KHÔNG NGỪNG VƯƠN CAO UNCEASING DEVELOPMENT ENHANCING MARKET POSITION BÁO CÁO THƯỜNG NIÊN 2016

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1 KHÔNG NGỪNG VƯƠN CAO NÂNG TẦM VỊ THẾ UNCEASING DEVELOPMENT ENHANCING MARKET POSITION BÁO CÁO THƯỜNG NIÊN 2016 Annual Report 2016

2 CONTENTS GENERAL INFORMATION 01 Chairman s Letter Vision - Mission - Core Values About Gemadept Corporation Business Scopes and Services Significant Milestones Subsidiaries and Associates Organization and Management Structure Board of Management - Control Board - Board of Directors Information on Share Capital and Shareholders Process of Charter Capital Increase since the Company s Privatization CORPORATE MANAGEMENT 02 Report of the Board of Management Report of the Control Board Report of the Board of Directors Salary, Bonus, Remuneration and Benefits of Members of Key Management Share Trading by Internal Shareholders Report on Risk Management Report on Investor Relations BUSINESS SECTORS Company Name Stock Code Business Registration & Tax Code : Gemadept Corporation : GMD : Phuoc Long ICD Port Nam Hai Port Nam Hai Dinh Vu Port Nam Dinh Vu Port Gemadept Dung Quat International Port Gemalink Cai Mep Deep-sea Container Terminal Logistics Container Transport Project Cargo Transport Shipping Agency Vessel Fleet Management Saigon Cargo Service Corporation - HCMC (SCSC) Rubber Plantation Real Estate Charter Capital Head-office : VND : No. 6 Le Thanh Ton Street, Ben Nghe Ward, District 1, HCMC BUSINESS PLAN Tel Fax : (84.28) : (84.28) SUSTAINABLE DEVELOPMENT REPORT info@ gemadept.com.vn Website : 06 AUDITED FINANCIAL REPORT 2 Annual Report 2016 Gemadept Corporation 3

CHAIRMAN S LETTER Dear Shareholders, Customers, Partners and Stakeholders, First of all, on behalf of the Board of Management and the Board of Directors of Gemadept Corporation, I would like to

3 CHAIRMAN S LETTER Dear Shareholders, Customers, Partners and Stakeholders, First of all, on behalf of the Board of Management and the Board of Directors of Gemadept Corporation, I would like to express my deepest gratitude to all esteemed Shareholders, Customers, Partners and Stakeholders who have always supported and accompanied Gemadept on the way of development and creating sustainable values. We experienced the year of 2016 with a lot of fluctuations and challenges not only for our country but also for the whole world as the global economy showed slow recovery with many implicit risks along with the profound political disturbance. It can be said that Vietnam's economy had an unfavorable year with GDP growth lower than expected, macroeconomic instability while facing the serious effects of natural and environmental disasters. However, looking back over the year, we still noted positive signals including the successful control of inflation, the record high attraction of foreign investment, stable interest rates and Vietnam s commitment to building a constructive government with its strong efforts to support businesses and to accelerating the process of global integration. In such the situation, Gemadept had a year with many challenges. However, with the enthusiasm, tireless efforts and utmost determination of all management and staffs together with precious cooperation and support of customers, partners, shareholders and relevant authorities, Gemadept successfully outperformed the business goals assigned by its AGM. Moreover, Gemadept expanded its network, pushed up the scale of operations, took good care of employees, proactively contributed to the national budget, the environmental protection, the community and the society. For Gemadept, 2016 was a bright starting milestone for the Corporation s medium-term development strategy during the period of with the implementation of key projects: First of all, the largest and most modern cold warehouse project in Vietnam - Mekong Logistics - was put into operation for Phase 1; In addition, the construction of Nam Hai ICD in Hai Phong was completed and Nam Hai ICD already started to serve clients; Next, the Kline Gemadept Logistics Vehicle Processing Center with PDI function serving local and foreign car importers and exporters officially came into operation; Simultaneously, Gemadept deployed the construction of Nam Dinh Vu Port, which will be the largest port in Hai Phong and is expected to be completed and put into operation for Phase 1 by the end of In the coming time, besides the advantages, Gemadept will continue to face numerous challenges, the most significant challenges of which are the rise of national protectionism and the volatility of the global economy impacting on trading between Vietnam and other countries. Therefore, Gemadept will constantly strengthen its business activities, enhance its competitiveness and optimize its business efficiency realized by putting Nam Dinh Vu Port project into operation as scheduled, investing in the capacity upgrade of Binh Duong Port, SCSC Air Cargo Terminal and resuming the construction of Gemalink Deepsea Container Port project in Cai Mep. Along with the strategy, proposed objectives and action plan, Gemadept will continue to firmly reinforce its position in the market, constantly promote business values and increase the benefits to its customers, partners, shareholders, employees and stakeholders while actively contribute to the country s development. We wish you and your family good Health, Happiness, and Success! Chairman DO VAN NHAN 4 Annual Report 2016 Gemadept Corporation 5

4 VISION Become a Vietnam and regional leading corporation in Port operation, Logistics to maximize benefits of stakeholders, community and society. CORE VALUES PROUD: To be the pioneer in many sectors. To own friendly and effective working environment with high loyalty management and staffs. To bring customers, partners and stakeholders outstanding values. MISSION Possess and operate most effectively the port system stretching from North to South and reaching to neighbouring countries; SELF- RELIANT: To be united and unanimous. To maximize individual capabilities and collective strength. To build solid bases. SELF- To encourage creativity and enthusiasm. CONFIDENT: To seek for differences and breakthroughs. To form the future with constant development. Constantly improve the supply chain to provide customers with most efficient logistics solutions and highest competitive service quality in the market; Properly take investment opportunities to create added values. 6 Annual Report 2016 Gemadept Corporation 7

ABOUT GEMADEPT CORPORATION TOP 50 Best Vietnamese Listed Companies by Forbes Gemadept Corporation was established in 1990 and was among the first 3 companies being selected by the government for

5 ABOUT GEMADEPT CORPORATION TOP 50 Best Vietnamese Listed Companies by Forbes Gemadept Corporation was established in 1990 and was among the first 3 companies being selected by the government for equitization in From 2002, Gemadept was officially listed on Vietnam Stock Exchange. After more than 26 years of establishment and development, Gemadept is proud to be the pioneer in many sectors. With utmost striving and efforts, currently, Gemadept is one of the leading enterprises in its core businesses including Port operation and Logistics in Vietnam market. With business network stretching in many big cities and provinces of Vietnam and reaching out to other countries in Asean, Gemadept has been ranked among Vietnam s Top 500 largest enterprises for many consecutive years and honored in Top 1000 enterprises having the largest contribution of corporate income tax to national budget, Top 20 Logistics Enterprises in Vietnam, Top 50 Best Vietnamese Listed Companies by Forbes, etc. In 2017 and subsequent years, Gemadept continues to maintain its leading position, boost core competencies, expand its network, enhance the application of modern technology and improve service quality to optimize business efficiency as well as bring the parties the best values. Besides, the Corporation has always focused on corporate social responsibility through its deep concern about employees living conditions, contribution to the national budget, implementation of social and charity works, environmental issues, energy saving, etc... to contribute to Vietnam s development. 8 Annual Report 2016 Gemadept Corporation 9

6 BUSINESS SCOPES & SERVICES Business Scopes & Services GEMADEPT CORPORATION CORE BUSINESS STRATEGIC INVESTMENT Gemadept focuses on developing core businesses including Port operation and Logistics. With the network of Ports and Logistics centers stretching from North to South, Gemadept offers a wide range of professional services to meet the increasing demands of customers: Port services - Container depot, river port, sea port services. - Lift on - Lift off, tally, forwading, cargo stuffing and unstuffing. - Customs clearance. - Pilotage, tugboat. - Supplying, cleaning, repairing and maintaining containers and vessels. - ICD, bonded and CFS warehouses. - Reefer container services. - Other services. Logistics services PORT OPERATION Nam Hai Port Nam Hai Dinh Vu Port Nam Dinh Vu Port Dung Quat Port Gemadept Logistics SCSC LOGISTICS Mekong Logistics Nam Hai Logistics FORESTRY REAL ESTATE - 3PL services. - Distribution center, bonded warehouse, cold warehouse. - Shipping, river transport, road transport, air transport. - Project cargo transport. - Air-cargo terminal. - Agency and forwarding. - Cold chain services. - Pre Delivery Inspection (PDI). - Other services. Binh Duong Port K Line-Gemadept Logistics Gemalink Port OOCL-Gemadept Logistics Gemadept Hoa Sen Port Potraco Nam Hai ICD Gemadept Shipping Phuoc Long ICD Gemadept Singapore Gemadept Malaysia Gemadept Cambodia 10 Annual Report 2016 Gemadept Corporation 11

7 SIGNIFICANT MILESTONES Company establishment under Vietnam Maritime Bureau Transformation into a joint-stock company with VND 6.2 billion charter capital Establishment of Phuoc Long ICD, the first inland port of Vietnam Implementation of Midstream operation, river way transport Achievement of 2 nd ranking in container handling volume nationwide Obtaining the number of VND 200 billion in charter capital Listing in the stock market. Deployment of container liner transport service. Establishing of 2 overseas subsidiaries in Singapore and Malaysia. Successful share issuance to add charter capital up to VND 475 billion. Purchase of 3 seagoing vessels, launching 4 service lanes, establishment of 3 joint ventures with reliable international partners. Putting into operation 4 important projects: Gemadept Tower, Schenker-Gemadept Logistics and 2 ports in Dung Quat and Hai Phong Accomplishment of a new level of profit; Initiation of Tan Son Nhat Air Cargo Terminal Construction Increasing charter capital reaching the number of VND 1,000 billion; Putting Tan Son Nhat Air Cargo Terminal into operation; Owning 99.98% of proportion of Nam Hai Port Joint-Stock Company Starting rubber plantation project in Cambodia; Putting DC1 in Song Than IZ into operation Official deployment of investment in rubber plantation - Cambodia; Putting Distribution Center No. 1 and No. 2 in Song Than IZ (Binh Duong Province) into operation; Starting construction of Nam Hai Dinh Vu Container Port Increasing charter capital to VND 1,144 billion; Completing construction and putting into operation Nam Hai Dinh Vu Container Port; Transferring 85% of shares in Gemadept Tower; Achieving targets in rubber plantation in terms of new plantation area and infrastructure construction. Increasing charter capital to over VND 1,161 Billion; Grand opening ceremony of Nam Hai Dinh Vu Port; Upgrading the capacity of Gemadept Dung Quat International Port to 70,000DWT; Completing the assignment of 85% capital in Gemadept Tower Increasing charter capital to over VND 1,196 Billion; Putting Distribution Center No. 3 at Song Than, Binh Duong into operation; Starting construction of Logistics & Depot Center in Hai Phong and Hai Duong; Establishing a joint venture with Minh Phu Seafood Corporation; Starting construction of a Cold Warehouse project in Hau Giang Increasing charter capital to over VND 1,794 Billion; Completing and putting into operation 3 key projects: The largest and most modern cold warehouse project in Vietnam - Mekong Logistics; Nam Hai ICD in Hai Phong; Kline Gemadept Logistics Center in Long Hau IZ; Starting construction of Nam Dinh Vu Port in Hai Phong Annual Report 2016 Gemadept Corporation 13

8 SUBSIDIARIES & ASSOCIATES Benefit rate Voting right List of subsidiaries to be consolidated Subsidiaries Address Ending balance Beginning balance Ending balance Beginning balance Subsidiaries Address Benefit rate Ending balance Beginning balance Voting right Ending balance Beginning balance Gemadept Hai Phong Co., Ltd. 6th Floor, Lot 20A, TD Plaza Business Center Building, Le Hong Phong Street, Dong Khe Ward, Ngo Quyen District, Hai Phong City, Vietnam 100% 100% 100% 100% Gemadept Dung Quat International Port J.S.C Port No. 1 - Dung Quat Port, Binh Thuan Commune, Binh Son District, Quang Ngai Province, Vietnam 81,60% 81,60% 81,60% 81,60% Truong Tho Tourism and Transportation J.S.C (i) Quarter 7, Truong Tho Ward, Thu Duc District, Ho Chi Minh City, Vietnam 46% 46% 54% 54% V.N.M General Transportation Service Co., Ltd. No. 6 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Viet Nam 100% 100% 100% 100% Nam Hai Port Corporation No. 201, Ngo Quyen Street, May Chai Ward, Ngo Quyen District, Hai Phong City, Vietnam 99,98% 99,98% 99,98% 99,98% Gemadept (Malaysia) Sdn. Bhd. No.68B, Jalan Batai Laut 4, Taman Intan, Klang, Selangor Darul Ehsan, Malaysia 100% 100% 100% 100% Pacific Marine Co., Ltd. No. 6 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam 100% 100% 100% 100% Gemadept (S) Pte. Ltd 63 Market Street #05-01A, Bank of Singapore Centre, Singapore % 100% 100% 100% Vi Tin Service Computing Co., Ltd. No. 6 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam 100% 100% 100% 100% Grand Pacific Shipping Pte. Ltd. 63 Market Street #05-01A, Bank of Singapore Centre, Singapore % 100% 100% 100% Pacific Rubber Industry Co., Ltd. No. 6 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam 100% 100% 100% 100% Phuoc Long Port Co., Ltd. ISS - Gemadept Co., Ltd. Gemadept Logistics One Member Co., Ltd. No. 6 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam No. 45 Vo Thi Sau Street, Da Kao Ward, District 1, Ho Chi Minh City, Vietnam Lot J1, Road No. 8, Song Than 1 Industrial Park, Di An Ward, Di An Town, Binh Duong Province, Vietnam 100% 100% 100% 100% 51% 51% 51% 51% 100% 100% 100% 100% Pacific Pearl Joint Stock Company Limited Pacific Lotus Joint Stock Company Limited 61 Road No. 468, Toul Tumpoung 2 Ward, Chamkarmon District, Phnom Penh City, Cambodia 18B Road No. 500, Phsar Deum Thkov Ward, Chamkarmon District, Phnom Penh City, Cambodia 100% 100% 100% 100% 100% 100% 100% 100% Lien Uoc Transportation Co., Ltd. No. 2A-4A Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam 51% 51% 51% 51% Pacific Pride JSC 947 Por Prok Khang Tbong Hamlet, Kar Karb Ward, Po Sen Chey District, Phnom Penh City, Cambodia 100% 100% 100% 100% Mekong Investment and Logistics Joint Stock Company Gemadept - Vung Tau Corporation Hoa Sen - Gemadept Logistics and International Port Corporation Gemadept Infrastructures Development and Investment Construction J.S.C Song Hau Industrial Park, Stage 1, Dong Phu Commune, Chau Thanh District, Hau Giang Province No. 1/1A Pham Hong Thai Street, Ward 7, Vung Tau City, Ba Ria - Vung Tau Province, Vietnam Road No. 2B, Phu My I Industrial Park, Phu My Town, Tan Thanh District, Ba Ria-Vung Tau Province, Vietnam No. 147 Nguyen Thai Binh Street, Ward 3, Tan An City, Long An Province, Vietnam 50,96% 50,96% 50,96% 50,96% 70% 70% 70% 70% 51% 51% 51% 51% 50% 50% 50% 50% Nam Hai Dinh Vu Port J.S.C Pacific Marine Equipment and Service Company Limited Nam Hai ICD Joint Stock Company Nam Dinh Vu Port Corporation Km No. 6, Dinh Vu Street, Dong Hai 2 Ward, Hai An District, Hai Phong City, Vietnam No. 6 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam Lot CN3, MP Dinh Vu Industrial Park, Dong Hai 2 Ward, Hai An District, Hai Phong City, Vietnam Km No. 6, Dinh Vu Street, Dong Hai 2 Ward, Hai An District, Hai Phong City, Vietnam 84,66% 84,66% 84,66% 84,66% 100% 100% 100% 100% 65% 65% 65% 65% 60% - 60% - 14 Annual Report 2016 Gemadept Corporation 15

9 (i) The Corporation has controlled Truong Tho Tourism and Transportation J.S.C since it has been given the authority at the Meetings of Shareholders Council to reach the voting right rate of 54% by some shareholders. OOCL Logistics (Vietnam) Co., Ltd. 13th Floor, Saigon Trade Center Building, No. 37 Ton Duc Thang Street, District 1, Ho Chi Minh City, Vietnam 49% 49% 49% 49% List of associates reflected in the Consolidated Interim Financial Statements in accordance with the equity method Golden Globe Co., Ltd. Sibunhuong Village, Chanthabouly District, Vientiane, Laos 40% 40% 40% 40% Benefit rate Voting right K Line - Gemadept Logistics Co., Ltd. No. 6 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam 50% 50% 50% 50% Asociates Golden Globe Trading Co., Ltd. Address No. 117 Le Loi Street, Ben Thanh Ward, District 1, Ho Chi Minh City, Vietnam Ending balance Beginning balance Ending balance Beginning balance 45% 45% 45% 45% (i ) The ownership rate of the Group in Gemadept - Terminal Link Cai Mep Terminal J.S.C is more than 50%. However, according to the Charter of Gemadept - Terminal Link Cai Mep Terminal J.S.C, the Resolutions of its Shareholders Council have to be approved by the shareholders who hold at least 76% of total share capital. Therefore, this investment is presented in the item Investments in joint ventures and associates. Vung Tau Commercial Port J.S.C (VCP) No. 973, 30/4 Street, Ward 11, Vung Tau City, Ba Ria - Vung Tau Province, Vietnam 26,78% 26,78% 26,78% 26,78% Minh Dam Tourism J.S.C Cau Tum, Hai Tan Quarter, Phuoc Hai Town, Dat Do District, Ba Ria-Vung Tau Province, Vietnam 40% 40% 40% 40% Power Transportation and Service J.S.C (Potraco) No. 112 Ngo Quyen Street, May Chai Ward, Ngo Quyen District, Hai Phong City, Vietnam 38,03% 38,03% 38,03% 38,03% Saigon Cargo Service Corporation (SCSC Corp.) No. 30, Phan Thuc Duyen Street, Ward 4, Tan Binh District, Ho Chi Minh City, Vietnam 34.90% 29,82% 34,90% 29,82% United Food J.S.C No. 267 Quang Trung Street, Quang Trung Ward, Ha Dong District, Hanoi City, Vietnam 26,56% 26,56% 26,56% 26,56% Gemadept - Terminal Link Cai Mep Terminal J.S.C (i ) Cai Mep Area, Phuoc Hoa Commune, Tan Thanh District, Ba Ria - Vung Tau Province, Vietnam 65,13% 65,13% 50% 50% 16 Annual Report 2016 Gemadept Corporation 17

10 ORGANIZATION CHART & MANAGEMENT STRUCTURE BOARD OF MANAGEMENT CONTROL BOARD BOARD OF DIRECTORS SHAREHOLDERS' MEETING CONTROL BOARD BOARD OF MANAGEMENT The Board of Management consists of 11 members - The Control Board consists of 5 members and the Board of Directors consists of 5 members BOARD OF MANAGEMENT CONTROL BOARD FUNCTIONAL DEPARTMENTS BOARD OF DIRECTORS SUBSIDIARIES & ASSOCIATES Mr. Do Van Nhan Mr. Chu Duc Khang Mr. Do Van Minh Mr. Pham Hong Hai Ms. Bui Thi Thu Huong Mr. Nguyen Quoc Huy Mr. Phan Thanh Loc Ms. Nguyen Minh Nguyet Mr. Vu Ninh Mr. Pham Tien Tinh Mr. Bolat Duisenov Chairman Vice Chairman Member Member Member Member (Resigned on August 31 st, 2016) Member Member Member Member Member Mr. Luu Tuong Giai Ms. Vu Thi Hoang Bac Mr. Tran Duc Thuan Ms. Tran Thanh Thuy Ms. Phan Cam Ly Chief Member Member Member (Resigned on August 31 st, 2016) Member BOARD OF DIRECTORS Mr. Do Van Minh Mr. Chu Duc Khang Mr. Pham Quoc Long Mr. Nguyen Thanh Binh Mr. Tran Quang Tien General Director Deputy General Director Deputy General Director Deputy General Director Deputy General Director Gemadept Corporation 19

11 INFORMATION ON SHARE CAPITAL AND SHAREHOLDERS As of the list dated May 30th, 2016 I. SHARE CAPITAL AND SHARE HOLDER STRUCTURE: Shareholder structure (*) Seq. Shareholder Number of shares % of share capital Number of shareholders Organizational Private 1 State shareholder ,42% Founding shareholder/ FDI shareholder - 0,00% Local - 0,00% Foreign - 0,00% Major shareholders (owning from 5% of share capital) ,98% Local - 0,00% Foreign ,98% Company labor union - 0,00% Local - 0,00% Foreign - 0,00% Treasury shares - 0,00% (*) Shareholders owning preffered shares (if any) - 0,00% Other shareholders ,60% Local ,50% Foreign ,10% TOTAL: ,00% In which: - Local ,92% Foreign ,08% The State shareholder divested all capital on 16 August Since then, Gemadept has not updated the List of Share Capital and Shareholders yet. PROCESS OF CHARTER CAPITAL INCREASE FROM ESTABLISHMENT II. STRUCTURE OF MAJOR SHAREHOLDERS AND PROFESSIONAL SHARE INVESTORS: Shareholder structure (*) Seq Shareholder Major shareholders (owning from 5% of share capital) who are not professional share investors Number of shares % of share capital Number of shareholders Organizational Private - 0,00% Local - 0,00% Foreign - 0,00% Professional share investors who are major shareholders owning from 5% of share capital ,34% Local ,36% Foreign ,98% Professional share investors who are major shareholders owning less than 5% of share capital. Charter Capital (vnd) ,39% Local ,78% Foreign ,61% TOTAL ,73% Annual Report 2016 Gemadept Corporation 21

12 REPORT OF THE BOARD OF MANAGEMENT 1. Members and Structure of the Board of Management Gemadept s Board of Management for the term was elected by the AGM on May 29th, 2013 with 11 members, including 2 female members, 1 foreigner member; 3 members are individuals or from institutional investors outside of Gemadept. In 2016, there was a change in the number of members of the Board of Management (BOM). In August, 2016, Mr. Nguyen Quoc Huy, a capital representative of SCIC at Gemadept Corporation, submitted his resignation letter. The BOM meeting on September 6th, 2016 approved the resignation letter of Mr. Nguyen Quoc Huy. Thus, by the end of the fiscal year 2016, the BOM of Gemadept Corporation had 10 members. List of BOM members, titles and share ownership are as follows: Seq. BOM Members Title Share ownership Rate 1 Mr. Do Van Nhan Chairman shares 0,74% 2 Mr. Chu Duc Khang Vice chairman shares 0,34% 3 Mr. Do Van Minh Member shares 0,20% 4 Mr. Pham Hong Hai Member shares 0,17% 5 Mr. Vu Ninh Member shares 0,33% 6 Ms. Nguyen Minh Nguyet Member shares 0,26% 7 Ms. Bui Thi Thu Huong Member shares 0,15% Seq. BOM Members Title Commencement date/date of no longer being BOM Member No.of meetings participated Rate 1 Mr. Do Van Nhan Chairman May 29th, % 2 Mr. Chu Duc Khang Vice chairman May 29th, % 3 Mr. Do Van Minh Member May 29th, % 4 Mr. Pham Hong Hai Member May 29th, % 5 Ms. Bui Thi Thu Huong Member May 29th, % Reason for absence 8 Mr. Pham Tien Tinh Member shares 0,33% 9 Mr. Phan Thanh Loc Member 0 shares 0% 6 Mr. Nguyen Quoc Huy Member May 29th, 2013 September 6th, % Resigned on August 31st, Mr. Bolat Duisenov Member 0 shares 0% Notes: Mr. Phan Thanh Loc and Mr. Bolat Duisenov are representatives of organizations, having no private ownership of Gemadept shares. (Please trace the public announcement on Gemadept s Website) 7 Mr. Phan Thanh Loc Member May 29th, % On business trip 8 Ms. Nguyen Minh Nguyet Member May 29th, % 9 Mr. Vu Ninh Member May 29th, % 2. Activities of BOM in 2016: 2.1 BOM meetings: In 2016, the BOM had 11 meetings as regulated at the Corporation s Charter and other meetings in order to instruct, find solutions and counsel on important issues of the Corporation. The number of attending members of the meetings was in line with regulatory ratios at the Company s Charter. 9/11 of the meetings were attended by 100% of the members. Only 2/11 of the meetings had a participation rate of 73% and 91% respectively because 2 members were on business trips. The BOM meetings issued 22 minutes and resolutions on the issues: Loans for business development; 10 Mr. Pham Tien Tinh Member May 29th, % 11 Mr. Bolat Duisenov Member May 29th, % On business trip 22 Annual Report 2016 Gemadept Corporation 23

13 Advance dividend of 2016; Share issuance to increase share capital using company s equity; Liquidation of assets; New establishment and increase of capital contribution in subsidiaries, associates. Details of the dates of meeting, list of attending members, contents and resolutions are in the Report on Company management of 2016 posted on Gemadept s Website at www. gemadept.com.vn. 2.2 Activities of BOM in 2016: In Human resources: Implementing resolutions of the Business Conference 2016, Gemadept Vision 2020, in the last 6 months of 2016, the BOM carried out many important personnel works, met key management positions of major units; gave instruction to promote the search and training of potential staffs at all levels. The BOM also instructed to strengthen risk management, to centralize RM3 division (used to be under major units before), to enhance centralized administration. With the organizational structure approved by the BOM including 1 General Director and 4 Deputy General Directors, the Board of Directors promoted management capacity, effectively executed the Corporation s core businesses covering different regions. The BOM also considered and approved the proposals to appoint representatives for capital contribution of the newly established companies and the directors for the projects. For investment projects: The BOM carefully reviewed the feasibility studies, had assessments, surveys and meetings for making decisions on important investment projects, including: - The construction of Nam Dinh Vu Port - The expansion of Phuoc Long Port and Binh Duong Port - The investment of Nam Hai ICD and Nam Hai Logistics in Hai Phong - The rubber plantation in Cambodia (minimizing the plantation during this period). Regarding financial policy: The BOM approved the loan proposals for business expansion; equipment investment, construction of infrastructure; expansion of Phuoc Long ICD Port in Ho Chi Minh City, deployment of Nam Hai ICD and Logistics project in Hai Phong; expansion of the Air Cargo Terminal (SCSC). Regarding the increase of charter capital: The BOM successfully implemented the resolution of the AGM on share issuance to increase share capital using the Corporation s equity. The distribution of 59,810,287 shares to 5,304 shareholders (on the record date of May 30th, 2016) was completed. After completing the issuance, Gemadept amended its Business Registration Certificate with the new charter capital of VND 1,794,322,810,000. Monitoring the Board of Directors: In order to promptly remove obstacles in production and business, ensure the progress of projects, every month, the BOM had meeting with the Board of Directors. The Chairman and some members of the BOM directly gave their opinions on the works of the Board of Directors; promoted the completion of the Kline Gemadept Logistics Vehicle Processing Center, Mekong Logistics Cold Warehouse in Hau Giang, projects in Hai Phong, especially signed the investment agreement with the People's Committee of Hai Phong City and partners to invest in Nam Dinh Vu Port. Through the report of the functional departments, Risk Management (RM) departments, the BOM had an in-depth supervision of Gemadept s business activities. Business trips and surveys: In 2016, the Chairman and some members of the BOM together with the Board of Directors had trips for inspection of project deployments and market surveys in many areas including: - Q.I/2016: Survey of the Mekong Delta, industrial zones and ports in the Mekong Delta (Can Tho, Hau Giang, Ca Mau, etc.). - Q.II/2016: Business trip to Da Lat for the Corporation s business conference. - QIII & IV/2016: Business trips to Hai Phong, Cambodia, Laos... to sign investment agreements, inspect the implementation of projects, etc. 3. Review by BOM on the Corporation s activities in 2016 In 2016, Gemadept Corporation achieved high business results, exceeding the targets approved by the AGM. In fact, last year, there was tough competition in Hai Phong area, the volume of reefer cargo changed adversely, Vietnam's shipping industry continued to decline seriously. However, Gemadept's core businesses still maintained positive growth. Gemadept s major ports including Nam Hai Port, Nam Hai Dinh Vu Port, Phuoc Long ICD Port, Binh Duong Port and Dung Quat Port successfully outperformed the business plan. Especially, Phuoc Long ICD Port achieved strong growth thanks to being proactive in business and developing new services. Logistics activities: Except shipping activity remained in difficulty and could not achieve the profit plan due to the overall market situation, other units grew well in terms of profit, notably Gemadept Logistics and SCSC. Investment projects in Hai Phong, Hau Giang, Binh Duong and Long An were promptly deployed and completed as scheduled. In November 2016, Mekong Logistics Center started to receive cargo and welcomed the Deputy Prime Minister as well as other authorities to visit. Kline Gemadept Logistics Vehicle Processing Center (phase 1) with PDI function was also completed and received the first car lots. The BOM highly appreciated the flexible, drastic and timely management of the Board of Directors to achieve outstanding business results. The Board of Directors also effectively implemented the BOM s resolutions, 2016 business conference resolutions, management measures, human resource strengthening, well organized the Customer Conference The Corporation was ranked by Forbes as one of the 50 best Vietnamese listed companies. In addition, environmental activities were well implemented; social and charity work were paid attention timely, bringing both material and spiritual values to people in the Central region who suffered from natural disasters in the past years as well as poor people in many regions of the country. 4. BOM s plan and orientation for 2017 To fulfill the responsibilities and rights of the BOM in accordance with the Corporation s charter and management model, in 2017, the BOM will focus on completing the business targets approved by the AGM, deploy key projects on schedule and continue to implement the strategy of 2020 vision with details as follows: 4.1 Perform 2017 business plan Although there are some good signals of the economy and some advantages in the international and regional context, risks from recent policies of the world powers may have direct influence on cargo import and export volume, shipping and domestic production. Gemadept s revenue and profit in 2017 will continue to be a challenge as the shipping market has not recovered yet. In 2016 and at the beginning of 2017, there have been other shipping lines suffering from loss, bankruptcy, merger, restructuring, etc. In order to obtain the two important targets, the BOM will strengthen the instruction and coordination with the Board of Directors to have flexible decisions, and quickly catch up with market fluctuations. 4.2 Implementation of major projects in 2017 At the customer conference in December 2016, Gemadept introduced key projects in its core business. Besides the construction of Logistics Centers, expansion of Binh Duong Port, Phuoc Long ICD Port and of the Air Cargo Terminal (SCSC), etc, there are two other big projects, namely Nam Dinh Vu Port and Gemalink Deep sea Container Port project: - Nam Dinh Port project is a key task in 2017; the Corporation management will focus on direction and resources to put the Port into operation as committed to the Government and Hai Phong City authorities, in line with Gemadept's business strategy. - In February, 2017, the world's largest container ship with the capacity of 194,000 DWT, more than 18,000 TEUs called at Cai Mep area successfully. Currently, there are only 19 ports in the world being capable to accommodate this vessel size. With the most convenient location in Cai Mep area, Gemalink Deep-sea Container Port will be a reliable destination in the routes of mega container vessels. The project will be resumed construction in 2017 and put into operation at an appropriate growth of the market. 4.3 Implementation of the strategy for 2020 Vision 2017 is the second year to implement Gemadept s 5-year-business plan towards 2020 Vision. It plays an important role in achieveing the Corporation s major goals. In order to pursue the set up plan, the BOM will continue with the investments, management, organizational restructuring, key personnel arrangement and other important policies, attracting more excellent staffs and creating motivation for employees to achieve the Corporation s targets. 24 Annual Report 2016 Gemadept Corporation 25

REPORT OF THE CONTROL BOARD The Control Board of Gemadept Corporation in 2016 includes the following members: The 2016 macroeconomy showed certain positive signals; however, the results remained

14 REPORT OF THE CONTROL BOARD The Control Board of Gemadept Corporation in 2016 includes the following members: The 2016 macroeconomy showed certain positive signals; however, the results remained unstable. There was impediment over private sector by state-owned one. In such a situation, Gemadept Corporation made important efforts to achieve encouraging business results through enhancing risk management, cost saving, and service expansion for the sake of sustainable development. ACTIVITIES OF THE CONTROL BOARD Seq. Name Title 1 Mr. Luu Tuong Giai Chief 2 Ms. Vu Thi Hoang Bac Member 3 Ms. Tran Thanh Thuy 4 Mr. Tran Đuc Thuan Member 5 Ms. Phan Cam Ly Member Member (Resigned on August 31 st, 2016) The Control Board consists of five (05) members elected by the AGM to implement the supervision in accordance with the laws and the Corporation s charter. However, in August 2016, one member of the Control Board resigned in line with the regulations. In 2016, the Control Board, under close coordination with the BOM and the Board of Directors, monitored and supervised the Corporation s activities as well as raised recommendations to enhance the risk management and improve the Corporation management in general. Meetings of the Control Board: In 2016, the Control Board had 4 meetings with details as follows: Meeting No. of attendants Main contents April 14 th, /5 Assessment of the implementation of business plans and investment plans issued by the BOM and the Board of Directors. Verification of the Corporation's 2015 financial statements. Assessment of the Corporation s compliance with laws and charter in Approvement of the Control Board s action plan in June 28 th, 2016 September 8 th, /5 4/4 Discussion on the effective internal control system to reduce costs and ensure service quality. Verification of quarterly financial statements. Consideration of cost-cutting solutions. The Control Board approved the resignation letter of Ms. Tran Thanh Thuy - the Control Board member and re-assigned duties of each member of the Control Board. Verification of quarterly financial statements, business performance of each quarter and the first half of Suggestion of solutions to accelerate overdue debt collection. December 8 th,2016 4/4 Assessment of the implementation of the Corporation's financial plan for Verification of financial statements for the first 9 months of Revision of the implementation of the projects in Assessment of the Corporation s compliance with laws and the charter in Annual Report 2016 Gemadept Corporation 27

REPORT ON THE TASKS DONE BY THE CONTROL BOARD: Monitoring performance: In 2016, the Control Board performed the following tasks: - Reviewing and evaluating the performance of the BOM on

15 REPORT ON THE TASKS DONE BY THE CONTROL BOARD: Monitoring performance: In 2016, the Control Board performed the following tasks: - Reviewing and evaluating the performance of the BOM on implementation of the financial plan and activities of 2016 as approved by the AGM; monitoring the compliance with the law and charter. + Profit distribution and allocation for funds in 2015: Carried out the allocation for funds for the Board of Management, bonus and welfare, develoment investment, provision for charter capital supplementation; completed the dividend payment. + Business results of 2016: Although the economy was difficult in 2016, Gemadept still exceeded 1.1% in terms of revenue target and 12% in terms of pre-tax profit target. Monitoring Company s financial situation in 2016: The Control Board periodically reviewed the implementation of the Corporation s business plan, regulations, the financial statements and the business performance of each quarter as well as the whole year; the Board examined, controled business activities, investment situation and cost saving to raise opinions on operational risks and assessed operational procedures and regulation compliance of all divisions, organized operational inspection of subsidiaries in coordination with Finance, Accounting and Risk Management departments; the Board attended monthly meetings of various units to capture the operation, business results as well as production plans of the units to contribute ideas during the meetings for business development of the whole Corporation and its subsidiaries. The Control Board agreed with the 2016 Financial Statements which were audited by the Auditing and Consulting Co., Ltd. (A&C). - The Corporation s indicators of business results, payment capability and financial structure are at high level. - The Profit performance exceeded the target as approved by the 2016 AGM. Monitoring business activities in 2016: - The Board measured, assessed the risks and proposed recommendations to overcome and strengthen the monitoring of incomings. - The Board also appraised the Corporation s compliance with the laws and the charter and confirms that all divisions of the Corporation fully complied with the laws and internal procedures of operation. Monitoring management activities: In 2016, the BOM held meetings, deployed and strictly implemented the resolutions of the AGM. BOM meetings made proper decisions ensuring effective business operations of the Corporation. The Board members, according to their assignments, had careful consideration to advise the BOM of proper measures to achieve and exceed the targeted profit as registered with the AGM. The Board of Directors strictly complied with the decisions of the AGM and resolutions of the BOM enabling the Corporation to achieve remarkable results against difficult market conditions. The public announcement of information and management reports were done in line with legal regulations. In the year, the Control Board did not record any unusual things in the operations of the BOM and the Board of Directors as well as managers of the Corporation at all units. Plan for activities of the control board in 2017: In 2017, the Control Board will continue to improve working procedures, coordinate with the Risk Management Division to enhance risk management. The members of the Control Board, according to their assignments, will directly monitor and evaluate the relevant units to ensure improvement in management capability and in the ability to build up and seize opportunities for sustainable development in the coming time. The Control Board will accompany the units in the effort to accomplish strategic targets of the Corporation. We would like to express our deepest thanks to Shareholders for your trust and valuable support to the Control Board. Ho Chi Minh City, February 10 th, 2017 ON BEHALF OF THE CONTROL BOARD CHIEF OF THE CONTROL BOARD Luu Tuong Giai 28 Annual Report 2016 Gemadept Corporation 29

16 Unit: Billion VND Business results 2016 Performance 2016 Target 2016 % of completion Revenue % Profit before tax % The actual Profit before tax in 2016 reached 112% Ratio of Profit before tax/revenue 12,8% 11,6% 110% Compared with 2015 performance: Business results 2015 Performance 2016 Performance Unit: Billion VND % increase/ descrease Revenue % REPORT OF THE BOARD OF DIRECTORS I. ASSESSMENT OF BUSINESS PERFORMANCE: a. Assessment of 2016 business results: In 2016, Gemadept continued to focus all efforts to develop its core business including Port Operations and Logistics. This was also Gemadept s strategy throughout in 5-year plan for period The highlights in Gemadept s business results in 2016 were the growth in scale and efficiency of Logistics activities in both the North and South with the extremely dynamic market context. Efforts of service expansion and customer development, extending warehouse operation, investing in more transport fleet, improving operational processes, saving costs, enhancing the human resources quality and developing new services were the main factors contributing to the success of Gemadept's Logictics last year. In term of Port Operation, Gemadept's Northern port network continued to improve the quality of customer service more and more professionally and conscientiously, put Nam Hai ICD into operation to expand hinterland of the port system in Hai Phong, contributing to enhance the quality and ability to serve customers. Northern port units continuously had an important contribution to Gemadept's revenue and profit in the context of fierce competition in service prices between port operators in the region. Gemadept's ports and ICD in the Central and South of Vietnam also had a successful year. These ports were always actively seeking solutions to improve service quality such as improving work procedures, online bidding, good cost management... and obtained good business results thanks to market growth in volume, especially Cai Mep area. These ports continued to invest in expanding its operational area, develop new customers, maintain the good support of existing customers and meet the everincreasing requirements of shipping lines. In 2016, there were still many difficulties in the shipping market. The big shipping lines in the world seriously suffered from loss and bankruptcy. Domestic shipping companies have been confronted with many challenges and Gemadept Shipping has also faced with fierce competition, deeply declining freight, rising fuel prices, tonnage oversupply situation on domestic routes, etc. In such a situation, with the highest effort and perseverance, Gemadept Shipping consistently improved service quality, maintained a high utilization ratio compared to the average market and had a certain contribution to Gemadept s overall business performance. In 2016, with the proper orientation of the Board of Management combined with the determination of all staffs, Gemadept successfully accomplished and exceeded the business targets assigned by the AGM, detailed as follows: Profit before tax % Ratio of Profit before tax/revenue 14,1% 12,8% 91% The actual Profit before tax in 2016 reached 112% compared to the year target, but was 5% down compared to that of 2015 due to the unfavorable shipping market with lower cargo volume compared to 2015, the declining freight, increasing fuel prices, etc These were unprejudiced developments of the market that Gemadept already defined since the beginning of the year. Therefore, the Corporation actively improved service quality, strived to widen customer list, market share and invested in projects for development to fullfil 2016 business targets as assigned by the AGM while creating growth momentum business for the subsequent years. b. Remarkable changes and fluctuations in business strategy and market situation: In 2016, despite the major events affected the global economy and politics, Vietnam's economy still showed many encouraging signals such as: Economic growth reached 6.2%; Total FDI investment increased 9%; Total export turnover rose more than 8%; Total retail sales of consumer goods and services increased 10.2%; Inflation was controlled at 4.74%. Moreover, with Government s determination to change economic institution and improve the business environment, the transition from the administrative management mechanism to the model that State plays the role of creating favorable conditions and supporting enterprises, Vietnam's business environment has improved markedly, which was ranked 82 th over 190 economies, increasing 9 spots compared to according to the World Bank. Also according to the World Bank, Vietnam's Logistics industry already passed the early stage of development. Currently, according to the Logistics Performance Index (LPI) ranked by the World Bank, Vietnam is not ranking 64 th over 160 countries in terms of logistics growth and 4th in ASEAN after Singapore, Malaysia and Thailand. With an annual growth rate of 16 to 20%, this is one of the most sustainably growing industries in Vietnam in recent years. Besides the positive signals of the economy in 2016, market conditions were still volatile and difficult. The nascent stage of Vietnam s logistics industry and its attractiveness created a tough competition in the industry. There have been many M&A deals in shipping industry; new shipping alliances have emerged with the trend of increasing vessel sizes pushing up the demand for deep-sea ports more than ever before. Standing firmly in market changes, quickly taking advantage of opportunities, being consistent with the strategy to focus on core businesses, in 2016, Gemadept achieved positive results with impressive growth not only in the scale but also in the quality and scope of services provided, gradually affirming the role and position of a Vietnam s leading Port and Logistics operator. 30 Annual Report 2016 Gemadept Corporation 31

17 c. Analysis of Revenue, Profit, Costs, Market: Gross revenue and profit Unit: Billion VND Costs Unit: Billion VND Items Year 2014 Year 2015 Year 2016 Business sector Year 2014 Year 2015 Year 2016 Giá trị % Giá trị % Giá trị % Net sales Cost of goods sold Port operation ,4% ,4% ,4% Logistics ,2% ,6% ,6% Office leasing 41 1,4% 1,5 0,04% 1,2 0,03% Selling expenses General and administration expenses Loan interest expenses Total revenue ,0% ,0% ,0% Financial expenses excluding loan interest expenses Ratio to net sales BREAKDOWN OF REVENUE 2016 BREAKDOWN OF GROSS PROFIT 2016 Net sales 100,0% 100,0% 100,0% Cost of goods sold 79,3% 73,6% 72,8% Selling expenses 1,1% 1,2% 1,7% 43% 57% 68% 32% General and administration expenses 9,3% 7,3% 7,9% Loan interest expenses 3,7% 3,3% 3,2% Financial expenses excluding loan interest expenses 4,6% 3,5% 0,8% Port operation Logistics The Corporation s net revenue in 2016 reached VND billion, increasing 4% over that of Port operation and Logistics respectively contributed 43% and 57%. to the overall revenue. Gemadept s gross profit in 2016 was VND billion, up 8% compared to The proportion of Port operation is 68% and Logsistics is 32%. Revenue of Port operation achieved VND billion, slightly desceasing 4% against of Gross profit was VND 688 billion, declining 2% over the previous year, but the port throughput continued to grow over the same period. Revenue of Logistics reached VND billion, rising 12% compared to 2015; Gross profit was VND 329 billion with 37% growth against that of Port operation Logistics Gross profit margin was steadily increasing every year; in 2016, it was 16% increasing 3% over that of The business results of Logistics gained a good growth because Gemadept focused on developing and promoting Contract Logistics, providing customers with service expansion both in depth and in width, good cost control and further enhancing professionalism in operation as well as service quality. The COGS to net sales ratio decreased gradually year by year; in 2016 the proportion was 72.8% slightly down 0.8% compared to 2015 and the gross profit margin increased over the years. Selling expenses to net sales ratio increased slightly in line with the trend to support revenue growth in the more competitive business environment. General and administration expenses to net sales ratio in 2016 was 7.9% rising 0.7% compared to 2015 mainly due to increased expenses to expand business activities and to boost sales growth. Loan interest expenses to net sales ratio tended to decrease over the years; in 2016, the ratio was 3.2% slightly lower than that of 2015, mainly because Gemadept always managed cost effectively and negotiated for the best loan interest rates compared to the market. The Corporation has been evaluated with a good credit rating by credit institutions. The financial expenses not including loan interest expenses to net sales ratio in 2016 was 0.8% down 2.7% compared to 2015 mainly due to the reduction of losses arising from foreign exchange differences. d. Analysis of 2016 performance versus projection and that of 2015: In 2016, Gemadept achieved positive business growth, details as follows: In Revenue: The overall net revenue was VND billion, increased 4% over that of 2015 and completed the target thanks to good growth of Contract Logistics operation. Port operation gained throughput increase, but its revenue did not increase compared to 2015 due to the drop of service prices in the toughly competitive market. In Profit: The Corporation s Profit before tax was VND 481 billion, 5% lower than that of 2015 and exeeded 12% over 2016 projection quota. The increased profit before tax over the target was the result from the gross profit increase of core businesses and the investments in associates and joint ventures grew well while the costs only had a slight rise and financial expenses significantly decreased over the same period. 32 Annual Report 2016 Gemadept Corporation 33

Quota Unit 2016 target (1) 2016 performance (2) 2015 performance (3) (2)/(3) (2)/(1) Revenue Billion VND 3.700 3.742 3.

18 Quota Unit 2016 target (1) 2016 performance (2) 2015 performance (3) (2)/(3) (2)/(1) Revenue Billion VND % 101% Profit before tax Billion VND % 112% Ratio of Profit before tax/revenue % 12% 13% 14% Target Performance 2016 Performance Gemadept s advantages, to focus on production and business expansion. Gemadept continued to restructure following the orientation of concentrating on developing core businesses; well managed and promoted Port operation and Logistics. Built up and developed the source of key staffs, potential staffs; Studied appropriate welfare and insurance policies to attract and retain skillful and enthusiastic personnel contributing to the overall development of Gemadept. Gemadept's management principle is to enhance benefits for the country, shareholders, society and the Corporation itself. Revenue (Billion VND) Profit before tax (Billion VND) f. Update on assets investment projects: e. Innovations in organization structure and management policy: Gemadept always determines that human resource is the key factor determining the Corporation s development and success. Therefore, Gemadept unceasingly researched and improved organizational structure and management policy in order to achieve optimal efficiency. Below is the list of changes related to organizational structure and management policy in 2016: Organization structure: Established Nam Dinh Vu Company in September 2016; set up a project management team, centralized management team and highly skilled personnel to carry out and put the project into operation as scheduled; Operated Nam Dinh Vu Port in Hai Phong according to Gemadept s port development strategy in the North. Close of Molenbergnatie-Gemadept Vietnam Co., Ltd which was a foreign invested enterprise with 49% of chartered capital contributed by Gemadept; The Corporation actively developed the bonded warehouse sector in line with its logistics development strategy. Increased the charter capital of Phuoc Long Port Company (100% owned by Gemadept Corporation) from VND 100 billion to VND 200 billion to promote investment and operation of ports and ICDs in the South. Management policy: Continued to develop information technology application in production and business activities: deploying Oralce Business Intelligence application to timely capture and analyze business performances through the system of quick reports integrated with the modules of finance, procurement, material management, etc. Deployed centralized management of support functions such as finance, human resource - salary, risk management, procurement, legal, etc., to integrate and promote strength to gain high efficiency in line with Gemadept s development orientation and support the units, thanks to Seq. Project Disbursement Total investment % Performance 1 Nam Hai ICD project % 2 Mekong Logistics project - Phase % 3 K Line-Gemadept Logistics Vehicle Processing Logistics Center % 4 Nam Dinh Vu Port project - Phase % 5 In 2016, Gemadept released investment capital for the following projects: Invested 01 more QC crane for Nam Hai Dinh Vu Port Unit: VND Billion % 6 Invested 01 more Liebherr crane for Nam Hai Port % 7 Invested in additional truck heads and trailers % 8 Invested in additional forklifts % Total % 34 Annual Report 2016 Gemadept Corporation 35

19 g. Gemadept s key projects implemented in 2016: 1. Mekong Logistics project: Location: Hau River Industrial Park, Phu Hung Hamlet, Dong Phu Commune, Chau Thanh District, Hau Giang Province. Project size: 150,651 sqm area. Berth length: 275m. Cold warehouse area: 4.8 ha, Capacity: 50,000 pallets. Outstanding characteristics: The cold warehouse has been invested with advanced technology and designed by optimal solutions, less energy consumption and meeting the strictest requirements of storing frozen seafood as well as offering the biggest storage capacity in the Mekong Delta. The introduction of the project will timely meet the very high logistics demand in the area for such cargo as FMCG, agricultural and aquatic products, etc. The project is conveniently linked with inland and water way network. Especially, the project of dredging the channel for high tonnage vessels calling at the port cluster on Hau River was technically tested and completed in the beginning of The project deployment will help local cargo being directly exported to big ports in the world via big vessels of up to 20,000 DWT. Operation commencement: Phase 1 of the project was officially put into operation from October 15 th, The next phases will be considered based on market demand. 2. K Line Gemadept Logistics Vehicle Processing Center Location: Long Hau IZ, Long An Province Outstanding characteristics: The project has favorable geographic location, being situated in Dinh Vu MP IZ, which has the direct link with all main roads and close to the port cluster in the area. Moreover, the project is planned to develop into the biggest depot in the area to motivate the development of Port operation and Logistics of Haiphong City in particular and Northern Region in general. On October 15 th, 2016, the project was licensed to operate with full functions of an ICD. Nam Hai ICD officially became the largest ICD in Hai Phong area. Operation commencement: The project was put into operation by the middle of Nam Dinh Vu Container Port Location: Lot CA1, Nam Dinh Vu Non-tariff and Industrial Zone, Hai Phong City. Project size: Total area of over 66ha, which will be a port complex of 6-7 berths with total berth length of 1.5km, accommodating vessels of up to 30,000 DWT. Phase 1 of the project has the area of 20ha with the estimated investment capital of VND 1,700 Billion and the capacity of 600,000 Teus/year. Outstanding characteristics: The project is in the Government s master plan for port development with its prime location at the gateway closest to the open sea than other ports in the region, deep draft and large turning basin accommodating vessels of up to 30,000-40,000 DWT. Nam Dinh Vu Port project will connect trading between not only Hai Phong city but also the whole Northern economic zone with the world in the future. Corporation and increased its capital contribution in its joint venture - K"Line - Gemadept Logistics Co., Ltd. - all of them belong to the core businesses of Gemadept. Total invesment in associates by the end of 2016 was VND 2,175 billion, increasing VND 289 billion compared to the same period. The profit from associates in proportion to Gemadept s ownership in its associates in 2016 was VND 50.7 billion, rising 38% equivalent to increasing VND 14 billion against that of The good growth in profit from associates was mainly thanks to higher contribution from associates under core businesses of Gemadept including SCSC (Gemadept has 34.9% ownership) and K line Gemadept Logistics Co., Ltd (Gemadept has 50% ownership). i. Future development plan: To well implement the Vision and Mission entrusted by the BOM, the Board of Directors determined the direction for action in the new period as follows: Action plan for : In business operation: Accelerating the growth in the Corporation s core businesses towards strong investment both in width and depth, developing new services, new markets and divesting its noncore businesses. In governance: Restructuring of the affiliates under the Corporation s core businesses and the strategic invesments; continuing to promote the centralized management of functional departments. II. FINANCIAL ALALYSIS: a. Financial status In human resources: Developing high quality human resources, meeting Gemadept s project development; standardizing professional skills and foreign language skill of all staffs; linking income with the KPIs, discipline and responsibility. In technology: Online application on an integrated system. In financial resources: Integrating and optimizing assets. Geographic business orientation: In the North: - Efficiently operating Nam Hai Port and Nam Hai Dinh Vu Port. - Putting Nam Dinh Vu Port into operation as scheduled. - Effectively operating Nam Hai ICD. - Extending backyard, pushing up volume and market share. - Strengthening Logistics activitites. - M&A other ports/depot in favorable regions. In the Central: - Effectively operating Gemadept Dung Quat Port. - Aiming at FDI projects in the region. - Strengthening Logistics services connection. - Increasing investment in Port facilities, expanding network and services. In the South & Mekong Delta: - Efficiently operating Phuoc Long Port, Binh Duong Port and Mekong Logistics project. - Resuming Gemalink Port project. - Strengthening Logistics services connection. - Investing in new ICDs/river ports. - Increasing investment in facilities, transport equipments. Total area: 20,000 sqm Outstanding characteristics: This is the 1 st Auto-Logistics model being first time launched in Vietnam, providing customers, cardealers and manufacturers necessary services for auto industry. The project is adjacent to port area, which is very convenient for import-export activities. Operation commencement: The project was launched by the end of October Nam Hai ICD: Location: Lot CN3, Dinh Vu MP IZ, Dong Hai 2 Ward, Hai An District, Hai Phong City. Project size: 217,332 sqm area Nam Dinh Vu Port is expected to create another remarkable milestone and new era for Gemadept, further fostering its position as one of the leading Port and Logistics developers and operators of Vietnam. Operation commencement: The project was started construction on November 9 th, 2016 and is being prioritized to accelerate the progress so that it will be completed and put into operation right by the end of h. Evaluation of performance of subsidiaries and affiliates: In 2016, Gemadept invested in its subsidiary - Nam Dinh Vu Port Joint Stock Company, further invested in its associate - Saigon Cargo Service Gemadept s financial indicators in 2016 were quite good with total assets increasing 12%; Revenue increased 4% over the previous year, fulfilling the revenue target; Profit before tax decreased 5% compared to 2015 but exceeded 12% of 2016 profit target assigned by the AGM. Indicators 2016 Target (1) 2016 Performance (2) 2015 Performance (3) Total assets % % (2)/(3) %(2)/(1) Net sales % 101% Net operating profit % Other income (116) 15 Profit before tax % 112% Profit after tax % Dividend payout ratio 20% 36 Annual Report 2016 Gemadept Corporation 37

20 Performance of the core businesses: The revenue increased steadily from 2012 to 2016 with the CAGR of 10%; with Gemadept s business objectives of increasing professionalism, better cost control, the gross profit had a CAGR of 22%. In 2016, gross profit reached VND 1,018 billion, rising 8% over that of 2015 thanks to its core business including Port Operations and Logistics. INDICATORS CAGR Sales % Net Sales % Cost Of Goods Sold % Gross Profit ,018 22% ,583 2,528 3,017 3,594 3,744 (BilVND) ,018 (BilVND) SALARY, BONUS, REMUNERATION AND BENEFITS OF MEMBERS OF KEY MANAGEMENT Remuneration policy: The salary department surveys, reviews and recommends to the BOM suitable and competitive remuneration policy. The determination of remuneration for each key management member is approved through a transparent process; none of the member is free to decide his/her salary/ remuneration. Salary & remuneration level and structure: The remuneration and salary levels must be Seq. Full name Position Salary Bonus Remuneration BOARD OF MANAGEMENT appropriate to attract, retain and encourage members of key management for successful corporate administration. Part of the salary will be based on the Corporation s business results and each individual s performance. On determining remuneration and salary levels, the Corporation has always considered factors on salary and employment in the industry, compared to other companies in similar size and scopes of operation and based on the Company s business results as well as each individual s performance. Remuneration and benefits of Board of Management, Control Board and Board of Directors: 1 Mr. Do Van Nhan Chairman 76% 18% 6% 100% 2 Mr. Chu Duc Khang Vice Chairman 75% 18% 7% 100% Total Revenue 10% CAGR 22% b. Basic financial indicators CAGR Gross Profit 3 Mr. Do Van Minh Member 76% 18% 6% 100% 4 Mr. Nguyen Quoc Huy Non-executive Member (Resigned on August 31 st, 2016) 100% 100% 5 Mr. Pham Hong Hai Member 68% 17% 15% 100% 1. Liquidity ratios Year 2015 Year 2016 Current ratio 1,61 0,72 Quick ratio 1,55 0,69 2. Debt ratios Year 2015 Year 2016 Debt / Total Assets 38% 42% Debt / Equity 62% 72% 3. Efficiency indicators Year 2015 Year 2016 Inventory turnover 26,6 28,0 Asset turnover 0,40 0,37 4. Profitability ratios Year 2015 Year 2016 Return on sales (ROS) 12,8% 11,9% Return on assets (ROA) 5,4% 4,6% Return on equity (ROE) 8,5% 7,8% Profit from operations / Net sales 14% 16% 6 Mr. Vu Ninh Member 68% 18% 14% 100% 7 Ms. Nguyen Minh Nguyet Member 70% 18% 12% 100% 8 Ms. Bui Thi Thu Huong Member 70% 18% 12% 100% 9 Mr. Pham Tien Tinh Non-executive Member 100% 100% 10 Mr. Phan Thanh Loc Non-executive Member 100% 100% 11 Mr. Bolat Duisenov Non-executive Member 100% 100% CONTROL BOARD 1 Mr. Luu Tuong Giai Chief 100% 100% 2 Ms. Vu Thi Hoang Bac Member 70% 19% 11% 100% 3 Mr. Tran Duc Thuan Member 68% 19% 13% 100% 38 Annual Report 2016 Gemadept Corporation 39

4 Ms. Tran Thanh Thuy Member (Resigned on August 31 st, 2016) 100% 100% 5 Ms. Phan Cam Ly Member 100% 100% BOARD OF DIRECTORS 1 Mr. Do Van Minh General Director (As above) 2 Mr.

Nguyen Thanh Binh Deputy General Director 80% 20% 100% REPORT ON RISK MANAGEMENT Since the Regulation on risk management was issued in 2010, Gemadept s risk management system has experienced 7 years

Up to now, risk management has become an important and integral part of the Corporation s overall management system with the participation of all levels from its managers to employees.

21 4 Ms. Tran Thanh Thuy Member (Resigned on August 31 st, 2016) 100% 100% 5 Ms. Phan Cam Ly Member 100% 100% BOARD OF DIRECTORS 1 Mr. Do Van Minh General Director (As above) 2 Mr. Chu Đuc Khang Deputy General Director (As above) 3 Mr. Tran Quang Tien Deputy General Director 80% 20% 100% 4 Mr. Pham Quoc Long Deputy General Director 80% 20% 100% 5 Mr. Nguyen Thanh Binh Deputy General Director 80% 20% 100% REPORT ON RISK MANAGEMENT Since the Regulation on risk management was issued in 2010, Gemadept s risk management system has experienced 7 years of operation and development. Up to now, risk management has become an important and integral part of the Corporation s overall management system with the participation of all levels from its managers to employees. Besides, the Risk Management Division assists the units in examining and supervision to ensure that the operational mechanism of the risk management system is operated in the most effective manner. STOCK TRADING OF INTERNAL SHAREHOLDERS Seq. Transactor 1 Mr. Pham Hong Hai 2 Mr. Luu Tuong Giai 3 Mr. Chu Duc Khang 4 Mr. Pham Quoc Long Relation with internal shareholders Member of the Board of Management Number of shares owned in the beginning period Number of shares Rate Number of shares owned in the ending period Number of shares Rate ,18% ,17% Reason for increase or decrease (purchase, sale, conversion, bonus...) Sell and receive additional shares from share insurance Sell and receive Chief of the Control Board ,09% ,06% additional shares from share insurance Vice Chairman Deputy General Director ,37% ,34% ,13% ,11% Sell and receive additional shares from share insurance Sell and receive additional shares from share insurance I. RISK MANAGEMENT PROCEDURE: - The risk management procedure is established with the following objectives: Set up a monitoring and management mechanism with clear regulations, not only by trust. Minimize inherent business risks (including unintentional errors leading to loss/damage, internal frauds; risks that delay goal achievement, increase costs and reduce service quality, etc.). Protect property from damage, loss, wastage, fraud, theft Ensure that all members comply with the Corporation s regulations and the laws. Ensure the optimal resource utilization and achieve the Corporation s targets. Protect the interests and build up trust of investors, shareholders and other stakeholders. - Steps to implement risk management according to the process: Step 1: Identify the risks based on unit objectives, risk description and classification Step 2: Assess and rank the risks Step 3: Prepare responding plans Step 4: Monitor and evaluate the performance, outcome Step 5: Prepare reports on inspection results, reviews and recommendations for risk prevention measures Step 6: Review the implementation, the rectification and process improvement of the unit 40 Annual Report 2016 Gemadept Corporation 41

II- REPORT ON RISK MANAGEMENT ACTIVITIES IMPLEMENTED IN 2016 AND EVALUATING THE PERFORMANCE: In the difficult situation of domestic and global economy in 2016, with highest effort and determination,

In order to achieve such accomplishment, proactive prevention and control of business risks that may affect the Corporation's development objectives play a very important role.

Based on which, each unit, with its own objectives and specific plans for the operation, will add a list of risks at the unit.

22 II- REPORT ON RISK MANAGEMENT ACTIVITIES IMPLEMENTED IN 2016 AND EVALUATING THE PERFORMANCE: In the difficult situation of domestic and global economy in 2016, with highest effort and determination, Gemadept Corporation achieved encouraging results. In order to achieve such accomplishment, proactive prevention and control of business risks that may affect the Corporation's development objectives play a very important role. Therefore, from the beginning of 2016, the Corporation identified the list of significant risks. Based on which, each unit, with its own objectives and specific plans for the operation, will add a list of risks at the unit. For example, for Ports, the risks are the operational risks, navigational safety, policy changes, etc.; for Logistics, risks in offering new services, tough competition, labor safety, property, etc. The Corporation implemented risk management measures right at the time of setting up business plan and periodically throughout the year including: - Review annual projection plan of each unit; - Closely follow up the cost cutting at all units every month; - Coordinate with each unit in analysing effectiveness as well as assessing risk levels of each project to select appropriate and effective projects; - Review and monitor the operational results of each unit; warn about the factors affecting the ability to achieve targets; - Revise, supplement, modify and improve procedures and regulations; - Continue to maintain and develop the system management tools: Oracle's ERP software, Warehouse Management Software (WMS), Transport Management Software (TMS), etc; - Strengthen internal monitoring of each unit to be effective in risk management of the whole Corporation. Thus, risk management in 2016 successfully implemented the tasks set out as follows: - Control the implementation of strategic objectives for the period of ; - Monitor the implementation of business plan for 2016; - Identify a list of key risks for prevention and response planning; - Review, supplement and revise policies, procedures and regulations in line with 2016 business plan; - Prepare and implement inspection plans, internal control, process compliance; - Monitor and evaluate the implementation; - Summarize assessment report on risk management and control system. In general, in 2015, the entire Corporation had no serious incidents that affecting general operation. All units fully grasped the importance of risk management, thereby effectively formulated management and risk control systems to maintain efficient, safe and stable operation; ensuring credible, reasonable, adequate and timely management information system; ensuring the compliance with laws and regulations, procedures, internal regulations and most importantly ensuring the fulfillment of the Corporation s targets in III. RISK MANAGEMENT PLAN IN 2017: 2017 is forecast to be a year of further difficulties and challenges as the world economy experiences complicated movements and the global financial market has not flourished yet. In Vietnam, if the fiscal and structural reforms are late implemented, there will be a slowdown in growth rate. However, enterprises still expect Vietnam's economy to prosper with the Government's efforts in the process of economic restructuring and more liberal institutional reforms, improving national competitiveness and increasing investment attractiveness. Evaluating that the risk of abnormal developments can adversely affect the domestic economic prospects in general and each enterprise in particular, Gemadept determines that risk management always plays an important role in the Corporation's governance system. Gemadept's risk management in 2017 will be focused on the following key groups: RISK CLASSIFICATION PREVENTIVE MEASURES 1- STRATEGIC RISK Risk of project failure - Update the overall development strategy of the Corporation, define the unit position within the Corporation to have the policies for priority, investment, development orientation accordingly; - Study market movements, macro-policies, long-term and short-term changing trends, etc... to update the long-term and short-term development strategies annually; - Grasp and study thoroughly about competitors in the same industry, seek for the Corporation s own way of development; - Develop different plans according to the change of market situation and macropolicies to be ready to respond. 42 Annual Report 2016 Gemadept Corporation 43

23 Lossing customers Market change - Maintain good relationships and regular contact with customers to promptly update for customer s changes and needs; - Consider the market price to make the appropriate adjustment (increase/decrease) in each period; - Constinuously improve processes and provide best solutions meeting customers needs; - Analyze and assess the cause of losing customers (if any) to learn from the experience in maintaining existing and potential customers. - Timely update new trends, market situation, customer demand, technological process, etc; - Build up the organizational structure to respond to specific changes in the Corporation's activities. 4- OPERATIONAL RISKS Affected by suppliers - Extend vendor list, limit dependent risks; - Periodically evaluate suppliers capability and service quality to have appropriate policies for purchasing goods/services; - The units coordinate with the Legal Department to review the terms of the contract to minimize risks arising during the purchase/delivery process. Changes in regulations and policies from State authorities - Timely update and disseminate regulations and policies of the State authorities; - Attend training courses on Laws, Agreements, etc; - Understand and flexibly comply with regulations and policies, proactively balance and adjust the units policies. Processes are not tight, not updated and not timely adjusted - Review, develop, update and improve the operational management processes periodically or when changes arise; - Update external information; refer to processes from outside sources or through training programs. 2- DANGEROUS RISKS Environment (natural disasters, flood, fire, etc.) - Timely update changes in the environment, climate and weather to set up the response plans; - Regularly and irregularly inspect safety equipments, fire protection systems, electrical and water systems; - Regularly and irregularly inspect the observance of the regulations on labor safety and security; - Coordinate with Legal Department to consider purchasing appropriate insurance products. Not fully complying with business processes Production scale expands faster than personnel scale - Have appropriate sanctions for cases of non-compliance with the business processes causing damage to the Corporation; - Enhance professional training for employees; - Raise the responsibility of all levels of management in monitoring, complying with the processes. - Build up the adjacent staffs, potential staffs to be ready to support when the Corporation expands its businesses; - Always balance the scale of business with appropriate resources to ensure the sustainable development and service quality. Asset management and operation 3- FINANCIAL RISKS Changes in exchange rates, interest rates, payment regulations in foreign currency, fiscal and accounting policies, taxes, etc. - Make records of handover/receipt/management of property and property records; - Properly implement the maintenance regime as required by manufacturers or processes of units; - Periodically internal traning or training for new staffs on asset management and operation procedures. - Regularly and timely update the State's new policies and regimes; - Make a contingency plan for changes in foreign exchange rates; - Attend training courses on policies and professional competence. In order to ensure that risk management achieves highest efficiency, all individuals/units at all levels of the Corporation must regularly and continuously inspect and self-examine the implementation of relevant internal regulations and processes and take responsibility for their own implementation results before the Corporation and the law. The Risk Management Department will inspect and review all units operations according to the plans or have unannounced inspections depending on the operation of each unit. Inspection reports will be sent to the BOM and the Board of Directors for consideration, early warning, risk prevention or timely implementation of corrective measures. Cash flow and payment capability - Quickly make records of delivery/handover of goods and services to speed up the billing process to collect payments from customers; - Follow up debt collection to promply remind customers of the payment dues; - Set specific regulations with the suppliers on payment terms after receiving full payment documents; - The accounting department plans for appropriate collection and spending to be proactive. 44 Annual Report 2016 Gemadept Corporation 45

REPORT ON INVESTMENT RELATIONS ACTIVITIES In 2016 Gemadept was elected by Fobes VN as one of the best 50 listed enterprises in Vietnam.

Besides the key tasks to develop and expand business, to constantly push up revenues and profits for the benefits of shareholders, investors and concerned parties, Gemadept has TOP 1000 Enterprises

information, creating favorable conditions for shareholders, investors and concerned parties to access updated information of the Corporation.

24 REPORT ON INVESTMENT RELATIONS ACTIVITIES In 2016 Gemadept was elected by Fobes VN as one of the best 50 listed enterprises in Vietnam. This has once again confirmed Gemadept s position both in the market and in the eyes of investors. Besides the key tasks to develop and expand business, to constantly push up revenues and profits for the benefits of shareholders, investors and concerned parties, Gemadept has TOP 1000 Enterprises having the largest contribution of corporate income tax to National Budget (V1000) TOP 50 Best Vietnamese Listed Companies by Forbes always focused on investor relations activities, transparency of information, creating favorable conditions for shareholders, investors and concerned parties to access updated information of the Corporation. In 2016 Gemadept honorably welcomed 150 enterprises, investment funds, organizations, local and foreign individuals to visit the Corporation to seek for business and investment opportunities. Besides, the Corporation organized regular meetings, quarterly and annually discussions for relevant parties to evaluate and update on its business results. The ever increasing amount of investors visiting Gemadept has proved that Gemadept business has been effective and unceasingly developed. Additionally, for those investors who could not attend face to face meetings, the Corporation held teleconferences, online meetings, exchange and arranged its participation in investment conferences, local and international trade forums. Also in the past years, in order to help investors understand well about the Corporation businesses, Gemadept arranged many site visits of ports, distribution centers and air cargo terminal in its network so that investors could witness the Corporation activities. Any of the investors comments, queries and suggestions were fully considered and timely responded. investors. That is the reason why the IR team of Gemadept closely involved in communication activities, assessments and surveys by prestigious independent organizations. Accordingly, Gemadept was recognized by the State as well as other local and international organizations for its achievements in business performance and positive contribution to the society with many honors and awards such as Vietnam s Top 500 largest enterprises, Top 1000 enterprises having the largest contribution of corporate income tax to the national budget, Top 50 best enterprises in Vietnam, etc. Gemadept has been continuously maintaining and strengthening its leading position in the market, deserving to be the credible enterprise in terms of capability as well as business ethics. In the upcoming period Gemadept will reinforce more investor relations activities, contribute to raise the Corporation value meeting the expectation of shareholders, partners and concerned parties. As a public company, information transparency is highly requested and also the most important factor under investors eyes. Hence, Gemadept strictly complies with regulations in information disclosure, updating events and changes through the Corporation website, public media, HOSE and related organizations in order to enable investors quickly accessing, updating on Gemadept business results. Good IR is an effective tool to optimize the enterprise value and acting as a connecting bridge between the Corporation and its shareholders/ 46 Annual Report 2016 Gemadept Corporation 47

25 MAINTAIN AND PROMOTE LEADING POSITION IN PORT OPERATION AND LOGISTICS 48 Annual Report 2016 Gemadept Corporation 49

PHUOC LONG PORT (PIP) NAM HAI PORT In 2016, the cargo source structure of PIP was strongly affected by the merging, separating and restructuring of service lanes among shipping lines.

In terms of business result, last year PIP achieved the volume of 530,000 Teus, increasing 5% over the same period, revenue and profit increased 25% and 45% respectively over that of 2015.

Shipping bankruptcy and merging of China Shipping - Cosco, CMA-APL into consideration.

26 PHUOC LONG PORT (PIP) NAM HAI PORT In 2016, the cargo source structure of PIP was strongly affected by the merging, separating and restructuring of service lanes among shipping lines. However, overcoming those difficulties, the management and staffs of PIP successfully performed its business plan and continued to be one of the outstanding subsidiaries of Gemadept. In terms of business result, last year PIP achieved the volume of 530,000 Teus, increasing 5% over the same period, revenue and profit increased 25% and 45% respectively over that of was a year of much fluctuation for Nam Hai Port when facing strong impacts of the market situation, regional tough competition, merging and separating of global shipping lines, taking Hanjin Shipping bankruptcy and merging of China Shipping - Cosco, CMA-APL into consideration. Besides, tariff declining as a result of fierce competition among ports in the region and the policy of weight control of inland trucking largely affected the port throughput as well as reefer volume which was the most potential to raise revenue for Nam Hai port in recent years is forecast to be a year of continuous difficulty for shipping lines and there should be no clear signal of positve changes. Nam Hai port will endeavor to ensure the quota of revenue, cost and profit as planned and also maintain stable operation, improve staff professionalism and pay much attention to further enhancing service quality. In 2016 PIP received 75 vessels calling at buoy, focusing on effective development of such core businesses as Depot service, stevedoring, inland trucking, river transport, reefer service and transshipment service, etc. PIP together with other subsidiaries contributed to the overall success of Gemadept. Additionally, PIP indirectly contributed its part to the overall development of HCMC by increasing import and export tax revenue for the state budget at the Saigon Port Border Customs Subdepartment Region IV. Achieved the volume of Teus Nam Hai Port made utmost effort in operation, maintained and took good care of existing customers along with service quality improvement. However, under the aforementioned market impacts, the port throughput in 2016 was just 95% against that of 2015, achieving 222,164 Teus. Nam Hai Port performance in 2016, despite being a bit lower than 100% performance, did contribute its part to the high revenue of the Corporation together with those of other subsidiaries in the North. Its achievement in recent years reflected the close guidance of Gemadept Management, the support and collaboration of the Corporation departments, the good management of Haiphong group, especially the strong effort and high determination of all staffs. Promoting the current strengths, Nam Hai Port has deployed various comprehensive solutions in many aspects: - Consistent with the goal to be The most competitive port in Haiphong port cluster - Closely following up market fluctuation, maintaining existing customers and attracting new ones. - Ensuring stevedoring productivity, timely ship dispatching and ship schedule arrangement. Improving service quality, investment and adopting new technological innovation in operation. - Building and maintaining good relation with shipping lines, customers. Receiving cooperation and support from other ports and concerned authorities. - Improving operational capabilities and professionalism of staffs. - Thoroughly saving and managing costs to ensure business efficiency. 50 Annual Report 2016 Gemadept Corporation 51

NAM HAI DINH VU PORT Achieved the volume of 525.000 Teus Also being located in Haiphong port cluster, Nam Hai Dinh Vu port actually shares the same ups and downs of market as Nam Hai Port did.

However, thanks to the support and close management of Gemadept Management together with the determination and effort of all staffs, Nam Hai Dinh Vu Port achieved the encouraging business result with

27 NAM HAI DINH VU PORT Achieved the volume of Teus Also being located in Haiphong port cluster, Nam Hai Dinh Vu port actually shares the same ups and downs of market as Nam Hai Port did. Last year was the 3 rd year of operation of Nam Hai DinhVu Port in such a difficult market situation as said. However, thanks to the support and close management of Gemadept Management together with the determination and effort of all staffs, Nam Hai Dinh Vu Port achieved the encouraging business result with 525,000 Teus throughput exceeding 5% against port design capacity. Besides upgrading stevedoring productivity, minimizing problems in operation, maximizing the utilization of the Corporation assets, Nam Hai Dinh Vu Port strongly brought to customers and partners more added values. Similar to Nam Hai Port, last year Nam Hai Dinh Vu Port was affected by the strong decline of reefer volume in the North and stevedoring tariff fluctuation; the main reason of which was the shipping crisis, low ocean freight and tonnage surplus. In such difficult situation, some small ports deeply reduced port tariff, strongly competed and badly affected the general market. Consequently, the revenue of Nam Hai Dinh Vu Port in 2016 was just 98% over the same period. However, not yielding to the market disadvantages, the Port endeavored to increase lifting through container yard, depot and other related services. At the end of a fiscal year, Nam Hai Dinh Vu Port excellently exceeded the profit target, equally to 110% over the same period. In 2017 and the coming years, Nam Hai Dinh Vu Port is focusing on the targets of business effectiveness and service quality. As the latest port in Gemadept port system, owing to strategic location, modern and basic investment of infrastructure to accommodate biggest ship size calling Hai Phong port cluster, Nam Hai Dinh Vu Port has proved its capability, competitiveness and effectiveness in business, deserving the typical example of Gemadept port operation in the North market. 52 Annual Report 2016 Gemadept Corporation 53

NAM DINH VU PORT The project of Nam Dinh Vu Container Port belongs to the Government s master plan with advantageous location inside Nam Dinh Vu Industrial Park, Hai Phong City.

In addition, Nam Dinh Vu Port with the the deep draft and large vessel turning basin is capable to accommodate vessels up to 30,000-40,000 DWT.

Phase 1 of the project has 20ha with the investment of VND 1,700 Billion and the design capacity of 600,000 Teus/year.

28 NAM DINH VU PORT The project of Nam Dinh Vu Container Port belongs to the Government s master plan with advantageous location inside Nam Dinh Vu Industrial Park, Hai Phong City. The port is located right at the river mouth, the most downstream compared to other ports in the area. In addition, Nam Dinh Vu Port with the the deep draft and large vessel turning basin is capable to accommodate vessels up to 30,000-40,000 DWT. Situated on the area of 66 ha, this is a complex of 6-7 berths with the total berth length of 1.5km. Phase 1 of the project has 20ha with the investment of VND 1,700 Billion and the design capacity of 600,000 Teus/year. With the abovementioned advantages and the importance of the Port to the development strategy of Gemadept in Hai Phong port cluster, Nam Dinh Vu Port Joint Stock Company was established and the project was started construction on 9 November Currently, the project construction has been pushing up so that Phase 1 will be completed and put into operation right at the end of After completion and deployment, Nam Dinh Vu DUNG QUAT PORT Port will contribute to connect the trade between not only Hai Phong City but also the whole Northern economic region with the world. Moreover, the introduction of the Port is expected to create a breakthrough and a new position of Gemadept as one of the leading Port and Logistics operators of Vietnam. In 2017, it is forecast that the competition will become tougher when there will be a new port system in the area (April 2017) with the tendency to develop and construct more sea ports in the Central Vietnam. Consequently, the cargo volume will increase every year but the throughput of each port will decrease in short term as the market is divided into small shares. However in medium term, the regional market is still potential as it is forecast that in 2018, 2019 and 2020 and the market demand will increase remarkably in line with strong investment from steel projects of Hoa Phat, Dung Quat oil refinery plant extension, Exxon-Mobile Blue Whale project and Sembcorp gas-power plant project. In addition to the good business performance last year, DQP is closely maintaining work safety in the operation area and emphasizing the compliance of safety regulations of the port. Hence the staffs have active change in their awareness and compliance of safety working regulation. In reality there has not been any workplace accident since QDP started operation. The port is also paying attention to the training of environment safety, strict compliance with environmental standards, greenery protection, flowers and grass plantation in the port area in recent years, garbage control. Accordingly, Gemadept Dung Quat is evaluated the most green and clean port in the central Viet Nam. source after coming into stream thanks to the cargo commitments from big shipping lines as CMA-CGM, Gemadept Shipping and others. As far as construction schedule is concerned, Gemadept started construction in Until 2012, 39% of the 1 st phase was completed. However, during this time, there was global and regional economic recession affecting the deployment of mother vessels to Cai Mep area. Following the consultancy of an experienced international consulting company, Gemadept has actively suspended the construction of Gemalink Terminal for natural soil loading to save costs and wait for market recovery. The construction work being done in 2016 was as follow: settlement monitoring work for sand surcharge at some surcharged area and soil consolidation by vacuum method, security work on site, etc. In 2017, Gemadept and CMA-CGM keep on researching and closely evaluating market demand to determine the appropriate time to resume the construction of Gemalink project, catching market growth in the coming time when FTAs between Vietnam and other countries coming into effect. Located at a strategic location in Central Vietnam, Dung Quat International Port is evaluated as a modern commercial port, a necessary maritime infrastructure of the region to contribute its important part to the attraction of investment into Dung Quat industrial zone and other neighboring ones actually marked the 10 th year foundation of QDP. Reviewing the process of foundation and development with much more difficulties and challenges, DQP had remarkable achievements, especially the upgrade of equipment, infrastructure to optimize stevedoring productivity to meet the requirements of big ship generation. Hence business results of DQP have been increasing year on year. Concretely, the volume in 2016 was 1.69 million tons, higher than ever before, increasing 15% over 2015; revenue and profit were achieved as planned. Because the market is still small with main commodity as wood chips (raw materials), the stable development of the cargo source is not high. This is a big challenge for port & logistics service providers in the region including Dung Quat Port. In addition, the market size is just 3.5 million tons of general import- export cargo but there are more than 3 ports in operation within the same region. GEMALINK DEEP SEA CONTAINER TERMINAL Gemalink port is the biggest port in Cai Mep- Thi Vai deep sea port cluster. After the 1 st phase construction, the port will have 800m berth for mother vessel and 260m berth for feeder on the 33ha container yard. The port capacity in the 1 st phase is 1.5m Teus/year. Upon the 2 nd phase completion the port capacity is 2.4m Teus/year. Gemalink has some competitive advantages over the others as follows: most advantageous location (right at the river mouth with the deepest draft and large turning basin); In addition, Gemalink has the longest main berth and is the unique deep sea port in Cai Mep Thi Vai area having dedicated quay for feeders connecting HCMC and the Mekong delta Area; The port is equipped with modern handling equipments, designed to accommodate 200,000 DWT vessels. Moreover it will have stable cargo 54 Annual Report 2016 Gemadept Corporation 55

LOGISTICS - Construct advanced management system by neatly arranging the organization, restructuring all resources; intensify cooperation with partners to enlarge the network nationwide and region

culture, friendly working environment; promote strong effort and enable everyone to maximize his/her working capability with long-term attachment to the Corporation.

The Corporation achieved remarkable business results and became one of the leading local logistics companies being able to provide customers with full packaged logistics services.

29 LOGISTICS - Construct advanced management system by neatly arranging the organization, restructuring all resources; intensify cooperation with partners to enlarge the network nationwide and region wide; - Utilize outsource services; build and develop network of suppliers who are reputable and capable in logistics infrastructure, equipment and human resource; - Build brand name, corporate culture, friendly working environment; promote strong effort and enable everyone to maximize his/her working capability with long-term attachment to the Corporation was the first year in the 2 nd five- year plan to develop Logistics as a strong core business of Gemadept. The Corporation achieved remarkable business results and became one of the leading local logistics companies being able to provide customers with full packaged logistics services. The Corporation pays much attention to well serving current customers in addition to the extension of potential customer list, meeting the demand of increasing cargo volume and services. Besides, Gemadept has expanded its warehouse and DC network including new investments and cooperation with partners to raise the area of warehouse and DC being operated by the Corporation up to over 200,000 sqm nationwide. Last year, the warehouse and DC cargo throughput as well as the distribution volume of Geamadept increased 200% over that of This again strongly confirms the fast and sustainable development of Gemadept in Logistics, one of the key industries of the economy. The Corporation has developed logistics service in the Mekong Delta under cooperation with Minh Phu Group to start a cold chain project which is the biggest and most modern in Vietnam with 50,000 ton capacity. On 14 October 2016, the first two modules of the project were put into operation with the storage capacity of 10,464 pallets. The project appearance timely meets the demand of storing reefer aqua products which are rapidly increasing in the South West. According to the plan, the reefer DC will be completed and put into operation 100% by mid of For financial performance, Gemadept Logistics successfully outperformed the projection with its revenue and profit increasing 50% against those of Moreover, in recent years the Corporation has frequently organized training courses together with real practice to help its staffs be more skillfully matured, expertise, professionalized in operation and performance. Management skill and I.T implementation have been improved to meet highest demand of customers as well as difficult requirements of such businesses as retails, consuming goods, F&B, jewelry and electronics nationwide and region wide. All working procedures of Gemadept Logistics were certified by ISO , applying for all departments and business units. Knowing that the economic stituation in 2017 will, on the one hand, remain challenging but, on the other hand, open up many development opportinities for Logistics in the process of largely integration into the word economy, Gemadept proposes the following directions and goals: - Direction: Improve service quality; increase effective business; - Develop such potential services as E-commerce, In-house logistics, VMI, Intersite trucking, Cross border trucking; - Keep on developing trucking and distribution, investing more small, medium sized trucks and container trucks; - Keep on building Song Than DC to be the typical model of its kind; optimize effectiveness; - Promote implementation of modern IT application: completion of the new TMS, WMS upgrading to pave the way for ERP integrated management in Financial targets: Target at 25% at least increase in revenue over Intensify the slogan: Disciplined - Dedicated - Professional and continue the program of operational excellence. 56 Annual Report 2016 Gemadept Corporation 57

PROJECT CARGO TRANSPORT INTERNATIONAL AND DOMESTIC CONTAINER TRANSPORT The world shipping, in 2016, witnessed the merging of big shipping lines such as Cosco - China Shipping, Hapag Lloyd - CASV, CMA

Domestic transport demand declined while tonnage was surplus, originating from the reason that domestic transport companies could not let out their ships for overseas traffic and then focused for

Facing the situation, Gemadept Shipping actively cooperated with new partners to minimize risk and at the same time focused on most effective services, cutting costs to maximize effectiveness in each

For the market prospect of next year, domestic services will be improved with the increase of volume and freight recovery.

30 PROJECT CARGO TRANSPORT INTERNATIONAL AND DOMESTIC CONTAINER TRANSPORT The world shipping, in 2016, witnessed the merging of big shipping lines such as Cosco - China Shipping, Hapag Lloyd - CASV, CMA - APL as well as the bankruptcy of Hanjin Shipping, the global carrier. In this fluctuating situation, Vietnam shipping confronted with much difficulty consequently. Domestic transport demand declined while tonnage was surplus, originating from the reason that domestic transport companies could not let out their ships for overseas traffic and then focused for domestic traffic. The imbalance led to two consequences: Freight kept on decreasing and the average utilization of Vietnam vessel fleet was low. Facing the situation, Gemadept Shipping actively cooperated with new partners to minimize risk and at the same time focused on most effective services, cutting costs to maximize effectiveness in each service. Consequently, in 2016, Gemadept Shipping transported 217,600 Teus with USD 29.5 Million revenue exceeding 15% of volume but decreasing 6% of revenue against that of For the market prospect of next year, domestic services will be improved with the increase of volume and freight recovery. Combining the solutions of cost cutting and the strong cooperation with international and local partners, the Corporation expects that in 2017, the sector will be more effective than before and will promote its role in the logistics integrated chain of Gemadept. Achieved the volume of Teus exceeding 15% over 2015 The list of Gemadept project cargo transport in 2016 was enriched with many key projects from Thai Binh power plant to Duyen Hai power plant in Tra Vinh province, Kraft Vina in Binh Duong, Cement plant in Cambodia, etc. This fact strongly confirms the position, capability and reputation of Gemadept in of the business field. Thanks to the standards of service quality, safety, effectiveness and timely fulfillment of commitments with customers, Gemadept project cargo transport reached the revenue growth of 50% and profit growth of 30% over the same period, continuing to improve its market shares, transport capability to create the difference basing on experienced and professional human resource, especially their endless dedicated effort for the sake of customer benefits thanks to reasonable, cost saving and safe solutions. Last year the rail accident at Cau Ghenh in HCMC attracted the most attention of the whole country. Hence the urgent project to transport heavy coaches for the fastest recovery of the North- South rail traffic was safely and timely done by Gemadept, creating Gemadept s high reputation to customers, local authority and people. The presence of Gemadept heavy lift cargo transport in the whole country and the neighboring Laos, Cambodia, etc., was originated from the right strategy, vision, equipment investment, HR quality which have effectively served the strict and various demands of customers. The Corporation priority is to unceasingly improve service quality and offer customers the most effective solutions. This is not only a challenge but also the motivation for Gemadept to continuously develop, deserving Revenue growth of 50% and profit growth of 30% over 2015 the trust and expectation from majority of foreign and local customers opens up a larger playground in line with the world economic integration of Vietnam, in which, special attention will be given to such infrastructure projects as air terminals, sea ports, thermo power plants, wind power plants, transportation infrastructure, etc. to meet the ever increasing need of the economy. As an active player in the new playground, Gemadept Logistics is all the time ready for facing any challenge in the light of being open-minded, creative and active in preparing necessary resources, deserving the leading company in heavy lift transport, and on top of it is the trust of the market and customers, the appreciation from local authorities and people wherever Gemadept s projects are. 58 Annual Report 2016 Gemadept Corporation 59

SHIPPING AGENCY Despite difficulty in recent years, Gemadept Shipping Agency has been active and flexible in its field which is Gemadept s traditional business by well maintaining current customer

The unit s revenue and profit grew 104% and 115% respectively over 2015. In addition, the JSS-Gemadept Join venture performed 337 voyages volume.

about the service quality and reputable of the service provider.

31 SHIPPING AGENCY Despite difficulty in recent years, Gemadept Shipping Agency has been active and flexible in its field which is Gemadept s traditional business by well maintaining current customer list and extending potential ones. In 2016, Shipping Agency Department achieved 100% business plan with 725 voyages (80 bulk voyages and 645 container & barge voyages) and other related services. The unit s revenue and profit grew 104% and 115% respectively over In addition, the JSS-Gemadept Join venture performed 337 voyages volume. Previously, the Agency Department mainly served vessels of rice, agricultural products, iron and steel in such a situation of low competition, plenty of ship calls and customers simply concerned about the service quality and reputable of the service provider. However, in recent years, there have been many more appearance of shipping agency service providers; the competition has been tougher consequently; Ship owners tend to concern price and cost cutting rather than service provider s brand name. To stand firm in front of the tough competition, the unit is doing every effort to maintain its current customers, attract new ones and at the same time improve service quality for the sake of customers best benefits. Additionally, the unit has done best effort to reinforce the close relationship with such concerned parties as buyers, sellers and ship brokers, etc. Although the unit has achieved good business result thanks to the abovementioned unceasing efforts, it commits itself to further attempt on facing higher competition pressure. As such, the management and staff of Gemadept Shipping Agency will mobilize themselves for 2017 plan fulfillment accordingly. VESSEL FLEET MANAGEMENT AND INVESTMENT Concerning shipping business, the previous strong development resulted in the increasing deployment of more ships into the market causing the world supply and demand imbalanced, ocean freight low for a long time and shipping companies have faced much difficulty consequently. Last year, Gemadept owned and managed the fleet of 3 ocean vessels, 11 river ships S1, in which the biggest river ship has the capacity of 160 Teus. To meet the market demand, in 2017 Gemadept invests in bigger river ships of 200 Teus capacity, being tentatively launched in 3 rd Quarter, Moreover, at any time of market need, Gemadept can lease other ships to operate. The river ship fleet is operated most effectively in VN-CAMBODIA traffic, playing a very important role to connect river ports in HCMC with Cai Mep area and the Mekong Delta. By utmost effort, Gemadept successfully maintains the highest average utilization of the ocean and river ship fleet in the market. According to the instruction of the Corporation management, all ships norms must be reduced; every voyage, navigation lane must be closely controlled and oil reducing must be done for every ship. In 2017, shipping business will not have sign of recovery when there is still difficulty despite slight increase of freight, which is not enough to cover costs. The main reason is tonnage surplus of fleet and slow recovery of the world economy. Gemadept will flexibly implement policy as per market fluctuation, endeavor to maintain effective tonnage utilization, reasonably cut costs and rationalize ship operation procedure. AIR CARGO TERMINAL SCSC Officially put into operation in Oct 2010 with investment capital USD 50 Million, SCSC is a joint venture between Gemadept, the Ministry of Defense, ACV and other financial investors. Situated on a 14.3ha area in Tan Son Nhat Airport, SCSC is composed of 2 main areas: 52,000 sqm apron for 3 Boeings F or 8 Boeings 737 and a warehouse of 91,000 sqm with 200,000 tons/year capacity. As a member of IATA, SCSC was invested synchronous equipments made in Germany with high modern technology the first time ever in Vietnam. Targeting to be the leading company in Vietnam and the region in terms of air cargo terminal service, SCSC is designed with the most serious requirements of technology so as to provide customers with convenient, safe and most saving services. Starting from zero point when entering the air cargo market, after 6- year operation SCSC has got good support from 23 airlinecompanies among total 47 ones calling Tan Son Nhat Airport. They are big and reputable worldwide as Cathay Pacific Airways, Cargolux, Singapore Airlines, Thai Airways, Emirates SkyCargo, Turkish Cargo, HongKong Airlines, Lufthansa, etc. The cargo throughput of SCSC in 2016 was 162,903 tons, increasing 39% over that of 2015 (which was 117,120 tons). Revenue and pretax profit increased 45% and 77% respectively over the same period. Moreover SCSC has also served Vietjet Air in international and domestic routes, rendering services of duty free managing and airplane catering. SCSC has achieved international standard certificates including IATA certificate for ground service (ISAGO), TAPA certificate (Class A- the highest standard) for air cargo terminal, certificate The cargo throughput of SCSC in 2016: tons increasing 39% over that of 2015 for meeting the standards of air security applied for EU nations (RA 3). Besides, to confirm itself with the service quality, SCSC successfully passed periodical evaluation by IATA and was reissued with IATA Certificate (ISAGO) in Especially in 2016, SCSC completed the training courses for the management and staffs and deployed the Kaizen & 5S program applicable for the whole company as per Japanese standards in its air cargo terminal. Thanks to its modern and advanced infrastructure, well trained and experienced staffs as well as the service procedure in line with the internation standards of IATA and TAPA, SCSC has confirmed it position as one of the leading air-cargo terminals of Vietnam and the region. In 2017, SCSC continuously pursues its development goals together with the extension of the terminal, improvement of capability meeting high market demand. 60 Annual Report 2016 Gemadept Corporation 61

REAL ESTATE FORESTRY Real estate, the opportunistic investments of Gemadept, comprises 3 projects: (1) Office building at No 6 Le Thanh Ton, Dist 1, HCMC (transferred 85% shares to a partner), (2)

Gemadept is proceeding legal formalities to carry out the construction of the project.

The commercial values of those projects keep on increasing.

The project consists of 7 floors and 1 basement on the ground of 6,745 sqm. The total construction is about 22,000 sqm. In 2016, Gemadept kept on completing legal formalities of the projects.

32 REAL ESTATE FORESTRY Real estate, the opportunistic investments of Gemadept, comprises 3 projects: (1) Office building at No 6 Le Thanh Ton, Dist 1, HCMC (transferred 85% shares to a partner), (2) Saigon Gem mixeduse development project, (3) Hotel and shopping center complex in Vientiane Laos. symbols in the busiest economic and commercial center of the country. Gemadept is proceeding legal formalities to carry out the construction of the project. The buildings, projects are located at the most prime locations, which are the golden lands situated at the administrative and economic centers of big cities. The commercial values of those projects keep on increasing. Located at the center of the administrative, economical capital of Vietiane, being opposite to the Arc de Triomphe (Victor gate) - the symbol and pride of Laos. The project consists of 7 floors and 1 basement on the ground of 6,745 sqm. The total construction is about 22,000 sqm. In 2016, Gemadept kept on completing legal formalities of the projects. Complying with the AGM resolution of focusing every resource on core businesses and reducing investment scale of opportunistic investment, Gemadept has been seeking partners, potential investors for divesting real estate projects at proper and convenient time. Saigon Gem Mixed-Use Development Project: The Saigon Gem mixed-use development project is situated at the golden land of HCMC with the combined ground area of around 4,300m2 and the gross floor area of apprx. 60,000-70,000 sqm. The project has two frontages (Le Loi Boulevard and Nam Ky Khoi Nghia Street) and is just 200 meters from Ben Thanh market. The construction parameters of the project were approved by relevant authorities. This will be a 49 storey high-rise complex with the planned functions of commercial center and high-class office for rent. The building is expected to become one of the new Complex of Hotel - Commercial Center in Vientiane, Laos When completed, it will be one of the 1st international 5 star hotels and commercial centers in Vientiane. The project with luxurious and modern design in elegant combination with Lao culture is quite harmonious with the surrounding landscape and buildings. Gemadept is pushing up legal procedures to start the construction of the project. The construction will take around 2 years. Saigon Gem Mixed-Use sqm In 2016, to comply with the AGM resolution of focusing every resource on core businesses and reduce investment scale in forestry, the newly planted area reduced to 500 ha. Thanks to favorable weather condition, good soil, seeds, fertilizers being well prepared, a good ratio of 85% live trees was sighted. For other industrial trees, the Corporation planted new trees along national road 78, the frontage of the land, to protect the empty area and create scenery as well as conducted some pilot plantation of new manioc seeds on small area. The good care of planted areas in recent years was done under consultancy of Rubber Research Institute to ensure the growth of trees and reduce cost of basic construction. In 2016, the weather condition was favorable; longer rain for months in the lots planted in 2013, 2014, 2015 and newly planted in 2016 made them grow well and synchronously. Fortresty fire protection was seriously conducted and hence no fire occured. The construction of National road 78 linking our project with other Cambodian provinces was completed, transportation was convenient and therefore it was better to protect land from encroaching, which was an important issue. Related departments well fulfilled their duty, ensured security without any serious happenings. Environment protection, social security and medicare were well done as per consultancy and high standard of indpendent foreign organizations in Cambodia. Some activities relating to life, health, society, religion, etc. for surrounding community were well performed in In 2017, the rubber companies will apply for for slackening the planting schedule and reducing newly planting areas as per registration with Cambodian ministries. Planted areas are well cared; fire protection is conducted in the dry season of Q1/2017; some appropriate industrial trees will be studied for pilot planting, social security and environment projections are proceeded.

DEVELOPMENT PLAN IN 2017 2017 is the second year of Gemadept's five-year development strategy towards its Vision 2020.

33 DEVELOPMENT PLAN IN is the second year of Gemadept's five-year development strategy towards its Vision This is the year that Gemadept focuses on supporting the development of projects, expanding the Port & Logistics projects, developing the core businesses of Gemadept in the time to come, meeting the rising market demand during economic integration. At the same time, this year is also the preparation year for Gemadept to enhance its human resources and technology to serve projects that are or will soon be in operation. On the other hand, Gemadept continues to promote strong business culture, corporate social responsibility, business values, environment protection and benefits for relevant parties. With the planned targets, Gemadept will continue to strongly and synchronously implement the following tasks: Main objectives in Achieving business targets approved by the Annual General Meeting (AGM): Gemadept's key task in each successive stage of development is to achieve business targets approved by the AGM. Overcoming all obstacles, with the highest endeavor and determination of all Management staffs, Gemadept firmly moves forward in 2017, aiming to achieve the financial goals entrusted by the AGM. 2. Completing and putting into operation key projects in Port and Logistics: To concentrate on speeding up the construction and putting the Nam Dinh Vu Port into operation as soon as possible; The Mekong Logistics Cold chain, which began to operate partly in late 2016 and will continue to be fully operational in the first half of 2017; The investment of a logistics center in Nam Hai ICD complex, doubling the capacity of Binh Duong port and the expansion of SCSC Air- cargo Terminal are also in the items to be deployed in 2017; In addition, Gemadept and its partner continue to study and assess the market demand in order to determine the appropriate timing to resume the construction of Gemalink Deep-sea port project, catching up the trend of export growth in the next period. 3. Continue to strengthen human resources, focus on recruitment, training, improving the quality of human resources: To ensure new projects being operated smoothly to bring efficiency as the plans, human resources play the most important role and are paid much attention by Gemadept management. The Corporation s recruitment process is real and transparent; Focusing on improving quality of human resources through professional and skill training programs are held regularly in Vietnam and overseas. In addition, in order to retain talented people, attract the intelligence and develop human resources, the suitable remunerative policy must be reinforced so every staff will do their best at work. 4. Risk management: In such a situation that the world and Vietnam s economy remains unstable, the market situation continues to be difficult and highly competitive along with negative impacts of the environment and natural disasters, etc., the proactive prevention and control of business risks that may affect Gemadept s development are absolutely necessary. In the time to come, Gemadept will continue to strengthen the risk management to protect and deal with business risks timely. 5. Enhancing production processes, improving labor productivity, cutting costs and pushing up the application of modern IT: These are tasks that Gemadept has been continuously implementing over the years and will continue to implement in next period to improve its business efficiency Long-term goals Following the strategy of Vision 2020, Gemadept specified below targets: Maintain and promote the leading position in Port Operation and Logistics; Own and exploit the integrated Port and Logistics network in North - Central - South Vietnam; Push up revenue and profit growth over the years. Strive with increasing the value of enterprises; Build strong corporate culture; Dignify corporate social responsibility and the interests of stakeholders; Focus on protecting the environment. Besides the short-term targets, the Corporation has defined long-term goals and determined to pursue with the view that a business is truly strong on the basis of healthy corporate culture, where each staff member is actively working together for the common development purpose. And the growth of the business cannot be separated from the orbit of close links with stakeholders including shareholders, investors, customers, partners, authorities, community, society and the environment, etc. Branch targets: Port operation: Strive to complete and exceed the targets of output, turnover and profit assigned to each port; Develop value-added services to increase revenue; Strengthen Sales & Marketing; Well coordinate among the ports in Gemadept s network as well as connect with the logistics system to provide integrated services to customers, improving competitiveness; Research, propose to invest more equipment needed to improve the capacity and to better meet the needs of customers; Implement cost cutting and risk management well; Strictly keep commitments to customers and partners; Constantly improve service quality. Complete and put into operation new projects on schedule and with efficiency. Logistics: Maintain maximum utilization of the distribution centers in the Corporation s network; Intensify Contract Logistics acivities; Develop services both in breadth and depth; Research for participation in business areas with higher profit margins; Complete and put into full operation of Mekong Logistics Cold chain and study the market well to implement the next phases of the project; Promote the investment of another Logistics Center at Nam Hai ICD complex; Expand SCSC Air Cargo Terminal; Promote customer development for the Kline Gemadept Logistics Vehicle Processing Center project; Maintain the leading position in project cargo transport; Ensure the high vessel utilization; Tightly control debts; Enhance cooperation with leading logistics enterprises for development; Improve business efficiency. Forestry: Take good care of planted area, ensuring plants to grow well; maintain the infrastructure and basic construction; Newly plant on small-scale basing on the policy of reducing the investment size; Continue to work with potential investors to look for good opportunities for divestment. Real estate: Complete the legal procedures of the Vientiane Complex of Hotel and Commercial Center in Laos and the Saigon Gem project; Continue to work with potential investors. 64 Annual Report 2016 Gemadept Corporation 65

34 FOCUS ON BENEFITS OF STAKEHOLDERS AND CSR

SUSTAINABLE DEVELOPMENT REPORT SUSTAINABLE DEVELOPMENT ACTIVITIES GEMADEPT BUILDING SUSTAINABLE VALUES CEO S MESSAGE Starting up its business during Vietnam s economic reform period, Gemadept is

Staying firmly through the turbulent open market and persistently passing the ups and downs of the economy, nowadays, Gemadept has become Vietnam s leading enterprise in Port Operation and Logistics

35 SUSTAINABLE DEVELOPMENT REPORT SUSTAINABLE DEVELOPMENT ACTIVITIES GEMADEPT BUILDING SUSTAINABLE VALUES CEO S MESSAGE Starting up its business during Vietnam s economic reform period, Gemadept is proud to be one of the pioneers to bridge the trading between Vietnam and the world by Gemadept s shipping services. Staying firmly through the turbulent open market and persistently passing the ups and downs of the economy, nowadays, Gemadept has become Vietnam s leading enterprise in Port Operation and Logistics with its network stretching from the North to the South as well as to neighboring countries. Gemadept has built up a brand with firmed position in the market and, above all, a brand of prestige, service quality and trustworthiness towards customers, partners and the community. Gemadept strongly believes that a business can only be sustainable on the basis of healthy corporate culture and solidarity where strengths of each individual together form the corporate strength and where every staff is wholehearted for the sake of common development. And in a world in which each individual is intimately correlated, Gemadept deeply understands that the growth of the Corporation is inseparable from relevant parties concern including shareholders, customers, partners, authorities as well as the environment and society, etc. Based on that, Gemadept is always pursuing sustainable development policy, implementing its statements on corporate social responsibility, actively contributing to environmental protection, saving energy in production, improving staffs income, creating more jobs and regularly participating in/ organizing charity activities. In 2017 and coming years, Gemadept s Board of Management and staffs continue to work hard in building the foundation for sustainable development in order to continuously promote the value of the Corporation, increase the benefits for shareholders, customers, partners and the community as well as actively contribute to the development of the country. Thank you and best regards, CEO DO VAN MINH In recent years, along with the deepening integration of Vietnam into the regional and world economy through participation in major economic organizations and implementation of bilateral and multilateral free trade agreements, the role of enterprises is becoming more important and has been the motivation for the country's development in parallel with the government s policy adjustment roadmap, which helps enterprises to improve and enhance competitiveness. With its sustainable development policy, Gemadept has carried out concrete measures for further enhancing business effectiveness and raising corporate social responsibility. In 2016, the Corporation kept on promoting and realizing its sustaible development policy in many aspects, including: Consolidate and foster effective working environment; Give prominence to corporate culture and core values; Set up a preferential policy and proper welfare to attract, maintain and develop qualified human resources; encourage staff s devotion, effort and creativeness to maximize individual competence and organizational strength; Pay attention to social corporate responsibility, environmental protection, energy saving and job creation; Carry out social activities and charity programs to help people affected by natural disasters, the poor, disabled, orphans and students with difficult circumstances, etc. 68 Annual Report 2016 Gemadept Corporation 69

CORPORATE TRANSPARENCY AND MECHANISM FOR RECEIVING RECOMMENDATIONS FROM STAKEHOLDERS In 2016, Gemadept was honoured by Forbes VN as one of 50 best Vietnamese listed companies.

36 CORPORATE TRANSPARENCY AND MECHANISM FOR RECEIVING RECOMMENDATIONS FROM STAKEHOLDERS In 2016, Gemadept was honoured by Forbes VN as one of 50 best Vietnamese listed companies. This has once again confirmed the trust and appreciation that the community and investors have for Gemadept. On the other hand, this has also genuinely reflected the responsibility of Gemadept towards the community and investors through its focus on investor relations and corporate transparency. The Corporation has facilitated information access for shareholders and investors to follow up its operations and, also thanks to which, Gemadept can receive feedbacks, queries and recommendations from shareholders, investors and stakeholders. On that spirit, Gemadept has implemented diversified channels so that stakeholders are fully and timely informed about the Corporation s business results as well as its development plans via AGMs, seminars, conferences, media, direct meetings, tele-conferences, s, correspondence, websites, etc. In 2016, Gemadept welcomed over 150 delegations from local and foreign enterprises, investment funds, organizations and individuals at its office, seeking for cooperation and investment opportunities. For those who did not have chances of direct meeting, the Corporation organized tele-conferences, exchange, out-of-office meetings, local and overseas conferences, interviews, etc. Furthermore, Gemadept frequently updated about its business results and activities and received every feedback, query of stakeholders via quarterly and annual conferences, website, media, newspapers, etc. In addition, Gemadept organized a lot of site tours to the Ports, Distribution Centers, Air-cargo Terminal, etc., in the Corporation s network. Through which, investors could witness and have better understanding of Gemadept s business activities.. The fact that number of investors being interested in Gemadept keeps on increasing year after year is a testament for the efficient and sustainable development of the Corporation. Being a public company, information transparency is one of the most important criteria in the eyes of investors. Therefore, Gemadept strictly adheres to the State regulations on information disclosure, updating of changes and events through the Corporation's website, the media, the State Securities Commission of Vietnam and related organizations. The Investor Relations Department of the Corporation deeply involves in the communication, evaluation and voting carried out by independent parties. As a result, Gemadept has been recognized by the government, domestic and overseas organizations for its business achievements and positive contributions to the society. To customers and partners, the Corporation has established the most convenient contact systems to each department, division and person in charge for timely meeting the requirements of customers as well as for receiving and prompt responding to customers queries and suggestions. To all of Gemadept s staffs, the Board of Management, Trade Union and Human Resources Department are always ready to listen and communicate with staffs via direct discussion, s, etc. In addition, the Executive Committee of the Corporation's Trade Union has always paid attention to staffs living conditions, responding to queries and receiving suggestions of staffs for fully and timely conveying to the Corporation s Board of Management. Reasonable comments and recommendations of staffs are reviewed, explained and promptly responded so that the staffs feel secure in work, have more selfmotivation and better contribution to the sustainable development of the Corporation. COMMITMENTS TO CONCERNED PARTIES To the Government: - Strictly comply with Vietnam laws and policies as well as regulations of the Government relating to the Corporation s businesses. - Perform tax duties. - Ensure timely reports as requested. To shareholders - investors: - Guarantee the legitimate rights of shareholders and investors. - Fulfill reports and announcements as requested. - Provide transparent information and create convenient conditions for shareholders and investors to study about the Corporation s businesses. - Endlessly do every effort to bring sustainable values to shareholders and investors. To customers - partners: - Focus on service quality to develop business. - Provide customers and partners with the most effective and suitable solutions. - Ensure strong commitments to customers, partners for effective and winwin cooperation. 04 To management and staffs: - Create good working environment, training and promotion opportunities. - Have proper remuneration policy; Take good care of staffs. - Encourage devotion mind, creativeness, personal talent and collective strength. 05 To the community: - Share social responsibility. - Bring benefits to the community. - Create more jobs. - Protect environment. - Contribute to Vietnam s economic and social development. 70 Annual Report 2016 Gemadept Corporation 71

TYPICAL AWARDS AND RECOGNITIONS In recognition of the positive contributions of Gemadept to the society and community as well

years: Being among Vietnam s Top 500 largest enterprises (VNR 500) for many years (including 2016) Vietnam Report and

for many years (including 2016) Vietnam Report - VietnamNet, Taxation Newspaper - General Department of Taxation 50 Best

Dau Tu Chung Khoan Newspaper and Dragon Capital Award for Technology Application in Supply Chain Management 2014 Vietnam Supply

Institute and Vietnam Logistics Review Vietnam Best Company 2014 Dien Dan Doanh Nghiep Newspaper, Institute of Enterprise Study

Corporate Directors Gemadept Dung Quat - Outstanding Enterprise Award of Quang Ngai Province 2016 Quang Ngai Provincial People

37 TYPICAL AWARDS AND RECOGNITIONS In recognition of the positive contributions of Gemadept to the society and community as well as the Corporation s remarkable achievements over the past 26 years, the government, local and foreign organizations have given Gemadept noble titles and awards. Within this report limit, we just briefly summarize the titles, awards, certificates of merits granted to Gemadept in recent years: Being among Vietnam s Top 500 largest enterprises (VNR 500) for many years (including 2016) Vietnam Report and VietnamNet Being among Top 1000 enterprises having the largest contribution of corporate income tax to National Budget (V1000) for many years (including 2016) Vietnam Report - VietnamNet, Taxation Newspaper - General Department of Taxation 50 Best Vietnamese Listed Companies Award 2016 Forbes Vietnam Top 50 Best Annual Report Award 2016 Ho Chi Minh Stock Exchange (HOSE), Dau Tu Chung Khoan Newspaper and Dragon Capital Award for Technology Application in Supply Chain Management 2014 Vietnam Supply Chain Top 20 Logistics Enterprises of Vietnam 2015 Vietnam Logistics Association in coordination with Vietnam Logistics Institute and Vietnam Logistics Review Vietnam Best Company 2014 Dien Dan Doanh Nghiep Newspaper, Institute of Enterprise Study and Development, Vietnam Association of Accountants and Auditors, Young Entrepreneurs Association, Vietnam Association of Corporate Directors Gemadept Dung Quat - Outstanding Enterprise Award of Quang Ngai Province 2016 Quang Ngai Provincial People s Committee Certificate of merit for the enterprise having good social, health and unemployment insurance policy for its staffs in 2014 HCMC Social Insurance UNESCO Culture Enterprise 2013 UNESCO Vietnam 178 Annual Report 2016 Gemadept Corporation 179

ENVIRONMENT - ENERGY With its fast and sustainable development, Gemadept has carried out many projects throughout the country on the basis of high responsibility for environment protection, energy

In compliance with the policy, the construction of sea ports, air-cargo terminal, logistics infrastructure, forestry, buildings, etc.

38 ENVIRONMENT - ENERGY With its fast and sustainable development, Gemadept has carried out many projects throughout the country on the basis of high responsibility for environment protection, energy saving, green-cleannice view maintenance, job creation for local people to develop local economy via Gemadept s commitments of Corporate Social Responsibility (CSR). In compliance with the policy, the construction of sea ports, air-cargo terminal, logistics infrastructure, forestry, buildings, etc. of Gemadept has been evaluated for the environmental impact, designed and constructed in line with energy saving, minimizing negative impacts on the environment while creating for greenery. 1. Solutions of management, energy and fuel saving: Fuel cost is always a significant part in the total cost structure of the Corporation. As such, Gemadept always focus on fuel and energy consumption control in order to save costs and push up business effectiveness. In addition, saving fuel and energy helps protecting the environment. The control of fuel and energy consumption has been frequently carried out by Gemadept on every aspect of its business and by various ways including but not limited to: - The installment of modern electric equipment with high stability helps reducing unnecessary energy consumption; - Install transformer stations to save fuel consumption for running generators; - Use container management software at CYs and depots to reduce the movement of containers, which saves fuel consumed by forklifts; - Apply advanced software for fuel consumption management of equipments; - Have periodical maintenance, repair and upgrading of equipments to guarantee the running in line with standards instructed by manufacturers; - Replacement of filament lamps by compact lamps of LED technology helps increasing brightness, longer durability and saving energy; - Daily check electricity meter in respective areas to control electric power and prevent from malfunction if any; - Use steel proof absorbing natural light to reduce lamp utilization in day time; use natural ventilation system and insulating proofs to ensure air circulation inside the project; - Technical team controls software system such as Firefighting & prevention system, BMS, I-Manager, X-WEB3000, waste water treatment, etc., to optimize energy saving; - Maintain mechanical electric system in line with annual M&R schedule and comply with recommendation of producers to ensure good and stable operation, lessen malfunction and increase durability; - Adjust schedule of on-off system of air con, illuminating lamp, ventilation fan, equipments using energy via central management system as BMS, I-Manager, X-WEB3000, etc; - Separate lamp lines, fan lines, design functional areas and program the monitoring of lamps, fans at certain areas so as to optimize the electricity consumption; - Daily follow up electricity meters to control activity in all areas and solve irregularity if any; - Forklifts and specialized equipment being used inside the distribution centers, warehouses and air cargo terminal, etc. are equipped with electricity ones without causing pollution; - Strong guidance from BOD and Heads of departments to every staffs about energy saving; - In 2016, the Corporation continued to save fuel consumption for vessel operation, inland transport and reduced fuel norms. 2. Water supply and waste water treatment system: Closely monitor water meters everyday to restrict and prevent any problem Rain water is drained to the underground pools of firefighting & prevention system to serve the system and to water plants. Waste water and sewage treatment are strictly done in compliance with the law on environment protection and regulations of relevant authorities. To enable the good operation of the systems, the sewerage hygiene and dredging are periodically done as planned. Have contracts with professional companies in collection and treatment of liquid sewage mixed with oil in line with regulations of relevant authorities. 3. Environment protection - Industrial safety - Fire fighting and prevention: The Corporation has set up the checking and control mechanism done by Risk Management Department and related ones at each production unit so as to speed up and follow regulations of industrial safety, port operation, sea navigation, firefighting and prevention, waste water solution in accordance with the guidance. It is a must to save energy and fuel during handling equipments, ship operation, and green tree plantation to create the nice and clean view of the project sites. Sign contracts with professional companies in cleaning the yards, warehouses and collecting waste at a separate area; Have waste sorted and labeled for easy collection and treated in line with regulations. Sign contracts with professional companies for prevention of oil overflow. Strictly comply with regulations of environment protection in business operation. Effectively utilize the assets (maximum utilization of ports, 93-95% of DCs, 80-90% of truck fleet, over 80% of vessel fleet, etc.); Avoid wasting via implementation of 5S, SOP as well as KPI compliance and performance. SCSC has achieved international standard certificates including IATA certificate for ground service (ISAGO), TAPA certificate (Class A- the highest standard) for air cargo terminal, certificate for meeting the standards of air security applied for EU nations (RA 3). Be proactive in fire prevention; Equip automatic fire fighting systems. For labour safety, at each unit, the Corporation assigns persons in charge. These persons in charge are responsible for daily monitoring and reminding the compliance with labour safety regulations issued by the Corporation. They also have periodical reports on labour safety to the Corporation management. Have the policy for all employees to have periodical health checks. Deliver safety working clothings and uniforms to employees annually. Hold training programs on labor safety annually and according to requirement of the labors. Have reports on labour accident situation to relevant authorities according to the regulations. Minimize labour accidents and labour diseases. 74 Annual Report 2016 Gemadept Corporation 75

39 ECONOMY REVENUE UNIT: BilVND UNIT: BilVND Ensuring effective businesses and economic results: During the past 26 years of foundation and development, Gemadept s size of revenue and profit has been endlessly increasing. Concretely, in 2016, the Corporation exceeded the targets of revenue and profit entrusted by the AGM. 2. Contribution to Vietnam economy: From its start-up in 1990 with only two business sectors of shipping agency and forwarding, nowadays, Gemadept has become the leading Corporation in Port operation and Logistics with the integrated network covering North- South Vietnam. Gemadept is proud to be the pioneer in many business fields with its utmost effort to overcome difficulties and challenges for unceasing development and increasing its scale by hundreds of times after privatization. And above all, the Cororation has had positive contributions to the society, the community and the nation. 2.1 Contribution to port industry: In port operation, Gemadept deeply embedded its leading brand name in recent years by its remarkable achievements at Phuoc Long ICD Port, Binh Duong Port, Dung Quat Port, Nam Hai Port and Nam Hai Dinh Vu Port. Its current capacity is 1.3 million TEUs and 2.5 million tons. Moreover, in order to meet the rising market demand in line with Vietnam economic growth, Gemadept keeps on developing new port and ICD projects. Concretely, in the North in 2016, Gemadept put Nam Hai ICD into operation strongly supporting Gemadept s current ports in Hai Phong namely Nam Hai Port and Nam Hai Dinh Vu Port. Also in the Hai Phong port cluster, the Corporation is constructing its 3rd port project namely Nam Dinh Vu Port with large scale, phase one of which will be put into operation end of Gemadept ports are located at strategic locations, serving the high demand of cargo imported - exported to/from busy industrial zones and in big cities of the country. Understanding the importance of im-ex activities to the country development, Gemadept constantly improves its service quality, keeps strong commitments to customers and makes every effort to quickly release cargo/vessels with most competive rates. 2.2 Contribution to Logistics: Vietnam logistics industry has been developing fast during Vietnam s deeper global integration via free trade agreements. Taking the good opportunity and prospect, Gemadept has confirmed the strategy for deeper and larger logistics development and becomes the leading 3PL company with integrated network of shipping, inland transport, project cargo transport, air cargo terminal, distribution centers, etc. capable to provide full packaged logistics solutions with outstanding service quality, modern technology and competitive price, which has asserted Gemadept s position in Vietnam logistics industry. Gemadept s logistics network has been widening at major economic zones of the country with modern distribution centers at Song Than IZ, Binh Duong province, Hai Phong, Hai Duong, Bac Ninh, Ha Noi, etc., with the Air-cargo terminal, river ships, ocean vessels and inland transport fleet serving the integrated supply chain. In addition, taking market opportunity with rising demand for cross border transport within ASEAN Economic Community (AEC), Gemadept has gradually deployed the potential business. The year 2016 marked the new development of Gemadept Logistics with the deployment of two major projects at the same time: Mekong Logistics cold chain (Joint venture between Gemadept and Minh Phu Group) serving the demand for aqua product cold warehouse in the Mekong Delta and K line Gemadept Logistics Vehicle Processing Center with PDI function PROFIT AFTER TAX In the South, the Corporation keeps on investing in other port projects including Gemalink Deepsea container port in Ba Ria Vung Tau, which is the biggest size in Vietnam (capacity of 1.2 million TEUs/year for 1st phase and 2.4 million TEUs/ year for full phases), for which Gemadept and its partner will resume the construction and put into operation in the time to come. Moreover, also in 2017, Gemadept will invest to double the capacity of Binh Duong Port. Consequently, in the near future, with the contribution of the new projects, Gemadept s port capacity with be increased multiple times. 76 Annual Report 2016 Gemadept Corporation 77

Besides, Gemadept is a member of FIATA, IATA, VLA, VSC, Eurocharm, VPA, VISABA, etc.

contributing to the development of the industry. 3. Bringing economic benefits to related parties: National budget contribution: VND 243,624,114,292.

- Contribute to push up Vietnam s export-import growth: Gemadept port operation and logistics help increasing competitiveness for import-export companies.

40 Besides, Gemadept is a member of FIATA, IATA, VLA, VSC, Eurocharm, VPA, VISABA, etc., through which the suggestions and opinions of Gemadept on Logistics industry have received positive responses, bringing benefits to relevant businesses and logistics customers as well as contributing to the development of the industry. 3. Bringing economic benefits to related parties: National budget contribution: VND 243,624,114,292. Gemadept is, therefore, top listed among Top 1000 enterprises having the largest contribution of corporate income tax to the national budget (V1000). - Contribute to push up Vietnam s export-import growth: Gemadept port operation and logistics help increasing competitiveness for import-export companies. It is especially important in the global economic integration. - Enhance good cooperation with other countries: Gemadept contributes its part to promote the economic cooperation between Vietnam and such countries that Gemadept has partnership and project deployment as Japan, Singapore, Korea, Laos, Cambodia, Hong kong, Taiwan and others - Bring economic benefits to shareholders: Besides the contribution to the society and the industry, one of the most important duties of an enterprise is to bring benefits to its shareholders and relevant parties. In 2016, Gemadept outperformed the business targets approved by the AGM and made dividend payment of 20% par value equivalent to VND 239,243,988,000 (two hundred thirty nine billion two hundred forty-three million nine hundred and eighty eight thousand Vietnam dongs). - Benefits for employees: Total income for the Corporation s employees in 2016 was approximately VND 350 billion, increased 15% against that of Benefits to customers, partners: Strong commitment of KPIs performance, safe cargo stevedoring, unceasing increase of service quality so as to provide customers and partners comprehensive and effective solutions. 4. Aim to mid-term and long-term development strategy: In 2017 and the coming years, there will be new opportunities and challenges for Vietnam upon joining TTP, FTAs with other countries and with the AEC coming into effect. Gemadept Management and staffs will keep on doing every effort to pursue sustainable development strategy with the following targets: - Continue to promote core business of Port operation and Logistics. - Strengthen competitiveness and well catch up market opportunities; Maintain and increase market share. - Expand service network in depth and in width to meet the ever-increasing market demand. - Develop high quality human resources. - Enhance the application of new information technology in management and operation. - Optimize production process and effective operation. - Endlessly upgrade service quality, improve technology and professional training. - Promote corporate culture, solidarity and corporate values. - Bring customers, partners, shareholders and concerned parties sustainable Velues. - Actively contribute to the society, create more jobs and actively contribute to Vietnam s economic growth. 78 Annual Report 2016 Gemadept Corporation 79

SOCIETY Experiencing a quarter of a century, Gemadept has made utmost effort in fulfilling the two missions: Contribute to the development of the community and society while raising benefits of the

The internal community of Gemadept includes 2,300 employees while the external community of Gemadept comprises of thousands of shareholders, hundreds of customers, partners, and further more, local

Stable employments and treatments to employees: In line with its human resources development strategy, the Corporation confirms: Any employee without discrimination of gender, education level, and

Employees and their families lives are properly cared; working environment is friendly and professional on the basis of the Corporation s culture.

41 SOCIETY Experiencing a quarter of a century, Gemadept has made utmost effort in fulfilling the two missions: Contribute to the development of the community and society while raising benefits of the Corporation and relevant parties. The internal community of Gemadept includes 2,300 employees while the external community of Gemadept comprises of thousands of shareholders, hundreds of customers, partners, and further more, local authorities as well as other parties in the society. With the responsibility towards both the internal and external communities, Gemadept has affirmed its duties as follows:: 1. Stable employments and treatments to employees: In line with its human resources development strategy, the Corporation confirms: Any employee without discrimination of gender, education level, and age is fairly treated, created best conditions for work, contribution and promotion in line with his/her achievements via labor policy. Employees and their families lives are properly cared; working environment is friendly and professional on the basis of the Corporation s culture. Gemadept strictly complies with the Labor Law, having proper salary scale and fulfilling policy of social, health and unemployment insurance. Moreover, employees working spirit is much concerned through activities of team building, tourism, outdoor trips, clubs, sports and art competitions, etc. Working environment is highly professional, friendly, unanimous and united. Besides overall income, staffs can buy preferential shares via ESPP as approved by the AGM so as to increase their ownership and motivation in business operation for the common interest. In 2016, with the Corporation s business development, Gemadept created job for 300 more employees in Port operation and Logistics. 2. Responsibilty in service provision: Be open minded, dedicated, professional, cooperative and sharing on win - win basis are the basic guidelines of Gemadept service provision. Doing business during the market fluctuation and high competition, Gemadept always has backup plans to support customers and partners when the market is not favorable as well as to solve problems with the spirit of cooperation and sharing. The Company deeply recognizes that every long term and sustainable cooperation has to be on the basis of responsibility, dedication, professionalism and high commitment in providing services, which is also the decisive factor for the Corporation s success so far. 3. Bringing benefits to shareholders: Besides the contribution to the society and the industry, one of the most important duties of an enterprise is to bring benefits to its shareholders and relevant parties (Please refer to Article 3 - Economy). 4. Corporate Social Responsibilty: In line with the Corporation s commitment in sustainable development, Gemadept not only maintains the stable and transparent business development but also pays attention to corporate social responsibility and sharing community s burdens. Besides the improving business performance, Gemadept has not only created economic values, provided stable jobs for thousands of laborers and contributed to the national budget, but also paid attention to social activities via charity programs, scholarships for poor students, visits to social centers and support to poor patients, handicapped ones, orphans, etc. In 2016, Gemadept s charity trips to Ha Tinh, Quang Nam, Quang Ngai, etc. to support those affected by floods have left deep impression on the local authorities and people. Cows and cash delivered directly to victims of the floods by Gemadept management and staff to help the unfortunate rebuild their lives from the difficulty. Happy lunch and Tet gifts donated to the social center in Binh Phuoc Province helped encouraging the unlucky ones as well as the staffs working at the center. Sharing love and enhancing humane tradition, Gemadept management and staffs deeply understood the morale of giving and receiving, from which their social responsibility were further embraced and heightened. Social activities that Gemadept has carried out in the last 5 years: - Scholarships for poor and studious students. - Participation in Understanding the heart program to sponsor heart surgeries for misfortune and sick children. - Charity programs to support orphans, lonely old people, disabled and homeless persons in Social Centers in the city, provinces and the whole country. - Support people and soldiers in Truong sa, Hoang sa islands. - Good leaves protect the worn out ones programs to timely support the national calamity and flood victims. - Gemadept unceasingly emphasizes the thought of gratitude to martyrs among its contingent via activities on Martyr and War-invalid day 27/7 and on other national holidays. 80 Annual Report 2016 Gemadept Corporation 81

HUMAN RESOURCES DEVELOPMENT 1. LABOR STRUCTURE AND REMUNERATION POLICY The annual resignation ratio is low, at 5%-6% in average. 1.1. Labor structure and other related issues: 1.1.b. Labour relation: 1.

90% of Gemadept s management and staffs are university graduates and 60% of which are under 40.

42 HUMAN RESOURCES DEVELOPMENT 1. LABOR STRUCTURE AND REMUNERATION POLICY The annual resignation ratio is low, at 5%-6% in average Labor structure and other related issues: 1.1.b. Labour relation: 1.1.a. Labor structure: Gemadept now owns valuable human resources with over 2,300 management and staffs; most of them are enthusiastic and long-term attached to the Corporation. 90% of Gemadept s management and staffs are university graduates and 60% of which are under 40. The stable human resources and the low annual resignation ratio are positive factors for the development of the Corporation in the coming time. Labour structure by Gender Labour structure by Age 32% 79% 18% 41% 21% 9% 32% 7% 5% 3% 53% Labour structure by Seniority Male Female < >50 <5 năm 5-10 năm năm năm >20 năm - 100% labourers have labour contracts. - Labourers benefits are fully protected under the Labour Law. - Collective agreement, labour regulation, salary tariff are fully registered with concerned authorities and timely updated as soon as any new regulation is valid. - Definitely not to recruit child labour or forced labour. 1.1.c. Labor Union: Gemadept founded Labour Union in Since the foundation, the organization actually consulted the BOD on treatment policy to care for life and legitimate benefits of the contingent and at the same time received and transferred labourers proposals, queries to the Corporation management for proper solutions to both sides. Members of Trade Union Board are assigned to be in charge of different functions and business activities to ensure that every labourer will be properly cared Remuneration Policy: 1.2.a. Working conditions: Working environment: well equipped with working tools, clean and spacious offices, friendly culture, safety training in accordance with current regulations. 1.2.b. Health care, Tourism: - All Management and staffs have periodical health-check at high class medical clinics. - Lunch is well served with nutrition and food safety standards. - Annual leave with full time salary and relevant tourism expense be paid based on seniority. 1.2.c. Labor insurance: - Payment of Social Insurance, Health Insurance, and Unemployment Insurance has been timely done as per current regulation. The total amount in 2016 was VND 56 Billion. - End of 2016, in line with the policy for enhancing the care of laborers lives, the Corporation management approved the new health insurance for employees commencing 2017, which replaces the previous 24/24 health insurance. With the new insurance, employees enjoy better benefits: besides death, accident, operation insurance, the new insurance is also applied for outpatient treatment with double the previous benefits. 1.2.d. Care for life of management and staffs: Have gifts to the Corporation management and staffs on the occasions of Tết, holidays; visit and support when they are facing difficulty, sickness is the tradition of Gemadept since the foundation. There also have been the programs of BOD to wish female laborers on the occasions of the International and Vietnamese Women s Day, etc. 1.2.e. Laborers Income: Setting the target to be the leading company in caring employees life and ensuring their proper income, the Corporation has been unceasingly fulfilling the targets, even in difficult periods of the economy and the Corporation itself. The effort results in higher labor income year after year with the average salary increase of 10% in the latest 3 years ( ). 1.2.f. Employee stock purchase plan (ESPP): Gemadept is one of the listed companies having the ESPP for its employees. This is a tool not only to help maintaining and attracting talented laborers but also to help increasing their income and ownership in the Corporation. This combination plays an important role in maintaining the sustainable development of Gemadept. 2. HUMAN RESOURCE DEVELOPMENT: Human resources play the decisive role in every stage of foundation and development of Gemadept. Hence, the Corporation is always paying much attention to building up the contingent of young managers and staffs who are active and enthusiastic in their work, wholehearted to customers and strongly attached to the Corporation. They also have high expertise, proper attitude, high motivation and willingness to learn and master the new techniques, effective management skills in order to fulfill their assignments excellently. All employees of Gemadept are fairly treated in terms of benefits, promotion and awards in line with their contributions. They are encouraged to be creative so as to create differences in business. In addition, human resources quality is much concerned by the Corporation through its open and fair recruitment in accordance with its HR procedures along with local and overseas training plans to timely and effectively serve the Corporation s project deployment and future needs. In 2016, the Training department of the Corporation carried out the training programs on Logistics, sales & marketing, training for new and young employees, etc. Besides, there are also other programs done by Gemadept units such as INTERNET OF THINGS AND HOW IT IS TRANSFORMING THE SUPPLY CHAIN, E-commerce by Professor Albert Tan - MIT Malaysia; Supply chain CLTD - online with diploma granted by Apics, etc. In 2017 and the coming years, with Gemadept s business expansion, many new projects will be deployed. The development of high quality human resources is one of the core missions. Besides, the Corporation will continue training programs to improve professionalism and soft skills for the contingent of Management and staffs via internal training, by local and foreign experts, organizations. 82 Annual Report 2016 Gemadept Corporation 83

43 ENHANCE CORPORATE VALUES 84 Annual Report 2016 Gemadept Corporation 85

44 STATEMENT OF THE BOARD OF DIRECTORS STATEMENT OF THE BOARD OF DIRECTORS (Cont.) The Board of Directors of Gemadept Corporation (hereinafter referred to as the Corporation ) presents this statement together with the Consolidated Financial Statements for the fiscal year ended 31 December 2016 including the Financial Statements of the Corporation and those of its subsidiaries (hereinafter collectively referred to as the Group ). Business highlights of the Corporation Gemadept Corporation has been operating under the Business Registration Certificate No , which was registered for the 1st time on 01 November 1993 and was amended for the 21st time on 10 August 2016, granted by the Department of Planning and Investment of Ho Chi Minh City. Head office Address: No. 6 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam. Tel.: (84-8) Fax: (84-8) The Corporation has been consistent with its strategy to develop core businesses and to selectively diversify business sectors. The business scopes of the Corporation include port operation, logistics, forestry and real estate. Port operation: Operating a port system stretching from the North to the South, in big cities and at major industrial zones: Phuoc Long ICD Port, Nam Hai Port, Nam Hai Dinh Vu Port, Nam Dinh Vu Port, Dung Quat Port and Binh Duong Port; investing in the projects of Gemalink Cai Mep Deep-sea Container Port and Gemadept Hoa Sen International Port; Logistics: Distribution centers; container liner services; project cargo transport; multimodal transport, ship and crew management; shipping agency and freight forwarding services; air-cargo terminal, etc. Forestry: Planting, exploiting and processing rubber trees and other industrial crops in Cambodia; Real estate: Building and operating commercial centers, hotels, office buildings in big cities of Vietnam and Indochina including Saigon Gem Mixed-use Development project and Gemadept Mixed-use Development project in Vientiane- Laos. Board of Management and Executive Officers The Board of Management and the Executive Officers of the Corporation during the year and as of the date of this statement include: Full name THE BOARD OF MANAGEMENT Mr. Do Van Nhan Mr. Chu Duc Khang Mr. Do Van Minh Mr. Nguyen Quoc Huy Mr. Pham Hong Hai Mr. Vu Ninh Ms. Nguyen Minh Nguyet Ms. Bui Thi Thu Huong Mr. Pham Tien Tinh Mr. Phan Thanh Loc Mr. Bolat Duisenov Position Chairman Vice Chairman Member Member Member Member Member Member Member Member Member Mr. Nguyen Quoc Huy resigned on 31 August Full name Mr. Luu Tuong Giai Ms. Vu Thi Hoang Bac Mr. Tran Duc Thuan Ms. Tran Thanh Thuy Ms. Phan Cam Ly Ms. Tran Thanh Thuy resigned on 31 August Full name Mr. Do Van Minh Mr. Chu Duc Khang Mr. Pham Quoc Long Mr. Nguyen Thanh Binh Mr. Tran Quang Tien Legal Representative The Corporation s legal representative during the year and as of the date of this statement is Mr. Do Van Minh - General Director (appointed on 02 April 2007). Auditors A&C Auditing and Consulting Co., Ltd. has been appointed to perform the audit on the Group s Consolidated Financial Statements for the fiscal year ended 31 December Responsibilities of the Board of Directors The Board of Directors of the Corporation is responsible for the preparation of the Consolidated Financial Statements to give a true and fair view of the consolidated financial position, the consolidated financial performance and the consolidated cash flows of the Group during the year. In order to prepare these Consolidated Financial Statements, the Board of Directors must: Select appropriate accounting policies and apply them consistently; Make judgments and estimates prudently; State clearly whether the accounting standards applied to the Group are followed or not, and all THE CONTROL BOARD Position Chief of the Board Member Member Member Member THE BOARD OF DIRECTORS Position General Director Deputy General Director Deputy General Director Deputy General Director Deputy General Director the material differences from these standards are disclosed and explained in the Consolidated Financial Statements; Prepare the Consolidated Financial Statements of the Group on the going-concern basis, except for the cases that the going-concern assumption is considered inappropriate; Design and implement effectively the internal control system in order to ensure that the preparation and presentation of the Consolidated Financial Statements are free from material misstatements due to frauds or errors. The Board of Directors hereby ensures that all the accounting books have been fully recorded and can fairly reflect the financial position of the Group at any time, and that all the accounting books have been prepared in compliance with the applicable Accounting System. The Board of Directors is also responsible for managing the Group s assets and consequently has taken appropriate measures to prevent and detect frauds and other irregularities. The Board of Directors hereby commits to the compliance with the aforementioned requirements in preparation of the Consolidated Financial Statements. 86 Annual Report 2016 Gemadept Corporation 87

of the Group as of 31 December 2016, its financial performance and its cash flows for the fiscal year then ended in conformity with the Vietnamese Accounting Standards and System and other legal

45 STATEMENT OF THE BOARD OF DIRECTORS (Cont.) Approval on the Financial Statements The Board of Directors of the Corporation approves the accompanying Consolidated Financial Statements, which give a true and fair view of the financial position of the Group as of 31 December 2016, its financial performance and its cash flows for the fiscal year then ended in conformity with the Vietnamese Accounting Standards and System and other legal regulations related to the preparation and presentation of the Consolidated Financial Statements. No. 0556/2017/BCTC-KTTV Ho Chi Minh City, 31 March 2017 For and on behalf of the Board of Directors, Do Van Minh General Director procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the Consolidated Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Group s preparation and true and fair presentation of the Consolidated Financial Statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors, as well as evaluating the overall presentation of the Consolidated Financial Statements. We believe that the audit evidences we have obtained are sufficient and appropriate to provide a basis for our audit opinion. Opinion of Auditors In our opinion, the Consolidated Financial Statements referred to above, give a true and fair view, in all material respects, of the financial position as of 31 December 2016, the financial performance and the cash flows for the fiscal year then ended of the Group in conformity with the Vietnamese Accounting Standards and System as well as legal regulations related the preparation and presentation of Consolidated Financial Statements. For and on behalf of A&C Auditing and Consulting Co., Ltd. INDEPENDENT AUDITOR S REPORT To: THE SHAREHOLDERS, THE BOARD OF MANAGEMENT AND THE BOARD OF DIRECTORS GEMADEPT CORPORATION We have audited the accompanying Consolidated Financial Statements of Gemadept Corporation (hereinafter referred to as the Corporation ) and its subsidiaries (hereinafter collectively called the Group ), which were prepared on 20 March 2017 including the Consolidated Balance Sheet as of 31 December 2016, the Consolidated Income Statement, the Consolidated Cash Flow Statement for the fiscal year then ended and the Notes to the Consolidated Financial Statements. Responsibility of the Board of Directors The Corporation s Board of Directors is responsible for the preparation, true and fair presentation of the Consolidated Financial Statements of the Group in accordance with the Vietnamese Accounting Standards and System as well as the legal regulations related to the preparation and presentation of the Consolidated Financial Statements; and responsible for the internal control as the Board of Directors determines necessary to enable the preparation and presentation of the Consolidated Financial Statements to be free from material misstatement due to fraud or error. Responsibility of Auditors Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical standards and requirements and plan and perform the audit to obtain reasonable assurance about whether the Consolidated Financial Statements of the Group are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Consolidated Financial Statements. The Ly Quoc Trung Deputy General Director Audit Practice Registration Certificate No Ho Chi Minh City, 31 March 2017 Hoang Thai Vuong Auditor Audit Practice Registration Certificate No Annual Report 2016 Gemadept Corporation 89

46 CONSOLIDATED BALANCE SHEET As of 31 December 2016 Unit: VND ITEMS CODE ENDING BALANCE BEGINNING BALANCE A - CURRENT ASSETS 100 2,140,251,676,214 2,678,066,855,242 Unit: VND ITEMS CODE ENDING BALANCE BEGINNING BALANCE B - NON-CURRENT ASSETS 200 7,977,667,319,966 6,321,234,065,044 I. Long-term receivables ,378,820, ,466,823, Long-term trade receivables Long-term prepayments to suppliers 212 1,584,788,000 1,642,000, Working capital in affiliates Long-term inter-company receivables I. Cash and cash equivalents ,469,956, ,519,085, Cash ,694,896, ,701,399, Cash equivalents ,775,059, ,817,685, Receivables for long-term loans 215 4,000,000, Other long-term receivables ,794,032, ,824,823, Allowance for long-term doubtful debts II. Fixed assets 220 2,697,536,270,457 2,431,673,132,649 II. Short-term financial investments ,716,047,075 91,441,580, Trading securities ,758,654, ,722,199, Provisions for devaluation of trading securities 122 (91,692,607,552) (79,980,618,602) 3. Held-to-maturity investments ,650,000,000 29,700,000, Tangible fixed assets 221 2,316,875,179,766 2,158,954,938,953 - Historical cost 222 4,093,225,273,192 3,813,770,290,510 - Accumulated depreciation 223 (1,776,350,093,426) (1,654,815,351,557) 2. Financial leased assets ,233,149,725 26,831,696,565 - Historical cost ,557,635,228 31,462,733,435 III. Short-term receivables 130 1,128,058,857,408 1,514,907,461, Short-term trade receivables ,010,290, ,388,818, Short-term prepayments to suppliers ,338,550, ,977,999, Short-term inter-company receivables Receivable according to the progress of construction contract Receivables for short-term loans ,730,000, Other short-term receivables ,235,855, ,830,416, Allowance for short-term doubtful debts 137 (15,255,839,381) (30,290,341,859) 8. Deficit assets for treatment ,250 IV. Inventories ,029,572, ,208,185, Inventories ,095,454, ,208,185, Allowance for inventories 149 (3,065,882,240) - V. Other current assets ,977,243,009 59,990,541, Short-term prepaid expenses ,900,008,085 9,625,095, Deductible VAT ,769,846,635 38,005,877, Taxes and other receivables from the State ,307,388,289 12,359,567, Trading Government bonds Other current assets Accumulated depreciation 226 (12,324,485,503) (4,631,036,870) 3. Intangible fixed assets ,427,940, ,886,497,131 - Initial cost ,062,062, ,888,632,122 - Accumulated amortization 229 (40,634,121,148) (27,002,134,991) III. Investment property Historical costs Accumulated depreciation IV. Long-term assets in process 240 1,823,657,063,794 1,086,215,278, Long-term work in process Construction-in-progress 242 1,823,657,063,794 1,086,215,278,045 V. Long-term financial investments 250 2,308,318,447,213 2,010,258,432, Investments in subsidiaries Investments in joint ventures and associates 252 2,149,647,691,318 1,851,025,400, Investments in other entities ,945,057, ,945,057, Provisions for devaluation of long-term financial investments 254 (117,274,301,663) (116,712,026,033) 5. Held-to-maturity investments VI. Other non-current assets ,776,717, ,620,398, Long-term prepaid expenses ,802,607, ,673,376, Deferred income tax assets ,086,668,794 16,666,429, Long-term components and spare parts Other non-current assets Goodwill ,887,441, ,280,592,652 TOTAL ASSETS ,117,918,996,180 8,999,300,920, Annual Report 2016 Gemadept Corporation 91

47 CONSOLIDATED BALANCE SHEET (Cont.) CONSOLIDATED BALANCE SHEET (Cont.) Unit: VND ITEMS CODE ENDING BALANCE BEGINNING BALANCE C - LIABILITIES 300 4,251,302,978,148 3,439,575,390,331 Unit: VND ITEMS CODE ENDING BALANCE BEGINNING BALANCE D - OWNER'S EQUITY 400 5,866,616,018,032 5,559,725,529,955 I. Current liabilities 310 2,961,152,475,919 1,660,440,833, Short-term trade payables ,037,992, ,709,540, Short-term advances from customers ,933,285,739 16,669,657, Taxes and other obligations to the State Budget ,625,494,827 83,493,987, Payables to employees ,413,458,834 85,215,622, Short-term accrued expenses ,826,893, ,715,004, Short-term inter-company payables Payable according to the progress of construction contracts Short-term unearned revenue 318 2,374,125, Other short-term payables ,314,582, ,370,324, Short-term borrowings and financial leases 320 1,578,670,998, ,635,164, Provisions for short-term payables ,180,028,854 59,783,861, Bonus and welfare funds ,775,615,525 50,847,670, Price stabilization fund Trading Government bonds II. Non-current liabilities 330 1,290,150,502,229 1,779,134,556, Long-term trade payables Long-term advances from customers Long-term accrued expenses Inter-company payables for working capital Long-term inter-company payables Long-term unearned revenue ,926,668, ,168,303, Other long-term payables ,773,339,125 67,235,955, Long-term borrowings and financial leases ,558,550,638 1,455,292,731, Convertible bonds I. Owner's equity 410 5,866,616,018,032 5,559,725,529, Capital 411 1,794,322,810,000 1,196,219,940,000 - Ordinary shares carrying voting rights 411a 1,794,322,810,000 1,196,219,940,000 - Preferred shares 411b Share premiums 412 1,872,171,604,400 2,471,474,474, Bond conversion options Other sources of capital ,797,775,902 71,797,775, Treasury stocks Differences on asset revaluation Foreign exchange differences ,531,779,733 35,081,586, Investment and development fund ,005,909,687 98,136,497, Business arrangement supporting fund Other funds ,480,642,037 60,260,991, Retained earnings 421 1,130,829,670,684 1,101,389,238,645 - Retained earnings accumulated to the end of the previous period 421a 741,089,501,313 1,101,389,238,645 - Retained earnings of the current period 421b 389,740,169, Construction investment fund Benefits of non-controlling shareholders ,475,825, ,365,024,864 II. Other sources and funds Sources of expenditure Fund to form fixed assets TOTAL LIABILITIES AND OWNER'S EQUITY ,117,918,996,180 8,999,300,920,286 Ho Chi Minh City, 20 March Preferred shares Deferred income tax liability 341 9,891,943,471 11,437,566, Provisions for long-term payables Science and technology development fund Truong Nhu Nguyen Preparer Nguyen Minh Nguyet Chief Accountant Do Van Minh General Director 92 Annual Report 2016 Gemadept Corporation 93

48 CONSOLIDATED INCOME STATEMENT (Full form) For the fiscal year ended 31 December 2016 CONSOLIDATED CASH FLOW STATEMENT (Full form) (Indirect method) For the fiscal year ended 31 December 2016 Unit: VND ITEMS CODE CURRENT YEAR PREVIOUS YEAR 1. Sales 01 3,743,839,681,801 3,593,780,842, Sales deductions 02 2,170,800,686 7,448,391, Net sales 10 3,741,668,881,115 3,586,332,451, Cost of sales 11 2,723,430,511,250 2,639,663,623, Gross profit 20 1,018,238,369, ,668,827, Financial income 21 39,239,748,206 55,700,017, Financial expenses ,966,297, ,792,615,788 In which: Loan interest expenses ,195,333, ,499,734, Gain or loss in joint ventures, associates 24 50,128,679,137 36,754,091, Selling expenses 25 62,642,490,177 44,577,748, General and administration expenses ,974,630, ,095,032, Net operating profit ,023,379, ,657,539, Other income 31 19,421,668,898 21,802,406, Other expenses ,718,457,326 6,654,042, Other profit/ (loss) 40 (116,296,788,428) 15,148,364, Total accounting profit before tax ,726,591, ,805,904, Current income tax 51 49,048,289,155 42,894,920, Deferred income tax 52 (12,056,489,050) 2,228,363, Profit after tax ,734,791, ,682,619, Profit after tax of the Parent Company ,740,169, ,359,749, Profit after tax of non-controlling shareholders 62 53,994,621,647 58,322,870, Basic earnings per share 70 2,009 2, Diluted earnings per share 71 2,009 2,096 Unit: VND ITEMS CODE CURRENT YEAR PREVIOUS YEAR I. Cash flows from operating activities 1. Profit/ (loss) before tax ,726,591, ,805,904, Adjustments: - Depreciation of fixed assets and investment properties ,812,039, ,030,210,677 - Provisions and allowances 03 20,460,706,354 (13,275,822,300) - Exchange gain/ (loss) due to revaluation of monetary items in foreign currencies 04 4,628,774,172 92,218,658,707 - Gain/ (loss) from investing activities 05 7,545,993,841 (19,926,841,785) - Interest expenses ,195,333, ,499,734,961 - Others Operating profit/(loss) before changes of working capital ,369,438, ,351,844,730 - Increase/ (decrease) of receivables 09 (36,845,435,309) (155,434,556,920) - Increase/ (decrease) of inventories 10 17,112,731,177 (15,942,131,058) - Increase/ (decrease) of payables 11 25,580,372, ,730,243,481 - Increase/ (decrease) of prepaid expenses 12 (15,363,462,828) (150,394,778,185) - Increase/ (decrease) of trading securities 13 (1,036,455,585) 3,152,363,638 - Interests paid 14 (46,336,124,778) (51,157,933,072) - Corporate income tax paid 15 (76,081,264,009) (57,917,646,092) - Other cash inflows Other cash outflows 17 (19,881,387,840) (11,170,540,189) Net cash flows from operating activities ,518,412, ,216,866,332 Ho Chi Minh City, 20 March 2017 Truong Nhu Nguyen Preparer Nguyen Minh Nguyet Chief Accountant Do Van Minh General Director 94 Annual Report 2016 Gemadept Corporation 95

49 CONSOLIDATED CASH FLOW STATEMENT (Cont.) CONSOLIDATED CASH FLOW STATEMENT (Cont.) Unit: VND ITEMS CODE CURRENT YEAR PREVIOUS YEAR II. Cash flows from investing activities 1. Purchases and construction of fixed assets and other non-current assets 21 (1,017,506,991,178) (487,094,370,924) 2. Proceeds from disposals of fixed assets and other non-current assets 22 72,982,112,955 32,116,077, Cash outflow for lending, buying debt instruments of other entities 23 (143,970,000,000) (182,955,000,000) 4. Cash recovered from lending, selling debt instruments of other entities 24 80,290,000, ,574,320, Investments into other entities 25 (292,955,940,000) (30,710,464,096) 6. Withdrawals of investments in other entities 26 4,382,494, Interest earned, dividends and profits received 27 60,234,450,611 10,466,934,495 Net cash flows from investing activities 30 (1,236,543,872,891) (470,602,502,579) Unit: VND ITEMS CODE CURRENT YEAR PREVIOUS YEAR III. Cash flows from financing activities 1. Proceeds from issuing stocks and capital contributions from owners 31-34,840,000, Repayment for capital contributions and re-purchases of stocks already issued Proceeds from borrowings ,306,971, ,114,998, Repayment for loan principal 34 (185,933,687,654) (318,155,121,128) 5. Payments for financial leased assets 35 (12,540,424,527) (5,115,405,176) 6. Dividends and profit paid to the owners 36 (271,431,192,900) (267,900,813,409) Net cash flows from financing activities ,401,666,526 (334,216,340,822) Net cash flows during the year 50 (180,623,794,234) (47,601,977,069) Beginning cash and cash equivalents ,519,085, ,132,979,299 Effects of fluctuations in foreign exchange rates ,664,775 (11,916,473) Ending cash and cash equivalents ,469,956, ,519,085,757 Ho Chi Minh City, 20 March 2017 Truong Nhu Nguyen Preparer Nguyen Minh Nguyet Chief Accountant Do Van Minh General Director 96 Annual Report 2016 Gemadept Corporation 97

50 APPENDIX 01: INCREASES/ (DECREASES) OF CONSTRUCTION-IN-PROGRESS For the fiscal year ended 31 December 2016 Unit: VND Beginning balance Increase due to business combination Increase during the year Expenses on ineffective investments Inclusion into fixed assets during the year Other decrease Ending balance Acquisition of fixed assets 49,669,071, ,233,063,265 - (124,563,788,640) (29,250,000) 55,309,096,465 Construction-in-progress 1,036,546,206, ,036,501, ,877,860,438 (53,549,027,220) (285,367,361,975) (122,196,211,619) 1,768,347,967,329 - Rach Chiec Residential Area 51,865,085, ,865,085,825 - Pacific Pride Rubber Trees - 543,036,501, ,882,185,880 (8,634,709,980) (26,829,039,120) 7,763,309, ,218,247,680 - Pacific Pearl Rubber Trees 396,935,831,640-55,436,575,740 (39,336,293,100) (3,262,233,780) 1,584,942, ,358,823,040 - Pacific Lotus Rubber Trees 419,237,117,740-48,148,751,040 (5,578,024,140) (1,181,759,280) 5,792,749, ,418,834,560 - Hau Giang Warehouse 138,397,477, ,804,679,387 - (68,390,402,136) (135,222,775,716) 165,588,978,618 - Other projects 30,110,693, ,605,668,391 - (185,703,927,659) (2,114,437,043) 9,897,997,606 Total 1,086,215,278, ,036,501, ,110,923,703 (53,549,027,220) (409,931,150,615) (122,225,461,619) 1,823,657,063,794 Ho Chi Minh City, 20 March 2017 Truong Nhu Nguyen Preparer Nguyen Minh Nguyet Chief Accountant Do Van Minh General Director 98 Annual Report 2016 Gemadept Corporation 99

APPENDIX 02: STATEMENT ON FLUCTUATION IN OWNER S EQUITY For the fiscal year ended 31 December 2016 Unit: VND Capital Share premiums Other sources of capital Exchange difference Investment and

51 APPENDIX 02: STATEMENT ON FLUCTUATION IN OWNER S EQUITY For the fiscal year ended 31 December 2016 Unit: VND Capital Share premiums Other sources of capital Exchange difference Investment and development fund Other funds Retained earnings Benefits of non-controlling shareholders Total Beginning balance of the previous year 1,161,379,940,000 2,471,474,474,400 71,797,775,902 38,199,702,355 51,499,897,853 52,475,599, ,901,253, ,574,051,080 5,164,302,695,214 Capital increased during the year 34,840,000, ,840,000,000 Profit during the year ,359,749,574 58,322,870, ,682,619,983 Increase due to business combination ,100,000, ,100,000,000 Appropriation for funds ,636,599,873 24,121,532,628 (70,758,132,501) - - Appropriation for bonus and welfare funds (37,790,074,856) - (37,790,074,856) Dividends shared during the year (239,243,988,000) (12,884,156,062) (252,128,144,062) Disbursement during the year (3,588,333,333) - - (3,588,333,333) Exchange difference (3,118,115,371) (3,118,115,371) Other increases/ (decreases) (12,747,807,815) 66,920,430,758 2,252,259,437 56,424,882,380 Ending balance of the previous year 1,196,219,940,000 2,471,474,474,400 71,797,775,902 35,081,586,984 98,136,497,726 60,260,991,434 1,101,389,238, ,365,024,864 5,559,725,529,955 Beginning balance of the current year 1,196,219,940,000 2,471,474,474,400 71,797,775,902 35,081,586,984 98,136,497,726 60,260,991,434 1,101,389,238, ,365,024,864 5,559,725,529,955 Capital increased during the year 598,102,870,000 (598,102,870,000) ,000,000, ,000,000,000 Expenses on share issuance to increase capital from share premiums - (1,200,000,000) (1,200,000,000) Profit during the year ,740,169,371 53,994,621, ,734,791,018 Appropriation for funds ,869,411,961 44,646,317,267 (77,515,729,228) - - Appropriation for bonus and welfare funds (43,540,020,104) (1,245,269,422) (44,785,289,526) Dividends shared during the year (239,243,988,000) (27,638,551,500) (266,882,539,500) Disbursement during the year (1,426,666,664) - - (1,426,666,664) Exchange difference ,450,192, ,450,192,749 Ending balance of the current year 1,794,322,810,000 1,872,171,604,400 71,797,775,902 62,531,779, ,005,909, ,480,642,037 1,130,829,670, ,475,825,589 5,866,616,018,032 Ho Chi Minh City, 20 March 2017 Truong Nhu Nguyen Preparer Nguyen Minh Nguyet Chief Accountant Do Van Minh General Director 100 Annual Report 2016 Gemadept Corporation 101

52 APPENDIX 03: SEGMENT INFORMATION ACCORDING TO THE BUSINESS SEGMENTS For the fiscal year ended 31 December 2016 Information on the Group's financial performance, fixed assets, other non-current assets and values of remarkable non-cash expenses according to the business segments is as follows: Unit: VND Port operation Logistic services Trading real estate Planting rubber trees Deductions Total Current year Net external sales 1,626,468,334,651 2,114,011,309,054 1,189,237, ,741,668,881,115 Net inter-segment sales 322,450,330, ,094,936,301-1,781,072,724 (761,326,339,792) - Total net sales 1,948,918,665,418 2,551,106,245,355 1,189,237,410 1,781,072,724 (761,326,339,792) 3,741,668,881,115 Segment financial performance 550,004,625, ,838,492,439 1,189,237,410 (11,949,235,808) (13,068,718,892) 692,014,400,691 Expenses not attributable to segments (33,393,151,220) Operating profit 658,621,249,471 Financial income 39,239,748,206 Financial expenses (150,966,297,263) Other income 19,421,668,898 Other expenses (135,718,457,326) Gain or loss in associates and joint ventures (12,909,914,890) 59,431,568,143 3,607,025, ,128,679,137 Current income tax (49,048,289,155) Deferred income tax 12,056,489,050 Profit after tax 443,734,791,018 Total expenses on acquisition of fixed assets and other noncurrent assets Total depreciation/ (amortization) and allocation of long-term prepayments Total remarkable non-cash expenses (except for depreciation/ (amortization) and allocation of long-term prepayments) 506,599,717, ,431,603,132-31,273,032, ,304,353, ,577,980, ,816,243, ,543, ,052,767, Annual Report 2016 Gemadept Corporation 103

53 APPENDIX 03: SEGMENT INFORMATION ACCORDING TO THE BUSINESS SEGMENTS (tiếp theo) The Group's assets and liabilities according to the business segments are as follows: Unit: VND Port operation Logistic services Trading real estate Planting rubber trees Deductions Total Previous year Net external sales 1,692,266,704,459 1,892,524,904,470 1,540,842, ,586,332,451,008 Net inter-segment sales 252,117,028, ,798,176, (656,915,205,013) - Total net sales 1,944,383,732,943 2,297,323,080,999 1,540,842,079 - (656,915,205,013) 3,586,332,451,008 Segment financial performance 631,757,803,832 64,932,611,616 1,540,842,079 (10,238,938,698) (13,770,276,957) 674,222,041,872 Expenses not attributable to segments (33,225,995,108) Operating profit 640,996,046,764 Financial income 55,700,017,308 Financial expenses (242,792,615,788) Other income 21,802,406,819 Other expenses (6,654,042,115) Gain or loss in associates and joint ventures (10,051,344,722) 46,805,436, ,754,091,482 Current income tax (42,894,920,925) Deferred income tax (2,228,363,561) Profit after tax 460,682,619,983 Total expenses on acquisition of fixed assets and other noncurrent assets Total depreciation/ (amortization) and allocation of long-term prepayments Total remarkable non-cash expenses (except for depreciation/ (amortization) and allocation of long-term prepayments) 101,752,897, ,484,153, ,172,151, ,409,202, ,640,257, ,958,425,488-22,031,000, ,629,683, Annual Report 2016 Gemadept Corporation 105

APPENDIX 03: SEGMENT INFORMATION ACCORDING TO THE BUSINESS SEGMENTS (tiếp theo) The Group's assets and liabilities according to the business segments are as follows: Unit: VND Current year Port

54 APPENDIX 03: SEGMENT INFORMATION ACCORDING TO THE BUSINESS SEGMENTS (tiếp theo) The Group's assets and liabilities according to the business segments are as follows: Unit: VND Current year Port operation Logistic services Trading real estate Planting rubber trees Deductions Total Ending balance Direct assets of segment 3,600,846,470,002 2,609,444,200, ,893,467,233 2,798,403,073,792-9,160,587,211,563 Unallocated assets 957,331,784,617 Total assets 10,117,918,996,180 Direct liabilities of segment 845,030,376,532 2,180,680,022,149-1,130,715,121,702-4,156,425,520,383 Unallocated liabilities 94,877,457,765 Total liabilities 4,251,302,978,148 Beginning balance Direct assets of segment 2,817,673,862,017 3,210,959,568, ,893,467,233 1,829,353,887,450-8,009,880,784,916 Unallocated assets 989,420,135,370 Total assets 8,999,300,920,286 Direct liabilities of segment 754,490,728,867 1,986,458,586, ,232,902,972-3,307,182,218,807 Unallocated liabilities 132,393,171,524 Total liabilities 3,439,575,390,331 Ho Chi Minh City, 20 March 2017 Truong Nhu Nguyen Preparer Nguyen Minh Nguyet Chief Accountant Do Van Minh General Director 106 Annual Report 2016 Gemadept Corporation 107

GMD GEMADEPT. Growing in core businesses GROWING. Vietnam Stock market Quick Note B u s i n e s s r e s u l t s. Target price 42,000

GMD GEMADEPT. Growing in core businesses GROWING. Vietnam Stock market Quick Note B u s i n e s s r e s u l t s. Target price 42,000 Vietnam Stock market Quick Note 2015 B u s i n e s s r e s u l t s GMD GEMADEPT Port operation GROWING Target price 42,000 CURRENT PRICE 34,500 40.0 35.0 30.0 25.0 20.0 03/15 04/15 05/15 06/15 07/15 08/15