MIRA INFORM REPORT

 

 

Report Date :

02.08.2013

 

IDENTIFICATION DETAILS

 

Name :

FSI VIET NAM COMPANY LIMITED

 

 

Registered Office :

No. 29 - Group 52 Vong Thi Str. - Buoi Ward, Tay Ho District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

2009

 

 

Com. Reg. No.:

0103812250

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Subject focuses on trading chemical and electric equipment.

 

 

No. of Employees :

45

 

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

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

 

Current legal status

English Name

 

FSI VIET NAM COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH FSI VIET NAM

Short name

 

FSI VN CO., LTD

Type of Business

 

Limited liability company

Year Established

 

2009

Business Registration No.

 

0103812250

Date of Registration

 

30 Mar 2010

Place of Registration

 

Planning and Investment Department of Hanoi City

Chartered capital

 

VND 6,900,000,000

Status

 

Unlisted

Tax code

 

0103812250

Total Employees

 

45

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Chartered capital: 5,000,000,000 VND

Changed to: 6,900,000,000 VND

22 Dec 2011

2

Subject has got former Shareholders: Mr. Tran Hoang Giang (80%) and Mr. Tran Trung Kien (20%)

Changed to: Mr. Tran Hoang Giang (35%), Mr. Tran Trung Kien (25%), Mr. Nguyen Manh Hien (18%), Mr. Nguyen Van Ngoc (10%), Mr. Pham Ngoc Thang (7%), Mr. Pham Duc Minh (5%)

22 Dec 2011

3

Subject has got former Business Registration No: 0102038561 (issued on 06 May 2009) Changed to: 0103812250

30 Mar 2010

 

 

 

ADDRESSES

 

Registration Address

Address

 

No. 29 - Group 52 Vong Thi Str. - Buoi Ward, Tay Ho District, Ha Noi City, Vietnam

 

Transaction office in Ha Noi

Address

 

No. 445 Hoang Quoc Viet Str., Tu Liem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3566 5855

Fax

 

(84-4) 6285 7600

 

Branch in Ho Chi Minh

Address

 

No. 48 Thich Buu Dang Street, Ward 1, Go Vap District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38955373

Fax

 

(84-8) 38955371

 

 

DIRECTORS

 

NAME

 

Mr. TRAN HOANG GIANG

Position

 

Director

Date of Birth

 

24 Oct 1980

ID Number/Passport

 

B1244947

Resident

 

Thi Kieu Hamlet Loc An Commune, Nam Dinh City, Nam Dinh Province, Vietnam

Current resident

 

No. 29 - Group 52 Vong Thi Str. - Buoi Ward, Tay Ho District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

Subject focuses on trading chemical and electric equipment.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Types of products

 

Chemical, Electric equipment

Market

 

America, China, India, Taiwan, Korea, Japan etc

 

EXPORT:

Note: Currently, the subject does not export

 

 

 

BANKERS

 

1. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM TAY HA NOI BRANCH

Address

 

Thang Long Bridge No.11 Company, Tu Liem District, Ha Noi City, Vietnam

 

2. ASIA COMMERCIAL BANK THANH XUAN TRANSACTION

Address

 

No.233B Nguyen Trai Street, Thanh Xuan District, Ha Noi City, Vietnam

Telephone

 

(84-4) 3557 4261

Fax

 

(84-4) 3557 4263

 

3. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM HOAN KIEM BRANCH

Address

 

2 Hang Bai, Hoan Kiem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 38251139

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. TRAN HOANG GIANG

Position

 

Director

Date of Birth

 

24 Oct 1980

ID Number/Passport

 

B1244947

Resident

 

Thi Kieu Hamlet Loc An Commune, Nam Dinh City, Nam Dinh Province, Vietnam

Current Resident

 

No. 29 - Group 52 Vong Thi Str. - Buoi Ward, Tay Ho District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 2,415,000,000

Percentage

 

35%

 

2. NAME

 

Mr. TRAN TRUNG KIEN

ID Number/Passport

 

013179903

Resident

 

Lane 12 Dao Tan Str. - Cong Vi Ward, Ba Dinh District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 1,725,000,000

Percentage

 

25%

 

3. NAME

 

Mr. NGUYEN MANH HIEN

ID Number/Passport

 

135394236

Resident

 

Bao Thap Hamlet Kim Hoa Commune, Me Linh District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 1,242,000,000

Percentage

 

18%

 

4. NAME

 

Mr. NGUYEN VAN NGOC

ID Number/Passport

 

162264230

Resident

 

Qua Linh Hamlet Thanh Loi Commune, Vu Ban District, Nam Dinh Province, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 690,000,000

Percentage

 

10%

 

5. NAME

 

Mr. PHAM NGOC THANG

ID Number/Passport

 

164103823

Resident

 

No. 22/1 HT26 Road, Hiep Thanh Ward, 12 District, Ho Chi Minh City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 483,000,000

Percentage

 

7%

 

6. NAME

 

Mr. PHAM DUC MINH

ID Number/Passport

 

012175444

Resident

 

P104, E3 Mechanical Company Collective, Thuong Dinh Ward, Thanh Xuan District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 345,000,000

Percentage

 

5%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: Million VND

Balance sheet date

31/12/2011

31/12/2010

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

29,062

9,273

I. Cash and cash equivalents

975

415

1. Cash

975

415

2. Cash equivalents

0

0

II. Short-term investments

0

0

1. Short-term investments

0

0

2. Provisions for devaluation of short-term investments

0

0

III. Accounts receivable

14,101

5,452

1. Receivable from customers

10,666

3,883

2. Prepayments to suppliers

3,435

1,569

3. Inter-company receivable

0

0

4. Receivable according to the progress of construction

0

0

5. Other receivable

0

0

6. Provisions for bad debts

0

0

IV. Inventories

13,782

3,269

1. Inventories

13,782

3,269

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

204

137

1. Short-term prepaid expenses

0

0

2. VAT to be deducted

164

105

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

40

32

B. LONG-TERM ASSETS

2,307

1,306

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

1,447

1,052

1. Tangible assets

1,447

1,052

- Historical costs

2,061

1,212

- Accumulated depreciation

-614

-160

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

0

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

860

254

1. Long-term prepaid expenses

0

0

2. Deferred income tax assets

0

0

3. Other long-term assets

860

254

VI. Goodwill

 

 

1. Goodwill

 

 

TOTAL ASSETS

31,369

10,579

 

LIABILITIES

A- LIABILITIES

23,734

5,612

I. Current liabilities

23,734

5,612

1. Short-term debts and loans

14,448

1,722

2. Payable to suppliers

8,103

2,741

3. Advances from customers

238

911

4. Taxes and other obligations to the State Budget

327

0

5. Payable to employees

0

238

6. Accrued expenses

618

0

7. Inter-company payable

0

0

8. Payable according to the progress of construction contracts

0

0

9. Other payable

0

0

10. Provisions for short-term accounts payable

0

0

11. Bonus and welfare funds

 

 

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

 

 

9. Science and technology development fund

 

 

B- OWNER’S EQUITY

7,635

4,967

I. OWNER’S EQUITY

7,635

4,967

1. Capital

6,900

5,000

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

0

0

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

735

-33

11. Construction investment fund

0

0

12. Business arrangement supporting fund

 

 

II. Other sources and funds

0

0

1. Bonus and welfare funds (Elder form)

0

0

2. Sources of expenditure

0

0

3. Fund to form fixed assets

0

0

MINORITY’S INTEREST

 

 

TOTAL LIABILITIES AND OWNER’S EQUITY

31,369

10,579

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2011

FY2010

1. Total Sales

62,923

14,241

2. Deduction item

25

0

3. Net revenue

62,898

14,241

4. Costs of goods sold

48,015

10,815

5. Gross profit

14,883

3,426

6. Financial income

232

6

7. Financial expenses

2,230

89

- In which: Loan interest expenses

2,230

89

8. Selling expenses

0

0

9. Administrative overheads

11,866

2,886

10. Net operating profit

1,019

457

11. Other income

12

0

12. Other expenses

7

0

13. Other profit /(loss)

5

0

14. Total accounting profit before tax

1,024

457

15. Current corporate income tax

256

0

16. Deferred corporate income tax

0

0

17. Interest from subsidiaries/related companies

 

 

18. Profit after tax

768

457

 

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2011

FY2010

Average Industry

Current liquidity ratio

1.22

1.65

1.88

Quick liquidity ratio

0.64

1.07

0.96

Inventory circle

5.63

3.31

15.21

Average receive period

81.83

139.74

49.96

Utilizing asset performance

2.01

1.35

2.95

Liability by total assets

75.66

53.05

66.83

Liability by owner's equity

310.86

112.99

256.69

Ebit / Total assets (ROA)

10.37

5.16

12.92

Ebit / Owner's equity (ROE)

42.62

10.99

41.70

Ebit / Total revenue (NPM)

5.17

3.83

5.07

Gross profit / Total revenue (GPM)

23.65

24.06

11.84

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Low/Medium

Payment status

 

Normal

Financial Situation

 

Below Average

Development trend

 

Developing

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

TT

Sale Methods

 

Retailer and Wholesaler

 

 

 

INTERPRETATION ON THE SCORES

 

FSI VIET NAM COMPANY LIMITED specializes in trading chemicals and electric equipments. The subject was established in 2009 under the former business registration No. 0102038561 in Hanoi City. In March, 2010, it changed its business registration into the new number of 0103812250 which is the same as its tax code, with the chartered capital of VND 6.9 billion.

Management capacity of the subject is average. It is under the management of Mr. Tran Hoang Giang who is also the major shareholder of the subject. At the moment, It has registration address located at No. 29, Group 52 Vong Thi Street, Buoi Ward - Tay Ho District - Hanoi City. However, all its transactions are operated at No. 445 Hoang Quoc Viet Str., Tu Liem District, Ha Noi City, Vietnam. In addition, the subject has a branch in Ho Chi Minh City. Total employees are about 45 people working in normal condition of premises and facilities.

In order to have chemicals for trading activities, the subject often imports them from many countries in the world as America, China and India, Taiwan, etc. Sometimes, it also imports electric equipments. After that, the subject’s products are distributed in the domestic market with customers of paint companies and other companies in industrial zones.

According to the financial statement in 2011, we found that the subject's operation was fair. These figures of revenue show it is operating with acceptable market share. In 2011, revenue of the subject was VND 62,923 million (increased 342% compared with the previous year), but profit only reached VND 768 million. This is caused by the increase of expense accounts, especially financial expenses and administrative overheads. Through conservation with Ms. Nga, accountant of the subject, she revealed that its total sales in 2012 reached about VND 125 billion, and profit attained VND 2.3 billion.

Based on the financial ratios, the subject's liquidity ratios decreased and debt rate had uptrend. With the humble amount of equity, the subject used mainly liabilities for its business activities, which occupied 75.66% of total assets. So its capital structure was not safe and its solvency was not good. In 2011, the subject's utilizing asset performances increased but it was still lower the industry. Its ROE was high because of high financial leverage.

In general, the subject is a young company. With the current operating situation, the subject has capacity to meet small financial commitment. Caution is needed for normal and big business transactions.

 

 

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.60.74

UK Pound

1

Rs.92.05

Euro

1

Rs.80.60

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.