Message from the chairman


Dear Shareholders,


We have just exceedingly achieved the targets set out at the Company's Annual General Meeting (AGM) for the fiscal year 2016. In the context of unpredictable changes in the world, prompted from the political instability in Ukraine and Syria, creating tension between Russia and the West, led by the United State, and leading to mutual embargo sanctions that seriously affected the economy of Europe in general and Russia in particular. China, with its ambitions in the East Sea, has generated instability and friction in the region, the unity and consensus in the ASEAN community were also affected as each country member, beside the overall goal of the bloc, had its own political and economic agenda in the relationship with China. According to experts' views, China's economy was always in an alarming state that a crisis could happen at any time, resulted from an extended period of rapid but unsustainable development. The Brexit phenomenon and the wining of Donald Trump's Presidency in the United States, in stark contrast to previous predictions of most of the world's leaders, have pushed national development strategies away from integration.


Vietnam's economy failed to meet the 6.7% growth target set by the National Assembly due to slow growth in the Agricultural sector. The Mining Industry came in below expectations due to drops in oil prices and mineral prices as well as ineffective investment from the previous Administration. Inflation was 4.74%, export turnover of goods reached over USD 176.63 billion, up 9%, and import turnover reached USD 174.11, up 5.2% compared to last year. FDI disbursement reached USD 15.8 billion, up 9% over the same period. The stock market closed the last session of the year at 664.87 points, up 15% from the beginning of 2016. These figures presented rather positive results compared to the current state of the economy. However, the growth of the Index did not correspond to performance of the listed companies on the stock market, partly due to the fact that in a number of big cap companies, stock price increases were incompatible with growth, pushing the market's overall P/E upward, distorting indicators, causing difficulties for index funds, and deteriorating market confidence.


In the face of such a challenging situation, we have managed to exceed all objectives set out as we maintained the goal of sustainable development, taking safety as business principle, and transparency and mutual benefits, reflected in the vision "The Business of Success”. Securities Services continued to hold the number one position in both Exchanges, with the market shares of 13.69% on Ho Chi Minh Stock Exchange (HOSE) and 11.03% on Hanoi Stock Exchange (HNX), widening the gap from the runner-ups. Investment Banking reclaimed its leading position by a series of successful deals worth hundreds of millions of dollars, such as advisory service for offering 78.38 million shares of Vietnam Dairy Products Joint Stock Company (VNM – HOSE); advisory service for the sale of shares of Hau Giang Pharmaceutical JSC (DHG - HOSE); private placement advisory service for No Va Land Investment Group Corporation (NVL - HOSE) under the book building method - serving as a reliable service provider to both local and foreign clients. SSI Asset Management (SSIAM) increased its total asset under management to USD 350 million, being the only Vietnamese company to successfully raise funds in overseas markets, promising a new and effective channel to access capital for the economy. Treasury successfully completed its mission with SSI's total assets reaching VND 13,228 billion, of which VND 7,152.5 billion was owners' equity, effectively and safely managed the capital of both the Company and investors. The Company also obtained high credit rating in the financial market through the successful issuance of corporate bonds at interest rates equivalent to those of the commercial banks in the same period. Such achievements of the Business Units must also be credited to contributions of Supporting Units. Human Resources has recruited new staff, provided training, and proposed the Company to issue policies covering the interests of over 700 employees, ensuring a healthy working environment and healthy competition, continuing to attract talents to join the team. Information Technology kept on maintaining the well-establish technology environment ensuring smooth and fast solutions for business operations; on the other hand, spent effort on rolling out solutions to enable the business for new challenges in the market. Corporate Communications has done well to bridge the Company with the media as well as investors so that all activities of the Company are accurately reflected to the public. In 2016, SSI received many awards from reputable organizations such as "Best Local Brokerage in Vietnam" by AsiaMoney, "Best Broker in Vietnam" by FinanceAsia and Merits from the State Securities Commission and the Ministry of Finance, etc.


2017 is anticipated to be a challenging year for the domestic economy, requiring a comprehensive reform not only to cope with existing problems, including public debts, investment efficiency, inflation, budget deficit, settlement of banks' bad debts, exchange rates, etc., but also to adapt to the global situation where globalization is being challenged due to initiatives of leading countries to encourage businesses to invest domestically through tax policies. We believe in the Prime Minister's commitment to develop an enabling government, we see the potential for internal-based development as the State focuses on policy making to allocate resources, while economic sectors will leverage the resources for development as outlined in the five-year economic development plan that the government has recently submitted to the National Assembly. We hope that the recent statement made by the Chairman of the State Securities Commission on efforts to control the stock market for transparency and restoring investors' confidence is to be implemented strongly and firmly. Then we can overcome all difficulties and challenges in 2017, establishing premises for sustainable development for the next years. 2017 for SSI is a year to find success in difficult times of the economy, but also a period of great opportunity to reaffirm its pioneering position as the leading financial institution. SSI will continue to accompany sustainably developing companies, opening up access to funding through both domestic and international capital resources. We always understand that only when the number of Businesses that are transparent, efficient and sustainable increases, do Investors have more secure options, internal drive of the economy is strengthened, and the stock market can grow strongly, really becoming the most important capital channel for the economy.


I would like to express my sincere thanks to all Shareholders who have accompanied me personally and the Board of Directors (BOD) throughout the years, whereby all proposals of the BOD have been supported and approved. Thanks to the members of the BOD who have worked with me in finding solutions to implement resolutions of the AGM, thanks to the Board of Management and Directors for completing our plan, thanks to all Staff and Employees of the Company, you are the living cells of SSI today. We are also indebted to our Clients who are using SSI's services. We are always mindful that we must do our best to keep our Clients - our patrons satisfied.


We wish You good health and success!

Ho Chi Minh City, March 28th 2016

Chairman cum Chief Executive Officer


Nguyen Duy Hung