MIRA INFORM REPORT

Report Date :

17.11.2012

IDENTIFICATION DETAILS

Name :	VINALINES LOGISTICS - VIET NAM JOINT STOCK COMPANY

Formerly Known As :	Vinalines Logistics Joint Stock Company

Registered Office :	Room 405 - 4th Floor - Ocean Park Building - No. 1 Dao Duy Anh Street - Phuong Mai Ward, Dong Da District, Ha Noi City

Country :	Vietnam

Financials (as on) :	31.12.2011

Year of Establishment :	2007

Com. Reg. No.:	0102345275

Legal Form :	Joint Stock Company

Line of Business :	Logistic services Load and unload goods services

No. of Employees :	200

RATING & COMMENTS

MIRA’s Rating :

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

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

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
Registered English Name		VINALINES LOGISTICS - VIET NAM JOINT STOCK COMPANY
Registered Vietnamese Name		CONG TY CO PHAN VINALINES LOGISTICS – VIET NAM
Registered short name		VINALINES LOGISTICS .,JSC
Type of Business		Joint stock company
Year Established		2007
Business Registration No.		0102345275
Date of Registration		13 Jul 2010
Place of Registration		Hanoi City Department of Planning and Investment
Chartered capital		VND 142,121,300,000
Status		Unlisted
Tax code		0102345275
Total Employees		200
Size		Large

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Chartered capital: VND 158 billion Changed to: VND 142,121,300,000	11 Aug 2011
2	Subject has got former Business Registration No: 0103018983 (issued 10 Aug 2007) Changed to: 0102345275	13 Jul 2010
3	Subject has got former Registered English Name: Vinalines Logistics Joint Stock Company Changed to: Vinalines Logistics – Viet Nam Joint Stock Company	N/A

company ADDRESSES

Head Office
Address		Room 405 - 4th Floor - Ocean Park Building - No. 1 Dao Duy Anh Street - Phuong Mai Ward, Dong Da District, Ha Noi City, Vietnam
Telephone		(84-4) 3577 2036/35772048
Fax		(84-4) 3577 2035
Email		info@vinalineslogistics.com.vn
Website		www.vinalineslogistics.com.vn
Note		The full address and the exact email address of the subject are as above.

Representative office in Quang Ninh
Address		No. 2 Huu Nghi Street, Tran Phu Ward, Mong Cai City, Quang Ninh Province, Vietnam
Telephone		(84-33) 3778868
Fax		(84-33) 3778868

Branch in Hai Phong
Address		No. 547 Le Thanh Tong Street Van My Ward, Ngo Quyen District, Hai Phong City, Vietnam
Telephone		(84-31) 3796559
Fax		(84-31) 3796557
Email		hpg@vinalineslogistics.com.vn
Note: Tax code: 0102345275-001

Branch in Quang Ninh
Address		Vosa Warehouse - No. 1 - Cai Lan Street Bai Chay Ward, Ha Long City, Quang Ninh Province, Vietnam
Telephone		(84-33) 351 5998
Fax		(84-33) 351 5989
Email		qn@vinalineslogistics.com.vn
Note: Tax code: 0102345275-002

Branch in Ho Chi Minh
Address		No. 37 Hoang Dieu Street Ward 12, 4 District, Ho Chi Minh City, Vietnam
Telephone		(84-8) 62616606
Fax		(84-8) 62616607
Email		hcm@vinalineslogistics.com.vn
Note: Tax code: 0102345275-003

SUBSIDIARIES AND RELATED COMPANIES

1. PARENT COMPANY - VIETNAM NATIONAL SHIPPING LINES
Business Registration		0100104595
Date of Registration		07 Jul 2010
Place of Registration		Hanoi Department of Planning and Investment
Registered Capital		VND 8,087,000,000,000
Tax code		0100104595
Address		16th – 18th Floor, Ocean Park Building, No.1 Dao Duy Anh Str - Phuong Mai Ward, Dong Da District, Ha Noi City, Vietnam
Tel		(84-4) 3577 0825
Fax		(84-4) 3577 0850
Website		www.vinalines.com.vn

DIRECTORS

1. NAME		Mr. MAI LE LOI
Position		Chairman cum General Director
Date of Birth		01 May 1973
ID Number/Passport		012928629
ID Issue Date		12 Jan 2007
ID Issue Place		Hanoi Department of Public Security
Resident		Room 1704 -18T1 Trung Hoa Nhan Chinh Area, Thanh Xuan District, Ha Noi City, Vietnam
Current resident		Room 411 - CT6 Song Da urban zone Me Tri commune, Tu Liem District, Ha Noi City, Vietnam
Nationality		Vietnamese

2. NAME		Mr. LE TRIEU THANH
Position		Former Chairman
Current resident		Ha Noi City, Vietnam
Nationality		Vietnamese

3. NAME		Mr. NGUYEN VIET ANH
Position		Deputy General Director
Nationality		Vietnamese

4. NAME		Mr. PHAM BA NGAN
Position		Deputy General Director
Nationality		Vietnamese

5. NAME		Ms. PHAM THI QUY QUYEN
Position		Chief Accountant
Contact address		Room 405 - 4th Floor - Ocean Park Building - No. 1 Dao Duy Anh Street - Phuong Mai Ward, Dong Da District, Ha Noi City, Vietnam
Nationality		Vietnamese
Tel/Mobile phone		+84 904516809

BUSINESS NATURE AND ACTIVITIES

- Logistic services
- Load and unload goods services
- Storage goods services
- Receiving and delivering import - export goods
- Customs brokerage service
- Shipping agent
- Transportation services
- Container services
- Ocean shipping brokerage
- Transportation facilities for lease
- Trading in import - export goods

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products		Equipment, Goods
· Market		China, EU
· Ratio		N/A
· Mode of payment		T/T

EXPORT:
· Types of products		The subject does not export.

BANKERS

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
Address		No. 198 Tran Quang Khai Street, Hoan Kiem District, Ha Noi City, Vietnam
Telephone		(84-4) 3934 3137 / (84-4) 3814 8919
Fax		(84-4) 3826 9067 / (84-4) 3825 1322

2. MARITIME COMMERCIAL JOINT STOCK
Address		No.7-8-9 Floor, VIT Tower No.519 Kim Ma Str, Ba Dinh District, Ha Noi City, Vietnam

SHAREHOLDERS

1. NAME		VIETNAM NATIONAL SHIPPING LINES
Business Registration		0100104595
Date of Registration		07 Jul 2010
Place of Registration		Hanoi Department of Planning and Investment
Registered Capital		VND 8,087,000,000,000
Tax code		0100104595
Address		16th – 18th Floor, Ocean Park Building, No.1 Dao Duy Anh Str - Phuong Mai Ward, Dong Da District, Ha Noi City, Vietnam
Tel		(84-4) 3577 0825
Fax		(84-4) 3577 0850
Email		vnl@vinalines.com.vn
Website		www.vinalines.com.vn
Number of shares		8,061,620
Value of shares		VND 80,616,200,000
Percentage		56%

2. NAME		OTHER SHAREHOLDERS
Number of shares		6,150,510
Value of shares		VND 61,505,100,000
Percentage		44%

FINANCIAL DATA

BALANCE SHEET
Unit: One VND
Balance sheet date	31/12/2011	31/12/2010	31/12/2009
Number of weeks	52	52	52
Audit status	Unknown	Audited	Unknown
ASSETS
A – CURRENT ASSETS	93,800,022,864	119,542,983,178	111,715,482,246
I. Cash and cash equivalents	20,017,642,802	2,933,565,756	375,581,779
1. Cash	20,017,642,802	2,933,565,756	375,581,779
2. Cash equivalents	0	0	0
II. Short-term investments	16,000,000,000	65,833,666,666	81,258,874,246
1. Short-term investments	-	65,833,666,666	81,258,874,246
2. Provisions for devaluation of short-term investments	-	0	0
III. Accounts receivable	49,990,766,769	41,620,551,670	19,044,699,036
1. Receivable from customers	-	23,035,132,130	13,572,120,795
2. Prepayments to suppliers	-	6,252,181,962	93,600,000
3. Inter-company receivable	-	6,209,984,192	0
4. Receivable according to the progress of construction	-	0	0
5. Other receivable	-	6,123,253,386	5,378,978,241
6. Provisions for bad debts	-	0	0
IV. Inventories	0	0	0
1. Inventories	0	0	0
2. Provisions for devaluation of inventories	0	0	0
V. Other Current Assets	7,791,613,293	9,155,199,086	11,036,327,185
1. Short-term prepaid expenses	-	0	0
2. VAT to be deducted	-	4,835,555,838	1,874,581,148
3. Taxes and other accounts receivable from the State	-	0	0
4. Other current assets	-	4,319,643,248	9,161,746,037
B. LONG-TERM ASSETS	115,489,639,358	86,448,725,551	65,661,763,888
I. Long term accounts receivable	0	0	0
1. Long term account receivable from customers	0	0	0
2. Working capital in affiliates	0	0	0
3. Long-term inter-company receivable	0	0	0
4. Other long-term receivable	0	0	0
5. Provisions for bad debts from customers	0	0	0
II. Fixed assets	109,078,950,244	85,134,684,931	64,712,718,478
1. Tangible assets	24,190,607,929	14,177,962,997	15,197,122,856
- Historical costs	-	18,224,063,021	17,441,854,335
- Accumulated depreciation	-	-4,046,100,024	-2,244,731,479
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	0	5,649,923,600	5,649,923,600
- Initial costs	-	5,649,923,600	5,649,923,600
- Accumulated amortization	-	0	0
4. Construction-in-progress	84,888,342,315	65,306,798,334	43,865,672,022
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	1,000,000,000	1,000,000,000	500,000,000
1. Investments in affiliates	-	0	0
2. Investments in business concerns and joint ventures	-	1,000,000,000	500,000,000
3. Other long-term investments	-	0	0
4. Provisions for devaluation of long-term investments	-	0	0
V. Other long-term assets	5,410,689,114	314,040,620	449,045,410
1. Long-term prepaid expenses	-	314,040,620	449,045,410
2. Deferred income tax assets	-	0	0
3. Other long-term assets	-	0	0
VI. Goodwill	0	0	0
1. Goodwill	0	0	0
TOTAL ASSETS	209,289,662,222	205,991,708,729	177,377,246,134

LIABILITIES
A- LIABILITIES	51,997,781,396	47,925,266,111	25,201,316,180
I. Current liabilities	30,473,353,022	20,144,481,429	11,085,307,518
1. Short-term debts and loans	-	0	825,546,177
2. Payable to suppliers	-	15,295,921,823	7,648,931,813
3. Advances from customers	-	1,315,860,213	108,498,153
4. Taxes and other obligations to the State Budget	-	1,917,284,512	1,518,826,726
5. Payable to employees	-	1,377,676,862	549,591,031
6. Accrued expenses	-	0	0
7. Inter-company payable	-	0	0
8. Payable according to the progress of construction contracts	-	0	0
9. Other payable	-	237,738,019	433,913,618
10. Provisions for short-term accounts payable	-	0	0
II. Long-Term Liabilities	21,524,428,374	27,780,784,682	14,116,008,662
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	-	27,749,584,682	14,084,404,000
5. Deferred income tax payable	-	0	0
6. Provisions for unemployment allowances	-	31,200,000	31,604,662
7. Provisions for long-term accounts payable	-	0	0
B- OWNER’S EQUITY	157,291,880,826	158,066,442,618	152,175,929,954
I. OWNER’S EQUITY	157,291,880,826	158,391,901,721	152,553,257,854
1. Capital	142,121,300,000	142,121,300,000	142,121,300,000
2. Share premiums	-	0	0
3. Other sources of capital	-	0	0
4. Treasury stocks	-	0	0
5. Differences on asset revaluation	-	0	0
6. Foreign exchange differences	-	0	0
7. Business promotion fund	-	4,258,474,409	2,410,807,934
8. Financial reserved fund	-	868,017,314	498,484,019
9. Other funds	-	181,388,371	198,000,000
10. Retained earnings	-	10,962,721,627	7,324,665,901
11. Construction investment fund	-	0	0
II. Other sources and funds	0	-325,459,103	-377,327,900
1. Bonus and welfare funds	0	-325,459,103	-377,327,900
2. Sources of expenditure	0	0	0
3. Fund to form fixed assets	0	0	0
MINORITY’S INTEREST	0	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	209,289,622,222	205,991,708,729	177,377,246,134

PROFIT & LOSS STATEMENT

Description	FY2011	FY2010	FY2009
1. Total Sales	2,295,011,698,663	1,594,738,770,937	1,011,471,241,633
2. Deduction item	0	0	0
3. Net sale	2,295,011,698,663	1,594,738,770,937	1,011,471,241,633
4. Costs of goods sold	2,286,186,961,573	1,589,949,193,414	1,010,050,676,486
5. Gross profit	8,824,737,090	4,789,577,523	1,420,565,147
6. Financial income	8,531,212,774	9,157,664,844	10,015,654,547
7. Financial expenses	612,872,862	451,332,546	49,882,972
- In which: Loan interest expenses	611,917,662	450,760,175	49,882,972
8. Selling expenses	0	0	0
9. Administrative overheads	6,160,274,848	4,366,868,632	3,625,281,445
10. Net operating profit	10,582,802,154	9,129,041,189	7,761,055,277
11. Other income	16,206,000	16,400,000	1,147,461,412
12. Other expenses	22,731,810	15,331,019	3,344,908
13. Other profit /(loss)	-6,525,810	1,068,981	1,144,116,504
14. Total accounting profit before tax	10,576,276,344	9,130,110,170	8,905,171,781
15. Current corporate income tax	2,644,069,086	2,282,527,543	1,514,505,880
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0	0	0
18. Profit after tax	7,932,207,258	6,847,582,627	7,390,665,901

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	3.08	5.93	10.08	1.04
Quick liquidity ratio	3.08	5.93	10.08	0.88
Inventory circle	-	-	-	26.27
Average receive period	7.95	9.53	6.87	63.73
Utilizing asset performance	10.97	7.74	5.70	0.61
Liability by total assets	24.84	23.27	14.21	66.29
Liability by owner's equity	33.06	30.32	16.56	303.47
Ebit / Total assets (ROA)	5.35	4.65	5.05	7.69
Ebit / Owner's equity (ROE)	7.11	6.06	5.88	34.21
Ebit / Total sale (NPM)	0.49	0.60	0.89	15.75
Gross profit / Total sale (GPM)	0.38	0.30	0.14	23.61
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Fair
Liquidity		High
Payment status		Average
Financial Situation		Above Average
Development trend		Even
Litigation data		No
Bankruptcy		No
Payment Methods		T/T, L/C
Sale Methods		Other
Public opinion		Good

CREDIT INQUIRY: USD 125,000 against D/A in terms.

Acceptable!

INTERPRETATION ON THE SCORES

The subject is a Joint Stock Company that was established in 2007 in Ha Noi City under the former business registration No. 0103018983 issued by Ha Noi Department of Planning and Investment. Currently, it is operating under the business registration No. 0102345275 with the chartered capital of VND 142,121,300,000 in which Vinalines is the main shareholder of the subject.

The company's head office is located at Room 405, 4th Floor, Ocean Park Building, No. 1 Dao Duy Anh Street, Phuong Mai Ward, Dong Da District, Ha Noi City. The subject also has network of branch, representative offices in Hai Phong, Ho Chi Minh Cities and Quang Ninh Province.

The subject now is focusing on supplying logistics service like land transportation, railway and airline transportation services. In addition, it also expands its business activities into temporary import for re-export service; investment activities.

At present, the subject is the largest company in logistics service supply. The financial situation is considered above average. The value of the company’s total assets at the end of 2011 were VND 209.3 billion, did not changed much compared to 2010. According to the balance sheet, the company’s capital structure is quite safe for its creditor. The company’s liability by total assets in 2011 was 24.84%, increased slightly compared to 2010. However, it is still lower than average industry and at the quite safe level. According to the Profit and Loss Statement, the company’s business result is improved through years. The company’s total sales were huge and increased year after year. In 2011, the subject attained of VND 2,295 billion of total sales; increased 43% in comparison with 2010. Profit after tax also increased compared to 2010; reached approximately VND 8 billion in 2011.

In general, the subject is a large size company in the industry. Although it has just officially established for 5 years, its reputation is quite good. The subject has inherited full advantage of infrastructure, customer and international relation from its parent company. It has capacity to meet medium financial commitments.

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

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%)

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.