MIRA INFORM REPORT

Report Date :

25.01.2008

IDENTIFICATION DETAILS

Name :	VIETNAM NATIONAL FOREIGN TRADE FORWARDING AND WAREHOUSING CORPORATION
Registered Office :	No.13 Ly Nam De Str, Hanoi City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	13.08.1970
Com. Reg. No.:	0106000573
Legal Form :	State Owned Enterprise
Line of Business :	Air, sea, rail road freight, multi-modal transport

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

English Name	VIETNAM NATIONAL FOREIGN TRADE FORWARDING AND WAREHOUSING CORPORATION
Vietnamese Name	CONG TY GIAO NHAN KHO VAN NGOAI THUONG
Other Name	VIETRANS INTERNATIONAL FREIGHT FORWARDER
Trade Name	VIETRANS
Other called name	VIETRANS HANOI
Founded	August 13^th 1970
Type of Business	State Owned Enterprise
Established Decision	No. 337/TM-TCCB
Date of issuance	March 31^st 1993
Place of issuance	Ministry of Trade
Current Business Registration	No. 0106000573
Former Business Registration	No. 108376
Date of issuance	April 26^th 1993
Place of issuance	Ministry of Trade
Current Registered Capital	VND 30,071,000,000
Original Registered Capital	VND 5,000,000,000
Code Tax	0100107317
Total Employees	Around 1,100 employees (including staffs & workers)
Qualification	Normal
Note: The current business of the subject was adjusted 20 times. The last times was issued on January 10^th 2008.

ADDRESS

Head Office
Address	No.13 Ly Nam De Str, Hanoi City
Country	Vietnam
Tel	(84-4) 8457417, 8438715
Fax	(84-4) 8455829
Email	vietrans@hn.vnn.vn
Website	www.vietrans.com.vn
Warehouse system in Gia Lam Dist, Hanoi city
Covered	2,500 sq meters
Open	5,500 sq meters
Warehouse system in Hoang Mai Dist., Ha Noi City
Covered	1,500 sq meters
Open	2,000 sq meters
Branches:
At the moment, the subject has branches in Hai Phong, Nghe An, Nha Trang Town (Khanh Hoa), Da Nang, Quy Nhon, Hochiminh cities.
1. VIETRANS Hai Phong
Address	No.5A Hoang Van Thu Str, Hai Phong City
Country	Vietnam
Tel	(84-31) 3842489
Fax	(84-31) 3842277
Email	vietranshaiphong@hn.vnn.vn
Director	Mr. TRINH NGOC HAU
Covered	80,000 sq meters
Open	85,000 sq meters
2. VIETRANS Nghe An
Address	No 103, Nguyen Du Str, Vinh city, Nghe An province
Country	Vietnam
Tel	(84-38) 551795
Fax	(84-38) 554560
Email	vietransna@hn.vnn.vn
Warehouse system in Vinh city (Nghe An province)
Covered	300 sq meters
Open	1.000 sq meters
3. VIETRANS Da Nang
Address	No 20, Tran Phu Str, Da Nang City
Country	Vietnam
Tel	(84-511) 821072
Fax	(84-511) 822518
Email	vietransdng@dng.vnn.vn
Director	Mr. VO MINH
Warehouse system in Vinh city (Nghe An province)
Covered	14.000 sq meters (including 5.000 sq meters of Bonded Warehouse)
Open	16.600 sq meters
4. VIETRANS Quy Nhon
Address	No 91, Le Loi Str, Quy Nhon City, Binh Dinh Province
Country	Vietnam
Tel	(84-56) 816591
Fax	(84-56) 821179
Email	vietransqnh@dng.vnn.vn
Director	Mr. NGUYEN PHUOC HOA
Warehouse system in Quy Nhon province
Covered	8.000 sq meters
Open	18.000 sq meters
5. VIETRANS Nha Trang
Address	No 21, Tran Quy Cap Str, Nha Trang Town, Khanh Hoa Province
Country	Vietnam
Tel	(84-58) 822134 / 560320
Fax	(84-58) 822134
Email	Tnt-vietransnt@dng.vnn.vn
6. VIETRANS Sai Gon
Address	No 102C, Nguyen Van Cu Str, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 9205025
Fax	(84-8) 9205024
Email	vtrsaigon@hcm.fpt.vn
Director	Mr. LE VAN HUNG
Acreage	2.500 sq meters
Joint Venture companies
1. TNT-VIETRANS EXPRESS WORLDWIDE (VIETNAM) LTD.
Address	No.151 Yen Phu Str, Tay Ho Dist, Hanoi city
Country	Vietnam
Tel	(84-4) 7150866
Fax	(84-4) 7150860
Email	tnt.vietnam@tnt.com
2. LOTUS JOINT- VENTURE COMPANY LTD.
Address	No.1A Nguyen Van Quy Str, Phu Thuan Ward, Dist 7, Hochiminh City
Country	Vietnam
Tel	(84-8) 8730146
Fax	(84-8) 8730145
Email	lotusportvn@hcm.vnn.vn

DIRECTORS

1. NAME	Mr. THAI DUY LONG
Position	General Director
Date of birth	September 10^th 1953
Passport No.	A0089520A
Issued on	October 12^th 2001
Office Tel	(84-4) 7333258
Hand Phone	+84 903424017
Resident	Group No.1, Trung Hoa Ward, Cau Giay Dist., Hanoi City
Nationality	Vietnamese
2. NAME	Mr. DO THANH SON
Position	Deputy General Director
Office Tel	(84-4) 845 4913
Hand Phone	+84 903 416071
Date of Birth	1953
Resident	Hanoi City
Nationality	Vietnamese
3. NAME	Mr. BUI THE DO
Position	Assistant of General Director
Office Tel	(84-4) 7337378
Hand Phone	(84) 904040666
Currently Resident	Hochiminh City
Nationality	Vietnamese
Note: Formerly, he was Deputy General Director of the subject.

BUSINESS NATURE AND ACTIVITIES

The subject focuses on the following lines of business:

- Air, sea, rail road freight, multi-modal transport

- Shipping agent & broker

- Shipping agent & broker

- Import& export and customs agent

- Freight forwarding on exhibition and project cargo

- Express service

- Port operation & management

- Construction service

- Door to door service

IMPORT & EXPORT ACTIVITIES

IMPORT: N/A

EXPORT: N/A

BANKERS

1. VIETNAM BANK FOR FOREIGN TRADE (VIETCOMBANK)
Address	No.198 Tran Quang Khai Str, Hoan Kiem Dist, Hanoi city
Tel	(84-4) 8244890
Fax No	(84-4) 9349527
Telex	411209 VCB
Swift	BFTVVNVX
2. INDUSTRIAL AND COMMERCIAL BANKOF VIETNAM (INCOMBANK)
Address	No.19 Tran Hung Dao Str, Hoan Kiem Dist, Hanoi city
Tel	(84-4) 9421029/ 9421158
Fax No	(84-4) 9421032
Telex	412259 ICBV- VT

SHAREHOLDERS

The subject is a State Owned Enterprises with 100 percent of State shares.

PAYMENT HISTORY AND EXPERIENCES

Trade Morality	Fairly good
Liquidity	Fair
Payment status	Fair
Past Financial Situation	Above average
Current Financial Situation	Developing
Litigation Data	No recorded
Bankruptcy	No recorded
Public opinion	Fairly good
Payment Methods	Through corresponding banks

FINANCIAL DATA

BALANCE SHEET
Balance sheet date	31/12/2006		31/12/2005
Number of weeks	52		52
Unit	VND mil		VND
ASSETS
A. Working assets & short-term Investment	63,071		79,808,431,168
I. Cash and cash equivalents	11,236		17,799,611,094
II. Short-term investment	0		0
1. Short-term securities investment	0		0
2. Other short-term investment	0		0
3. Provision for short-term investment	0		0
III. Receivables	32,298		35,261,971,023
1. Receivables from customers	11,955		13,123,429,457
2. Prepayment for providers	4,708		7,022,973,582
3. Value-added tax deducted	9		679,373
4. Internal receivables	1,421		2,128,211,943
5. Other receivables	14,205		12,986,676,668
6. Provision for bad receivables	0		0
IV. Inventory	14,240		23,603,562,351
1. Purchased goods in transit	14,240		0
2. Raw materials			37,996,914
3. Instrument, tools			8,176,818
4. Cost for production and business in process			19,286,568,018
5. End products			4,432,335
6. Goods			4,266,388,266
7. Goods on consignment			0
8. Provision for devaluation of stocks			0
V. Other current assets	5,297		3,143,286,700
1. Advances	0		2,316,530,734
2. Prepaid expenses	1,500		792,657,966
3. Pending expenses for transfer	0		0
4. Pending assets	3,797		34,098,000
5. Mortgage, collateral and short run collateral	0		0
VI. Administrative	0		0
1. Administrative expenses for previous year	0		0
2. Administrative expenses for current year	0		0
B. Fixed assets & Long term investment	132,875		94,945,118,198
I. Fixed assets	75,135		37,313,501,598
1. Tangible fixed assets	75,082		37,295,501,598
+ Original cost	131,650		69,930,482,958
+ Accumulated depreciation value	-56,568		32,634,981,360
2. Financial leasing fixed assets	0		0
+ Original cost	0		0
+ Accumulated depreciation value	0		0
3. Intangible fixed assets	53		18,000,000
+ Original cost	59		20,000,000
+ Accumulated depreciation value	-6		2,000,000
II. Long term investment	55,014		54,963,763,121
1. Long-term securities investment	0		260,000,000
2. Joint-venture capital contribution	55,014		54,703,763,121
3. Other long-term investment	0		0
4. Provision for long-term investment devaluation	0		0
III. Capital construction in process	1,624		1,696,805,389
IV. Other	1,102		971,048,090
TOTAL ASSETS	195,946		174,753,549,366
LIABILITIES
A. Payable loans	52,090		61,886,635,230
I. Short term payables	51,837		61,791,365,181
1. Short-term borrowings	6,541		6,946,115,222
2. Due long-term liabilities	0		0
3. Payables to supplier	8,424		8,980,459,690
4. Prepayment of buyer	15,521		25,654,901,882
5. Taxes and accounts dutiable	3,035		1,452,022,768
6. Employee payments	1,090		3,113,192,452
7. Internal payables	740		1,076,076,658
8. Other payables	16,486		14,568,596,509
II. Long term loans	206		0
1. Long-term borrowings	0		0
2. Long-term payables	206		0
III. Other payables	47		95,270,049
1. Payable expenses	47		81,270,049
2. Pending assets	0		0
3. Receipts long-term collateral and deposit	0		14,000,000
B. Owner’s Equity	143,856		112,866,914,136
I. Capital and Funds	141,177		108,696,168,167
1. Working capital	97,206		96,401,477,947
2. Differences from asset revaluation	28,284		0
3. Exchange rate differences	475		467,638,391
4. Development investment funds	10,004		6,550,909,450
5. Reserved funds	2,597		2,758,687,261
6. Retained profit	2,267		2,173,296,091
7. Construction capital sources	344		344,159,027
II. Other administrative and fund sources	2,679		4,170,745,969
1. Provident funds for unemployment	1,202		1,111,875,379
2. Reward and welfare funds	1,441		3,022,962,094
3. Management funds of higher level	0		0
4. Functional operation funds	36		35,908,496
5. Fund sources formed by fixed assets	0		0
TOTAL LIABILITY AND EQUITY	195,946		174,753,549,366
PROFIT & LOSE ACCOUNT (INCOME STATEMENT)
Description	FY 2006		FY 2005
Unit	VND 1mil		VND
Total revenue	140,967		98,115,919,929
Deductions Items	480		0
1. Net revenue	140,487		98,115,919,929
2. Cost of goods sold	131,135		88,953,680,226
3. Gross Profit	9,352		9,162,239,703
4. Sales expenses	0		-
5. Enterprise administrative expenses	8,974		8,306,511,042
6. Net income from business activities	378		855,728,661
Income from financial activities	11,810		13,027,489,902
Expenditure from financial activities	6,167		7,547,931,094
7. Net income from financial operation	5,643		5,479,558,808
Irregular income	1,471		963,104,865
Irregular expenditure	650		606,618,595
8. Irregular Profit	821		356,486,270
9. Total pre-tax profit	6,842		6,691,773,739
10. Income tax	205		870,348,417
11. After tax profit	6,637		5,821,425,322
FINANCIAL FACTORS
Description		FY 2006		FY 2005
Current Liquidity Ratio		1.22		1.29
Quick Liquidity Ratio		0.94		0.91
Inventory Circle		9.21		3.77
Average Receive Period		83.91		131.18
Utilizing Asset Performance		0.72		0.56
Liability / Total Asset (%)		26.58		35.41
Liability / Owner's Equity (%)		36.21		54.83
Income Before Tax / Total Asset (%) ROA		3.49		3.83
Income Before Tax / Owner's Equity (%) ROE		4.76		5.93
Income Before Tax / Total Revenue (%) NPM		4.85		6.82
Gross Profit / Total Revenue (%) GPM		6.63		9.34

INTERPRETATION ON THE SCORES

VIETRANS is a State Owned Company, was established under the decision No. 337/TM-TCCB on March 31^st 1993 by Ministry of Trade. In November 2005, the business registration of the subject was re-adjusted following of the number 0106000573 by Planning and Investment Department of Hanoi City.

Currently, it specializes in freight forwarding, transportation and warehousing of all import and export activities inland and abroad.

The head office of the subject is located at No. 13, Ly Nam De Str, Ha Noi City. It has 6 branches located in Hochiminh, Hai Phong, Nghe An, Nha Trang, Quy Nhon, and Da Nang city. These provinces which have large seaport and warehouse system are convenient for business operation of the subject. Three branches which located in Hai Phong, Dan Nang and Ho Chi Minh City are going to convert into joint stock company. Besides, the subject has 02 joint-venture companies, one of them is TNT – VIETRANS Express World Wide Ltd. This is joint venture company between VIETRANS and TNT Post Group of Netherlands.

It is the first and only joint-venture in the express freight industry in Vietnam with total investment capital of 700,000 USD. The second joint venture company is LOTUS JVC, it is joint venture between VIETRANS- Vietnam ocean shipping company (VOSA) and Black Sea Shipping Company (Blasco-Ukraine). Lotus port is able to handle heavy lifting for projected steel products, automobiles, general cargo or other requirements.

The management capability of the subject is still limited. The number of staffs is over one thousand people and trained fairly good. Sales network is large.

Generally, the subject and its members are operating fairly busy. The subject’s premises and facilities are fairly good. The subject is the first company entitled to join FIATA and to issue FBL (FIATA multi-modal transport B/L) and one of the first customs bonded trading warehousing operators. Moreover, with IATA approval for VIETRANS to act as an IATA cargo agent, the company now has proven expertise in the air freight industry. Beside, it is member of VCCI, Vietnam chamber of commerce and industry, and VIFFAS.

In comparison with other units operating in the same field, its turnover is fairly high, but the profit is low. The profitability is still weak because the subject is running as a state owned company.

Current position of the subject is fairly good. Its trademark is known widely. The turnover was increased year after year. However, because of fluctuation of cost of goods sold, the profit was not stable. Its turnover in 2004 was 82,396 million VND, in there, the profit was 9,541 million VND. In 2005, Total revenue is 98,115 million VND, increased 19.07 percent in comparison with 2004. In 2006, total revenue of the subject is 140,967 million VND, increased 43.67 percent in comparison with 2005, equivalent 42,852 million VND, and the after tax profit is 6,637 million VND.

In 2006, the subject’s fixed assets were invested more. The capital structure is safe for creditor. The inventory circle was increased and the average receive period was decreased in 2006. These things showed that the management capacity was improved. The solvency was increased a little. The prestige is fairly good.

In general, the subject is operating fairly effectively. It is estimated that the subject will be converted to joint stock company in this year - 2008. When the subject is equitized, it will achieve better result. The subject is capable to meet small and normal commitments. Caution needed for big business transactions.

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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