MIRA INFORM REPORT

 

 

Report Date :

14.09.2012

 

IDENTIFICATION DETAILS

 

Name :

TPC VINA PLASTIC AND CHEMICAL CO., LTD

 

 

Registered Office :

Go Dau Industrial Park, Phuoc Thai Lot, Long Thanh District, Dong Nai Province

 

 

Country :

Viet Nam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

1995

 

 

Legal Form :

Joint venture

 

 

Line of Business :

Producing and trading PVC resin and related chemicals

 

 

No. of Employees :

1995

 

 

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 but correct

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Viet Nam

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


 

SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

English Name

 

TPC VINA PLASTIC AND CHEMICAL CO., LTD

Vietnamese Name

 

CONG TY TNHH NHUA VA HOA CHAT TPC VINA

Short name

 

TPC VINA

Type of Business

 

Joint venture

Year Established

 

1995

Investment Certificate No

 

472023000582

Date Of Issuance

 

11 Jul 2008

Place of Issuance

 

Dong Nai Industrial Zones Authority

Registered Investment Capital

 

USD 111,500,000

Chartered capital

 

USD 35,000,000

Investment Duration

 

50 years

Status

 

Unlisted

Tax code

 

3600248368

Total Employees

 

176

Size

 

Large

Note: The correct name of the subject is above.

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Board Of Director: Mr. SANTI UDOMNITIRAT; Mr. VU QUANG TRINH; Mr. SARAYUTH VORAPRUEKJARU

Changed to: Mr. PIYAPONG JRIYASETAPONG; Mr. PHUONG TRUNG THUY; Mr. SUMETH WUPPISUN

2012

2

Subject has got former Chartered capital: USD 27,000,000

Changed to: USD 35,000,000

22 Apr 2009

3

Subject has got former Registered Vietnamese Name: CONG TY TNHH NHUA VA HOA CHAT MITSUI VINA

Changed to: CONG TY TNHH NHUA VA HOA CHAT TPC VINA

11 Jul 2008

4

Subject has got former Abbreviated Name: MITSUI VINA

Changed to: TPC VINA

11 Jul 2008

5

Subject has got former Investment Certificate No: 1287/GP, Issuance on June 23rd 1995, granted by Ministry of Planning and Investment Changed to: 472023000582, granted by Dong Nai Industrial Zones Authority

11 Jul 2008

6

Subject has got former Shareholders: MITSUI & CO., LTD (46%), THAI PLASTIC AND CHEMICALS PUBLIC COMPANY LTD (24%), VIETNAM NATIONAL CHEMICALS CORPORATION (VINACHEM) (15%) and VIETNAM PLASTIC JOINT STOCK CORPORATION (VINAPLAST) (15%)

Changed to: THAI PLASTIC AND CHEMICALS PUBLIC COMPANY LTD (70%), VIETNAM NATIONAL CHEMICALS CORPORATION (VINACHEM) (15%) and VIETNAM PLASTIC JOINT STOCK CORPORATION (VINAPLAST) (15%)

11 Jul 2008

 

 

 

ADDRESSES

 

Head Office

Address

 

Go Dau Industrial Park, Phuoc Thai Lot, Long Thanh District, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3841461

Fax

 

(84-61) 3841460

Email

 

tpcvina@hcm.vnn.vn

Note: The correct address of the subject is above.

 

Transaction office in Ho Chi Minh

Address

 

Room 901 Habor View Tower - 35 Nguyen Hue str - Ben Nghe Ward, 1 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38234730

Fax

 

(84-8) 38234725

 

Representative office in Ha Noi

Address

 

Room 203 V Tower 649 Kim Ma Str, Ba Dinh District, Ha Noi City, Vietnam

Telephone

 

(84-4) 37661568

Fax

 

(84-4) 37661568

Manager

 

Mr. NGUYEN QUANG TUYEN

 

 

DIRECTORS

 

1. NAME

 

Mr. PIYAPONG JRIYASETAPONG

Position

 

General Director

Nationality

 

Thai

 

2. NAME

 

Mr. PHUONG TRUNG THUY

Position

 

Deputy General Director

Nationality

 

Vietnamese

 

3. NAME

 

Mr. SUMETH WUPPISUN

Position

 

Production Director

Nationality

 

Thai

 

4. NAME

 

Mr. BRAWEEN WIROPAN

Position

 

Chief Accountant

Nationality

 

Thai

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject specializes in producing and trading PVC resin and related chemicals.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Materials

·         Market

 

Japan, Taiwan, South Korea, Malaysia, Thailand and Indonesia.

·         Mode of payment

 

L/C, TT

 

EXPORT:

·         Market

 

The subject’s products are mainly distributed in domestic market. Some of them are exported to Cambodia and China.

·         Mode of payment

 

L/C, T/T

 

 

 

BANKERS

 

1. TOKYO MITSUBISHI UFJ

Address

 

Flood 8, Landmark Building, 5B Ton Duc Thang Street, 1 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3823 1560

Fax

 

(84-8) 3823 1559

 

2. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM HO CHI MINH BRANCH

Address

 

No. 29 Ben Chuong Duong Str-Nguyen Thai Binh Ward, 1 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3825 1317

Fax

 

(84-8) 3829 7228

 

 

 

SHAREHOLDERS

 

1. NAME

 

VIETNAM NATIONAL CHEMICAL GROUP

Business Registration

 

0100100061

Date of Registration

 

13 Oct 2010

Place of Registration

 

Planning and Investment Department of Hanoi City

Registered Capital

 

VND 8,000,000,000,000

Tax code

 

0100100061

Address

 

No. 1A, Trang Tien Str Trang Tien Ward, Hoan Kiem District, Ha Noi City, Vietnam

Tel

 

(84-4) 38240551/ 38253037

Fax

 

(84-4) 38252995/ 38254664

Email

 

info@vinachem.com.vn

Website

 

www.vinachem.com.vn

Value of shares

 

USD 5,250,000

Percentage

 

15%

 

2. NAME

 

VIETNAM PLASTIC CORPORATION

Business Registration

 

0300381966

Date of Registration

 

09 Aug 2011

Place of Registration

 

Business registration office of Hochiminh city

Registered Capital

 

VND 198,000,000,000

Tax code

 

0300381966

Address

 

300B Nguyen Tat Thanh Street, Ward 13, 4 District, Ho Chi Minh City, Vietnam

Tel

 

(84-8) 3940 2300

Email

 

vnplast@hcm.vnn.vn

Website

 

www.vinaplast.com.vn

Value of shares

 

USD 5,250,000

Percentage

 

15%

 

3. NAME

 

THAI PLASTIC AND CHEMICALS PUBLIC COMPANY LIMITED

Business Registration

 

0107537001242

Date of Registration

 

26 Apr 1994

Place of Registration

 

Thailand

Address

 

14th - 15th floor, Rajanakarn building, No. 183 South Sathorn road, Yannawa, Sathorn, Bangkok, 10120, Thailand

Value of shares

 

USD 24,500,000

Percentage

 

70%

 

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

Audit status

Unknown

Unknown

ASSETS

A – CURRENT ASSETS

422,013,929,929

733,171,612,922

I. Cash and cash equivalents

21,804,200,188

53,670,051,399

1. Cash

21,804,200,188

53,670,051,399

2. Cash equivalents

0

0

II. Short-term investments

0

0

1. Short-term investments

0

0

2. Provisions for devaluation of short-term investments

0

0

III. Accounts receivable

280,210,433,306

313,216,476,569

1. Receivable from customers

278,882,708,384

304,096,141,160

2. Prepayments to suppliers

459,147,389

3,650,746,919

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

868,577,533

5,616,525,815

6. Provisions for bad debts

0

-146,937,325

IV. Inventories

118,812,622,603

326,323,461,898

1. Inventories

118,812,622,603

326,323,461,898

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

1,186,673,832

39,961,623,056

1. Short-term prepaid expenses

651,745,486

3,779,491,335

2. VAT to be deducted

534,928,346

35,006,586,467

3. Taxes and other accounts receivable from the State

0

1,175,545,254

4. Other current assets

0

0

B. LONG-TERM ASSETS

1,223,399,752,703

1,311,041,448,685

I. Long term accounts receivable

0

0

1. Long term account receivable from customers

0

0

2. Working capital in affiliates

0

0

3. Long-term inter-company receivable

0

0

4. Other long-term receivable

0

0

5. Provisions for bad debts from customers

0

0

II. Fixed assets

1,217,561,812,034

1,296,290,412,391

1. Tangible assets

1,101,214,924,710

1,177,372,589,564

- Historical costs

1,903,148,474,250

1,896,807,792,481

- Accumulated depreciation

-801,933,549,540

-719,435,202,917

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

112,483,367,603

118,917,822,827

- Initial costs

223,179,874,427

223,179,874,427

- Accumulated amortization

-110,696,506,824

-104,262,051,600

4. Construction-in-progress

3,863,519,721

0

III. Investment property

0

0

Historical costs

0

0

Accumulated depreciation

0

0

IV. Long-term investments

0

0

1. Investments in affiliates

0

0

2. Investments in business concerns and joint ventures

0

0

3. Other long-term investments

0

0

4. Provisions for devaluation of long-term investments

0

0

V. Other long-term assets

5,837,940,669

14,751,036,294

1. Long-term prepaid expenses

5,080,851,539

13,981,865,862

2. Deferred income tax assets

0

0

3. Other long-term assets

757,089,130

769,170,432

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

1,645,413,682,632

2,044,213,061,607

 

LIABILITIES

A- LIABILITIES

975,302,198,199

1,347,727,304,632

I. Current liabilities

760,549,807,394

1,089,971,821,295

1. Short-term debts and loans

614,279,073,275

489,670,310,512

2. Payable to suppliers

92,402,587,024

527,578,295,933

3. Advances from customers

815,320,000

781,660

4. Taxes and other obligations to the State Budget

6,658,899,157

15,420,756,709

5. Payable to employees

3,245,873,004

2,766,266,597

6. Accrued expenses

8,469,026,290

9,805,973,851

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

34,679,028,644

44,729,436,033

10. Provisions for short-term accounts payable

0

0

II. Long-Term Liabilities

214,752,390,805

257,755,483,337

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

208,279,993,322

252,426,666,414

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

6,472,397,483

5,328,816,923

7. Provisions for long-term accounts payable

0

0

B- OWNER’S EQUITY

670,111,484,433

696,485,756,975

I. OWNER’S EQUITY

670,111,484,433

696,485,756,975

1. Capital

662,620,000,000

662,620,000,000

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

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

7,491,484,433

33,865,756,975

11. Construction investment fund

0

0

II. Other sources and funds

0

0

1. Bonus and welfare funds (Elder form)

0

0

2. Sources of expenditure

0

0

3. Fund to form fixed assets

0

0

MINORITY’S INTEREST

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

1,645,413,682,632

2,044,213,061,607

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

2,727,409,663,824

2,431,210,128,103

2. Deduction item

0

0

3. Net revenue

2,727,409,663,824

2,431,210,128,103

4. Costs of goods sold

2,504,763,343,817

2,346,024,851,683

5. Gross profit

222,646,320,007

85,185,276,420

6. Financial income

41,474,017,745

76,136,814,800

7. Financial expenses

202,636,503,340

99,381,928,778

- In which: Loan interest expenses

0

0

8. Selling expenses

52,133,766,445

53,506,742,249

9. Administrative overheads

36,202,409,835

59,145,059,543

10. Net operating profit

-26,852,341,868

-50,711,639,350

11. Other income

478,069,326

196,746,973

12. Other expenses

0

0

13. Other profit /(loss)

478,069,326

196,746,973

14. Total accounting profit before tax

-26,374,272,542

-50,514,892,377

15. Current corporate income tax

0

-1,501,845,778

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

-26,374,272,542

-49,013,046,599

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

0.55

0.67

1.65

Quick liquidity ratio

0.40

0.37

0.95

Inventory circle

11.25

7.19

5.36

Average receive period

37.50

47.02

69.02

Utilizing asset performance

1.66

1.19

1.15

Liability by total assets

59.27

65.93

55.74

Liability by owner's equity

145.54

193.50

197.00

Ebit / Total assets (ROA)

-1.60

-2.47

11.75

Ebit / Owner's equity (ROE)

-3.94

-7.25

26.54

Ebit / Total revenue (NPM)

-0.97

-2.08

10.24

Gross profit / Total revenue (GPM)

8.16

3.50

19.81

Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Low

Payment status

 

Low

Financial Situation

 

Above Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

T/T, L/C

Sale Methods

 

Wholesaler

Public opinion

 

Good

 

 

 

INTERPRETATION ON THE SCORES

 

The subject was established as a Joint Venture Company under the former Investment License No. 1287/GP, granted by Ministry of Planning and Investment. Currently, it is operating under the Investment Certificate No. 472023000582 granted by Dong Nai Industrial Zones Authority. It was invested by two Vietnamese companies and one Thai Company with the charted capital is USD 35,000,000.

The company's head office and factory are located at Go Dau Industrial Park, Phuoc Thai Commune, Long Thanh District, Dong Nai Province, Viet Nam. It is occupied on the total area land of 240,000 meter-square. It also has a transaction office in Ho Chi Minh City and a representative office in Hanoi.

The company specializes in manufacturing and trading PVC resin. It is considered as one of the largest PVC resin manufacturer in Viet Nam. Currently, most of its products are consumed in domestic market. Only one part of them is exported. The technology and new product of the subject are developed by with Thai Plastic and Chemical Public Company Limited. It is a company in the top of Vietnam PVC plastic industry.

PVC resin is the essential raw material for plastic processing industries that supply items used in construction (water supply pipe & hose, window & door frame, ceiling profile), electric power transmission (wire & cable insulation), customer products(artificial leather, bottle, cover sheet). By using modern technology, TPC Vina has been continuously supplying PVC resin for Vietnam market and for neighboring countries since 1998.

According to the financial statement in 2011, we found that the subject's operating result was not good with considerable amount of loss. However, the revenue increased and it the loss decreased in comparison with 2010. The large revenue show the subject's market share is large.

The subject's debt ratio was low. Its debt rate decreased from 41.75% to 35.58%, so its capital structure was very safe. These shows, its self-financing and solvency were strong. However, with the low debt rate, its effective operation would be reduced.

Despite of the very moderate debt ratio the liquidity was low. The liquidity was low because the current asset rate is humble in total assets. In 2011, the subject's quick liquidity decreased slightly because the decrease of the current assets was higher the decrease of the current liabilities.

In 2011, the subject's utilizing asset performances was improved well and it was still higher in comparison with the industry. Its inventory turnover increased well because its sales policy worked efficiently. Its receivable turnover high because the subject applied the tighter credit policies for its customers. Its profitability was not good because the cost management was inefficient.

In general, the subject is a large foreign company with long time of operation in the industry. Its position and future prospect are good. With the strong self-financing ability, it can meet the small-medium payment 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.55.44

UK Pound

1

Rs.89.30

Euro

1

Rs.71.61

 

 

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%)

 

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.