MIRA INFORM REPORT

Report Date :

08.12.2007

IDENTIFICATION DETAILS

Name :	FOREIGN TRADE DEVELOPMENT AND INVESTMENT CORPORATION
Registered Office :	No.28 Phung Khac Khoan Str, Dakao Ward, Dist 1 , Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	March 31^st, 1989
Legal Form :	Joint – Stock Company
Line of Business :	Produce and manufacture products for export, such as : seafood, agricultural products, wooden products, industrial and handicraft products

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
Current English Name	FOREIGN TRADE DEVELOPMENT AND INVESTMENT CORPORATION
Former English Name	FISHERIES DEVELOPMENT CORP OF HOCHIMINH CITY
Vietnamese Name	CONG TY CO PHAN NGOAI THUONG VA DAU TU TP HOCHIMINH
Trade Name	FIDECO
Founded	March 31^st, 1989
Type of Business	Joint – Stock Company
Business registered No	059081
Date of Issuance	December 27^th, 1993
Place of Issuance	Planning and Investment Department of Hochiminh City
Current Registered Capital	50,898,800,000 VND
Former registered Capital	11,758,000,000 VND
Tax Code	0300590663
Employment	80 Employees
Qualification	Qualified
ADDRESS
Head Office
Address	No.28 Phung Khac Khoan Str, Dakao Ward, Dist 1 , Hochiminh City
Country	Vietnam
Tel	(84-8) 8221043; 8221044, 8290580
Fax	(84-8) 8225241
Email	fideco@fidecovn.com
Website	www.fidecovn.com
DIRECTORS
1. NAME	MR. TRAN HUU CHINH
Position	General Director
Qualification	Management
Resident	14C 10, Thao Dien Str, Thao Dien ward, Dist 2, Hochiminh City
Nationality	Vietnam
2. NAME	MR. HUYNH KHANH QUOC
Position	Deputy General Director
Resident	Hochiminh City-Vietnam
Nationality	Vietnam
3. NAME	MR. MAI NGOC YEN
Position	Deputy General Director
Qualification	Bachelor
Current resident	Hochiminh-Vietnam
Nationality	Vietnam
4.NAME	MR. NGUYEN THE HAU
Position	Deputy General Director
Qualification	MBA
Current resident	Hochiminh City-Vietnam
Nationality	Vietnam

BUSINESS NATURE AND ACTIVITIES
Trading Produce and manufacture products for export, such as : seafood, agricultural products, wooden products, industrial and handicraft products; Direct import and export; Business development and joint venture with local and foreign partners. Real estate development activities Residential and commercial development and construction; Develop and manage infrastructure projects; Own and mange commercial properties.
The subject registered in the following lines of business: Produce and manufacture exported, direct import – export, sell & purchase raw material and consuming goods, business co-operation and joint venture with local and foreign partners, commercial services. Labour Export: supplying informatics engineers to foreign software companies, cooperation in activities. Real estate development activities. Civil construction. Infrastructure projects. Office leasing. Construction materials distribution. Consulting in various areas of management: general management, administrative management, production management, human resource management, quality system management, information management. Offering consulting services to client companies. To establish management systems To apply management theories. To diagnose and forecast. To train in quality and operational management. To audit quality management systems. To solve management problems.
IMPORT & EXPORT ACTIVITIES
IMPORT: The subject imports Agricultural products, Construction materials, Consuming goods, canned and Prepared Foods, Medical Equipments from Japan, Hong Kong, Singapore, Indonesia, Taiwan, Thailand, Malaysia, Australia, Korea, Switzerland, Germany, The Netherlands, France, Italia, Poland, The United States of America,... The Subject imports materials from China, Japan and Indonesia.
EXPORT: Subject exports frozen seafood like shrimp, fish, cuttle fish fillet; rice, coffee bean, Zoya beans, Tea, Ceramics, Bamboo wares… to Japan, Hong Kong, Singapore, Korea… The Subject exports its products to European countries.
BANKERS
VIETCOMBANK – HOCHIMINH CITY BRANCH
Address	No. 29 Ben Chuong Duong Str, Hochiminh City
Tel	(84-8) 8215788 / 83215789
Fax No	(84-8) 8297228
Telex	811234/5 VCB-VT
Swift address	BFTVVNVX007
EXIMBANK – HOCHIMINH ITY
Address	No.7 Le Thi Hong Gam Str, Dist No.1, Hochiminh City
Country	Vietnam
Phone Number	(84-8) 821 0055
Fax number	(84-8) 829 6063
Telex	812690 EIB VT
SWIFT	EBVIVNVX
Director	Mr. Truong Van Phuc
VIETNAM MARITIME COMMERCIAL JOINT-STOCK BANK – HOCHIMINH CITY
Address	No.26-28 Ha Ba Trung Str, Hochiminh City
Country	Vietnam
Phone Number	(84-8) 8222177
Fax number	(84-8) 8222141
Telex	311 260 MSB VT
SHAREHOLDERS
The subject is a joint-stock company. Its stocks are traded on the OTC market. It plans to be listed company on stock market of Vietnam at the beginning of 2009.
Current main shareholders:
1. CONFIDEC COMPANY
Address	No.28, Tu Xuong Str, Dist 3, Hochiminh City-Vietnam
Representative Person	VO HUE TRAN
Position	Director of CONFIDEC
Born	March 02, 1944
Qualification	Management
Nationality	Vietnamese
2. EXIMBANK
Address	No.7, Le Thi Hong Gam Str, Dist 1, Hochiminh City, Vietnam
Representative Person	NGUYEN NHAT HONG
Qualification	Management
Nationality	Vietnamese
3. CONG TY TNHH LD CON DAO
Address	No.51, Ba Cu Str, Vung Tau City-Vietnam
Representative Person	LE VAN DUNG
Position	Director of CTY TNHH LD CON DAO
Born	June 13, 1958
Qualification	Management
Nationality	Vietnamese
4. CONG TY THUY SAN VA XNK CON DAO (CONDAO FISHERIES & IMPORT-EXPORT CO )
Address	Con Dao Dist, Ba Ria Vung Tau Province, Vietnam
Representative Person	NGUYEN TRUONG SON
Position	Deputy Director of CTY THUY SAN VA XNK CON DAO
Born	July 15^th, 1959
Qualification	Management
Nationality	Vietnamese

5. MR. DO HOANG HAI (represented for 56 shareholders, who are staffs of Fideco)
Position		Chairman of board of management of FIDECO
Born		January 09^th, 1941
Qualification		Management
Resident		No. 46 Truong Dinh Str, Dist 3, Hochiminh City
Nationality		Vietnam
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Fair
Liquidity		Above average
Current Payment Status		Fair
Past Financial Situation		Fair
Current Financial Situation		Fair
Legal Action		Many
Bankruptcy		No Recorded
Reputation		Normal
Mode of Payment		Direct payment or through its corresponding bank. D/A, L/C, TTR
Sales methods		Directly to clients & through its network agents.
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance Sheet Date			31/12/2006	31/12/2005
Number of Weeks			52	52
ASSETS
A -	CURRENT ASSETS		237,380	166,419
I.	Cash and cash equivalents		9,811	1,191
1.	Cash		9,811	1,191
2.	Cash equivalents		0	0
II.	Short-term investments		0	0
1.	Short-term investments		0	0
2.	Provisions for short-term investment of short- term investments in securities		0	0
III.	Accounts receivable		74,979	50,971
1.	Receivable from customers		23,316	5,977
2.	Repayments to suppliers		21,903	18,041
3.	Value-added tax deducted		0	0
4.	Inter- company receivable		0	0
5.	Receivable according to the process of construction contracts		29,760	26,953
6.	Other receivable		0	0
IV.	Inventories		147,318	113,628
1.	Inventories		147,318	113,628
2.	Provisions for devaluation of inventories		0	0
V.	Other current assets		5,272	629
1.	Short-term repaid expenses		85	0
2.	Taxes receivable		5,187	629
3.	Other current assets		0	0
B -	LONG TERM ASSETS		135,651	79,217
I.	Long term accounts receivable		0	0
1.	Long term accounts receivable from customers		0	0
2.	Long term inter- company receivable		0	0
3.	Other long term receivable		0	0
4.	Provisions for bad debts		0	0
II.	Fixed assets		64,011	33,359
1.	Tangible assets		1,616	11,888
	Original costs		5,672	15,322
	Accumulated depreciation		-4,056	-3,434
2.	Financial leasehold assets		0	0
	Original costs		0	0
	Accumulated depreciation		0	0
3.	In-tangible assets		12,400	12,400
	Original costs		12,400	12,400
	Accumulated depreciation		0	0
4.	Construction in progress		49,995	9071
III.	Investment property		16,044	17161
	History costs		20,896	20896
	Accumulated depreciation		-4,852	-3735
IV.	Long term investments		53,026	25,838
1.	Investments in affiliates		21,000	0
2.	Investments in business concerns and joint ventures		8,499	11,308
3.	Other long term investments		23,527	14530
4.	Provisions for devaluation of investments in securities		0	0
V.	Other long term assets		2,570	2,859
1.	Long term repaid expenses		2,570	2,859
2.	Deferred income tax		0	0
3.	Other long term assets		0	0
	TOTAL ASSETS		373,031	245,636
LIABILITIES
A -	LIABILITIES		323,049	206,304
I.	Short term liabilities		179,483	131,233
1.	Short term debts and loans		37,394	24,047
2.	Payable to suppliers		7,864	3,127
3.	Advances from customers		5,957	3,483
4.	Taxes and other obligations to the State Budget		235	610
5.	Payable to employees		0	0
6.	Accrued expenses		34,222	34222
7.	Inter- company payable		0	0
8.	Payable according to the progress of construction contracts		0	0
9.	Other payables		93,811	65,744
II.	Long term liabilities		143,566	75,071
1.	Long term account payable to suppliers		0	0
2.	Long term inter- company payable		0	0
3.	Other long term payable		0	0
4.	Long term debts and loans		143,315	74,820
5.	Deferred income tax		251	251
B -	OWNER’S EQUITY		49,982	39,332
I.	Owner’s equity		50,877	40,280
1.	Capital		20,088	20,088
2.	Share premiums		8,777	8777
3.	Treasury stocks		-515	-515
4.	Differences on asset re-valuation		0	0
5.	Foreign exchange differences		0	0
6.	Business promotion fund		2,274	1,175
7.	Financial reserved fund		1,077	662
8.	Other funds		0	0
9.	Retained earnings		19,176	10,093
II.	Other sources and funds		-895	-948
1.	Bonus and welfare funds		-895	-948
2.	Sources of expenditure		0	0
3.	Funds to form fixed assets		0	0
	TOTAL LIABLITIES AND OWNER’S EQUITY		373,031	245,636
PROFIT & LOSE ACCOUNTS
	Description		F/Y 2006	F/Y 2005
1.	Sales		111,795	50,882
2.	Deductions		0	0
3.	Net sales		111,795	50,882
4.	Costs of goods sold		101,679	30,843
5.	Gross profit		10,116	20,039
6.	Financial income		25,612	4,078
7.	Financial expenses		4,982	3,979
	- In which : Loan interest expenses		0	0
8.	Selling expenses		1,206	667
9.	Administrative overheads		10,229	8,758
10.	Net operating profit		19,311	10,713
11.	Other income		0	0
12.	Other expenses		0	736
13.	Other profits		0	-736
14.	Profit (loss) before tax		19,311	9,977
15.	Income tax		4,276	1920
16.	Profit (loss) after tax		15,035	8,057
FINANCIAL FACTORS
Description			FY 2006	FY 2005
Current Liquidity Ratio			1.32	1.27
Quick Liquidity Ratio			0.50	0.40
Inventory Circle			0.78	0.27
Average Receive Period			244.80	365.64
Utilizing Asset Performance			0.30	0.21
Liability / Total Asset (%)			86.60	83.99
Liability / Owner's Equity (%)			646.33	524.52
Income Before Tax / Total Asset (%) ROA			5.18	4.06
Income Before Tax / Owner's Equity (%) ROE			38.64	25.37
Income Before Tax / Total Revenue (%) NPM			17.27	19.61
Gross Profit / Total Revenue (%) GPM			9.05	39.38
INTERPRETATION
The subject is a big joint stock company. It has been popular in trading and investment. The subject was supported from many state owned enterprises, which are shareholders of FIDECO. The subject has been invested in many fields, many domestic companies and joint venture with some foreign companies. The subject’s premise is good & standard, management capability is good. Currently, its business activities seem to be busy. The subject’s shares now are transacted for staffs in company and public sale on OTC market. According to the reported financial statement, its turnover & profit capability is increasing. Current position in the industry is remarkable. The overall operation of the subject is considered effective. Payments are prompt and financial position is adequate. It is considered to be good for normal business engagement. The subject has been much busy in recent years. Its structure to be more active and more effective for business in marketing mechanize can. The subject is satisfactory for payments and no caution needed for normal transaction.
The company has ADEQUATE capacity to meet financial commitments.

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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