MIRA INFORM REPORT

 

 

Report Date :

07.08.2012

 

IDENTIFICATION DETAILS

 

Name :

RIEKER VIETNAM LIMITED 

 

 

Registered Office :

Lot 1 Dien Nam-Dien Ngoc Industrial Zone, Dien Ban District, Quang Nam Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2009

 

 

Year of Establishment :

2004

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

The subject specializes in manufacturing and trading types of footwear

 

 

No. of Employees :

10,000

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Unknown

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Vietnam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 

SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

English Name

 

RIEKER VIETNAM LIMITED

Other Name

 

RIEKER VIETNAM COMPANY LIMITED

Vietnamese Name

 

CONG TY GIAY RIEKER VIET NAM

Trade name

 

RIEKER VIETNAM LTD

Type of Business

 

Limited liability company

Year Established

 

2004

Investment Certificate No

 

04/GP-KCN-QNA

Date Of Issuance

 

27 Feb 2004

Place of Issuance

 

Quang Nam's Industrial Zone Authority

Registered Investment Capital

 

USD 42,400,000

Chartered capital

 

USD 12,760,000

Investment Duration

 

42 years

Status

 

Unlisted

Tax code

 

4000395355

Total Employees

 

10,000

Size

 

Large

Note: According to the subject, it usually uses name RIEKER VIETNAM LIMITED.

Correct name of General Director: WALTER BAUER

The given email (d.yen@rieker.net) is email of former import-export staff of the subject, Ms. Yen. She is not working for the subject anymore.

 

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Chartered capital: 4,000,000 USD

Changed to: 12,760,000 USD

N/A

2

Subject has got former Registered Investment Capital: 13,200,000 USD Changed to: 42,400,000 USD

N/A

 


 

 

company ADDRESSES

 

Head Office

Address

 

Lot 1 Dien Nam-Dien Ngoc Industrial Zone, Dien Ban District, Quang Nam Province, Vietnam

Telephone

 

(84-510) 3743537/ 3743534

Fax

 

(84-510) 3743539

 

 

 

DIRECTORS

 

1. NAME

 

Mr. WALTER BAUER

Position

 

General Director

ID Number/Passport

 

23/34011413

Nationality

 

Australian

 

2. NAME

 

Mr. NGUYEN HOAI AN

Position

 

Deputy General Director

Resident

 

Lot 1 Dien Nam-Dien Ngoc Industrial Zone Dien Ban District, Quang Nam Province, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 903501563

 

3. NAME

 

Mr. NGO HOANG DAI VIET

Position

 

Chief of Import - Export Department

Nationality

 

Vietnamese

 

 

 

BUSINESS NATURE AND ACTIVITIES 

 

The subject specializes in manufacturing and trading types of footwear.

 


 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Materials

·         Market

 

Germany and some of Asia countries

 

EXPORT:

·         Types of products

 

Footwear

·         Market

 

Germany

 

 

BANKERS

 

1. DEUTSCHE BANK AG, HO CHI MINH CITY BRANCH

Address

 

Floor 13, 14th - Saigon Center Building- No. 65 Le Loi Street, Ben Nghe Ward, 1 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3822 2667

Fax

 

(84-8) 3822 2760

 

2. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK DA NANG BRANCH

Address

 

No.48 Tran Phu Street, , Da Nang City, Vietnam

Telephone

 

(84-511) 3830 889

Fax

 

(84-511) 3826 674

 

 

 

SHAREHOLDERS

 

1. NAME

 

RIEKER ASIA LTD

Address

 

Hong Kong

Percentage

 

100%

 


 

 

 

FINANCIAL HIGHLIGHT

 

BALANCE SHEET

Unit: Million VND

Balance sheet date

31/12/2009

31/12/2008

31/12/2007

Number of weeks

52

52

52

ASSETS

A. Current Asset

247,617

553,746

446,261

Receivables

143,321

494,021

225,319

Inventory

41,032

32,814

220,942

Cash and other current assets

63,264

26,911

0

B. Long term Asset

601,563

633,471

474,322

1. Long term account receivable

2,668

2,340

2,995

2. Fixed assets

598,895

631,131

471,327

Tangible fixed assets

595,248

627,235

379,288

+ Original cost

879,308

797,472

467,450

+ Accumulated depreciation value

284,060

170,237

88,162

Financial leasehold assets

0

 

 

Intangible fixed assets

465

32

223

Construction in progress and other long term asset

3,182

3,864

91,816

TOTAL ASSETS

849,180

1,187,217

920,583

 

LIABILITIES

Payable loans

667,505

1,054,412

771,852

Owner’s Equity

181,675

132,805

148,731

TOTAL LIABILITY AND EQUITY

849,180

1,187,217

920,583

 

PROFIT & LOSS STATEMENT 2009

1. Total Sales

544,801

2. Deduction item

0

3. Net sale

544,801

4. Costs of goods sold

438,068

5. Gross profit

106,733

6. Financial income

22,739

7. Financial expenses

43,046

8. Selling expenses and Administrative overheads

47,604

9. Net operating profit

38,822

10. Other income

3,352

11. Other expenses

457

12. Other profit /(loss)

2,895

13. Total accounting profit before tax

41,717

14. Current corporate income tax

0

15. Deferred corporate income tax

 

16. Interest from subsidiaries/related companies

 

17. Profit after tax

41,717

 

PROFIT & LOSS STATEMENT 2008 AND 2007

Total sale

1,415,741

799,626

Deductions Items

 

0

1. Net sale

1,415,741

799,626

2. Cost of goods sold and operation expense

1,420,982

797,984

3. Net income from business activities

-5,241

1,642

Income from financial activities

9,248

487

Expenditure from financial activities

77,313

487

4. Net income from financial operation

-68,065

0

Irregular income

3,152

978

Irregular expenditure

115

124

5. Irregular Profit

3,037

854

6. Total pre-tax profit

-70,269

2,496

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

N/A

Payment status

 

N/A

Financial Situation

 

Below Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Through its bank

Sale Methods

 

To contracts

Public opinion

 

Well-known

 

 

 

 

INTERPRETATION ON THE SCORES      

 

RIEKER VIETNAM LIMITED was invested into Vietnam by RIEKER ASIA LTD from Hong Kong in 2004. Subject was granted investment license No. 04/GP-KCN-QNA by Quang Nam Industrial Zone Authority on 27 Feb 2004. It got registered investment capital of USD 42,400,000 and chartered capital of USD 12,760,000. RIEKER is a well-recognized Germany shoes maker, which presented in over 62 countries over the world. It is considered one of the biggest shoes makers in Europe.

Head office of subject is located at Lot 1 Dien Nam, Dien Ngoc Industrial Zone, Dien Ban Dist., Quang Nam Province, Vietnam and it has a workshop at Lot 11 at this industrial zone. It has production capacity about 15 million pairs of leather shoes/per year. The factories would utilize modern technology and its products are distributed worldwide through established channels. Subject has a fairly large number of workers. The employees have struck many times for: low income, hard working time, suspecting food poisoning, etc. RIEKER has expanded its operation in Vietnam by investing 14 million USD constructing the second factory in Tinh Phong IP, Quang Ngai Vietnam in 2011.

Economic worldwide crisis, especially, European debt crisis has affected many countries in the world, including Vietnam. According to Vietnam Leather & Footwear Association, export turnover of footwear of Vietnam increased by 26% in 2011. Forecast for 2012, Vietnam footwear industry will be more challenging because of the import market instability, particularly in Europe. Traders said the contract for the leather shoes in the first quarter 2012 compared to 10-20% less than the period of 2011. The main reason made export market of Vietnam’s footwear declined is mainly EU market consumption tightening.

The latest financial statement of subject is not available. According to the former financial highlight, in 2009, total sales of subject fell by 62% in comparison with 2008. However, costs of goods sold only occupied 80% total sales, instead of over 100% in 2008. Therefore, the profit improved.

In general, the subject is operating normally. It is a fairly big manufacturing company, which employs more than 10,000 staffs. Caution needed with the normal and big business transaction with the subject.

 

 


 

APPENDIX

 

INDUSTRY DATA

 

Industry code

Growth speed by price compared with 1994 (%)

Total enterprises 2009

Total employees 2010

(Thous.pers.)

Annual average capital of enterprises 2009

(billion dongs)

2011

2010

Agriculture, Forestry and Fishing

4.00

2.78

8,749

23,896.3

81,559

Industry and Construction

5.53

7.70

85,115

10,630

2,751,975

Trade and Services

6.69

7.52

154,978

14,522

4,939,069

 

ECONOMIC INDICATORS

 

 

2011 

2010 

2009 

Population (Million person)

87.84

86.93

86.02

Gross Domestic Products (USD billion)

119

102.2

91

GDP Growth (%)

5.89

6.78

5.32

GDP Per Capita (USD/person/year)

1,300

1,160

1,080

Inflation (% Change in Composite CPI)

18.58

11.75

6.88

State Budget Deficit compared with GDP (%)

4.9

5.8

6.9

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2011 

2010 

2009 

Exports

96.3

72.2

57.1

Imports

105.8

84.8

69.9

Trade Balance

-9.5

-12.6

-12.8


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.47

UK Pound

1

Rs.86.60

Euro

1

Rs.68.66

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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

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

----

NB

New Business

----

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.