MIRA INFORM REPORT

 

 

Report Date :

15.04.2013

 

IDENTIFICATION DETAILS

 

Correct Name :

TAN HUNG THAI CO., LTD 

 

 

Registered Office :

Lot H1 Street No. 1 - Le Minh Xuan Industrial Zone, Binh Chanh District, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

17.03.2003

 

 

Com. Reg. No.:

4102014478

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Wholesaler of chemicals (except toxicant chemical)

 

 

No. of Employees :

100

 

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 :

No  Complaints

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)

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

 

TAN HUNG THAI CO., LTD

Vietnamese Name

 

CONG TY TNHH TAN HUNG THAI

Trade name

 

TAN HUNG THAI CO., LTD

Type of Business

 

Limited liability company

Year Established

 

2003

Business Registration No.

 

4102014478

Date of Registration

 

17 Mar 2003

Date of latest adjustment (3rd)

 

08 Dec 2004

Place of Registration

 

Business Registration Office - Planning and Investment Department of Hochiminh City

Chartered capital

 

VND 8,200,000,000

Tax code

 

0302887282

Total Employees

 

100

 

 

Historical Identification & Legal form

List

Changed Items

1

Subject has got former Registered Vietnamese Name: CONG TY TNHH THUONG MAI TAN HUNG THAI

Changed to: CONG TY TNHH TAN HUNG THAI

2

Subject has got former Chartered capital: VND 2,500,000,000

Changed to: VND 8,200,000,000

 

CompaNY ADDRESSES

 

Head Office

Address

 

Lot H1 Street No. 1 - Le Minh Xuan Industrial Zone, Binh Chanh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3766 2174 - 3766 2173

Fax

 

(84-8) 3766 2175

Email

 

tanhungthai@yahoo.com 

Website

 

www.tanhungthai.com  

 

Branch in Ho Chi Minh

Address

 

284 Hai Thuong Lan Ong Street - Ward 14, District 5, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3855 9358 - 3950 9014

Fax

 

(84-8) 3853 8606

Note:  This address is also private house of subject’s director

 

 

DIRECTORS

 

1. NAME

 

Mr. LE HUNG THAI

Position

 

Chairman

Date of Birth

 

03 Jun 1970

ID Number/Passport

 

022557128

ID Issue Date

 

12 Oct 1996

ID Issue Place

 

Police Station of Hochiminh City

Resident

 

284 Hai Thuong Lan Ong Street, Ward 14, District 5, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 903 733 138

Qualification

 

Management

 

2. NAME

 

Mr. TRAN MINH TAM

Position

 

Deputy Director

ID Number/Passport

 

021652400

ID Issue Place

 

Police Station of Hochiminh City

Resident

 

395A Nguyen Duy Street, Ward 9, District 8, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Qualification

 

Management

 

3. NAME

 

Ms. NGUYEN THI MY LE

Position

 

Chief Accountant

Resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 903 626 472

Qualification

 

Accounting

 

4. NAME

 

Ms. PHAN HONG HANH

Position

 

Deputy Director

Resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Qualification

 

Management

 

5. NAME

 

Mr. MAI DUC HAO

Position

 

Human Resource Manager

Resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Qualification

 

Bachelor

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

Subject registered in:
• Wholesale of chemicals (except toxicant chemical)
• Trading and processing chemicals for industrial and food field
• Purchasing and processing solvent and varnishes for printing inks - paint - varnish
• Packaging of chemicals
• Wharf and warehousing services
• Aquaculture and seafood processing
• Sale of aquatic veterinary medicine

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Chemicals

·         Market

 

U.K, USA, Germany, Japan, Thailand, China, Indonesia, Malaysia, Singapore

 

EXPORT:

·         Market

 

N/A

 

 

 

BANKERS

 

1. VIETIN BANK HO CHI MINH CITY BRANCH NO. 1

Address

 

No. 93 – 95 Ham Nghi Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3821 5388

Fax

 

(84-8) 3829 0696

 

2. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM VINH LOC BRANCH

Address

 

Road No. 7 Vinh Loc Industrial Zone, Binh Hung Hoa Ward, Binh Tan District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3765 2469  

Fax

 

(84-8) 3765 1329

 

3. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK BINH TAY BRANCH

Address

 

129A Minh Phung Str, Ward 9, District 6, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3969 8264

Fax

 

(84-8) 3969 8267

VND Account

 

22611 0000 411

 

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. LE HUNG THAI

Position

 

Chairman

Date of Birth

 

03 Jun 1970

ID Number/Passport

 

022557128

Issued on

 

12 Oct 1996

Issued Place

 

Police Station of Hochiminh City

Resident

 

284 Hai Thuong Lan Ong Street, Ward 14, District 5, Ho Chi Minh City, Vietnam

Mobile phone

 

+84 903 733 138

Nationality

 

Vietnamese

Value of shares

 

VND 6,500,000,000

Percentage

 

79.27%

 

2. NAME

 

Mr. TRAN MINH TAM

Position

 

Deputy Director

ID Number/Passport

 

021652400

Issued Place

 

Police Station of Hochiminh City

Resident

 

395A Nguyen Duy Street, Ward 9, District 8, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 1,700,000,000

Percentage

 

20.73%

 

 

 

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

82,167,474,601

73,143,000,000

56,504,000,000

I. Cash and cash equivalents

11,490,200,235

3,035,000,000

1,956,000,000

1. Cash

11,490,200,235

3,035,000,000

1,956,000,000

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

33,228,403,115

31,300,000,000

20,685,000,000

1. Receivable from customers

30,158,203,623

28,712,000,000

18,231,000,000

2. Prepayments to suppliers

1,297,142,151

99,000,000

1,192,000,000

3. Inter-company receivable

0

0

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

1,773,057,341

2,489,000,000

1,262,000,000

6. Provisions for bad debts

0

0

0

IV. Inventories

37,183,932,381

35,743,000,000

27,366,000,000

1. Inventories

37,183,932,381

35,743,000,000

27,366,000,000

2. Provisions for devaluation of inventories

0

0

0

V. Other Current Assets

264,938,870

3,065,000,000

6,497,000,000

1. Short-term prepaid expenses

264,938,870

202,000,000

75,000,000

2. VAT to be deducted

0

0

0

3. Taxes and other accounts receivable from the State

0

0

54,000,000

4. Other current assets

0

2,863,000,000

6,368,000,000

B. LONG-TERM ASSETS

8,653,913,860

6,318,000,000

4,864,000,000

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

6,598,924,701

4,201,000,000

2,684,000,000

1. Tangible assets

4,184,475,726

4,201,000,000

2,684,000,000

- Historical costs

8,759,662,644

8,223,000,000

5,830,000,000

- Accumulated depreciation

-4,575,186,918

-4,022,000,000

-3,146,000,000

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

0

0

0

- Initial costs

0

0

0

- Accumulated amortization

0

0

0

4. Construction-in-progress

2,414,448,975

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

2,054,989,159

2,117,000,000

2,180,000,000

1. Long-term prepaid expenses

2,054,989,159

2,117,000,000

2,180,000,000

2. Deferred income tax assets

0

0

0

3. Other long-term assets

0

0

0

VI. Goodwill

0

0

0

1. Goodwill

0

0

0

TOTAL ASSETS

90,821,388,461

79,461,000,000

61,368,000,000

 

LIABILITIES

A- LIABILITIES

78,263,113,557

68,697,000,000

49,916,000,000

I. Current liabilities

11,263,113,557

13,697,000,000

17,916,000,000

1. Short-term debts and loans

185,500,000

4,965,000,000

1,199,000,000

2. Payable to suppliers

6,680,481,382

5,455,000,000

14,379,000,000

3. Advances from customers

196,250,800

105,000,000

0

4. Taxes and other obligations to the State Budget

3,762,592,662

3,162,000,000

2,338,000,000

5. Payable to employees

384,739,962

0

0

6. Accrued expenses

0

10,000,000

0

7. Inter-company payable

0

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

53,548,751

0

0

10. Provisions for short-term accounts payable

0

0

0

II. Long-Term Liabilities

67,000,000,000

55,000,000,000

32,000,000,000

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

67,000,000,000

55,000,000,000

32,000,000,000

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 Sale

0

0

0

9. Science and technology development fund

0

0

0

B- OWNER’S EQUITY

12,558,274,904

10,764,000,000

11,452,000,000

I. OWNER’S EQUITY

12,558,274,904

10,764,000,000

11,097,000,000

1. Capital

8,200,000,000

8,200,000,000

8,200,000,000

2. Share premiums

0

0

0

3. Other sources of capital

326,813,187

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

193,000,000

0

10. Retained earnings

4,031,461,717

2,371,000,000

2,897,000,000

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

0

0

0

II. Other sources and funds

0

0

355,000,000

1. Bonus and welfare funds (Elder form)

0

0

355,000,000

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

90,821,388,461

79,461,000,000

61,368,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

FY2009

1. Total Sales

321,390,986,630

242,392,000,000

188,796,000,000

2. Deduction item

51,000,000

326,000,000

3,000,000

3. Net sale

321,339,986,630

242,066,000,000

188,793,000,000

4. Costs of goods sold

287,856,813,260

215,452,000,000

169,620,000,000

5. Gross profit

33,483,173,370

26,614,000,000

19,173,000,000

6. Financial income

258,486,023

219,000,000

40,000,000

7. Financial expenses

13,514,677,447

13,330,000,000

8,593,000,000

- In which: Loan interest expenses

11,423,232,532

7,936,000,000

 

8. Selling expenses

11,753,900,477

8,783,000,000

6,119,000,000

9. Administrative overheads

4,226,360,715

1,763,000,000

1,071,000,000

10. Net operating profit

4,246,720,754

2,957,000,000

3,430,000,000

11. Other income

570,469,426

255,000,000

12,000,000

12. Other expenses

1,247,765

111,000,000

72,000,000

13. Other profit /(loss)

569,221,661

144,000,000

-60,000,000

14. Total accounting profit before tax

4,815,942,415

3,101,000,000

3,370,000,000

15. Current corporate income tax

0

731,000,000

474,000,000

16. Deferred corporate income tax

0

0

0

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

4,815,942,415

2,370,000,000

2,896,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

FY2009

Average Industry

Current liquidity ratio

7.30

5.34

3.15

1.88

Quick liquidity ratio

3.99

2.73

1.63

0.96

Inventory circle

7.74

6.03

6.20

15.21

Average receive period

37.74

47.20

39.99

49.96

Utilizing asset performance

3.54

3.05

3.08

2.95

Liability by total assets

86.17

86.45

81.34

66.83

Liability by owner's equity

623.20

638.21

435.87

256.69

Ebit / Total assets (ROA)

17.88

13.89

5.49

12.92

Ebit / Owner's equity (ROE)

129.31

102.54

29.43

41.70

Ebit / Total sale (NPM)

5.05

4.55

1.79

5.07

Gross profit / Total sale (GPM)

10.42

10.98

10.16

11.84

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

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

High

Payment status

 

Average

Financial Situation

 

Above Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

By cash or through the bank, L/C, T/T

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Normal

 

 

INTERPRETATION ON THE SCORES

 

TAN HUNG THAI CO., LTD was originally founded in 2003 with capital of VND 2.5 billion. After that, subject had increased chartered capital to VND 8.2 billion. With 45 employees in 2010, at the present, it is operating with staff of 100 people.

The subject is specializing in trading and processing chemicals for fields such as  industry, aquiculture, agriculture and food. The main products are  Caustic Soda, Sodium Hydrosulfite, Sodium Metabisulfite, Sodium Sulfite, Sodium Sulfate, Trilon BX and BD, Sodium Benzoate, Sorbitol, Potassium Sorbate, Acid Sorbic, Acid Citric, Acid Acetic, Acid Nitric, Acid Oxalic, Acid Phosphoric… The subject imports products from U.K, USA, Germany, Japan, Thailand, China, Indonesia, Malaysia, and Singapore… and provides to domestic market only.

At present, it is close partner with famous large corporations or companies in the world such as: BASF Aktiengesellschaft, Mitsubishi Corporation, Tosoh Corporation, Daicel Chemical Industries Ltd., Formosa Plastics Corporation, AGC Chemicals (Thailand) Co., Ltd., Worldbest Biochemical (Thailand) Co., Ltd., Emerald Performance Materials Kalama Chemicals, Esterchem Sdn. Bhd, Dow Corning Europe, P.T Sorini Corporation TBK…

In addition, its products are used in raw materials and production auxiliary materials, pharmacy, pesticide, dye, leather production, combustion-supporting additives, and feedstuffs additives. The subject successfully sells its products to more than 20 provinces and cities such as Tien Giang, Vinh Long, Kien Giang, Can Tho and Northeast of Vietnam.

According to the financial statement in 2011, total assets increases year after year while 90% of total assets was current assets. Its liquidity ratio was so good. Although, its liability by owner's equity was high but about 85% of total liability was long-term liabilities. So, its solvency was fair good in short term. Its sale increased 33% and profit after tax increased 55% comparision with 2010. Both ROA and ROE were better than average industry.

In general, although subject is a medium company in the industry, its operation is fair effective and stable. Future prospect of subject seems bright. In our opinion, subject has enough capacity to meet the normal financial commitment.

 

 

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.54.44

UK Pound

1

Rs.83.78

Euro

1

Rs.71.33

 

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.