions within the Corporate Office have
been recalibrated to reduce overlap with the P&Ls and
The General Meeting of Shareholders (GMS) has the
duplication of effort, and to ensure effective supervision
highest level of authority within Vingroup and includes all
of business units
shareholders with voting rights. The GMS determines key
Over the years, Vingroup launched a number of initiatives to strengthen its management and governance procedures. These governance structures and has power to appoint members The Corporate Office also carries out such functions as
initiatives were aimed at applying best practices in accordance with the Group’s core values and aligning individual total of the Board of Directors and Supervisory Board brand-building, corporate advertising, capital allocation,
compensation with business results. fund raising, mergers and acquisitions, investments
The Board of Directors (BOD) is the Group’s management
– all aimed at maximizing benefits for shareholders.
body, elected by the General Meeting of Shareholders and
The Group has received the endorsement of the business community, investors, and management experts for outstanding Other corporate management functions assigned to
entrusted with the authority to make business decisions
corporate governance, as well as national and international awards for its 2016 and 2017 annual reports. the Corporate Office include internal auditing, setting
for the Group, and exercise rights and responsibilities that
information technology management policies, and project
do not fall within the jurisdiction of the General Meeting
management. During 2017, the responsibilities, roles, and
ROLE OF THE MANAGEMENT SYSTEMS CORE VALUES OF VINGROUP’S of Shareholders. The Board consists of nine members,
objectives of Divisions within the Corporate Office have
IN VINGROUP’S DEVELOPMENT MANAGEMENT MODELS with three independent directors to ensure transparency
04
been recalibrated to reduce overlap with the P&Ls and
CHAPTER Vingroup has identified corporate governance as a critical Vingroup’s governance structure has been developed
and in accordance with prevailing laws and international
standards.
duplication of effort, and to ensure effective supervision
of business units.
success factor in achieving sustainable growth and based on the following core values:
The Board of Directors does not have special committees
profitability. The Group has issued an internal management The P&Ls are responsible for implementing Group
because the functions of supervision and risk
code of conduct describing the requirements for decisions, resolving issues not reserved under the
management are already assigned to dedicated Divisions
professional and transparent management of operations. jurisdiction of the Management and Corporate Office,
Efficiency in the Corporate Office. These Divisions supervise the
The code of conduct is designed to protect the interests of running the day-to-day operations of the business units,
operations of the business units and are empowered to
shareholders, customers, employees, and the community. and reporting to the Group as required and requested.
assist take control of operational units as needed.
The P&Ls are also responsible for escalating issues to the
CORPORATE
The Board establishes standards for investment, divestiture, Group on matters that affect shareholder interests.
PRINCIPLES OF THE MANAGEMENT
large corporate borrowings, and the issuance of stocks and
CODE OF CONDUCT Relationship between the Corporate Office and P&Ls
GOVERNANCE
bonds. Management is authorized to make decisions on
Fairness Accountability Relatonships between the Corporate Office and the
those matters and transactions whose value fall below the
Protect the legal business units are managed in accordance with the
Maintain an effective rights and ensure Board approval thresholds as prescribed in the Charter of
Enterprise Law, the Charter, Management Code of
Vingroup Governance Structure 72
management structure equal treatment of all Vingroup JSC and can exercise rights and responsibilites
shareholders Conduct, other prevailing laws and Vingroup regulations.
that do not fall within the jurisdiction of the Board.
Report of the Board of Directors 74 Vingroup effects decisions by exercising its rights as
The Supervisory Board is elected by the General Meeting shareholders in the P&Ls.
Report of the Supervisory Board 77 of Shareholders and operates independently from the
Vingroup’s Transparency When projects require coordination between multiple
Board and Management.
Governance Report 78 Management business units, they are managed under the terms of
Code of Conduct
Vingroup believes that effective management systems The Management includes the CEO and Deputy CEOs Vingroup’s responsibility matrix based on the RASCI
Internal Auditing Report 80
who are appointed by the Board of Directors. The CEO framework (Recommender, Approver, Supporter,
enable the organization to promote its core values, control
Risk Management 81 is the legal representative of the Group and has the Consultant, and Informed). This framework is used to
business operations, and delegate responsibilities among
highest authority in managing the daily operations of the clarify responsibility, facilitate cooperation and promote
Share Information and Investor 84 its various business units. The Group constantly looks for
Provide Prevent conflicts Group. The Management is responsible for overseeing the transparency.
Relations ways to realize the synergies among the various business
transparent among concerned Group’s business operations by managing and supervising
operations parties units and P&Ls to help meet its business goals. Mechanism for coordination between the Corporate
the heads of Divisions in the corporate office and the
Office and the P&Ls
senior executives at each P & L.
(Extract from Provision No 3, Vingroup Management Code of VINGROUP MANAGEMENT AND Vingroup’s business units are directed to cooperate with
The Corporate Office is the body charged with supporting
Conduct – issued on August 16, 2013) GOVERNANCE STRUCTURE 2017 the Board of Directors, the CEO, and the Management
each other for mutual long-term benefit under arm’s
length principles.
of the Company in formulating the Group’s business
The Vingroup management and governance system
strategies and directions. The Corporate Office also sets policies and guidelines to
follows standard international practices for publicly
ensure that business units work with each other and with
listed companies and includes a General Meeting of The Corporate Office also carries out such functions as
the Parent Company to utilize resources efficiently and
Shareholders, a Board of Directors, a Supervisory Board, a brand-building, corporate advertising, capital allocation,
leverage their individual strengths.
Chief Executive Officer (CEO), along with functional units fund raising, mergers and acquisitions, investments
and representatives of the Parent Company in the Group’s – all aimed at maximizing benefits for shareholders.
subsidiaries (the independent profit-and-loss centers, Other corporate management functions assigned to the
or “P&Ls”). Vingroup’s management and governance Corporate Office include internal audit, setting human
structure is used for both the Parent Company – Vingroup resource policies, evaluating business results, and
JSC – and the P&Ls. information technology management policies, and project
management. During 2017, the responsibilities, roles, and

CHAPTER 4 CHAPTER 4
CORPORATE GOVERNANCE CORPORATE GOVERNANCE
REPORT OF THE BOARD OF DIRECTORS BOARD MEETINGS AND THE

PROMULGATION OF THE GROUP’S
Content
Reorganizing the corporate management

No.
MAJOR DECISIONS 18
and operational structure, establishing the
During 2017, the Board held a total of 06 meetings with a P&Ls, making executive appointments at the
EVALUATION OF THE BOARD OF DIRECTORS ON MANAGEMENT AND member participation rate of 100%. The Board issued 23 Group and P&L levels
BUSINESS PERFORMANCE IN 2017 resolutions, approving important policies that impacted

Fund raising, issuance of corporate bonds,
the Group’s operations and prospects. The resolutions can
pledging of assets 5
APPROACH be summarized as follows:
Total 23
In compliance with provisions in the Group charter, internal Vingroup also made investments in sports and culture, and
regulations and prevailing law, the Board of Directors has started to implement campaigns to raise service quality
completed the following governance and supervisory throughout its operations.
activities during 2017:
Multi-sector business operations in different locations and
• Supervised capital-raising exercises to finance project rapid expansion led to the increase in the total number of
development employees as well as the complexity and diversity of the
work. Therefore, by complying with the Management Code
• Successfully organized the GMS on April 24, 2017
of Conduct, streamlining business operation and opening
• Ensured the 2017 financial report, Annual report
new business units based on existing human capital and
and the quarterly financial reports provided a timely
infrastructure, Vingroup has successfully maintained
and comprehensive update of the Group’s business
efficiency and stability in its business operations. This
performance and financial state on the reporting
reflects significant contribution from Management,
dateSupervised the implementation of GMS and BOD
leaders and managers of the Group.
resolutions
During 2017, Vingroup has continued to build community
• Maintained oversight on activities in order to improve
awareness and has carried out a number of community
operational performance and meet business targets
service programs in the fields of agriculture, healthcare,
• Supervised the disclosure of information to stakeholders. and education. In agriculture, the Company supported
programs to improve animal breeding and husbandry
2017 REPORT
techniques for poor families. In education, Vingroup built
In 2017, the Board believes that the Group and Management new schools and soup kitchens for students in upland
have put in a significant amount of efforts in organizing areas, and public road lighting for poor villages and remote
and launching business operations, and maintaining good areas. In healthcare, the Company provided free medical
corporate governance practices. Business performance care, and infrastructure development. These programs
exceeded the planned levels. In particular, net revenue and have included schools in poor communities, health care
profit after tax for 2017 were VND 89.4 trillion and VND and cancer screening programs, and DNA testing to
5.7 trillion, respectively, representing 112% and 188% in identify the remains of martyrs, besides regular and ad-
excess of the budget approved by the GMS. hoc programs.
Vinhomes, the residential real estate business of Vingroup ACTIVITIES OF THE BOARD OF
continued to maintain a responsive and effective business
strategy and a flexible sales policy in all product segments.
DIRECTORS DURING 2017
Vinhomes delivered a record of 14,000 apartments, villas,
INTRODUCTION OF THE BOARD OF
townhouses all over the country. Retail mall leasing,
DIRECTORS
consumer retail, hospitality and entertainment showed
strong year-over-year growth geographic expansion. The Board of Directors consists of nine members, including
a Chairman and three independent directors.
During 2017, the Group entered the manufacturing
industry with the launch of VinFast automotive and Further details can be found in Chapter 2: About Vingroup –
motorcycle production. The goal of this unit is to deliver Board of Directors – Page 38.
its first product by the end of 2018. Vingroup made
further investments in the social infrastructure segments
by turning its healthcare, education businesses into non-
profit enterprises. Besides outstanding business results,

CHAPTER 4 CHAPTER 4
REPORT OF THE SUPERVISORY BOARD
ACTIVITIES OF THE SUPERVISORY

BOARD DURING 2017
During 2017, the Supervisory Board collaborated closely • Ensured accuracy of quarterly and annual financial
with the Board and Management. The Supervisory statements in accordance with Vietnamese Accounting
Board frequently monitored resolutions issued by the Standards and current fiscal policies.
Board, decisions by Management and audits conducted
• Ensured compliance with laws and regulations on
by the Internal Audit Division. It helped to ensure that
information disclosure
resolutions were issued and implemented in compliance
with legal regulations and the internal policies of the • Reviewed and evaluated key related-party transactions
Group. The Supervisory Board has not reported any unusual
The Supervisory Board carried out these functions during changes in business, investment, or finance during 2017.
2017: During 2017, the Supervisory Board held two quarterly
meetings and several additional meetings as follows:
PARTICIPATION OF BOARD MEMBERS IN and subsequently to make them clear and simple. With • Supervised and evaluated execution of business plans
CORPORATE GOVERNANCE PROGRAMS simplification and automation, the Corporate office and progress of achieving revenue targets
and P&Ls will be able to automate or increase the level
• Supervised the execution of business plans and
During 2017, members of the Board (except for the of collaboration and sharing of resources especially in
progress of achieving revenue targets
three independent members who are located overseas) standardized procedures, such as those in our hotels,
attended all seminars and training sessions on corporate hospitals or supermarkets. • Assessed financial investments and advised the Board
management and governance. and Management on ways to minimize risk and maximize
The benefits of “Standardize – Simplify – Automate”
returns
are to ensure the management process is coherent and
CORPORATE MANAGEMENT simplified to the greatest degree possible, so as to alleviate
AND GOVERNANCE PLANS FOR stress from our people. A clear operational framework
Number of
2018 also ensure that the growth in number of facilities and No. Date
attendees
Content Result
staff grows is not constrained because our staff can access
During 2017, the Group announced the Five a comprehensive informational database and rely on 1 07/03/2017 3/3 Review the documents and reports The information received is
Transformational Principles of governance: “Elevate – seamless processes. Lastly, “Share” helps our companies prepared for the Annual General accurate and consistent
Standardize – Simplify – Automate – Share”. During to increase staff productivity and the quality of work Meeting of Shareholders in 2017
2018, the Group plans to continue to implement this by maximizing the use of resources, thereby increasing
Review the implementation of The resolutions were made in
program in all of P&Ls and for all levels of employees. workers’ income. resolutions of the Board of Directors accordance with the regulations
During 2018, the Board of Directors has set the following from the beginning of the year to the and the charter and they have been
“Elevate” refers to the Group’s emphasis on the importance
time of the meeting correctly executed
of individual responsibility and accountability, as the four governance directions: first, Vingroup, the parent
individual is the nucleus of all activities. Human resource company, will continue to become a holding company and Evaluate and review the implementation The resolutions correctly executed
investments are aimed at developing all employees each P&L will be more independent; second, the Group 2 28/09/2017 3/3 of resolutions issued by the Board of without delay
to be highly competent, professional, and efficient. will continue to pursue growth in both breadth and depth; Directors during the third quarter
Team leaders have to set the example, especially in the third, the Five Transformational Principles will continue to
company value of “Dare to Try, Dare to Do.” That means be emphasized in management, and sales and marketing Review the implementation process Hanoi Southern City Development
and regulatory compliance related to JSC has strictly implemented the
management are tasked with clear mission and KPIs and activities will be emphasized to generate higher business
the disclosure of information about regulations in the issuance of
have full accountability for their work. Besides, as part of volumes; and fourth, Vingroup will prioritize internal
the issuance of corporate bonds for a corporate bonds, without delays
succession planning, managers are assigned to train the training to ensure an adequate supply of well-trained staff subsidiary and errors
next generation of leaders. Vingroup’s top management members.
Evaluate the results of the inspection The business performance and
has also formulate and implement talent pool training Transformation is not a small challenge, since it places of business activities and financial data financial status of these companies
programs to prepare the next generation of highly qualified heavy responsibility on every individual to depart from old that the Supervisory Board has prepared have improved; data are fully and
leaders. habits. However, if it is well executed, Transformation will for Vinhomes and Vincommerce accurately accounted for
The principles of “Standardize – Simplify – Automate – ensure continued breakthroughs.
Share” are intended to formalize all operational standards,

CHAPTER 4 CHAPTER 4
GOVERNANCE CHANGES IN MEMBERSHIP OF THE

In 2017, the Supervisory Board worked with the Legal and • Remuneration of the Board may not exceed 0.4% of
Compliance Division, the Finance Division and the Chief 2017 afer-tax profit BOARD, THE SUPERVISORY BOARD,
REPORT AND MANAGEMENT

Financial Officers of certain P&Ls regarding specific legal
• Remuneration of the Supervisory Board may not exceed
and financial matters.
0.1% of 2017 afer-tax profit
Reappointment of Ms. Duong Thi Mai Hoa as CEO,
In addition to these quarterly meetings, the Supervisory
• 2017 remunerations of the Board and the Supervisory effective from 23 February 2017
Board attended several meetings of the Board and
Board were VND 12.5 billion and VND 2 billion,
Management to monitor and ensure compliance 2017 GOVERNANCE REPORT respectively. These amounts were equal to 0.22% and Termination of Board Membership of Ms. Mai Huong Noi,
with relevant regulations and the Vingroup Code of effective from April 20, 2017
During 2017, Vingroup remained in full compliance 0.04%, of 2017 afer-tax profit, respectively
management.
with regulations on corporate governance. The Group Members of Management received salaries and incentives Appointment as Board Member of Mr. Nguyen Viet Quang,
2018 PLAN OF ACTION OF THE disclosed to investors and stakeholders all information on based on their employment contracts, and did not receive effective from April 20, 2017
business operations within the required time period and
SUPERVISORY BOARD any other form of remuneration.
in a transparent manner. Election of the Supervisory Board for the term of 2017 –
During 2017, the Supervisory Board will continue to Other benefits for members of the Board, the Supervisory
2022, effective from April 26, 2017, comprising of three
After achieving a positive outcome from the 2016 Board, and Management
carry out its mandated functions and responsibilities members, namely:
restructuring, Vingroup continued to streamline its
with a strong focus on increasing overall compliance and • Regular health check-up: Full reimbursement is provided
administrative processes and optimize resource allocation 1. Mr. Nguyen The Anh
transparency. for the actual cost of annual health examinations at any
in order to maximize contributions, and enhance the
• Monitor the suitability and legality of the Group’s Vinmec Internatonal Hospital or another medical facility 2. Mr. Dinh Ngoc Lan
supervisory functions of the Board, as well as ensure a
business activities. selected by the Group.
system-wide implementation of the principles and fortify 3. Ms. Do Thi Hong Van
• Examine the implementation of GMS and Board the relationships between the Group and related parties. • Health insurance: In addition to social and medical
resolutions and decisions. insurance required by law, members of the Board, CHANGE IN THE LIST OF RELATED
Vingroup’s Investor Relations function strives to provide
the Supervisory Board and Management and their
• Review quarterly and annual financial statements of transparent information to shareholders and investors. PARTIES OF A PUBLIC COMPANY
immediate families are provided with health insurance.
the Group and those P&Ls that accounted for a high Further details can be found in Chapter 4: Corporate
An addition to the Member of the Board: Mr. Nguyen Viet
proportion of the Group’s net revenue and expenses Governance – Share Information and Investor Relations – • Company telephone: Members of the Board, the
Quang.
for accuracy and completeness. Page 84. Supervisory Board and Management are supplied with
a mobile phone with services plus reimbursement for The removal of the following person from the list of related
• Advise the Board on ways to increase capital effciency Vingroup is one of the few enterprises to issue financial
usage costs. persons of a public company: Ms. Nguyen Thi Van Trinh, as
and improve asset utlization. reports in line with Vietnamese Accounting Standards
she is no longer a member of the Supervisory Board.
(VAS) and International Financial Reporting Standards • Discounts when using Group services: Members of the
• Coordinate activities among the Supervisory Board,
(IFRS). The financial reports of the Group and its P&Ls are Board, the Supervisory Board, and Management receive
the Board, Management, and the business segments
audited by Ernst & Young Vietnam Ltd. discounts for certain Group products and services.
to conduct regular and ad hoc inspections of specific
Such discounts are applicable for services at Vinmec
businesses issues. COMPENSATION FOR MEMBERS OF International Hospitals, Vinpearl Hotels and Resorts,
THE BOARD, SUPERVISORY BOARD, Vinpearl Land amusement parks, and Vinschool. VinID
AND MANAGEMENT Cards are also given to members of the Board, the
Supervisory Board, and Management so that they can
Remuneration policies
earn loyalty points when using Group services.
Remuneration for members of the Board, the Supervisory • Business-related expenses: Actual expenses for
Board, and Management complies with regulations business trips are reimbursed for members of the Board,
on compensation, incentives, and operating expenses the Supervisory Board, and Management as follows:
prescribed in the Group’s Charter. Remuneration is further Business class tickets for air, rail, water or road travel
approved periodically by the GMS and complies with both domestically and internationally. Group hotels for
applicable laws. business-related travel, or 4- or 5-star hotels if Group
hotels are not available. Other business expenses are
Remuneration for members of the Board,
reimbursed based on actual costs.
the Supervisory Board, and Management
During 2017, there were nine members of the Board and

three members of the Supervisory Board.
The GMS in April 2017 set the amount of remuneration

for members of the Board and the Supervisory Board as a
percentage of the Group’s afer-tax profit:

CHAPTER 4 CHAPTER 4
INTERNAL AUDIT REPORT RISK MANAGEMENT

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
1. The first line of defense is responsible for risk
ownership and management in its operations. The
first line of defense includes the CEO, Divisions of
corporate structure and the business environment in the Corporate Office and the lines of business.
2.
Vietnam. Risk management at Vingroup is based on these
The second line of defense is responsible for
principles:
building policies, procedures and risk management
1. A comprehensive risk management framework,

coupled with effective risk management tools,
should support the Group’s business development
tools, supporting the implementation of risk
management activities at the Corporate Office and
P&Ls. The second line of defense consists of the
strategies Board and the Risk Management Division.
2. Risk management should identify risks in a timely

manner and help maximize the outcome of
favorable opportunities
3. The third line of defense is responsible for
assessing the effectiveness and efficiency of risk
management activities in the Group. The third line
3.
of defense is the Internal Audit Division.
Vingroup will clearly allocate responsibilities and
ownership in risk management and establish Based on the three lines of defense, the risk management
regular supervision and reporting mechanisms responsibilities are assigned to the Board, Management
4.
and the Divisions as follows:
We will establish a common language in order
to strengthen the risk management culture at
Vingroup. Responsible party Risk management responsibility
• Collaborated with the Information Technology The Group recognizes that risk management is not only
During 2017, the Internal Audit Division reviewed and Board of Issues regulations, strategies
Department to oversee network security, data security, about threats but also about opportunities. Therefore,
evaluated the business and compliance actvites of the Directors and policies on risk
updates to the dataroom, and the maintenance of IT risk management is not risk minimization at all costs, but management, and determines
Corporate Ofce and the P&Ls, as described below:
systems throughout the Group. is about optimizing the correlation between risks and the organization structure,
• Inspected and evaluated the quality of products sold to opportunities, and accepting risks within a pre-defined functions and responsibilities
customers, focusing on strict control of food safety and • Evaluated returns on the Group’s assets by benchmarking
risk appetite. Vingroup is prepared to take risks in a of the risk management system.
hygiene. Also evaluated customer service to ensure full financial metrics for the Group’s business segments
prudent manner for justifiable business rationales.
compliance with the law and terms of sale. against those at other leading regional companies in
CEO Supervises and ensures that
• Followed up on customer feedback and suggestions for
the same industries. RISK MANAGEMENT STRUCTURE risk management activities
improvements in service. • Coordinated with the Finance Division to evaluate the The model of risk management used at Vingroup is are carried out in line with
adequacy, reliability, timeliness, and transparency of constructed with three lines of defense in order to strategies and policies on risk
• Monitored relatonships between the P&Ls and their
financial and non-financial information in each P&L in ensure the independence and objectiveness of the Risk management.
vendors to ensure that business partners were treated
order to provide maximum support for the Corporate Management Division.
with fairness, transparency, timeliness and in the spirit
Office. The Risk Management Coordinate with other
of mutual benefit.
• Inspected work environments, employee compensation

The Internal Audit Division stays current on relevant 2 Board of Director
Division, Internal
Audit Division, and
Divisions to manage
with approved tools, limits,
risks
developments in audit practices, serving as an

and benefits, training programs, and evaluated incentives Risk management division Risk Management procedures appropriate for the
independent, specialized organization to monitor business
and employee development opportunities. departments at the P&Ls Corporate Office and P&Ls.
operations and the financial condition of the P&Ls. During
• Coordinated with Vincom Security to control fire and 2018, the Internal Audit Division will strengthen its 3
explosion risks at all business locations. advisory role to provide greater assistance to the P&Ls in CEO Internal Audit Division The model of risk management operates throughout the
achieving their targets. Corporate Office Group, from the Parent Company to P&Ls, to ensure
• Together with the Legal and Compliance Division,
coherent and continuous management of risk.
evaluated adherence to all legal and administrative P&Ls
1
requirements.

CHAPTER 4 CHAPTER 4
RISK MANAGEMENT PROCESS 6. Communicate Risks: Risks and risk management 3. Competition risks such as experience and reputation. We also emphasize
processes are widely communicated with employees close supervision of our contractors. Senior executives
The Group uses a risk management process consisting Vingroup’s real estate, leasing, and consumer retail
to raise awareness and vigilance. Risk owners in the Construction Supervisory Division are experienced
of six components This process provides a logical and businesses are highly competitive. Competitors include
solicit and consider the opinions of the various practitioners from the design and engineering industries,
systematic approach to identify, analyze, assess the multinational groups and domestic rivals offering products
parties involved to ensure that all stakeholders are well equipped to evaluate the quality of external
level of severity, formulate the risk mitigation measures, similar to Vingroup’s. To respond, the Group innovates
fully aware of the role and responsibility of risk contractors.
monitor and review, and communicate risks to provide frequently to launch attractive new products of high quality.
management.
information for Management to use for decision-making Vingroup’s loyalty program, VinID Card, has succeeded in
6. Personnel risks
and timely response to both risks and opportunities. This RISK MANAGEMENT ACTIVITIES IN attracting 4 million cardholders by the end of 2017. The
risk management system is constructed based on the 2017 loyalty program joins together Vingroup’s ecosystem of There is a shortage of experienced managers in the
principles and guidelines of ISO 31000 standards as well products and services, enhancing value for customers and domestic labor market, particularly in senior roles. The
Vingroup continued to strengthen its risk management Group’s compensation framework is competitive and
as best risk management practices in the industry. The positioning Vingroup ahead of the competition.
systems throughout the year. During significant is based on results, rather than seniority, to attract and
CEO and Head of the Risk Management Division submit
transactions, periods of market volatility, and changes in 4. Investment risks motivate talent.
risk management policies to the Board for approval at
the legal environment, the Corporate Office and P&Ls
least annually, and the major risk factors of the Group are Investments in new projects are implemented based on Vingroup has successfully created a strong cultural
consult the Risk Management, Legal and Compliance,
reviewed and assessed at least quarterly. business strategies that are defined at the beginning of environment, turning the Group into a Common Home for
Finance, External Finance Divisions in accordance with
procedures set up for timely assessment and resolution. the year. Every investment has to be financially viable all employees as a way to promote long-term commitments.
During 2017, the Group frequently arranged seminars compared to the average cost of capital of the relevant These steps are aimed at building a leadership pipeline and
6 1 Identify Ricks
to disseminate information about risks and legal P&Ls, or be important to the Group’s strategy. Before an strong management bench to support the Group’s growth
Analyze Risks developments for all members of Management and staff. investment is made in a new project, risks such as market, plans. On a regular basis, Vingroup organizes large-scale
Comunicate 2 Monitor
Risks and Review
legal, licensing, tax or operational risks have to be carefully training programs for its employees. In addition, the Group
Prioritize Risks
3 Risks MANAGING MATERIAL RISKS IN 2017 assessed, and mitigating solutions proposed if necessary. emphasizes developing younger employees to prepare
The Group frequently consults with financial, legal and tax them for future roles as managers.
Fomulate Risk Mitigation
4 Measures 5 1. Macroeconomic risks advisers and follows rigorous due diligence and mergers &
7. Environmental risk
acquisitions processes for potential acquisitions.
In the property business, performance tends to
Construction projects may cause air, noise, or water
fluctuate with macroeconomic conditions. Important
pollution. Large-scale mixed-use projects may impact
1. Identify Risks: The first component of risk macroeconomic factors include growth rates, inflation, 5. Project development risks
their ecological, economic, and social environments. The
management is to identify all of the risks that may credit growth, exchange rates, consumer indexes, savings
Vingroup maintains a thorough project management Group pays close attention to the potential environmental
affect the Group’s goals, including the sources and rates, investments, and unemployment rates. All of these
system comprising several components for budgeting, impact of each project. All projects undertaken by Vingroup
potential impacts of all risk factors. Each business factors can influence Vingroup’s operations and results.
cost management, quality control, regulatory compliance undergo rigorous social and environmental analyses before
area is studied in detail to identify risk factors and The Group frequently diversifies its real estate products.
and speed of execution. There are stringent procedures to development begins. The Group also follows the strictest
the Group’s risk portolio is regularly updated. An example is its recent participation in the development
select well-qualified vendors for projects based on criteria standards in design and material selection in all projects.
2. Analyze Risks: The sources, impacts and likelihood of affordable housing. This category is less affected by
of each risk factor are analyzed both quantitatively economic fluctuations than the mid and high-end market
and qualitatively. segments. Specialized divisions monitor the macroeconomic
environment and consult with Management and P&Ls to
3. Prioritize Risks: All risk factors are ranked and
forecast future trends and their potental impact on business
weighed based on quantitative and qualitative pre-
developments. This analysis helps Management to prepare
determined criteria.
appropriate strategies and policies.
4. Formulate Risk Mitigation Measures: Risk
mitigation strategies and plans are identified.
2. Financial risks
Then, risk management measures are assessed Financial risks for Vingroup include risks related to liquidity,
and implemented to capture opportunities while interest rates and foreign currencies. Quarterly, the Finance
offsetting the negative impacts of each identified and External Finance Divisions assess conditions in the
risk factor. capital and financial markets to proactively manage the
debt portfolio and other commitments of the Group. The
5. Monitor and Review Risks: Risk mitigation measures
Finance and External Finance Divisions consult with local
are continuously monitored to ensure that they
and External banking and finance experts to propose
remain relevant and effective, in order to improve
and implement risk management solutions, such as using
the Group’s risk profile where possible, to adopt new
derivatives, especially ahead of large transactions or
and appropriate mitigation techniques, if needed,
transactions in foreign currencies. In order to manage
and to forecast and respond to risk events, if any.
liquidity risks, Vingroup actively manages our debt maturity
profile and ensures that cashflows are carefully controlled.
CHAPTER 4 CHAPTER 4
SHARE INFORMATION AND INVESTOR SHAREHOLDER STRUCTURE

9,80%
RELATIONS
(As at December 31, 2017)
VINGROUP SHARES PRICE DURING 2017

29,00%
Ticker: VIC Market capitalization (as at December 31, 2017): Significant shareholders
VND 203.894.824.844.200 60,82%
Outstanding shares (as at December 31, 2017): Founding shareholders
2.637.707.954 shares
Other shareholders-domestic
Price Trading
Other shareholders – foreign
Trading
Share price Date (VND/share) Date Volume (‘000 CP)
Volume 0,38%
Closing 29.12.2017 77,300 Closing 29.12.2017 2,106

Number of Ownership Number of
No. Shareholder
Low 24.04.2017 40,000 Low 11.08.2017 125 shares held percentage (%) shareholders
High 26.12.2017 78,000 High 21.03.2017 6,737 1 Founding shareholders 10,025,716 0.38 1
Average volume-weighted 38,368 Average daily volume 945 Domestic 10,025,716 0.38 1
price (**)
Foreign 0 0 1
(*): Calculated based on adjusted stock price. In 2017, Vingroup does not pay dividends. 2 Significant shareholders (holding above 5%) 1,604,145,058 60.82 2
(**): Calculated using the weighted average closing price, weighted by the daily trading volume in 2017 (250 days).
Domestic 1,604,145,058 60.82 2
2017 SHARE PRICE PERFORMANCE price recovered quickly with the information of starting
Foreign 0 0 0
the automobile production complex, VinFast motorcycles
In the first four months of 2017, Vingroup shares (VIC) and revenue from real estate projects such as Vinhomes 3 Other shareholders 1,023,537,180 38.80 12,053
fluctuated in the same direction with the VN Index, which Central Park (Ho Chi Minh City) and Vinhomes Times City
Domestic 765,083,265 29.00 11,275
was more volatile than the market (in late February to late – Park Hill.
March). The stock market still gained steadily despite the Foreign 258,453,915 9.80 780
The last two months of 2017, from October to December,
bad news from FED information raising the basic interest
witnessed a strong uptrend of both VN-Index and
rate by 0.25% and the big fluctuation in the exchange 4 Total 2,637,707,954 100.00 12,055
especially VIC shares following the listing and transfer of
rate caused VND devaluation. This is the time Vingroup
Vincom’s historic shares. As of December 29, 2017, the Foreign 2,379,254,039 90.20 11,275
entered the accumulation phase when the real estate
price of VIC shares reached VND 77,300 per share, an
market tends to increase again. Foreign 258,453,915 9.80 780
increase of nearly 85% compared to the closing price of
During the next 6 months (March and September), while January 3, 2017.
the VN-Index still retains its slow growth rate, VIC’s stock Vincom Retail
Significant shareholders (holding above 5%)
listed on HOSE
(As at December 31, 2017)
Simultaneously
+80% launched 15
businesses Launched
VinFast Ownership
+60% Name Number of shares held
percentage (%)
+40%
+20% Vietnam Investment Group JSC 880,175,924 33.37
0
Mr. Pham Nhat Vuong 723,969,134 27.45
January February March April May June July August September October November December
Total 1,604,145,058 60.82
VN-Index VIC

CHAPTER 4 CHAPTER 4
History of charter capital increase (2013 – 2017)
Time of Transaction Shareholder Capital before the Capital mobilized Capital after the Insider holdings
issuance issuance (VND) from the issuance issuance (VND) (As at December 31, 2017)
(VND)
2013 Issuance of bonus shares (1) 7,004,620,550 2,276,481,600 9,281,102,150 Number of shares Ownership
Shareholder Name - Position
held (shares) percentage (%)
Conversion of international bonds (2) 9,281,102,150 6,966,640 9,288,068,790
Board Mr. Pham Nhat Vuong – Chairman 723,969,134 27.45
of Directors
Shares swap (1) 9,288,068,790 7,968,000 9,296,036,790
Ms. Pham Thuy Hang – Vice Chairwoman 83,372,969 3.16
2014 Conversion of international bonds (2) 9,296,036,790 722,201,960 10,018,38,750 Ms. Pham Thu Huong – Vice Chairwoman 124,840,064 4.73
Ms. Nguyen Dieu Linh - Vice Chairwoman 191,523 0.01

Stock dividend (1) 10,018,238,750 4,527,312,230 14,545,550,980
Mr. Le Khac Hiep - Vice Chairman 0 0
2015 Conversion of international bonds (2) 14,545,550,980 372,690,630 14,918,241,610
Mr. Ling Chung Yee Roy – Board Member 0 0
Stock dividend (1) 14,918,241,610 3,763,639,260 18,681,880,870

Mr. Nguyen Viet Quang – Board Member 145 0.00001
2016 Conversion of international bonds (2) 18,681,880,870 716,667,640 19,398,548,510 Mr. Marc Villlers Townsend – Board Member 0 0
Mr. Joseph Raymond Gagnon – Board Member 0 0

Stock dividend (1) 19,398,548,510 2,133,799,410 21,532,347,920
Management Ms. Duong Thi Mai Hoa – CEO (1) 0 0
Issuance of bonus shares (1) 21,532,347,920 4,884,731,620 26,377,079,540
Mr. Nguyen Viet Quang – CEO (1) 145 0.00001
Mr. Pham Van Khuong – Deputy CEO 1,555,620 0.06

Note: In 2017, the Company did not increase chartered capital.
(1): Existing shareholders Ms. Mai Huong Noi – Deputy CEO 0 0
(2): International convertible bondholders Ms. Nguyen Thi Diu – Deputy CEO 0 0
Ms. Duong Thi Hoan – Deputy CEO 147 0.00001

Dividend payment history (2013 – 2017) Ms. Nguyen Thi Thu Hien - Chief Accountant 145 0.00001
Supervisory Mr. Nguyen The Anh - Head of the Supervisory Board 10,179 0.0004
Dividend year % Form of payment Time of payment Board
Mr. Dinh Ngoc Lan - Member of the Supervisory Board 1,433 0.0001
2012 15.10 Share 2012 Ms. Do Thi Hong Van - Member of the Supervisory Board 0 0
2013 21.49 Cash 2014

Note:
48.70 Share 2014
(1)
Mr. Nguyen Viet Quang was appointed CEO and Legal Representative of Vingroup, replacing Ms. Duong Thi Mai Hoa on
2014 14.00 Share 2015 February 25, 2018 by a resolution passed on the same day of the Board of Directors of Vingroup Joint Stock Company.
2015 11.80 Share 2015
2016 11.00 Share 2016
22.50 Share 2016
Note: In 2017, the Company does not pay dividends

CHAPTER 4 CHAPTER 4
Transactions by insiders in 2017
SHAREHOLDERS AND INVESTOR

RELATIONS ACTIVITIES IN 2017
Number of shares
held prior to the Number of shares held
after the transaction Vingroup maintains an active investor relations program of the Group’s senior management, who respond to
transaction
to handle inquiries, disclose information, and manage questions about strategy and operations.
Name Relationship with
Rationale communications with shareholders, investors, analysts,
insiders Share % Share % During 2017, Vingroup held 135 meetings, presentations,
and other interested parties. The Group is committed
and site visits for investors, and participated in nine
Ms. Mai Huong Noi to fair treatment of all shareholders, whether domestic
domestic and foreign investor conferences in Singapore,
Vinpearl Joint 0 0 90,039,008 3.41 Transfer of shares or foreign, institutional or individual. Through its official
is the Chairwoman, Thailand, and Japan, meeting hundreds of interested
Stock Company due to a merger website, the Group provides timely and accurate
Mr. Nguyen The investors.
of Vingroup information to shareholders and members of the general
Anh is Head of the
subsidiaries public. Information is released in Vietnamese and English Vingroup’s investor relations programs and annual reports
Supervisory Board,
simultaneously. Investor presentations as well as news and have been recognized with several well-respected awards
Mr. Dinh Ngoc Lan
financial releases are regularly updated and may be viewed in 2016 and 2017.
is a member of the
Supervisory Board of and downloaded from the website www.vingroup.net, under Further details can be found in Chapter 1: Vingroup in
Vinpearl JSC the Shareholder Relations section. 2017 and Message from the Chairman – Titles and Awards
In addition to the GMS, quarterly conference calls and – Page 14.
Vincommerce Ms. Mai Huong Noi 78,976,963 2.99 Transfer of shares
investor meetings following the release of financial results, During 2018, Vingroup’s Investor Relations Department,
General Trading is the Chairwoman of due to a merger
Vingroup also hosts regular briefings, meetings, and site a part of the External Finance Division, plans an even
Service Joint Vincommerce of Vingroup
visits to keep investors and shareholders updated on greater number of events for investors. We continue to
Stock Company subsidiaries
the Group’s projects, as well as financial and operational strive to respond promptly to all investor and analyst
results. Many investor events provide access to members inquiries. Investor Relations can be contacted via email at
Bonds listed in foreign market ir@vingroup.net.
None
Đồng tiền 2017 INVESTOR RELATIONS CALENDAR

Bond issuances in 2017
Nội dung Loại trái phiếu
phát hành
Credit Suisse – Ninth Annual Conference in ASEAN Singapore

QUARTER CIMB – Southeast Asian Business Conference Thailand
1 VCSC – Vietnam Market Access Workshop HCMC
5-year tranche bond 1 Domestic bond VND 3,000
3-year tranche bond 1 Domestic bond VND 2,500 Annual General Meeting of Shareholders 2017 Hanoi
QUARTER Deutsche Bank – Asian Corporate Access conference Singapore
3-year tranche bond 1 Domestic bond VND 5,500 2 UBS – Laos – Vietnam – Myanmar – Cambodia Investor Conference Thailand
Investor conference to announce business results in the first quarter of 2017 Hanoi
2.5-year tranche bond 1 Domestic bond VND 2,600
Daiwa – Vietnam Business Day Conference Japan - Singapore
2-year tranche bond 1 Domestic bond VND 1,000 QUARTER SSI – Vietnam Market Access Conference HCMC
3 HSC – Vietnam Market Conference HCMC
2-year tranche bond 1 Domestic bond VND 1,100
Investor conference to announce business results in the
second quarter of 2017 Hanoi, HCMC
2-year tranche bond 1 Domestic bond (*) VND 1,000
2-year tranche bond 1 Domestic bond (**) VND 1,000 Announcement of listing approval and the first trading
QUARTER date of Vincom Retail JSC, a subsidiary of Vingroup HCMC
4
Note:
Meeting with investors to announce business results in the third quarter of 2017 Hanoi
(*) As of 31 December 2017, VND 500 billion has been disbursed from this loan
(*) As of 31 December 2017, VND 100 billion has been disbursed from this loan

CHAPTER 4 CHAPTER 4
FINANCIAL CALENDAR
Financial year ending December 31, 2017
April 26, 2017 2017 Annual General Meeting
April 28, 2017 Release of Quarter I, 2017 Financial Statements
July 30, 2017 Release of Quarter II, 2017 Financial Statements
October 30, 2017 Release of Quarter III, 2017 Financial Statements
January 30, 2018 Release of Quarter IV, 2017 Financial Statements
Financial year ending December 31, 2018
April, 2018 Proposed release of Quarter I, 2018 Financial Statements
July, 2018 Proposed release of Quarter II, 2018 Financial Statements
October, 2018 Proposed release of Quarter III, 2018 Financial Statements
January, 2019 Proposed release of Quarter IV, 2018 Financial Statements
VINPEARL HA TINH HOTEL

VINGROUP
ANNUAL
REPORT
2017
GO GLOBAL
VINHOMES SKYLAKE
CHAPTER 5
SUSTAINABLE DEVELOPMENT
VINGROUP’S VISION FOR SUSTAINABILITY SUSTAINABILITY BY THE NUMBERS AND

2017 HIGHLIGHTS
Vingroup believes that a sustainable business is one that in our environment through practical, concrete actions.
creates long-term value for its partners. We measure To achieve our goals, we have established principles that
200 km 267,000
success not only in revenue and profit but also in the degree guide Vingroup’s corporate actions and the actions of
to which we serve as a catalyst for positive developments each member of the Vingroup team. 1 9 orders
Of roads built with streetlights installed for poor villages
Delivered by Adayroi used environmentally-
across the country
friendly degradable food packaging
2 Top 10 10 20,000
05
people
CHAPTER Sustainable Businesses in Vietnam in 2017, as chosen
by the Vietnam Business Council for Sustainable
With the program Screening and early detection
of some forms of cancer, 20,000 people in 8
Development (VBCSD)
provinces/municipalities across the country were
Top 10
provided with screening and counselling services
3
for breast cancer, cervical cancer, and colorectal
cancer
Ranked among the Top 10 Businesses honored for their

contribution to workers, as awarded by the Vietnam
General Confederation of Labor (VGCL) in collaboration 11 3,000 hours doing
community service
SUSTAINABLE
with the Ministry of Labor, Invalids and Social Affairs,
More than 1,000 teachers and employees of the
Vietnam Chamber of Commerce and Industry (VCCI)
Vinschool education system spent over 3,000
and Lao Dong Newspaper
DEVELOPMENT
hours doing community service, to bring gifts,
RESPONSIBILITIES TO SOCIETY
warm clothes and affection to disadvantaged
RESPONSIBILITIES TO
38,000
children, patients, elderly people living alone, and
Vingroup’s Vision for 94 • Demonstrate love of country and promote national

CUSTOMERS 4 people homeless people
534
Sustainability pride Took part in the series of inspirational workshops
• Put customers first and treat them with INTEGRITY
12
We are the Vingroup Family and the training program
charity houses
Sustainability by the 95 • Comply fully with the law Vingroup Common Standards
• Understand that the Group needs the support of its
Numbers and 2017 The Kind Heart (Thien tam) Fund continued to
• Contribute to the best of our ability in the work place customers
80.4%
build 534 charity houses in 32 provinces
Highlights
5
in order to build the economy and enhance the image
• Maintain a friendly, respectful, and supportive attitude
2,797
2017 Sustainability Report 99 and standing of the nation
toward customers
13
Of the staff rated the working environment at Vingroup poor households
Managing Sustainability 110 • Participate in social and charitable activities that help as making them “satisfied” or “very satisfied”
• Demonstrate CREDIBILITY in all our interactions with
disadvantaged members of society Coordinated to support and provide technical
customers
100,000
training on animal breeding for 2,797 poor
6
• Maintain an educated and active mind, in order to households in 9 provinces
• Listen to customers in order to clearly understand their people
participate in the development of a civilized society,
needs and balance customers’ needs with those of the
14
and
Group
14
After 6 months of operation, the Vincom Center for
schools
• Preserve natural resources and protect the natural Contemporary Art (VCCA) had organized 5 major art
• Continuously improve the quality of our service to exhibitions, welcoming more than 100,000 people to
environment Built 14 schools and day-boarding
ensure customer satisfaction, and visit and enjoy the art, organizing 50 education and art accommodation for students of disadvantaged
events/activities mountainous and border communes
• Anticipate market trends in order to innovate and offer
RESPONSIBILITIES TO
152 1 million
superior products and services.
EMPLOYEES 7 young footballers
15 people
• Treat employees as our most valuable asset

RESPONSIBILITIES TO The Promotion Fund of Vietnamese Football Talent
Nearly 1 million people received library service
• Establish a work environment that is professional,

SHAREHOLDERS AND PARTNERS (PVF) is currently training and developing the talent of
152 young footballers aged 10 to 19
through the program Financing mobile libraries –
the Light of Knowledge
dynamic, creative, and humane, and • Maintain a spirit of cooperation for mutual benefit, and
• Adopt outstanding human resources policies, offering
excellent remuneration and growth opportunities for
• Uphold CREDIBILITY and commitment to sustainable 8 216 students
16 123,000 Tet gifts
partnerships and become “The Number One 216 students have received the “Young Talent”
employees at all levels. Companion” to our business partners and investors. scholarship and the “Students with 5 Good Attributes”
Presented nearly 123,000 Tet gifts to the poor in
62 provinces
award, and the January Star Award at the national level
CHAPTER 5 CHAPTER 5
SUSTAINABLE DEVELOPMENT SUSTAINABLE DEVELOPMENT
2017 HIGHLIGHTS
4. VinEco Implements Cooperation with 6. Vingroup Opens Leading Football Training
1,000 Farm Families Center in Southeast Asia
1. A Shift to the Non-Profit Model for “Vingroup’s strategy is to develop youth football in
a comprehensive, holistic and long-term approach,
Vinschool During its second year of operations, VinEco signed
On November 20, 2017, Vingroup’s Promotion Fund
to help train generations of talented players for
for Vietnamese Football Talent (PVF) opened the Youth
In October of 2017 Vingroup announced the conversion cooperation contracts with more than 1,000 households Vietnamese football, and to help Vietnamese football
Football Training Center, one of the largest facilities in
of Vinschool to a non-profit model. Standard tuition for to produce clean and safe fruits and vegetables. To approach international standards in the near future.”
Southeast Asia, in Van Giang District of Hung Yen Province.
new students for the 2018-2019 academic year is based implement these contracts, VinEco conducted several
trainings on safe production methods, advanced Mr. Le Khac Hiep, Vingroup Vice Chairman and
directly on expected program costs. All increases in tuition
production techniques and provide newly improved seeds, “Vingroup’s investment in this large training center Independent Member of the Board of Director,
for existing students during the next three years will be
quality control, product purchases and sales, assistance is comparable to England’s leading youth football Chairman of the Management Board of PVF.
fully absorbed by Vingroup, with further sponsorship to
reduce any increase in tuition from 2021 to 2023. in VietGap certification and provided financial aid farm training academies.”
households that participate in the program.
The Group will fund investments in extra-curricular Mr. Mike Farnan, former director of international
facilities and equipment in certain campuses, such as a During the first year of operations, 500 farm families relations for Manchester United and a consultant to PVF. 7. Vingroup Launches Vincom Center for
new swimming pool and indoor football field in Vinschool successfully produced vegetables, mushrooms, rice, and Contemporary Art (VCCA)
Times City, and a theatre in Vinschool The Harmony. fruits for sale and consumption through our network of
VinMart supermarkets and VinMart+ mini-marts and As a result of Vingroup’s support, PVF will undergo a major On June 6, 2017, Vingroup opened the Vincom Center for
2. Establishment of the Solidarity Fund convenience stores. By maintaining strict control over upgrade in professional quality, including its coaching staff Contemporary Art in Hanoi with a mission of promoting
products at all stages from cultivation to distribution, and training methods. art to the public. VCCA is a large-scale not-for-profit art
On January 11, 2017, Vingroup established the Solidarity
VinEco has been able to control and improve the quality Among the leading domestic and international coaches center that has been developed and financed by Vingroup.
Fund, under the Kind Heart Fund, to support staff members
of agricultural products delivered to consumers, by and trainers supporting PVF are Football Manager Ryan
and their families during times of need. After only 6 months of operation, VCCA organized five
streamlining the redundant intermediaries. Giggs, Technical Advisor Paul Scholes, Technical Director major art exhibitions and fifty art events and education
As a charity of the Vingroup Family Program, the Solidarity Terry Robinson, Head Coach Hoang Anh Tuan, and sessions with more than 100,000 people attending.
Fund promotes the Group’s core values of mutual support, Assistant Coaches Nguyen Manh Cuong, Nguyen Huu
“VinEco’s goals are to provide safe and clean food
solidarity, sharing, and helping. This program helps to Dang, Nguyen Viet Thanh, and Le Phuoc Tu
to consumers, to support farmers, to upgrade the
foster the development of a close-knit work environment
production techniques in order to enhance production
within the Company.
yields for the agricultural sector. The results include
3. Health Sector Funding building agricultural brands with international reach
while protecting the health of both urban and rural
During 2017, Vingroup increased its support to VND 1.5 communities, and upgrading the quality of production
trillion for patients in poor households, individuals with and life for Vietnamese farmers.”
health challenges, and people who have contributed to
Ms. Nguyen Thi Phuong Thao - VinEco Vice General
the Revolution. This support provides treatment from
Director .
leading doctors from the Vinmec International Hospital
network, allowing subsidies of 70% to 100% of total
treatment costs and bringing hope to thousands of people 5. Inauguration of 10 classrooms for poor
throughout Vietnam. children in Quang Tri province
The Kind Heart Fund continued during 2017 to provide In September of 2017, Vinschool opened ten classrooms
support for the health sector through programs that pay for poor children at three locations in the Ngay, Tram, and
for medicines, medical exams, and treatment for poor Ro communes in the Dakrong district of Quang Tri Province.
people. This program collaborates with 13 hospitals and All three of the communes receiving help from Vinschool
6 communities throughout the country to provide 19,930 are located in upland terrain where transportation and
health exams. In the process, The Kind Heart Fund helps classroom construction are difficult, putting limits on
to raise community awareness of the need for cancer the quality of instruction. This project was funded by
prevention and early detection. donations from the 2016 Run for Education.
The fund financed free DNA detection to identify war The Quang Tri education project illustrates Vinschool’s
martyrs at the Vinmec Research Institute of Stem Cell commitment to sharing its resources with the neediest
and Gene Technology as a means of paying tribute for the members of the community. It further demonstrates the
sacrifice of their lives for the Motherland and to support Caring and Sharing attribute within the five core traits that
families searching for their martyred relatives. Vinschool strives to cultivate in its students: Inquisitive –
Proactive – Honest – Caring – Respect.
CHAPTER 5 CHAPTER 5
2017 SUSTAINABILITY REPORT
accordance with capital costs. The Company’s present

ECONOMIC situation with regard to capital enables it to select capital
sources in a flexible manner. Ample cash flow from
OPTIMIZATION business operations has allowed the Group to optimize its
capital structure.
FOR SUSTAINABLE Standard & Poors, the international credit-rating agency,
GROWTH in 2017 raised Vingroup’s long-term credit rating from B to

B+ with a “Stable” outlook. Positive ratings by international
credit-rating organizations has increased confidence in the
Group on the part of international investors.
In 2017, the Group implemented concrete programs and VINGROUP LEADS THE
action plans in pursuit of Vingroup’s sustainability strategy REAL ESTATE MARKET AND
for 2020.
8. Vinpearl Land Nha Trang Develops Two MAINTAINS A TOP POSITION
Further details can be found in Chapter 3: Report of
Nature Preserves IN OVERALL BUSINESS
Management on 2017 Business Performance and 2018 Plan
Vinpearl Land Nha Trang has opened Van Hoa Hill, a of Action – Vingroup Operations and Financial Performance PERFORMANCE
35,000 square meter botanical garden with thousands of in 2017 – Page 54.
CBRE data indicates that Vingroup continues to hold the
plants from five continents. In addition to common trees
largest market share in the real estate sector, a share of
and flowers, Van Hoa Hill contains a collection of rare and ENSURING ECONOMIC 15% of apartments sold in Hanoi and Ho Chi Minh City
endangered species listed in the Red Book of Endangered
EFFICIENCY BY MAXIMIZING between 2015 and 2017. This leading share reflects
Species such as the Paphiopedilum Vietnamese and the
Dendrobium Trantuanii. The preserve also includes such
STABLE SOURCES OF REVENUE Vingroup’s strong value chain, which produces attractive,
highly saleable products. In turn, this strong value chain is
ancient trees as the African Baobab tree, the silk floss tree, AND PROFIT grounded in the Group’s service and product ecosystem.
the 500-year-old olive tree. These plants and trees have
Because this ecosystem would be difficult for another
not only entertainment value but also serve an educational Increase Recurring and Stable Revenue and
competitor to replicate, it has contributed to Vingroup’s
purpose as a living library for botanical research. Profit
success, not only in real estate but also in other businesses.
Also part of the Preserve is the King’s Garden, an open
During 2017, recurring revenue increased 32% over the Further details can be found in Chapter 3: Report of
zoo with an area of 50,000 square meters and the home
prior year. This includes revenue from commercial property Management on 2017 Business Performance and 2018 Plan
of hundreds of animal and plant species from around
leasing, consumer retail, hospitality and entertainment, of Action – Vingroup Operations and Financial Performance
the world, many of which are listed in the Red Book: the
healthcare, education, and agriculture. The shift to a focus in 2017, Page 54.
yellow-cheeked gibbon, the stump-tailed macaque, the
on recurring revenues is part of the 2016-2020 strategy.
Indochinese lutung, the Bengal tiger, the leopard, and the
Vingroup increased its focus on these business categories
green peafowl.
while improving product and service quality to retain
9. Adayroi Implemented Sales Campaigns current customers and attract new customers.
to Develop Vietnamese Businesses Further details can be found in Chapter 3: Report of
Management on 2017 Business Performance and 2018 Plan
During 2017, Adayroi launched sales campaigns to promote
of Action –Vingroup Operations and Financial Performance
eco-friendly health products. Throughout the fourth
in 2017 – Page 54.
quarter, Adayroi introduced more than sixty sales programs
with this community-oriented message. Optimize Capital Structure and Increase
capital efficiency
As a distribution channel for Vietnamese businesses,
Adayroi has partnered with over 160 Vietnamese suppliers
Vingroup continuously examines numerous financial
to add their products to this fast-growing e-commerce
products to ensure that free cash flows are used in
network.

CHAPTER 5 CHAPTER 5
SUSTAINABLE CONTRIBUTIONS chemicals and pesticide which are potentially harmful to

the environment, Vinpearl Golf has used salt to prevent
TO THE VIETNAMESE ECONOMY weeds from growing and spreading on golf courses. Unlike
pesticide, when salt is sprayed, golf courses can operate
Vingroup’s growth is reflected in its commitment to
as usual and no threat is posed to the surrounding area or
corporate social responsibility. During 2017, five of
to wild animals.
the Company’s subsidiaries were among the top 100
taxpayers listed by the Vietnam General Department of Sustainable Products and Services
Taxation. Vingroup was honored by the Vietnam Report as
the largest private enterprise and ranked among the Fifty Vingroup products are developed in accordance with
Outstanding Companies of 2017. the Group’s strategy of sustainable development and are
rigorously controlled for quality.
VINGROUP ADHERES TO Further details can be found in Chapter 2: About Vingroup –
ENVIRONMENTAL AND SOCIAL Businesses – Page 26.
PROCUREMENT STANDARDS,
STRENGTHENING CORPORATE
INCLUDING ITS SELECTION OF
GOVERNANCE AND
SUPPLIERS
MANAGEMENT CAPABILITIES
Integrating Sustainability in Supplier
In order to maintain its leadership position in all of its
Selection
business segments, Vingroup is building a lean, flexible,
and efficient governance structure. Strengthening
Vingroup integrates sustainability into every company Adayroi in 2017 became the first company in the Vinhomes Green Bay, Vinhomes Skylake, and Vinhomes
governance and perfecting its corporate structure is a key
activity. Supply chain links from inputs to business e-commerce sector to begin using bio-degradable or the Harmony projects were all designed as green urban
part of Vingroup’s strategy for achieving its business goals.
operations are evaluated along three dimensions: eco-friendly food packaging. Adayroi provides a new areas within ecological zones. Parks and catchment basins
To meet those goals, the Group’s Board of Directors has
Economy, Society, and the Environment. distribution channel for many Vietnamese businesses, with areas from 8ha to 32ha are among the features
set directions as follows:
adding more than 160 suppliers during 2017 who met contributing to natural areas for residents, as well as
With its many existing business areas, and with an
its standards and encouraging its customers to purchase helping to improve the micro climate and create public • Keep the pace of development in line with the
expanding network of new ventures, Vingroup enjoys
environmentally-safe products with sales programs and spaces. Broadleaf trees with spreading foliage are used to organization’s capabilities. To focus on depth and
the support of thousands of domestic and international
community-oriented messages. increase photosynthesis, increase environmental cleaning quality of development rather than breadth.
suppliers. Managing this array of business partners is a key
efficiency and provide shade.
factor in the Group’s sustainable development strategy. VinEco continues to promote its program of collaboration • Streamline the organization and the system of
Each supplier chosen by Vingroup must meet a number with 1,000 farm families to produce safe and clean fruits With projects in environmentally sensitive areas, such regulations and procedures to improve productivity
of criteria, including quality, capacity, legal compliance, and vegetables for the consumers. VinEco helps these as healthcare and hospitality, the environment is always and efficiency.
and environmental impact. Vingroup’s procurement farmers gain access to modern production techniques of paramount concern. Waste produced by medical
• Promote learning by developing training programs
department also examines a potential business partner’s so that they can change traditional agricultural practices, activities is sorted, collected and kept by Vinmec hospital
for leaders at all levels, so that training becomes a
record in the areas of labor relations, human rights, social improve their productivity, and ensure food safety and in accordance with regulations. Vinmec’s large-scale waste
development strategy of the Group.
impact, and environmental protection. hygiene in accordance with VietGAP and GlobalGAP food water treatment systems use a biological treatment tank
standards. and the effluent quality is regularly controlled to meet or • Build the Vingroup Family with a focus on improving
VinCommerce examines the quality control procedures of
exceed regulated environmental standards. In addition, the material and spiritual well-being of its members, to
each of the businesses that supply products to its VinMart
Sustainability in Project Selection and to ensure patient safety, the working environment is safe turn Vingroup into the members’ Common home.
Supermarkets and VinMart+ convenience stores and min-
Development for all of the hospital’s staff. The hospitals also maintain
marts. During 2017, VinCommerce set up five new testing • Research and apply technology in business and
programs in fire prevention and firefighting, laboratory
facilities for products entering its stores, bringing the total Vingroup weighs sustainability as part of its investment governance to create new breakthroughs.
safety, radiation safety, and food safety which comply with
to 25 testing facilities nationwide. Each testing station analysis for every new project. By researching and the highest international standards. Further details can be found in Chapter 4: Corporate
contains modern equipment to take daily samples in order evaluating the risks of every new project, Vingroup can Governance – Report of the Board of Directors – Page 74.
to monitor the safety of food products coming into its store consider factors which may impact the environment and In order to contribute to environmental protection,
networks. In addition to quality control, VinCommerce has society. As part of its feasibility studies, the Group examines Vingroup regularly organize sanitization projects around
set up policies to assist domestic suppliers to improving potential impacts on society and the environment. our development areas during construction, and along
their performance on sustainability. the beach where our resort and hotel projects operate.
Sustainability is then considered throughout the process Vinpearl continuously explores environmental protection
In May of 2017, VinMart launched a new program to of planning and implementing projects. Starting from measures; for example, one of the measures is using salt
support family farms that raise pigs. This program enables the initial design, green structures are prioritized using to remove weed and exotic types of weed surrounding
not-for-profit pork marketing when pork production is in energy-saving designs, extensive landscaping, and a high the golf courses across the whole system. Instead of using
period of over-supply. density of trees.
CHAPTER 5 CHAPTER 5
ONGOING Total number of employees and average income

Employee Benefits and the Work
Environment
DEVELOPMENT OF Number of
Average income In 2017, Vingroup again was listed among Top 10 Best
Year employees
HUMAN CAPITAL (people)
(VND million) Employers by the Vietnamese Trade Union, and honored
as the Best Place to Work in Real Estate, Retail and
2013 8,731 11.5 Tourism by Anphabe, an online network of management
Human capital is the critical resource for business
professionals coordinated by Nielsen, a market research
development. Vingroup employees are experts in each of
2014 17,312 12.7 firm. These awards recognize Vingroup’s commitment
our core business segments, thereby creating an attractive,
to maintaining a modern, professional workplace with
professional and friendly working environment based on 2015 29,192 12.9 competitive benefit policies, balancing the interests of the
the guidelines described below.
employer and employees.
2016 36,147 13.2
PROTECT EMPLOYEE RIGHTS Vingroup’s work schedule
AND EQUALITY 2017 42,878 13.2
Vingroup employees work eight hours per day. Non-
Social, Health, and unemployment insurance are provided
customer-facing or office employees work five and one-
Vingroup respects the contributions made by all in accordance with applicable laws. In addition, the Group
half days per week, while customer-facing or service
employees, regardless of nationality, age, gender, or also engaged Bao Viet Group to develop health insurance
2017 employee distribution by education (People) employees work six days per week. All employees receive
educational background. The Group manages and programs for employees.
paid public holidays, vacation and personal days in
promotes employees on the basis of their productivity The Group’s employee benefit programs include gifts for
Qualification Number of employees accordance with the Labor Law.
and performance, providing equal opportunity for all employees in conjunction with significant personal events,
employees so that all can develop their abilities to the full Working conditions
as well as recreational programs that bring employees
extent of their potential. Ph.D. and Master 1,030 together to promote teamwork and healthy lifestyles. In
Vingroup is committed to maintaining a work environment
where each employee can realize his or her full potential. addition, support is provided for the children of employees
Recruitment and Human Resources Strategy University 11,990
We provide all employees with comfortable, modern in the form of recognition and awards, summer camps, and
Below offices and regular health checks. Customer-facing or skills training programs. Multi-sport recreation complexes
• Vingroup recruits capable candidates who seek to work 29,858
university-level
in a fast-paced, dynamic, creative, and professional service employees are further supplied with uniforms and have been built at the Group’s headquarters and several
environment. work in environments that meet safety and sanitation locations where there are large company operations. Other
standards. employee benefit programs include: an emergency fund,
2017 employee distribution by age (People)
• The recruitment process at Vingroup is fair and merit an employee loan fund that extends zero-interest loans
– based. Labor regulations
for those facing personal hardship, and a bond issuance
• The Group has created a modern, efficient work Age Number of employees It is Group policy to maintain an Employee Code of program with superior interest rates for employees only.
environment that balances business needs with Conduct that fully complies with all labor regulations.
Incentive scheme
employee goals. 18 – 30 29,214
Employee allowances
Vingroup has an incentive system for the Corporate Office
• Vingroup invests in human capital through the 31 – 40 10,049 • Mobile phone service, where required for specific jobs and all Group companies. We also reward employees with
successful implementation of its training policies outstanding achievements in the form of performance
41 – 50 2,738 • Meals
which underline new knowledge and skill upgrades. awards and bonuses.
The Group also encourages promotions from within. • Vehicle fuel
51 – 60 773
Participation of female employees is visible within
• Employees are given the opportunity to attend training • Transportation to and from work management and operations, from the central to
Above 60 104
programs, to gain experience in different jobs through grassroots level of the Group.
Wages, insurance and welfare
rotation and job postings, in order to gain practical Total 42,878
knowledge about the Group’s business operations. Vingroup salary levels are higher than other companies in
the same sector. In the second half of the third quarter
• Managers are required to serve as facilitators to provide
2017 employee distribution by gender (People) of 2016, the Group revised the minimum remuneration to
technical training to less experienced employees. In
VND 5 million (exclusive of meal allowances), as well as
additon, Vingroup frequently engages outside experts
reformed the allowance and incentive payment scheme
to provide training. Total Male Female
on the basis of employee performance and contribution.
To attract and retain talent, the Group also applies a
42,878 21,517 (50.2%) 21,361 (49.8%) compensation policy that is particularly competitive for
well-qualified and experienced employees in relevant
fields.
CHAPTER 5 CHAPTER 5
FOSTER TEAM SPIRIT BY

ORGANIZING COMMUNITY
INVOLVEMENT AND EMPLOYEE
CHARITABLE ACTIVITIES
The Group is interested in promoting corporate activities
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.
Vingroup also gives special attention to further develop

employee fitness and collaboration by organizing 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.
In addition to corporate programs, Vingroup encourages

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.
With the desire not only to build good properties but also
to raise the living standards of the Vietnamese people,
BUILD A STRONG CORPORATE DELIVER HIGHEST QUALITY OF 1. A series of 10 training topics on leadership
Vinhomes has pioneered in community development, as
enhancement for the all managers of Vingroup
CULTURE EMPLOYEE TRAINING demonstrated by community engagement in collective
2. Professional Shopping Center Management (PSCM) in activities. In addition to annual Tet events, Vinhomes also
With the goal of making Vingroup into the Common Home Vingroup continues to implement extensive training Singapore offers initiatives such as Green Saturday, training standard
of employees, Vingroup attaches great importance to programs with the aim of developing employee capabilities.
building a professional and cohesive working environment. In 2017, 800,000 staff members participated in training 3. VinMart+ Service, a training program for employees of house cleaners, Air Conditioning Maintenance, and free
VinMart+, VinMart, and VinPro swimming lessons for children.
During July 2017 survey, 80.4% of employees rated their programs.
work environment very satisfactory or satisfactory. In
Forms of training are also diverse, from focused training,
4. Nursing training in collaboration with Israel’s MSR
2017, Vingroup is rated Best Workplace in the categories
of Real Estate, Architecture, Design, Retail, Wholesale,
online training to hands-on activities and coaching. In 5. Kouhoukai Service Training Program from Japan
addition, the standardization of training materials has also
Trading, Food & Beverage, Education, and Training.
been strengthened, especially the standardized guidelines
6. Capacity Development Program for the Elite Teacher
by the University of Waikato, New Zealand
Vingroup also holds the record of being the only company
for operating procedures. Skill tests were conducted
to win this award in these categories.
by VinMart, VinPro, VinMart+ and Vinpearl in order to 7. Training Program to Qualify Teachers to Launch 21st
Century Skills into Primary and Secondary Education
Vingroup cohesion and pride are spread widely and deeply accurately assess the actual capacity of employees and to
through programs located in each part of the country. As create suitable training programs. In 2017, Vingroup continues to implement learning
one of the activities in 2017, the Seminar series entitled regulations with the aim of promoting learning and
Vingroup has organized professional training programs
“We are the Vingroup Great Family” and the Vingroup improving the quality and effectiveness of training. In
for business production and career development for all
Common Standards training program attracted nearly order to encourage employees to continuously upgrade
job titles. Many effective training programs promote the
38,000 attendees, and “Red Dye Vingroup” attracted their skills, Vingroup encourages the P&Ls to win the P&L
culture of learning in Vingroup. These include:
14,500 participants. Academic Award with special benefits.
CHAPTER 5 CHAPTER 5
MANAGING Further details can be found in Chapter 5: Sustainable

Development – 2017 Highlights – Page 96.
teach, and sponsor young people in the fields of business,
administration, science, sports, and the arts. During 2017,
the country. Solidarity Fund has organized programs
to help flood victims with flood-proof houses, and
CORPORATE SOCIAL Through its concrete actions, Vingroup has created

a spillover effect to all businesses to promote the
the Fund provided internships for 53 students in Vingroup.
In September 2017, VinTalent sponsored the Student with
has built roads and bridges as well as health clinics
and classrooms in order to stabilize the daily life
RESPONSIBILITY development of society. Vingroup’s retail and agricultural

products have a preferential pricing mechanism, which
Five Talents and the January Star scholastic awards, which
were given to 163 recipients.
for people in flood-prone provinces. The Fund also
sponsors the Naval Command to enhance its capacity
to protect the sovereignty of the Spratly Islands.
DEVELOP PRODUCTS THAT provides an opportunity for the majority of people to access The Promotion Fund for Vietnamese Football Talent
In addition, during the past year, the Fund has also
clean food in their daily lives. In the process of developing (PVF), established and sponsored in 2009 by Vingroup,
MEET COMMUNITY STANDARDS the project, Vingroup is always ready to go along with has trained 175 young football players through nine
participated in a number of other donor-supported
activities, such as support for local foundations, and
the locality in investing in essential infrastructure such batches since inception. PVF teams have consistently
Vingroup’s goal is to provide clean, environmentally- sponsored hundreds of patients with severe illness
as roads, electricity, water and public works to meet the achieved good results at the Youth Championships at both
friendly products in every business segment. Vingroup and those in particularly difficult circumstances who
needs of residential development. the national and regional levels. In 2017, PVF students
products and services, including real estate developments, send letters to the Fund for help.
obtained high achievements in domestic tournaments
resorts, and the Safari are all community-oriented.
and joined the Vietnam national football team. Their
partcipatiion contributed to the national team’s
achievements in the international tournaments, and in
turn assisted the development the country’s football
foundation.
Improving Community Welfare
Through the Solidarity Fund, Vingroup has supported

many social activities throughout the country. In 2017,
The Kind Heart Fund has implemented programs to build
534 houses of compassion, support animal breeding
techniques for the poor, to create more income and to
help people escape poverty in a sustainable way, build
14 schools with boarding houses for students in upland
DEMONSTRATE A SENSE districts, support Vietnamese heroic mothers, sponsor
Further details can be found in Chapter 3: Report of

OF SOCIAL RESPONSIBILITY free DNA testing to identify the martyrs at the Institute
Management on 2017 Business Performance and 2018 Plan TOWARDS BUSINESS PARTNERS, of Research at the Vinmec hospitals, cancer screening,
construction and restoration of cultural works, and
of Action – Vingroup Operations and Financial Performance CUSTOMERS, COLLEAGUES AND educational scholarships. The Phat Tich Charity and Career
in 2017 – Page 54
THE COMMUNITY Center is located in Phat Tich Commune, Tien Du District,
RAISE LEVEL OF SOCIAL WELL- Bac Ninh Province. It is founded and sponsored by the
Fairness and Transparency with Business
BEING IN AREAS WHERE THE Partners
Kind Heart Fund, which provides care and education for
nearly 120 orphans and the elderly with no one to rely on.
GROUP OPERATES
In partnerships, Vingroup emphasizes fairness, Also in 2017, the Fund continued to provide regular
In 2017, Vingroup continues to expand the presence of
transparency, and mutual benefits for all involved parties, monthly stipend to nearly 200 individuals and their
Vingroup brands to provinces and cities to improve the
in accordance with applicable regulations and market families in difficult circumstances, and regularly provided
society. Large-scale, affordable public real estate projects
practices. Each contract signed between the Group or free meals to poor patients in public hospitals. The Kind
will be located in the city’s suburbs, creating more jobs and
its P&Ls and their counterparts contains an anti-bribery Heart Fund also provided monthly support for 10 temples
social development. Vincom+ models with moderate retail
clause that clearly states the procedures for dealing with that are raising foster children in some provinces in the
area can be deployed in many towns and cities across the
attempted bribery. country, funded the cost of living and tuition fees for more
country to support changing consumption habits.
than 3,000 good students that were in financial difficulty,
Vingroup’s corporate social responsibility is also reflected Investing in Education and Youth and sponsored 312 Mother Vietnam Heroes and 290
in the decision to convert Vinmec and Vinschool into Development to Prepare the Next former Military volunteers without support in provinces
non-profit models, and to invest in VinEco’s high-tech Generations for Vietnam and cities nationwide. Everybody supported by the Fund
agriculture with the goal of bringing safe food to the received frequent attention and contact, and motivation
The Vietnam Talent Promotion and Development Fund
people of Vietnam. and care.
(VINTALENT) runs the Talent Pool Project to select,
During 2017, many flash floods and typhoons caused
great damage to the people in flood-prone provinces in VINPEARL GOLF NHA TRANG
CHAPTER 5 CHAPTER 5
ENVIRONMENTAL Control Board, the Infection Control Council, and the

Environmental Safety Board.
PROTECTION In the field of agriculture, aware of the link between the

product and the environment, VinEco advocates limiting
Vingroup places great emphasis on energy conservation as
the use of underground water, actively investing in water
a means of achieving sustainable development throughout
pumping stations from rivers and lakes, and building
the Group. As a pioneer in real estate development and
water treatment zones in accordance with the standard
hospitality, the Group focuses on creating a green working
of irrigation water, such as Cu Chi, Tam Phuoc, Da Loan,
environment, not only for its staff but also for customers.
Hai Phong, Quang Ninh and some other farms. All of
In our ongoing operations, the Group aims to raise staff
VinEco’s farms are using advanced drip irrigation to save
awareness of environmental protection, addressing
climate change, and managing waste treatment systems
water, saving 50% of irrigation water compared to regular
ADHERE TO THE HIGHEST
irrigation. The total area used for advanced drip irrigation
at Vingroup facilities. These steps ensure that Vingroup is
accounts for 80% of the cultivated area. Waste issues
STANDARDS IN CONSTRUCTION,
meeting environmental standards, minimizing energy use,
are also of particular concern. VinEco has built garbage AND DESIGN PRODUCTS WITH
and reducing greenhouse gas emissions.
disposal, treatment, and processing areas into organic “GREEN LIVING” IN MIND
waste for reuse on all farms throughout the country. VinEco
MINIMIZE ENERGY AND WATER has completed 10 composting workshops in 10 farms; Emphasis on environmental protection extends from
USE AND NOISE POLLUTION IN three farms in Cu Chi, Taiwan, and Tam Dao are operating the project design phase through construction and
ALL OF THE GROUP’S PROJEC each month to provide 20 to 30 tons of compost for land operation at all Vingroup properties: hotels, shopping
improvement. VinEco also uses hydroponic greenhouses malls, urban complexes, offices, and residential buildings.
At all facilities in the system, Vingroup controls the to circulate water for irrigation and for natural ventilation. Planning and architectural design teams are dedicated to
consumption of energy, electricity and water, and This allows optimal control of indoor temperatures while achieving environmental protection in every aspect of
launches energy saving initiatives to reduce consumption. minimizing power consumption. their work, from maximizing the efficient use of space,
Public lighting is turned on by the hour, and by the area, to the creation of modern living and resort complexes,
to avoid waste, at the same time LED bulbs are used to to energy efficiency in building design and construction.
save energy. Green areas are the hallmarks of Vingroup projects. With
In the fourth quarter of 2017, Vinpearl Phu Quoc has low-density housing, plentiful trees, and water features
been able to control its energy costs by rearranging its occupying a large proportion of the projects, there are
operation plans, such as strict control of boiler operation, many features to highlight in these modern living spaces.
classification of non-thermal laundry items, thus saving Projects such as Vinhomes Central Park, Vinhomes Golden
an average of 15-20% of the oil cost per month. In River, Vinhomes Green Bay, Vinhomes The Harmony and
addition, at all Vinpearl Resort hotels, the entire passenger Vinhomes Skylake have maintained “green” spaces, making
transport and luggage on the project site operated by full use of riverfront land to build eco-friendly, walkable
electric batteries instead of gasoline to reduce direct complexes with large public parks. Vingroup construction
emissions into the environment. The re-use of water as

OBSERVE ENVIRONMENTAL creates green focal points in every city across Vietnam.
well as wastewater treatment is studied and processed PROTECTION PLANS IN EACH

right from the design stage. Vinpearl projects use a system OF THE BUILDINGS THAT THE
of purification, treatment of bio-waste water and post-
treatment wastewater to irrigate plants. In Nha Trang, 75%
GROUP MANAGES
of daily water is produced by the lake itself and handled In real estate projects, environmental protection is
carefully. In Phu Quoc, the system of lakes has a scientific reflected in low-density designs and an emphasis on
design to store water in the dry season. harmony between the projects and their surroundings.
Optimization of visibility and natural light are found at
Vinmec emphasizes the protection of both hospital and
Vinhomes Skylake, Vinhomes Golden River, and Vinhomes
community environments. Solid waste collection facilities
Metropolis. With central air-conditioning, low-E glass
are equipped with modern technology. Staff members
lenses to restrict UV light, and electricity consumption
are trained to monitor waste streams to limit amounts
controls, these projects now comply with many advanced
discharged into the environment. Several hospital
environmental standards.
departments review and monitor compliance with the
new standards: the Professional Council, the Quality
CHAPTER 5 CHAPTER 5
MANAGING ENGAGING STAKEHOLDERS
SUSTAINABILITY
Vingroup aims to balance the interests of its stakeholders, 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 VALUES BROUGHT BY VINGROUP
Shareholders and • Business performance

SUSTAINABILITY ACCOMPLISHING BUSINESS GOALS IN ORDER TO investors • Dividend payment
GROW EFFECTIVELY AND SUSTAINABLY
STRATEGY FOR 2020 • Transparent and fair corporate governance to protect shareholder interests
• Maximize growth in ways that are sustainable • Adequate and timely disclosure of information, promptly seeking shareholders consent for
Vingroup’s senior management
important matters through extraordinary shareholder meetings when required
believes that long-lasting sustainable • Maintain a leadership position in the real estate market, as well as in all the
value and social contributions can other business segments • Frequent meetings, Vingroup website, mailboxes ir@vingroup.net, ir@vincom.com.vn,
ir@vinhomes.vn, and Investor Relations Quarterly Newsletters enable investors to meet and
only be accomplished by achieving
• Make sustainable contributions to the economy understand the Group’s strategy from senior management.
sustainable economic growth.
Leveraging our commercial success, • Observe applicable procurement, environmental, and social standards, and
the Group now has the resources Customers • Commitment to quality of products and services
• Strengthen corporate governance and management capability
to execute our strategies in human • Highly-qualified consultants to provide adequate and accurate information
capital development, environmental ONGOING DEVELOPMENT OF HUMAN CAPITAL • Model units for prospective buyers of residential properties; relentless improvements in
protection, and corporate social design, landscaping and amenities
• Protect employee rights and equality
responsibility. The Group’s • Additional benefits for customers using VinID Card (Vingroup Loyalty Program)
sustainability strategy for 2020 • Build a strong and cohesive corporate culture
• Shopping mall tenants benefit from regular large-scale events to attract shoppers
requires Vingroup to strike a balance
• Focus on sustainable development of the human resources, and
among the interests of stakeholders, • Vinhomes residents enjoy frequent community programs to connect with one another in a
• Foster team spirit by organizing community involvement and employee harmonious environment
following the four principles
charitable activities. • 24/7 hotline to provide information and assistance on the Group’s products and services.
MANAGING CORPORATE SOCIAL RESPONSIBILITIES

Local community • Environmental and community impact assessment studies prior to implementation of real
• Develop products that meet community standards estate developments
• Raise the level of social well-being in areas where the Group operates, and • Frequent dialogues with local authorities regarding measures to improve the local
environment
• Demonstrate a sense of social responsibility towards business partners,
customers, colleagues and the community. • Assist regulatory authorities in developing local infrastructure
• Mobilize local work force, create new jobs and raise level of social well-being in areas where
ENVIRONMENTAL PROTECTION the Group operates.
• Minimize energy and water use and noise pollution in all of the Group’s
projects Regulators • Participate in conferences and seminars with regulators
• Member of many trade associations including the World Economic Forum (“WEF”) and
• Observe environmental protection plans in each of the buildings that the Vietnamese Association of Enterprises with Foreign Investments.
Group manages, and
• Contribute comments on draft policies and legal documents
• Adhere to the highest standards in construction, and design our products
with “Green Living” in mind. Employees Further details can be found in Chapter 5: Sustainable Development – 2017 Sustainability Report
– Ongoing development of human capital – Page 102.
Business partners • 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.
CHAPTER 5 CHAPTER 5
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.
• For shareholders and investors: economic efficiency,

presence in the market
• For customers: safety and health, product responsibility
• For local communities: wastewater and waste, energy
• For management agencies: compliance, anti-

corruption. public policy
• For employees: equal opportunity, fair Remuneration,

Employment, Education and Training, Human Rights
• For partners and suppliers: equal opportunity, supplier

review
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.
• Senior management commitment
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.
• Integration of sustainability measures into

management and operational practices
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 VINPEARL SKY WHEEL – VINPEARL LAND
policy to require an environmental and community impact NHA TRANG
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. Vingroup has already received recognition from the
Business Council for Sustainable Development as one of
• Training
the Top Ten Sustainable Companies in Vietnam in 2017.
To ensure that sustainability objectives are achieved, the We view our current progress in sustainability as an early
Group frequently provides training to all employees to step on a long journey to achieve our mission “to create a
introduce relevant knowledge and skills. better life for the Vietnamese people.”
VINGROUP
ANNUAL
REPORT
2017
GO GLOBAL
VINPEARL HA LONG BAY RESORT

CHAPTER 6
CONSOLIDATED FINANCIAL STATEMENTS
GENERAL INFORMATION
THE COMPANY SUPERVISORY BOARD

Vingroup Joint Stock Company (“the Company”) is a joint stock company established in Vietnam pursuant to the Business Members of the Supervisory Board during the year and at the date of this report are:
Registration Certificate No. 0103001016 issued by the Hanoi Department of Planning and Investment on 3 May 2002 and
the Business Registration Certificate No. 0101245486 re-issued on 12 May 2010. The Company subsequently received
06
CHAPTER amended Enterprise Registration Certificates, with the latest amendment being the 64th amended Enterprise Registration
Certificate dated 28 February 2018.
Mr. Nguyen The Anh
Mr. Dinh Ngoc Lan

Head of the Supervisory Board
Member
The Company’s shares are officially listed on the Ho Chi Minh City Stock Exchange (“HOSE”) from 19 September 2007 Ms. Do Thi Hong Van Member
pursuant to Decision No.106/QD-TTGDHCM issued by the Director of HOSE on 7 September 2007.
Ms. Nguyen Thi Van Trinh Member resigned on 26 April 2017
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.
CONSOLIDATED 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
MANAGEMENT
FINANCIAL ward, district 1, Ho Chi Minh city, Vietnam.
Members of management during the year and at the date of this report are:
STATEMENTS BOARD OF DIRECTORS

Mr. Nguyen Viet Quang Chief Executive Officer appointed on 25 February 2018
General information 116 Members of the Board of Directors during the year and at the date of this report are:
Ms. Duong Thi Mai Hoa Chief Executive Officer resigned on 25 February 2018
Report of management 118 Mr. Pham Nhat Vuong Chairman
Ms. Mai Huong Noi Deputy Chief Executive Officer
Independent auditors’ report 119 Mr. Le Khac Hiep Vice Chairman
Mr. Pham Van Khuong Deputy Chief Executive Officer
Consolidated balance sheet 120 Ms. Pham Thuy Hang Vice Chairwoman
Ms. Nguyen Thi Diu Deputy Chief Executive Officer
Consolidated income 124 Ms. Pham Thu Huong Vice Chairwoman
statement Ms. Duong Thi Hoan Deputy Chief Executive Officer
Ms. Nguyen Dieu Linh Vice Chairwoman
Consolidated cash flow 125
Mr. Ling Chung Yee Roy Member
statement
Ms. Mai Huong Noi Member resigned on 20 April 2017
Notes to the consolidated 127
financial statements Mr. Nguyen Viet Quang Member appointed on 20 April 2017 LEGAL REPRESENTATIVE
Appendix 1 – The Group 206 Mr. Marc Villiers Townsend Member The legal representative of the Company from 1 January 2017 to 25 February 2018 is Ms. Duong Thi Mai Hoa and from 25
structure as at 31 December Mr. Joseph Raymond Gagnon Member February 2018 to the date of this report is Mr. Nguyen Viet Quang.
2017
AUDITOR
The auditor of the Company is Ernst & Young Vietnam Limited.

CHAPTER 6 CHAPTER 6
CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS
REPORT OF MANAGEMENT INDEPENDENT AUDITORS’ REPORT

Management of Vingroup Joint Stock Company (“the • prepare the consolidated financial statements on To:
Company”) is pleased to present this report and the the going concern basis unless it is inappropriate to
The Shareholders of Vingroup Joint Stock Company
consolidated financial statements of the Company and its presume that the Group will continue its business.
We have audited the accompanying consolidated financial An audit involves performing procedures to obtain
subsidiaries (collectively referred to as “the Group”) for the
Management is responsible for ensuring that proper statements of Vingroup Joint Stock Company (“the audit evidence about the amounts and disclosures in
year ended 31 December 2017.
accounting records are kept which disclose, with Company”) and its subsidiaries (collectively referred to as the consolidated financial statements. The procedures
reasonable accuracy at any time, the consolidated financial “the Group”) as prepared on 10 April 2018 and set out on selected depend on the auditors' judgment, including
MANAGEMENT’S position of the Group and to ensure that the accounting pages 6 to 99, which comprise the consolidated balance the assessment of the risks of material misstatement
RESPONSIBILITY IN RESPECT OF records comply with the applied accounting system. It is sheet as at 31 December 2017, the consolidated income of the consolidated financial statements, whether due
THE CONSOLIDATED FINANCIAL also responsible for safeguarding the assets of the Group statement and the consolidated cash flow statement for to fraud or error. In making those risk assessments, the
the year then ended and the notes thereto. auditor consider internal control relevant to the Group's
STATEMENTS and hence for taking reasonable steps for the prevention
preparation and fair presentation of the consolidated
and detection of fraud and other irregularities. Responsibility of the Company’s management
financial statements in order to design audit procedures
Management is responsible for the consolidated financial Management confirmed that it has complied with the The Company’s management is responsible for the that are appropriate in the circumstances, but not for the
statements of each financial year which give a true and above requirements in preparing the accompanying preparation and fair presentation of these consolidated purpose of expressing an opinion on the effectiveness
fair view of the consolidated financial position of the consolidated financial statements. financial statements in accordance with Vietnamese of the Group's internal control. An audit also includes
Group and of the consolidated results of its operations Accounting Standards, Vietnamese Enterprise Accounting evaluating the appropriateness of accounting policies used
and its consolidated cash flows for the year. In preparing STATEMENT BY MANAGEMENT System and the statutory requirements relevant to the and the reasonableness of accounting estimates made
those consolidated financial statements, management is preparation and presentation of the consolidated financial by the Company’s management, as well as evaluating
required to: Management does hereby state that, in its opinion, the statements, and for such internal control as the Company’s the overall presentation of the consolidated financial
accompanying consolidated financial statements give a management determines is necessary to enable the statements.
• select suitable accounting policies and then apply preparation and presentation of the consolidated financial
true and fair view of the consolidated financial position of We believe that the audit evidence we have obtained is
them consistently; statements that are free from material misstatement,
the Group as at 31 December 2017 and of the consolidated sufficient and appropriate to provide a basis for our audit
• make judgements and estimates that are reasonable whether due to fraud or error.
results of its operations and its consolidated cash flows opinion.
and prudent; for the year then ended in accordance with Vietnamese Auditors' responsibility
Opinion
• state whether applicable accounting standards have Accounting Standards, Vietnamese Enterprise Accounting Our responsibility is to express an opinion on these
In our opinion, the consolidated financial statements
been followed, subject to any material departures System and the statutory requirements relevant to the consolidated financial statements based on our audit.
give a true and fair view, in all material respects, of the
disclosed and explained in the consolidated financial preparation and presentation of the consolidated financial We conducted our audit in accordance with Vietnamese
consolidated financial position of the Group as at 31
statements; and statements. Standards on Auditing. Those standards require that we
December 2017, and of the consolidated results of its
comply with ethical requirements and plan and perform
operations and its consolidated cash flows for the year
the audit to obtain reasonable assurance about whether
then ended in accordance with Vietnamese Accounting
For and on behalf of management: the consolidated financial statements are free from
Standards, Vietnamese Enterprise Accounting System and
material misstatement.
the statutory requirements relevant to preparation and
presentation of the consolidated financial statements.
Ernst & Young Vietnam Limited

Tran Phu Son Trinh Xuan Hoa
Deputy General Director Auditor

Nguyen Viet Quang
Audit Practising Registration Certificate No. 0637-2018- Audit Practising Registration Certificate No.0754-2018-
Chief Executive Officer
004-1 004-1
Hanoi, Vietnam
Hanoi, Vietnam
10 April 2018
10 April 2018
CHAPTER 6 CHAPTER 6
CONSOLIDATED BALANCE SHEET

Currency: VND
As at 31 December 2017 Beginning balance

Code ASSETS Notes Ending balance
(Restated)
Currency: VND 200 B. NON-CURRENT ASSETS 113,545,441,345,980 90,499,384,229,533
Beginning balance 210 I. Long-term receivables 563,644,449,382 465,506,617,197

Code ASSETS Notes Ending balance
(Restated)
215 1. Long-term loan receivables 8 269,026,341,080 58,989,915,115
100 A.CURRENT ASSETS 100,246,615,638,617 92,976,241,715,191 216 2. Other long-term receivables 9 294,618,108,302 406,516,702,082
110 I. Cash and cash equivalents 5 8,141,750,027,686 9,833,332,219,401 220 II. Fixed assets 35,649,944,002,033 26,880,911,532,443
111 1.Cash 6,182,781,185,541 6,243,230,621,899 221 1. Tangible fixed assets 14 34,973,533,341,870 26,066,821,876,593
112 2. Cash equivalents 1,958,968,842,145 3,590,101,597,502 222 Cost 40,845,582,676,116 30,165,242,182,483
120 II. Short-term investments 6 672,569,770,071 494,156,904,807 223 Accumulated depreciation (5,872,049,334,246) (4,098,420,305,890)
121 1. Held-for-trading securities 6.1 32,369,112,000 32,369,112,000 227 2. Intangible fixed assets 15 676,410,660,163 814,089,655,850
122 2. Provision for held-for-trading securities 6.1 (19,505,232,000) (18,996,660,000) 228 Cost 1,222,264,361,922 1,173,632,007,764
123 3 Held-to-maturity investments 6.2 659,705,890,071 480,784,452,807 229 Accumulated amortisation (545,853,701,759) (359,542,351,914)
130 III. Current accounts receivable 27,335,112,175,074 18,254,656,305,786 230 III. Investment properties 16 18,198,420,908,900 17,362,127,296,491
131 1. Short-term trade receivables 7.1 5,744,460,450,918 3,170,762,775,815 231 1. Cost 20,842,351,193,783 19,186,357,270,103
132 2. Short-term advances to suppliers 7.2 8,675,566,825,227 5,229,186,165,035 232 2. Accumulated depreciation (2,643,930,284,883) (1,824,229,973,612)
135 3. Short-term loan receivables 8 7,684,239,828,536 3,224,258,638,813 240 IV. Long-term assets in progress 37,492,138,281,596 34,229,427,585,378
136 4. Other short-term receivables 9 5,748,899,913,388 6,809,970,413,275 242 1. Construction in progress 18 37,492,138,281,596 34,229,427,585,378
137 5. Provision for doubtful short-term receivables 10 (518,054,842,995) (179,521,687,152) 250 V. Long-term investments 6,485,785,915,017 3,360,331,864,355
140 IV. Inventories 11 56,058,815,191,085 55,175,220,368,884 1. Investments in associates, jointly controlled

252 19.1 2,439,624,600,795 1,730,283,476,020
entities
141 1. Inventories 56,403,215,413,508 55,272,215,830,425
253 2. Investments in other entities 19.1 2,176,543,861,811 1,616,241,288,531
149 2. Provision for obsolete inventories (344,400,222,423) (96,995,461,541)
254 3. Provision for long-term investments 19.1 (50,382,547,589) (56,192,900,196)
150 V. Other current assets 8,038,368,474,701 9,218,875,916,313
255 4. Held-to-maturity investments 19.2 1,920,000,000,000 70,000,000,000
151 1. Short-term prepaid expenses 12 4,758,744,122,155 3,123,024,713,156
260 VI. Other long-term assets 15,155,507,789,052 8,201,079,333,669
152 2. Value-added tax deductible 1,099,347,699,941 972,722,775,130
261 1. Long-term prepaid expenses 12 3,061,950,076,912 2,252,711,733,160
153 3. Tax and other receivables from the State 22 213,678,380,799 111,457,535,408
262 2. Deferred tax assets 35.3 337,979,519,507 328,604,798,935
155 4. Other current assets 13 1,966,598,271,806 5,011,670,892,619
268 3. Other long-term assets 13 7,115,047,177,440 -
269 4. Goodwill 20 4,640,531,015,193 5,619,762,801,574
270 TOTAL ASSETS 213,792,056,984,597 183,475,625,944,724
CHAPTER 6 CHAPTER 6
CONSOLIDATED BALANCE SHEET CONSOLIDATED BALANCE SHEET
As at 31 December 2017 As at 31 December 2017
Currency: VND Currency: VND
Beginning balance
Code RESOURCES Notes Ending balance Beginning balance Code RESOURCES Notes Ending balance
(Restated)
300 C. LIABILITIES 161,235,046,806,942 135,184,454,789,211 400 D. OWNERS' EQUITY 52,557,010,177,655 48,291,171,155,513
310 I. Current liabilities 123,624,630,823,022 97,627,931,086,891 410 I. Capital 28.1 52,557,010,177,655 48,291,171,155,513
311 1. Short-term trade payables 21.1 8,245,460,364,882 6,458,154,238,573 411 1. Issued share capital 28.1 26,377,079,540,000 26,377,079,540,000
312 2. Short-term advances from customers 21.2 54,822,434,640,779 47,537,280,868,648 411a Shares with voting rights 26,377,079,540,000 26,377,079,540,000
313 3. Statutory obligations 22 4,933,105,236,661 7,366,546,933,741 412 2. Share premium 28.1 2,651,165,167,904 2,504,959,737,448
314 4. Payables to employees 674,309,918,834 418,583,692,189 415 3. Treasury shares 28.1 (2,974,924,074,484) (2,974,924,074,484)
315 5. Short-term accrued expenses 23 10,416,596,543,393 8,454,261,883,875 420 4. Other funds belonging to owners’ equity 28.1 37,845,114,930 32,845,114,930
318 6. Short-term unearned revenues 24 1,755,431,476,536 1,138,838,659,058 421 5. Undistributed earnings 28.1 5,583,084,564,118 1,887,422,518,069
319 7. Short-term other payables 25.1 24,460,922,418,130 20,468,556,855,796 421a Undistributed earnings by the end of prior year 1,882,422,518,069 402,299,862,165
320 8. Short-term loans and debts 26.1 18,140,968,057,370 5,590,652,159,634 421b Undistributed earnings of current year 3,700,662,046,049 1,485,122,655,904
321 9. Short-term provisions 27 175,402,166,437 195,055,795,377 429 6. Non-controlling interests 28.1 20,882,759,865,187 20,463,788,319,550
330 II. Non-current liabilities 37,610,415,983,920 37,556,523,702,320 440 TOTAL LIABILITIES AND OWNERS’ EQUITY 213,792,056,984,597 183,475,625,944,724
336 1. Long-term unearned revenues 24 5,535,359,362,778 2,389,764,581,482
337 2. Other long-term liabilities 25.2 712,750,848,054 640,119,050,942
338 3. Long-term loans and debts 26.2 31,219,525,897,044 34,168,826,603,603
341 4. Deferred tax liabilities 35.3 142,779,876,044 357,813,466,293
Van Thi Hai Ha Nguyen Thi Thu Hien Nguyen Viet Quang
Preparer Chief Accountant Chief Executive Officer
10 April 2018
CHAPTER 6 CHAPTER 6
CONSOLIDATED INCOME STATEMENT CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2017 For the year ended 31 December 2017
Code ITEMS Notes Current year Previous year (Restated) Code ITEMS Notes Current year Previous year (Restated)
1. Revenue from sale of goods and rendering of I. CASH FLOWS FROM OPERATING
01 29.1 89,392,047,933,230 57,670,387,202,439
services
ACTIVITIES
02 2. Deductions 29.1 (41,999,335,317) (56,043,536,545)
3. Net revenue from sale of goods and 01 Profit before tax 9,114,281,478,576 6,737,836,230,994
10 29.1 89,350,048,597,913 57,614,343,665,894
rendering of services Adjustments for:
11 4. Cost of goods sold and services rendered 30 (62,796,326,957,038) (40,184,632,606,036) Depreciation of fixed assets and investment
5. Gross profit from sale of goods and rendering 02 properties and amortisation of intangible assets 40 3,985,433,267,539 3,311,557,843,562
20 26,553,721,640,875 17,429,711,059,858
of services (including amortisation of goodwill)
21 6. Finance income 29.3 1,636,951,439,612 6,762,384,524,143 03 Provisions 689,528,177,247 141,826,931,929
22 7. Finance expenses 31 (3,786,983,558,714) (5,389,034,072,187) 04 Foreign exchange losses/(gains) 50,260,047,814 (64,931,257,744)
23 In which: Interest expenses (3,401,633,686,717) (4,308,066,793,490)
05 Profits from investing activities 40 (1,015,255,359,806) (5,967,033,063,420)
24 8. Shares of profit of associates, joint-ventures 19.1 44,400,927,597 19,823,588,740
06 Interest expenses 31 3,401,633,686,717 4,308,066,793,490
25 9. Selling expenses 32 (8,150,455,992,627) (6,672,815,695,018)
Operating profit before changes in working
26 10. General and administrative expenses 32 (6,852,447,761,955) (5,481,841,090,812) 08 16,225,881,298,087 8,467,323,478,811
capital
30 11. Operating profit 9,445,186,694,788 6,668,228,314,724 09 Increase in receivables (6,730,252,290,761) (335.155.028.311)
31 12. Other income 33 434,964,045,806 688,479,678,357
10 Increase in inventories (1,227,813,074,755) (13,486,963,673,195)
32 13. Other expenses 33 (765,869,262,018) (618,871,762,087)
Increase in payables (other than interest,
11 18,034,651,110,034 18,604,163,811,522
40 14. Other (loss)/profit 33 (330,905,216,212) 69,607,916,270 corporate income tax)
50 15. Accounting profit before tax 9,114,281,478,576 6,737,836,230,994 12 Increase in prepaid expenses (2,563,290,205,702) (2,720,086,885,910)
51 16. Current corporate income tax expense 35.1 (3,731,381,559,479) (2,534,168,929,813) 14 Interest paid (3,062,709,959,110) (3,736,500,947,012)
52 17. Deferred tax income 35.3 272,041,872,129 254,477,855,941
15 Corporate income tax paid 22 (3,890,618,182,474) (2,294,234,119,932)
60 18. Net profit after tax 5,654,941,791,226 4,458,145,157,122
20 Net cash flows from operating activities 16,785,848,695,319 4,498,546,635,973
19. Net profit after tax attributable to
61 28.1 4,462,411,670,513 3,384,588,126,613 II. CASH FLOWS FROM INVESTING
shareholders of the parent
ACTIVITIES
20. Net profit after tax attributable to non-
62 28.1 1,192,530,120,713 1,073,557,030,509 Purchase and construction of fixed assets and
controlling interests 21 (19,509,233,343,507) (14,301,529,343,969)
other long-term assets
70 21. Basic earnings per share 37 1,816 1,378
Proceeds from disposals of fixed assets and
71 22. Diluted earnings per share 37 1,816 1,378 22 230,738,747,196 66,786,752,382
other long-term assets
Loans to other entities and payments for
23 40 (13,120,643,139,535) (3,432,087,468,527)
purchase of debt instruments of other entities
Collections from borrowers and proceeds from
24 40 5,871,047,533,029 22,880,893,204,796
sale of debt instruments of other entities
Payments for investments in other entities (net
25 40 (15,153,204,450,348) (22,459,345,068,846)
of cash held by entity being acquired)
Proceeds from sale of investments in other
26 entities (net of cash held by entity being 40 13,991,102,708,588 15,306,966,443,347
disposed)
27 Interest and dividends received 1,173,726,980,704 1,107,787,615,493
30 Net cash flows used in investing activities (26,516,464,963,873) (830,527,865,324)
10 April 2018
CHAPTER 6 CHAPTER 6
CONSOLIDATED CASH FLOW STATEMENT NOTES TO THE CONSOLIDATED

For the year ended 31 December 2017
FINANCIAL STATEMENTS
Currency: VND As at 31 December 2017 and for the year then ended
Code ITEMS Notes Current year Previous year 1. CORPORATE INFORMATION 2. BASIS OF PREPARATION
III. CASH FLOWS FROM FINANCING

Vingroup Joint Stock Company (“the Company”) is a joint 2.1 Accounting standards and system
stock company established in Vietnam pursuant to the
ACTIVITIES
Business Registration Certificate No. 0103001016 issued The consolidated financial statements of the Company
31 Capital contribution and issuance of shares 40 13,000,000,000 1,310,346,390,000 by the Hanoi Department of Planning and Investment on and its subsidiaries expressed in Vietnam dong (“VND”)
3 May 2002 and the Business Registration Certificate No. are prepared in accordance with Vietnamese Enterprise
32 Capital redemption (30,000,000,000) - 0101245486 re-issued on 12 May 2010. The Company Accounting System and Vietnamese Accounting Standard
subsequently received amended Enterprise Registration issued by the Ministry of Finance as per:
33 Drawdown of borrowings 31,918,446,307,125 20,814,923,248,321 Certificates, with the latest amendment being the 64th
• Decision No. 149/2001/QD-BTC dated 31 December
amended Enterprise Registration Certificate dated 28
34 Repayment of borrowings (22,256,448,989,518) (21,563,433,421,832) 2001 on the Issuance and Promulgation of Four
February 2018.
Vietnamese Accounting Standards (Series 1);
36 Dividends paid to equity holders 40 (1,604,550,206,376) (1,339,903,941,515) The Company’s shares are officially listed on the Ho Chi
• Decision No. 165/2002/QD-BTC dated 31 December
Net cash flows from/(used in) financing Minh City Stock Exchange (“HOSE”) from 19 September
40 8,040,447,111,231 (778,067,725,026) 2002 on the Issuance and Promulgation of Six
2007 pursuant to Decision No.106/QD-TTGDHCM
activities Vietnamese Accounting Standards (Series 2);
issued by the Director of HOSE on 7 September 2007.
Net (decrease)/increase in cash and cash • Decision No. 234/2003/QD-BTC dated 30 December
50 (1,690,169,157,323) 2,889,951,045,623 The current principal activities of the Company are to
equivalents for the year 2003 on the Issuance and Promulgation of Six
invest in, construct and trade real estate properties; to
Vietnamese Accounting Standards (Series 3);
Cash and cash equivalents at the beginning of carry out capital mobilization and investment activities;
60 9,833,332,219,401 6,938,465,104,490
the year and to provide general administrative services. Current • Decision No. 12/2005/QD-BTC dated 15 February
principal activities of the Company’s subsidiaries are 2005 on the Issuance and Promulgation of Six
61 Impact of exchange rate fluctuation (1,413,034,392) 4,916,069,288
presented in Appendix 1. Vietnamese Accounting Standards (Series 4); and
70 Cash and cash equivalents at the end of the year 5 8,141,750,027,686 9,833,332,219,401 The normal course of business cycle of real estate business • Decision No. 100/2005/QD-BTC dated 28 December
starts of the Company and its subsidiaries (“the Group”) 2005 on the Issuance and Promulgation of Four
at the time of application for investment certificate, Vietnamese Accounting Standards (Series 5).
commencement of site clearance, construction and ends
Accordingly, the accompanying consolidated financial
at the time of completion. Thus, the Group’s normal couse
statements, including their utilisation are not designed for
of business cycle of real estate trading is from 12 to 36
those who are not informed about Vietnam’s accounting
months.
principles, procedures and practices and furthermore
The Group’s normal course of business cycle of other are not intended to present the financial position and
business activities is 12 months. results of operations and cash flows in accordance with
accounting principles and practices generally accepted in
The Company’s head office is registered at No. 7, Bang
countries other than Vietnam.
Lang 1 street, Vinhomes Riverside Eco-urban Area, Viet
Hung ward, Long Bien district, Hanoi, Vietnam. Its branch 2.2 Applied accounting documentation
is located at No. 72, Le Thanh Ton and No. 45A, Ly Tu system
Trong street, Ben Nghe ward, district 1, Ho Chi Minh city,
10 April 2018
Vietnam. The Company’s applied accounting documentation system
is the General Journal.
The number of the Company’s employees as at 31
December 2017 is: 347 (31 December 2016: 333). 2.3 Fiscal year
As at 31 December 2017, the Company has 48
subsidiaries. The information on these subsidiaries, along The Group’s fiscal year applicable for the preparation of its
with the Company’s voting rights and equity interest in consolidated financial statements starts on 1 January and
each subsidiary are detailed in the Appendix 1. ends on 31 December.
As at 31 December 2017, the Group also holds investments

in a number of associates as disclosed in Note 19.1.
CHAPTER 6 CHAPTER 6
2.4 Accounting currency 3.2 Cash and cash equivalents goods, and other inventories owned by the Group, based sheet. Initial direct costs incurred in negotiating an
on appropriate evidence of impairment available at the operating lease are recognised in the consolidated income
The consolidated financial statements are prepared in Cash and cash equivalents comprise cash on hand, cash consolidated balance sheet date. statement as incurred.
VND which is also the Company’s accounting currency. at banks and short-term, highly liquid investments with an Increases and decreases to the provision balance are Lease income is recognised in the consolidated income
original maturity of no longer than three months that are recorded into the cost of goods sold account in the statement on a straight-line basis over the lease term.
2.5 Basis of consolidation
readily convertible into known amounts of cash and that consolidated income statement.
are subject to an insignificant risk of change in value.
3.7 Intangible fixed assets
The consolidated financial statements comprise the
3.4 Receivables
financial statements of the Company and its subsidiaries
3.3 Inventories Intangible fixed assets are stated at cost less accumulated
for the year ended 31 December 2017.
Receivables are presented in the consolidated financial amortisation.
Subsidiaries are fully consolidated from the date of Inventory property statements at the carrying amounts due from customers
The cost of an intangible fixed asset comprises of its
acquisition, being the date on which the Group obtains and other debtors, after provision for doubtful debts.
Property acquired or being constructed for sale in the purchase price and any directly attributable costs of
control, and continued to be consolidated until the date
ordinary course of business or for long-term lease qualified The provision for doubtful debts represents amounts of preparing the intangible asset for its intended use.
that such control ceases, except for temporary controls
for recognition of outright sales, rather than to be held for outstanding receivables at the balance sheet date which are
when a subsidiary is acquired and held exclusively with a Expenditures for additions, improvements are added to the
rental or capital appreciation, is held as inventory and is doubtful of being recovered. Increases and decreases to the
view to resale within 12 months. carrying amount of the assets and other expenditures are
measured at the lower of cost incurred in bringing the provision balance are recorded as general and administrative
charged to the consolidated income statement as incurred.
The financial statements of the subsidiaries are prepared inventories to their present location and condition, and expense in the consolidated income statement.
for the same reporting year as the parent company, using net realisable value. When intangible fixed assets are sold or retired, any gain or
consistent accounting policies.
3.5 Tangible fixed assets loss resulting from their disposal (the difference between
• Freehold and leasehold rights for land;
the net disposal proceeds and the carrying amount) is
All intra-company balances, income and expenses and Tangible fixed assets are stated at cost less accumulated
• Amounts paid to contractors for construction; and included in the consolidated income statement.
unrealised gains or losses resulting from intra-company depreciation.
transactions are eliminated in full. • Borrowing costs, planning and design costs, costs of Land use rights
The cost of a tangible fixed asset comprises its purchase
site preparation, professional fees for legal services,
Non-controlling interests represent the portion of profit or price and any directly attributable costs of bringing the Definite and indefinite land use rights are recorded as
property transfer taxes, construction overheads and
loss and net assets not held by the Group and are presented tangible fixed asset to working condition for its intended intangible fixed assets based on land use right certificates
other related costs.
separately in the consolidated income statement and use. issued by governing bodies.
within equity in the consolidated balance sheet, separately Net realisable value is the estimated selling price in the
Expenditures for additions, improvements and renewals The prepayment for land rental, of which the land lease
from parent shareholders’ equity. ordinary course of the business, based on market prices at
are added to the carrying amount of the assets and contracts have effectiveness prior to 2003 and Land use
the reporting date and less estimated costs to completion
Impact of change in the ownership interest of a subsidiary, expenditures for maintenance and repairs are charged to right certificate being issued, are recorded as intangible
and the estimated costs of sale.
without a loss of control, is recorded in undistributed the consolidated income statement as incurred. fixed asset according to Circular No. 45/2013/TT-BTC
earnings. The cost of inventory recognised in profit or loss on issued by the Ministry of Finance on 25 April 2013 guiding
When tangible fixed assets are sold or retired, any gain or the management, use and depreciation of fixed assets
disposal is determined with reference to the specific costs
In case the Group disposes a partial interest in a subsidiary loss resulting from their disposal (the difference between
incurred on the property sold and an allocation of any (“Circular 45”).
and loses control but retains an interest as an associate, the net disposal proceeds and the carrying amount) is
non-specific costs based on the appropriate basis.
the Group’s investment is accounted for using the equity included in the consolidated income statement. Research and development costs
method of accounting. Profit/loss from this transaction is Other inventories
Research costs and development costs that do not meet
recognised in the consolidated income statement. 3.6 Leased assets
Inventories are carried at the lower of cost incurred in the capitalisation criteria are recognised as expensed in
In case the Group disposes a partial interest in a subsidiary bringing each product to its present location and condition The determination of whether an arrangement is, the consolidated income statement as incurred.
and loses control but retains an interest as an investment and net realisable value. or contains a lease is based on the substance of the Development expenditure on an individual project is
in other entities, the Group’s investment is accounted for Net realisable value represents the estimated selling price arrangement at inception date and requires an assessment recognised as an intangible fixed asset only if the Group
using the cost method. Profit/loss from this transaction is in the ordinary course of business less the estimated costs of whether the fulfilment of the arrangement is dependent can demonstrate all of the following conditions:
recognised in the consolidated income statement. to complete and the estimated costs necessary to make on the use of a specific asset and the arrangement conveys
• The technical feasibility study of completing the
the sale. a right to use the asset.
3. SUMMARY OF SIGNIFICANT intangible fixed asset so that it will be available for use
ACCOUNTING POLICIES The periodic method is used to record the costs of A lease is classified as a finance lease whenever the terms or sale;
inventories for hotel and related services. The perpetual of the lease transfer substantially all the risks and rewards • The intention to complete and use or sell the intangible
3.1 Changes in accounting policies and method is used to record the costs of other inventories. of ownership of the asset to the lessee. All other leases are fixed asset;
disclosures classified as operating leases.
The costs of inventories for hospital and related services • The ability to use or sell the intangible fixed asset;
are valued on specific identification basis. The costs of Where the Group is the lessee
• The asset will generate probable future economic
The accounting policies adopted by the Group in other inventories are valued on weighted average basis. Rentals under operating leases are charged to the benefits;
preparation of the consolidated financial statements are
Provision for obsolete inventories consolidated income statement on a straight-line basis • The availability of resources to complete the development
consistent with those followed in the preparation of the
over the lease term. and to use or sell the intangible fixed asset;
Group’s consolidated financial statements for the year An inventory provision is created for the estimated loss
ended 31 December 2016. arising due to the impairment of value (through diminution, Where the Group is the lessor • The ability to measure reliably the expenditure during
damage, obsolescence, etc.) of raw materials, finished the development; and
Assets subject to operating leases are included as the
Group’s investment properties in the consolidated balance • They are estimated to meet all criteria for use duration
and value prescribed for intangible fixed asset.
CHAPTER 6 CHAPTER 6
Development costs capitalised as asset are stated at cost commencement of an operating lease to another party business combination, when preparing the consolidated • The consolidated income statement reflects the results
less accumulated amortisation. Amortisation of the asset or ending of construction or development. Transfers are financial statements, the Group shall remeasure its of the combined entities from the date of the business
begins when development is completed and the asset is made from investment properties when, and only when, previously held equity interests at its acquisition-date fair combination; and
available for use. there is change in use, evidenced by commencement of value and recognise the resulting gain or loss, if any, in the
• Any difference between the consideration paid and
owner-occupation or commencement of development consolidated income statement.
3.8 Depreciation and amortisation with a view to sale. The transfer from investment property
the net assets of the acquiree is recorded in equity.
Goodwill acquired in a business combination is initially
Depreciation and amortisation of tangible fixed assets and
to owner-occupied property or inventories does not
measured at cost being the excess of the cost the business 3.13 Investments
change the cost or the carrying value of the property for
intangible fixed assets are calculated on a straight-line basis combination over the Group’s interest in the net fair value of
subsequent accounting at the date of change in use. Investment in associates
over the estimated useful life of each asset as follows: the acquiree’s identifiable assets, liabilities and contingent
3.10 Borrowing costs liabilities. If the cost of a business combination is less than The Group’s investment in its associate is accounted for
Buildings and structures 5 - 50 years the fair value of the net assets of the subsidiary acquired, using the equity method of accounting. An associate is an
Machinery and equipment 3 - 15 years Borrowing costs consist of interest and other costs that the the difference is recognised directly in the consolidated entity in which the Group has significant influence that
Group incurs in connection with the borrowing of funds. income statement. After initial recognition, goodwill is are neither subsidiaries nor joint ventures. The Group
Means of transportation 3 - 12 years
measured at cost less any accumulated amortisation. generally deems they have significant influence if they
Borrowing costs are recorded as expense during the year
Office equipment 3 - 8 years Goodwill is amortised over 10-year period on a straight- have over 20% of the voting rights in the investee.
in which they are incurred, except to the extent that they
line basis. The Group conducts the periodical review for
E-commerce website 2 - 20 years are capitalised as explained in the following paragraph. Under the equity method, the investment is carried in the
impairment of goodwill of investment in subsidiaries. If
consolidated balance sheet at cost plus post-acquisition
Computer software 3 - 10 years Borrowing costs that are directly attributable to the there are indicators of impairment loss incurred is higher
changes in the Group’s share of net assets of the
acquisition, construction or production of an asset that than the yearly allocated amount of goodwill on the
Land use rights with definite term 36 - 50 years associates. Goodwill arising on acquisition of the associate
necessarily take a substantial period of time to get ready straight-line basis, the higher amount will be recorded in
is included in the carrying amount of the investment. The
Distribution rights and others 3 - 15 years for its intended use or sale are capitalised as part of the the consolidated income statement.
Group does not charge any amortisation on the goodwill,
No amortisation is charged on the land use rights with cost of the respective asset.
Assets acquisitions and business combinations but annually carries out test of impairment of goodwill.
indefinite terms.
3.11 Prepaid expenses The Group acquires subsidiaries that own real estate
The consolidated income statement reflects the Group’s
share of the post-acquisition results of operation of the
3.9 Investment properties projects. At the time of acquisition, the Group considers
Prepaid expenses are reported as short-term or long-term associate.
whether the acquisition represents the acquisition of
Investment properties are stated at cost, including prepaid expenses on the consolidated balance sheet and a business. The Group accounts for an acquisition as a The share of post-acquisition profit/(loss) of the associates
transaction costs, less accumulated depreciation and amortised over the period for which the amounts are paid business combination where an integrated set of activities is presented on face of the consolidated income statement
amortisation. or the period in which economic benefits are generated in is acquired in addition to the property. and its share of post-acquisition movements in reserves
Subsequent expenditure relating to an investment relation to these expenses. is recognised in reserves. The cumulative post-acquisition
When the acquisition of subsidiaries does not represent a
property that has already been recognised is added to movements are adjusted against the carrying amount of
Long-term prepaid expenses include long-term prepaid business combination, it is accounted for as an acquisition
the net book value of the investment property when it is the investment. Dividend/profit sharing receivable from
land rental, pre-operation expenditure, tools and supplies, of a group of assets and liabilities. The cost of the
probable that future economic benefits, in excess of the associates reduces the carrying amount of the investment.
and other prepaid expenses that bring future economic acquisition is allocated to the assets and liabilities acquired
originally assessed standard of performance of the existing based upon their relative fair values, and no goodwill or The financial statements of the associates are prepared
benefits for more than one year.
investment property, will flow to the Group. deferred tax is recognised. for the same reporting year as the Group and using the
Prepaid land rental represents the unamortised balance of consistent accounting policies with the Group. Where
Depreciation of investment properties is calculated on a In case prior to the date that control is obtained, the
advance payment made in accordance with Land Rental necessary, adjustments are made to bring the accounting
straight-line basis over the estimated useful life of each investment is an investment in associate or a long-term
asset as follows: Contract signed with authorities. Such prepaid land rental policies in line with those of the Group.
investment and the acquisition of the subsidiary is not a
is recognised as a long-term prepaid expense for allocation The Group ceases the use of the equity method of
Land use rights (definite) 25 - 50 years business combination, when preparing the consolidated
to the consolidated income statement over the remaining financial statements, the Group shall not remeasure the accounting since the date it no longer has significant
Buildings 5 - 50 years lease period according to Circular 45. previously held equity interests. Instead previously held influence over the associate. If the retained equity interest
Machinery and equipment 3 - 15 years equity interests and the consideration were allocated to is a long-term investment, the entity measures the retained
3.12 Business combinations and goodwill
the assets and liabilities acquired based on their relative equity interest at fair value regarded as the cost on initial
No amortisation is charged on the land use rights presented
Business combinations are accounted for using the fair values on acquisition date. recognition. Profit/(loss) from the disposal of associate is
as investment properties with¬ indefinite terms.
purchase method. The cost of a business combination recognised in the consolidated income statement.
Business combinations involving entities under common
Investment properties are derecognised when either they is measured as the fair value of assets given, equity control Investments in joint ventures
have been disposed of or when the investment properties are instruments issued and liabilities incurred or assumed at
permanently withdrawn from use and no future economic Business combinations involving entities under common The Group’s investment in joint ventures is accounted for
the date of exchange plus any costs directly attributable
benefit is expected from its disposal. The difference between control are accounted for as follows: using the equity method of accounting. Under the equity
to the business combination. Identifiable assets and
the net disposal proceeds and the carrying amount of the method, the investment is carried in the consolidated
liabilities and contingent liabilities assumed in a business • The assets and liabilities of the two combined entities
assets is recognised in the consolidated income statement balance sheet at cost plus post joint ventures changes in
combination are measured initially at fair values at the are reflected at their carrying amounts on the date of
in the year of retirement or disposal. the Group’s share of net assets of the joint ventures. The
date of business combination. business combination;
consolidated income statement reflects the share of the
Transfers are made to investment properties when, In case prior to the date that control is obtained, the • No goodwill is recognised from the business post-acquisition results of operation of the joint ventures.
and only when, there is a change in use, evidenced investment is an investment in associate or a long-term combination;
by ending of owner-occupation or readiness for sale, The share of profit/(loss) of the joint ventures is presented
investment and the acquisition of that subsidiary is a
CHAPTER 6 CHAPTER 6
on face of the consolidated income statement and its share This accrued severance pay is used to settle the termination • Monetary liabilities are translated at selling exchange for reimbursing the prepaid lease payments under any
of post-acquisition movements in reserves is recognised in allowance to be paid to employees upon termination of rate of the commercial bank where the Group conducts circumstances;
reserves. The cumulative post-acquisition movements are their labour contract following Article 48 of the Labour transactions regularly.
• The prepaid lease payment is not less than 90% of
adjusted against the carrying amount of the investment. Code. All foreign exchange differences incurred during the year the total estimated lease payment collected under
Dividend/profit sharing received or receivable from jointly and arised from the translation at the end of the year are contract over the lease period and lessee must pay all
controlled entities reduces the carrying amount of the 3.16 Provisions
taken to the consolidated income statement. rental within 12 months from the commencement of
investment. the lease;
General provisions 3.18 Treasury shares
The financial statements of the joint ventures are prepared • Almost all risks and rewards associated with the
Provisions are recognised when the Group has a present
for the same reporting period and use the same accounting Own equity instruments which are reacquired (treasury ownership of leased assets are transferred to the
obligation (legal or constructive) as a result of a past event,
policies as the Group. Where necessary, adjustments are shares) are recognised at cost and deducted from equity. lessee; and
it is probable that an outflow of resources embodying
made to bring the accounting policies in line with those of No gain or loss is recognised upon purchase, sale, issue or
economic benefits will be required to settle the obligation • Lessor must estimate the full cost of leasing activity.
the Group. cancellation of the Group’s own equity instruments.
and a reliable estimate can be made of the amount of the
Revenue from leasing of properties
Held-for-trading securities and investments in other obligation. 3.19 Appropriation of net profits
entities Rental income arising from leased properties is recognised
When the Group expects some or all of a provision to be in the consolidated income statement on a straight line
Held-for-trading securities and in securities and investments Net profit after tax (excluding negative goodwill arising
reimbursed by a third party, for example under an insurance basis over the lease terms of ongoing leases.
in other entities are stated at their acquisition costs. from a bargain purchase) is available for appropriation to
contract, the reimbursement is recognised as a separate
investors/shareholders after approval by the appropriate Sale of goods
Provision for held-for-trading securities and investments asset but only when the reimbursement is virtually certain.
level of authority/in the annual general meeting, and after
in entities The expense relating to any provision is presented in the Revenue is recognised when the significant risks and
making appropriation to reserve funds in accordance
consolidated income statement net of any reimbursement. rewards of ownership of the goods have passed to the
Provision is made for any diminution in value of the held- with the Company’s Charter and Vietnam’s regulatory
buyer, usually upon the delivery of the goods.
If the effect of the time value of money is material, requirements.
for-trading securities and investments in capital of other
provisions are discounted using a current pre tax rate Rendering of services
entities at the balance sheet date in accordance with the The Group maintains the reserve funds which are
guidance under Circular No. 228/2009/TT-BTC dated 7 that reflects, where appropriate, the risks specific to the appropriated from the Group’s net profit as proposed Revenue from hotel, amusement park, education, beauty,
December 2009 and Circular No. 89/2013/TT-BTC dated liability. Where discounting is used, the increase in the by the Board of Directors and subject to approval by hospital, real estate management and other related services
28 June 2013 issued by the Ministry of Finance. Increases provision due to the passage of time is recognised as a shareholders at the Annual General Meeting. is recorded when the services are rendered. When the
or decreases to the provision balance are recorded as finance expense. outcome of the contract is certainly determined, revenue
3.20 Advances from customers will be recognised based on percentage of completion.
finance expense in the consolidated income statement. Provision for warranty expenses
Held-to-maturity investments The Group estimates provision for warranty expenses Payments received from customers as deposits for the Gains from securities trading/capital transfer
based on revenue and available information about the purchase of houses, villas and apartments in the future that Gains from securities trading and capital transfer are
Held-to-maturity investments are stated at their acquisition
repair of real estate properties sold in the past. do not meet the conditions for revenue recognition, are determined as the excess of selling prices against the
costs. After initial recognition, these investments are
recognised and presented as “Advances from customers” cost of securities sold. Such gains are recognised on the
measured at recoverable amount. Any impairment loss 3.17 Foreign currency transactions in the liability section in the consolidated balance sheet. transaction date when the relevant contracts are executed.
incurred is recognised as expense in the consolidated
income statement and deducted against the value of such Transactions in currencies other than the Group’s reporting 3.21 Revenue recognition Interest
investments. currency of VND are recorded at the actual transaction
Revenue is recognised to the extent that it is probable Revenue is recognised as the interest accrues (taking
exchange rates at transaction dates which are determined into account the effective yield on the asset) unless
3.14 Payables and accruals that the economic benefits will flow to the Group and the
as follows: collectability is in doubt.
revenue can be reliably measured. Revenue is measured at
Payables and accruals are recognised for amounts to be • Transaction resulting in receivables are recorded at the fair value of the consideration received or receivable, Dividends
paid in the future for goods and services received, whether the buying exchange rates of the commercial banks excluding trade discount, rebate and sales return. The
Income is recognised when the Group’s entitlement as an
or not billed to the Group. designated for collection; following specific recognition criteria must also be met
investor to receive the dividend is established.
before revenue is recognised.
• Transactions resulting in liabilities are recorded at the
3.15 Accrual for severance pay 3.22 Construction contract
selling exchange rates of the transaction of commercial Revenue from sale of inventory property
banks designated for payment; and Where the outcome of a construction contract can be
The severance pay to employee is accrued at the end of each Revenue from sale of inventory property is recognised
estimated reliably, revenue and costs are recognised
reporting year for all employees who have been in service • Payments for assets or expenses without liabilities when the significant risks and rewards incident to
by reference to the stage of completion of the contract
for more than 12 months up to the balance sheet date at initially being recognised is recorded at the buying ownership of the properties have passed to the buyer.
activity at the consolidated balance sheet date based on the
the rate of one-half of the average monthly salary for each exchange rates of the commercial banks that process Revenue from sale of inventory property also includes long- construction works as certified by customers. Variations in
year of service up to 31 December 2008 in accordance these payments. term lease of inventory property qualified for recognition contract work, claims and incentive payments are included
with the Labour Code and related implementing guidance. of outright sales. If the lease-term is greater than 90% of
At the end of the year, monetary balances denominated in to the extent that they have been agreed with the customer.
The average monthly salary used in this calculation is the asset’s useful life, the Group will recognise the revenue
foreign currencies are translated at the actual transaction Where the outcome of a construction contract cannot
revised at the end of each reporting year following the for the entire prepaid lease payment if all of the following
exchange rates at the consolidated balance sheet dates be estimated reliably, contract revenue is recognised to
average monthly salary of the 6-month period up to the conditions are met:
which are determined as follows: the extent of contract costs incurred that is probably
reporting date. Increases or decreases to the accrued
• L
essee is not allowed to cancel the lease contract recoverable. Contract costs are recognised as expenses in
amount other than actual payment to employee will be • Monetary assets are translated at buying exchange
during the lease term, and the lessor is not reponsible the year in which they are incurred.
taken to the consolidated income statement. rate of the commercial bank where the Group conducts
transactions regularly; and
CHAPTER 6 CHAPTER 6
Difference between the cumulative revenue of a associates, and interests in joint ventures, deferred 3.26 Related parties group of assets, rather than a business combination. The
construction contract recognised to date and the cumulative tax assets are recognised only to the extent that it is consideration of this acquisition is allocated to the assets
amount of progress billings of that contract is presented as probable that the temporary difference will reverse in the The parties are considered as related parties of the Group and liabilities acquired based on their relative fair values
construction contract receivable/payable based on agreed foreseeable future and taxable profits will be available if one party has the ability, directly or indirectly, to control at acquisition date. Accordingly, a part of consideration
progress billings in the consolidated balance sheet. against which the temporary differences can be utilised. over the other party or otherwise significantly influence was recognised in construction in progress (Note 18).
on the other party in making financial and operating The non-controlling interests were also recognised at
3.23 Taxation The carrying amount of deferred tax assets is reviewed at
their relative proportion of the interests in the assets and
each balance sheet date and reduced to the extent that it decisions, or when the Group and the other party are under
common control or significant influence. Stakeholders liabilities acquired. These acquired assets and liabilities are
Current income tax is probable that sufficient taxable profit will be available
may be companies or individuals, including intimate family presented in the same categories as other similar assets
to allow all or part of the deferred tax asset to be utilised.
members of individuals considered to be related parties. and liabilities held by the Group.
Current income tax assets and liabilities for the current Previously unrecognised deferred income tax assets are re-
and prior year are measured at the amount expected to be assessed at each balance sheet date and are recognised to 4.2 Business combination
recovered from or paid to the taxation authorities. The tax the extent that it has become probable that future taxable 4. SIGNIFICANT ACQUISITIONS
rates and tax laws used to compute the amount are those profit will allow the deferred tax assets to be recovered. AND DISPOSALS DURING THE Acquisition of Nha Trang Port Joint Stock Company (“Nha
that are enacted as at the consolidated balance sheet date. Deferred tax assets and liabilities are measured at the tax YEAR Trang Port JSC’’), a new subsidiary
Current income tax is charged or credited to the rates that are expected to apply in the year when the asset
consolidated income statement, except when it relates realised or the liability is settled based on tax rates and tax 4.1 Acquisition of group of assets On 5 September 2017, the Group acquired 55.01% voting
laws that have been enacted at the balance sheet date. shares of Nha Trang Port JSC via the stock exchange
to items recognised directly to equity, in which case the
Acquisition of Prime Land Real Estate Investment JSC market with total consideration of VND148.5 billion.
current income tax is also dealt with in equity. Deferred tax is charged or credited to the consolidated
(“Prime Land JSC’’), a new subsidiary Thereby, the voting right of the Group in Nha Trang Port
Current income tax assets and liabilities are offset when income statement, except when it relates to items JSC increased to 85.55%, Nha Trang Port JSC became a
there is a legally enforceable right for the Group to offset recognised directly to equity, in which case the deferred On 24 May 2017, the Group acquired 100% voting shares
subsidiary of the Group.
current tax assets against current tax liabilities and when tax is also dealt with in the equity account. of Prime Land JSC from individuals and a corporate
counterparty with total consideration of VND640 billion The principal activities of Nha Trang Port JSC are to render
the Group intends to settle its current tax assets and Deferred tax assets and liabilities are offset when there is a
and thereby, Prime Land JSC became a subsidiary of the port services, warehouse leasing and other related services.
liabilities on a net basis. legally enforceable right for the Group to offset current tax
Group. At the date of acquisition, Prime Land JSC is the As at 31 December 2017, the Group recognises the
Deferred income tax assets against current tax liabilities and when they relate
owner of a potential real-estate project located at Me Linh fair value of identifiable assets, liabilities or contingent
to income taxes levied by the same taxation authority on:
Deferred tax is provided on temporary differences at the district, Hanoi, Vietnam. liabilities of Nha Trang Port JSC at the date of acquisition
consolidated balance sheet date between the tax base of • Either the same taxable entity; or
Management has reviewed and assessed that the as follows:
assets and liabilities and their carrying amount for financial • when the Group intends either settle current tax liabilities acquisition of shares of this company is an acquisition of
reporting purposes. and assets on a net basis or to realise the assets and Currency: VND
Deferred tax liabilities are recognised for all taxable settle the liabilities simultaneously, in each future period
Fair value recognised at acquisition date
temporary differences, except: in which significant amounts of deferred tax liabilities or
assets are expected to be settled or recovered. Assets
• where the deferred tax liability arises from the initial Cash and cash equivalents 35,286,299,868
recognition of an asset or liability in a transaction 3.24 Earnings per share
Tangible fixed assets 191,777,550,911
which at the time of the transaction affects neither the
accounting profit nor taxable profit or loss; Basic earnings per share amounts are calculated by Investment properties 14,641,646,769
dividing net profit/(loss) after tax for the year attributable
• in respect of taxable temporarily differences associated Investment in other entities (Note 19.1.2) 13,989,202,387
to ordinary shareholders of the Group (after adjusting for
with investments in subsidiaries and associates, and
welfare fund and reward) by the weighted average number Other assets 20,632,471,738
interests in joint ventures where timing of the reversal
of ordinary shares outstanding during the year.
of the temporary difference can be controlled and it is 276,327,171,673
probable that the temporary difference will not reverse Diluted earnings per share amounts are calculated by
Liabilities
in the foreseeable future. dividing the net profit/(loss) after tax attributable to
ordinary shareholders of the Group (after adjusting for Short-term trade payables 2,164,962,660
Deferred tax assets are recognised for all deductible
dividend on the convertible preference shares) by the Deferred tax liabilities (Note 35.3) 4,082,402,914
temporary differences, carried forward unused tax credit
weighted average number of ordinary shares outstanding
and unused tax losses, to the extent that it is probable that Other payables 4,499,316,420
during the year plus the weighted average number of
taxable profit will be available against which deductible
ordinary shares that would be issued on conversion of all Total identifiable net assets 265,580,489,679
temporary differences, carried forward unused tax credit
the dilutive potential ordinary shares into ordinary shares
and unused tax losses can be utilised, except: Non-controlling interests (45,804,586,581)
• where the deferred tax asset arises from the initial

3.25 Segment information Goodwill from business combination (Note 20) 11,056,322,262
recognition of an asset or liability which at the time of
Total purchase consideration (i) 230,832,225,360
the related transaction, affects neither the accounting A segment is a component determined separately by the
profit nor taxable profit or loss at the time transaction Group which is engaged in providing products or related Analysis of cash flows on acquisition
incurred; services (business segment), that is subject to risks and
Cash of the acquired subsidiary 35,286,299,868
returns that are different from those of other segments.
• in respect of deductible temporarily differences Cash paid for acquiring the subsidiary up to 31 December 2017 (148,500,000,000)
associated with investments in subsidiaries and Management defines the Group’s segment report to be
Net cash flow used in acquisition (113,213,700,132)
based on type of products and services provided.
CHAPTER 6 CHAPTER 6
(i) Total consideration of VND230.8 billion in which VND148.5 billion was paid in cash and VND82.3 billion was the fair value 4.3 Significant disposals with loss of control of VND336.8 billion. Gain from this transactions of
of 30.53% equity interest previously held by the Group in Nha Trang Port JSC. The Group remeasured the fair value of this VND156.4 billion was recognised in the consolidated
previously held investment and recognised a gain of VND1 billion in the consolidated income statement (Note 29.3). Loss Disposal of Tay Ho View Hotel and Tourism LLC ("Tay Ho income statement (Note 29.3).
before tax of Nha Trang Port JSC for the period from the acquisition date to 31 December 2017 is VND7.1 billion. View LLC")
Merger of Vinhomes 2 Real Estate Trading LLC ("Vinhomes
On 20 April 2017, the Group disposed 70% shares of 2 LLC") into Vinhomes Management JSC
Acquisition of Co.Co International Co., Ltd (“Co.Co
are to invest in, trade and lease out villas, apartments and Tay Ho View LLC to a corporate counterparty with total
International Ltd’’), a new subsidiary On 1 August 2017, Vinhomes 2 LLC was merged into
offices. consideration of VND802 billion. Loss from this disposal
Vinhomes Management JSC. Thereby, the voting right of
On 8 November 2017, the Group acquired 70% voting of VND17.8 billion was recognised in the consolidated
As at 31 December 2017, the Group was in the process the Group in Vinhomes Management JSC increased from
shares of Co.Co International Ltd from a corporate income statement (Note 31).
of determining the fair value of identifiable assets, 16.4% to 18.6%. Gain from this transaction of VND47.3
counterparty with total consideration of VND417 billion.
liabilities or contingent liabilities of Co.Co International Disposal of Vinhomes 1 Real Estate Trading LLC billion was recognised in the consolidated income
Thereby, Co.Co International Ltd became a subsidiary of
Ltd at the date of acquisition. The provisional fair values of ("Vinhomes 1 LLC") and merger of Vinhomes 1 LLC into statement (Note 29.3).
the Group.
identifiable assets and liabilities of Co.Co International Ltd Vinhomes Real Estate Management JSC ("Vinhomes
The current principal activities of Co.Co International Ltd at the acquisition date are presented below: Management JSC") 4.4 Completion of the provisional
accounting for business combination
Currency: VND On 3 April 2017, the Group disposed 45% shares of
Vinhomes 1 LLC to Vinhomes Management JSC with total
Provisional fair value Acquisition of Savina JSC in 2016
consideration of VND135 billion. Thereby, the voting right
recognised at acquisition date
of the Group in Vinhomes 1 LLC decreased from 100% to On 27 April 2016, the Group acquired 65.33% shares of
55%. Savina JSC through equitisation of the Savina One Member
Assets
On 8 May 2017, Vinhomes 1 LLC was merged into Limited Liability Company with total consideration of
Cash and cash equivalents 80,227,671,439 Vinhomes Management JSC and the voting right of the VND475 billion and thereby, Savina JSC became a subsidiary
Group in Vinhomes Management JSC increased from of the Group.
Other current assets 241,716,000
12.5% to 16.4%. As at 31 December 2016, the Group was in the process of
Investment properties 275,901,300,000 determining the fair value of identifiable assets, liabilities or
Loss from these two transactions of VND35 billion was
recognised in the consolidated income statement (Note 31). contingent liabilities of Savina JSC at the date of acquisition,
Tangible fixed assets 4,740,079,706
and applied provisional accounting to consolidate Savina
Disposal of Hoa Mai Trading Commercial Services LLC
Other non-current assets 4,364,714,072 JSC. In 2017, the Group has completed the determination of
("Hoa Mai LLC")
the fair value of net assets acquired with changes compared
365,475,481,217 On 5 July 2017, the Group disposed 74% shares of Hoa Mai to provisional fair value determined previously, and made the
Liabilities LLC to a corporate counterparty with total consideration retrospective adjustments as follows:
Other current liabilities 10,968,117,544 Currency: VND
Other non-current liabilities 2,791,090,000 Fair value after

Provisional fair value Adjustment
adjustment
Deferred tax liabilities (Note 35.3) 34,816,675,461
Assets
48,575,883,005 Cash and cash equivalents 699,919,715,320 - 699,919,715,320
Tangible fixed assets 25,300,885,704 - 25,300,885,704
Total identifiable net assets 316,899,598,212
Intangible fixed assets - 2,180,454,112 2,180,454,112
Non-controlling interests (90,218,348,764)
Investment in associates (Note 19.1.1 3,239,919,511 1,474,225,028 4,714,144,539
Goodwill from business combination (Note 20) 190,318,750,552 Other assets 29,942,765,511 11,312,886,668 41,255,652,179
758,403,286,046 14,967,565,808 773,370,851,854
Total purchase consideration 417,000,000,000
Liabilities
Analysis of cash flows on acquisition
Short-term accruals 43,960,667,647 - 43,960,667,647
Cash of the acquired subsidiary 80,227,671,439 Other liabilities 19,065,137,296 - 19,065,137,296
Net assets 695,377,481,103 14,967,565,808 710,345,046,911
Cash paid for acquiring the subsidiary up to 31 December 2017 (417,000,000,000)
Non-controlling interests (241,087,372,698) (5,189,255,066) (246,276,627,764)
Net cash flow used in acquisition (336,772,328,561) Goodwill arising from business combination
20,875,503,395 (9,778,310,742) 11,097,192,653
(Note 20)
CHAPTER 6 CHAPTER 6
Acquisition of Vicentra JSC in 2016 or contingent liabilities of Vicentra JSC at the date of Acquisition of Ecology JSC in 2016
acquisition. Therefore, the Group applied provisional
On 28 October 2016, the Group increased its voting In addition, in 2017, the Group has completed the provisional accounting method to consolidate Ecology JSC. The Group assessed
accounting method to consolidate this company. In 2017,
right in Vicentra JSC to 63.15% with total consideration that the finalised result of this transaction was unchanged in comparison with the provisional result determined in 2016.
the Group has completed the determination of the fair
of VND2,780 billion and thereby, Vicentra JSC became a
value of net assets acquired with changes compared to
subsidiary the Group.
As at 31 December 2016, the Group was in the process of

provisional fair value determined previously, and made the
5. CASH AND CASH EQUIVALENTS
retrospective adjustments as follows:
determining the fair value of identifiable assets, liabilities Currency: VND
Currency: VND Ending balance Beginning balance
Fair value after

Provisional fair value Adjustment Cash on hand 150,606,565,743 55,845,974,848
adjustment
Assets Cash at banks 6,005,448,449,742 6,168,352,990,692
Cash and cash equivalents 1,206,813,935,768 - 1,206,813,935,768 Cash in transit 26,726,170,056 19,031,656,359
Short-term trade receivables 351,537,095,788 - 351,537,095,788
Cash equivalents 1,958,968,842,145 3,590,101,597,502
Short-term advances to suppliers 353,693,817,646 353,693,817,646
TOTAL 8,141,750,027,686 9,833,332,219,401
Short-term loan receivables 9,035,689,095,154 - 9,035,689,095,154
Inventories (Note 11) 6,647,606,468,464 5,392,439,576,588 12,040,046,045,052

Cash equivalents as at 31 December 2017 comprise bank Cash at banks and cash equivalents as at 31 December 2017
Other short-term receivables 367,459,130,437 - 367,459,130,437 deposits in VND with terms ranging from 1 month to 3 include maintenance funds of handed-over apartments
Short-term prepaid expenses 451,958,808,456 - 451,958,808,456 months, earning interests ranging from 4.2% to 5.5% at real estate projects of the Group. Subsequently,
per annum (as at 31 December 2016: 4.3% to 5.2% per these maintenance funds will be transferred to Building
Deferred tax assets 16,226,938,919 - 16,226,938,919
annum). Management Boards.
Other long-term receivables 3,877,365,333,333 - 3,877,365,333,333
Cash at banks and cash equivalents as at 31 December Details of foreign currencies:
Construction in progress (Note 18) 296,036,399,839 237,860,319,916 533,896,719,755 2017 include VND887 billion in escrow accounts and
Other long-term assets 68,680,027,976 - 68,680,027,976 VND322 billion in restricted-for-use accounts for business
and other activities of the Group (as at 31 December 2016:
22,673,067,051,780 5,630,299,896,504 28,303,366,948,284
VND391 billion).
Liabilities
Short-term trade payables 205,229,551,429 - 205,229,551,429
Short-term advances from customers 5,618,486,690,150 - 5,618,486,690,150 Ending balance Beginning balance
Statutory obligations 76,930,249,745 - 76,930,249,745

Foreign currencies:
Short-term accrued expenses 599,409,802,823 - 599,409,802,823
United State dollar 7,590,475 3,751,403
Unearned revenue 61,496,125,387 - 61,496,125,387
Other short-term payables 2,453,417,592,577 - 2,453,417,592,577 Australian dollar 2,425 -
Other long-term payables 122,676,287,778 - 122,676,287,778 Singapore dollar 56 -

Long-term loans 10,777,654,960,903 - 10,777,654,960,903
Hong Kong dollar 50 -
Other liabilities 77,848,901,682 - 77,848,901,682
Euro 23,175 36,362
Total identifiable net assets 2,679,916,889,306 5,630,299,896,504 8,310,216,785,810
Non-controlling interests (987,427,626,946) (2,074,509,731,248) (3,061,937,358,194) Korean Won 230,000 -
Goodwill arising from business combination Japanese Yen 57,000 -

2,837,107,358,440 (2,610,712,900,640) 226,394,457,800
(Note 20)
Thai Baht 7,820 -
CHAPTER 6 CHAPTER 6
7. TRADE RECEIVABLES AND ADVANCES TO SUPPLIERS
than 3 months to 1 year and earning interest rates ranging from 5.0% to 6.5% per annum).
Currency: VND
Currency: VND
Held-to-maturity investments as at 31 December 2017 include maintenance funds

for handed-over apartments at real estate projects of the Group. Subsequently, these
Carrying value
480,784,452,807
480,784,452,807
Provision
(18,996,660,000)
(18,996,660,000)
7.1 Short-term trade receivables
maintenance funds will be transferred to Building Management Boards.

Currency: VND
13,372,452,000
Fair value
13,372,452,000
Beginning balance
Beginning balance
Ending balance Beginning balance
Cost
480,784,452,807
480,784,452,807
Sale of inventory properties 3,614,086,042,849 1,973,699,838,278
Disposal of investments 1,118,410,842,439 367,694,692,439

Cost
32,369,112,000
32,369,112,000
Leasing activities and rendering related services 344,946,214,307 222,226,402,832
Rendering hospital services and related services 208,024,680,022 55,576,231,521
Rendering hotel services, amusement park services

158,360,787,526 95,357,152,770
and related services
Carrying value
659,705,890,071
659,705,890,071
Construction and related services 157,958,584,857 301,559,823,132
Provision
(19,505,232,000)
(19,505,232,000)
Rendering of management services, real estate

73,288,649,997 97,426,132,924
brokerage and related services
Other short-term receivables 69,384,648,921 57,222,501,919
TOTAL 5,744,460,450,918 3,170,762,775,815

Fair value
12,863,880,000
12,863,880,000
Ending balance
Ending balance
In which:
more than 3 months to 1 year and earning interest rates ranging from 4.5% to 7.1% per
(i) Short-term bank deposits in VND as at 31 December 2017 have terms ranging from
annum (As at 31 December 2016: short-term bank deposits have terms ranging from more
Short-term trade receivables from related parties
Cost
659,705,890,071
659,705,890,071
135,043,603,890 11,319,259,495
(Note 36)
Provision for doubtful debts (67,008,044,384) (61,176,629,527)

Cost
32,369,112,000
32,369,112,000
Details of receivables which are more than 10% of

total balance:
Sale of inventory properties to a corporate

- 616,434,941,286
counterparty
Disposal of an investment to a corporate

100,000,000,000 331,000,000,000
counterparty
6. SHORT-TERM INVESTMENTS
Shares of Pertro Vietnam Fertiliser and Chemicals
Disposal of other investments to another corporate

981,716,150,000 -
counterparty
6.2 Held-to-maturity investments
6.1 Held-for-trading securities
7.2 Short-term advances to suppliers

Short-term bank deposits (i)
Short-term advances to suppliers as at 31 December 2017 VND92 billion (31 December 2016: VND19 billion) (Note
mainly include advances to suppliers and construction 36).
contractors for developing real estate projects of the
As at 31 December 2017, the Group has made a provision
Group and purchasing other goods and services. In which,
for uncollectible advances of VND12 billion (31 December
short-term advances to related parties are approximately
Corporation
2016: VND20 billion).

TOTAL
TOTAL
CHAPTER 6 CHAPTER 6
8. LOAN RECEIVABLES 9. OTHER RECEIVABLES
Ending balance Beginning balance Ending balance Beginning balance
Short-term Short-term:
Current portion of long-term loans to customers Customers’ advance collected by third party on
76,999,942,000 24,697,885,462 2,185,345,550,269 431,005,348,149
and individuals behalf of the Group (i)
Loans to corporate counterparties (i) 7,607,239,886,536 1,831,835,225,564 Interest on bank deposits, deposits and loans to
974,465,191,355 1,042,244,561,460
others
Loans to related parties (Note 36) - 1,367,725,527,787
Deposit for investment co-operation contracts (ii) 935,000,000,000 4,035,000,000,000
TOTAL 7,684,239,828,536 3,224,258,638,813
Guarantee deposits for project development, selling
440,875,574,562 544,745,055,602
Provision for doubtful loan receivables (127,240,478,176) (34,849,342,992) apartments and completing contracts
Long-term Receivables from former owners of subsidiaries 285,651,049,202 -
Loans to customers 25,257,439,663 28,687,800,577 Guarantee deposit for interest obligation 110,646,740,053 102,353,130,605
Loans to a corporate counterparty (ii) 320,768,843,417 55,000,000,000 Others 816,915,807,947 654,622,317,459
In which: current portion of long-term loans to TOTAL 5,748,899,913,388 6,809,970,413,275

(76,999,942,000) (24,697,885,462)
customers and individuals
Provision for doubtful other short-term receivables (312,027,720,377) (62,885,538,299)
TOTAL 269,026,341,080 58,989,915,115
Long-term:
(i) Balance as at 31 December 2017 comprises: Long-term deposits for outlet rentals 82,362,006,303 194,115,824,752
• Loan receivables of VND5,041 billion from a corporate counterparty with terms from 6 months to 12 months earning Guarantee deposit for bond obligation 120,190,140,000 120,190,140,000
interest rates from 6% to 7% per annum. In which, a loan of VND4,491 billion is secured by shares of this corporate
Deposit for business co-operation contracts 73,366,827,000 73,366,827,000
counterparty which are owned by individual shareholders; and asset ownership right derived from certain real-estate
properties. Up to the date of this consolidated financial statements, the Group has collected all these loan receivables; Other receivables 18,699,134,999 18,843,910,330
• Loan receivable of VND2,122 billion to a corporate counterparty which is unsecured, matured on 30 June 2018 and
TOTAL 294,618,108,302 406,516,702,082
earning interest rate of 9% per annum. Up to the date of this consolidated financial statements, the Group has collected
this loan receivable; In which:
• Most of other loan receivables are unsecured. Other short-term receivables from related parties
- 9,351,347,691
(ii) Loan to a corporate counterparty which is unsecured and earning interest rate of 6.5% per annum. (Note 36)
(i) Balance as at 31 December 2017 represents the (ii) Balance as at 31 December 2017 represents deposit
downpayment from customers under real estate sales and receivable from a corporate counterparty which was
purchase agreements of the Group which are collected guaranteed by shares of a financial institution which
on behalf by a corporate counterparty in accordance with are owned by this corporate counterparty and other
agreements among companies within the Group and this shareholders. This amount has been previously deposited
corporate counterparty. for developing a potential real-estate project.
CHAPTER 6 CHAPTER 6
10. BAD DEBTS 11. INVENTORIES

Bad debts of the Group mainly include overdue trade receivables, loan principal receivables and interest receivables:

Debtor Recoverable Recoverable Cost Provision Cost Provision
Cost Cost
amount amount
Completed inventory
3,863,489,205,510 (130,480,925,010) 2,150,104,528,562 (13,837,803,985)
Overdue receivables 706,325,250,704 315,510,885,885 356,097,494,477 211,425,150,317 properties
Overdue loans receivables 161,077,828,534 33,837,350,358 99,537,848,254 64,688,505,262 Inventory properties under
49,912,878,755,235 (105,024,042,158) 50,778,882,339,667 -
construction
TOTAL 867,403,079,238 349,348,236,243 455,635,342,731 276,113,655,579
Raw materials 137,527,038,620 - 118,928,525,806 -
Inventories for hospital,

Details of overdue receivables which account for more than 10% of total overdue receivables: supermarkets, hotel and 2,326,880,062,920 (85,505,947,911) 2,097,927,277,737 (62,681,136,250)
retail outlets
Currency: VND
Tools and equipment 49,091,010,055 - 58,283,018,424 -
Others 113,349,341,168 (23,389,307,344) 68,090,140,229 (20,476,521,306)
Debtor Recoverable Recoverable
Cost Cost
amount amount TOTAL 56,403,215,413,508 (344,400,222,423) 55,272,215,830,425 (96,995,461,541)
A corporate counterparty 384,737,291,675 211,710,931,600 - -

Details of inventories and associated rights used as collaterals for borrowings of the Group are disclosed in Note 26.
Another corporate counterparty 87,231,780,861 26,169,534,256 87,231,780,861 61,062,246,603 Detail movements of provision for obsolete inventories:
Details of overdue receivables which have been written off as Management assesses that these receivables are irrecoverable:
Currency: VND
Currency: VND
Debtor Recoverable Recoverable Beginning balance 96,995,461,541 58,478,146,455
Cost Cost
amount amount
Add: Provision made during the year 344,400,222,423 96,995,461,541
Ocean Thang Long JSC 41,098,537,541 41,098,537,541 41,098,537,541 -
Less: Utilisation and reversal of provision during the
(96,995,461,541) (58,478,146,455)
Trang Tien – Nha Trang Trading year
14,452,509,589 14,452,509,589 14,452,509,589 -
and Tourist Company Limited
Ending balance 344,400,222,423 96,995,461,541
Topcare Investment and Trading
10,468,046,036 10,468,046,036 10,468,046,036 -
Company Limited
Others 3,468,007,172 3,468,007,172 1,435,408,069 -
CHAPTER 6 CHAPTER 6
12. PREPAID EXPENSES 13. OTHER ASSETS
Short-term: Short-term:
Selling expenses related to apartments not yet Deposits for investment purpose (i) 1,658,670,826,179 4,789,340,371,022
2,752,756,498,957 1,718,749,696,667
handed over
Others 307,927,445,627 222,330,521,597
Prepaid committed profit for villas under business
1,103,598,553,390 639,882,103,856
co-operation contract and management program TOTAL 1,966,598,271,806 5,011,670,892,619
Provisional corporate income tax 558,615,647,813 498,649,303,769 Long-term:
Tools and supplies 182,978,501,038 100,963,377,103 Deposits for investment purpose (ii) 7,115,047,177,440 -
Others 160,794,920,957 164,780,231,761 TOTAL 7,115,047,177,440 -
TOTAL 4,758,744,122,155 3,123,024,713,156
Long-term: (i) As at 31 December 2017, this comprises: (ii) As at 31 December 2017, this comprises:
Prepaid land rental 1,252,345,408,910 852,344,458,259 • An unsecured and non-interest deposit of VND819 • Deposits of VND1,115 billion to a corporate
billion to an individual for acquiring additional shares counterparty earning interest rate which is determined
Tools and supplies 1,185,836,974,586 1,137,285,673,676 of an existing subsidiary of the Group. Up to the date by 12-month interest paid in arrears VND saving rate
of this consolidated financial statements, the deposit of Joint Stock Commercial Bank for Foreign Trade of
Pre-operating expenditures 391,898,594,170 38,374,812,090
was fully collected by the Group; and Vietnam, adjusted each 3-month. The deposit and
Others 231,869,099,246 224,706,789,135 interest will be used as settlement for 10% of contract
• A deposit of VND694 billion to a corporate
value under detailed contracts between the Group and
TOTAL 3,061,950,076,912 2,252,711,733,160 counterparty under a principle agreement for the
this corporate counterparty;
purpose of acquiring a potential real estate project.
• An unsecured deposit of VND4,500 billion earning
interest rate of 8.4% per annum during the deposit
term to a corporate counterparty for the purpose of
developing a potential real estate project; and
• An unsecured and non-interest deposit of VND1,500

billion to a corporate counterparty for the purpose of
developing a potential real estate project.
CHAPTER 6 CHAPTER 6
14. TANGIBLE FIXED ASSETS

Currency: VND
Buildings and structures Machinery and equipment Means of transportation Office equipment Others Total
Cost:
Beginning balance 20,163,585,099,528 7,994,079,372,142 808,092,001,987 761,617,905,015 437,867,803,811 30,165,242,182,483
Additions 9,114,117,330,346 3,523,938,611,380 402,960,252,924 265,668,723,114 149,042,310,709 13,455,727,228,473
In which:
Newly purchased - 1,307,406,536,744 385,741,492,956 264,710,741,103 148,974,725,015 2,106,833,495,818
Newly constructed 8,293,255,416,444 1,905,232,483,470 - - - 10,198,487,899,914
Acquisition of subsidiaries (Note 4) 174,268,070,088 4,005,232,856 17,218,759,968 957,982,011 67,585,694 196,517,630,617
Reclassified from investment properties (Note 16) 645,006,954,952 150,832,605,138 - - - 795,839,560,090
Reclassified (145,739,092,299) 145,739,092,299 - - - -
Other additions 147,325,981,161 10,722,660,873 - - - 158,048,642,034
Decreases (2,173,695,229,472) (383,770,213,836) (59,054,370,104) (138,778,249,971) (20,088,671,457) (2,775,386,734,840)
In which:
Sold, disposal (61,450,522,046) (72,708,406,797) (38,874,173,014) (21,240,994,808) (1,048,138,784) (195,322,235,449)
Reclassified to investment properties (Note 16) (1,503,695,468,796) (300,904,544,806) - - - (1,804,600,013,602)
Disposal of subsidiaries - (82,174,000) (20,180,197,090) (314,538,183) (1,317,315,407) (21,894,224,680)
Other decreases (608,549,238,630) (10,075,088,233) - (117,222,716,980) (17,723,217,266) (753,570,261,109)
Ending balance 27,104,007,200,402 11,134,247,769,686 1,151,997,884,807 888,508,378,158 566,821,443,063 40,845,582,676,116
In which:
Fully depreciated 26,074,365,392 129,202,804,364 23,459,276,964 58,394,034,146 30,479,443,711 267,609,924,577
Accumulated depreciation:
Additions 819,207,230,627 1,032,567,586,885 95,748,632,806 103,366,778,620 100,834,059,612 2,151,724,288,550
In which:
Depreciation for the year 773,640,860,161 997,609,143,772 95,748,632,806 103,366,778,620 100,834,059,612 2,071,199,474,971
Reclassified from investment properties (Note 16) 47,972,653,903 32,552,159,676 - - - 80,524,813,579
Reclassified (2,406,283,437) 2,406,283,437 - - - -
Decreases (169,303,701,274) (128,171,978,637) (31,615,063,400) (46,744,388,215) (2,260,128,668) (378,095,260,194)
In which:
Sold, disposal (10,383,268,757) (34,773,012,865) (23,055,533,376) (9,475,776,132) (170,190,994) (77,857,782,124)
Reclassified to investment properties (Note 16) (103,563,333,009) (91,721,500,425) - - - (195,284,833,434)
Disposal of subsidiaries - (82,174,000) (8,559,530,024) (300,525,904) (337,340,212) (9,279,570,140)
Other decreases (55,357,099,508) (1,595,291,347) - (36,968,086,179) (1,752,597,462) (95,673,074,496)
Ending balance 2,266,815,210,213 2,740,264,304,400 309,896,381,072 289,233,062,936 265,840,375,625 5,872,049,334,246
Net carrying amount:
Ending balance 24,837,191,990,189 8,393,983,465,286 842,101,503,735 599,275,315,222 300,981,067,438 34,973,533,341,870
Details of tangible fixed assets used as collaterals for borrowings and corporate bonds of the Group and third parties are
disclosed in Note 26.
CHAPTER 6 CHAPTER 6
15. INTANGIBLE FIXED ASSETS

Currency: VND
Indefinite land use rights Distribution right Definite land use rights E-commerce website Computer software Others (Restated) Total
Cost:
Beginning balance 37,127,969,964 112,320,981,723 192,715,386,072 298,496,910,815 467,784,641,316 65,186,117,874 1,173,632,007,764
Additions - - - - 222,665,763,431 - 222,665,763,431
In which:
Newly purchased - - - - 222,665,763,431 - 222,665,763,431
Decreases - (59,666,691,717) - (21,432,000,000) (67,078,473,220) (25,856,244,336) (174,033,409,273)
In which:
Sold, disposal - (9,202,304,251) - - - - (9,202,304,251)
Other decreases - (50,464,387,466) - (21,432,000,000) (67,078,473,220) (25,856,244,336) (164,831,105,022)
Ending balance 37,127,969,964 52,654,290,006 192,715,386,072 277,064,910,815 623,371,931,527 39,329,873,538 1,222,264,361,922
In which:
Fully amortised - - - 219,027,034,678 146,249,509,343 2,156,057,702 367,432,601,723
Accumulated amortisation:
Beginning balance - 84,426,792,339 36,131,276,508 99,278,468,588 128,758,784,154 10,947,030,325 359,542,351,914
Additions - 15,426,647,605 6,481,753,667 144,968,058,704 83,056,482,501 6,475,375,585 256,408,318,062
In which:
Amortisation for the year - 15,426,647,605 6,481,753,667 144,968,058,704 83,056,482,501 6,475,375,585 256,408,318,062
Decreases - (47,199,149,938) - - (15,723,073,854) (7,174,744,425) (70,096,968,217)
In which:
Sold, disposal - (4,327,295,092) - - - - (4,327,295,092)
Other decreases - (42,871,854,846) - - (15,723,073,854) (7,174,744,425) (65,769,673,125)
Ending balance - 52,654,290,006 42,613,030,175 244,246,527,292 196,092,192,801 10,247,661,485 545,853,701,759
Beginning balance 37,127,969,964 27,894,189,384 156,584,109,564 199,218,442,227 339,025,857,162 54,239,087,549 814,089,655,850
Ending balance 37,127,969,964 - 150,102,355,897 32,818,383,523 427,279,738,726 29,082,212,053 676,410,660,163
Details of intangible fixed assets used as collaterals for borrowings and corporate bonds of the Group are disclosed in Note
26.
CHAPTER 6 CHAPTER 6
16. INVESTMENT PROPERTIES

Currency: VND Investment properties of the Group mainly include
shopping malls owned and operated by the Group for
Land use rights Buildings and structures Machinery and equipment Total providing leasing and related services.
Cost: As at 31 December 2017, the Group was in the process of

determining the fair value of these investment properties.
Beginning balance 7,335,758,400,081 9,445,306,328,473 2,405,292,541,549 19,186,357,270,103
Additions 577,308,232,372 2,874,414,615,447 832,280,989,833 4,284,003,837,652 Details of investment properties used as collaterals
for borrowings and corporate bonds of the Group are
In which:
presented in Note 26.
Newly purchased 91,322,144,595 133,661,913,091 - 224,984,057,686
Revenue and expenses relating to investment properties
Newly constructed 59,249,642,671 1,373,250,731,897 531,376,445,027 1,963,876,819,595 are presented in Note 29.2.
Acquisition of subsidiaries (Note 4) 794,855,493 289,748,091,276 - 290,542,946,769
Reclassified from tangible fixed assets (Note 14) 425,941,589,613 1,077,753,879,183 300,904,544,806 1,804,600,013,602
Decreases (1,310,730,605,202) (1,091,084,870,730) (226,194,438,040) (2,628,009,913,972)

17. CAPITALISED BORROWING
COSTS
In which:
Sold, disposal (35,460,960,000) (51,725,090,562) (9,562,734,180) (96,748,784,742) During the year, the Group capitalised borrowing costs
with an amount of VND1,036 billion (for the year ended 31
Disposal of subsidiaries (1,042,508,373,783) (243,494,542,238) - (1,286,002,916,021)
December 2016: VND1,087 billion). These costs related
Reclassified to inventories (181,804,505,077) (128,452,246,662) (16,155,209,777) (326,411,961,516) to specific and general borrowings obtained to finance the
Reclassified to tangible fixed assets (Note 14) (50,956,766,342) (594,050,188,610) (150,832,605,138) (795,839,560,090) real estate projects of the Group.
Other decreases - (73,362,802,658) (49,643,888,945) (123,006,691,603) The capitalised borrowing costs in relation to the general
Ending balance 6,602,336,027,251 11,228,636,073,190 3,011,379,093,342 20,842,351,193,783 borrowings are determined by applying a capitalisation
rate of 9.43% per annum (for the year ended 31 December
Accumulated depreciation:
2016: 9.74% per annum) on the accumulated weighted
Beginning balance 314,606,592,146 825,328,195,518 684,295,185,948 1,824,229,973,612 average expenditures of the real estate projects. The
Additions 100,690,916,746 442,985,480,629 395,723,308,602 939,399,705,977 capitalisation rate used is the weighted average of the
borrowing rates applicable to the borrowings of the Group
In which:
that are outstanding during the year.
Depreciation/amortisation for the year 82,816,779,904 357,296,284,462 304,001,808,177 744,114,872,543
Reclassified from tangible fixed assets (Note 14) 17,874,136,842 85,689,196,167 91,721,500,425 195,284,833,434
Decreases (11,092,295,567) (68,801,634,283) (39,805,464,856) (119,699,394,706)
In which:
Sold, disposal - (466,043,009) (255,961,836) (722,004,845)
Disposal of subsidiaries - (7,658,853,492) - (7,658,853,492)
Reclassified to inventories - (23,796,379,446) (6,997,343,344) (30,793,722,790)
Reclassified to tangible fixed assets (Note 14) (11,092,295,567) (36,880,358,336) (32,552,159,676) (80,524,813,579)
Ending balance 404,205,213,325 1,199,512,041,864 1,040,213,029,694 2,643,930,284,883
Beginning balance 7,021,151,807,935 8,619,978,132,955 1,720,997,355,601 17,362,127,296,491
Ending balance 6,198,130,813,926 10,029,124,031,326 1,971,166,063,648 18,198,420,908,900
CHAPTER 6 CHAPTER 6
18. CONSTRUCTION IN PROGRESS

Projects Ending balance Beginning balance (Restated) Projects Ending balance Beginning balance (Restated)
Can Gio urban area project 12,273,714,689,320 12,243,684,937,843 Vincom Tay Ninh project 255,261,897,829 34,526,928,419
Vinhomes Central Park project 2,642,045,375,209 3,929,866,564,685 Vinpearl Hoi An project - 192,334,811,149
Vinhomes Metropolis project 1,581,236,366,722 3,518,540,132,293 Vinpearl Beach Front Condotel project 239,801,405,819 -
Gia Lam urban area project 1,566,673,525,805 108,044,747,462 Vinhomes Riverside - The Harmony project 247,632,049,160 -
Vinhomes Golden River project 1,321,716,493,173 533,896,719,755 Hon Mot project 235,543,778,539 230,209,993,419
Agricultural projects 1,180,726,564,843 1,276,545,915,977 Vincom Plaza Suoi Hoa, Bac Ninh project 234,926,380,939 292,944,453,570
Vinhomes Smart City project 1,118,860,549,445 989,138,707,862 Vincom Ha Nam project 217,685,076,583 81,799,536,519
Vinhomes Melodia project 869,446,057,339 823,768,956,046 Maximark supermarket chains project 128,746,631,423 173,679,009,391
Co Loa project 706,146,938,493 44,292,427,562 Southern Star project 189,461,963,039 189,272,511,069
Vinhomes Cau Rao 2 project 700,172,268,056 - Vincom Son La project 172,796,852,936 13,985,448,991
Vinfast project 685,023,176,672 - Vinpearl Phu Quoc project 171,682,130,746 229,381,668,929
Vinpearl Hoi An Southern project 710,392,064,844 - Vinpearl Empire Condotel project 144,584,162,905 139,354,536,405
Vinmec Hospital project 646,470,735,470 499,261,077,964 Vincom Lang Son project 171,152,826,356 46,830,447,487
Tien Phong Flower Village project 636,545,018,848 - Times Garden Ha Long project 143,865,288,978 42,171,335,715
Con Au golf course project, Can Tho 601,844,855,723 456,273,969,231 VinMart and VinMart+ supermarket chains project 100,471,040,773 181,263,354,228
Vincom Thanh Hoa project 586,292,767,938 116,648,455,745 Vinpearl Cua Hoi project 90,792,873,500 140,876,937,416
Vinpearlland amusement park projects 1,918,864,883,095 639,686,691,498 Giang Vo project 70,871,783,274 49,735,587,160
Vincom Hung Vuong project, Hue 477,338,918,308 185,547,295,582 Vinhomes Gardenia project 38,909,817,094 310,114,974,026
Vinpearl Cua Sot project - 80,314,018,516 Vincom Ha Tinh project - 330,725,763,495
Vinhomes Skylake project 428,837,554,802 - Vincom Vinh Long project - 262,530,998,697
Vinhomes Star project 426,501,750,131 423,119,239,394 Times City Park Hill project - 203,234,960,766
Vinpearl Quy Nhon project 414,924,862,649 413,960,206,942 Tay Ho View project - 169,954,400,993
Vinhomes Imperia Hai Phong project 378,159,192,398 1,130,454,940,277 Vincom Plaza Tra Vinh project - 139,556,964,057
International passenger port project 364,512,528,297 254,586,113,776 Vincom Plaza Hau Giang project - 115,769,011,486
Golf and Spa areas Vinpearl Nha Trang projects 304,514,286,800 546,856,749,478 Nam Long project - 104,000,000,000
Vincom Quang Binh project 295,232,966,763 79,922,045,343 Other projects 967,672,413,700 1,001,391,488,571
Vu Yen island eco-urban area project 296,738,973,259 901,924,230,619 TOTAL 37,492,138,281,596 34,229,427,585,378
Lang Van project 271,117,951,582 269,546,570,195
Vinhomes Green Bay project 266,228,592,019 87,901,749,375 Construction in progress used as collaterals for borrowings and corporate bonds of the Group and third parties are disclosed
in Note 26.
CHAPTER 6 CHAPTER 6
19. LONG-TERM INVESTMENTS

19.1 Investment in associates and other entities
Currency: VND
Beginning balance
Note Ending balance
(Restated)
Investment in associates 19.1.1 2,439,624,600,795 1,730,283,476,020
Investments in other entities 19.1.2 2,176,543,861,811 1,616,241,288,531
Provision for diminution of long-term

(50,382,547,589) (56,192,900,196)
investments
TOTAL 4,565,785,915,017 3,290,331,864,355
19.1.1 Investment in associates

Currency: VND
Beginning balance Additional investment

Share of profit/(loss) from associates Diminution of investment Dividend received Ending balance
(Restated) during the year
Truong Thanh Furniture Corporation (i) 232,999,777,446 - - (232,999,777,446) - -
Vinaconex Water Supply JSC (“Viwasupco JSC”) (ii) 872,488,610,366 - 52,960,983,605 (892,749,593,971) (32,700,000,000) -
Phu Quoc Tourism JSC (iii) 492,139,241,524 1,905,000,000,000 (10,063,517,095) - - 2,387,075,724,429
Nha Trang Port JSC (iv) 80,262,801,920 - 1,026,329,485 (81,289,131,405) - -
Hanoi Breeds JSC 47,654,104,725 - 134,159,176 - - 47,788,263,901
Vietnam Book Printing JSC 4,738,940,039 - 342,972,426 - (321,300,000) 4,760,612,465
TOTAL 1,730,283,476,020 1,905,000,000,000 44,400,927,597 (1,207,038,502,822) (33,021,300,000) 2,439,624,600,795
(i) In March and April 2017, the Group disposed 29.9% consolidated income statement; (iii) In 2017, the Group acquired 190,500,000 shares (iv) On 5 September 2017, the Group acquired 13,500,000
shares of Truong Thanh Furniture Corporation. Thereby, issued by Phu Quoc Tourism JSC to increase charter capital shares of Nha Trang Port JSC and the voting right of
(ii) On 1 September 2017, the Group disposed all shares
Truong Thanh Furniture Corporation is no longer an with total consideration of VND1,905 billion. Thereby, the Group in Nha Trang Port JSC increased to 85.55%.
of Viwasupco JSC. Thereby, Viwasupco JSC is no longer an
associate of the Group. Gain from the disposal with the voting right of the Group in Phu Quoc Tourism JSC Thereby, Nha Trang Port JSC became a subsidiary of the
associate of the Group;
an amount of VND80 billion was recognised in the remained unchanged; and Group (Note 4).
CHAPTER 6 CHAPTER 6
19.1.1 Investment in associates
Provision (VND)
(56,192,900,196)
(56,192,900,196)
Details of these associates and the voting rights held by the Group as at 31 December 2017 are as follows:
Currency: VND
Cost (VND)
12,400,000,000
3,000,000,000
552,395,000,000
17,467,729,348
521,071,699,183
41,669,660,000
24,487,200,000
443,750,000,000
1,616,241,288,531
Beginning balance (Restated)
Voting Equity
No Name rights interest Registered office’s address Principal activities
(%) (%)
No.77 Le Hong Phong, Nguyen
1 Hanoi Breeds JSC 37.63 22.52 Trai street, Ha Dong district, Cattle breeding
Voting
right (%)
3.87
3.00
10.00
15.20
9.62
19.00
15.02
12.50
-
Hanoi
No.22B, Hai Ba Trung street,

Vietnam Book Printing Trading books and related
2 35.00 22.86 Trang Tien ward, Hoan Kiem
JSC items and lease offices
district, Hanoi
Number of
shares
400,000
300,000
50,000,000
(i)
(i)
5,700,000
1,201,800
(i)
-
Bai Dai area, Ganh Dau
3 Phu Quoc Tourism JSC 30.00 29.89 commune, Phu Quoc district, Providing short–stay services
Kien Giang province
Provision (VND)
(9,125,891,479)
(41,256,656,110)
(50,382,547,589)
Number of shares
Details of other long-term investments of the Group as at 31 December 2017 are disclosed as follows:
Name Ending balance Beginning balance
Hanoi Breeds JSC 677,306 677,306
Cost (VND)
12,400,000,000
552,395,000,000
17,467,729,348
521,071,699,183
45,469,660,000
1,013,750,570,893 3
13,989,202,387
2,176,543,861,811
Vietnam Book Printing JSC 297,500 297,500
Ending balance
Phu Quoc Tourism JSC 225,000,000 34,500,000
Viwasupco JSC - 21,800,000
Nha Trang Port JSC - 7,492,240
Voting
right (%)
3.87
10.00
15.20
9.62
19.00
18.60
15.00
Truong Thanh Furniture Corporation - 43,233,000
Number of
shares
400,000
50,000,000
(i)
(i)
6,080,000
(i)
19.1.2 Investment in other entities
Energy
Vinhomes Management JSC

Kim Ngoc Joint Venture LLC
Thanh Nien Media JSC
Vinatextmart JSC (iii)
Vien Dong Pearl LLC
Van Phong Port LLC

Phong
Development JSC
Viwaco JSC
M.Y.M JSC
TOTAL
Thuan
(ii)
CHAPTER 6 CHAPTER 6
(i) These are limited liabilities companies; (iii) As at 31 December 2017, the fair value of this
investment is VND556.5 billion.
(ii) In May and August 2017, Vinhomes 1 LLC and
The fair value of other investments were not determined
Vinhomes 2 LLC were merged into Vinhomes
in the absence of necessary information.
Management JSC. Thereby, the Group's equity interest
in Vinhomes Management JSC increased to 18.6% as
disclosed in Note 4;
19.2 Held-to-maturity investment
Currency: VND
Long-term deposits (i) 1,830,000,000,000 -
Long-term bonds (ii) 90,000,000,000 70,000,000,000
TOTAL 1,920,000,000,000 70,000,000,000
(i) This comprises bank deposits in VND with terms of 3 (ii) Balance as at 31 December 2017 includes long-term
years earning interest rate of 7.1% per annum. bonds issued by commercial banks with term of 10
years earning interest rates ranging from 7.57% to 8%
per annum.
VINPEARL DA NANG OCEAN RESORT & VILLAS

CHAPTER 6 CHAPTER 6
20. Goodwill
Currency: VND
Cost Accumulated amortisation Net carrying amount

Goodwill on acquisition of
subsidiaries Beginning balance
Additions Disposed Ending balance Beginning balance Amortisation Disposed Ending balance Beginning balance Ending balance
(Restated)
Hanoi Southern JSC - - 1,127,149,041,384 224,114,947,680 - 894,758,064,695

2,246,022,053,759 2,246,022,053,759 1,351,263,989,064 1,118,873,012,375
PFV JSC 567,441,137,177 - - 567,441,137,177 293,927,829,405 53,834,961,099 - 347,762,790,504 273,513,307,772 219,678,346,673
Sai Dong JSC - - 807,375,302,313 224,175,554,161 - 1,031,550,856,474

2,251,823,291,311 2,251,823,291,311 1,444,447,988,998 1,220,272,434,837
Royal City JSC - (30,656,010,788) 665,112,374,580 126,206,861,830 (17,700,622,206) 773,618,614,204 597,595,387,599 458,433,137,187
1,262,707,762,179 1,232,051,751,391
Vinpearl Danang LLC (ii) 208,586,514,194 - - 208,586,514,194 128,631,690,993 24,991,434,161 - 153,623,125,154 79,954,823,201 54,963,389,040
Tan Lien Phat JSC 494,880,330,007 - (2,963,622,923) 491,916,707,084 103,253,504,041 49,516,013,916 (712,198,104) 152,057,319,853 391,626,825,966 339,859,387,231
Vincom Construction 1 LLC 20,000,000,000 - - 20,000,000,000 6,003,649,635 1,998,175,182 - 8,001,824,817 13,996,350,365 11,998,175,183
Vincommerce JSC 328,706,927,483 - (8,449,479,382) 320,257,448,101 81,191,580,522 32,354,505,511 (2,379,092,342) 111,166,993,691 247,515,346,961 209,090,454,410
Khanh Gia Investment Trading

214,714,616,533 - (92,182,661,002) 122,531,955,531 44,000,900,948 21,514,150,609 (21,212,670,848) 44,302,380,709 170,713,715,585 78,229,574,822
Services LLC
Vinatextmart LLC 17,075,684,954 - (438,934,004) 16,636,750,950 3,489,491,811 1,689,292,265 (106,924,587) 5,071,859,489 13,586,193,143 11,564,891,461
An Phong JSC (i) 480,340,849,596 - (206,223,024,863) 274,117,824,733 55,168,411,886 49,681,045,651 (28,884,612,200) 75,964,845,337 425,172,437,710 198,152,979,396
Hoang Lan LLC 18,942,936,598 - (797,729,232) 18,145,207,366 1,726,326,734 1,892,219,994 (97,211,616) 3,521,335,112 17,216,609,864 14,623,872,254
Hoa Hong Vang LLC 12,602,352,813 - (530,713,133) 12,071,639,680 1,155,388,121 1,258,855,713 (65,061,349) 2,349,182,485 11,446,964,692 9,722,457,195
Savina JSC 11,097,192,653 - - 11,097,192,653 1,422,940,144 2,085,835,954 - 3,508,776,098 9,674,252,509 7,588,416,555
Ecology JSC 322,419,360,569 - - 322,419,360,569 1,579,110,933 32,215,457,599 - 33,794,568,532 320,840,249,636 288,624,792,037
Phu Gia JSC 34,561,278,264 - - 34,561,278,264 398,397,030 3,453,289,506 - 3,851,686,536 34,162,881,234 30,709,591,728
Vietnam Investment JSC 246,843,055,863 - - 246,843,055,863 1,212,135,061 24,664,033,778 - 25,876,168,839 245,630,920,802 220,966,887,024
Vicentra JSC 182,145,086,601 - - 182,145,086,601 3,062,824,755 18,214,508,660 - 21,277,333,415 179,082,261,846 160,867,753,186
Nha Trang Port JSC (iii) - 11,056,322,262 - 11,056,322,262 - 513,347,426 - 513,347,426 - 10,542,974,836
Co.Co International Ltd (iii) - 190,318,750,552 - 190,318,750,552 - 2,813,362,313 - 2,813,362,313 - 187,505,388,239
Other subsidiaries 42,336,588,503 - (13,923,505,242) 28,413,083,261 17,623,317,187 3,874,856,504 (5,463,137,634) 16,035,036,057 24,713,271,316 12,378,047,204
TOTAL 8,963,247,019,057 201,375,072,814 (356,165,680,569) 8,808,456,411,302 3,343,484,217,483 901,062,709,512 (76,621,530,886) 4,167,925,396,109 5,619,762,801,574 4,640,531,015,193
(i) In 2017, An Phong JSC was merged into South Vincom Retail LLC, which is another subsidiary of the Group;
(ii) In 2017, Vinpearl Danang LLC was merged into Vinpearl JSC, which is another subsidiary of the Group; and
(iii) The goodwill has arisen from business combinations during the year as presented in Note 4.
CHAPTER 6 CHAPTER 6
21. TRADE PAYABLES AND ADVANCES FROM CUSTOMERS 22. STATUTORY OBLIGATIONS
21.1 Short-term trade payables
Balance (Amount payable) Payables for the

Beginning balance Payment made Ending balance
year
Trade payables to suppliers 8,240,916,817,514 6,452,935,402,714 Payables
Payables to a corporate counterparty 203,302,654,454 675,403,553,352 Value added tax 519,145,453,004 4,265,194,639,762 (4,479,011,339,134) 305,328,753,632
Trade payables to others 8,037,614,163,060 5,777,531,849,362 Corporate income tax 1,279,432,234,001 3,926,298,110,828 (3,890,618,182,474) 1,315,112,162,355
Payables to related parties (Note 36) 4,543,547,368 5,218,835,859 Personal income tax 65,955,384,490 967,703,664,516 (942,609,479,683) 91,049,569,323
TOTAL 8,245,460,364,882 6,458,154,238,573 Land use fee and land rental

5,474,528,647,601 1,681,309,782,456 (4,014,056,728,064) 3,141,781,701,993
fee
Other taxes 27,485,214,645 260,495,946,647 (208,148,111,934) 79,833,049,358
TOTAL 7,366,546,933,741 11,101,002,144,209 (13,534,443,841,289) 4,933,105,236,661
21.2 Advances from customers

Currency: VND
Currency: VND
Beginning balance Payables for the year Payment made Ending balance
Receivables
Downpayment from customers under real estate sale and
54,119,899,720,605 46,746,483,533,640
purchase agreements Overpayment of
45,050,552,224 166,106,490,796 (9,302,188,877) 201,854,854,143
corporate income tax
Advance from customers under general construction contracts 413,809,440,185 539,215,154,107
Other taxes 66,406,983,184 8,330,654,303 (62,914,110,831) 11,823,526,656
Advance from customers for restaurant and hospitality services 189,563,627,301 151,314,538,506
TOTAL 111,457,535,408 174,437,145,099 (72,216,299,708) 213,678,380,799
Advance from customers for healthcare services 31,810,932,023 51,211,161,868
Advance from customers for retail trading 17,639,165,277 22,912,607,823
Advance from customers for educational services and others 49,711,755,388 26,143,872,704
TOTAL 54,822,434,640,779 47,537,280,868,648
CHAPTER 6 CHAPTER 6
23. SHORT-TERM ACCRUED EXPENSES 25. OTHER PAYABLES
Currency: VND 25.1 Other short-term payables

Currency: VND
Interests expense 2,122,242,028,100 1,205,242,481,968
Construction costs 6,256,615,957,532 5,825,575,368,830 Payables under deposits, loans and other agreements related to real
17,634,848,595,573 16,724,175,440,632
estate projects
Commission fee 722,467,081,354 424,588,008,516
Deposits for investment purpose (i) 3,273,198,353,531 2,270,266,929,290
Committed profit under business co-operation contracts and villas
622,556,069,584 299,083,263,076
management program Collection on behalf 1,512,939,781,432 67,703,284,120
Other accrued expenses 692,715,406,823 699,772,761,485 Apartment maintenance fund held on behalf of customers 1,140,662,807,063 490,190,298,633
TOTAL 10,416,596,543,393 8,454,261,883,875 Deposits by tenants to be refunded within the next 12 months (Note
184,697,274,921 142,961,783,374
25.2)
In which:
Payable under business co-operation contract 116,720,664,690 -
Short-term accrued expenses due to related parties (Note 36) 13,868,302,069 351,047,955,645
Payable to customers due to cancellation of contracts 44,714,739,981 78,482,282,119
Dividend payable - 385,018,955,101
Others 553,140,200,939 309,757,882,527

24. UNEARNED REVENUE
Currency: VND TOTAL 24,460,922,418,130 20,468,556,855,796
Ending balance Beginning balance In which:
Short-term: Other short-term payables to related parties (Note 36) 299,916,673,750 705,412,887,222
Villas leasing management services 609,257,787,507 281,220,641,246

(i) Ending balance as at 31 December 2017 comprises of: • A deposit of VND450 billion from a corporate
Education services 682,776,358,364 374,544,782,280 counterparty under a business cooperation contract
• Deposits of VND1,487 billion from corporate
with the Company in order to develop a real-estate
Customer loyalty program - Vingroup Card 262,847,850,899 122,751,293,234 counterparties and individuals to acquire shares in a
project; and
number of investments owned by the Group. Up to
Hospitality and entertainment services 92,362,235,975 284,235,383,964 the date of these consolidated financial statements, • A deposit of VND275 billion from a corporate
the Group has settled some of these deposits with an counterparty to acquire shares of an entity which is a
Office leasing 16,576,272,128 24,775,727,931
amount of VND961 billion; long-term investment of the Group.
Other unearned revenue 91,610,971,663 51,310,830,403
• Deposits of VND989 billion from a corporate
TOTAL 1,755,431,476,536 1,138,838,659,058 counterparty to guarantee obligation under a business

cooperation contract with existing subsidiaries of the
Long-term: Group ;
Villas leasing management services 5,459,695,246,103 2,286,854,496,566
25.2 Other long-term liabilities
Office leasing 25,698,532,007 57,194,087,287 Currency: VND
Other unearned revenue 49,965,584,668 45,715,997,629 Ending balance Beginning balance
TOTAL 5,535,359,362,778 2,389,764,581,482 Deposits from tenants 878,583,397,934 747,240,797,624
In which: In which: Deposits from tenants to be refunded within the next 12

(184,697,274,921) (142,961,783,374)
months (Note 25.1)
Unearned revenue from related parties
Others 18,864,725,041 35,840,036,692
70,705,898,141 81,871,768,284
(Note 36)
TOTAL 712,750,848,054 640,119,050,942
CHAPTER 6 CHAPTER 6
26. LOANS AND DEBTS

26.1 Short-term loans
Currency: VND
Beginning balance Movement during the year Ending balance

Notes
Carrying value Payable amount Increase Decrease Carrying value Payable amount
Current portion of long-term loans

26.2.1 873,470,632,184 873,470,632,184 3,356,492,983,280 (873,470,632,185) 3,356,492,983,279 3,356,492,983,279
from banks
Current portion of corporate bonds 26.2.2 3,973,682,722,225 3,973,682,722,225 7,336,142,817,320 (4,000,000,000,000) 7,309,825,539,545 7,309,825,539,545
Short-term loans from banks 26.1.1 743,498,805,225 743,498,805,225 5,053,455,438,163 (3,411,304,708,842) 2,385,649,534,546 2,385,649,534,546
Others 26.1.2 - - 9,447,000,000,000 (4,358,000,000,000) 5,089,000,000,000 5,089,000,000,000
TOTAL 5,590,652,159,634 5,590,652,159,634 25,193,091,238,763 (12,642,775,341,027) 18,140,968,057,370 18,140,968,057,370
26.1.1 Short-term loans from banks
Details of short-term loans from banks are presented as below:
Currency: VND
Ending balance
Lender Maturity date Interest rate Collateral
Original currency VND
13,687,679 EUR 373,172,656,472 From April 2018 to December 2018 3.8% per annum
Joint Stock Commercial Bank for Foreign Trade of Vietnam (i)
299,904,466,590 From January 2018 to February 2018 6.5% per annum
6,914,661 EUR 191,121,220,642 From January 2018 to October 2018 3.8% per annum
Vietnam Technological and Commercial Joint Stock Bank 465,738 USD 10,593,211,265 From Jan 2018 to May 2018 3.5% per annum (i)
2,095,166 USD 47,717,420,909 From March 2018 to October 2018 5% per annum
Joint Stock Commercial Bank for Investment and Development of

496,554,691,624 From January 2018 to April 2018 From 6.1% to 6.5% per annum (i)
Vietnam
Tien Phong Commercial Joint Stock Bank 274,991,187,839 From February 2018 to March 2018 6.6% per annum (i)
Vietnam Prosperity Joint Stock Commercial Bank 621,798,542,444 From January 2018 to April 2018 From 6% to 6.3% per annum (ii)
Maybank Vietnam 69,796,136,761 February 2018 6.5% per annum (i)
TOTAL 2,385,649,534,546
(i) These loans are unsecured; and
(ii) This loan is secured by a number of shares of a subsidiary owned by the Company.
CHAPTER 6 CHAPTER 6
26.1.2 Other short-term loans
Ending balance as at 31 December 2017 comprises of:
Unsecured loans from a corporate counterparty with an amount of VND5,041 billion bearing interest rate at 7% per
annum. These loans will mature from April 2018 to December 2018; and
An unsecured loan with an mount of VND48 billion from an individual bearing interest rate at 6% per annum will mature
in May 2018.
Currency: VND
26.2 Long-term loans
Beginning balance Movement during the year Ending balance

Notes
Carrying value Payable amount Increase Decrease Carrying value Payable amount
Long-term loans from

26.2.1 10,383,219,417,884 10,383,219,417,884 397,279,162,042 (2,865,655,030,761) 7,914,843,549,165 7,914,843,549,165
banks
Convertible loans 449,616,637,420 449,616,637,420 2,490,190,350 (452,106,827,770) - -
Corporate bonds 26.2.2 23,335,990,548,299 23,335,990,548,299 16,455,589,711,999 (16,486,897,912,419) 23,304,682,347,879 23,304,682,347,879
TOTAL 34,168,826,603,603 34,168,826,603,603 16,855,359,064,391 (19,804,659,770,950) 31,219,525,897,044 31,219,525,897,044
26.2.1 Long-term loans from banks

Details of long-term loans are presented as below: Currency: VND
Ending balance
Lender Maturity date Interest rate Collateral
USD VND
12-month interest paid in arrears VND saving rate for

Joint Stock Commercial Bank for Foreign Trade of Vietnam 2,359,540,302,158 From January 2018 to October 2025 (i)
individual (+) 3% to 3.5% per annum; 7.8% per annum
In which: current portion (1,477,617,983,279)
Vietnam Joint Stock Commercial Bank for Industry and Trade 855,800,000,000
12-month interest paid in arrears VND saving rate for
November 2018 (ii)
In which: current portion (855,800,000,000) individual (+) 3.5% per annum
Joint Stock Commercial Bank for Investment and Development 12-month interest paid in arrears VND saving rate for
197,232,109,983 December 2024 (iii)
of Vietnam individual (+) 2% per annum
10% per annum for the first period, for subsequent periods,
Vietnam Technological and Commercial Joint Stock Bank 1,213,565,229,651 January 2021 12-month interest paid in arrears VND saving rate for (iv)
individual (+) 3.33% per annum
Syndicated loan 300,000,000 6,645,198,890,652

From January 2018 to July 2021 3-month LIBOR (+) 5% per annum (v)
In which: current portion (1,023,075,000,000)
TOTAL 7,914,843,549,165
In which:
Long-term loans 11,271,336,532,444
Current portion (3,356,492,983,279)
CHAPTER 6 CHAPTER 6
(i) Loans from Joint Stock Commercial Bank for Foreign (iii) Loans from Joint Stock Commercial Bank for Investment
Currency: VND
Collaterals
(i)
(ii)
(iii)
(iv)
Trade of Vietnam and Development of Vietnam
These loans are secured by the land use rights and assets This loan is secured by Vinmec International General
attached to the land of Vinhomes Central Park project; a Hospital in Nha Trang.
part of assets and rights to receive the insurance benefit
(iv) Vietnam Technological and Commercial Joint Stock
Interest rate
according to insurance contracts related to Vinpearl Ha
12-month interest paid-in-arrears VND saving rates (+) 3%

per annum; 8.1% per annum
12-month interest paid-in-arrears VND saving rates (+)

3.5% - 5% per annum; and from 7.75% per annum to
10.5% per annum
12-month interest paid-in-arrears VND saving rates (+) 3%

per annum
10% per annum

Bank
Long Luxury Resort; the greenhouses, irrigation systems,
machineries and equipments of VinEco Hai Phong farm This loan is secured by a number of shares of a subsidiary
project, VinEco Long Thanh farm project and a number of owned by other subsidiary and a portion of capital
shares of the Company owned by individuals. contribution of a subsidiary in another subsidiary.
(ii) Loans from Vietnam Joint Stock Commercial Bank for (v) Syndicated loan
Industry and Trade This loan is from Credit Suisse AG – Singapore Branch,
These loans are secured by land use rights and assets Industrial and Commercial Bank of China, Maybank
attached on land of Landmark 81 Tower (except apartment International – Labuan Branch and Taipei Fubon
component) formed in the future, receivable rights of some Commercial Bank – Foreign Branch with total principal
apartment buildings in Vinhomes Central Park project. of USD300 million, disbursed on 11 July 2016 and 8
September 2016. This loan is secured by a number of
ordinary shares of certain subsidiaries in the Group.
26.2.2 Corporate bonds

Currency: VND
Maturity date
From July 2018 to July

From June 2018 to March
2022
From November 2018 to

February 2026
October 2018
2019
Domestic corporate bonds 30,614,507,887,424 27,309,673,270,524
In which: current portion of domestic corporate

(7,309,825,539,545) (3,973,682,722,225)
bonds
Ending balance
TOTAL 23,304,682,347,879 23,335,990,548,299
5,787,277,777,830
21,932,706,014,490
2,295,686,039,548
598,838,055,556
23,304,682,347,879
(2,797,608,333,330)
(1,991,531,166,667)
(2,295,686,039,548)
(225,000,000,000)
30,614,507,887,424
(7,309,825,539,545)

Vietnam Bank for Industry and Trade Securities
Vietcombank Securities Company Limited

Techcom Securities Company Limited
FPT Securities Joint Stock Company
Current portion of long-term bonds

Domestic corporate bonds
In which: current portion

Joint Stock Company
Long-term bonds
Underwriter
In which:
TOTAL

CHAPTER 6 CHAPTER 6
(i) These bonds are secured by a portion of the shopping malls of Vincom Ba Trieu and Vincom Center Long Bien; the land
use rights and assets attached to the land of Vincom Mega Mall Thao Dien, Vincom Plaza Ngo Quyen – Da Nang and assets
attached to the land of Vincom Center Pham Ngoc Thach, Vincom Plaza Thu Duc, Vincom Plaza Ha Long. These shopping
malls are owned by North Vincom Retail LLC and South Vincom Retail LLC, subsidiaries.
(ii) These bonds are secured by the entire project "Vinpearlland Amusement Park" except for the Vietnamese pagoda model
area of Vinpearl Amusement Park project, Vinpearl Nha Trang Resort 5-star hotel, a number of shares of a subsidiary owned
by another subsidiary, a portion of Vincom Dong Khoi Building, which is owned by subsidiaries; the capital contribution
capital of the Company in a subsidiary; the payment is guaranteed by a trust fund of the Asian Development Bank through
an agreement secured by shares of certain subsidiaries.
(iii) This bond is secured by a portion of land use rights, machineries, equipment of Vinpearl Nha Trang Bay Resort & Villas
project and Vinpearl Premium Golf Land project.
(iv) This bond is secured by a number of shares of a subsidiary owned by Company.
27. SHORT-TERM PROVISION

Currency: VND
Warranty provision 169,598,159,859 127,414,378,407
Others 5,804,006,578 67,641,416,970
TOTAL 175,402,166,437 195,055,795,377
CHAPTER 6 CHAPTER 6
28. OWNERS’ EQUITY

28.1 Increase and decrease in owners’ equity Currency: VND
Other funds belonging Non-controlling
Issued share capital Share premium Treasury shares Undistributed earnings Total
to owners’ equity interest (i)
Previous year
Beginning 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 37,584,924,896,793
Bonus issue 4,844,731,620,000 (4,844,731,620,000) - - - - -
Net profit for the year - - - - 3,384,588,126,613 1,073,557,030,509 4,458,145,157,122
Conversion of bonds 716,667,640,000 1,485,854,312,538 - - - - 2,202,521,952,538
Distribution to other funds - - - 5,000,000,000 (5,000,000,000) - -
Stock dividends 2,133,799,410,000 - - - (2,133,799,410,000) - -
Capital contribution by non-controlling interest - - - - - 1,400,346,395,000 1,400,346,395,000
Acquisition of new subsidiaries - - - - (23,825,982,181) 6,989,928,823,413 6,966,102,841,232
Step-up acquisition of equity interest in existing subsidiaries - - - - (1,360,145,951,101) (2,646,722,525,621) (4,006,868,476,722)

Partial disposal of equity interest in existing subsidiaries without loss of
- 65,109,580,602 - - 454,415,285,297 560,747,117,687 1,080,271,983,586
control
Disposal of subsidiaries - - - - - 554,200,042,135 554,200,042,135
Dividend declared to non-controlling interest - - - - - (1,948,473,636,171) (1,948,473,636,171)
Ending balance (Restated) 26,377,079,540,000 2,504,959,737,448 (2,974,924,074,484) 32,845,114,930 1,887,422,518,069 20,463,788,319,550 48,291,171,155,513
Current year
Beginning balance (Restated) 26,377,079,540,000 2,504,959,737,448 (2,974,924,074,484) 32,845,114,930 1,887,422,518,069 20,463,788,319,550 48,291,171,155,513
Net profit for the year - - - - 4,462,411,670,513 1,192,530,120,713 5,654,941,791,226
Shares of subsidiaries - - - - - 451,256,814,009 451,256,814,009
Distribution to other funds - - - 5,000,000,000 (5,000,000,000) - -
Capital contribution by non-controlling interest - - - - - 13,000,000,000 13,000,000,000
Acquisition of new subsidiaries - - - - - 136,022,934,541 136,022,934,541
Step-up acquisition of equity interest in existing subsidiaries - - - - (2,302,605,422,599) (3,433,171,727,903) (5,735,777,150,502)

Partial disposal of equity interest in existing subsidiaries without loss of
- 146,205,430,456 - - 1,540,855,798,135 3,724,413,229,508 5,411,474,458,099
control
Disposal of subsidiaries - - - - - (445,548,573,956) (445,548,573,956)
Dividend declared to non-controlling interest (*) - - - - - (1,219,531,251,275) (1,219,531,251,275)
Ending balance 26,377,079,540,000 2,651,165,167,904 (2,974,924,074,484) 37,845,114,930 5,583,084,564,118 20,882,759,865,187 52,557,010,177,655
According to the Resolution of the General Shareholders’ Meeting of Vincom Retail JSC dated 18 October 2017, the General
(*) During the year, Xavinco JSC, BFF LLC, Vinpearl JSC, Tan Lien Phat JSC and Vincom Retail JSC paid dividends to ordinary
Shareholders’ Meeting of this subsidiary has approved the refund of dividend paid to preference shareholders with total
and preference shareholders, in which, the total dividend paid to non-controlling shareholders was VND1,624 billion.
value of VND405 billion.
CHAPTER 6 CHAPTER 6
(i) Non-controlling interest as at 31 December 2017 Founders and a corporate counterparty’s obligations in 28.4 Ordinary shares and preference shares
include capital contribution of VND3,235 billion from relation to put options granted to Continental Pacific LLC.
Continental Pacific Investment LLC ("Continental Pacific
Besides that, in 2017, the General Shareholders’ Meeting Currency: VND
LLC") into Vinpearl JSC, a subsidiary, in accordance with
of Vincom Retail JSC approved:
the agreements signed between Vinpearl JSC and other
companies with Continental Pacific LLC on 8 December • Issuance of preference shares to Warburg Pincus and Ending balance Beginning balance
2016. Vinpearl JSC issued preference shares and ordinary Credit Suisse, when these shareholders exercised
shares to Continental Pacific LLC. Preference shares conversion option embedded to the convertible loan
Authorised shares 2,637,707,954 2,637,707,954
owned by Continental Pacific LLC are dividend preference with an amount of USD20 million;
shares, which are entitled to other privileges. Pursuant • Conversion of preference shares owned by these Issued shares 2,637,707,954 2,637,707,954
to the Mortgage Agreement between Royal City JSC and shareholders into ordinary shares of Vincom Retail
Vinpearl JSC, other subsidiaries, and Continental Pacific Ordinary shares 2,637,707,954 2,637,707,954
JSC at rate of 1:1 and the remaining preference shares
LLC on 12 December 2016 in relation to the issuance of were redeemed and canceled by this subsidiary; and Preference shares - -
preference shares of Vinpearl JSC 308,983,560 shares of
• Consequently, Warburg Pincus and Credit Suisse Shares in circulation 2,456,818,742 2,456,818,742
Vincom Retail JSC held by Royal City JSC and Vinpearl
did not own dividend preference shares, conversion
JSC are used as collaterals to guarantee Vinpearl JSC’s
option or any other privileges in Vincom Retail JSC. Ordinary shares 2,456,818,742 2,456,818,742
obligations under the transaction documents and for the
Preference shares - -
Treasury shares 180,889,212 180,889,212

28.2 Capital transactions with owners
Currency: VND Ordinary shares 180,889,212 180,889,212
Preference shares - -
Current year Previous year

The par value of outstanding share: VND10,000 per share (2016: VND10,000 per share).
Issued share capital
Beginning balance 26,377,079,540,000 18,681,880,870,000 28.5 Treasury shares

Increase - 716,667,640,000 As at 31 December 2017, the number of shares of the Company held by subsidiaries are as below:
• Vinpearl JSC, a subsidiary, holds 90,039,008 shares;

Stock dividend - 2,133,799,410,000
• Vincommerce JSC, a subsidiary, holds 78,976,963 shares;
Bonus shares - 4,844,731,620,000
• Xavinco JSC, a subsidiary, holds 11,873,241 shares.
Ending balance 26,377,079,540,000 26,377,079,540,000
As at 31 December 2017, no treasury shares of the Company are used as collaterals or to guarantee for any obligation of
the Company or other third parties.

28.3 Dividend
Currency: VND
Dividend declared and paid during the year - 2,133,799,410,000
Stock dividend per ordinary share in 2017: VND0

- 2,133,799,410,000
per share (2016: VND1,110 per share)

CHAPTER 6 CHAPTER 6
29. REVENUES
29.1 Revenue from sale of goods and rendering of services 29.2 Revenue and expense relating to investment properties
Currency: VND
Currency: VND
Income from leasing investment properties 4,409,827,940,217 3,321,913,007,632
Gross revenue Direct operating expenses of investment properties that generated

89,392,047,933,230 57,670,387,202,439 2,099,875,166,664 1,602,025,651,331
income during the year
In which: Direct operating expenses of investment properties that did not
- 15,640,100,716
generate income during the year
Sale of inventory properties 62,481,688,023,505 37,295,758,090,569

Leasing activities and rendering related services 4,409,827,940,217 3,321,913,007,632
Rendering of hotel services, amusement park services and related

services
5,465,505,193,438 4,256,597,378,984 29.3 Finance income
Currency: VND
Rendering of hospital services and related services 1,852,289,531,525 1,092,565,847,858
Previous year
Sale of goods in supermarkets, convenient stores and retail outlets 13,084,575,890,097 9,303,773,846,276 Current year
(Restated)
Rendering of education services and related services 1,012,609,580,119 712,567,649,695 Interest income from loans and deposits 1,098,222,853,695 1,190,500,694,694
Others 1,085,551,774,329 1,687,211,381,425 Gains from disposal of financial investments and disposal of subsidiaries 358,282,444,981 3,859,473,487,033
Less sales deduction (41,999,335,317) (56,043,536,545) Foreign exchange gains 28,549,762,106 232,870,285,809
Net revenue 89,350,048,597,913 57,614,343,665,894 Settlement discounts 25,018,731,362 6,215,778,522
In which: Dividend income 13,338,306,800 18,377,216,675
Sale of inventory properties 62,481,688,023,505 37,295,758,090,569 Gains on re-measurement of investments in business combination
1,043,093,955 1,449,179,506,378
achieved in stages
Leasing activities and rendering related services 4,409,827,940,217 3,321,913,007,632
Others 112,496,246,713 5,767,555,032
Rendering of hotel services, amusement park services and related
5,455,403,903,960 4,256,597,378,984
services TOTAL 1,636,951,439,612 6,762,384,524,143
Rendering of hospital services and related services 1,852,289,531,525 1,092,565,847,858
Sale of goods in supermarkets, convenient stores and retail outlets 13,052,677,844,258 9,247,730,309,731
Rendering of education services and related services 1,012,609,580,119 712,567,649,695
Others 1,085,551,774,329 1,687,211,381,425
In which:
Sale to others 88,797,537,496,929 57,053,841,854,201
Sale to related parties (Note 36) 552,511,100,984 560,501,811,693

CHAPTER 6 CHAPTER 6
30. COST OF GOODS SOLD AND SERVICES RENDERED 32. SELLING EXPENSES AND GENERAL AND ADMINISTRATIVE
EXPENSES
Current year Previous year Current year Previous year (Restated)
Inventory properties sold 38,570,808,538,584 22,707,240,650,972 Selling expenses
Leasing activities and rendering related services 2,099,875,166,664 1,617,665,752,047 - Labour costs 1,760,005,800,800 1,464,088,652,679
Rendering of hotel services, amusement park - Raw materials, tools and supplies 197,124,894,180 151,577,651,970
6,574,605,072,906 4,672,696,626,891
services and related services
- Depreciation and amortisation 632,102,514,317 511,786,167,997
Rendering of hospital services and related services 1,745,093,764,853 897,688,516,846
- External service expenses 5,344,099,598,901 4,134,457,194,645
Cost of goods sold in supermarkets, convenient
12,216,265,730,258 8,514,918,751,254 - Others 217,123,184,429 410,906,027,727
stores and retail outlets
8,150,455,992,627 6,672,815,695,018
Rendering of education services and related
807,590,341,752 546,422,771,456
services General and administrative expenses
Others 782,088,342,021 1,227,999,536,570 - Labour costs 1,658,786,632,069 1,517,028,703,068
TOTAL 62,796,326,957,038 40,184,632,606,036 - Depreciation and amortisation of fixed assets and

1,200,962,194,563 1,298,066,950,586
goodwill
- External service expenses 1,780,362,595,934 832,123,777,653
- Support and charity expenses 1,151,439,977,424 1,326,843,735,337

31. FINANCE EXPENSES
- Others 1,060,896,361,965 507,777,924,168
Currency: VND 6,852,447,761,955 5,481,841,090,812
TOTAL 15,002,903,754,582 12,154,656,785,830

Interest expenses (include amortisation of issuance

costs of convertible bonds and other bonds)
3,401,633,686,717 4,308,066,793,490 33. OTHER INCOME AND EXPENSES
Loss from re-measurement of fair value of an
- 805,779,509,476 Currency: VND
investment
Foreign exchange losses 77,396,775,528 167,939,028,065

Provision (reversed)/made for diminution in value of
(5,301,780,607) 60,231,560,196
investments Other income 434,964,045,806 688,479,678,357
Loss from disposal of investments 195,811,317,444 1,427,774,551 Transferring of right to develop a project - 450,000,000,000
Others 117,443,559,632 45,589,406,409 Disposal of fixed assets 82,295,849,636 11,796,442,562
TOTAL 3,786,983,558,714 5,389,034,072,187 Compensation income 235,903,502,779 143,710,158,776
Others 116,764,693,391 82,973,077,019
Other expenses 765,869,262,018 618,871,762,087
Disposal of fixed assets 385,473,705,459 224,910,588,639
Penalty paid 228,356,257,763 312,368,662,901
Others 152,039,298,796 81,592,510,547
NET OTHER (LOSS)/PROFIT (330,905,216,212) 69,607,916,270
CHAPTER 6 CHAPTER 6
34. PRODUCTION AND OPERATING COSTS Reconciliation between CIT expenses and the accounting profit multiplied by applicable CIT rate is presented below:
Current year Previous year (Restated) Current year Previous year
Raw materials 2,704,698,523,613 2,301,203,330,929 Accounting profit before tax 9,114,281,478,576 6,737,836,230,994
Development costs of inventory properties 37,686,355,794,661 43,139,203,044,646 At CIT rate applied to the Company 1,822,856,295,715 1,347,567,246,199
Labour costs 6,055,985,258,177 5,006,641,648,907 Effect of variable tax rates applied to subsidiaries (48,167,566,177) (18,322,899,619)
Depreciation and amortisation 3,985,433,267,539 3,342,836,031,423 Losses of subsidiaries 715,750,676,139 611,427,189,860
Expenses for external services 9,080,225,491,935 7,506,395,119,722 Allocation of the differences between consideration
and carrying value of net assets under acquisition of 47,546,879,625 58,954,221,404
Others (excluding finance expenses) 5,255,337,052,724 3,243,717,890,681
group of assets
TOTAL 64,768,035,388,649 64,539,997,066,308
Donations 226,062,067,181 245,641,012,215
Goodwill allocation in the consolidated financial

180,212,541,902 209,613,692,836
35. CORPORATE INCOME TAX statements
Impacts from equity transactions in the

(26,094,768,983) (326,571,845,091)
The current statutory corporate income tax (“CIT”) rate • Vinpearlland Nha Trang branch of Vinpearl JSC applies consolidated financial statements
applicable to the Company and its subsidiaries is 20%, the incentive tax rate of 10% for activities excluding
Adjustment for CIT incentives (23,876,399,414) (8,155,490,173)
except for the following entities: transferring inventory of properties activities.
Vinpearlland Phu Quoc branch applies the tax incentive Shared profit from associates (8,880,185,519) (3,964,717,748)
• Phu Quoc Tourism JSC applies the incentive tax rate of
rate of 10% for the first 15 years commencing from
10% for activities of rendering hotel, amusement park Dividend income (2,667,661,360) (3,675,443,335)
the first year in which revenue is generated, and CIT
and related services excluding transferring inventory
exemption for 4 years commencing from the first year Non-deductible provision expenses 79,009,251,644 -
of properties activities;
in which taxable profit is made, and 50% reduction of Others 58,167,350,616 33,197,257,623
• Vinmec JSC, Vinschool LLC (for rendering education CIT for the subsequent 9 years.
service), Hon Mot JSC, Hon Tre LLC, Cam Ranh LLC Tax losses carried forward (91,839,202,827) (221,028,790,676)
The tax returns filed the Company and its subsidiaries
and Vinfast LLC apply the incentive tax rate of 10%; Losses ineligible for offsetting against taxable
are subject to examination by the tax authorities. As the 531,260,408,808 355,009,640,377
• VinEco LLC, VinEco Tam Dao LLC, VinEco Dong Nai income
application of tax laws and regulations is susceptible to
LLC, VinEco Sagri LLC and Van Phat JSC apply the varying interpretations, the amounts reported in the Estimated CIT expense 3,459,339,687,350 2,279,691,073,872
incentive tax rate of 15% for agricultural activities; consolidated financial statements could be changed at a
later date upon final determination by the tax authorities.
35.2 Current tax
35.1 Corporate income tax The current CIT payable is based on taxable profit for the Group’s liability for current tax is calculated using tax rates
current year. The taxable profit of the Group for the year that have been enacted by the balance sheet date.
Currency: VND
differs from profit as reported in the consolidated income
Current year Previous year statement because it excludes items of income or expense
that are taxable or deductible in other years and it further
Current income tax expense 3,731,381,559,479 2,534,168,929,813 excludes items that are not taxable or deductible. The
Deferred tax income (272,041,872,129) (254,477,855,941)
TOTAL 3,459,339,687,350 2,279,691,073,872
CHAPTER 6 CHAPTER 6
35.3 Deferred tax 35.4 Unrecognised deferred tax
The following are the deferred tax assets and deferred tax liabilities recognised by the Group, and the movements thereon, Tax losses carried forward
during the current and previous year:
The Group are entitled to carry each individual tax loss forward to offset against taxable profits arising within five years
Currency: VND subsequent to the year in which the loss was incurred. At the balance sheet date. The Company had accumulated tax losses
of VND14,657 billion available for offset against future taxable profits. These are estimated accumulated tax losses as per
Consolidated balance sheet Consolidated income statement
the CIT declarations of Company and its subsidiaries which have not been finalised by the local tax authorities as of the date
of these consolidated financial statements. No deferred tax assets has been recognised in respect of these accumulated tax
Ending balance Opening balance Ending balance Opening balance
losses (VND14,657 billion) because future taxable profit cannot be ascertained at this stage.
Deferred tax assets 36. TRANSACTIONS WITH RELATED PARTIES

Unrealised profit from inter- Significant transactions with related parties during the year were as follows:
215,536,458,856 194,022,890,385 21,513,568,471 113,482,720,068
transactions within the Group Currency: VND
Selling expenses allowable for
38,401,679,447 66,586,444,793 (28,184,765,346) 33,071,116,494 Related parties Relationship Transactions Current year Previous year
capitalisation for tax purposes
Treasury shares held by Vietnam Investment Group Under common Payables due to revision of
31,835,173,424 31,835,173,424 - - - (432,848,844,386)
subsidiaries JSC owners land transfer agreement
Assets used as capital Repayment due to revision
31,956,609,277 30,874,229,236 1,082,380,041 (12,097,206,165) of land transfer agreement
contribution to subsidiaries - 404,235,038,561
after being offset with
Others 20,249,598,503 5,286,061,097 14,963,537,406 3,488,739,362 infrastructure using fee
Receivables from
14,306,902,913 28,613,805,825
infrastructure using fee
(8.559.812.842) (8.779.295.223) 219.482.380 3.765.666.322 Collection from
(14,306,902,913) -
infrastructure using fee
Deferred tax liabilities Payables for office rental
(68,616,761,389) (49,273,329,999)
and other services
Assets used as capital
(8,559,812,842) (8,779,295,223) 219,482,380 3,765,666,322 Payment for rental and other
contribution to subsidiaries 67,941,472,898 49,273,329,999
services
Deferred tax for bond issuance
- (2,568,532,800) 2,568,532,800 642,133,200
cost in subsidiaries
Vien Dong Pearl LLC Associate (until Repayment of loan principal
Revaluation of project - 424,700,000,000
20 June 2016)
development right of Hon Mot (8,029,215,258) (10,782,089,058) 2,752,873,800 2,728,672,232
project
Kind Heart Foundation Under common Charity expenses
Unearned revenue of Tri An – Tan (1,026,142,915,754) (1,024,460,000,000)
- - - 19,832,420,863 owners
Gia program
Cash transferred to Kind
Fair value adjustment from 1,497,025,000,000 670,000,000,000
(112,428,833,514) (333,223,610,138) 268,428,337,933 89,886,678,078 Heart Foundation
acquisition of subsidiaries Construction fee receivables
20,167,028,122 84,924,238,604
Others (13,762,014,430) (2,459,939,074) (11,302,075,356) (323,084,513)
Construction fee received
(19,165,607,752) (147,991,950,236)
Net deferred CIT liabilities 195,199,643,463 (29,208,667,358)
Receivables from rendering
360,290,551,174 -
Deferred tax charged to the hospital services
272,041,872,129 254,477,855,941
consolidated income statement Collection from rendering
(242,714,280,455) -
hospital services
Presented on the consolidated
Phu Quoc Tourism JSC Associate (from Cash contribution under
balance sheet
22 December business co-operation 700,000,000,000 -
Deferred tax assets 337,979,519,507 328,604,798,935 2016) contract
Payable for deductible
Deferred tax liabilities (142,779,876,044) (357,813,466,293) value-added tax collected (575,773,062,640) -
on behalf
Net deferred CIT liabilities 195,199,643,463 (29,208,667,358)
CHAPTER 6 CHAPTER 6
Amounts due to and due from related parties as at 31 December 2017 were as follows:
Related parties Relationship Transactions Current year Previous year Related parties Relationship Transactions Ending balance Beginning balance
Payment for deductible Short-term trade receivables (Note 7.1)

value-added tax collected 275,856,388,890 -
Kind Heart Under common owners Construction fee
on behalf 6,826,900,348 5,825,479,978
Foundation receivables
Dividend payable
(125,000,000,000) - Receivables from
Dividend paid rendering hospital 120,536,856,638 2,960,585,919
125,000,000,000 -
service
Receivables from rendering Receivables from
1,601,706,296 -
general contractor service providing goods
105,138,169,727 -
and supplying construction Vietnam Investment Under common owners Receivables from
6,078,140,608 -
material Group JSC providing goods
Collection from rendering Other individuals Key members of Receivables from sale of
- 2,533,193,598
general contractor service management villas
(105,138,169,727) -
and supplying construction 135,043,603,890 11,319,259,495
material
Advances to suppliers (Note 7.2)
Truong Thanh Furniture Associate (until
Collection of loan principal - (169,563,472,214)
Corporation 7 April 2017) Truong Thanh Associate (until 7 April Advance for wood supply
- 17,538,001,271
Lending - 82,485,000,000 Furniture Corporation 2017)
Kind Heart Under common owners Advance for charity
Interest receivables - (130,436,527,786) Foundation 92,448,663,563 -
Other related parties Other related parties Other advances

- 1,213,992,000
Other individuals Key members of Receivables from sales of
92,448,663,563 18,751,993,271
management villas and rendering related - 585,521,325,121
services Short-term loan receivables (Note 8)
Collection from sales of
Truong Thanh Associate (until 7 April Short-term loans
villas and rendering related - (161,546,505,153) - 1,367,725,527,787
Furniture Corporation 2017)
services
Allocation of deferred - 1,367,725,527,787
revenue from villa leasing 11,165,870,143 - Other receivables (Note 9)
management
Kind Heart Under common owners Charity expense
Committed profit payables (32,710,446,510) - - 1,066,579,317
Foundation receivables
Committed profit paid 18,842,144,441 - Truong Thanh Associate (until 7 April Interest receivables
- 8,284,768,374
Furniture Corporation 2017)
Terms and conditions of transactions with related parties: - 9,351,347,691
During the year, the Group sold/purchased goods and services to/from related parties based on the price offered to third Short-term trade payables (Note 21.1)
parties.
Vietnam Investment Under common owners Payables for providing
During the year, the Group has not made provision for doubtful debts relating to amounts due from related parties (31 Group JSC goods and rendering of 4,543,547,368 5,218,835,859
December 2016: nil). This assessment is undertaken each year through the examination of the financial position of the services
related parties and the market in which the related parties operate.
4,543,547,368 5,218,835,859
Advance from customers (Note 21.2)
CHAPTER 6 CHAPTER 6
Currency: VND
37. EARNINGS PER SHARE
Related parties Relationship Transactions Ending balance Beginning balance Basic earnings per share amounts are calculated by dividing dividend on the convertible preference shares) by the
net profit/(loss) after tax for the year attributable to ordinary weighted average number of ordinary shares outstanding
Kind Heart Under common owners Advances for hospital
- 2,394,046,903 shareholders of the Group by the weighted average number during the year plus the weighted average number of
Foundation services
of ordinary shares outstanding during the year. ordinary shares that would be issued on conversion of all
- 2,394,046,903 the dilutive potential ordinary shares into ordinary shares.
Diluted earnings per share amounts are calculated by
Short-term accrued expenses (Note 23)
dividing the net profit/(loss) after tax attributable to The following reflects the income and share data used in
Truong Thanh Associate (until 7 April Payables for construction ordinary shareholders of the Group (after adjusting for the basic and diluted earnings per share computations:
- 1,047,955,645
Furniture Corporation 2017) materials
Currency: VND
Kind Heart Under common owners Payables for committed
- 350,000,000,000
Foundation charity expenses Current year Previous year
Other individuals Key members of Committed profit
13,868,302,069 - Net profit after tax attributable to ordinary
management payable 4,462,411,670,513 3,384,588,126,613
shareholders
13,868,302,069 351,047,955,645
Net profit attributable to ordinary shareholders
Unearned revenue (Note 24) 4,462,411,670,513 3,384,588,126,613
adjusted for the effect of dilution
Weighted average number of ordinary shares
Other individuals Key members of Unearned revenue
70,705,898,141 81,871,768,284 (excluding treasury shares) for basic earnings per 2,456,818,742 2,456,818,742
management
share
70,705,898,141 81,871,768,284
Weighted average number of ordinary shares
Other short-term payables (Note 25.1) (excluding treasury shares) for basic earnings per 2,456,818,742 2,456,818,742
share
Phu Quoc Tourism Associate (from 22 Payables for business co-
- 700,000,000,000
JSC December 2016) operation contract Basic earnings per share 1,816 1,378
Payable for deductible
value-added tax 299,916,673,750 - Diluted earnings per share 1,816 1,378
collected on behalf
Other individuals Key members of Deposits for purchasing
management villas at some projects
- 1,407,079,230
38. COMMITMENTS AND CONTINGENCIES
Kind Heart Under common owners Other payables
- 4,005,807,992 Capital expenditure commitments relating to on-going billion as at 31 December 2017.
Foundation real estate projects
299,916,673,750 705,412,887,222 According to Decision No. 1730/QD-UBND issued by
Hanoi People’s Committee on 14 March 2017 approved
The Group has entered into a number of contracts
land unit price as basis for determination of land use fee
relating to the development of certain real estate
and land rental fee of Vinhomes Riverside – The Harmony
projects. The remaining commitment on these contracts
project and Land rental contract No. 242/HDTD-
Remuneration to members of the Board of Directors and the management of the Company: with an amount of approximately VND22,836 billion as at
STNMT-CCQLDD dated 4 May 2017 of Department of
Currency: VND 31 December 2017.
Natural Resources and Environment, the total land use
According to the Build-Transfer (“BT”) Contract No. fee and land rental fee paid in lump sum for the housing,
01/2016/HDBT dated 10 May 2016 between Thanh Hoa commercial building, and school areas which are payable
People’s Committee and the Company, the remaining by the Company with an amount of VND9,548 billion.
commitment on investment cost of the new administrative This amount might be offset against project clearance
Salaries and bonus 45,421,081,461 19,866,740,632 costs and investment costs relating to the BT contract of
centre project in Thanh Hoa city with an amount of
VND591 billion as at 31 December 2017. the overhead road project along the Ring Road 2 which is
TOTAL 45,421,081,461 19,866,740,632
subject to approval of relevant State authorities.
Commitments relating to land use fee
According to the Land use fee notice No. 2563/TB-CT
According to the Build-Transfer (“BT”) Contract No.
issued by Hai Phong Tax Department on 23 March 2017,
01/2016/HDBT dated 23 June 2016 between the
the total land use fee for Imperia Hai Phong project payable
Company and Hanoi Department of Transportation – the
by the Company with an amount of VND1,242 billion. This
authorised representative of Hanoi People’s Committee,
amount might be offset against project clearance costs.
the remaining commitment on investment relating to the
overhead road project along the Ring Road 2 from Vinh
Tuy bridge to Nga Tu So with an amount of VND4,537
CHAPTER 6 CHAPTER 6
Commitment under operating leases where the Group is a lessor the investor will be entitled to operate, manage, and (ii) 85% on the annual net leasing income from the sublease
transfer the project in the expected period of 30 years. of the villa to third parties.
The Group, as lessor, lets out office, retail and mixed use spaces under operating lease agreements. The future minimum
rental receivables under these agreements as at 31 December 2017 are as follows: Commitment related to business co-operation and Hanoi Southern JSC and Tan Lien Phat JSC also provided
Currency: VND leasing contracts of An Phong JSC (a former subsidiary, management and leasing services to customers who
which was merged into South Vincom Retail LLC on 3 purchased apartments in Park 12 Building of Vinhomes
Ending balance Beginning balance April 2017) Times City - Park Hill project and Landmark Plus building
of Vinhomes Central Park project. Accordingly, for the
Under the business co-operation contract and the lease
Less than 1 year 2,704,061,603,249 2,173,406,499,123 first 2 years commencing from the date in which these
contracts of a number of commercial centers between
apartments are handed over, customers are entitled to
South Vincom Retail LLC and corporate counterparties
From 1 to 5 years 5,322,504,911,686 4,182,661,576,564 receive a committed profit of 9.09% per annum (for Park
in Ho Chi Minh City and Dong Nai, South Vincom Retail
12 Building) and 10% per annum (for Landmark Plus
More than 5 years 5,208,872,721,592 3,328,399,202,222 LLC commits to transfer back the construction and fixed
Building) based on the contract value.
equipment attached to the existing structure to the lessors
TOTAL 13,235,439,236,527 9,684,467,277,909
or the counterparties without any additional conditions at Commitment related to the business co-operation contract
the end of the contract duration. for a potential real estate project in Hanoit
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 Commitment to transfer a certain part of Vincom Ba Trieu Under the business co-operation contract dated 23
City projects, the Group is entitled to the share of Thien Huong JSC’s revenue, which is equal to 15% of revenue and can Tower A&B November 2017 between Royal City JSC and a corporate
be adjusted according to the business co-operation contract. The duration of the business co-operation contract is from counterparty, Royal City JSC commits to contribute 100%
On 31 July 2006, the Company had transferred certain parts
February 2012 to the end of August 2043. investment capital in a potential real estate project. The
of the Vincom City Towers to a corporate counterparty.
total estimated investment capital is VND790 billion, the
Commitment under operating leases where the Group is a lessee According to the Transfer Agreement, the Group has
remaining commitment relating to this contract as at 31
committed to transfer the ownership of the following
The Group, as lessee, entered into certain operating lease agreements with the minimum lease commitments under these December 2017 is VND782.1 billion. The project will be
investment properties to this corporate counterparty on
agreements as at 31 December 2017 as follows: constructed within 2 years from the date when Royal
20 July 2052:
City JSC receives the land from the counterparty. Once
Currency: VND
• The ownership of half of the commercial area (from 1st the project is completed, Royal City JSC will be entitled to
floor to 6th floor of Vincom City Towers (the “towers”), operate and manage a part of the project
except for the reception and elevator waiting area of
Guarantee for payment obligation of bonds issued by Phu
160m2 on the 1st floor); and
Less than 1 year 647,834,849,856 513,275,413,859 Quoc Tourism JSC, an associate of the Group
• The ownership of half of the basement 1 and basement
From 1 to 5 years 1,985,016,686,139 1,629,402,985,098 Under the Bond Collateral Management Contract, the
2 of the towers.
Group is using a group of real estate projects and other
More than 5 years 5,744,585,973,599 5,387,453,710,610 Commitment under interest support agreements to buyers of projects where the Group is entitled to a substantial
apartments, villas at the Group’s projects portion of the related rights and interests as collaterals for
TOTAL 8,377,437,509,594 7,530,132,109,567
According to three-party (3) interest support agreements bonds issued by Phu Quoc Tourism JSC.
among the investors, buyers of the inventory properties
Other commitments One Member LLC dated 13 March 2015, the Company of the Group’s projects and certain banks, the investors
committed to raise 100% financing sources for the commit to support the buyers in getting loans to finance
Commitment related to the real estate project at 233 and
development of National Exhibition Center Project for a part of the selling price and to settle the interest in
223B Nguyen Trai, Thanh Xuan, Hanoi
following the approved master plan. The Company also committed period.
In accordance with the co-operation agreement dated commits to complete phase 1 of National Exhibition
Commitment related to program of management services and
20 April 2015 between Xavinco JSC and a corporate Center Project within 3 years since receiving of the project
villas rental
counterparty regarding the development of a real estate site except for delays due to objective conditions.
project, Xavinco JSC committed to provide loan to this The Group provided management and leasing services to
Commitment under Construction contract of Phu Quoc
counterparty to make capital contribution into Xalivico customers who bought villas at Vinpearl Phu Quoc Resort,
International Passenger Port, Kien Giang province, under BOT
JSC with an amount of VND130 billion. The remaining Vinpearl Phu Quoc Resort & Golf, Vinpearl Phu Quoc
mode
commitment of this agreement as at 31 December 2017 Ocean Resort & Villas and other projects of Vinpearl JSC.
is VND130 billion. According to Decision of Kien Giang Peoples Committee Accordingly, for the first 10 years from the date of villas
dated 3 April 2015 on approval of appointing investor for being handed over, customers are guaranteed by these
Commitment under the contract to purchase shares of VEFAC
Phu Quoc International Passenger Port project, Phu Quoc entities to receive a higher amount between:
JSC
Tourism JSC was appointed to be the investor under BOT
(i) 8% per annum to 10% per annum on the total price of
According to the Share Transfer Contract for strategic contract. The total suggested BOT capital assigned to the
the villa sale contract; and
investor signed between the Company and VEFAC investor is VND493 billion. After the project is completed,
CHAPTER 6 CHAPTER 6
39. SEGMENT INFORMATION

For the management purpose, the operating businesses • Leasing investment properties and related services: • Education and related services: including provision of The following tables present revenue and profit and
are organised and managed separately according to the including leasing of office and retail areas and rendering education and related services at Vinschool system of certain assets and liability information regarding the
nature of the products and services provided, and consist related services at investment properties owned by the Group; Group’s business segment as at 31 December 2017 and
of business segments as follows: the Group; for the year then ended:
• Retail services: including provision of retailing and
• Sales of inventory properties: including developing and • Hospitality, entertainment and related services: supermarket, convenience stores; fashion showrooms;
trading apartments and villas at real estate projects of including provision of hotel and related services at the and
the Group as well as other investment activities in real hotels and resorts owned by the Group;
• Others: including provision of brokerage services,
estate sector;
• Health care and related services: including provision of construction services, security services, technical
health care and related services at Vinmec International services, logistics services, agriculture and other
General Hospitals; services.
Currency: VND
Leasing investment Hospitality,

Sale of inventory Health care and related Adjustment and
properties and related entertainment and other Education and related services Retail services Others Total
properties services elimination
services services
Net revenue
Net sale to external

62,481,688,023,505 4,409,827,940,217 5,455,403,903,960 1,852,289,531,525 1,012,609,580,119 13,052,677,844,258 1,085,551,774,329 - 89,350,048,597,913
customers
Net inter-segment sales (1) 548,764,247,918 1,474,537,360,971 1,054,724,896,494 31,659,327,222 - 1,359,624,437,507 8,172,751,670,233 (12,642,061,940,345) -
Net total revenue 63,030,452,271,423 5,884,365,301,188 6,510,128,800,454 1,883,948,858,747 1,012,609,580,119 14,412,302,281,765 9,258,303,444,562 (12,642,061,940,345) 89,350,048,597,913
Results
Depreciation and
757,697,321,420 927,956,243,923 943,853,653,447 390,765,326,657 40,922,158,020 816,842,728,653 107,395,835,419 - 3,985,433,267,539
amortisation
Share in profit/(loss) of
- - (9,037,187,612) - - 134,159,176 53,303,956,033 - 44,400,927,597
associates
Segment profit/(loss) (2) 17,360,186,831,131 1,884,015,664,620 (2,356,206,611,953) (740,379,184,766) 69,207,829,362 (3,900,615,862,572) (451,869,945,614) (2,750,057,241,632) 9,114,281,478,576
Assets
Investment in associates - - 2,387,075,724,427 - - 47,788,263,901 4,760,612,467 - 2,439,624,600,795
Capital expenditure 3,476,763,918,001 787,855,737,487 7,345,785,735,189 2,368,688,105,376 1,650,700,502,711 404,446,859,528 1,945,317,874,370 - 17,979,558,732,662
Total assets (3) 106,130,151,659,516 32,629,148,834,227 27,005,847,457,774 7,529,049,834,746 2,114,086,629,622 11,331,605,250,245 6,996,140,718,698 20,056,026,599,769 213,792,056,984,597
Total liabilities (4) 86,286,947,713,141 1,479,287,907,326 9,286,962,365,169 746,880,093,451 705,415,779,608 2,608,907,630,168 1,427,920,909,110 58,692,724,408,969 161,235,046,806,942
CHAPTER 6 CHAPTER 6
1. Net inter-segment sales are eliminated in consolidated financial statements.

4. Segment liabilities do not include the following items because these liabilities are managed on a group basis:
2. Segment profit does not include:
Finance income 1.636.951.439.612 Statutory obligations 4,933,105,236,661
Finance expenses (3.786.983.558.714) Accrued interest expenses 2,122,242,028,100
Other income 434.964.045.806 Deposits received from transferred investments 1,834,186,640,000
Other expenses (765.869.262.018) Payable for deductible value-added tax collected on behalf 299,916,673,750
Provision for loan principal and interest receivables (269.119.906.318) Short-term loans and debts 18,140,968,057,370
Total (2.750.057.241.632) Long-term loans and debts 31,219,525,897,044
Eliminate: Deferred tax liabilities 142,779,876,044

-
Inter-segment income
Total 58,692,724,408,969
Total (2,750,057,241,632)
3. Segment assets do not include the following items because these assets are managed on a group basis:
Currency: VND
Short-term investments 672,569,770,071
Receivables from disposal of investments 1,118,410,842,439
Short-term loan receivables 7,684,239,828,536
Interest income from bank deposits, deposits and loans to others 974,465,191,355
Provision for doubtful loan receivables (127,240,478,176)
Provision for doubtful loan interest receivables (54,570,437,734)
Prepaid interest expenses 4,968,379,121
Deposits for transferred investments 818,750,000,000
Prepaid corporate income tax 558,615,647,813
Value-added tax deductible 1,099,347,699,941
Tax and other receivables from the State 213,678,380,799
Long-term loan receivables 269,026,341,080
Long-term investments 6,485,785,915,017
Deferred tax assets 337,979,519,507
Total 20,056,026,599,769
CHAPTER 6 CHAPTER 6
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:
Currency: VND
Leasing investment Hospitality,

Sale of inventory Health care and related Retail services Adjustment and
properties and related entertainment and Education and related services Others (Restated) Total
properties (Restated) services (Restated) elimination (Restated)
services (Restated) other services
Net revenue
Net sales to external

37,295,758,090,569 3,321,913,007,632 4,256,597,378,984 1,092,565,847,858 712,567,649,695 9,247,730,309,731 1,687,211,381,425 - 57,614,343,665,894
customers
Net inter-segment sales (1) - 1,150,989,558,564 426,286,861,150 19,522,698,400 5,243,000,000 600,795,646,918 8,525,309,007,477 (10,728,146,772,509) -
Net total revenue 37,295,758,090,569 4,472,902,566,196 4,682,884,240,134 1,112,088,546,258 717,810,649,695 9,848,525,956,649 10,212,520,388,902 (10,728,146,772,509) 57,614,343,665,894
Results
Depreciation and
897,218,500,471 635,630,276,769 644,046,977,703 255,036,932,501 16,240,740,587 759,827,039,410 134,835,563,982 - 3,342,836,031,423
amortisation
Share in profit/(loss) of
33,852,809,888 - 809,055,877 - - (11,599,836,920) (3,238,440,105) - 19,823,588,740
associates
Segment profit/(loss) (2)

9,290,431,811,947 1,337,099,591,134 (1,171,805,017,110) (339,541,079,682) 85,141,105,816 (3,643,498,811,896) (327,010,158,834) 1,507,018,789,619 6,737,836,230,994
(Restated)
Assets
Investments in associates - - 572,402,043,444 - - 49,128,329,753 1,108,753,102,823 - 1,730,283,476,020
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 assets (3) 99,991,786,220,683 34,999,272,075,263 17,710,593,265,940 4,049,820,830,101 473,858,284,579 11,946,790,125,420 3,801,190,544,771 10,502,314,597,967 183,475,625,944,724
Total liabilities (4) 70,102,442,562,452 1,515,057,108,910 9,423,202,768,667 371,318,300,784 438,722,898,217 2,800,853,242,765 1,458,757,307,076 49,074,100,600,340 135,184,454,789,211
CHAPTER 6 CHAPTER 6
1. Net inter-segment sales are eliminated in consolidated financial statements.

4. Segment liabilities do not include the following items because these liabilities are managed on a group basis:
2. Segment profit does not include:
Finance income 6,762,384,524,143 Statutory obligations 7,366,546,933,741
Finance expenses (5,389,034,072,187) Accrued interest expenses 1,205,242,481,968
Other income 688,479,678,357 Dividend payables 385,018,955,101
Other expenses (618,871,762,087) Short-term loans and debts 5,590,652,159,634
Reversal of provision for loan principal and interest receivables 64,060,421,393 Long-term loans and debts 34,168,826,603,603
Total 1,507,018,789,619 Deferred tax liabilities 357,813,466,293
Eliminate: Total 49,074,100,600,340
Inter-segment income (Restated) -
Total 1,507,018,789,619 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 or loss and determined
consistently with profit or loss of the Group in the consolidated financial statements. However, financial activities of the
3. Segment assets do not include the following items because these assets are managed on a group basis: 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
Currency: VND
transfers are eliminated in the preparation of the consolidated financial statements
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 deposit, 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 3,360,331,864,355
Deferred tax assets 328,604,798,935
Total 10,502,314,597,967
CHAPTER 6 CHAPTER 6
40. DETAILS OF CASH FLOW STATEMENT
Current year Previous year (Restated) Current year Previous year (Restated)
Significant non-cash transactions that will have impact on the cash flow statement in the future: Code 25. Payments for investments in other entities
Increasing owner’s equity from conversion of Acquisition of new subsidiaries (after deducting
451,256,814,009 2,202,521,952,538 (1,771,690,659,848) (1,691,523,942,666)
convertible loans and bonds (Note 28.1) cash balance of subsidiaries at acquisition date)
Stock dividend declared (Note 28.1) - 2,133,799,410,000 Acquisition of additional shares in existing
(3,235,777,150,500) -
subsidiaries
Increasing owner’s equity from bonus shares (Note
- 4,844,731,620,000
28.1) Advance/deposit to acquire subsidiaries (818,750,000,000) (7,664,761,129,950)
Offset obligations between operating activities and Payments for investments in other entities (2,620,086,640,000) (13,034,330,192,800)
- 263,140,083,992
investing activities
Advance for business co-operation contracts (6,706,900,000,000) (68,729,803,430)
Offset obligations between financing activities and
1,124,000,000,000 130,937,638,643 Total (15,153,204,450,348) (22,459,345,068,846)
investing activities
Code 26. Proceeds from sales of investments in other entitiest
Code 02. Depreciation of fixed assets and investment properties and amortisation of intangible assets (including
amortisation of goodwill) Proceeds from disposal of subsidiaries, after
deducting cash balance of subsidiaries at 278,846,434,916 11,207,105,907,932
Depreciation and amortisation 3,084,370,558,027 2,281,457,070,129
acquisition date
Goodwill amortisation (Note 20) 901,062,709,512 1,030,100,773,433
Proceeds from disposal of subsidiaries without
5,665,350,860,000 -
Gains from bargain purchase - - losing control
Total 3,985,433,267,539 3,311,557,843,562 Proceeds from disposal of investment in others
1,857,457,647,400 1,951,923,727,844
entities
Code 05. Profits from investing activities
Collection of deposits to acquire shares 2,200,000,000,000 801,817,800,000
Loss on disposal of fixed assets (Note 33) 303,177,855,823 213,114,146,077
Proceeds from of deposits to transfer investment in
Gain on disposal of investments in other entities (162,471,127,537) (4,951,445,709,388) 756,862,000,000 -
subsidiaries
Share of profit of associates (Note 19.1.1) (44,400,927,597) (19,823,588,740)
Deposits from investment in real estate projects - -
Interest and dividend income (Note 29.3) (1,111,561,160,495) (1,208,877,911,369)
Proceeds from transferring right to develop a
72,200,000,000 450,000,000,000
Total (1,015,255,359,806) (5,967,033,063,420) project
Code 23. Loans to other entities and payments for purchase of debt instruments of other entities Collection of deposits for investing in real estate
3,160,385,766,272 896,119,007,571
projects
Disbursement of loans (9,470,662,000,000) (3,128,785,916,909)
Total 13,991,102,708,588 15,306,966,443,347
Term deposits (3,649,981,139,535) (303,301,551,618)
Code 31. Capital contribution and issuance of shares
Total (13,120,643,139,535) (3,432,087,468,527)
Capital contributions from non-controlling
Code 24. Collection from borrowers and proceeds from sale of debt instruments of other entities 13,000,000,000 1,310,346,390,000
shareholders
Collection of loans 4,209,098,001,435 12,257,780,740,761
Total 13,000,000,000 1,310,346,390,000
Collection of term deposits 1,661,949,531,594 10,623,112,464,035
Code 36. Dividends, profit paid to equity holders
Total 5,871,047,533,029 22,880,893,204,796
Dividend, profits paid to non-controlling
(1,604,550,206,376) (1,339,903,941,515)
shareholders
Total (1,604,550,206,376) (1,339,903,941,515)
CHAPTER 6 CHAPTER 6
41. RESTATEMENT OF CORRESPONDING FIRGURES In January 2018, Tan Lien Phat JSC, a subsidiary, deposited In February 2018, Vinhomes JSC completed the acquisition
another VND3,500 billion to a corporate counterparty for of 97.9% voting shares of Berjaya Vietnam International
Restatements to certain corresponding figures on the consolidated financial statements due to finalisations of provisional the purpose of developing a potential real estate project. University Town LLC from counterparties with total
accounting applied in business combination transactions in previous year and other restatements are as follows: consideration of VND11,748 billion. Thereby, Berjaya
In January 2018, Vinfast LLC, a subsidiary, entered into
Vietnam International University Town LLC became a
Currency: VND a share transfer agreement with an individual to transfer
subsidiary of the Company.
6,060,000 shares, corresponding to 50.5% charter capital
31 December 16 31 December 16 of Vinfast Escooter JSC to this individual. The transaction In February 2018, Vinhomes JSC signed share transfer
Code Items Restatement
(Previously presented) (Restated) was completed in February 2018; thereby, Vinfast agreements with condition precedents to acquire 96.5%
Escooter JSC ceased to be a subsidiary of the Group. voting shares of Thai Son Investment and Construction
CONSOLIDATED BALANCE SHEET JSC with total consideration of VND1,700 billion and
141 Inventories (2) 49,879,776,253,837 5,392,439,576,588 55,272,215,830,425
In February 2018, after the legal merger between Tan Lien
100% capital contribution in Lotus Hotel LLC with total
Phat JSC and Vinhomes Management JSC, Hanoi Southern
227 Intangible fixed assets (1) 811,909,201,738 2,180,454,112 814,089,655,850 consideration of VND1,875 billion.
JSC (subsequently changed its name to Vinhomes Joint
228 Cost (1) 1,171,451,553,652 2,180,454,112 1,173,632,007,764
Stock Company ("Vinhomes JSC")) received the 18th In February 2018, the Group acquired additional 20%
242 Construction in progress (2) 33,991,567,265,462 237,860,319,916 34,229,427,585,378 amended Business Registration Certificate issued by voting shares in Vietnam Investment JSC from a corporate
252 Investments in associates (1) 1,728,809,250,992 1,474,225,028 1,730,283,476,020 Hanoi Department of Planning and Investment which counterparty with total consideration of VND115.8 billion.
253 Investments in other entities (1) 1,604,928,401,863 11,312,886,668 1,616,241,288,531 approved the increase in Vinhomes JSC’s charter capital
In February 2018, the Group acquired 100% capital
269 Goodwill (1),(2) 8,240,254,012,956 (2,620,491,211,382) 5,619,762,801,574 to VND28,365 billion. On 5 February 2018, the General
contribution in Phat Loc Investment Trading LLC from
Shareholders’ Meeting of Vinhomes JSC approved the
421b Undistributed earnings of current year (2) 540,045,391,288 945,077,264,616 1,485,122,655,904 a counterparty with total consideration of VND406.5
Resolution No. 02/2018/NQ/DHDCD-VINHOMES JSC
billion. Thereby, Phat Loc Investment Trading LLC became
429 Non-controlling interests (1),(2) 18,384,089,333,236 2,079,698,986,314 20,463,788,319,550 on demerging the Company into Vinhomes JSC and Hanoi
a subsidiary of the Company.
CONSOLIDATED INCOME STATEMENT Southern City Development Limited Liability Company.
Accordingly, the issued share capital of Vinhomes JSC In February 2018, Vinhomes JSC signed a project transfer
21 Finance income (2) 5,861,556,630,724 900,827,893,419 6,762,384,524,143
decreased by VND1,569 billion. Subsequently, on agreement relating to Cu Chi Golf project to a corporate
26 General and administrative expenses (2) (5,526,090,462,009) 44,249,371,197 (5,481,841,090,812) 12 February 2018, Vinhomes JSC received the 20th counterparty with total consideration of VND1,760 billion.
amended Business Registration Certificate issued by This agreement will be completed once all condition
CONSOLIDATED CASH FLOW STATEMENT
Hanoi Department of Planning and Investment which precedents are satisfied as stipulated in this contract.
01 Profit before tax (2) 5,792,758,966,378 945,077,264,616 6,737,836,230,994
approved the decrease in Vinhomes JSC’s charter capital In March 2018, Vinhomes JSC contributed additional
Depreciation of fixed assets to VND26,796 billion. capital with an amount of VND2,008.7 billion equivalent
and investment properties and In February 2018, the Company acquired 3% voting shares to 67.5% voting right in Vietnam Financial Centre Berjaya
02 (2) 3,355,807,214,759 (44,249,371,197) 3,311,557,843,562
amortisation of intangible assets of Vinfa JSC and contributed additional VND443 billion LLC. Thereby, Vietnam Financial Centre Berjaya LLC
(including amortisation of goodwill) (equivalent to 96.4% charter capital) in this company. became a subsidiary of the Company.
Thereby, Vinfa JSC became a subsidiary of the Company. On 23 March 2018, the Board of Directors of the Company
05 Profits from investing activities (2) (5,066,205,170,001) (900,827,893,419) (5,967,033,063,420)
On 3 February 2018, the General Shareholders’ Meeting approved the Resolution No. 11/2018/QD-HDQT-
(1) Finalisation of provisional accounting for acquisition of Savina JSC as disclosed in Note 4.3. of Vinpearl JSC, a subsidiary, approved the Resolution No. VINGROUP on demerging Vinpro Trading and Service JSC
01/2018/NQ-DHDCD-VINPEARL JSC on demerging the with charter capital of VND500 billion from Vincommerce
(2) Finalisation of provisional accounting for acquisition of Vicentra JSC as disclosed in Note 4.3. Company into Vinpearl Lang Van JSC with charter capital JSC.
of VND100 billion and Vinpearl Quy Nhon JSC with There is no other matter or circumstance that has arisen
42. EVENTS AFTER THE BALANCE SHEET DATE charter capital of VND200 billion. since the balance sheet date that requires adjustment or
In February 2018, Vinfast LLC received a loan of disclosure in the consolidated financial statements of the
Except for the events after the balance sheet date as capital of Viet Thang Feed Joint Stock Company with total USD150,000,000 from Credit Suisse AG – Singapore Group
presented in other notes of the consolidated financial consideration of VND418 billion. On 1 March 2018, VinEco Branch. This loan has term of 6 months, bearing floating
statements, the Group also has following events after the LLC completed the acquisition of 25,087,664 shares (the interest rate and secured by shares of a subsidiary of the
balance sheet date: 1st batch of shares transferred) in this company. Company.
In January 2018, the Company received the remaining On 18 January 2018, the General Shareholders’ Meeting
amount of VND1,400 billion from the issuance of two of Hanoi Southern JSC, a subsidiary, approved the
bonds with total par value of VND2,000 billion which Resolution No. 01/2018/NQ/DHDCD-HANOI CITY JSC
mature in 2019. on (i) the private share offering to several investors; (ii) the
declaration of stock dividend to existing shareholders at
In January 2018, VinDS LLC, a subsidiary, was merged into
the ratio of 1,000:2,000 (accordingly, each shareholder
Vincommerce JSC, another subsidiary of the Group, and
owning 1,000 shares will be entitled to 2,000 additional
VinDS LLC ceased to exist.
shares), and (iii) the merger of Tan Lien Phat JSC and Van Thi Hai Ha Nguyen Thi Thu Hien Nguyen Viet Quang
In January 2018, VinEco LLC, a subsidiary, entered into a Vinhomes Trading and Real Estate Management JSC Preparer Chief Accountant Chief Executive Officer
share transfer agreement with a corporate counter party to (“Vinhomes Management JSC”) into Hanoi Southern JSC
acquire 41,812,774 shares, corresponding to 40% charter in order to increase its charter capital. 10 April 2018
CHAPTER 6 CHAPTER 6
APPENDIX 1 – LIST OF SUBSIDIARIES AS AT

31 DECEMBER 2017
Equity Equity
Voting Voting
No. FULL NAME Short name interest Registered office’s address Principal activities No. FULL NAME Short name interest Registered office’s address Principal activities
right (%) right (%)
(%) (%)
Investing, developing Investing,

233 Nguyen Trai street,
Vincom Retail and trading real estate developing and
1 Vincom Retail JSC 58.87 56.84 Vinhomes Riverside (1) 12 Xalivico LLC Xalivico LLC 74.00 71.33 Thuong Dinh ward, Thanh
JSC properties and leasing trading real estate
Xuan district, Hanoi
real estate properties properties
Investing, Investing,
No.148 Giang Vo street,
No.72, Le Thanh Ton street developing and Vietnam Exhibition Fair developing and
13 VEFAC JSC 83.32 83.32 Giang Vo ward, Ba Dinh
South Vincom Retail South Vincom and No. 45A Ly Tu Trong trading real estate Center JSC trading real estate
2 100.00 56.84 district, Hanoi
LLC Retail LLC street, Ben Nghe ward, properties and properties
district 1, Ho Chi Minh city leasing real estate Investing,
Southern Star Urban No.72, Le Thanh Ton street,
properties Southern Star developing and
14 Development and 100.00 99.99 Ben Nghe ward, district 1,
Investing, JSC trading real estate
Trading Investment JSC Ho Chi Minh city
developing and properties
No.72A, Nguyen Trai street,
North Vincom Retail North Vincom trading real estate Investing,
3 100.00 56.84 Thuong Dinh ward, Thanh Metri Sport and No.7 Thang Long avenue,
LLC Retail LLC properties and developing and
Xuan district, Hanoi 15 Entertainment Metri JSC 100.00 98.86 MeTri ward, Nam Tu Liem
leasing real estate trading real estate
Development JSC district, Hanoi
properties properties
Investing, Investing,
Suoi Hoa Urban Km1 + 200, Tran Hung Dao HH land area, Pham Hung
developing and Metropolis developing and
4 Development and Suoi Hoa JSC 97.83 55.61 street, Suoi Hoa ward, Bac 16 Metropolis Hanoi LLC 100.00 59.86 street, Nam Tu Lien district,
trading real estate Hanoi LLC trading real estate
Investment JSC Ninh city, Bac Ninh province Hanoi
properties properties
Times Trading No.72, Le Thanh Ton street No.44, Trang Tien street,
17 Viet Nam Books JSC Savina JSC 65.33 65.33 Trading books
Investment and Times Trading and No.45A Ly Tu Trong Leasing real estate Hoan Kiem district, Hanoi
5 100.00 100.00
Development One LLC street, Ben Nghe ward, properties Investing,
No.72 Le Thanh Ton, Ben
Member LLC district 1, Ho Chi Minh city Can Gio Tourist City developing and
18 Can Gio JSC 99.05 94.09 Nghe ward, district 1, Ho
Vincom Corporation trading real estate
Vincom Construction Residential and civil Chi Minh city
6 Construction 100.00 100.00 Vinhomes Riverside (1) properties
Management LLC constructions
LLC Investing,
Thanh Pho Ho Chi No.72 Le Thanh Ton, Ben
Architecture developing and
Royal City Real Estate No.72A, Nguyen Trai street, 19 Minh Investment Vicentra JSC 100.00 99.99 Nghe ward, district 1, Ho
activities and trading real estate
7 Development & Royal City JSC 97.85 95.45 Thuong Dinh ward, Thanh Service Trading JSC Chi Minh city
technical properties
Investment JSC Xuan district, Hanoi
consultancy Room 900, 9th floor, IPH Investing,
Investing, Central Park Central Park Tower, 241 Xuan Thuy developing and
No.458 Minh Khai street, 20 100.00 94.00
Hanoi Southern City Hanoi developing and Development LLC LLC street, Dich Vong Hau ward, trading real estate
8 98.90 98.90 Vinh Tuy ward, Hai Ba Trung
Development JSC Southern JSC trading real estate Cau Giay district, Hanoi properties
district, Hanoi
properties Investing,
No.191, Ba Trieu street,
Investing, Ecology Development developing and
Saidong Urban 21 Ecology JSC 100.00 98.83 Le Dai Hanh ward, Hai Ba
developing and and Investment JSC trading real estate
9 Development and Sai Dong JSC 94.00 94.00 Vinhomes Riverside (1) Trung district, Hanoi
trading real estate properties
Investment JSC
properties Investing,
Gia Lam Urban
No.191, Ba Trieu street, Le Investing, developing developing and
22 Development and Gia Lam LLC 85.00 84.00 Vinhomes Riverside (1)
10 Xavinco Land JSC Xavinco JSC 96.44 96.39 Dai Hanh ward, Hai Ba Trung and trading real estate trading real estate
Investment LLC
district, Hanoi properties properties
Tan Lien Phat Investing, Investing,
No.72, Le Thanh Ton street, No.63 Hang Ga street, Hang
Construction Tan Lien Phat developing and Phu Gia Property developing and
11 95.00 95.00 Ben Nghe ward, district 1, 23 Phu Gia LLC 98.00 96.85 Bo ward, Hoan Kiem district,
Investment JSC trading real estate Trading LLC trading real estate
Ho Chi Minh city Hanoi
Corporation JSC properties properties
CHAPTER 6 CHAPTER 6
Equity Equity
Voting Voting
No. FULL NAME Short name interest Registered office’s address Principal activities No. FULL NAME Short name interest Registered office’s address Principal activities
right (%) right (%)
(%) (%)
Investing, Vinschool One Rendering education

Vietnam Investment Vietnam No.191, Ba Trieu street, 38 Vinschool LLC 100.00 100.00 Vinhomes Riverside (1)
developing and Member LLC services
24 and Consulting Investment 50.00 49.41 Le Dai Hanh ward, Hai Ba
trading real estate VinAcademy Education VinAcademy Rendering education
Investment JSC JSC Trung district, Hanoi 39 100.00 99.93 Vinhomes Riverside (1)
properties and Training LLC LLC services
Investing, Vincom Security Vincom Rendering security
Thang Long No.13 Hai Ba Trung, Trang 40 100.00 100.00 Vinhomes Riverside (1)
Thang Long Real Estate developing and Service LLC Security LLC services
25 Real Estate 63.00 63.00 Tien ward, Hoan Kiem
Trading Investment JSC trading real estate VinEco Agricultural
JSC district, Hanoi Producing and
properties Investment
41 VinEco LLC 100.00 95.80 Vinhomes Riverside (1) trading agricultural
Floor 1, Hall A, E3 Building, Investing, Development and
Phuc Dong Housing produces
Phuc Dong Ecohome1, Dong Ngac developing and Production LLC
26 Development Joint 98.00 98.00
JSC ward, Bac Tu Liem district, trading real estate VinEco - Tam Dao
Stock Company Co Quan commune, Gia Producing and
Hanoi properties Agricultural Investment VinEco Tam
42 89.02 85.29 Khanh town, Binh Xuyen trading agricultural
Investing, Development and Dao LLC
Yen Nhan Village, Tien district, Vinh Phuc province produces
Prime Land Real Estate Prime Land developing and production LLC
27 100.00 98.45 Phong commune, Me Linh
Development JSC JSC trading real estate Km13, Highway 51, Long
district, Hanoi Producing and
properties Dong Nai - VinEco Dong Nai – Khanh 3 hamlet, Tam Phuoc
43 77.50 74.25 trading agricultural
Investing, Agriculture LLC VinEco LLC commune, Bien Hoa city,
Hon Tre island, Vinh Nguyen produces
developing and Dong Nai province
28 Vinpearl JSC Vinpearl JSC 100.00 99.64 ward, Nha Trang city, Khanh
trading hospitality No.38 Pham Van Coi, Pham Producing and
Hoa province VINECO SAGRI VINECO
services 44 64.00 61.31 Van Coi commune, Cu Chi trading agricultural
Agriculture LLC SAGRI LLC
Investing, district, Ho Chi Minh city produces
No.72, Le Thanh Ton street,
Tay Tang Long Real Tay Tang Long developing and Providing
29 90.00 89.46 Ben Nghe ward, district 1,
Estate LLC LLC trading real estate information
Ho Chi Minh city
properties technology,
Vincom General Vincom
Investing, 45 100.00 99.93 Vinhomes Riverside (1) technology,
No.16 Mac Dinh Chi street, Service Trading LLC Service LLC
Cam Ranh Investment developing and sanitation,
30 Cam Ranh LLC 90.00 89.68 Phuoc Tien ward, Nha Trang
LLC trading hospitality environmental
city, Khanh Hoa province
services landscape, logistic.
Investing, Dung K'Si Hamlet, Da Chais Wholesale of solid,
Hon Tre island, Vinh Nguyen Van Phat Tourist and
developing and 46 Van Phat JSC 90.00 86.22 commune, Lac Duong liquid, gas and
31 Hon Mot Tourism JSC Hon Mot JSC 83.63 83.33 ward, Nha Trang city, Khanh Seafood JSC
trading hospitality district, Lam Dong province related produces
Hoa province
services VINFAST producing Producing of motor
47 Vinfast LLC 100.00 100.00 Vinhomes Riverside (1)
Investing, and trading LLC vehicle
No.42/2 Dong Nai, Phuoc
Hon Tre Investment developing and VINFAST ESCOOTER
32 Hon Tre LLC 90.00 89.68 Hai ward, Nha Trang city, Vinfast Producing of motor
and Development LLC trading hospitality 48 producing and trading 70.00 70.00 Vinhomes Riverside (1)
Khanh Hoa province Escooter LLC vehicle
services LLC
No.5 Tran Phu, Vinh Nguyen
Nha Trang Port Joint Nha Trang Port Loading goods,
33 85.55 85.24 ward, Nha Trang city, Khanh (1) Full registered office address: No.7, Bang Lang 1 street, Vinhomes Riverside Eco-urban area, Viet Hung ward, Long Bien
Stock Company JSC leasing warehouse
Hoa province
district, Hanoi.
Investing,
Co.Co No.14 Thuy Khue street,
Co.Co International developing and
34 International 69.99 69.74 Thuy Khue ward, Tay Ho
Co., Ltd trading real estate
Ltd district, Hanoi
properties
Vincommerce General No.72, Le Thanh Ton street,
Vincommerce Retails in
35 Commerce Services 61.12 59.86 Ben Nghe ward, district 1,
JSC department stores
JSC Ho Chi Minh city
VinDS Trading and Retails in
36 VinDS LLC 100.00 98.91 Vinhomes Riverside (1)
Services LLC department stores
No.458, Minh Khai street,
Vinmec International Healthcare, medical
37 Vinmec JSC 100.00 100.00 Vinh Tuy ward, Hai Ba Trung
General Hospital JSC and related services
district, Hanoi

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TABLE OF CONTENT

Appendix 1 – The Group 206

VINGROUP “Vingroup is a premier corporate group but

Vision, mission, core 08

Message from the 16

2013 – 2017 Financial 18

VINHOMES CENTRAL PARK

VISION, CORE VALUES

MISSION is what enables the Company to deliver on its HUMANITY

Shareholders and Business Partners

VND VND VND

1. VINFAST AUTOMOBILE AND 3. VINHOMES LAUNCHES

2.1 4.3 475,000 4. VINPEARL INCREASED ITS HOTEL

8. VINGROUP CREDIT RATING 9. COOPERATION WITH A

multi-business corporation after having previously viewed cities and provinces.

6. VINSCHOOL MEETS HIGHEST 7. INTERNATIONAL AND

12 ANNUAL REPORT 2017 - VINGROUP VINGROUP - ANNUAL REPORT 2017 13

2017 TITLES AND AWARDS

14 ANNUAL REPORT 2017 - VINGROUP VINGROUP - ANNUAL REPORT 2017 15

2013 ‒ 2017 FINANCIAL AND

OPERATIONAL HIGHLIGHTS VINMART

NET REVENUE VINCOM SHOPPING MALL NETWORK KEY LOCATIONS

18 ANNUAL REPORT 2017 - VINGROUP VINGROUP - ANNUAL REPORT 2017 19

VINHOMES THE HARMONY

Company Name: Vingroup Joint Stock Company (“Vingroup” or “The

ABOUT Long Bien District

In all of its established business segments, Vingroup is a proven market leader

SOCIAL Vinmec – International hospitals

2002 2004 2007 2009 2011 2013 2015 2017

24 ANNUAL REPORT 2017 - VINGROUP VINGROUP - ANNUAL REPORT 2017 25

MID-RANGE AND AFFORDABLE

Vingroup introduced the VinCity brand in 2017 to serve

14,000 Vinhomes is the leading real estate brand in Vietnam.

Ho Chi Minh City

facilities, Vincom Retail malls and VinCommerce • Vinhomes Gardenia

QUALITY RETAIL MALLS

VIETNAM’S VACATION PARADISE

46 are currently three Vincom Mega Malls located in Hanoi

As a leading operator of retail malls, Vincom Retail

28 ANNUAL REPORT 2017 - VINGROUP VINGROUP - ANNUAL REPORT 2017 29

VINPEARL LAND VINCOMMERCE

VINPEARL LAND – VIETNAM’S RECREATION PARADISE A LEADING MODERN RETAIL NETWORK

1,200 and convenience stores in Hanoi, Ho Chi Minh City, and

VinPro is the Group’s retail brand for electronics,

30 ANNUAL REPORT 2017 - VINGROUP VINGROUP - ANNUAL REPORT 2017 31

SOCIAL INFRASTRUCTURE SERVICES

6 By employing the most highly skilled medical experts, and

32 ANNUAL REPORT 2017 - VINGROUP VINGROUP - ANNUAL REPORT 2017 33

14 land. VinEco products include clean and safe vegetables,

By using the most advanced large-scale greenhouse

34 ANNUAL REPORT 2017 - VINGROUP VINGROUP - ANNUAL REPORT 2017 35

CORPORATE STRUCTURE GENERAL MEETING

Vingroup operates five core businesses within seven

VINPEARL VINMART SUPERMARKETS VINACADEMY EDUCATION

VINCOM RETAIL RISK MANAGEMENT

INTERNAL AUDIT DIVISION

SECURITY AND FIRE

36 ANNUAL REPORT 2017 - VINGROUP VINGROUP - ANNUAL REPORT 2017 37

38 ANNUAL REPORT 2017 - VINGROUP VINGROUP - ANNUAL REPORT 2017 39