MIRA INFORM REPORT

 

 

Report Date :

17.09.2012

 

IDENTIFICATION DETAILS

 

Name :

MEI SHENG TEXTILES VIETNAM CO., LTD

 

 

Registered Office :

Ngai Giao Industrial Zone, Ngai Giao Town, Chau Duc District, Ba Ria-Vung Tau Province

 

 

Country :

Viet Nam

 

 

Date of Incorporation :

2008

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Manufacturing and trading textiles

 

 

No. of Employees :

1,500

 

 

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 – 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

 

English Name

 

MEI SHENG TEXTILES VIETNAM CO., LTD

Vietnamese Name

 

CONG TY TNHH MEI SHENG TEXTILES VIET NAM

Type of Business

 

Limited liability company

Year Established

 

2008

Investment Certificate No

 

491043000097

Date Of Issuance

 

12 Apr 2008

Place of Issuance

 

Ba Ria -Vung Tau Province People’s Committee

Registered Investment Capital

 

USD 96,000,000

Chartered capital

 

N/A

Status

 

Unlisted

Tax code

 

3500865800

Total Employees

 

1,500

 

Note: The correct name of the subject is as above.

 

ADDRESSES

 

Head Office

Address

 

Ngai Giao Industrial Zone, Ngai Giao Town, Chau Duc District, Ba Ria-Vung Tau Province, Vietnam

Telephone

 

(84-64) 3 963 200

Fax

 

(84-64) 3 963 000

Website

 

www.meishengtextiles.com

 

 

 

DIRECTORS

 

1. NAME

 

Mr. SHIAU TONG CHENG GUAN

Position

 

General Director

Nationality

 

Chinese

 

2. NAME

 

Mr. ROBERT SHIAU

Position

 

Managing Director

Nationality

 

Chinese

 

3. NAME

 

Mr. GUDIVADA NARASIMHA RAO

Position

 

Chief Accountant

Nationality

 

Indonesian

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

Manufacturing and trading textiles

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Note: Currently, the subject does not import

 

EXPORT:

·         Market

 

Japan, Australia

 

 

 

BANKERS

 

1. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT CHAU DUC BRANCH

Address

 

297 Hung Vuong Ngai Giao, Chau Duc District, Ba Ria-Vung Tau Province, Vietnam

 

 

 

SHAREHOLDERS

 

1. NAME

 

ZHEIJANG MEISHENG INDUSTRY COMPANY LIMITED

Address

 

West Qianqing Economic Development Zone - Shaoxing County, Zhejiang Province, China

Tel

 

86-575-84519631

Fax

 

86-575-84051264

 

2. NAME

 

LEADING TEXTILES GROUP

Address

 

Australia

 

 

 

FINANCIAL DATA

 

N/A

 

 

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

 

LC,TT

Sale Methods

 

To contracts

 

 

 

INTERPRETATION ON THE SCORES

 

MEI SHENG TEXTILES VIETNAM CO., LTD has a short operation history in the field. The subject was founded in 2008; however after 2 year, it just completed the construction period and officially went into operation. Currently, it is operating under Investment Certificate No. 491043000097, licensed by Ba Ria -Vung Tau Province People’s Committee.

Head office and factories are located at Ngai Giao Industrial Zone Ngai Giao Town, Chau Duc District, Ba Ria-Vung Tau Province, Vietnam.  The subject specializes in producing and trading textiles as yarns, dyed yarns, dyed fabrics, knitted fabrics. Almost products of the subject are exported; the traditional markets are Japan and Australia.

Currently, it is operating with about 1,500 employees. The future prosperity of the subject seems fair. Its trademark in the field is normal. In 2011, the subject was fined, because it discharged untreated wastewater into the environment. Its dye house has been requested to seal several times.

Its financial data is not available in our source; thus, it is difficult for us to give the detail analysis on its circumstance.

In general, the subject is still a new company. The subject has capability to meet small payment commitments. Caution is still needed for normal – big business transactions.

 

 

 

 

 


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.54.72

UK Pound

1

Rs.88.60

Euro

1

Rs.71.34

 

 

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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