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THE STATE BANK OF VIETNAM---------No

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THE STATE BANK OF VIETNAM---------No

Translation update service since 1 April, 1999

    STATE BANK SOCIALIST REPUBLIC OF VIETNAM

    OF VIETNAM Independence - Freedom - Happiness

    -------------- ---------

    th, 2008 No. 9054/NHNN-VP Hanoi, October 7

    Re: sending the notice about

    conclusion of Prime Minister Nguyen

    Tan Dzung

     To: - Departments, units under SBV's management;

     - Commercial banks: State-owned, joint stock; joint venture, foreign bank’s

    branches in Vietnam; Central People's Credit Fund;

     - Vietnam Banks Association; People's Credit Funds Association;

     - Deposit Insurance of Vietnam.

    rdThe Office of the Government issued, on October 3, 2008, the Notice No. 288/TB-VPCP informing conclusion of Prime Minister Nguyen Tan Dzung on the implementation of measures

    aiming to limit bad effects of current financial crisis on our country's economy. The State Bank would like to send the above notice to units of the entire banking branch for

    thorough grasp and coordination in implementation.

    Authorized by the Governor of the state bank

    Director of the Administrative Department

    DAO MINH TU (Signed and sealed)

_______________________________________________________________________________________________________________________ ; Investment Consultancy Co., Ltd. V-d-9054 P. 1/1

Translation update service since 1 April, 1999

THE GOVERNMENT'S OFFICE SOCIALIST REPUBLIC OF VIETNAM

    --------- Independence - Freedom - Happiness

    No. 288/TB-VPCP --------------

    rd, 2008 Hanoi, October 3

    NOTICE

    On the conclusion of Prime Minister Nguyen Tan Dzung on the implementation of measures aiming to limit bad effects of current financial crisis on our country's economy

    ------------------------

    stOn October 1, 2008, at the Office of the Government, Prime Minister Nguyen Tan Dzung chaired the meeting to hearing reports of functional agencies on assessment of effects of financial crisis in the United States to the economy of our country and measures aiming to limit bad effects of the crisis. The meeting also had the attendance of Deputy Prime Ministers, Governor of the State Bank of Vietnam, Ministers of Finance, Industry and Trade, Planning and Investment; President of National Finance Supervision Committee and leaders of Ministry of Foreign Affairs, Ministry of Public Security, the Government's Office, State Securities Committee. After hearing reports of agencies and opinions of Deputy Prime Ministers, Prime Minister made conclusion as follows:

    To basically agree with assessments, forecasts of Ministries, branches on impacts and influences of financial crisis in the United States to our country and proposed solutions of Ministries, branches in order to limit bad effects of the crisis on the economy of our country. The current financial crisis in the United States not only weakens the US economy, but also causes bad effects to the world economy in general, including our economy. Until now, the crisis has not caused direct effects to economy of our country yet, but it has created indirect effects at an inconsiderable level for such operation fields as finance, monetary, commerce, service and attraction of foreign investment. To take initiative in preventing from and limiting bad effects of the crisis; at the same time, to take advantage of opportunities for developing internal force, to better use external force in order to perform proposed economic targets, Ministries, branches and localities should focus on well implementing following solutions:

    1. To implement resolutely, effectively 8 groups of solution in line with direction of the Government and solutions of macroscopic management set out by Prime Minister in 2008 _____________________________________________________________________________________________________________ ; Investment Consultancy Co., Ltd.

Translation update service since 1 April, 1999

     th, 2008 of the Government, Official Letter (Resolution No. 10/2008/NQ-CP dated April 17

    thNo. 970/TTg-KTTH dated June 25, 2008 of Prime Minister) in order to restrain inflation,

    stabilize macro-economy, ensure social security and sustainable growth of the economy. - To keep implementing tight monetary policy, however, it is necessary to manage flexibly in order to ensure liquidity of the banking system and economy, to have reasonable policy to facilitate commercial banks to mobilize capital source, to give priority to investment in development of production, business for sectors, branches and products, services which bringing about economic effects; at the same time, to manage interest rate, exchange rate, to use foreign exchange reserves flexibly, effectively in the orientation of encouraging production, exportation, making contribution to reduction of trade deficit, to ensure the implementation of targets of restraining inflation and maintaining sustainable economic development.

    - To keep directing the good implementation of contents of the Decision No. 390/QD-TTg

    thdated April 17, 2008 of Prime Minister on the management of plan of capital construction and budget spending in 2008 for restraining inflation; to resolutely adjust and reduce public investment, especially investments of state-owned groups and enterprises; to further reduce budget deficit, restructure portfolio of state-owned groups, corporations, enterprises for dealing with one of primary reasons of structural inflation of our country, in order to concentrate resources for settling unstable issues of the economy and to give priority to investment in economic sectors in more effective manner.

    2. Ministries, branches, based on assigned functions, duties, shall organize well the supervision, assessment of situation of the United States financial market and the world, define effects and influent limit to each sector, in order to actively, timely work out reasonable solutions or to propose appropriate, specific settlement solutions belonging to assigned sector for limiting negative impacts of the crisis on Vietnamese economy. - The State Bank of Vietnam, Ministry of Finance shall direct and request commercial banks, economic groups to immediately check deposits and investments in commercial banks, foreign financial institutions as well as loans of these organizations, since then to take such appropriate, necessary measures as: restructuring of portfolio, capital withdrawal … (for loans, investments) in order to ensure liquidity; to pay debts before

    maturity, insure interest rate (for borrowings) for minimizing risk of capital loss or cost _____________________________________________________________________________________________________________ ; Investment Consultancy Co., Ltd.

Translation update service since 1 April, 1999

    increase due to the bankruptcy of foreign financial institutions, high increase of interest rates in international market, etc; at the same time, to check investment, business activities of foreign investment banks in Vietnam, to inform Ministry of Foreign Affairs of list and commitment limit of these banks so that the Ministry can direct Vietnam representative agencies in foreign countries to study, assess and timely inform about financial situation, possible risk level related to foreign financial institutions, credit institutions which are operating in Vietnam for actively coping with.

    - The State Bank of Vietnam should have close supervision measure and direct commercial banks to recheck investment loans, especially investments in highly risky sectors (real estates, securities, multi-industry investments, etc.), to strengthen the control and prevention of risks for real estate loan, to take measures of reorganizing, overcoming timely, effectively errors which affect operation of each bank; to assess, define real state of bad debt, prudential level of each credit institution for working out active overcoming solutions, ensuring prudential operation of the system; at the same time, to study for completing the regulation on purchase, sale of debts and set up the organization purchasing, selling, settling debts which are difficult to collect for commercial banks system; to early prepare the regulation on mergence, integration, acquisition, bankruptcy of banks facing with troubles and submit it to the Government for issuance in order to have legal foundation for implementation of restructuring policy for weak commercial banks and credit institutions, ensuring the healthy and prudential operation of the system. - Ministry of Finance shall direct State Securities Committee to follow up, closely supervise capital outflow, inflow of foreign investors; at the same time, to deal with queries related to administrative procedures in securities activity in order to speed up investment capital attraction from this market and develop market sustainably; To immediately check operations of financial institutions, financial investment funds for assessing and defining actual financial situation of each fund and the entire system, issues that possibly occur, problems need to be solved of financial institutions, financial investment funds being in trouble; at the same time, to check, adjust, supplement, set up criteria, conditions of grant of establishment and operation licence to securities companies, insurance companies and fund management companies in correspondence with new situation.

    _____________________________________________________________________________________________________________ ; Investment Consultancy Co., Ltd.

Translation update service since 1 April, 1999

    - Ministry of Industry and Trade shall direct exporters to recheck exportation, importation by each group of commodity, commodity article so as to have measures of enhancing import-export activity; To implement measures of enhancing production and exportation together with improving quality for increasing value of export goods; to take initiative in speed up commercial promotion, price negotiation and to seek markets in the orientation of diversification and multilateralization of market, paying special attention to potential markets, market in areas that are less affected by the crisis, traditional markets or new markets (Russia, Middle East, Latin American, Africa); at the same time, to well organize domestic market for promoting domestic production, consumption.

    - Ministry of Planning and Investment shall, together with the State Bank, preside over, direct, check the implementation of foreign and domestic investment projects in order to timely discover and solve queries, difficulties including difficulties of loan capital, speed up progress of project investment for early putting the work into operation or to suspend projects, works considered to be not really necessary.

    - The State Bank of Vietnam shall direct and request commercial banks to check, assess carefully loan in real estate sector, to specifically define ineffective projects, works and effective ones for suspending, having measures of management, debt collection or applying suitable measures in order to continue lending with the aim to boost sound activity in this field.

    3. Related Ministries, industries shall facilitate National Finance Supervision Committee to complete legal framework and have sufficient necessary resources, position for performing tasks of joint consultancy and supervision of financial market (banking, securities, insurance) and acting as an independent information channel of the Government. 4. Ministries, industries, news agencies shall continue the close cooperation in the propagation of guidelines, policies of the Government; actively contact, exchange with international investors, financial institutions for intensifying the publicness, transparency of market, enhancing belief of the market in effectiveness of the Government' s guidelines and policies.

    5. Ministries of: Finance, Industry and Trade; State Bank of Vietnam, upon their assigned functions, duties, shall early make a specific plan for sectors under their management _____________________________________________________________________________________________________________ ; Investment Consultancy Co., Ltd.

Translation update service since 1 April, 1999

    (insurance, securities market, exportation, investment capital in real estate market) for actively preventing frp,, dealing with adverse effects; at the same time, making contribution to speeding up the safe and sustainable development of these markets.

    6. Deputy Prime Minister Nguyen Sinh Hung shall directly guide, organize periodical hand -over with competent agencies for timely supervising, assessing and working out suitable solutions in order to minimize bad effects of the current financial crisis on the economy of our country.

    The Office of the Government would like to inform agencies for knowledge and implementation.

    For the Minister, Chief of Government's Office

    Deputy Chief

    PHAM VAN PHUONG (Signed and sealed)

_____________________________________________________________________________________________________________ ; Investment Consultancy Co., Ltd.

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