MIRA INFORM REPORT

Report Date :

04.04.2013

IDENTIFICATION DETAILS

Name :	SOUTH PACIFIC TRADING COMPANY LIMITED
Registered Office :	No.36 - Lane 5 Civil group 58 - Tran Quy Kien Str., Cau Giay District, Ha Noi City
Country :	Vietnam
Date of Incorporation :	25.03.2009
Com. Reg. No.:	0103656918
Legal Form :	Limited Liability Company
Line of Business :	subject trades in medical and health-care materials and equipment’s
No. of Employees :	17

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 – 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
Current legal status
English Name	SOUTH PACIFIC TRADING COMPANY LIMITED
Vietnamese Name	CONG TY TNHH THUONG MAI NAM THAI BINH DUONG
Type of Business	Limited liability company
Year Established	2009
Business Registration No.	0103656918
Date of Registration	25 Mar 2009
Place of Registration	Hanoi Department of Planning and Investment
Chartered capital	4,800,000,000 VND
Status	Unlisted
Tax code	0103656918
Total Employees	17
Size	Small

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 0102038140 Changed to: 0103656918 (same to the tax code number according to the new law of Vietnam)	N/A

Company ADDRESSES
Head Office
Address	No.36 - Lane 5 Civil group 58 - Tran Quy Kien Str., Cau Giay District, Ha Noi City, Vietnam
Telephone	(84-4) 37932375
Fax	(84-4) 37932164
Warehouse
Address	Group 8 Xuan Phuong Commune, Tu Liem District, Ha Noi City, Vietnam

DIRECTORS
1. NAME	Mr. NGUYEN HONG THAI
Position	Director
Date of Birth	22 Nov 1980
ID Number/Passport	135160292
ID Issue Date	13 Jul 2001
ID Issue Place	Police Station of Vinh Phuc Province
Resident	Lien Chau Commune, Yen Lac District, Vinh Phuc Province, Vietnam
Current resident	Ngoc Mach Xuan Phuong, Tu Liem District, Ha Noi City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	++84 902 286 124
2. NAME	Mr. KIEU VAN KHIET
Position	Vice Director
ID Number/Passport	131329350
ID Issue Place	Police Station of Vinh Phuc Province
Current resident	Ha Noi City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	++84 989 067 338

BUSINESS NATURE AND ACTIVITIES

The subject trades in medical and health-care materials and equipment’s. It imports from foreign market then supplies for local demand.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Market	China (90%), India, Thailand, Singapore
· Ratio	100%
· Mode of payment	T/T, L/C
EXPORT:
Note: Currently, the subject does not export

BANKERS
1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM BA DINH BRANCH
Address	No.18 Nui Truc, Ba Dinh District, Ha Noi City, Vietnam
Telephone	(84-4) 37264014
VND Account	1260000009720
2. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT CAU GIAY BRANCH
Address	No.99 Tran Dang Ninh Street, Cau Giay District, Ha Noi City, Vietnam
Telephone	(84-4) 37910816
Fax	(84-4) 37910813
VND Account	1507201059909
3. ASIA COMMERCIAL BANK NGUYEN KHANH TOAN BRANCH
Address	P103 - B1 No. 96 Nguyen Khanh Toan - Quan Hoa, Cau Giay District, Ha Noi City, Vietnam
Telephone	(84-4) 3767 8292
Fax	(84-4) 3767 8295

SHAREHOLDERS
1. NAME	Mr. NGUYEN HONG THAI
Position	Director
Date of Birth	22 Nov 1980
ID Number/Passport	135160292
Issued on	13 Jul 2001
Issued Place	Police Station of Vinh Phuc Province
Resident	Lien Chau Commune, Yen Lac District, Vinh Phuc Province, Vietnam
Current Resident	Ngoc Mach Xuan Phuong, Tu Liem District, Ha Noi City, Vietnam
Mobile phone	++84 902 286 124
Nationality	Vietnamese
Value of shares	VND 3,360,000,000
Percentage	70%
2. NAME	Mr. KIEU VAN KHIET
Position	Vice Director
ID Number/Passport	131329350
Issued Place	Police Station of Vinh Phuc Province
Current Resident	Ha Noi City, Vietnam
Mobile phone	++84 989 067 338
Nationality	Vietnamese
Value of shares	VND 1,440,000,000
Percentage	30%

FINANCIAL DATA

N/A

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Normal
Liquidity	N/A
Payment status	N/A
Financial Situation	Below Average
Development trend	N/A
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	TT, LC, DP
Sale Methods	To contracts
Public opinion	Normal

INTERPRETATION ON THE SCORES

SOUTH PACIFIC TRADING COMPANY LIMITED was established in March 2009 under the business registration no. 0102038140. Currently, its business registration was changed into same the tax code number 0103656918 and the chartered capital is VND 4.8 billion.

Core business of the company is importing medical materials from foreign market and supplying for manufacturers in the country. Total materials of the company has original from foreign countries, in which about 90% are imported from China.

The head office is located at No. 36, Lane 5, Group 58 Tran Quy Kien, Dich Vong Ward, Cau Giay Dist., Hanoi City. This is a house with 4 floors. The subject hires two floors (the first and second floors) with total area land of 70 m2. Mr. Kieu Van Khiet – deputy director said that total employees of the subject are about 15-17 people. According to our observation, there are about 5 persons working in the head office. Besides the head office, on the legal, the subject registered a store is located at Group 8, Xuan Phuong Commune, Tu Liem Dist., Hanoi City.

Financially, we have not information about the subject at present. In the interview with Mr. Nguyen Hong Thai, he said that the subject is always in the situation of lost business in recent years. In other source, the subject reached VND 5 billion of sale in the first year of operating and next year 2010 the number increased to about VND 20 billion. We attribute that the subject is a small company and its financial capacity is limited. Caution needed for normal and big business transaction with the company.

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.54.39
UK Pound	1	Rs.82.05
Euro	1	Rs.69.59

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.