VINACHEM

Vinachem and Unilever signed an agreement in order to strengthenthe mutual cooperation on material supply.

This is the further step continuing to implement the 2007 and2009 Understanding Memorandum. The objectives of the Understanding Memorandum is to cement and improve the strategiccooperation relationship between two partners. At the moment, the long termprocessing cooperation between Unilever and Vinachem’s companies is verysuccessful. And basing on the Memorandum, Vinachem is the strategic supplierand a part of Unilever’s supply chain now.

Unilever will support and combine with Vinachem in developingproduction and supply in Vietnam to decrease Vietnam’s import, increase export,as well as raise production price and improve competitiveness. In other words, twopartners will build new basic chemical plants.

For the time being, Unilever is buying main inputs of Vinachemand its companies. However, other materials such as LAB, Sodium sulphate, SodaAsh Light, Sorbitol and Zeolite are imported, valuing at over 100 millionUSD/year. Therefore, the Group and its companies will cooperate with Unileverto develop and produce these materials in Vietnam for the mutual benefit.

Besides, with the support of Unilever, Vinachem will exportmaterial to Unilever’s companies in Asean countries in the short term, Asia andworldwide in the long term. It is estimated that the value of domestic andexport consuming outputs is about 200-250 million USD/year. And the success inconsuming the above inputs will lead to further cooperation in exporting othermaterials such as Javel, caustic soda, sodium silicate and LAS.