MIRA INFORM REPORT

Report Date :

17.11.2012

IDENTIFICATION DETAILS

Name :	HO GIA FOOD AGRICULTURAL PRODUCE COMPANY LIMITED
Registered Office :	No. 10, Road No. 5, Thao Dien Ward, District 2, Ho Chi Minh City
Country :	Vietnam
Date of Incorporation :	15.05.2012
Com. Reg. No.:	0311787238
Legal Form :	Limited Liability Company
Line of Business :	Wholesaler of food
No. of Employees :	50 employees

RATING & COMMENTS

MIRA’s Rating :

NB

RATING		STATUS	PROPOSED CREDIT LINE
----	NB	New Business	----

Status :	New Business
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	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

English Name	HO GIA FOOD AGRICULTURAL PRODUCE COMPANY LIMITED
Vietnamese Name	CONG TY TNHH NONG SAN THUC PHAM HO GIA
Short name	HO GIA FOOD AGRICULTURAL PRODUCE CO., LTD
Type of Business	Limited liability company
Year Established	2012
Business Registration No.	0311787238
Date of Registration	15 May 2012
Place of Registration	Business Registration Office - Planning and Investment Department of Ho Chi Minh City
Chartered capital	VND 5,000,000,000
Tax code	0311787238
Total Employees	50

compaNY ADDRESSES

Head Office
Address		No. 10, Road No. 5, Thao Dien Ward, District 2, Ho Chi Minh City, Vietnam
The private house of Mr. Hung – chairman of the subject
Transaction office in Ho Chi Minh
Address		No. 63/31A Quang Trung Str, Ward 10, Go Vap District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3894 6151
Mobile phone	+84 907753488
Email		baodinh_08@yahoo.com.au
The private house of Mr. Hung – chairman of the subject

DIRECTORS

1. NAME	Mr. HO BAO KHANH HOANG
Position	Director
Date of Birth	11 Sep 1991
ID Number/Passport	B3452379
ID Issue Date	03 Sep 2009
ID Issue Place	Immigration Department of Ho Chi Minh City
Resident	No. 10, Road No. 5, Thao Dien Ward, District 2, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
2. NAME	Mr. HO BAO KHANH HUNG
Position	Chairman
ID Number/Passport	B3068852
Resident	No. 63/31A Quang Trung Str, Ward 10 , Go Vap District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Phone Number	+84 907753488

BUSINESS NATURE AND ACTIVITIES

Wholesale of food
Wholesale on a fee or contract basis
Wholesale of beverages
Wholesale of waste and scrap and other products n.e.c
Processing and preserving of fruit and vegetables
Other transportation support activities
Freight transport by road
Other land transport of passenger
Renting and leasing of motor vehicles
Retail sale of beverages in specialized stores
Travel agency activities
Repair of communication equipment
Repair of other equipment
Educational support services
Wholesale of electronic and telecommunications equipment and supplies
Wholesale of other machinery and equipment n.e.c
Wholesale of computer, computer peripheral equipment and software
Wholesale of agricultural raw materials (except wood, bamboo) and live animals
Packaging activities
Wholesale of other household products

IMPORT & EXPORT ACTIVITIES

IMPORT:
 Types of products	Chili pepper
 Market	India
EXPORT:
 Types of products	Chili pepper, Chili Powder, Sesame, Anise seed, Cinnamon
 Market	Korea, Taiwan, Singapore, Malaysia

BANKERS

1. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Address	Anna Building Quang Trung Software City, Tan Chanh Hiep Ward, District 12, Ho Chi Minh City, Vietnam
Telephone	(84-8) 37159494
Fax	(84-8) 37159393

SHAREHOLDERS

1. NAME		Mr. HO BAO KHANH HOANG
Position		Director
Date of Birth		11 Sep 1991
ID Number/Passport		B3452379
Issued on		03 Sep 2009
Issued Place		Immigration Department of Ho Chi Minh City
Resident		No. 10 Road No. 5, Thao Dien Ward, District 2, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Value of shares		VND 1,500,000,000
Percentage		30%
2. NAME		Mr. HO BAO KHANH HUNG
Position		Chairman
ID Number/Passport		B3068852
Resident		No. 63/31A Quang Trung Str, Ward 10, Go Vap District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Phone Number	+84 907753488
Value of shares		VND 2,000,000,000
Percentage		40%
3. NAME		Ms. MAI NGOC ANH
ID Number/Passport		024434045
Resident		No. 29/6B Quarter No. 3, Tan Thoi Nhat Ward, District 12, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Value of shares		VND 1,500,000,000
Percentage		30%

FINANCIAL DATA

N/A

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Normal
Liquidity	N/A
Payment status	N/A
Financial Situation	Below average
Development trend	N/A
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Direct payment or through its corresponding bank
Sale Methods	To contracts

CREDIT INQUIRY: USD 125,000

Accepted!

INTERPRETATION ON THE SCORES

The subject was established in 2012 under the Business Registration No. 0311787238 with a chartered capital of VND 5 billion.

Registered address is located at “No. 10, Road No. 5, Thao Dien Ward, District 2, Ho Chi Minh City, Vietnam”. But all transactions are taken place at “No. 63/31A Quang Trung Str, Ward 10, Go Vap District, Ho Chi Minh City, Vietnam” – the same address of “BAO DINH CO ., LTD”. Ms. NGO LE HOANG OANH – owner of “Bao Dinh” is wife of Mr. Hung. In addition, Mr. Hung has 2 other companies including “Gia Hung Phat” and “Gia Bao”. All companies specialize in trading cultivation, processing and trading agricultural products and foodstuff. Mr. Hung has been many experiences in this field for 30 years. He is a reputed person with the foreign partners. His companies are exporters in agricultural products. They are the leading companies of chili trading, having a big market share. Total their export is about USD 15,000,000/year.

The subject specializes in importing, processing then supplying chili powder. The subject imports chili pepper from India. The main export markets are in Korea, Taiwan, Singapore, and Malaysia. We made an interview with Mr. Hung. According Mr. Hung, although the subject was a new company, the subject was operating busily. Until the end of FY 2012, total export of the subject would be about USD 2,000,000. In our overview, the subject has capacity to meet small commitments.

APPENDIX

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.54.99
UK Pound	1	Rs.87.21
Euro	1	Rs.70.22

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%)

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