MIRA INFORM REPORT

 

 

Report Date :

06.08.2013

 

IDENTIFICATION DETAILS

 

Name :

VIETLAND IMPORT - EXPORT PRODUCTION JOINT STOCK COMPANY

 

 

Registered Office :

No. 2/C2 Group 1A Trung Liet Ward, Dong Da District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

2006

 

 

Com. Reg. No.:

0101953129

 

 

Legal Form :

Joint stock company

 

 

Line of Business :

The subject is mainly involving in manufacturing and trading in veneer and plywood.

 

 

No. of Employees :

20

 

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 – 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

Registered English Name

 

VIETLAND IMPORT - EXPORT PRODUCTION JOINT STOCK COMPANY

Registered Vietnamese Name

 

CONG TY CO PHAN SAN XUAT VA XUAT NHAP KHAU VIETLAND

Registered Short name

 

VIETNAMPRODUCTION.,JSC

Type of Business

 

Joint stock company

Year Established

 

2006

Business Registration No.

 

0101953129

Date of Registration

 

13 Oct 2008

Place of Registration

 

Hanoi Planning and investment Department

Current Chartered capital

 

VND 1,900,000,000

Status

 

Unlisted

Tax code

 

0101953129

Total Employees

 

20

Size

 

Small

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 0102026470

Changed to: 0101953129

13 Oct 2008

2

Subject has got former address: Transaction Office at Rm 108 – Y1, No. 135 Nui Truc, Ba Dinh District, Ha Noi City, Vietnam.

Changed to: Floor 6th, Sun Building, No. 220 Hao Nam, Dong Da District, Ha Noi City, Vietnam

N/A

 

 

 

ADDRESSES

 

Registration Address

Address

 

No. 2/C2 Group 1A Trung Liet Ward, Dong Da District, Ha Noi City, Vietnam

 

Transaction office in Ha Noi

Address

 

Floor 6th, Sun Building, No. 220 Hao Nam, Dong Da District, Ha Noi City, Vietnam

Telephone

 

(84-4) 66802800/62900958

Fax

 

(84-4) 37368663

Email

 

thuyvietland@gmail.com

Website

 

http://vietlandwood.com.vn

Note: Besides, the subject has a wood processing workshop in Huu Lung District, Bac Giang Province, Vietnam.

 

 

DIRECTORS

 

1. NAME

 

Ms. QUACH THI THUY

Position

 

Director

Date of Birth

 

01 Aug 1979

ID Number/Passport

 

012905871

ID Issue Date

 

27 Jul 2006

ID Issue Place

 

Police of Ha Noi City

Resident

 

No. 2/C2, Group 1A Trung Liet Ward, Dong Da District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is mainly involving in manufacturing and trading in veneer and plywood. It main products include all kinds of commercial plywood, film face plywood, face veneer, core veneer, sawn timber, wood logs etc.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Types of products

 

wood

Market

 

Europe and Africa

Payment Method

 

N/A

 

EXPORT:

Types of products

 

Products

Market

 

China, Korea, Malaysia etc

Payment Method

 

N/A

 

 

 

BANKERS

 

SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK LONG BIEN BRANCH

Address

 

No.484 Nguyen Van Cu Gia Thuy ward, Long Bien District, Ha Noi City, Vietnam

Telephone

 

(84-4) 36522055

Fax

 

(84-4) 36522066

 

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. QUACH QUANG THAI

ID Number/Passport

 

012718782

Resident

 

No. 72 Hang Bo Street Hang Bo Ward, Hoan Kiem District, Ha Noi City, Vietnam

Number of Shares

 

38,000

Value of shares

 

VND 380,000,000

Percentage

 

20%

 

2. NAME

 

Mr. TRAN DUC ANH

ID Number/Passport

 

011663823

Resident

 

No. 2/C2, Group 1A Trung Liet Ward, Dong Da District, Ha Noi City, Vietnam

Number of Shares

 

57,000

Value of shares

 

VND 570,000,000

Percentage

 

30%

 

3. NAME

 

Ms. QUACH THI THUY

Position

 

Director

Date of Birth

 

1979

ID Number/Passport

 

012905871

Issued on

 

27 Jul 2006

Issued Place

 

Police of Ha Noi City

Resident

 

No. 2/C2, Group 1A Trung Liet Ward, Dong Da District, Ha Noi City, Vietnam

Number of Shares

 

95,000

Value of shares

 

VND 950,000,000

Percentage

 

50%

 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2012

31/12/2011

Number of weeks

52

52

Audit status

Unaudited

Unaudited

ASSETS

A – CURRENT ASSETS

40,312,000,000

21,156,000,000

I. Cash and cash equivalents

4,932,000,000

8,875,000,000

1. Cash

4,932,000,000

8,875,000,000

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

26,054,000,000

10,122,000,000

1. Receivable from customers

22,399,000,000

9,639,000,000

2. Prepayments to suppliers

3,655,000,000

483,000,000

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

9,031,000,000

2,058,000,000

1. Inventories

9,031,000,000

2,058,000,000

2. Provisions for devaluation of inventories

0

0

V. Other Current Assets

295,000,000

101,000,000

1. Short-term prepaid expenses

0

0

2. VAT to be deducted

291,000,000

53,000,000

3. Taxes and other accounts receivable from the State

0

0

4. Other current assets

4,000,000

48,000,000

B. LONG-TERM ASSETS

1,228,000,000

1,280,000,000

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

924,000,000

976,000,000

1. Tangible assets

924,000,000

976,000,000

- Historical costs

1,045,000,000

1,034,000,000

- Accumulated depreciation

-121,000,000

-58,000,000

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

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

304,000,000

304,000,000

1. Long-term prepaid expenses

0

0

2. Deferred income tax assets

0

0

3. Other long-term assets

304,000,000

304,000,000

VI. Goodwill

0

0

1. Goodwill

0

0

TOTAL ASSETS

41,540,000,000

22,436,000,000

 

LIABILITIES

A- LIABILITIES

41,032,000,000

22,021,000,000

I. Current liabilities

41,032,000,000

22,021,000,000

1. Short-term debts and loans

4,181,000,000

1,414,000,000

2. Payable to suppliers

9,842,000,000

5,143,000,000

3. Advances from customers

26,936,000,000

15,279,000,000

4. Taxes and other obligations to the State Budget

73,000,000

185,000,000

5. Payable to employees

0

0

6. Accrued expenses

0

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

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

508,000,000

415,000,000

I. OWNER’S EQUITY

508,000,000

415,000,000

1. Capital

500,000,000

500,000,000

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

0

0

7. Business promotion fund

0

0

8. Financial reserved fund

0

0

9. Other funds

0

0

10. Retained earnings

8,000,000

-85,000,000

11. Construction investment fund

0

0

12. Business arrangement supporting fund

0

0

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

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

41,540,000,000

22,436,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2012

FY2011

1. Total Sales

56,264,000,000

-

2. Deduction item

0

-

3. Net revenue

56,264,000,000

-

4. Costs of goods sold

54,035,000,000

-

5. Gross profit

2,229,000,000

-

6. Financial income

17,000,000

-

7. Financial expenses

429,000,000

-

- In which: Loan interest expenses

0

-

8. Selling expenses

0

-

9. Administrative overheads

1,692,000,000

-

10. Net operating profit

125,000,000

-

11. Other income

0

-

12. Other expenses

0

-

13. Other profit /(loss)

0

-

14. Total accounting profit before tax

125,000,000

-

15. Current corporate income tax

31,000,000

-

16. Deferred corporate income tax

0

-

17. Interest from subsidiaries/related companies

0

-

18. Profit after tax

94,000,000

-

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2012

FY2011

Average Industry

Current liquidity ratio

0.98

0.96

1.36

Quick liquidity ratio

0.76

0.87

0.70

Inventory circle

9.75

-

12.84

Average receive period

169.02

-

78.77

Utilizing asset performance

1.35

-

1.05

Liability by total assets

98.78

98.15

63.01

Liability by owner's equity

8,077.17

5,306.27

257.66

Ebit / Total assets (ROA)

0.30

-

9.45

Ebit / Owner's equity (ROE)

24.61

-

31.44

Ebit / Total revenue (NPM)

0.22

-

10.94

Gross profit / Total revenue (GPM)

3.96

-

16.15

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Low/Medium

Payment status

 

Below Average

Financial Situation

 

Below Average

Development trend

 

Developing

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

TT, LC

Sale Methods

 

To contracts, retail and wholesale

Public opinion

 

Normal

 

 

INTERPRETATION ON THE SCORES

 

Operating since 2003 as a small wood processing workshop, VIETLAND IMPORT - EXPORT PRODUCTION JOINT STOCK COMPANY was officially established in 2006 in Ha Noi City. Currently, it is operating under business registration No. 0101953129 (same as the tax code) granted by Ha Noi Department of Planning and Investment with chartered capital of VND 1.9 billion.

The subject has head office registered at No. 2/C2, Group 1A, Trung Liet Ward, Dong Da District, Ha Noi City, Vietnam. This is also the private house address of Ms. Quach Thi Thuy - the subject's director. However, almost business transactions are carried out at 6th floor, Sun Building, No. 220 Hao Nam - Ba Dinh - Ha Noi. VIETLAND PRODUCTION., JSC also has a workshop in Huu Lung District, Bac Giang Province. Its main activity is about manufacturing and trading in veneer and plywood. The subject's products include all kinds of commercial plywood, film face plywood, face veneer, core veneer, sawn timber, wood logs etc. Contacted with Ms. Thuy, she said the subject now imports material (wood) from Europe market (such as Germany and France) and some African countries. Its products are not only consumed in domestic market but also exported to some foreign countries like China, Korea and Malaysia etc.

Financially, the subject gained VND 56,264 million in total sale and VND 125 million in profit before tax. NMP and other profitability ratios were very humble. The subject should manage its cost and operating expenses strictly to improve furthermore NMP and its profitability. About the capital structure, almost assets of the company (more than 98%) were invested by liabilities, particularly the current liabilities. The rate between liability and the owner's equity remained at very high level. That shows the subject's self-financing capability was weak and it affected on the payment capacity, which was lower than the average industry.

In general, the subject is a small business scale company in the industry. The operation situation seems developing. The management capability is normal. Now, the subject can meet only small financial commitments. Caution is needed for medium and large transactions with it.

 

 

 

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.60.82

UK Pound

1

Rs.92.97

Euro

1

Rs.80.73

 

 

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.