Provisions on Specific Reserves of SCIC

Expenses that the State Corporation must incur include:

- Expenses for investment and capital business activities directly invested by the Corporation in accordance with current laws;- Expenses for capital management activities upon receipt (including the cost to determine the state capital at the time of handover), and the cost of selling the received capital;- The original capital value received at enterprises where the Corporation carries out capital sales;- Remuneration, bonuses, and other expenses for representatives not subject to the provisions of Article 28 Decree 151/2013/ND-CP;- Other expenses as prescribed by law.

In addition, SCIC allocates provisions in accordance with legal regulations, wherein provisions for losses on financial investments are implemented as follows:

- Provisions for received capital and the capital that the Corporation decides to invest in listed companies or companies registered for trading on the stock market, based on the market price of the shares at the date of providing for the provision;- Provisions for received capital and the capital that the Corporation decides to invest in unlisted companies are based on the owner's equity on the enterprise's annual balance sheet with the Corporation's investment capital at the time of providing for the provision.

At the time of providing for the provision, if the Corporation has not received the annual financial reports of the enterprises before the provision date, it will utilize the most recently obtained (annual, quarterly) financial reports to determine the level of the provision.

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