ENSIGN SERVICES, INC

Ensign logistics (vietnam) company limited.

Item 5.06 Change in Shell Company Status. The following information in response to this Item 2.01 is keyed to the Item numbers of Form 10. Item 1. Description of Business. Effective on the Closing Date, pursuant to the Share Exchange Agreement, Timex A&S became a subsidiary of the Company. The Initial Acquisition of Timex A&S is treated as a reverse acquisition, and the business of Timex A&S became the business of the Company. At the time of the reverse acquisition, Ensign was not engaged in any active business. References in this report to, “we,” “us,” “our” and similar words refer to the Company and its subsidiary, Timex A&S, unless the context indicates otherwise, and, prior to the effectiveness of the reverse acquisition, these terms refer to Timex A&S. References to “Ensign” relate to the Company prior to the reverse acquisition. Timex A&S, in accordance with the Cooperation Agreement, is the co-owner of 28 gas stations in Vietnam, and receives revenues from the gas station business in accordance with Contribution Proportion. In addition, in accordance with the Cooperation Agreement, Timex A&S plans to develop and operate convenience stores (or Commerce and Service Complexes) throughout Vietnam, subject to obtaining financing. Timex A&S intends to open 13-14 convenience stores a year. AN INVESTMENT IN THE COMPANY’S COMMON STOCK INVOLVES A HIGH DEGREE OF RISK. IN DETERMINING WHETHER TO PURCHASE THE COMPANY’S COMMON STOCK, AN INVESTOR SHOULD CAREFULLY CONSIDER ALL OF THE MATERIAL RISKS DESCRIBED BELOW, TOGETHER WITH THE OTHER INFORMATION CONTAINED IN THIS REPORT BEFORE MAKING A DECISION TO PURCHASE THE COMPANY’S SECURITIES. AN INVESTOR SHOULD ONLY PURCHASE THE COMPANY’S SECURITIES IF HE OR SHE CAN AFFORD TO SUFFER THE LOSS OF HIS OR HER ENTIRE INVESTMENT. Risks Related to the Timex A&S Business. We will need significant additional capital, which it may be unable to obtain. Our financing requirements for the opening of our planned convenience stores will be significant. In the event that such financing is not procured, we may be forced to curtail our growth plans. There can be no assurance that such financing would be available when needed or that it would be available on acceptable terms. Furthermore, the issuance by the Company of any additional securities pursuant to any future fundraising activities undertaken by us would dilute the ownership of existing shareholders and may reduce the price of our common stock. Debt financing, if available, will require payment of interest and may involve restrictive covenants that could impose limitations on our operating flexibility. Our failure to successfully obtain additional future funding may jeopardize our ability to continue our business and operations. If our strategy is unsuccessful, it will not be profitable and our shareholders could lose their investments. There is no guarantee that our strategy will be successful or profitable. If our strategy is unsuccessful, we may fail to meet our objectives and not realize the revenues or profits from the business we pursue, which may cause the value of the Company to decrease, thereby potentially causing our stockholders to lose their investments. We may not be able to effectively control and manage our growth, which would negatively impact our operations. If our business and markets grow and develop it will be necessary for us to finance and manage expansion in an orderly fashion. We may face challenges in managing expanding service offerings and in integrating any acquired businesses with our own. Such eventualities will increase demands on our existing management, workforce and facilities. Failure to satisfy increased demands could interrupt or adversely affect our operations and cause administrative inefficiencies. We may be unable to successfully execute any of our identified business opportunities or other business opportunities that we determine to pursue. We currently have a limited corporate infrastructure. In order to pursue business opportunities, we will need to continue to build our infrastructure and operational capabilities. Our ability to do any of these successfully could be affected by any one or more of the following factors: our ability to raise substantial additional capital to fund the implementation of our business plan; our ability to execute our business strategy; the ability of our products and services to achieve market acceptance; our ability to manage the expansion of our operations and any acquisitions we may make, which could result in increased costs, high employee turnover or damage to customer relationships; our ability to attract and retain qualified personnel; our ability to manage our third party relationships effectively; and. our ability to accurately predict and respond to the changes in our industry and the evolving demands of the markets we serve. Our failure to adequately address any one or more of the above factors could have a significant impact on our ability to implement our business plan and our ability to pursue other opportunities that arise. Historical prices for motor fuel have been volatile and significant changes in such prices in the future may adversely affect our profitability. Crude oil and domestic wholesale petroleum markets are volatile. General political conditions, acts of war or terrorism and instability in oil producing regions, particularly in the Middle East, Russia and South America, could significantly impact crude oil supplies and wholesale petroleum costs. Significant increases and volatility in wholesale petroleum costs could result in significant increases in the retail price of petroleum products and in lower motor fuel gross margin per gallon. Increases in the retail price of petroleum products could impact consumer demand for motor fuel and convenience merchandise. This volatility makes it extremely difficult to predict the impact future wholesale cost fluctuations will have on our operating results and financial condition. In addition, a sudden shortage in the availability of motor fuel could adversely affect our business because our retail stores typically have a three to four day supply of motor fuel and our motor fuel supply contracts do not guarantee an uninterrupted, unlimited supply of motor fuel. A significant change in any of these factors could materially impact our motor fuel gallon volumes, motor fuel gross profit and overall customer traffic, which in turn could have a material adverse effect on our business and results of operations. The convenience store industry is highly competitive and impacted by new entrants and our failure to effectively compete could result in lower sales and lower margins. The convenience store industry in the geographic areas in which we plan to operate is highly competitive and marked by ease of entry and constant change in the number and type of retailers offering products and services of the type we plan to sell in our stores. We will compete with other convenience store chains, independently owned convenience stores, motor fuel stations, supermarkets, drugstores, discount stores, dollar stores, club stores and mass merchants. To be competitive, we must constantly analyze consumer preferences and competitors’ offerings and prices to ensure that we offer a selection of convenience products and services at competitive prices to meet consumer demand. We must also maintain and upgrade its customer service levels, facilities and locations to be competitive and attract customer traffic to its stores. We may not be able to compete successfully, and competitive pressures faced by us could have a material adverse effect on our business and results of operations. Decreases in consumer spending, travel and tourism in the areas we serve could adversely impact our business. In the convenience store industry, customer traffic is generally driven by consumer preferences and spending trends, growth rates for automobile and commercial truck traffic and trends in travel, tourism and weather. Changes in economic conditions could adversely impact consumer spending patterns and travel and tourism in our markets, which could have a material adverse effect on our business and results of operations. Terrorist attacks and threatened or actual war may adversely affect our business. Our business is affected by general economic conditions and fluctuations in consumer confidence and spending, which can decline as a result of numerous factors outside of its control. Terrorist attacks or threats, rumors or threats of war, or military or trade disruptions impacting our suppliers or our customers may adversely impact our operations. As a result, there could be delays or losses in the delivery of supplies to us, decreased sales of our products and extension of time for payment of accounts receivable from our customers. These occurrences could have an adverse impact on energy prices, including prices for our products, and an adverse impact on the margins from our operations. In addition, disruption or significant increases in energy prices could result in government imposed price controls. Any or a combination of these occurrences could have a material adverse effect on our business and results of operations. We rely on key personnel and, if we are unable to retain or motivate key personnel or hire qualified personnel, it may not be able to grow effectively. Our success depends in large part upon the abilities and continued service of its executive officers and other key employees, particularly Mr. Roderick D. Davies, our chief executive officer, and Mr. Quach Van Duc, our president. There can be no assurance that we will be able to retain the services of Mr. Davies and Mr. Duc. Our failure to retain the services of our key personnel could have a material adverse effect on us. In order to support our projected growth, we will be required to effectively recruit, hire, train and retain additional qualified management personnel. Our inability to attract and retain the necessary personnel could have a material adverse effect on us. Risks Related to Doing Business in Vietnam. Any adverse change to the economy or business environment in Vietnam could significantly affect our operations, which would lead to lower revenues and reduced profitability. Our operations are concentrated in Vietnam. Because of this concentration in a specific geographic location, we are susceptible to fluctuations in our business caused by adverse economic or other conditions in this region, including natural or other disasters. A stagnant or depressed economy in Vietnam generally, or in any of the other markets that we service, could adversely affect our business, results of operations and financial condition. Our business is subject to significant political and economic uncertainties and may be affected by political, economic and social developments in Vietnam. Over the past several years, the government of Vietnam has pursued economic reform policies. Changes in policies, laws and regulations or in their interpretations or the imposition of confiscatory taxation, restrictions on currency conversion, restrictions or prohibitions on dividend payments to stockholders, or devaluations of currency could cause a decline in the price of our common stock, should a market for our common stock ever develop. A downturn in the economy of Vietnam may slow our growth and profitability. The growth of the Vietnamese economy has been uneven across geographic regions and economic sectors. There can be no assurance that growth of the Vietnamese economy will be steady or that any downturn will not have a negative effect on our business. Restrictions on currency exchange may limit our ability to receive and use our revenues effectively. All of our revenues and most of our expenses are denominated in the Vietnamese Dong. If revenues denominated in the Vietnamese Dong increase or expenses denominated in Vietnamese Dong decrease in the future, we may need to convert a portion of our revenues into other currencies to meet our foreign currency obligations, including, among others, payment of dividends declared, if any, in respect of the Company’s ordinary shares. It will be extremely difficult to acquire jurisdiction and enforce liabilities against our officers, directors and assets based in Vietnam. Substantially all of our assets will be located in Vietnam and the majority of our officers and present directors reside outside of the United States. As a result, it may not be possible for United States investors to enforce their legal rights, to effect service of process upon our directors or officers or to enforce judgments of United States courts predicated upon civil liabilities and criminal penalties of our directors and officers under Federal securities laws. Moreover, management has been advised that Vietnam does not have treaties providing for the reciprocal recognition and enforcement of judgments of courts with the United States. Further, it is unclear if extradition treaties now in effect between the United States and Vietnam would permit effective enforcement of criminal penalties of the Federal securities laws. Risks Related to the Company’s Common Stock. There is not an active liquid trading market for the Company’s common stock. The Company’s common stock is registered under the Securities Exchange Act of 1934, as amended, and is currently included for quotation on the OTC Bulletin Board. However, there is no regular active trading market in the Company’s common stock, and we cannot give an assurance that an active trading market will develop. If an active market for the Company’s common stock develops, there is a significant risk that the Company’s stock price may fluctuate dramatically in the future in response to any of the following factors, some of which are beyond our control: variations in our quarterly operating results; announcements that our revenue or income are below analysts’ expectations; general economic slowdowns; sales of large blocks of the Company’s common stock; announcements by us or our competitors of significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments; and. fluctuations in stock market prices and volumes, The Company’s common stock will be subject to the “penny stock” rules of the SEC, which may make it more difficult for stockholders to sell the Company’s common stock. The Securities and Exchange Commission has adopted Rule 15g-9 which establishes the definition of a "penny stock," for the purposes relevant to us, as any equity security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, the rules require: that a broker or dealer approve a person's account for transactions in penny stocks; and. the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased. In order to approve a person's account for transactions in penny stocks, the broker or dealer must: obtain financial information and investment experience objectives of the person; and. make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks. The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the Commission relating to the penny stock market, which, in highlight form: sets forth the basis on which the broker or dealer made the suitability determination; and.

that the broker or dealer received a signed, written agreement from the investor prior to the transaction. Disclosure also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and the rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks. The regulations applicable to penny stocks may severely affect the market liquidity for the Company’s common stock and could limit an investor’s ability to sell the Company’s common stock in the secondary market. As an issuer of “penny stock,” the protection provided by the federal securities laws relating to forward looking statements does not apply to the Company. Although federal securities laws provide a safe harbor for forward-looking statements made by a public company that files reports under the federal securities laws, this safe harbor is not available to issuers of penny stocks. As a result, the Company will not have the benefit of this safe harbor protection in the event of any legal action based upon a claim that the material provided by the Company contained a material misstatement of fact or was misleading in any material respect because of the Company’s failure to include any statements necessary to make the statements not misleading. Such an action could hurt our financial condition. The Company has not paid dividends in the past and does not expect to pay dividends for the foreseeable future. Any return on investment may be limited to the value of the Company’s common stock. No cash dividends have been paid on the Company’s common stock. We expect that any income received from operations will be devoted to our future operations and growth. The Company does not expect to pay cash dividends in the near future. Payment of dividends would depend upon our profitability at the time, cash available for those dividends, and other factors as the Company’s board of directors may consider relevant. If the Company does not pay dividends, the Company’s common stock may be less valuable because a return on an investor’s investment will only occur if the Company’s stock price appreciates. We will be required to evaluate our internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act. Failure to timely comply with the requirements of Section 404 or any adverse results from such evaluation could result in a loss of investor confidence in our financial reports and have an adverse effect on the trading price of our equity securities. Our independent auditors, advised us in connection with the completion of their audit for fiscal 2008 that they had identified certain matters involving the operation of our internal controls that they consider to be a material weakness, of which we need to reassess our existing finance organization resource requirements and re-evaluate the design and operating effectiveness of certain controls surrounding the financial statement close process where several adjustments that were made in the course of the audit process that, in their view, should have been identified and resolved by the Company as part of the internal close process. Until we are able to effectively correct the identified material weakness, there could be a risk of accounting errors, which could have an adverse affect on our operations or financial results. There is no guarantee that the changes we implement will be effective. We currently are not an “accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended. Beginning with our Annual Report for the year ended December 31, 2008, Section 404 of the Sarbanes-Oxley Act of 2002 requires us to include an internal control report with our Annual Report on Form 10-K. That report must include management’s assessment of the effectiveness of our internal control over financial reporting as of the end of the fiscal year. This report must also include disclosure of any material weaknesses in internal control over financial reporting that we have identified. Additionally, for the fiscal year ended December 31, 2009 our independent registered public accounting firm will be required to issue a report and their evaluation of the operating effectiveness of our internal control over financial reporting. Our assessment requires us to make subjective judgments and our independent registered public accounting firm may not agree with our assessment. Achieving compliance with Section 404 within the prescribed period may require us to incur significant costs and expend significant management resources. If we are not able to complete our assessments as required under Section 404 in a timely manner, we and our independent registered public accounting firm would be unable to conclude that our internal control over financial reporting is effective. As a result, investors could lose confidence in our reported financial information, which could have an adverse effect on the trading price of our securities. In addition, our independent registered public accounting firm may not conclude that our internal control over financial reporting is operating effectively. We will continue to consistently improve our internal control over the financial reporting with our best efforts and we plan to engage assistance from outside experts in doing so. Timex A&S Overview. Timex A&S is a joint stock Vietnamese company organized on January 28, 1999. It supplies petrol, lubricants, LPG gas, and fuel. It is currently purchasing fuel from three suppliers, of which are Petec, PVOild and Saigon Petro are three of only ten companies in Vietnam currently allowed by the national government to import fuel. Timex A&S is one of the key suppliers of gasoline to factories in area industrial parks and has 28 petrol stations in Dong Nai and adjacent provinces. It had revenues of US$63.8 million and a net profit of US$0.6 million in 2007. In 2008 Timex A&S had revenues of US$91.9 million with a net profit of about US$1.4 million. Timex A&S’s retail business network dominates the market in the province with gas stations spread along the main traffic routes and important points in southeast provinces of Vietnam. For this reason, Timex A&S’s retail fuel operation contributes to the business and financial development of Dong Nai Province as well as serving the local residents within Dong Nai and neighboring provinces. At present, Timex A&S is the second largest fuel supplier in Dong Nai. Timex A&S will seek to grow its customer base through its existing framework of gas stations, a respected name brand and well-known customer service. Though the current gas stations generate significant revenues, profit margins are comparatively low, as is true of most retail stations that supply only gasoline. The Company believes the combined gas station and convenience store concept, however, which has yet to be introduced to the Vietnam market by any competitor, will drive much higher profit margins to the gas station business. Timex A&S’s revenues will be derived from the convenience stores which it plans to build as well as the related real estate, while Timex Petrol Trade will maintain operation of the gas stations. Timex A&S’s Gas Station Business--Overview. Timex A&S currently co-owns 28 gas stations in Vietnam. These gas stations are located on the major national routes, key intersections and industrial parks of Dong Nai province, near Ho Chi Minh City (“HCMC” or Saigon). Ten additional gas stations are planned within the next three years, subject to obtaining financing, with land already identified and secured. Following the closing of the reverse acquisition, Timex A&S will own the real estate on which these gas stations are situated. Timex A&S is making aggressive efforts to build gas stations in industrial parks in Long Thanh district in the best and available real estate zones. Most of Timex A&S’s new gas stations will be located around Vietnam’s upcoming international airport. Timex A&S’s Planned Convenience Stores--Overview. Timex A&S intends to expand the gas stations it currently owns to include convenience stores (“c-stores”), which it will own. Convenience stores are a new concept in Vietnam. It is anticipated that the petrol stations will be co-owned by Timex A&S and Timex Petrol Trade while the convenience stores will be owned by Timex A&S. Timex A&S’s concept of a “convenience store” is defined as follows: Physical building size of less than 5,000 ft; Have off-street parking and/or convenient pedestrian access; Extended hours of operation with many open 24 hours, seven days a week; Stock at least 500 stock-keeping units (SKUs); Product mix includes grocery type items, and also includes items such as beverages and snacks (including confectionery). Timex A&S plans to employ Point-of-Purchase (“POP”) and traffic-driving promotions, as well as strategically designed store layouts and plan-o-grams supported by extensive research and industry specific data. Timex A&S plans to build out the brand as a “Community Service Center” (referred to above as a “Commerce and Service Center”) and become an anchor business for the local community. Rather than a petrol station that offers a few food items to purchase, the Community Service Centers (“CSC”) will serve to draw local residents to the stations for many reasons beyond filling their gas tanks or buying a few items that they may need in an emergency. Unlike in some countries where convenience stores are mainly for buying snacks, cigarettes or alcohol, Timex A&S believes that Vietnam’s convenience stores will evolve into a unique place where customers can do everything from paying their bills, sending a fax or purchasing phone cards for calls overseas. The goal of the concept is for the stores to not only be residents’ corner stores, but also their post office, bank, home office and much more. Timex A&S will thus seek to drive traffic and create demand. DVD and video rentals; Services on behalf of approved financial and government institutions (such as paying utility bills, taxes, etc.); Renewal of auto insurance and registration; Purchase of tickets to local sports and cultural events; Downloadable ringtones/wallpapers for mobile phones; Internet access stations; Post boxes and “Fed Ex Type” services; Purchase phone cards or receive/send wired funds. Many of these services can be provided by partnering with existing service providers (such as local governments, etc.). Timex A&S believes that by building out such a concept, local residents will have a much stronger reason to visit its planned convenience stores and spend money. Vietnam is one of Southeast Asia’s fastest growing economies, trailing only China; the country has the second-fastest growing economy with 8-9 percent growth in 2005, 2006 and 2007 and 6.2 percent in 2008 [Vietnam Overview, U.S Department of State 2009, http://www.state.gov/r/pa/ei/bgn/4130.htm]. Vietnam’s growth rate exceeded that of many countries in the region such as Thailand, Malaysia, Taiwan and South Korea. [VietnamAccess 2007 http://www.vietnamaccess.com/VNAC-Main/VietnamEconomy2007.htm ] The shift away from a centrally-planned economy to a more market-oriented economic model has improved the quality of life for many Vietnamese. Per capita income rose from US$220 in 1994 to US$1,024 in 2008 [Vietnam Overview, U.S Department of State 2009, http://www.state.gov/r/pa/ei/bgn/4130.htm]. The average Vietnamese savings rate is about 30% [Vietnam Overview, U.S Department of State 2009, http://www.state.gov/r/pa/ei/bgn/4130.htm]. However, the Vietnamese government still holds a tight rein over major sectors of the economy such as the banking system through large state-owned enterprises. The government has plans to reform key sectors and partially privatize state-owned enterprises, but implementation has been gradual and the state sector still accounts for approximately thirty-six percent of GDP. [Vietnam Overview, U.S Department of State 2009, http://www.state.gov/r/pa/ei/bgn/4130.htm. The 2001 entry-into-force of the Bilateral Trade Agreement (BTA) between the U.S. and Vietnam was a significant milestone for Vietnam’s economy and for normalization of U.S.-Vietnam relations. Bilateral trade between the United States and Vietnam has expanded dramatically from US$2.91 billion in 2002 to US$ 15.7 billion in 2008 [Vietnam Overview, U.S Department of State 2009, http://www.state.gov/r/pa/ei/bgn/4130.htm]. Implementation of the BTA, which includes provisions on trade in goods and services, enforcement of intellectual property rights, protection for investments, and transparency, has fundamentally changed Vietnam’s trade policies and helped it prepare to integrate into the World Trade Organization (WTO). Following the conclusion of bilateral negotiations with interested WTO members and completion of multilateral negotiations in 2006, the WTO General Council approved the terms for Vietnam’s membership on November 7, 2006. Vietnam formally acceded to the WTO as its 150th member on January 11, 2007. [Vietnam Overview, U.S Department of State 2009, http://www.state.gov/r/pa/ei/bgn/4130.htm. Vietnam Exports and Imports. [East Asia & Pacific Update: Key Indicators 2008] Vietnam was granted unconditional Normal Trade Relations (NTR) status by the United States in 2006. To meet the obligations of WTO membership, Vietnam revised nearly all of its trade and investment laws and guiding regulations. As a result, foreign investors and those seeking to sell goods and services to the increasingly affluent Vietnamese population will benefit from the improved legislative framework and lower trade barriers. Local firms that have heretofore enjoyed a range of protections, meanwhile, will experience increased competition. In 2006, the Government of Vietnam reasserted its goal of becoming a middle-income country by 2010. That would entail raising the average per capita income to at least US$1,000 from the 2007 average of US$832. [Global EDGE, Vietnam: Economy http://globaledge.msu.edu/countryInsightes/economy.asp?countryID=179®ionID=3 ] The gross domestic product (GDP) growth rate of nearly 6.23 percent in 2008, compared to 8.5 percent in 2007 [Vietnam Overview, U.S Department of State 2009, http://www.state.gov/r/pa/ei/bgn/4130.htm], was one of the highest in Asia. Industry and construction made up 39.91 percent of the developing country’s economy, followed by the service sector with 38.1 percent, and agriculture, forestry and fisheries with 21.99 percent [Vietnam Overview, U.S Department of State 2009, http://www.state.gov/r/pa/ei/bgn/4130.htm. http://www.vnep.org.vn/Web/Content.aspx?distid=5490&lang=vi-VN ]. Surpassing many neighbors including China, the rate of exports to the United States is rising faster with an impressive trade surplus. In 2008 while importing $US2,8 billion from the U.S., Vietnam exported to the U.S $US12.9 billion worth of goods. [Vietnam Overview, U.S Department of State 2009, http://www.state.gov/r/pa/ei/bgn/4130.htm. Vietnam currently has 86.2 million people of which sixty percent are under age 27. The country’s young labor pool is one of many important factors that appeal to foreign companies. WTO membership would induce more Foreign Direct Investment (FDI) in Vietnam and create more jobs opportunities. [VnEconomy] Top Ten Foreign Direct Investment (granted license) Industries in Vietnam. (January – October 2008 in USD million) Source: General Statistics Office 2008, http://www.gso.gov.vn/default.en.aspx?tabid=501&thangtk=10/2008. By the end of 2007, there were more than 8,600 foreign investment projects in Vietnam with total registered capital of US$83.1 billion of which more than sixty percent was in the South — the demand center of the country. [Sukania 2008, Vietnam – The next petrochemical hub? http://www.icis.com/Articles/2008/07/21/9140832/vietnam-poised-to-become-major-petchem-production-center.html ] The Company believes strong economic growth, ongoing reform and a large population (more than half of which is under the age of thirty) have combined to create an attractive commercial environment in Vietnam. While sales of equipment and technologies associated with implementation of major infrastructure projects continues to be a major source of commercial activity for foreign investment in Vietnam, opportunities in the consumer and services sectors are beginning to emerge with continuing disposable income growth. The Company believes aviation, telecommunications, information technology, oil and gas exploration and power generation will likely continue to offer the most promising opportunities over the next few years as infrastructure needs continue to expand with Vietnam’s pursuit of rapid economic development. TWO MAPS OF DONG NAI PROVINCE. Dong Nai is located in the eastern part of South Vietnam, east of Ho Chi Minh City. It is surrounded by Binh Phuoc in the north, Lam Dong and Binh Thuan in the east, Ba Ria-Vung Tau in the south, Binh Duong, and Ho Chi Minh City in the west. With an area of 5,866 sq. km, accounting for 1.76 percent of the nation’s natural area or 25.5 percent of the Southeastern natural area, the population in 2007 is approx. 2.3 million. Dong Nai enjoys stable economic development in industry, construction, service, agriculture, forestry, and fishery. According to the Provincial Competitiveness Index (PCI) reports released by the Vietnam Chamber of Commerce and Industry (VCCI) in 2005 and 2006, Dong Nai was in the top seven provinces rated most favorable to private sector dynamism and growth. Abutting Ho Chi Minh City (HCMC), the national hub of economic activities and transportation, Dong Nai has the combined advantages of lower land and transportation costs compared to HCMC and adjacent areas. In addition, the province boasts diversified geography, abundance in natural resources, good quality utilities and other infrastructure, adequate available labor, and the favorable absence of natural disasters that help boost its attractiveness to investors. Being the first province or city in the southeastern region of Vietnam to build an industrial park, Dong Nai has maintained the reputation for innovation and effective economic leadership since then and has become the province with the largest number of industrial parks in Vietnam. POPULATION BREAKOUT OF DONG NAI PROVINCE.