MIRA INFORM REPORT

 

 

Report Date :

11.12.2012

 

IDENTIFICATION DETAILS

 

Name :

PHUOC HUNG COMPANY LIMITED

 

 

Registered Office :

379 Nguyen Cuu Phu Street, Hamlet 4, Tan Kien Commune, Binh Chanh District, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

1999

 

 

Reg. No.:

0302524345

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Manufacturing and trading agricultural chemicals, fertilizer

 

 

No. of Employees :

350

 

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 :

No Complaints

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Vietnam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

vietnam - ECONOMIC OVERVIEW

 

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

 

Source : CIA

 


 

 

 

SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

Registration English Name

 

PHUOC HUNG COMPANY LIMITED

Registration Vietnamese Name

 

CONG TY TNHH THUONG MAI - SAN XUAT PHUOC HUNG

Registration Short name

 

PHU CO., LTD

Type of Business

 

Limited liability company

Year Established

 

1999

Business Registration No.

 

0302524345

Date of Registration

 

02 Oct 2012

Place of Registration

 

Business Registration Office - Planning and Investment Department of Ho Chi Minh City

Chartered capital

 

VND 15,000,000,000

Tax code

 

0302524345

Total Employees

 

350

 

Historical Identification & Legal form

 

List

Changed Items

1

Subject has got former Registered English Name: PHUOC HUNG PROCESSING AND TRADING CO., LTD

Changed to: PHUOC HUNG COMPANY LIMITED

2

Subject has got former Business Registration No: 4102008258 issued on 23 Jan 2002

Changed to: 0302524345

3

Subject has got former Chartered capital: VND 3,500,000,000

Changed to: VND 15,000,000,000

4

Subject has got former Address: D16/8D Hamlet 4 Tan Kien Village, Binh Chanh District, Ho Chi Minh City, Vietnam

Changed to: 379 Nguyen Cuu Phu Street, Hamlet 4, Tan Kien Commune, Binh Chanh District, Ho Chi Minh City, Vietnam

 

 

ADDRESSES

 

Head Office

Address

 

379 Nguyen Cuu Phu Street, Hamlet 4, Tan Kien Commune, Binh Chanh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 37600681 / 37602325

Fax

 

(84-8) 37600282 / 37602432

Email

 

phucodaubo@yahoo.com.vn

Website

 

www.phanbondaubo.net

 

Workshop Address

Address

 

E9/199B, Group 9 Hamlet 6, Tan Nhut Commune, Binh Chanh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3885 9841

Fax

 

(84-8) 3760 0682

 

Branch in Ho Chi Minh

Address

 

B5/6 Nguyen Huu Tri, Quarter 2, Tan Tuc Town, Binh Chanh District, Ho Chi Minh City, Vietnam

 

 

 

DIRECTORS

 

1. NAME

 

Mr. PHAM NGOC EM

Position

 

General Director

Date of Birth

 

30 Jun 1972

ID Number/Passport

 

023900196

ID Issue Date

 

28 Feb 2002

ID Issue Place

 

Police Station of Ho Chi Minh City

Resident

 

No. D16/8D, Hamlet 4, Tan Kien Commune, Binh Chanh District, Ho Chi Minh City, Vietnam

Tel/Mobile phone

 

++84 903 800 478

Nationality

 

Vietnamese

 

2. NAME

 

Mr. NGUYEN VAN QUY

Position

 

Deputy Director - Sale Manager

Tel/Mobile phone

 

++84 918226619

Nationality

 

Vietnamese

 

3. NAME

 

Mr. VO HOANG MINH

Position

 

Human Resource Manager

Tel/Mobile phone

 

++84 958299200

Nationality

 

Vietnamese

 

4. NAME

 

Mr. BUI MINH TAM

Position

 

Administration Manager

Tel/Mobile phone

 

++84 919049899

Nationality

 

Vietnamese

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject specializes in manufacturing and trading agricultural chemicals, fertilizer

Following are subject’s registered business activities:

Manufacture of basic chemicals, fertilizer and nitrogen compounds, plastics and synthetic rubber in primary forms
Wholesale of waste and scrap and other products n.e.c
Wholesle of construction materials, installation supplies
Machining; treatment and coating of metals
Manufacture of fertilizer and nitrogen compounds
Manufacture of plastics products
Manufacture of prepared animal, fish, poultry feeds
Freshwater aquaculture
Other transportation support activities
Wholesale on a fee or contract basis
Manufacture of soft drinks; production of mineral waters and other bottled waters

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Market

 

China

 

EXPORT:

Note: Currently, the subject does not export

 

 

 

BANKERS

 

1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM SAI GON BRANCH

Address

 

No.503-505 Nguyen Trai Street, Ward 7, District 5, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38550330

SWIFT Code

 

BIDVVNVX310

 

2. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT BINH CHANH BRANCH

Address

 

No.494 Hung Vuong Street, An Loc Town, Binh Chanh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38750736

Fax

 

(84-8) 38750262

SWIFT Code

 

VBAAVNVXAXXX

 

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. PHAM NGOC EM

Position

 

General Director

Date of Birth

 

30 Jun 1972

ID Number/Passport

 

023900196

Issued on

 

28 Feb 2002

Issued Place

 

Police Station of Ho Chi Minh City

Resident

 

No. D16/8D, Hamlet 4 Tan Kien Commune, Binh Chanh District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 8,250,000,000

Percentage

 

55%

 

2. NAME

 

Ms. PHAM NHU NGOC

Date of Birth

 

04 Aug 1989

ID Number/Passport

 

341413359

Issued on

 

28 Jun 2004

Issued Place

 

Dong Thap Police Department

Resident

 

No. 220/TX, Hamlet 5A Truong Xuan Commune, Thap Muoi District, Dong Thap Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 2,250,000,000

Percentage

 

15%

 

3. NAME

 

Ms. TRAN THI THANH HOA

ID Number/Passport

 

023243603

Resident

 

20/D3 Street 3/2, Ward 12 , 10 District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 4,500,000,000

Percentage

 

30%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

75,054,802,883

76,310,000,000

I. Cash and cash equivalents

314,946,019

553,000,000

1. Cash

314,946,019

553,000,000

2. Cash equivalents

0

0

II. Short-term investments

1,853,400,000

108,000,000

1. Short-term investments

1,853,400,000

108,000,000

2. Provisions for devaluation of short-term investments

0

0

III. Accounts receivable

11,876,025,084

32,538,000,000

1. Receivable from customers

11,838,030,109

32,500,000,000

2. Prepayments to suppliers

0

0

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

37,994,975

38,000,000

6. Provisions for bad debts

0

0

IV. Inventories

55,516,282,969

38,521,000,000

1. Inventories

55,516,282,969

38,521,000,000

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

5,494,148,811

4,590,000,000

1. Short-term prepaid expenses

965,895,916

0

2. VAT to be deducted

4,222,306,843

4,590,000,000

3. Taxes and other accounts receivable from the State

305,946,052

0

4. Other current assets

0

0

B. LONG-TERM ASSETS

12,353,844,767

6,748,000,000

I. Long term accounts receivable

0

0

1. Long term account receivable from customers

0

0

2. Working capital in affiliates

0

0

3. Long-term inter-company receivable

0

0

4. Other long-term receivable

0

0

5. Provisions for bad debts from customers

0

0

II. Fixed assets

5,712,999,379

6,605,000,000

1. Tangible assets

5,334,460,108

6,516,000,000

- Historical costs

8,624,394,372

7,890,000,000

- Accumulated depreciation

-3,289,934,264

-1,374,000,000

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

50,000,000

0

- Initial costs

50,000,000

0

- Accumulated amortization

0

0

4. Construction-in-progress

328,539,271

89,000,000

III. Investment property

0

0

Historical costs

0

0

Accumulated depreciation

0

0

IV. Long-term investments

4,868,385,000

0

1. Investments in affiliates

0

0

2. Investments in business concerns and joint ventures

0

0

3. Other long-term investments

4,868,385,000

0

4. Provisions for devaluation of long-term investments

0

0

V. Other long-term assets

1,772,460,388

143,000,000

1. Long-term prepaid expenses

1,772,460,388

143,000,000

2. Deferred income tax assets

0

0

3. Other long-term assets

0

0

VI. Goodwill

0

1. Goodwill

0

TOTAL ASSETS

87,408,647,650

83,058,000,000

 

LIABILITIES

A- LIABILITIES

67,781,775,772

65,894,000,000

I. Current liabilities

67,121,775,772

64,261,000,000

1. Short-term debts and loans

15,035,470,785

17,396,000,000

2. Payable to suppliers

38,505,575,078

32,698,000,000

3. Advances from customers

0

8,524,000,000

4. Taxes and other obligations to the State Budget

800

0

5. Payable to employees

731,179,660

650,000,000

6. Accrued expenses

92,411,204

0

7. Inter-company payable

12,757,138,245

4,576,000,000

8. Payable according to the progress of construction contracts

0

0

9. Other payable

0

417,000,000

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

II. Long-Term Liabilities

660,000,000

1,633,000,000

1. Long-term accounts 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

660,000,000

1,633,000,000

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

0

0

7. Provisions for long-term accounts payable

0

0

8. Unearned Revenue

9. Science and technology development fund

B- OWNER’S EQUITY

19,626,871,878

17,164,000,000

I. OWNER’S EQUITY

19,626,871,878

17,164,000,000

1. Capital

15,000,000,000

15,000,000,000

2. Share premiums

0

0

3. Other sources of capital

0

0

4. Treasury stocks

0

0

5. Differences on asset revaluation

100,000,000

100,000,000

6. Foreign exchange differences

0

0

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

4,526,871,878

2,064,000,000

11. Construction investment fund

0

0

12. Business arrangement supporting fund

II. Other sources and funds

0

1. Bonus and welfare funds (Elder form)

0

2. Sources of expenditure

0

3. Fund to form fixed assets

0

MINORITY’S INTEREST

0

TOTAL LIABILITIES AND OWNER’S EQUITY

87,408,647,650

83,058,000,000

 

 

 

PROFIT & LOSS STATEMENT

 

 

Description

FY2011

FY2010

1. Total Sales

136,954,317,933

80,356,000,000

2. Deduction item

0

0

3. Net revenue

136,954,317,933

80,356,000,000

4. Costs of goods sold

122,781,527,212

75,915,000,000

5. Gross profit

14,172,790,721

4,441,000,000

6. Financial income

650,496,703

512,000,000

7. Financial expenses

2,705,784,378

1,182,000,000

- In which: Loan interest expenses

2,705,784,378

506,000,000

8. Selling expenses

4,265,443,103

966,000,000

9. Administrative overheads

5,288,887,600

1,606,000,000

10. Net operating profit

2,563,172,343

1,199,000,000

11. Other income

0

12. Other expenses

103,436,704

13. Other profit /(loss)

-103,436,704

14. Total accounting profit before tax

2,459,735,639

1,199,000,000

15. Current corporate income tax

0

62,000,000

16. Deferred corporate income tax

0

17. Interest from subsidiaries/related companies

18. Profit after tax

2,459,735,639

1,137,000,000

 

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.12

1.19

1.42

Quick liquidity ratio

0.29

0.59

0.78

Inventory circle

2.21

1.97

5.13

Average receive period

31.65

147.80

72.48

Utilizing asset performance

1.57

0.97

1.61

Liability by total assets

77.55

79.33

65.76

Liability by owner's equity

345.35

383.91

269.57

Ebit / Total assets (ROA)

5.91

2.05

11.97

Ebit / Owner's equity (ROE)

26.32

9.93

36.02

Ebit / Total revenue (NPM)

3.77

2.12

7.56

Gross profit / Total revenue (GPM)

10.35

5.53

14.67

Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Low/ Medium

Payment status

 

Normal

Financial Situation

 

Below average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

Direct payment or through its corresponding bank

Sale Methods

 

Wholesaler

 

 

 

 

INTERPRETATION ON THE SCORES

 

The Subject was originally established on Aug 27th 1999 as a private enterprise named Phuoc Hung Enterprise. After that it was transformed to liability limited company in 2002. Now, it has operated under name PHUOC HUNG COMPANY LIMITED.

The subject is specializing in processing and trading fertilizer and chemicals for fruit trees and rice. Some are used directly for tree but others are to improve the soil. At the beginning, subject just manufactured and traded 10 types of fertilizer for leaves. But after that it has cooperated with science research institutes to produce and introduce new products. From 2002 up to now, it has cooperated with the “Soil Research Department of Southern Agricultural Science Institute Branch” and “Radiation Technique Appliance Center – Vietnam Atomic Nuclear Energy Institution” to apply new medicines for crop protection purposes.

At the present, subject is providing more than 180 products in many kinds. The subject has obtained many awards such as “Friend of farmer” prize in consecutive years 2004, 2005, 2006, 2007; ISO 9001:2000 certificate in October 2005 and “Golden products” awards in many years.

Main operation markets of subject are from the Central provinces (Tay Nguyen, Dak Lak) to the Southern provinces (Long An, Vinh Long, Dong Thap…) with more than 200 level 1 distributors and wide customer service system in these provinces mostly. Now, the subject does not export products to foreign country and it mainly imports product and material from China.

In general, the subject has capacity to meet small and normal financial commitments.

 

 

 

 

INDUSTRY DATA

 

Industry code

Growth speed by price compared with 1994 (%)

Total enterprises 2010

Total employees 2011

(Thous.pers.)

Annual average capital of enterprises 2010

(billion dongs)

2011

2010

Agriculture, Forestry and Fishing

4.00

2.78

8,887

24,362.9

95,227

Industry and Construction

5.53

7.70

95,217

10,718.9

3,641,376

Trade and Services

6.69

7.52

187,195

15,270.2

6,957,082

 

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

Source: General Statistics Office

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.34

UK Pound

1

Rs.87.89

Euro

1

Rs.70.13

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.