HCMC RETAIL REPORT

4Q08
Retail Market Overview
Vietnam was ranked as the most attractive emerging market destination for retail investment in 2008, according to A.T. Kearneys annual Global Retail Development Index. Ho Chi Minh City has seen demand for retail space outstripping supply. This has caused an increase in rental rates in the prime locations and has boosted the level of leasing activities. Occupancy rates in the primary locations are high and are set to remain high into 2009. Vietnam's membership to the WTO will open up the sector to 100% owned foreign retailers from 1st January 2009. Meanwhile, there is scarcity of available space to meet the large demand from retailers. Asking rents of some major projects has been pushed to a new high compared with the same period last year. Despite the pressure of inflation in 2008, the total retail sales increased by 30.9% during 11 months to November 2008, according to a Report of the General Statistic Office. New Supply Our research shows that new retail completions in 2008 totalled approximately 38,882 sq m, including Alta Plaza (Tan Binh District); Lotte Mart (District 7) and Now Zone (District 1). Another 146,598 sq m of new retail supply is scheduled to enter the market in 2009, subject to completion. Current Stock Ho Chi Minh City currently has 162,196 sq m of retail space stock in 2008, which is insufficient to meet increasing demand. Lotte Mart and Now Zone were launched in mid December providing 32,882 sq m of new retail space. Prime streets such as Dong Khoi and Le Loi are increasingly dominated by international brands like Versace, Gosto, CK etc, while local retailers move out to secondary locations. Vietnam retail outlook in 2009 As a result of the recent global slow down, we have seen consumers gradually tight the expenditure towards the end of the year 2008. The General Statistic Office has released data indicating that consumer spending slightly increased by 6.2% which is low rate of growth compared to the same period of previous year which came in at 10%. We expect the Vietnam retail sector space demand to slow in 2009 as international retailers slow down their expansion plans to focus on their core markets in the current economic climate. ECONOMIC INDICATORS
LATEST RELEASE 2007 2006

Real GDP Growth CPI Growth Retail Sales Household Income Unemployment
Source: Vietnam General Statistics Office

4Q08 Nov.08 4Q08 4Q08 2Q08

F 8.2% 20.71% 30.9% F$1000 5.1%

8.5% 12.6% 22.8% $833 5.8%

8.2% 6.6% 20.2% $720 6.06%

LOCATION LOWER

RENT /SQM/MTH UPPER

SHORT TERM TREND

CBD Airport Airport link Chinatown Racecourse Van Thanh Phu My Hung

50 30 30 15 16 15 15

290 90 90 90 60 50 60

Source: Cushman & Wakefield Research Notes: 1.* Net rent is on a net floor area basis and excludes outgoings such as management fee and VAT etc. 2.* Asking rents are based on ground floor in prime locations in major shopping centers. 3. The exchange rate: USD 1 = VND 16,500

MAJOR NEW SUPPLY IN THE NEXT 6 MONTHS

PROJECT NAME LOCATION TYPE GFA (SQ M) DATE OF OPENING

Saigon Paragon Asiana Plaza Saigon Pearl Phase 1 Ruby Apartment Lotte Department Store - Everich C.T Plaza Le Thanh Ton

Phu My Hung CBD Van Thanh Racecourse CBD

Shopping Centre Shopping Centre Shopping Centre Department Store Department Store

8,000 6,680 2,700 22,000 12,402

1Q09 1Q09 1Q09 3Q09 4Q09

Source: Cushman & Wakefield Research

HIGHLIGHTED PROPERTIES
LOTTE MART
Address: Location Opening Date: Total Retail Area: Asking rent (US$/ sqm)

469 Nguyen Huu Tho street District 7 18th Dec 2008 21,000 15-35

NOW ZONE
Address: Location Opening Date: Total Retail Area: Asking rent (US$/ sqm)

235 Nguyen Van Cu street District 1, CBD Fringe 4th Dec 2008 11,882 50-90

For industry-leading intelligence to support your real estate and business decisions, go to Cushman & Wakefields Knowledge Center at www.cushmanwakefield.com/knowledge For further information, please contact Toby Dodd, General Manager, Vietnam Tel: +(84) 8 2914 707 E-mail: toby.dodd@ap.cushwake.com www.cushmanwakefield.com

This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. 2008 Cushman & Wakefield, Inc. All rights reserved.