MIRA INFORM REPORT

Report Date :

12.10.2012

IDENTIFICATION DETAILS

Name :	HUNG THANH PRODUCE AND TRADING COMPANY LIMITED
Registered Office :	Village 5, Giang Cao Hamlet, Bat Trang Commune, Gia Lam District, Ha Noi City
Country :	Vietnam
Financials (as on) :	31.12.2009
Year of Establishment :	2003
Com. Reg. No.:	0101354446
Legal Form :	Limited Liability Company
Line of Business :	manufacturing and trading ceramic products
No. of Employees :	10 employees

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

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

English Name	HUNG THANH PRODUCE AND TRADING COMPANY LIMITED
Vietnamese Name	CONG TY TRACH NHIEM HUU HAN SAN XUAT VA THUONG MAI HUNG THANH
Short name	HUNG THANH CO., LTD
Type of Business	Limited liability company
Year Established	2003
Business Registration No.	0101354446
Date of Registration	30 Jan 2010
Place of Registration	Ha Noi's Department of Planning and Investment
Chartered capital	VND 5,000,000,000
Status	Unlisted
Tax code	0101354446
Total Employees	10
Size	Small
Note	The exact name of the subject is above. The given one is not correct.

company ADDRESSES

Head Office
Address	Village 5, Giang Cao Hamlet, Bat Trang Commune, Gia Lam District, Ha Noi City, Vietnam
Tel	(84 - 4) 38742567
Fax	(84 - 4) 38742078
Email	hungthanhhc@hotmail.com
Note	The exact address and email of the subject are above. The given ones are not correct.

DIRECTORS

1. NAME	Mr. NGUYEN MANH HUNG
Position	Director
Date of Birth	10 Aug 1969
ID Number/Passport	011456233
ID Issue Date	05 Mar 2003
ID Issue Place	Ha Noi Police
Nationality	Vietnamese
2. NAME	Ms. TRAN THI THANH
Position	Deputy Director
Resident	Village 2, Giang Cao Hamlet, Bat Trang Commune, Quoc Oai District, Ha Noi City, Vietnam
Nationality	Vietnamese
Email	hungthanhhc@hotmail.com

BUSINESS NATURE AND ACTIVITIES

It specializes in manufacturing and trading ceramic products.

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Market	Asia, Europe, USA,
EXPORT:
Note: Currently, 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

SHAREHOLDERS

1. NAME	Mr. NGUYEN MANH HUNG
Position	Director
Date of Birth	10 Aug 1969
ID Number/Passport	011456233
Issued on	05 Mar 2003
Issued Place	Ha Noi Police
Nationality	Vietnamese
Value of shares	VND 3,000,000,000
Percentage	60%
2. NAME	Ms. TRAN THI THANH
Position	Deputy Director
Resident	Village 2, Giang Cao Hamlet, Bat Trang Commune , Quoc Oai District, Ha Noi City, Vietnam
Email	hungthanhhc@hotmail.com
Nationality	Vietnamese
Value of shares	VND 2,000,000,000
Percentage	40%

FINANCIAL HIGHLIGHT

BALANCE SHEET
Unit: Million VND
Balance sheet date	31/12/2009
Number of weeks	52
ASSETS
A. Current Asset	7,602
Receivables	841
Inventory	-
Cash and other current assets	-
B. Long term Asset	1,189
1. Long term account receivable	0
2. Fixed assets	1,189
Tangible fixed assets	1,189
+ Original cost	1,374
+ Accumulated depreciation value	-185
Financial leasehold assets	0
Intangible fixed assets	0
Construction in progress and other long term asset	0
TOTAL ASSETS	8,791
LIABILITIES
Payable loans	4,094
Owner’s Equity	4,697
TOTAL LIABILITY AND EQUITY	8,791
PROFIT & LOSS STATEMENT
1. Total Sales	7,008
2. Deduction item	0
3. Net sale	7,008
4. Costs of goods sold	6,472
5. Gross profit	536
6. Financial income	1
7. Financial expenses	370
8. Selling expenses and Administrative overheads	170
9. Net operating profit	-3
10. Other income	0
11. Other expenses	0
12. Other profit /(loss)	0
13. Total accounting profit before tax	-3
14. Current corporate income tax	0
15. Deferred corporate income tax	0
16. Interest from subsidiaries/related companies	0
17. Profit after tax	-3

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Normal
Liquidity	N/A
Payment status	N/A
Financial Situation	Below Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	Through its banks
Sale Methods	Retailer and Wholesaler
Public opinion	Normal

CREDIT INQUIRY: 2,500,000 USD Against D/A interms – Please Caution.

INTERPRETATION ON THE SCORES

HUNG THANH PRODUCE AND TRADING COMPANY LIMITED was established in 2003 under registration by Ha Noi's Department of Planning and Investment. Now, it is operated with Business Registration No. 0101354446 which is also its tax code. Its chartered capital is VND 5 billion.

It specializes in manufacturing and trading ceramic products. The subject imports machines from some countries in Asia, Europe, USA,.. Its products are distributed mainly in domestic market. Talking to Ms. Tran Thi Thanh - Deputy Director, she said that in recent time, as many companies, the subject is facing with many difficulties from economic crisis. So, its business results were not good.

The facilities and management of the subject are normal. Its head office is located in Village 5, Giang Cao Hamlet, Bat Trang Commune, Gia Lam District, Ha Noi City, Vietnam. It is managed by Mr. NGUYEN MANH HUNG and his wife – Ms. Ms. TRAN THI THANH. Now, the subject has about 10 employees.

Directors of the subject did not provide us any information about the subject. Ms. Tran Thi Thanh said that it is a small company. She doesn’t want to provide information about it. According to our sources about its financial data in the past, its business results were not good. In 2009, the subject gained VND 7,008 million in total sales but it lost VND 3 million.

In general, the subject is a small family company. Its business activities seem not busy. The operational of the subject is normal. Now, the subject is only reliable for small 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.53.07
UK Pound	1	Rs.84.95
Euro	1	Rs.68.24

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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