|
Report Date : |
06.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
CAFE OUTSPAN VIETNAM LIMITED |
|
|
|
|
Registered Office : |
Lot L1 Nhut Chanh industrial park, road 832, hamlet 5,
Nhut Chanh commune, Ben Luc District, Long An Province, |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
25.12.2007 |
|
|
|
|
Legal Form : |
Freeze Coffee Liquid. |
|
|
|
|
Line of Business : |
Producing and exporting of
Soluble spray dried coffee, Soluble freeze dried coffee, Soluble agglomerated
coffee |
|
|
|
|
No. of Employees : |
300 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
VIET NAM - 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 |
Current
legal status
|
||
|
English Name |
|
CAFE OUTSPAN VIETNAM LIMITED |
|
Vietnamese Name |
|
CONG TY TRACH NHIEM HUU HAN CA
PHE OUTSPAN VIET NAM |
|
Short name |
|
COVL |
|
Type of Business |
|
Limited liability company |
|
Year Established |
|
2007 |
|
Investment Certificate No |
|
502043000046 |
|
Date Of Issuance |
|
25 Dec 2007 |
|
Place of Issuance |
|
Long An Industrial Zones
Authority |
|
Registered Investment Capital |
|
USD 87,000,000 |
|
Chartered capital |
|
USD 15,000,000 |
|
Investment Duration |
|
50 years |
|
Status |
|
Unlisted |
|
Tax code |
|
1100814540 |
|
Total Employees |
|
300 |
|
Size |
|
Medium |
Historical Identification &
Legal form
|
List |
Changed Items |
Date of changes |
|
1 |
Subject has got former
Registered Investment Capital: USD 40,000,000 Changed to: USD 87,000,000 |
14 Jun 2011 |
|
2 |
Subject has got former
Chartered capital: USD 4,000,000 Changed to: USD 15,000,000 |
29 Jul 2010 |
|
Head
Office- Factory |
||
|
Address |
|
Lot L1 Nhut Chanh industrial
park, road 832, hamlet 5, Nhut Chanh commune, Ben Luc District, Long An
Province, Vietnam |
|
Telephone |
|
(84-72) 3655999 |
|
Fax |
|
(84-72) 3655986 |
|
Website |
|
|
|
Occupied Area |
|
5.30 ha |
|
Land-use Right |
|
Leased |
|
|
||
|
Representative
office in Ho Chi Minh |
||
|
Address |
|
AB Tower, No. 76A, Le Lai
street, 1 District, Ho Chi Minh City, Vietnam |
|
|
||
|
1.
PARENT COMPANY - OLAM INTERNATIONAL LIMITED |
||
|
Business Registration |
|
19950476H |
|
Date of Registration |
|
04 Jul 1995 |
|
Place of Registration |
|
Singapore |
|
Address |
|
9 Temasek Boulevard #11-02 Suntec Tower 2 Singapore
038989, Singapore |
|
Tel |
|
(+65) 6339 4100 |
|
Fax |
|
(+65) 6339 9755 |
|
1. NAME |
|
Mr. PRAKASH CHAND JHANWER |
|
Position |
|
General Director |
|
ID Number/Passport |
|
G2323364 |
|
ID Issue Date |
|
03 Apr
2007 |
|
Resident |
|
karachi
citizens co-op society, C-310 new link road mumbai 400053, Kerala Province,
India |
|
Nationality |
|
Indian |
|
|
||
|
2. NAME |
|
Mr. SHANKAR RAO |
|
Position |
|
Factory Director |
|
|
||
|
3. NAME |
|
Mr. HUYNH VIET THANG |
|
Position |
|
Financial Director |
|
Nationality |
|
Vietnamese |
|
|
||
|
4. NAME |
|
Mr. TRAN TUAN LOC |
|
Position |
|
Chief Accountant |
|
Nationality |
|
Vietnamese |
|
The subject specializes in producing
and exporting Soluble Coffee Products as follows: |
|
|
|
IMPORT & EXPORT ACTIVITIES |
||
|
|
||
|
IMPORT:
|
||
|
·
Types of products |
|
Machines, materials |
|
·
Market |
|
EU, Africa, Indonesia |
|
|
||
|
EXPORT:
|
||
|
·
Types of products |
|
Coffee products |
|
·
Market |
|
USA, Singapore, etc |
|
·
Ratio |
|
80% |
|
·
Mode of payment |
|
Negotiable |
|
|
||
BANKERS
|
||
|
|
||
|
1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM BEN LUC
TRANSACTION |
||
|
Address |
|
No.7 Nguyen Huu Tho Street, Ben Luc District, Long An
Province, Vietnam |
|
Telephone |
|
(84-72) 3633029 |
|
|
||
|
2. AUSTRALIA AND NEW ZEALAND BANK (ANZ BANK) - HCMC BRANCH |
||
|
Address |
|
No 39 Le Duan Street - Ben Nghe Ward , 1 District, Ho Chi
Minh City, Vietnam |
|
Telephone |
|
(84-8) 3827 2926 |
|
Fax |
|
(84-8) 3822 3449 |
|
|
||
SHAREHOLDERS
|
||
|
|
||
|
1. NAME |
|
OLAM INTERNATIONAL LIMITED |
|
Business Registration |
|
19950476H |
|
Date of Registration |
|
04 Jul 1995 |
|
Place of Registration |
|
Singapore |
|
Address |
|
9 Temasek Boulevard #11-02
Suntec Tower 2 Singapore 038989, Singapore |
|
Tel |
|
(+65) 6339 4100 |
|
Fax |
|
(+65) 6339 9755 |
|
Percentage |
|
100% |
|
|
||
FINANCIAL DATA
|
|
N/A |
|
PAYMENT HISTORY & PERFORMANCE EXPERIENCES |
||
|
|
||
|
Trade Morality |
|
Fair |
|
Liquidity |
|
N/A |
|
Payment status |
|
N/A |
|
Financial Situation |
|
Average |
|
Development trend |
|
Developing |
|
Litigation data |
|
No Record |
|
Bankruptcy |
|
No Record |
|
Payment Methods |
|
L/C |
|
Sale Methods |
|
Wholesaler |
|
Public opinion |
|
Good |
INTERPRETATION ON THE SCORES
|
|
|
|
Being a foreign invested company, the subject was officially licensed
in Dec 2007, and started to build factory after that. Until March 2010, the
factory was put into operation and it began commercial production. Total
invested capital of subject was changed up to 87,000,000 USD in year 2011.
Cafe Outspan Vietnam Limited is a subsidiary of Olam International Limited
and is located in the Nhut Chanh Industrial Park, Long An Province. Its parent - Olam International limited - is a leading integrated
supply chain manager and processor of agricultural products and food
ingredients in the world, sourcing 20 kinds of products with a direct
presence in 65 countries and supplying them to over 11,600 customers. With
direct sourcing and processing facilities in most major countries, Olam has
built a leading position for its various products in the world market such as
cocoa, coffee, cashew, sesame, rice, cotton and wood products. Before the
subject, Olam has presented in Vietnam since 1996. It has coffee factories in
Central Highlands region as Buon Ma Thuot city, Di Linh District, and cashew
factories in Dong Nai province and Pleiku Town. The subject focuses on the field of manufacture of coffee products,
including the following types: Soluble spray dried coffee, Soluble
freeze-dried coffee, Soluble agglomerated coffee, Freeze Coffee Liquid. The
coffee bean is one of the strength points of Vietnam in exporting; hence,
subject takes the advantage of rich material with low price and good quality.
These products after processed are mainly exported to overseas such as USA,
Singapore, etc but mainly via its parent company group. About 80 to 90
percent of output is use for export while the rest is sold in Vietnam market.
However, at this moment, the subject’s brand seems to be very difficult to
compete in Vietnam market with other longer brands name of coffee such as
Trung Nguyen Coffee, Vinacafe, etc. However, in international market, the
subject has a great advantage from the influence of its parent company. Currently, the factory and machines, equipments
are already set up and built, so the subject is going to producing stable
with capacity of 12,000tons/year. In
our viewpoint, subject is in the first time of operation and production; it
needs more time to stabilize its operation and cover high initial
investments. Hence, the business results for some first years of operation
maybe not high as desired. Now, the subject is operating normally, factory’s
facility is above average. It is considered one of the largest one in South
East Asia region. It is expected to develop further in the future. |
|
|
|
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.51.61 |
|
|
1 |
Rs.83.57 |
|
Euro |
1 |
Rs.67.17 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.