MIRA INFORM REPORT

Report Date :

17.11.2012

IDENTIFICATION DETAILS

Name :	HOANG DUNG TRADING COMPANY LIMITED
Registered Office :	No. 737, Le Hong Phong Street, Ward 12, District 10, Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2008
Date of Incorporation :	1995
Com. Reg. No.:	0301148514
Legal Form :	Limited liability company
Line of Business :	Trading in machines, materials, equipment, household appliances, electrical equipment, fabrics, handicraft products, cars, motorbikes and spare parts, construction materials, foods and foodstuffs: wine, beer, tobacco, processed food, agro and aqua products.
No. of Employees :	50

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 :	Slow
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

Translation English Name	HOANG DUNG TRADING COMPANY LIMITED
Registered Vietnamese Name	CONG TY TNHH THUONG MAI HOANG DUNG
Trade name	HOANG DUNG TRADING CO., LTD
Registered Short name	HOANG DUNG CO., LTD
Type of Business	Limited liability company
Year Established	1995
Establishment Decision	1726/GP-UB
Date of Issuance	02 Aug 1995
Place of Issuance	People's Committee of Ho Chi Minh City
Business Registration No.	0301148514
Date of the lastest adjustment (11^th)	18 May 2012
Place of Registration	Planning and Investment Department of Ho Chi Minh City
Chartered capital	VND 19,000,000,000
Tax code	0301148514
Total Employees	50
Size	Medium

ADDRESSES

Head Office
Address	No. 737, Le Hong Phong Street, Ward 12, District 10, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3863 3472 / 3862 0640
Fax	(84-8) 3865 7295
Email	hoangdungvn@hac.vnn.vn
Website	www.hoangdung.com.vn
Branch in Ho Chi Minh
Address	No. 41 Vo Van Bich Street, Binh My Commune, Cu Chi District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3797 8146
Fax	(84-8) 3797 8147

DIRECTORS

1. NAME	Mr. NGUYEN QUANG VINH
Position	Director
Date of Birth	02 Sep 1958
ID Number/Passport	025082174
ID Issue Date	13 Mar 2009
ID Issue Place	Police station of Hochiminh City
Resident	No. 737 Le Hong Phong Street, Ward 12, District 10, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	+84 903907156
Email	vinh@hoangdung.com.vn
Qualification	Management
2. NAME	Ms. DO THI THU HA
Position	Assistant of Director
Resident	Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	+ 84 983506575
Email	thuha@hoangdung.com.vn

BUSINESS NATURE AND ACTIVITIES

The subject registered businesses including:

Trading in machines, materials, equipment, household appliances, electrical equipment, fabrics, handicraft products, cars, motorbikes and spare parts, construction materials, foods and foodstuffs: wine, beer, tobacco, processed food, agro and aqua products.

Providing commercial services;

Trading in turpentine and related products;

Trading in wood;

Processing rubber latex and wood;

Providing forwarding and logistics services;

Trading in chemical, raw latex and semi-processed latex;

Goods transportation by land and by waterway;

Manufacturing and trading in wooden furniture;

Manufacturing synthetic rubber products.

IMPORT & EXPORT ACTIVITIES

EXPORT:
Types of products	Rubber and rubber woods
Market	China, Malaysia, Taiwan, Singapore, EU, USA...
IMPORT:
Types of products	Materials
Market	Thailand

BANKERS

ASIA COMMERCIAL BANK
Address	No.442, Nguyen Thi Minh Khai Street, District 3, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3929 0999
Fax	(84-8) 3839 9885

SHAREHOLDERS

1. NAME	Mr. NGUYEN QUANG VINH
Position	Director
Date of Birth	02 Sep 1958
ID Number/Passport	025082174
Issued on	13 Mar 2009
Issued Place	Police station of Hochiminh City
Resident	No. 737 Le Hong Phong Street, Ward 12, District 10, Ho Chi Minh City, Vietnam
Email	vinh@hoangdung.com.vn
Mobile phone	+84 903907156
Nationality	Vietnamese
Value of shares	VND 15,200,000,000
Percentage	80%
2. NAME	Mr. NGUYEN ANH DUNG
ID Number/Passport	024020754
Resident	No. 737 Le Hong Phong Street, Ward 12, District 10, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Value of shares	VND 3,800,000,000
Percentage	20%

FINANCIAL DATA

The latest financial statements of subject is not available!
BALANCE SHEET
Unit: Million VND
Balance sheet date	31/12/2008
Number of weeks	52
ASSETS
A – CURRENT ASSETS	51,791
I. Cash and cash equivalents	1,588
1. Cash	1,588
2. Cash equivalents	0
II. Short-term investments	975
1. Short-term investments	975
2. Provisions for devaluation of short-term investments	0
III. Accounts receivable	19,894
1. Receivable from customers	7,780
2. Prepayments to suppliers	12,094
3. Inter-company receivable	0
4. Receivable according to the progress of construction	0
5. Other receivable	20
6. Provisions for bad debts	0
IV. Inventories	24,215
1. Inventories	24,215
2. Provisions for devaluation of inventories	0
V. Other Current Assets	5,119
1. Short-term prepaid expenses	0
2. VAT to be deducted	2,094
3. Taxes and other accounts receivable from the State	450
4. Other current assets	2,575
B. LONG-TERM ASSETS	8,366
I. Long term account receivable	0
1. Long term account receivable from customers	0
2. Working capital in affiliates	0
3. Long-term inter-company receivable	0
4. Other long-term receivable	0
5. Provisions for bad debts from customers	0
II. Fixed assets	8,366
1. Tangible assets	8,366
- Historical costs	10,370
- Accumulated depreciation	-2,004
2. Financial leasehold assets	0
- Historical costs	0
- Accumulated depreciation	0
3. Intangible assets	0
- Initial costs	0
- Accumulated amortization	0
4. Construction-in-progress	0
III. Investment property	0
Historical costs	0
Accumulated depreciation	0
IV. Long-term investments	0
1. Investments in affiliates	0
2. Investments in business concerns and joint ventures	0
3. Other long-term investments	0
4. Provisions for devaluation of long-term investments	0
VI. Other long-term assets	0
1. Long-term prepaid expenses	0
2. Deferred income tax assets	0
3. Other long-term assets	0
TOTAL ASSETS	60,157
LIABILITIES
A- LIABILITIES	65,120
I. Current liabilities	65,120
1. Short-term debts and loans	27,924
2. Payable to suppliers	24,474
3. Advances from customers	5,458
4. Taxes and other obligations to the State Budget	248
5. Payable to employees	0
6. Accrued expenses	0
7. Inter-company payable	0
8. Payable according to the progress of construction contracts	0
9. Other payable	7,016
10. Provisions for short-term accounts payable	0
II. Long-Term Liabilities	0
1. Long-term accounts payable to suppliers	0
2. Long-term inter-company payable	0
3. Other long-term payable	0
4. Long-term debts and loans	0
5. Deferred income tax payable	0
6. Provisions for unemployment allowances	0
7. Provisions for long-term accounts payable	0
B- OWNER’S EQUITY	-4,963
I. OWNER’S EQUITY	-4,975
1. Capital	7,973
2. Share premiums	0
3. Other sources of capital	0
4. Treasury stocks	0
5. Differences on asset revaluation	0
6. Foreign exchange differences	-1,083
7. Business promotion fund	0
8. Financial reserved fund	0
9. Other funds	0
10. Retained earnings	-11,865
11. Construction investment fund	0
II. Other sources and funds	12
1. Bonus and welfare funds	12
2. Sources of expenditure	0
3. Fund to form fixed assets	0
C. MINORITY’S INTERES	0
TOTAL LIABILITIES AND OWNER’S EQUITY	60,157

PROFIT & LOSS STATEMENT

Description	FY2008
1. Total Sale	351,510
2. Deduction item	0
3. Net revenue	351,510
4. Costs of goods sold	347,156
5. Gross profit	4,354
6. Financial income	0
7. Financial expenses	2,894
- In which: Loan interest expenses	2,894
8. Selling expenses	0
9. Administrative overheads	9,061
10. Net operating profit	-7,601
11. Other income	2,364
12. Other expenses	1,818
13. Other profit /(loss)	546
14. Total accounting profit before tax	-7,055
15. Current corporate income tax	0
16. Deferred corporate income tax	0
17. Profit after tax	-7,055

FINANCIAL RATIOS

Description	FY2008
Current liquidity ratio	0.80
Quick liquidity ratio	0.42
Inventory circle	14.34
Average receive period	20.66
Utilizing asset performance	5.84
Liability by total asset	108.25
Liability by owner equity	-1,312.11
Ebit / Total asset (ROA)	-6.92
Ebit / Owner's equity (ROE)	83.84
Ebit / Total revenue (NPM)	-1.18
Gross profit / Total revenue (GPM)	1.24

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Normal
Liquidity	N/A
Payment status	N/A
Financial Situation	Average
Development trend	N/A
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	By cash or through the bank,T/T,L/C
Sale Methods	Retailer and Wholesaler
Public opinion	Normal

INTERPRETATION ON THE SCORES

The subject - HOANG DUNG CO., LTD - is a limited liability company which was established in 1995. At current, subject operates under business registration no. 0301148514 issued by Planning and Investment Department of Ho Chi Minh City and registered capital VND 19 billion. The subject is a manufacturer and exporter in rubber products and rubber woods. Its products are TSR (Technically Specified Rubbers) such as SVR of all types (SVR3L, SVR5, SVR10, SVR20, RSS3 for making car tire, sole of shoes, conveyor belt), CSK of all types and sawn rubber wood.

The subject head office is located at No. 737 Le Hong Phong Street, Ward 12, District 10, Ho Chi Minh City, Vietnam. Besides subject has one registered branch located at Cu Chi province, Ho Chi Minh City. 

Subject activates with medium scale in rubber manufacture industry. Management capacity and competition capacity of the subject is average. In this industry, subject must cope with more competitors, which are quite big and strong such as PHUOC HOA RUBBER, DAKRUCO, MIDLAND RUBBER, PHU RIENG RUBBER, LIEN ANH RUBBER, DONGPHU RUBBER, THONG NHAT RUBBER….

The subject is a member of Vietnam Rubber Association (VRA). The subject is one of the leading natural rubber exporters of Vietnam. The subject has been listed in “List of reliable exporters” among Vietnamese companies selected and published by Ministry of Trade of Vietnam. The subject exports about 80% of its subject rubber latex products. Up to now, the subject has exported products to China, Taiwan, Singapore, Malaysia, Korea, Spain, Italia, Czech, Russia.

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 :

PDT

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