MIRA INFORM REPORT

 

 

Report Date :

04.04.2013

 

IDENTIFICATION DETAILS

 

Name :

GREEN TECH VIETNAM JOINT STOCK COMPANY

 

 

Registered Office :

Hamlet 1, An Tay Commune, Ben Cat District, Binh Duong Province, Vietnam

 

 

Country :

Viet Nam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

2003

 

 

Legal Form :

Joint stock company

 

 

Line of Business :

Manufacturing, processing leather, imitation leather for producing shoes, sandal, and bags for export.

 

 

No. of Employees :

300

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

Usually 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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Viet Nam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

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

English Name

 

GREEN TECH VIETNAM JOINT STOCK COMPANY

Vietnamese Name

 

CONG TY CO PHAN GREEN TECH VIET NAM

Trade name

 

GREEN TECH VIETNAM JOINT STOCK COMPANY

Type of Business

 

Joint stock company

Year Established

 

2003

Investment Certificate No

 

461033000109

Date Of Issuance

 

18 May 2007

Place of Issuance

 

People's Comittee of Ho Chi Minh City

Registered Investment Capital

 

USD 12,613,000

Chartered capital

 

USD   6,266,515

Investment Duration

 

50 years

Tax code

 

3700525456

Total Employees

 

300

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Registered English Name: GREEN TECH VIETNAM COMPANY LIMITED

Changed to: GREEN TECH VIETNAM JOINT STOCK COMPANY

18 May 2007

2

Subject has got former Registered Vietnamese Name: CONG TY TNHH GREEN TECH VIETNAM

Changed to: CONG TY CO PHAN GREEN TECH VIETNAM

18 May 2007

3

Subject has got former Business line: Limited liability company

Changed to: Joint Stock Company

18 May 2007

4

Subject has got former Business Registration No: No. 286/GP-BD which was issued on September 10th, 2004

Changed to: No. 461033000109

18 May 2007

 

 

 


ADDRESSES

 

Head Office

Address

 

Hamlet 1, An Tay Commune, Ben Cat District, Binh Duong Province, Vietnam

Telephone

 

84-650) 3580 800 – 3580 801 – 3580 802 – 3580 803 – 3580 804 – 3580 805 – 3580 806

Fax

 

(84-650) 3580808

Email

 

yj-greentech@hcm.vnn.vn

Note: the given tel “ 84-650-358080006” is incorrect

 

 

 

 

DIRECTORS

 

1. NAME

 

Mr. JEONG JAN TAE

Position

 

Chairman

Nationality

 

Korean

 

2. NAME

 

Mr. BAE HYO JO

Position

 

General Director

Nationality

 

Korean

 

3. NAME

 

Mr. HUYNH DONG PHONG

Position

 

Sales Manager

Nationality

 

Vietnamses

 

4. NAME

 

Ms. PHAN THI LINH PHUONG

Position

 

Chief Accountant

Nationality

 

Vietnamese

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject registers and operates in the following business activities:
- Manufacturing, processing leather, imitation leather for producing shoes, sandal, and bags for export.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Leather products

·         Market

 

Taiwan, Korea, Bangladesh, China, India, Japan

 

EXPORT:

·         Types of products

 

Chemicals, Leather products

·         Market

 

Korea, Malaysia, China, Indonesia

 

 

BANKERS

 

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM BINH DUONG BRANCH

Address

 

No 72 Phu Hoa ward, Thu Dau Mot City, Binh Duong Province, Vietnam

Telephone

 

(84-650) 3898 989

Fax

 

(84-650) 3831 220

 

2. KEXIM VIETNAM LEASING COMPANY LIMITED

Address

 

Flr 9, Diamond Plaza, No.34 Le Duan Str, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3825 7000

Fax

 

(84-8) 3823 0854

 

3. SHINHANVINA JOINT VENTURE BANK HO CHI MINH BRANCH

Address

 

41 Nguyen Thi Minh Khai, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3823 0012

Fax

 

(84-8) 3829 9386

 

 


 

SHAREHOLDERS

 

 

1. NAME

 

Mr. JEONG JAN TAE

Position

 

Chairman

Nationality

 

Korean

Percentage

 

52.08%

 

2. NAME

 

Mr. HAN MYENG JIN

Nationality

 

Korean

Percentage

 

23.96%

 

3. NAME

 

Mr. KIM ME AE

Nationality

 

Korean

Percentage

 

23.96%

 

 

 

 

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

ASSETS

A – CURRENT ASSETS

188,011,000,000

167,486,000,000

149,271,000,000

I. Cash and cash equivalents

144,000,000

1,983,000,000

1,616,000,000

1. Cash

144,000,000

1,983,000,000

1,616,000,000

2. Cash equivalents

0

0

0

II. Short-term investments

0

0

0

1. Short-term investments

0

0

0

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

23,964,000,000

18,574,000,000

25,997,000,000

1. Receivable from customers

22,979,000,000

17,064,000,000

23,784,000,000

2. Prepayments to suppliers

1,218,000,000

1,743,000,000

2,445,000,000

3. Inter-company receivable

0

0

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

0

0

1,000,000

6. Provisions for bad debts

-233,000,000

-233,000,000

-233,000,000

IV. Inventories

160,203,000,000

142,034,000,000

116,838,000,000

1. Inventories

160,203,000,000

142,034,000,000

116,838,000,000

2. Provisions for devaluation of inventories

0

0

0

V. Other Current Assets

3,700,000,000

4,895,000,000

4,820,000,000

1. Short-term prepaid expenses

36,000,000

523,000,000

492,000,000

2. VAT to be deducted

737,000,000

1,397,000,000

1,094,000,000

3. Taxes and other accounts receivable from the State

31,000,000

19,000,000

201,000,000

4. Other current assets

2,896,000,000

2,956,000,000

3,033,000,000

B. LONG-TERM ASSETS

45,219,000,000

53,376,000,000

60,197,000,000

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

42,602,000,000

52,150,000,000

58,882,000,000

1. Tangible assets

37,395,000,000

47,117,000,000

52,835,000,000

- Historical costs

111,390,000,000

111,515,000,000

107,422,000,000

- Accumulated depreciation

-73,995,000,000

-64,398,000,000

-54,587,000,000

2. Financial leasehold assets

0

-307,000,000

573,000,000

- Historical costs

0

0

800,000,000

- Accumulated depreciation

0

-307,000,000

-227,000,000

3. Intangible assets

5,207,000,000

5,340,000,000

5,474,000,000

- Initial costs

6,675,000,000

6,676,000,000

6,677,000,000

- Accumulated amortization

-1,468,000,000

-1,336,000,000

-1,203,000,000

4. Construction-in-progress

0

0

0

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

0

0

0

1. Investments in affiliates

0

0

0

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

0

0

0

4. Provisions for devaluation of long-term investments

0

0

0

V. Other long-term assets

2,617,000,000

1,226,000,000

1,315,000,000

1. Long-term prepaid expenses

2,467,000,000

1,076,000,000

1,078,000,000

2. Deferred income tax assets

0

0

0

3. Other long-term assets

150,000,000

150,000,000

237,000,000

VI. Goodwill

0

0

0

1. Goodwill

0

0

0

TOTAL ASSETS

233,230,000,000

220,862,000,000

209,468,000,000

 

LIABILITIES

A- LIABILITIES

141,551,000,000

128,866,000,000

119,763,000,000

I. Current liabilities

141,273,000,000

128,866,000,000

119,763,000,000

1. Short-term debts and loans

59,763,000,000

53,222,000,000

48,364,000,000

2. Payable to suppliers

54,031,000,000

54,055,000,000

54,076,000,000

3. Advances from customers

22,128,000,000

18,355,000,000

14,594,000,000

4. Taxes and other obligations to the State Budget

49,000,000

168,000,000

60,000,000

5. Payable to employees

1,674,000,000

1,031,000,000

1,083,000,000

6. Accrued expenses

0

0

0

7. Inter-company payable

0

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

3,628,000,000

2,035,000,000

1,586,000,000

10. Provisions for short-term accounts payable

0

0

0

11. Bonus and welfare funds

0

 

 

II. Long-Term Liabilities

278,000,000

0

0

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

0

0

0

4. Long-term debts and loans

278,000,000

0

0

5. Deferred income tax payable

0

0

0

6. Provisions for unemployment allowances

0

0

0

7. Provisions for long-term accounts payable

0

0

0

8. Unearned Revenue

0

 

 

9. Science and technology development fund

0

 

 

B- OWNER’S EQUITY

91,679,000,000

91,996,000,000

89,705,000,000

I. OWNER’S EQUITY

91,679,000,000

91,996,000,000

89,705,000,000

1. Capital

82,541,000,000

82,541,000,000

82,541,000,000

2. Share premiums

0

0

0

3. Other sources of capital

0

0

0

4. Treasury stocks

0

0

0

5. Differences on asset revaluation

0

0

0

6. Foreign exchange differences

0

0

0

7. Business promotion fund

0

0

0

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

9,138,000,000

9,455,000,000

7,164,000,000

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

0

 

 

II. Other sources and funds

0

0

0

1. Bonus and welfare funds (Elder form)

0

0

0

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

233,230,000,000

220,862,000,000

209,468,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

1. Total Sales

270,236,000,000

220,174,000,000

232,112,000,000

2. Deduction item

0

0

29,000,000

3. Net revenue

270,236,000,000

220,174,000,000

232,083,000,000

4. Costs of goods sold

241,141,000,000

197,628,000,000

219,478,000,000

5. Gross profit

29,095,000,000

22,546,000,000

12,605,000,000

6. Financial income

372,000,000

2,699,000,000

4,919,000,000

7. Financial expenses

13,778,000,000

8,124,000,000

9,157,000,000

- In which: Loan interest expenses

4,322,000,000

3,704,000,000

2,757,000,000

8. Selling expenses

5,117,000,000

4,289,000,000

3,442,000,000

9. Administrative overheads

10,498,000,000

10,603,000,000

11,537,000,000

10. Net operating profit

74,000,000

2,229,000,000

-6,612,000,000

11. Other income

4,000,000

308,000,000

160,000,000

12. Other expenses

160,000,000

123,000,000

375,000,000

13. Other profit /(loss)

-156,000,000

185,000,000

-215,000,000

14. Total accounting profit before tax

-82,000,000

2,414,000,000

-6,827,000,000

15. Current corporate income tax

0

123,000,000

0

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

-82,000,000

2,291,000,000

-6,827,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

FY2009

Average Industry

Current liquidity ratio

1.33

1.30

1.25

1.22

Quick liquidity ratio

0.20

0.20

0.27

0.91

Inventory circle

1.51

1.53

1.88

11.97

Average receive period

32.37

30.79

40.89

137.12

Utilizing asset performance

1.16

1.00

1.11

1.09

Liability by total assets

60.69

58.35

57.17

58.32

Liability by owner's equity

154.40

140.08

133.51

169.46

Ebit / Total assets (ROA)

1.82

2.77

-1.94

5.93

Ebit / Owner's equity (ROE)

4.62

6.65

-4.54

21.06

Ebit / Total revenue (NPM)

1.57

2.78

-1.75

5.12

Gross profit / Total revenue (GPM)

10.77

10.24

5.43

13.95

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

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Medium

Payment status

 

Above average

Financial Situation

 

Average

Development trend

 

Even

Litigation data

 

No

Bankruptcy

 

No

Payment Methods

 

Direct payment or through its corresponding bank, L/C, T/T

Sale Methods

 

Other

 

 

 

 

INTERPRETATION ON THE SCORES

 

The subject - GREEN TECH VIETNAM JOINT STOCK COMPANY is a foreign invested company. Being founded in 2003 as a liability limited company belonged to Yujin Industrial Co., Ltd of Korea, the subject has just changed to Joint Stock company in 2007.

The subject is located at Hamlet 1, An Tay Commune, Ben Cat District, Binh Duong Province, Vietnam. The subject specializes in the production and processing finished leather, safety working clothing, glove, and shoes. The subject’s products include cow split suede leather, PU coated leather, PU coated furniture leather, PU coated synthetic leather worker glove, welding glove, welding jacket & pants. The subject’s products are supplied in domestic mainly. Additon, the subject also exports to Korea, Malaysia, China, Indonesia. The subject imports materials (chemicals and leather material for production) from Taiwan, Korea, Bangladesh, China, India, Japan

According to the financial statement, business acitivities were not stable. Turnover of subject increased in recent years but profit after tax was not good. Because, its cost of goods sold was high. Quick liquidity ratio of subject was much lower than average industry. So its solvency was not high. Debt to equity ratio was fairly good so its structure capital was quite safe.

In general, the subject operates normally in medium scale with over 300 staff. The future prospect seems bright. In our opinion, the subject has capacity to meet all small-normal transactions.

 

 

 


APPENDIX

 

INDUSTRY DATA

Industry code

Growth speed by price compared with 1994 (%)

Total enterprises 2010

Total employees 2011

(Thous.pers.)

Annual average capital of enterprises 2010

(billion dongs)

2012

2011

Agriculture, Forestry and Fishing

2.72

4.00

8,887

24,362.9

95,227

Industry and Construction

4.52

5.53

95,217

10,718.9

3,641,376

Trade and Services

6.42

6.69

187,195

15,270.2

6,957,082

 

ECONOMIC INDICATORS

 

 

2012 

2011 

2010 

Population (Million person)

88.78

87.84

86.93

Gross Domestic Products (USD billion)

136

119

102.2

GDP Growth (%)

5.03

5.89

6.78

GDP Per Capita (USD/person/year)

1,540

1,300

1,160

Inflation (% Change in Composite CPI)

9.21

18.58

11.75

State Budget Deficit compared with GDP (%)

4.8

4.9

5.8

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2012 

2011 

2010 

Exports

114.6

96.3

72.2

Imports

114.3

105.8

84.8

Trade Balance

0.3

-9.5

-12.6

Source: General Statistics Office


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.38

UK Pound

1

Rs.82.04

Euro

1

Rs.69.58

 

 

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.