STATE BANK OF VIETNAM ----------No: 01/CT-NHNN Ref: Monetary policy and banking operations in order to curb inflation, stabilize

macroeconomics and ensure social security

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ------------------------Hanoi, 1st March 2011

In response to the Resolution No.11/NQ-CP dated 24 Feb, 2011 of the Government on main solutions to control inflation, stabilize macroeconomics, ensure social security, the Governor of the State Bank hereby requires entities of State Banks headquarter and credit institutions to complete the following tasks and solutions: 1. In 2011, implement tightened and cautious monetary policies, keep credit growth under 20% and payment methods around 15-16%, remain reasonable interest rates. 2. For credit institutions: a) Set up and implement business plan 2011 in accordance with under 20% credit growth and monetary & macroeconomics policies of Government and SBV; follow regulations of banking operation, monetary, credit and foreign exchange. In case of exceeding 20%, the credit institutions are required to inform SBV to consider the matter of maintaining Adequacy ratio in credit institutions operation and decree of influence on increasing speed of credit. b) Control credit growth, strongly adjust credits structure and improve its quality: Push business plan down to branches and located units to follow the Resolution No.11/NQCP. Follow Vietnamese law on the matter of credit allocation, ensure operation adequacy ratio as regulated by SBV; avoid shortage of disposal fund for payment; allocate prior fund for operation and production, agricultural areas, export, mutual industry and SME (small and medium enterprises) Reduce credit for non-manufacturing sectors like real estate, security; until 30th June, 2011, proportion of loans for non-manufacturing over the total loan was 22 % and it can reach 16% at 31st Dec, 2011. Otherwise, SBV will apply the required reserve ratio double the

general required reserve ratio and limit operations scope of the credit institutions within last 6 months of 2011, 2012. Ensure the recovery of foreign currency loans and limit loans for importing of nonnecessary goods. Mobilize and make loan by gold according to regulation of Circular 22/2010/TT-NHNN dated 29th Oct, 2010; then in the next time, it is needed to reduce mobilization and making loans by Gold. Save operation fees, remain at reasonable interest rate; fix mobilizing interest rate by Vietnamese and US dollar as regulated by SBV; public interest rate at website and branches, front office of the credit institutions. Fix selling and purchasing price of VND for USC according to Decision No.230/QDNHNN dated 11th Feb, 2011 Buy corporate bonds as regulated by SBV Control bad debt arising; tighten internal audit and internal rule of credit

3. For Entities located at SBVs headquarter, provide advice and recommendations to the Governor of SBV to implement 2011 tasks, mission and methods: a) Actively and effectively control monetary tools to regulate money supply; amend foreign currency loans schedule to reduce demand; reduce credit for non-manufacturing sectors to control credit scale and quality as regulated at Resolution No.11/NQ-CP. b) Effectively control refinancing interest rate, interest rate for open markets. c) Spend proportion of money supply as planned for 2011 for refinancing credit institutions which have regular loan schedule as regulated for agricultural areas, export, and mutual industry, small and medium enterprises. d) Control interest and foreign exchange market: Ensure foreign currency liquidity, price stabilization Reduce dollarization, change mobilization-loan relationship into purchasing-selling relationship among credit institutions.

Tighten Gold market control; manage and forecast international gold price fluctuation, domestic supply-demand, choose unique corporations to import Gold, regulate and stabilize gold price.

e) Amendment, supplement of penalties of gold and foreign currency violations; push up supervision of providing credit and ensure adequacy ratios: Issue legal documents instructing regulations of 2010 Credit Institutions Law in accordance with international customs and standards within competence, report to the Government and Prime Minister. Issue regulations on purchase of corporate bond from Credit Institutions, the outstanding balance of purchasing corporate bond is counted on credit growth and adequacy ratios Inspect loans on non-manufacturing for first 6 months and credit quality for the last 6 months of 2011. f) Improve communication quality to public and operate monetary policy and banking operation

4. For entities located in SBV provincial and municipal branches a) Apply Resolution No.11/NQ-CP and this Instruction to municipal and provincial institutions, check and evaluate implement of these documents. b) Cooperate with Departments and Associations located in areas to communicate and public SBV and Governments rules and policies. c) Set up methods to implement Resolution No.11/NQ-CP and this Instruction, mainly focus on: Credits scale, structure and growth of each credit institutions to be appropriate with prior mission of Resolution No.11/NQ-CP Cooperate with Departments and Associations to increase inspection, examination and penalty gold and foreign currency violations 5. To carry out by organizations.