3.

Comparing the businesss capital structure with other competitors and industry norm:

The capital structure of the textile and garments companies in Vietnam is

comprehensively diversified with involvement of multiple economic sectors. In TCMs
case, the capital structure consists of equity attributable to shareholders (comprising share
capital, share premium, treasury shares, funds and retained earnings).

The textile industry is currently experiencing many growth difficulties. Vietnam's textile
and garment export turnover in 2016 is growing at slower rate than in previous years,
only approximately 5%. Key markets such as US, EU, Japan, and South Korea all
showed a very small increase. Since the second quarter of 2016, orders have fallen
significantly in large enterprises, export prices have also fallen by more than 10%
compared to 2015. Vitas said that 2016 is the most difficult year of the textile and
garment industry in 10 years.

For TCM, in 2017, total debt of the company amounted to VND 2,150,288,718
(accounting for 68% of total capital) This is relatively high relative to other firms in the
industry. But being a large scale enterprise with better management efficiency than that
of other enterprises in the industry through such indicators as receivable turnover,
inventory, profit-to-equity to ratio, together with a stable financial structure is seen as an
advantage for TCM in 2017 compared to other competitors and industry norm.

Usually, a company that is heavily financed by debt has a more aggressive capital
structure and therefore poses a greater risk to investors. This risk, however, may be the
primary source of the firms growth.