MIRA INFORM REPORT

Report Date :

12.03.2007

IDENTIFICATION DETAILS

Name :	PROCTER AND GAMBLE VIETNAM LTD
Registered Office :	6^th Floor, Diamond Plaza, 34 Le Duan str, Ben Nghe Ward, Dist 1, Hochiminh City
Country :	Vietnam
Date of Incorporation :	1994
Legal Form :	Joint Venture Company
Line of Business :	Producing beauty care, laundry & cleaning, paper products such as Pantene, Head & Shoulders, Rejoice, Pert, Febreze, Ivory, Swiffer, Camay, Coast, Safeguard, Tide, Downy, Whisper, Pampers.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
English Name	PROCTER AND GAMBLE VIETNAM LTD
Vietnamese Name	CONG TY TNHH PROCTER & GAMBLE VIETNAM
Trade Name	P&G VIETNAM
Founded	1994
Type of business	Joint Venture Company
Investment License	1052/GP
Issued on	November 23^rd, 1994
Issued by	Ministry of Planning and Investment
Date of operation	July 01^st, 1996
Investment duration	40 years
Investment capital	83,000,000 USD
Registered capital	83,000,000 USD
Tax code	3700232756
Total employees	950 employees
Qualification	Qualified
ADDRESSES
Transaction Office
Address	6^th Floor, Diamond Plaza, 34 Le Duan str, Ben Nghe Ward, Dist 1, Hochiminh City
Country	Vietnam
Tel	(84-8) 822 5678
Fax	(84-8) 822 5578
Website	www.pg.com
Head Office / Plant
Address	Dong An Industrial Park, Binh Hoa Commune, Thuan An Dist, Binh Duong Province
Country	Vietnam
Tel	(84-650) 754 520
Fax	(84-650) 754 523
Director	Mr. JAN BEUNDER
DIRECTORS
1. NAME	Mr. SHANKAR VISWANATHAN
Position	General Director (Country Manager)
Qualification	Management
Nationality	Indian
Cell Phone	+84 913964844
2. NAME	Mr. SAMUEL GARCIA
Position	Manager of Plan
Qualification	Management
Nationality	Venezuelan
3. NAME	Mr. VU VAN THANG
Position	CFO
Resident	Hochiminh city
Nationality	Vietnamese
4. NAME	Mr. PHAM VAN BANG
Position	Former CFO
Resident	Hochiminh City - Vietnam
Nationality	Vietnamese
5. NAME	Mr. ANHUL CHUAHAN
Position	Marketing Manager
Resident	Hochiminh City - Vietnam
Nationality	Indian
6. NAME	Ms. LE THI TUYET MAI
Position	PR Manager
Resident	Hochiminh City
Nationality	Vietnamese
Hand phone	++84 903 752 280
BUSINESS NATURE AND ACTIVITIES
The subject specializes in producing beauty care, laundry & cleaning, paper products such as Pantene, Head & Shoulders, Rejoice, Pert, Febreze, Ivory, Swiffer, Camay, Coast, Safeguard, Tide, Downy, Whisper, Pampers, ...
IMPORT & EXPORT ACTIVITIES
IMPORT The imported markets of the subject are USA, France, Germany and some countries in Europe and Asia.
EXPORT The principal markets of the subject are Asia, Europe and North America. 40 percent of the Subject's products are exported, including Rejoice, Head & Shoulders, Pantene, Pert, Febreze, Ivory, Camay, Swiffer and Downy.
BANKERS
1. VIETCOMBANK - HOCHIMINH CITY BRANCH
Address	No. 29, Ben Chuong Duong Str, Dist 1, Hochiminh City, Vietnam
Tel	(84-8) 8251317
Fax No.	(84-8) 8297228
Director	Mr. Nguyen Phuoc Thanh
Telex	811234/5 VCB-VT
Swift address	BFTVVNVX007
2. CITY BANK – HOCHIMINH CITY BRANCH
Address	No.115, Nguyen Hue Str, Ben Nghe Ward, Dist 1, Hochiminh city
Country	Vietnam
Telephone.	(84-8) 8242 118
Fax	(84-8) 8242 114
Contact person	Mr. COEN DINGE MANS
Position	Chief of Branch
3. HONGKONG SHANGHAI BANK CORPORATION (HSBC)
Address	No. 235, Dong Khoi Str, Dist 1, Hochiminh city, Vietnam
Telephone	(84-8) 829 2288
Fax	(84-8) 823 0530
Swift	HSBCVNVX
SHAREHOLDERS
The subject is a Joint Venture Company. Following is its shareholders:
Foreign Partners: 93%
1. NAME	PROCTER AND GAMBLE HOLDINGS SINGAPORE PTE. LTD.
Address	238A Thomson Road, #21-01/10, Novena Square, Tower A Singapore 307684
Tel	65-6-824-5000
Fax	65-6-824-6200
Nationality	Singaporean
Shares	93%
Vietnam Partners: 7%
1. NAME	PHUONG DONG COMPANY (Member of Vinachem)
Address	40 Kim Bien Str, Ward 13, Dist 5, Hochiminh City, Vietnam.
Tel	(84-8) 8557750-8551667
Fax	(84-8) 8554723
Nationality	Vietnamese
Shares	7%
PAYMENT HISTORY AND EXPERIENCES
Trade Morality		Good
Liquidity		Good
Previous Payments		Fairly prompt
Past Financial Situation		Fast developed
Current Financial Situation		Positive
Legal Action		No recorded
Bankruptcy		No recorded
Reputation		Good
Methods of Payment		Direct payment or through its corresponding bank
Sales methods		Direct to clients or through its agents

FINANCIAL DATA
The full financial statement of the Subject is not available. Following is its financial highlight:
Unit 1,000,000 VND
Description	2005	2004
Current assets & Short term investment	338,371	244,000
Fixed assets & Long term investment	380,335	306,872
Total assets	718,706	550,872
Payable	251,030	123,310
Owner’s Equity	467,676	427,562
Total Liability and Equity	718,706	550,872
Total revenue	1,458,905	1,228,512
Deducted Items	23,634	14,961
Net revenue	1,435,271	1,213,551
Net income from business activities	38,357	51,558
Net income from financial operation	0	0
Irregular profit	91	-1,337
Total pre-tax profit	38,448	50,221
INTERPRETATION ON THE SCORES
Procter and Gamble Vietnam is a joint venture company. It was established in 1994 by joint venture between Procter and Gamble Holdings Singapore PTE. Ltd - a member of Procter & Gamble Group and Phuong Dong Company - a member of Vinachem. Both of partners are famous corporations. Procter & Gamble is the leading group in the world for products of beauty care, healthy care, food & beverages and laundry & cleaning, paper products while Vinachem is the biggest chemical corporation of Vietnam. Being established in the late of 1994, the subject has gained a stable market and high market share. In local market, the distribution system of the subject includes hundreds of thousand stores nationwide. The products of the subject are popular with most Vietnamese consumers such as shampoo Rejoice, Head & Shoulders, Pantene, Olay, Pampers, Whisper, Camay, Safeguard soap and Tide detergent. The subject has granted global P&G award for quality assurance systems and global P&G award for health, safety and environment systems. Despite the stiff competition, the company has maintained its steady growth at 30-35 percent annually. Some products have occupied a large share in the market. In 2006, the race in this field was mainly happened between P&G Vietnam and Unilever Vietnam. The advantage seems lean to P&G VN because it has suitable strategy in training and attracting high quality human resource and marketing plans. Moreover, the total expense of promotion was lower than Unilever but more effective; namely with Olay brand name in recent years made a fever with consumer in Vietnam while it cost at least 10 years with the similar brand name of Unilever Vietnam, Pond’s. That’s also happen of Pantene shampoo of P&G is well known as global brand name, meanwhile Unilever try to promote Dove’s equal to Pantene but it couldn’t. In this competition, P&G VN is more and more developed in inland and in a short period time, it might be encroach the Unilever market share. The qualification of the subject’s staff is very good. P&G now has 950 direct workers and provides jobs for 1,500 indirect workers. It spends 3 billion VND annually on training and human resources development. Management capability of the subject is good. The subject is one of the leading producers of beauty care, laundry & cleaning, paper products in Vietnam market. The total reported turnover of the subject since operation up to June 2005 has been about 320 million USD. Therefore, it now has capacity to face with any financial commitment;

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/normal.	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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