Interim Results

VietNam Holding Limited
05 March 2008

5 March 2007

VietNam Holding Limited



ISIN: KYG9361X1043.

VietNam Holding Limited (the 'Company') is pleased to announce interim results
for the six month period from 1st of July 2007 to 31st of December 2007. Copies
of the interim report have been sent to shareholders and will be available, free
of charge, from the offices of Grant Thornton Corporate Finance, 30 Finsbury
Square, London, EC2P 2YU or Vietnam Holding Asset Management, Gartenstrasse 19,
CH 8002 Zurich, Switzerland. A pdf version of the interim report will also be
available for download from the Company's website www.vietnamholding.com/
news.htm.


Philip Secrett
Grant Thornton Corporate Finance
Phone: + 44 20 7383 5100

Malcolm Gourlay
VietNam Holding Limited
Phone: [phone]

Highlights

During the period covered by this interim report, the Company approached full
investment in Vietnamese equities, acquired at attractive valuations.  By
end-2007, 82% of VietNam Holding's total net asset value was represented by
equity investments, and a further 12% was in Vietnamese Brady bonds.

During this period, growth in the net asset value of VietNam Holding out-paced
the VNI index.  Despite a 9.5% decline in VNI equities index for the latter half
of calendar year 2007, VietNam Holding's net asset value grew by 4.6% over this
same period.

VietNam Holding's investment portfolio comprises a diverse spectrum of business
sectors, including those sectors anticipated to perform particularly well at
this stage of Vietnam's economic development.  Such prospective sectors include:
construction and materials, chemicals, oil and gas, and food and beverages.

The strategy of investing in former state-owned enterprises, at attractive
valuations, prior to their subsequent listing on a stock exchange has proven to
be successful.  A number of VietNam Holding's investee companies have seen their
valuations increase markedly, upon or shortly after listing.

Just over 31% of VietNam Holding's equity investments are in companies that have
still to list on a formal stock market.  We believe this positions VietNam
Holding well for anticipated upward revisions in valuations for these companies
during 2008, as they proceed to enact a stock market listing.

At end-2007, the weighted average trailing price/earnings ratio for VietNam
Holding's equity investments was 20.4.  This compares favorably with a weighted
average trailing price/earnings ratio, for all the companies in the VNI index,
of 27.1.


Chairperson's Statement
Performance

I am pleased to report that in the first half of fiscal year 2008, VietNam
Holding's pace of investment was on target, as we approached full deployment of
capital.  By 31 December 2007, approximately 82% of total capital was held in
Vietnamese equities, with the remainder in USD denominated bonds and cash.  This
compares with 24% of total capital invested in Vietnamese equities a year
earlier.  Moreover, VietNam Holding's net asset value (NAV) grew by 4.63%
between 1 July 2007 and 31 December 2007, from USD 124.76 million to USD 130.54
million. In so doing, VietNam Holding out-performed the VNI equity index, which
saw a decline of 9.5% over the same period.

Investment objective

VietNam Holding is well on its way to fulfilling its primary objective of a
well-diversified Vietnamese equity portfolio, positioned for long-term capital
appreciation. By 31 December 2007, VietNam Holding's portfolio was comprised of
34 companies, with an average investment size of USD 3.15 million. Furthermore,
the portfolio spans some of the most dynamic areas of industrial and economic
growth in today's Vietnam. At the end of December 2007, the construction and
materials sector accounted for 17% of the portfolio, chemicals made up 14%, the
oil and gas sector was 11%, and food and beverages represented 10%.

Investment strategy

A key element of VietNam Holding's investment strategy is to acquire equity
interests in former state-owned enterprises (SOEs) prior to their listing on one
of the two domestic securities trading centers. For the six months ending 31
December 2007, our Investment Manager pursued this goal successfully, and the
investment team was instrumental in accumulating unlisted shares - through the
over-the-counter market or privately negotiated deals - in such exciting
business prospects as Imexpharm and An Giang Plant Protection. The inherent
value of this strategy is the potential capital appreciation to be derived from
acquiring equity in unlisted firms, at relatively low price/earnings multiples,
when compared with their listed peers that typically trade at higher multiples.
By the end of December 2007, eight out of the ten largest investments made by
VietNam Holding were purchased prior to, or upon, an initial public offering.

Financial highlights

VietNam Holding's investment portfolio generated USD 9.03 million in net
investment income during the first 6 months of fiscal year 2008, compared with
USD 11.09 million reported for the same period in fiscal year 2007.  The
decrease in net investment income was partially due to lower unrealized gains on
investment, from USD 7.57 million a year earlier to USD 2.98 million this year.

As the market value of VietNam Holding's investment portfolio continued to grow,
so did some of the fees paid to outside service providers (such as accounting
service charges), as these are based on a fixed percentage of the investment
portfolio's size.  Despite such increases in third party costs, total expenses
for the period were USD 3.25 million; slightly lower than the USD 3.38 million
recorded for the first half of fiscal year 2007, primarily due to lower
performance fees.

After accounting for total expenses, net investment income brought a USD 5.78
million increase in VietNam Holding's NAV for the six months ending 31 December
2007; lower than the USD 7.71 million increase in NAV for the same period a year
earlier.  It is worth noting, however, that the NAV growth of the previous year
was supported by the stronger performance of the VNI index. In comparison,
VietNam Holding achieved a positive NAV performance for the first half of fiscal
year 2008, despite the downward trend in Vietnam's equity markets since April
2007.

Outlook

Given that the global financial market backdrop may remain in a state of flux in
the near term, VietNam Holding intends to focus on the quality of corporate
earnings in its investee companies, as much as on earnings growth itself.
Non-core earnings by Vietnamese firms, sometimes stemming from equity and/or
real estate speculation, tends to add to earnings volatility, and should be
discounted during valuation.   In the coming months of 2008, Vietnamese
companies that successfully sustain growth in their operating profits, generated
by focusing on their core competencies, will rightly earn greater investor
confidence. We continue our efforts to maintain such companies in the portfolio
and to build the long-term value of your investment.


Min-Hwa Hu Kupfer
Chairperson
29th February 2008



Investment Manager's Report

The economy

Vietnam remains a market of great interest and significant potential for the
careful and committed investor.  It is also a market that requires detailed
analysis, a well-balanced investment portfolio, and should be approached with a
long-term perspective.

The country's economic fundamentals are strong and growing. The Vietnam economy
expanded by 8.4% in 2007, and is widely expected to perform almost as well in
2008.  Foreign direct investment inflows, led by large companies from other East
Asian countries, exceeded USD 20 billion last year, and show no sign of abating.
Literally thousands of new private sector companies are being established each
year, and a new enterprise and investment legislative framework is creating a
more level playing field for a growing number of participants in Vietnam's
fast-paced business environment.

Vietnam's exports are equivalent to nearly 65% of its ever-expanding GDP;
considerably higher than China's export-to-GDP ratio of around 40%.
International trade is blossoming in a wide array of business sectors, and
further buoyed by Vietnam's accession to the WTO. Vietnam is a net exporter of
hydrocarbons, and its first oil refinery is in the later stages of construction.
Although Vietnam's economy remains very much a 'people story', the country is
increasingly being seen as more than a platform for high labor content,
export-oriented manufacturing.  The recent arrival of Intel and the construction
of a USD 1 billion chip assembly and testing plant is testament to the fact that
Vietnam is moving up the value added chain, and becoming an active participant
in cross-border production networks.  The 'made in Vietnam' label is becoming an
increasingly common sight in the stores of the US and Europe.

Investment activity

Portfolio investment inflows have been growing steadily, as smart money from
around the world has sought to gain exposure to the inspiring development of one
of Asia's most exciting economies.  This trend has been supported by the rapidly
growing range of assets, and equity securities in particular, in which foreign
and institutional investors may safely invest.  Gaining genuine exposure to the
Vietnam growth phenomenon is becoming an increasingly viable - but not yet easy
- investment proposition.

The country is changing at a pace that almost defies adequate description.
Modern factories and equipment are replacing dilapidated workshops and
antiquated tools.  High-rise buildings are replacing colonial-era buildings and
slum dwellings.  Imported cars are overtaking bicycles and motorbikes. Office
clothes that reflect modern fashion have relegated the traditional 'ao dai' to
the back of many closets.  And the work ethic of Vietnam's young population is
exceeded only by their lofty, but attainable, aspirations to help build - and
enjoy the fruits of - a more prosperous economy.

Risks

Inevitably, there are threats to this good news story, emanating from both
inside and outside the country.  Like all markets, Vietnam is not immune to the
vagaries and pressures of the global economy, nor the many challenges posed by
rival economies seeking to host foreign investment or serve the same export
markets.  Internally, the strains posed by rapid urbanization and an overly
stressed infrastructure loom precariously.  In the latter half of 2007, the
specter of double digit inflation became apparent for the first time in over a
decade.  Necessary monetary counter measures by the government will put pressure
on bank lending, domestic liquidity, marginal investments, and perhaps corporate
growth, in 2008. These measures may also have a positive impact on equity
financing, as debt financing becomes more expensive and less readily available.

The team

Against this background of both risk and opportunity, our investment management
company continues to serve VietNam Holding and its shareholders with skill and
enthusiasm. Our team is strong and growing, and I am pleased to announce that it
is being led by a newly appointed Managing Director, Vinnie James Yu.  Vinnie
brings the many benefits of a highly successful financial services career with
such companies as Citibank, First National Bank of Chicago (now part of JP
Morgan-Chase) and Lehman Brothers.  Our modern offices in Hanoi and Ho Chi Minh
City house a team that is united in the pursuit of a well structured and
successfully managed investment portfolio, with net asset value growth as a
driver of share price.  A revised and improved human resources and compensation
scheme better rewards our team members, and ensures their retention in a
marketplace that is hiring aggressively. In addition, newly identified
functional assignments for Board members facilitate the best focus of their
individual support to the Managing Director and staff.

I am encouraged by the progress we have made during the second half of 2007.  As
reported by the Chairperson, VietNam Holding is nearly fully invested.
Consequently, our efforts are currently focused on managing the portfolio to
take maximum advantage of the inherent strength of value stocks.  Our strategy
of balancing former SOEs listed securities with OTC securities purchased early
has borne fruit. In a number of cases we have benefited from a substantial share
premium realized at listing.  At the time of writing, the Company continues to
hold 31.2% of its net asset value in unlisted securities, with the expectation
of future price rises.

Future outlook

Looking ahead, more than 2,000 Vietnamese SOEs remain to be equitized.  And many
of the SOEs that have already been partially equitized will seek to further
reduce the State's equity stake.  (The establishment of the State Capital
Investment Corporation (SCIC) will play a key role in this on-going divestment
process.)  A growing number of robust private stock companies also provide
attractive investment opportunities.

To be in a position to take advantage of these situations, we will be actively
exploring a capital increase with existing and new European investors,
principally in Germany, where we have recently obtained the important tax status
of a transparent fund for German investors. We are also working with investor
communications specialists, the Buchanan Company, and new broker, JP Morgan
Cazenove, to improve our investor reach.  By continuing to improve communication
of our investment thesis, we aim to derive a share price that more accurately
reflects the Company's net asset value and portfolio strength.  We also continue
our efforts to maintain an operating budget that will ensure professional
investment origination and management, in both good times and bad.

In conclusion

I feel justifiably proud of the proven success of our investment strategy, and
the development of the skills and experience of our management and staff.  We
look forward to employing these important strengths in the future growth of
VietNam Holding's net asset value, and to the value of our shareholders'
investment.  Let me take this opportunity to thank you, VietNam Holding's
shareholders, for your continued support.



Juerg Vontobel
Chairman
VietNam Holding Asset Management



29th February 2008



Balance sheet as at December 31, 2007



                                                            at  31.12.07             at  31.12.06
                                                 Note                USD                      USD

Assets
Cash and cash equivalents                                      9,060,719               70,903,621
Investments in securities at fair value           2          122,366,295               43,591,871
Accrued interests on bonds and dividends due                     314,524                  492,420
Accrued interest on deposits                                           -                  315,333
Amounts due from brokers                                         134,562                2,222,590

Total assets                                                 131,876,100              117,525,835

Liabilities
Accrued expenses                                               1,339,170                1,736,466

Total liabilities                                              1,339,170                1,736,466


Net assets attributable to shareholders                      130,536,930              115,789,369





Income statement for the 6 month period from July 1, 2007 to December 31, 2007


                                                                  01.07.07                01.07.06
                                                               to 31.12.07             to 31.12.06
                                             Notes                     USD                     USD
Income

Interest income                                5                 1,176,706               2,835,874
Dividend income                                                    283,299                       -
Realised gain on investments                                     4,571,775                 697,630
Net foreign exchange gain/(loss)               2                    10,108                (11,786)
Movement in unrealised gain on investments     2                 2,983,758               7,573,085

Net investment income                                            9,025,646              11,094,803

Expenses                                       2

Investment management fee                      6                 1,274,212               1,086,599
Performance fee                                6                   657,754               1,273,399
Advisory fees                                                      100,000                  95,146
Accounting fees                                8                    64,649                  55,033
Custodian fee                                  7                   179,677                 165,586
Director fees and expenses                     6                   262,500                 201,333
Brokerage fees                                                      15,000                  21,236
Audit fees                                                          20,000                  37,558
Publicity and Investor Relations fees                              132,500                       -
Insurance fees                                                      21,250                  64,000
Administration expenses                                            102,501                 131,134
Risk management expenses                                           272,500                 247,500
Technical assistance for investee companies                        142,500                       -
Operating expenses                                               3,245,043               3,378,524


Change in net assets attributable to                             5,780,603               7,716,279
shareholders




Statement of changes in net assets attributable to shareholders for the 6 month
period from July 1, 2007 to December 31, 2007


                                                                       01.07.07               01.07.06
                                                                    to 31.12.07            to 31.12.06
                                                  Notes                     USD                    USD

Net assets at  June 30, 2007                                        124,756,327            108,073,090

Change in net assets attributable to shareholders
as a result of operations                                             5,780,603              7,716,279

Issue of shares during the period                    4                     -                      -

Net assets at December 31, 2007                                     130,536,930            115,789,369




The net asset per share at December 31, 2007 was USD 2.321 (December 31, 2006
USD 2.058)

Statement of cash flows for the 6 month period from July 1, 2007 to December 31,
2007


                                                             01.07.07                     01.07.06
                                                          to 31.12.07                  to 31.12.06
                                                                  USD                          USD

OPERATING ACTIVITIES

Interest received                                           1,659,919                    2,028,121
Dividend received                                             274,434                            -
Operating expenses paid                                   (5,024,683)                  (1,668,214)
Receipt from repurchase agreements                          5,027,234                            -
Net foreign exchange gain/(loss)
on operating activities                                        10,108                     (11,786)

Cash flows from operating activities                        1,947,012                      348,121

INVESTING ACTIVITIES

Purchase of investments                                  (64,226,500)                 (38,241,377)
Proceeds from sale of investments                          19,943,491                      697,630


Cash flows from Investing activities                     (44,283,009)                 (37,543,747)

FINANCING ACTIVITIES

Proceeds from issuance of shares                                    -                            -


Cash flow from financing activities                                 -                            -

Net decrease in cash and cash equivalents                (42,335,997)                 (37,195,626)

Cash and cash equivalents at the beginning of the          51,396,716                  108,099,247
period


Cash and cash equivalents at the end of the period          9,060,719                   70,903,621





Notes to the Financial Statements

1          THE COMPANY

VietNam Holding Limited (the Company) is a closed-end investment holding company
incorporated on April 20, 2006 as an exempt company under the Companies Law in
the Cayman Islands and commenced its operations on June 15, to invest
principally in securities of former SOEs in Vietnam, prior to, at or after the
time such securities become listed on the Vietnam Stock Exchange, including the
initial privatisation of the SOEs. The Company may also invest in the securities
of private companies in Vietnam, whether Vietnamese or foreign owned, and the
securities of foreign companies if a significant portion of their assets are
held or operations are in Vietnam.

The investment objective of the Company is to achieve long-term capital
appreciation by investing in a diversified portfolio of companies that have high
growth potential at an attractive valuation.

Vietnam Holding Asset Management Limited (VNHAM) has been appointed as the
Company's Investment Manager and is responsible for the day-to-day management of
the Company's investment portfolio in accordance with the Company's investment
policies, objectives and restrictions. quondam vietnam partners Ltd. has been
appointed as VNHAM's Investment Advisor and is responsible for providing
strategic advice to VNHAM on a non-exclusive basis.

Credit Suisse (Luxembourg) has been appointed to act as custodian of the
Company's assets (as can be legally held outside of Vietnam). Vietnamese law
requires that the Company's shares in listed companies must be held by a
custodian registered as such in Vietnam and these assets will therefore be held
by the Vietnam sub-custodian. HSBC (Vietnam) has been appointed to act as
sub-custodian. Credit Suisse Asset Management Fund Service (Luxembourg) SA has
been appointed to act as the administrator of the Company.

The registered office of the Company is Card Corporate Service Ltd, Zephyr
House, Mary Street 122, Grand Cayman, Cayman Islands.

2          PRINCIPAL ACCOUNTING POLICIES

(a)   Statement of compliance

The financial statements have been prepared in accordance with International 
Financial Reporting Standards (IFRS) and interpretations adopted by the 
International Accounting Standard Board.

(b)   Basis of preparation

The financial statements are presented in US Dollars (USD) and rounded to the
nearest USD. They are prepared on a fair value basis for financial assets and
financial liabilities at fair value through profit or loss or stated at
amortised cost.

The preparation of financial statements in conformity with IFRS requires
management to make judgements, estimates and assumptions that affect the
application of policies and the reported amounts of assets and liabilities,
income and expense. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from the
estimates.

The estimated and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.

(c)   Foreign currency translation

Transactions in foreign currencies other than the functional currency are 
translated at the rate ruling on the dates of the transactions. Monetary assets 
and liabilities, denominated in foreign currencies are re-translated to USD at 
the rates ruling on the year-end date. Foreign currency exchange differences 
arising on translation and realised gains and losses on disposals or settlements 
of monetary assets and liabilities are included in the income statement.  
Foreign currency exchange differences relating to financial instruments 
held-for-trading are included in the realised and unrealised gains and losses on 
those investments. All other foreign currency exchange differences relating to 
other monetary items, including cash and cash equivalents, are included in net 
foreign exchange gain and losses in the income statement.

(d)   Financial instruments

(i)    Classification

The Company designated all its investments into the financial assets at fair 
value through profit and loss category.

The category of financial assets and financial liabilities at fair value through
profit and loss comprises:

Financial instruments held-for-trading. These include futures, forward
contracts, options, interest rate swaps and liabilities from short sales of
financial instruments. All derivatives in a net receivable position (positive
fair value), as well as options purchased, are reported as financial assets
held-for-trading. All derivatives in a net payable position (negative fair
value), as well as options written, are reported as financial liabilities
held-for-trading.

Financial instruments designated at fair value through profit and loss upon
initial recognition. These include financial assets that are not held for
trading purposes and which may be sold. These are investments in exchange-traded
debt and equity instruments, unlisted off-shore open-ended investments funds,
unlisted equity instruments and commercial paper.

Financial assets that are classified as loans and receivables include balances
due from brokers, receivables from reverse repurchase agreements and accounts
receivable.

Financial liabilities that are not at fair value through profit and loss include
balances due to brokers, payables under repurchase agreements, accounts payable
and financial liabilities arising on redeemable shares.

(ii) Recognition

The Company recognises financial assets held for trading on the trade date,
being the date they commit to purchase the instruments.  From this date, any
gains and losses arising from changes in fair value of the assets or liabilities
are recorded.

Financial liabilities are not recognised unless one of the parties has performed
or the contract is a derivative contract not exempted from the scope of IAS 39.

(iii) Derecognition

A financial asset is derecognised when the Company no longer has control over
the contractual rights that comprise that asset.  This occurs when the rights
are realised, expire or are surrendered.

Assets held-for-trading that are sold are derecognised, and corresponding
receivables from the buyer for the payment are recognised on the trade date,
being the date the Company commits to sell the assets.

A financial liability is derecognised when the obligation specified in the
contract is discharged, cancelled or expired.

The weighted average method is used to determine realised gains and losses on
derecognition.

(iv) Measurement

The financial statements are prepared on a fair value basis for derivative
financial instruments, financial assets and liabilities held for trading, except
those for which a reliable measure of fair value is not available. Other
financial assets and liabilities and non-financial assets and liabilities are
stated at amortised cost.

Valuation

Marketable securities are carried at fair value. The fair value of the
securities is based on their quoted price at the balance sheet date without any
deduction for transactions costs.

If quoted market prices are unavailable or do not, in the opinion of the Board
of Directors, represent probable realisable values, or if the securities are not
listed, the value of the relevant securities is ascertained by the Board
Directors in good faith using valuation methods which they consider fair in the
circumstances including quotes received from brokers and other third party
sources where possible.

Any increase or decreases in carrying values are recognized in the statement of
operations as an unrealised gain or loss.

(v) Gains and losses on subsequent measurement

Gains and losses arising from a change in the fair value of financial
instruments are recognised in the income statement.

(vi) Specific instruments

Cash and cash equivalents

Cash comprises current deposits with banks, fixed deposits, margin accounts and
bank overdrafts.  Cash equivalents are short-term highly liquid investments that
are readily convertible to known amounts of cash, are subject to an
insignificant risk of changes in value, and are held for the purpose of meeting
short-term cash commitments rather than for investment or other purposes.

Reverse repurchase transactions

Securities purchased under agreements to resell (reverse repurchase agreements)
are reported as receivables and are carried in the balance sheet at amortised
cost.

Interest earned on reverse repurchase agreements and interest incurred on
repurchase agreements is recognised as interest income or interest expense, over
the life of each agreement using the effective interest method.

Forward foreign exchange contracts

Forward foreign exchange contracts are stated at market value, with the
resulting net realised and unrealised gains and losses reflected in the income
statement.

(e)   Interest income and expense

Interest income and expense is recognised in the income statement on an accruals
basis.

Interest income includes the amortisation of any discount or premium on zero
coupon bonds, which is taken to income on the basis of yield to redemption, from
the date of purchase.

(f)    Miscellaneous income

Miscellaneous income is recognised in the income statement on an accruals basis.

(g)   Formation expenses

Costs and expenses attributable to the establishment of the Company have been
written off in full.

(h)   Offsetting

Financial assets and liabilities are offset and the net amount is reported in
the balance sheet when the Company has a legally enforceable right to set off
the recognised amounts and the transactions are intended to be settled on a net
basis or simultaneously, e.g. through a market clearing mechanism.

(i)    Amounts due to/from brokers

Amounts due to/from brokers represent security purchases and sales transactions
which are contracted for but not yet delivered at the period end.

(j)    Taxation

Under the current system of taxation in Cayman Islands, the Company is exempt
from paying taxes on income, profits or capital gain. Accordingly, no provision
for income taxes is made in these financial statements.

(k)   Expenses

Expenses in the income statement are equal to half of the expected yearly cost
except from the line items 'Investment management fee', 'Accounting fees' and '
Custodian fees' which are based on a set percentage of net asset value.

3     FINANCIAL INSTRUMENTS AND ASSOCIATED RISKS

Financial assets of the Company include investments, receivables from reverse
repurchase agreements, cash at banks and with brokers and debtors, prepaid
expenses and accrued income. Financial liabilities include bank loans and
overdrafts, creditors and accrued charges. Accounting policies for financial
assets and liabilities are set out in note 2.

The Company's investment activities expose it to various types of risk that are
associated with the financial instruments and the markets in which it invests.
The most important types of financial risk to which the Company is exposed are
market risk, credit risk and liquidity risk.

Asset allocation is determined by the Company's Investment Manager who manages
the distribution of the assets to achieve the investment objectives. Divergence
from target asset allocations and the composition of the portfolio is monitored
by the Investment Manager.

Market risk

Market risk is the risk that the value of a financial asset will fluctuate as a
result of changes in market prices, whether or not those changes are caused by
factors specific to the individual asset or factors affecting all assets in the
market. The Company will be exposed to market risk on all of its investments,
but in the case of its investments in Listed Companies, such market risk relates
to the Vietnamese market, which is at or near an all-time high, and other
exchanges, if any, where the Company's investments are to be listed.
Furthermore, there is no certainty that the market price of the Ordinary Shares
will fully reflect their underlying net asset value. Shares of closed-end
investment companies frequently trade at a discount to net asset value. This
characteristic of shares of a closed-end investment company is a risk separate
and distinct from the risk that the Net Asset Value may decrease.

The overall market positions are monitored on a regular basis by the investment
manager and the Board of Directors.

The Company's investments in securities are exposed to market risk and are
disclosed by the following generic investments types:


                                            31.12.07                      31.12.06

Description                         Fair value in      % of net   Fair value in      % of net
                                              USD        assets             USD        assets

Bonds and similar investments          15,302,308        11.72%      21,559,907        18.62%

Shares and similar investments        107,063,987        82.02%      22,031,964        19.03%
                           

Total                                 122,366,295        93.74%      43,591,871        37.65%
                                      

Currency risk

The Company may invest in financial instruments and enter into transactions
denominated in currencies other than its functional currency. Consequently, the
Company is exposed to risks that the exchange rate of its currency relative to
other currencies may change in a manner that has an adverse effect on the value
of that portion of the Company's assets or liabilities denominated in currencies
other than USD.

The Company may, however, enter into arrangements to hedge currency risks if
such arrangements become desirable and practicable in the future in the interest
of efficient portfolio management.


                                  Assets Fair     Assets Fair
                                        value           value
                                     31.12.07        31.12.06

Currency                                  USD             USD
Vietnamese Dong                   110,683,088      28,158,846




Credit Risk

Credit risk is the risk that a counterparty to a financial instrument will fail
to discharge an obligation or commitment that it has entered into with the
Company.

At December 31, 2007, the following financial assets were exposed to credit
risk: investments in debt instruments. Total carrying amount of financial assets
exposed to credit risk amounted to USD 15,601,695 (31.12.06: USD 22,052,327).

Credit risk arising on transactions with brokers relates to transactions
awaiting settlement and cash collateral provided against open contracts. Risk
relating to unsettled transactions is considered small due to the short
settlement period involved.

Liquidity risk

The Company, a closed-end investment company, will invest in Companies through
listings on the Vietnam Stock Exchange or on other stock exchanges. There is no
guarantee however that the Vietnam Stock Exchange will provide liquidity for the
Company's investments in Unlisted Companies. The Company may have to resell such
investments in privately negotiated transactions.

The Company's shares are listed on AIM, a market designed primarily for emerging
or smaller companies to which a higher investment risk tends to be attached than
to larger or more established companies. An investment in shares quoted on AIM
may carry a higher risk than an investment in shares quoted on the Official List
of the United Kingdom Listing Authority. AIM has been in existence since June
1995 but its future success, and any liquidity in the market for the Company's
securities, cannot be guaranteed. An investment in Ordinary Shares may be
difficult to realise.

Interest rate risk

The Company will be exposed to interest rate risk, due to investment in fixed 
interest rate bonds. The prices of these securities are sensitive to interest 
rate fluctuations, and unexpected fluctuations in interest rates could cause the 
valuations of the fixed interest rate bonds to move in a direction which was not 
anticipated.

4    SHARE CAPITAL

The Ordinary Shares have been created pursuant to the Companies Law in the
Cayman Islands. The Company was incorporated with an authorised share capital of
USD 100,000,000 divided into 100,000,000 Ordinary Shares of USD 1.00 each. The
one Ordinary Share in issue was transferred to the Investment Manager on 28
April 2006 and purchased by the Company on June 15, 2006 for USD 1.00 and was
immediately cancelled.

On June 6, 2006, the Board resolved that up to 56,250,000 Ordinary Shares would
be allotted at a placing price of USD 2.00 per Ordinary Share at, but
conditional upon, admission. The Ordinary Shares' ISIN number is KYG9361X1043.
No shares have been issued or redeemed since June 6, 2006.

Redeemable shares

The Company's general intention is to reinvest the capital received on the sale
of investments. However, the Board may from time to time and at its discretion,
either use the proceeds of sales of investments to meet the Company's expenses
or distribute them to Shareholders. Alternatively, the Board may offer to redeem
Ordinary Shares with such proceeds for Shareholders pro rata to their
shareholding upon not less than 30 calendar days' notice to Shareholders
(subject always to applicable law) or purchase Ordinary Shares pursuant to a
tender offer to repurchase Ordinary Shares at a price not exceeding the last
published Net Asset Value per Share.

5    INTEREST INCOME

                                                   01.07.07         01.07.06
                                                to 31.12.07      to 31.12.06
                                                        USD              USD
Interest income arising from:
cash and cash equivalent                            607,574         2,346,729
investment in other debt securities 
and receivable from reverse 
repurchase agreement                                569,132           489,145

Total                                             1,176,706         2,835,874

6    RELATED PARTY TRANSACTIONS

Investment Management fees

The Manager is entitled to an investment management fee of 2% per annum on
the monthly net assets under management. The fee is payable monthly and in
advance and is calculated by reference to the NAV at the end of the preceding
month.

The Company will pay to the Investment Manager a performance bonus each year at 
the rate of 20% of the annual increase in Net Asset Value over the higher of an 
annualised hurdle rate of 5% and a 'high water mark' requirement.

The total fees accruing to the Investment Manager during the last six months 
were USD 1,274,212 (31.12.06: USD 1,086,599) as management fee and USD
657,754 (31.12.06: USD 1,273,399) as performance fee.

Directors' fees and expenses

The Board will determine the fees payable to each Director, subject to a maximum
aggregate amount of USD 350,000 per annum being paid to the Board as a whole.
The Company will also pay reasonable expenses     incurred by the Directors in
the conduct of the Company's business including travel and other expenses. The
Company will pay for directors and officers liability insurance coverage.

The charges for the six month period to December 31, 2007 for the Directors'
fees were USD 175,000 (31.12.06: USD 126,333) and expenses were USD 87,500
(31.12.06: USD 75,000).

7    CUSTODIAN FEES

The custodian will receive a fee of 0.26% per annum of the value of the
assets held by it. The custodian will also charge fees for transactions and is
entitled to charge out-of-pocket and any third party expenses.

The charges for the six month period to December 31, 2007 for the Custodian
fees were USD 179,677 (31.12.06: USD 165,586).

8    ADMINISTRATION AND ACCOUNTING FEES

The Administrator will receive a fee of 0.1% per annum calculated on the
basis of the net assets of the Company during the last half year, with the fee
payable at the end of each half year, subject to an annual minimum amount of
100.000 USD per annum.

The charges for the six month period to December 31, 2007 for the
Administration and Accounting fees were USD 64,649 (31.12.06: USD 55,033).

9    CONTROLLING PARTY

The Directors are not aware of any ultimate controlling party as at  
December 31, 2007 or as at December 31, 2006.

10   FAIR VALUE INFORMATION

For certain of the Company's financial instruments not carried at fair value,
such as cash and cash equivalents, debtors, prepaid expenses and accrued income 
and creditors and accrued charges, the carrying amounts approximate fair value 
due to the immediate or short term nature of these financial instruments.

Other financial instruments are measured at fair value on the statement of the
net assets attributable to holders of redeemable shares.

Fair value estimates are made at a specific point in time, based on market
conditions and information about the financial instrument. These estimates are
subjective in nature and involve uncertainties and matters of significant
judgement and therefore, cannot be determined with precision. Changes in
assumptions could significantly affect the estimates.




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