MIRA INFORM REPORT

Report Date :

27.02.2008

IDENTIFICATION DETAILS

Name :	PROCTER AND GAMBLE VIETNAM CO., LTD
Registered Office :	Dong An Industrial Park, Binh Hoa Commune, Thuan An Dist, Binh Duong Province,
Country :	Vietnam
Financials (as on) :	2006
Date of Incorporation :	1994
Legal Form :	Joint Venture Company
Line of Business :	Producing Beauty Care, Laundry & Cleaning, Paper Products

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 CO., LTD
Vietnamese Name	CONG TY TNHH PROCTER & GAMBLE VIETNAM
Trade Name	P&G VIETNAM
Founded	1994
Type of business	Joint Venture Company
Investment License	No. 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	900 employees
Qualification	Qualified
ADDRESSES
Transaction Office
Address	6^th Floor, Diamond Plaza, 34 Le Duan Str, Ben Nghe Ward, Dist 1, Hochiminh City
Vietnam	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, Vietnam
Tel	(84-650) 754 520
Fax	(84-650) 754 523
Director	Mr. TORNTET SUPVATARATA
DIRECTORS
1. NAME	Mr. SHANKAR VISWANATHAN
Position	General Director (Country Manager)
Qualification	Management
Nationality	Indian
Cell Phone	+84 913964844
2. NAME	Mr. NGUYEN TIEN HUNG
Position	Vice General Director
Qualification	Management
Nationality	Vietnamese
3. NAME	Mr. SAMUEL GARCIA
Position	Manager of Plan
Qualification	Management
Nationality	Venezuelan
4. NAME	Mr. VU VAN THANG
Position	Financing and External Relations Manager
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	Admin Associate
Resident	Hochiminh City
Nationality	Vietnamese
Hand phone	(84) 903 752 280
7. NAME	Ms. DANG THI THU HA
Position	Personnel Manager
Resident	Hochiminh City
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject specializes in the following activities: · Producing beauty care, laundry & cleaning, paper products such as Pantene, Head & Shoulders, Rejoice, Pert, Febreze, Ivory, Swiffer, Camay, Coast, Safeguard, Tide, Olay, 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 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
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 percent)
1. NAME	PROCTER AND GAMBLE HOLDINGS SINGAPORE PTE. LTD.
Address	238A Thomson Road, #21-01/10, Novena Square, Tower A Singapore 307684, Singapore
Tel	65-6-824-5000
Fax	65-6-824-6200
Shares	93 %
VIETNAM PARTNERS (7 percent)
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
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 financial highlight:
Unit 1,000,000 VND
Description		2006	2005	2004
Current assets & Short term investment		392,586	338,371	244,000
Fixed assets & Long term investment		372,272	380,335	306,872
Total assets		764,858	718,706	550,872
Payable		239,630	251,030	123,310
Owner’s Equity		525,228	467,676	427,562
Total Liability and Equity		764,858	718,706	550,872
Total revenue		1,737,520	1,435,271	1,228,512
Deducted Items		46,149	23,634	14,961
Net revenue		1,691,371	1,435,271	1,213,551
Net income from business activities		20,101	38,357	51,558
Net income from financial operation		-3,601	0	0
Irregular profit		0	91	-1,337
Total pre-tax profit		16,500	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, Downy fabric conditioner 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. For example, the share of Downy in the market in 2005 is about 36.1 percent, up 2.2 percent over 2004, shampoos holds 24.8 percent, up 4 percent, and Pampers is 37.6 percent, up 12.4 percent and it’s increasing well in recent years. Among P&G subsidiaries around the world, P&G Vietnam has one of the highest growth rates. The premises and facilities of the subject are standard. The plant of the subject is equipped with advanced machines and modern equipments. The qualification of the subject’s staff is very good. It has a strict recruitment policy. It spends 3 billion VND annually on training and human resources development. In recently, 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. In this competition, P&G VN is more and more developed in inland and in a short period time, it might be encroach the market share of Unilever. Management capability of the subject is good. The subject’s sales are very good. It is one of the leading producers of beauty care, laundry & cleaning, paper products in Vietnam market. P&G products are well known not only as high-class products, but also as good products and affordable for popular people. A half of volume of the company’s products are sold outside major cities and directly distributed in provinces and cities. P&G Vietnam has thought about long-term and potential benefits by maximizing the number of partners, distributors and suppliers. The company has continuously worked on cost reduction to pass on to customers (price reduction and quality upgrade). The subject’s financial situation is healthy. Its turnover capability is regularly increasing. However, according to reported figures, its profit ability has been reduced in recent years. The position in the industry of the subject is very good and its competitive capability is strong. At present, the subject has the large market share in Vietnam and its potential for development is bright.
The company has STRONG capacity to meet its 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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