Business Update for 2007

Vietnam Opportunity Fund Limited
25 January 2008


               Vietnam Opportunity Fund: Business Update for 2007


25 January 2008


In accordance with communications to its investors, the Vietnam Opportunity Fund
('VOF' or the 'Company'), a closed-end fund traded on the AIM Market of the
London Stock Exchange, provides the market with a business update of its
investments and activities over the past year, as well as a review of the
general Vietnamese business climate.


Over the course of 2007, VOF's NAV per share rose 37.4 per cent from US$2.54 to
US$3.49.  During the year, VOF also raised US$272 million in November 2007 from
its most recent share placing to investors.


The past year has seen considerable growth on the investment front and VOF has
been particularly active during the second half of 2007, deploying a total of
US$256 million during the six month period into the private equity and
privatization spaces in a time of market softness. These investments, detailed
below according to sector, were made in accordance with the Company's investment
strategy, which is to focus primarily on deals where VOF has due diligence
rights coupled with minority protections.


Property and property development:


A total of US$102 million has been invested in companies that include Tam Phuoc
Industrial Zone, SSG-Saigon Pearl, BCCI, Intresco, Khang Dien, Cofico, SJS, and
DIC.


VOF believes that there is tremendous upside potential in these companies as
their core portfolio of assets and activities revolve around new townships
adjacent to Ho Chi Minh City and/or Hanoi and are alongside major highways,
tunnels and bridges that are currently being built.


Financial services:


A total of US$109 million has been invested in companies that include Eximbank
and Vietcombank. Financial services including banks tend to be the corner stone
of growth in emerging economies. This is also the case with Vietnam. Vietnam's
banking sector has seen asset, loan, and deposit growths well above 50 per cent
per annum over the last three years and we believe this strong growth will
continue over the next 3 to 5 years.


Consumer goods and services:


A total of US$35 million has been invested in companies that include PNJ
Jewelry, Masan and Nargajuna Sugar. VOF continues to retain a positive outlook
on Vietnamese consumer goods and services that rely on domestic consumption.
Revenue growth in this sector has ranged from 40 per cent to 100 per cent in
2007 and we believe that that this sector will continue to expand around 30 per
cent to 50 per cent per annum in 2008.


Industrial goods and services:


A total of US$10 million has been invested in companies that include Viet Han
Cable and Hoa Phat Group. The construction boom in Vietnam has yet to reach its
peak and we see continued growth in this sector, especially as the building of
offices, apartments and urban townships requires a tremendous amount of
construction materials to continue its development.



Vietnam Economic Review


Last year ended with the VN Index up 23 per cent on the year to close at 927
points. The stock market peaked in mid-March 2007 at 1,171 points and has since
declined to trade around 800 to 900 points. The correction of the stock market
could be due to a number of factors including:


 1. Tightening of credit for equity investment - the Vietnamese government has
    restricted loans collateralized by securities to 3 per cent of total loans.
    This restriction was implemented in 2007 and has caused banks to force
    borrowers to sell their securities to settle outstanding security backed
    loans;

 2. Highly priced blue chip equitizations such as Bao Viet Insurance and
    Vietcombank that have left investors unexcited about the short term
    prospects;

 3. Re-allocation to real estate investments driving prices up between 50 per
    cent to 100 per cent during the last few months; and

 4. Investors becoming more mature and aware of the various practices to
    artificially inflate prices of listed companies.


However, during this same period the average earnings growth of the top
Vietnamese companies was around 25-30 per cent, while the average
price-to-earnings 2007 ratios of these top companies ended 2007 around 20x to
23x.



During 2007, GDP grew 8.4 per cent while inflation topped at 12.6 per cent.
2006 was also a record year for FDI, with a commitment of US$12 billion and
expectations are for 2007 FDI to come in at a record US$20 billion.


A large number of international investments coupled with record high oil and
food prices has driven inflation to a level that requires reactive management by
the Vietnamese Government. Such state involvement has included the
implementation of a number of policies including increasing credit reserve
requirements, restricting equity collateralized loans and loosening the VND-US$
trading band to curb inflation.  However, it is unclear how effective these
policies will be towards absorbing excess liquidity.


Overall, the mood in the country has been extremely strong with most people
concluding that Vietnam's entry into the WTO has proven to be a great success
for 2007 and hopefully for many years to come.



Notes to Editors



VinaCapital Group is currently one of the largest fund managers in Vietnam. The
Group combines deep market experiences and strategic networks to generate
strategic investment and financing products, and many other effective merger and
acquisition activities. VinaCapital is managing total assets valued
approximately US$1.8 billion under 4 funds: Vietnam Opportunity Fund, VinaLand,
Vietnam Infrastructure Limited, and DFJ VinaCapital Technology LP.


Vietnam Opportunity Fund is the most successful fund of VinaCapital, established
in 2003 with initial capital of US$10 million, and is now worth US$1.13 billion,
investing majoring in core and fastest growing economic fields as well as many
leading companies in Vietnam.


For further information, please contact:


Ms. Chi Nguyen

VinaCapital Investment Management Limited, Investor Relations

Phone: [phone]



Philip Secrett

Grant Thornton Corporate Finance, Nominated Adviser

Phone: [phone]



Hiroshi Funaki

LCF Edmond de Rothschild Securities

Phone: [phone]

[e-mail]



Brian Cattell/Talia Druker

Finsbury Group

Phone: [phone]



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