MIRA INFORM REPORT

 

 

Report Date :

27.04.2013

 

IDENTIFICATION DETAILS

 

Name :

HOANG DUNG TRADING COMPANY LIMITED

 

 

Registered Office :

No. 737 Le Hong Phong Street, Ward 12, District 10, Ho Chi Minh City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Year of Incorporation :

1995

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Trading in machines, materials, equipment, household appliances, electrical equipment, fabrics, handicraft products, cars, motorbikes and spare parts, construction materials, foods and foodstuffs: wine, beer, tobacco, processed food, agro and aqua products

 

 

No. of Employees :

50

 

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. 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 hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

Source : CIA


 

 

SUBJECT IDENTIFICATION & LEGAL FORM

 

Translation English Name

 

HOANG DUNG TRADING COMPANY LIMITED

Registered Vietnamese Name

 

CONG TY TNHH THUONG MAI HOANG DUNG

Trade name

 

HOANG DUNG TRADING CO., LTD

Regisetred Short name

 

HOANG DUNG CO., LTD

Type of Business

 

Limited liability company

Year Established

 

1995

Establishment Decision

 

1726/GP-UB

Date of Issuance

 

02 Aug 1995

Place of Issuance

 

People's Committee of Ho Chi Minh City

Business Registration No.

 

0301148514

Date of latest adjustment (11th)

 

18 May 2012

Place of Registration

 

Business Registration Office- Planning and Investment Department of Ho Chi Minh City

Chartered capital

 

VND 19,000,000,000

Tax code

 

0301148514

Total Employees

 

50

Size

 

Medium

 

 

ADDRESSES

 

Head Office

Address

 

No. 737 Le Hong Phong Street, Ward 12, District 10, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3863 3472 / 3862 0640

Fax

 

(84-8) 3865 7295

Email

 

hoangdungvn@hac.vnn.vn

Website

 

www.hoangdung.com.vn

 

Branch in Ho Chi Minh

Address

 

No. 41 Vo Van Bich street, Binh My Commune, Cu Chi District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3797 8146

Fax

 

(84-8) 3797 8147

 

 

DIRECTORS

 

1. NAME

 

Mr. NGUYEN QUANG VINH

Position

 

Director

Date of Birth

 

02 Sep 1958

ID Number/Passport

 

025082174

ID Issue Date

 

13 Mar 2009

ID Issue Place

 

Police station of Hochiminh City

Resident

 

No. 737 Le Hong Phong Street- Ward 12, District 10, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 903 907 156

Email

 

vinh@hoangdung.com.vn 

Qualification

 

Management

 

2. NAME

 

Ms. DO THI THU HA

Position

 

Assistant of Director

Resident

 

Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Email

 

thuha@hoangdung.com.vn 

 

 

BUSINESS NATURE AND ACTIVITIES

 

Trading in machines, materials, equipment, household appliances, electrical equipment, fabrics, handicraft products, cars, motorbikes and spare parts, construction materials, foods and foodstuffs: wine, beer, tobacco, processed food, agro and aqua products
Providing commercial services
Trading in turpentine and related products
Trading in wood
Processing rubber latex and wood
Providing forwarding and logistics services
Trading in chemical, raw latex and semi-processed latex
Goods transportation by land and by waterway
Manufacturing and trading in wooden furniture
Manufacturing synthetic rubber products

 

 

IMPORT & EXPORT ACTIVITIES

 

 

EXPORT:

·         Types of products

 

Rubber

·         Market

 

China, Malaysia, Taiwan, Singapore, EU, USA...

IMPORT:

·         Types of products

 

Material

·         Market

 

Thailand

 

 

BANKERS

 

1. ASIA COMMERCIAL BANK

Address

 

No.442, Nguyen Thi Minh Khai Street, District 3, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3929 0999

Fax

 

(84-8) 3839 9885

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. NGUYEN QUANG VINH

Position

 

Director

Date of Birth

 

02 Sep 1958

ID Number/Passport

 

025082174

Issued on

 

13 Mar 2009

Issued Place

 

Police station of Hochiminh City

Resident

 

No. 737 Le Hong Phong Street- Ward 12, District 10, Ho Chi Minh City, Vietnam

Email

 

vinh@hoangdung.com.vn 

Mobile phone

 

+84 903 907 156

Nationality

 

Vietnamese

Value of shares

 

VND 15,200,000,000

Percentage

 

80%

 

2. NAME

 

Mr. NGUYEN ANH DUNG

ID Number/Passport

 

024020754

Resident

 

No. 737 Le Hong Phong Street- Ward 12, District 10, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 3,800,000,000

Percentage

 

20%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

230,440,000,000

206,454,000,000

I. Cash and cash equivalents

11,753,000,000

19,528,000,000

1. Cash

11,753,000,000

19,528,000,000

2. Cash equivalents

0

0

II. Short-term investments

0

9,000,000,000

1. Short-term investments

0

9,000,000,000

2. Provisions for devaluation of short-term investments

0

0

III. Accounts receivable

85,826,000,000

85,154,000,000

1. Receivable from customers

60,805,000,000

43,642,000,000

2. Prepayments to suppliers

24,965,000,000

41,451,000,000

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

56,000,000

61,000,000

6. Provisions for bad debts

0

0

IV. Inventories

115,943,000,000

78,128,000,000

1. Inventories

115,943,000,000

78,128,000,000

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

16,918,000,000

14,644,000,000

1. Short-term prepaid expenses

0

0

2. VAT to be deducted

7,607,000,000

14,060,000,000

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

9,311,000,000

584,000,000

B. LONG-TERM ASSETS

16,022,000,000

14,748,000,000

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

16,022,000,000

14,748,000,000

1. Tangible assets

14,564,000,000

14,748,000,000

- Historical costs

19,842,000,000

18,265,000,000

- Accumulated depreciation

-5,278,000,000

-3,517,000,000

2. Financial leasehold assets

0

0

- Historical costs

0

0

- Accumulated depreciation

0

0

3. Intangible assets

0

0

- Initial costs

0

0

- Accumulated amortization

0

0

4. Construction-in-progress

1,458,000,000

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

0

0

1. Long-term prepaid expenses

0

0

2. Deferred income tax assets

0

0

3. Other long-term assets

0

0

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

246,462,000,000

221,202,000,000

 

LIABILITIES

A- LIABILITIES

223,613,000,000

200,550,000,000

I. Current liabilities

223,613,000,000

200,550,000,000

1. Short-term debts and loans

212,256,000,000

146,876,000,000

2. Payable to suppliers

2,050,000,000

13,645,000,000

3. Advances from customers

7,308,000,000

11,352,000,000

4. Taxes and other obligations to the State Budget

1,700,000,000

95,000,000

5. Payable to employees

0

0

6. Accrued expenses

-3,000,000

0

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

302,000,000

28,582,000,000

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

0

0

II. Long-Term Liabilities

0

0

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

0

0

5. Deferred income tax payable

0

0

6. Provisions for unemployment allowances

0

0

7. Provisions for long-term accounts payable

0

0

8. Unearned Revenue

0

0

9. Science and technology development fund

0

0

B- OWNER’S EQUITY

22,849,000,000

20,652,000,000

I. OWNER’S EQUITY

22,837,000,000

20,640,000,000

1. Capital

22,300,000,000

19,373,000,000

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

-2,374,000,000

-1,660,000,000

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

2,911,000,000

2,927,000,000

11. Construction investment fund

0

0

12. Business arrangement supporting fund

0

0

II. Other sources and funds

12,000,000

12,000,000

1. Bonus and welfare funds (Elder form)

0

0

2. Sources of expenditure

12,000,000

12,000,000

3. Fund to form fixed assets

0

0

MINORITY’S INTEREST

0

 

TOTAL LIABILITIES AND OWNER’S EQUITY

246,462,000,000

221,202,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

1. Total Sales

1,715,578,000,000

2. Deduction item

0

3. Net revenue

1,715,578,000,000

4. Costs of goods sold

1,686,113,000,000

5. Gross profit

29,465,000,000

6. Financial income

17,506,000,000

7. Financial expenses

17,474,000,000

- In which: Loan interest expenses

9,757,000,000

8. Selling expenses

0

9. Administrative overheads

25,436,000,000

10. Net operating profit

4,061,000,000

11. Other income

0

12. Other expenses

0

13. Other profit /(loss)

0

14. Total accounting profit before tax

4,061,000,000

15. Current corporate income tax

1,015,000,000

16. Deferred corporate income tax

0

17. Interest from subsidiaries/related companies

0

18. Profit after tax

3,046,000,000

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.03

1.03

1.65

Quick liquidity ratio

0.51

0.64

0.95

Inventory circle

17.38

-

5.36

Average receive period

18.26

-

69.02

Utilizing asset performance

6.96

-

1.15

Liability by total assets

90.73

90.66

55.74

Liability by owner's equity

978.66

971.09

197.00

Ebit / Total assets (ROA)

5.61

-

11.75

Ebit / Owner's equity (ROE)

60.48

-

26.54

Ebit / Total revenue (NPM)

0.81

-

10.24

Gross profit / Total revenue (GPM)

1.72

-

19.81

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Medium

Payment status

 

Average

Financial Situation

 

Average

Development trend

 

Developing

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

by cash or through the bank,TT,LC

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Normal

 


 

 

 

 

 

 

 


 

INTERPRETATION ON THE SCORES

 

The subject - HOANG DUNG CO., LTD - is a limited liability company which was established in 1995. At current, subject operates under business registration no. 0301148514 and registered capital VND 19 billion. The subject is a manufacturer and exporter in rubber products and rubber woods. Its products are TSR (Technically Specified Rubbers) such as SVR of all types (SVR3L, SVR5, SVR10, SVR20, RSS3 for making car tire, Sole of shoes, conveyor belt), CSK of all types and sawn rubber wood.

The subject head office is located at No. 737 Le Hong Phong Street, Ward 12, District 10, Ho Chi Minh City, Vietnam. Besides, subject has one registered branch located at Cu Chi province, Ho Chi Minh City. 

Subject activates with medium scale in rubber manufacture industry. Management capacity and competition capacity of the subject is average. In this industry, subject must cope with more competitors, which are quite big and strong such as PHUOC HOA RUBBER, DAKRUCO, MIDLAND RUBBER, PHU RIENG RUBBER, LIEN ANH RUBBER, DONGPHU RUBBER, THONG NHAT RUBBER….

The subject is a member of Vietnam Rubber Association (VRA). The subject is one of the leading natural rubber exporters of Vietnam. The subject has been listed in “List of reliable exporters” among Vietnamese companies selected and published by Ministry of Trade of Vietnam. The subject exports about 80% of its subject rubber latex products. Up to now, the subject has exported products to China, Taiwan, Singapore, Malaysia, Korea, Spain, Italia, Czech, Russia…

In generally, the subject operates normally in medium scale with over 50 employees. In our opinion, it has capacity to meet small - medium financial commitments.

 

 

------------ APPENDIX ----------

 

 

INDUSTRY DATA

 

Industry code

GDP 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.54.29

UK Pound

1

Rs.83.88

Euro

1

Rs.70.67

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.