Interim Results

Vietnam Opportunity Fund Limited
16 March 2005



                        Vietnam Opportunity Fund Limited
16 March 2005

                   Interim report for the period ended 31 December 2004



Chairman's Statement



I am pleased to present the interim report of the Vietnam Opportunity Fund
Limited ('the Company') for the period ended 31 December 2004. The period proved
to be positive both for the country and the Company.

Vietnam ended the year 2004 with GDP growth of 7.6%, the highest rate among the
Southeast Asia countries which averaged 6.2%. This growth was driven by three
key factors: 1) highest export turnover in the last seven years; 2) highest
foreign direct investment (FDI) committents since the Asian Financial Crisis in
1997; and 3) the growing domestic private sector, which expanded by 22.8%. The
economy is forecasted to grow by 8% in 2005.

The Company continued its strategy of targeting leading domestic companies and
made a number of investments in major privatisations of state-owned enterprises,
private sector banks and real estate projects.

Performance has been encouraging and the Company is proud that The Vietnam
Opportunity Fund was the top performing fund in Vietnam in 2004. NAV increased
21.5%, the share price increased 38% and the Company paid a 3% dividend.
Encouraging was also the increase in liquidity in the trading of the Company's
shares after the lock-up expired at the end of September.

As we enter 2005, there is strong evidence of a continuing positive investment
environment enabled through further Government reforms, growth in incomes,
increased foreign investment and exports as well as increasing integration into
the world economy as Vietnam hopes to join the WTO. I believe that the Company
is well placed to take advantage of these opportunities.



Jonathan Choi
Chairman
Vietnam Opportunity Fund

Directors

Jonathan Choi Chairman and Non-Executive Director
Mr. Choi is President of Sun Wah Group, a Hong Kong based property, financial
services, technology, infrastructure, media and food-stuffs conglomerate. He is
also Chairman of Kingsway International Holdings, a Toronto listed company, and
SW Kingsway Capital Group, a Hong Kong listed investment bank and fund manager.
He holds the position of Vice Chairman of the Chinese General Chamber of
Commerce in Hong Kong and is a member of the National Committee of the Chinese
Peoples' Political Consultative Conference (CPPCC) of the People's Republic of
China. Mr. Choi has been an active investor in Vietnam since 1971.

Horst Geicke Non-Executive Director
Mr. Geicke is a co-founder and Chairman of ACL Holdings Ltd., a China focused
private equity fund with US$100 million invested over the past seven years as
well as a founder of a manufacturing and trading business with sales of over
US$500 million. He is also the significant shareholder of Pacific Alliance Group
Holdings Limited and a director of VinaCapital Group Limited, respectively, the
ultimate and immediate parent companies of VinaCapital Investment Management
Limited. He holds the position of President of the German Chamber of Commerce in
Hong Kong and is a director of the German Chamber of Commerce in Vietnam and a
founding member and adviser to the Hong Kong - Thailand Business Council. Mr.
Geicke has over 22 years experience of operating and investing in Asia and in
particular has significant experience investing in Vietnam having made seven
direct investments in Vietnam over the past two years.

Robert Knapp Non-Executive Director
Mr. Knapp is a Managing Director of Millennium Partners L.P., a US$4 billion
multi-strategy investment fund that seeks to provide absolute returns with
minimal risk and is the Fund's largest shareholder. Mr. Knapp's investment focus
is undervalued assets, turnaround situations and emerging markets arbitrage. He
has previously led Millennium's efforts to restructure poorly performing listed
investment funds in the US, Europe and Asia.

William Vanderfelt Non-Executive Director
Mr Vanderfelt is a highly experienced institutional investor with over 30 years
experience as Managing Partner of Petercam, the leading Benelux investment bank,
in charge of Institutional Research and Sales. Mr Vanderfelt is an experienced
fund investor and acts as a board director of several listed funds. He is a
passionate proponent of good corporate governance and will help the Company
ensure that it maintains best practice in its corporate governance.

Advisory Committee

The Manager has established an advisory committee which consists of local
investment specialists, business leaders and existing and former government
officials, as it deems appropriate, to supplement the expertise of the
Management team. Excluding the Fund's Chairman Jonathan Choi, there are
currently four appointees to the advisory committee:

Bruno Schoepfer
Mr. Schoepfer joined Movenpick Holdings in 1997 as Managing Director of its Asia
Pacific regional operations and was Chief Executive Officer and Managing
Director of the Group from 1998 to 2003. Mr. Schoepfer is currently Chairman of
Movenpick Hotel and Resorts S.A., a Swiss premium hospitality company active in
the 5-star hotel and 4-star business and airport hotel markets as well as a
well-known hotel and restaurant brand in Europe. Prior to joining the Movenpick
Group, Mr. Schoepfer enjoyed a distinguished career in luxury hotel management
in Asia Pacific and Europe for over 20 years. He has previously held senior
positions in various leading international hotel groups including Mandarin
Oriental, Shangri-la, and Radisson-SAS.

Chanthol Sun
Mr. Sun is President of SC Investment Co. Ltd., which provides investment
consultancy services in Cambodia and he is also the Economic and Finance Advisor
to the President of the National Assembly of Cambodia. Mr. Sun was formerly
Cambodia's Secretary of State for Economy and Finance and Secretary General of
the Council for the Development of Cambodia. Prior to that Mr. Sun spent 16
years with General Electric in various senior management positions and was a
former member of the board of Royal Air Cambodia. Mr. Sun is a member of the
executive board of Wharton Asia, and holds a BBSA from the American University,
an AMP from the Wharton School of the University of Pennsylvania and an MPA from
the Kennedy School of Government at Harvard University. Mr. Chanthol Sun has
just been appointed as the Minister of Public Works and Transport of Cambodia.

Markus Winkler
Mr. Winkler is President of the Board of VGZ Vermoegensverwaltungs-Gesellschaft
Zurich, an independent asset management company he founded in 1973. Prior to
that, he was trained at Bank Leu AG and UBS AG. He is a founding member and a
former Vice-President of the Swiss Association of Asset Managers as well as a
founding and Board member of the Swiss Investors' Association. Furthermore, he
is a board member on a number of Dublin-listed funds investing mainly in
emerging markets. Mr. Winkler was educated at the University of Zurich and the
Business School of St. Gall.

Steven Le
Dr. Le is the Chief Investment Officer of SVL Investment Management, a
registered investment advisory firm based in California, USA. He has also been a
consultant to over 15 organisations in Vietnam including the Corporation for
Financing and Promoting Technology (FPT), Master Information Technology (MITEC),
CT-IN (telecommunications), and the Medical and Pharmaceutical Company (YTECO)
during their respective privatisation programmes. In addition to his advisory
work with the World Bank and the Hanoi People's Committee regarding these
privatisation issues, Dr. Le led a team of experts to assist and train the
Vietnamese Ministry of Finance in valuation and financial settlement procedures
for the privatisation of State-Owned Enterprises on behalf of the United Nations
Development Programme.





VIETNAM OPPORTUNITY FUND
BALANCE SHEET (unaudited)
AS AT 31 DECEMBER 2004

                       Notes       31 December    31 December     30 June 2004
                                        2004           2003
                                         US$            US$                US$
Investments
Investments in
financial assets           3      17,000,901        499,775          5,590,332
Investments in
associates                 4       5,500,992      1,097,000          2,644,276
--------------------    ------      ----------     ----------          ---------
                                  22,501,893      1,596,775          8,234,608

Current assets
Cash and cash
equivalents                5      14,060,728      7,844,875          1,650,836
Deposits and
advances                              22,980              -          1,099,065
Dividends and
other receivables                    139,182         42,437              1,483
Short-term loans
to property
project                              300,000              -                  -
--------------------    ------      ----------     ----------          ---------
                                  14,522,890      7,887,312          2,751,384
Current liabilities
Accounts payable                     130,233        359,717            154,881
Accrued expenses                      83,828         92,402             42,915
--------------------    ------      ----------     ----------          ---------
                                     214,061        452,119            197,796

Net current
assets                            14,308,829      7,435,193          2,553,588

Net assets                        36,810,722      9,031,968         10,788,196
====================    ======      ==========     ==========          =========

Shareholder's equity
Issued capital             6         319,442         95,000             95,000
Reserves                          36,491,280      8,936,968         10,693,196
--------------------    ------      ----------     ----------          ---------
                                  36,810,722      9,031,968         10,788,196
  ====================  ======      ==========     ==========          =========

Number of shares
in issue                          31,944,154      9,500,000          9,500,000

Net asset value
per share                  7         US$1.15        US$0.95            US$1.14




VIETNAM OPPORTUNITY FUND
STATEMENT OF OPERATIONS (unaudited)
FOR HALF YEAR ENDED 31 DECEMBER 2004

                         Notes    Half-year ended        Half-year Year ended 30
                                      31 December         ended 31   June 2004
                                           2004    December 2003
                                            US$              US$           US$
Income
Gain on
investments in
financial
assets                                  178,860                -       458,690
Gain on
investments in
associates                                    -                -     1,247,276
(Loss)/gain on
sales of
investments                              (1,609)               -       237,169
Foreign
exchange and
translation
(loss)/
gains, net                              (41,313)          64,352        94,227
Interest and
dividends                               461,689           20,432        45,132
Other income                              3,282                -        22,258
-----------------------   ------        ---------        ---------      --------
Total income                            600,909           84,784     2,104,752

Expenses
Organization
fees                                   (146,532)        (460,393)     (461,992)
Investment
advisory fees                          (327,139)         (61,696)     (189,460)
Professional
fees                                    (14,352)         (14,733)      (80,687)
Directors'
fees and
expenses                                (23,498)         (10,569)      (39,514)
Broker fees                             (21,829)               -       (22,472)
Trustee fees                            (10,951)          (5,425)      (19,397)
Other expenses                          (10,316)               -        (3,034)
-----------------------   ------        ---------        ---------      --------
Total expenses                         (554,617)         552,816      (816,556)

Profit/(loss)
before tax                               46,292         (468,032)    1,288,196
=======================   ======        =========        =========      ========

Tax                          9                -                -             -

Net
profit/(loss)                            46,292         (468,032)    1,288,196

Basic earnings
per share                   10         US$0.001         -US$0.05       US$0.14





VIETNAM OPPORTUNITY FUND
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR HALF YEAR ENDED 31 DECEMBER 2004

                        Issued capital  Share premium      Retained      Total
                                                         earnings
                                  US$             US$         US$          US$

Balance as at 1
July 2004                      95,000       9,405,000   1,288,196   10,788,196
Issue of shares               224,442      26,055,792           -   26,280,234
Net profit for
the period                          -               -      46,292       46,292
Dividends paid                      -               -    (304,000)    (304,000)
-------------------             -------       ---------   ---------    ---------
Balance as at 31
December 2004                 319,442      35,460,792   1,030,488   36,810,722
-------------------             -------       ---------   ---------    ---------

Balance as at 1
January 2004                   95,000       9,405,000    (468,032)   9,031,968
Net profit for
the period                          -               -   1,756,228    1,756,228
-------------------             -------       ---------   ---------    ---------
Balance as at 30
June 2004                      95,000       9,405,000   1,288,196   10,788,196
-------------------             -------       ---------   ---------    ---------

Balance as at 30                    -               -           -            -
September 2003
Issue of shares                95,000       9,405,000           -    9,500,000
Net profit for
the period                          -               -    (468,032)    (468,032)
-------------------             -------       ---------   ---------    ---------
Balance as at 31
December 2003                  95,000       9,405,000    (468,032)   9,031,968
-------------------             -------       ---------   ---------    ---------



VIETNAM OPPORTUNITY FUND
STATEMENT OF CASHFLOWS (unaudited)
FOR HALF YEAR ENDED 31 DECEMBER 2004

                           Notes   Half-year ended       Half-year Year ended 30
                                       31 December        ended 31   June 2004
                                            2004   December 2003
                                             US$             US$           US$
Cash flows from operating
activities
Profit/(loss)
for the period                            46,292        (468,032)    1,288,196
Adjustments for:
Loss/(gain) on
investments in
financial                                  1,609               -      (458,690)
assets
Gain on
investments in
associates                                     -               -    (1,230,000)
Unrealised
foreign
exchange
loss/(gain)                               41,313               -      (202,031)
Interest
income                                   (67,382)        (20,432)      (37,498)
Equity in
earnings of
subsidiaries                                   -               -       (17,276)
----------------------      ------       ---------        --------      --------
Net profit/
(loss) before
changes in
working
capital                                   21,832        (488,464)     (657,299)
Decrease/(incr
ease) in
deposit,
advances                                 638,386         (42,437)   (1,100,547)
and other receivables
----------------------      ------       ---------        --------      --------
Increase in
accounts
payable and
accrued                                   16,265         452,119       197,796
expenses
----------------------      ------       ---------        --------      --------
Net cash
provided by
(used in)
operating
activities                               676,483         (78,782)   (1,560,050)

Cash flows from investing
activities
Interest
received                                  67,382          20,432        37,405
Acquisition of
investments                          (11,886,220)       (499,775)   (8,069,568)
Proceeds from
sales of
investments                              432,729               -     2,843,048
Investment in
subsidiaries                          (2,856,716)     (1,097,000)            -
----------------------      ------       ---------        --------      --------
Net cash used
in investing
activities                           (14,242,825)     (1,576,343)   (5,189,115)

Cash flows from financing
activities
Dividends paid                          (304,000)              -             -
Proceeds from
shares issued                         26,280,234       9,500,000     8,400,000
----------------------      ------       ---------        --------      --------
Net cash flow
provided by
financing
activities                            25,976,234       9,500,000     8,400,000

Increase in
cash and cash
equivalents                           12,409,892       7,844,875     1,650,835

Cash and cash
equivalents at
the beginning
of the period                          1,650,836               -             -
----------------------      ------       ---------        --------      --------

Cash and cash
equivalents at
the end of the
period                         5      14,060,728       7,844,875     1,650,835
======================      ======       =========        ========      ========

Analysis of balance of
cash and cash
equivalents
Cash                                  13,472,993       6,842,957     1,210,419
Time deposit                             587,735       1,001,918       440,417
---------------------      -------       ---------        --------      --------
                                      14,060,728       7,844,875     1,650,836
     ===================== =======       =========        ========      ========

VIETNAM OPPORTUNITY FUND
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
FOR HALF YEAR ENDED 31 DECEMBER 2004

1.       THE FUND

Vietnam Opportunity Fund Limited was incorporated in the Cayman Island as a
company with limited liability. The registered office of the Company is PO Box
309GT, Ugland House, South Church Street, George Town, Grand Cayman, Cayman
Islands. The Company holds a 100 percent interest in the following entities,
which were incorporated in the British Virgin Islands:

   • Asia Value Investment Ltd
   • Vietnam Enterprise Ltd
   • Vietnam Investment Property Ltd
   • Vietnam Investment Property Holdings Ltd
   • Vietnam Investment Ltd
      + • Vietnam Ventures Ltd
          o • VOF Investment Ltd

    The principal activity of the Company is to invest in listed and unlisted
    companies, debt instruments, assets and other opportunities in Vietnam and
    surrounding countries with the objective of achieving medium to long-term
    (three to five years) capital appreciation and providing investors with an
    attractive level of investment income from interest and dividends.

The shares of the Fund are listed on London Stock Exchange Alternative
Investment Market (AIM). The Fund has been established with no fixed life but
the Board of Directors of the Fund (BOD) considers it desirable that
shareholders should have the opportunity to review the future of the Fund at
appropriate intervals.

2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of accounting
The financial statements expressed in United States Dollars have been prepared
under the historical cost convention and in conformity with the International
Financial Report Standards.

Cash and cash equivalents

Cash and cash equivalents include cash in bank and short-term, highly liquid
investments readily convertible to known amounts of cash and which are subject
to insignificant risk of changes in value.

Investments
Investments are initially recorded at their cost of acquisition, which generally
consists of the purchase price of the security or the fair value of the
consideration given in exchange and other costs directly related to the
acquisition. Subsequent to acquisition, the investments are carried at the
following values:

Financial assets
Financial assets consist of portfolio investments of listed and unquoted
marketable equity securities, which are carried at fair value. Fair value of a
listed security is determined by the quoted market price on the last trading day
of each quarter. Fair value of an unlisted security is determined by the price
of the most recent comparable transaction for that security, if any, before the
end of each quarter. Gains and losses are recorded in the statement of income.
The cost of securities sold is determined on a first-in first-out basis.

Associates
Investments in enterprises in which the Company has significant influence are
accounted for using the equity method, whereby the investment is originally
recorded at cost and adjusted for changes in the Company's share of the equity
of the associate since date of acquisition. The Company's share of the results
of operations of an associate is accounted for in the Statement of Income.

Investments in associates that have been acquired and are being held exclusively
for the purpose of disposing of them in the near future are carried at fair
value, determined by reference to independent appraisals performed by
professional appraisers. Gains and losses are recorded in the Statement of
Income.

Subsidiaries (parent company accounts)
Investments in subsidiaries are accounted for using the equity method. The
Company's share of the results of operations of a subsidiary is accounted for in
the Statement of Income.

Interest and dividend income

Interest income is recognised on an accrual or if applicable effective yield
basis. Dividend income is recorded when the stockholders' right to receive the
dividend is established.

Impairment of assets

The carrying amounts of the Company's assets are reviewed at each Balance Sheet
date to determine whether there is any indication of impairment. If any such
indication exists, the asset's recoverable amount is estimated. An impairment
loss is recognised whenever the carrying amount of an asset or its
cash-generating unit exceeds its recoverable amount.

Foreign currency transactions
The accounting records of the Company are maintained in United States Dollars.
Foreign currency transactions during the year are translated at the exchange
rates that approximate those prevailing on transaction dates. Foreign currency
monetary assets and liabilities at the Balance Sheet date are translated into
United States Dollars at exchange rates that approximate those prevailing on
that date. Exchange gains and losses are recognised in income for the period.

Related parties

Related parties include companies or individuals which directly or indirectly
hold significant equity interests in the Company ('Shareholders'), other
investees of shareholders ('Affiliated Companies'), subsidiary companies and
associates.



3.       INVESTMENTS IN FINANCIAL ASSETS, AT VALUE
As at 31 December 2004

                               Number of      Closing balance      Gain/(loss)
                                shares
                                                        US$                US$

Listed securities
Agifish                          8,120               18,272               (749)
Bibica                         281,410              299,676             23,988
Chau Thoi Concrete JSC          60,130              120,824             (4,955)
Gilimex                         75,580              153,306                789
Kinh Do North                  157,500              308,491             57,018
REE Corporation                428,990              647,183            (20,239)
Sacom                          304,820              734,227              4,075
Savimex                        220,140              439,554             (9,750)
Tribeco                        361,420              469,644            (53,930)
-----------------             ----------         ------------        -----------
                             1,898,110            3,191,177             (3,753)

Bonds
Municipal Bonds                150,000              981,456                  -
Dong Nai Bonds                 300,000            1,981,491                  -
-----------------             ----------         ------------        -----------
                               450,000            2,962,947                  -

Unlisted securities
Bao Minh Insurance             243,400            3,509,984            333,640
Sacombank                    1,877,924            2,458,109            (95,843)
Vinamilk                       107,365            1,561,883           (293,457)
Eximbank                        13,372              945,093            104,436
CII                             60,000              502,028              7,606
Phuong Nam Bank                400,000              329,615             25,355
ITDC                           300,000              237,703                  -
EACB                               831              210,700             20,284
Bac Ninh Company                27,200              177,358                  -
Phuong Nam Corporation         187,190              173,236             22,765
Tuong An Oil                    16,205              166,919             11,229
Sohafarm                        23,250              148,850                  -
Do Thanh Plastic                15,664              119,148             16,055
Sa Giang Export & Import
Company                         10,000               99,201             (5,705)
Southern Seed Company            4,810               86,895             25,916
VinaCafe                         6,000               56,288              4,374
Hau Giang Pharmaceutical         4,000               44,371              5,958
Geology & Mineral Company        3,000               19,396                  -
-----------------             ----------         ------------        -----------
                             3,300,211           10,846,777            182,613

                    Total    5,648,321           17,000,901            178,860
          =================   ==========         ============        ===========



4.       INVESTMENTS IN ASSOCIATES

                         Proportion of       Closing balance       Gain/(loss)
                             ownership
                            interest
                                   %                   US$                 US$

International
School Ho Chi
Minh City                         42             2,260,000                   -
KiDos Ice
Cream                             30               612,742                   -
AA Land
Company                           30               598,250                   -
34 Ton Duc
Thang                             30             1,530,000                   -
Saigon Water
Park                              70               500,000                   -
--------------------     -------------             ---------            --------
                                                 5,500,992                   -

5.       CASH AND CASH EQUIVALENTS

                                                        2004              2003
                                                         US$               US$

Cash                                              13,472,993         6,842,957
Time deposit                                         587,735         1,001,918
-------------------------------                      ---------          --------
                                                  14,060,728         7,844,875
            ===============================          =========          ========

6.       ISSUED CAPITAL
As at 31 December 2004 (US$)

Authorized:
50,000,000 ordinary shares of US$0.01 each                            $500,000

Issued, allotted:
31,944,154 ordinary shares of US$0.01 each                            $319,442

7.       NET ASSET VALUE PER SHARE

The calculation of the net asset value per share is calculated based on the net
asset attributable to the shares as at 31 December 2004 of US$36,810,722 or
US$1.15 per share.

8.       FEES

The management and performance fees are calculated based on the net asset value
of the Fund.

Management fee
VinaCapital is entitled to receive an aggregate annual fee from the Fund payable
monthly in arrears at the rate of 2.5 percent of the net asset value of the
Fund.

Performance fee
VinaCapital is also entitled to a performance fee amounting to 20 percent of the
total increase of the NAV of the Company during the course of a year with a high
water mark over an annualised compounding hurdle rate of 10 percent.

Investment Management Agreement
The Investment Management Agreement contains an indemnity in favor of the
Manager against claims by third parties except to the extent that the claim is
due to the negligence, willful default or fraud of the Manager or any party to
whom the Manager has delegated any of its functions.

The Agreement may be terminated by either party giving to the other not less
than six months notice expiring on or at any time after the second anniversary
of the commencement date of the Agreement or otherwise in circumstance (inter
alia) where one of the parties has a receiver appointed over its assets or if an
order is made or an effective resolution passed for the winding-up of one of the
parties.

Directors Fee
The fees payable to the Chairman and the other Directors are subject to the
amount of $10,000 each per annum. These fees may be waived at the discretion of
each Director.

Custodian, Administration and Registrar fee
HSBC is appointed as custodian of the assets of the Fund and as registrar and
administrator of the Fund. HSBC is entitled to receive an annual fee from the
Fund of the higher of US$18,000 or 0.08 percent of Net Asset Value per annum
with regard to the custody services to be provided and an annual fee of US$2,000
for registrar services.

9.       TAXATION

Under the law of the Cayman Islands, the Fund is not required to pay any tax to
be levied on profits, income, gains or appreciations and in addition, no tax is
to be levied on profits, income, gains, or appreciations or which is in the
nature of estate duty or inheritance tax on the shares, debentures or other
obligations of the Fund or by way of withholding in whole or part of a payment
of dividend or other distribution of income or capital by the Fund to its
members or a payment of principal or interest or other sums due under a
debenture or other obligation of the Fund.

The only Government charge to the Fund in the Cayman Islands is an annual charge
calculated on the nominal value of the authorized share capital of the Fund
which will not exceed US$660 per annum at current rates.

Under Vietnamese laws, upon remitting profits and dividends abroad or retaining
profits abroad (including gains made on capital transfers), the Fund is subject
to the tax on the amounts remitted at the rates ranging from 3 to 7 percent.
However, the profit remittance tax has been removed effective 1 January 2004 in
accordance with the newly introduced Law on Business Income Tax.

If the Fund disposes of its interest in its BVI subsidiaries, any gain will not
be subject to income tax or capital gains tax.

10.   BASIC EARNINGS PER SHARE

The calculation of the basic earnings per share for the period is calculated
based on the net profit for the half year of US$46,292 (2003: net loss of
US$468,032) and the weighted average number of 20,324,976 (2003: 9,500,000)
shares in issue during the period.

11.   FINANCIAL ASSETS AND LIABILITIES

The Company is subject to market risk, liquidity risk, credit risk, interest
rate risk and foreign currency risk, as the Company invests in listed and
unlisted investments in Vietnam.

The Company has formulated risk management policies and guidelines which govern
its overall business strategies, its balance for risk and its general risk
management philosophy and has established processes to monitor and control
transactions in a timely and accurate manner.

(a)           Market risk

Market risk is the risk that the value of a financial asset will fluctuate as a
result of changes in market prices, whether or not those changes are caused by
factors specific to the individual assets or factors affecting all assets in the
market.

The Company is exposed to market risk on all of its investments. In the case of
its listed investments, such market risk relates to the Vietnam Stock Exchange
and other exchanges where the Company's investments are listed. Details of the
Company's listed shareholdings, at the Balance Sheet date, on which the Company
has market price risk exposure, are set out on pages 24. In the case of unlisted
investments stated at fair value where the Company has market price risk
exposure, details of the Company's shareholdings are also set out on pages 24.

(b)           Liquidity risk

Liquidity risk is the risk that the Company will experience difficulty in
raising funds to meet commitments associated with financial assets. Liquidity
risk may result from an inability to sell a financial asset quickly at close to
its fair value.

The Company is exposed to liquidity risk as the majority of the Company's
investments are unlisted. Details of the Company's unlisted shareholdings, at
the Balance Sheet date, on which the Company has liquidity risk exposure are set
out on pages 24.

(c)           Interest rate risk

Interest rate risk is the risk that the value of interest-bearing assets will
fluctuate in value as a result of changes in interest rates.

(d)           Credit risk

Credit risk is the risk that one party to a financial asset will fail to
discharge its obligation and cause the other party to incur a financial loss.

The Company is exposed to credit risk on its loans receivable.

(e)           Foreign currency risk

Foreign currency risk is the risk that the value of financial assets or
liabilities will fluctuate due to changes in foreign exchange rates. The Company
is exposed to foreign currency risk from investments in countries in which the
local currency is other than United States Dollars.

12.   RISK MANAGEMENT

The Company attempts to limit its risks through a number of strategies. The
Company and its Investment Manager practice portfolio diversification, and have
adopted a range of appropriate investment restrictions and policies, including
limiting the Company's cash investment in any one investment to not more than 20
percent of the Company's capital. Nevertheless, the market in which the Company
operates and the investments that the Company makes are often inherently risky,
and there can be no assurance that the Company will not suffer loss as a result
of one or more of the risks described above, or as the result of other risks not
currently identified by management.

13.   POST BALANCE SHEET EVENTS

On 27 January 2005, the Company purchased 37,000 shares in Kinh Do South at
US$4.7 million.

14.   REPORT DISTRIBUTION

Copies of the report have been sent to shareholders and will also be available,
free of charge, from the offices of Grant Thornton Corporate Finance, Grant
Thornton House, Melton Street, Euston Square, London NW1 2EP or VinaCapital
Investment Management Limited, Unit 1703, Sun Wah Tower, 115 Nguyen Hue
Boulevard, District 1, Ho Chi Minh City, Vietnam, for a period of 30 days from
the date of the report.





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