MIRA INFORM REPORT

Report Date :

30.08.2013

IDENTIFICATION DETAILS

Name :	VISON YARN SPINNING COMPANY LIMITED
Registered Office :	Lot XN 30 Dai An Industrial Zone, Tu Minh Ward, Hai Duong City, Hai Duong Province
Country :	Vietnam
Financials (as on) :	31.12.2009
Year of Incorporation :	2005
Com. Reg. No.:	0101576537-001
Legal Form :	One member liability limited company
Line of Business :	The subject is specialized in spinning.
No. of Employees :	300

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit:	350,000 USD
Status :	Moderate
Payment Behaviour :	Unknown
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 31^st, 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 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	VISON YARN SPINNING COMPANY LIMITED
Registered Vietnamese Name	CONG TY TNHH SOI VI SON
Registered short name	VISON YARN SPINNING CO., LTD
Type of Business	One member liability limited company
Year Established	2005
Business Registration No.	0101576537-001
Date of Registration	27 Feb 2009
Place of Registration	Hai Duong Department of Planning and Investment
Chartered capital	VND 70,000,000,000
Status	Unlisted
Tax code	0101576537-001
Total Employees	300

Note: The given name VNT INVESTMENT AND TRADING JOINT STOCK COMPANY - VISON YARN SPINING is incorrect.

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Chartered capital: VND 13,500,000,000 Changed to: VND 70,000,000,000	26 Mar 2012
2	Subject has got former Business Registration No: 0404000008 Changed to: 0101576537-001	27 Feb 2009

ADDRESSES
Head Office
Address	Lot XN 30 Dai An Industrial Zone, Tu Minh Ward, Hai Duong City, Hai Duong Province, Vietnam
Telephone	(84-320) 3555838
Fax	(84-320) 3555824
Website	http://www.vison.com.vn
Transaction office in Ha Noi
Address	Room 806, Tungshing square, No 2, Ngo Quyen Street , Hoan Kiem District, Ha Noi City, Vietnam
Telephone	(84 - 4) 39352828

SUBSIDIARIES AND RELATED COMPANIES
PARENT COMPANY - VI SON JOINT STOCK COMPANY
Business Registration	0101576537
Tax code	0101576537
Address	No 84, To Ngoc Van Street, Quang An Ward , Tay Ho District, Ha Noi City, Vietnam
Tel	(84 - 4) 37182834

DIRECTORS
1. NAME	Mr. TRINH THANH VINH
Position	Director
Date of Birth	23 Jul 1973
ID Number/Passport	011708547
ID Issue Date	30 Jan 1991
ID Issue Place	Ha Noi Police
Resident	No 84B, To Ngoc Van Street, Quang An Ward , Tay Ho District, Ha Noi City, Vietnam
Nationality	Vietnamese
2. NAME	Ms. DINH VY LOAN
Position	Vice Director
Resident	Lot XN 30 Dai An Industrial Zone, Lai Cach Commune, Cam Giang District, Hai Duong Province, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in spinning.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Market	Germany, Japan, China, Singapore, USA and South America countries
EXPORT:
· Market	West African countries, Singapore, Western Europe countries, etc

BANKERS
BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM BAC HA NOI BRANCH
Address	No.137A Nguyen Van Cu Street, Long Bien District, Ha Noi City, Vietnam
Telephone	(84-4) 22207996

SHAREHOLDERS
NAME	VISON JOINT STOCK COMPANY
Business Registration	0103006089
Address	No. 84 To Ngoc Van Street, Quang An Ward, Tay Ho District, Ha Noi City, Vietnam
Tel	(84-4) 37182834
Value of shares	VND 70,000,000,000
Percentage	100%

FINANCIAL HIGHLIGHT
Despite trying best, the latest financial data is not available in our sources.
BALANCE SHEET
Unit: Million VND
Balance sheet date	31/12/2009	31/12/2008
Number of weeks	52	52
ASSETS
A. Current Asset	57,266	60,763
Receivables	18,155	13,000
Inventory	36,806	43,000
Cash and other current assets	2,305	4,763
B. Long term Asset	118,296	122,964
1. Long term account receivable	-	-
2. Fixed assets	107,277	112,377
Tangible fixed assets	95,439	102,726
+ Original cost	115,946	115,851
+ Accumulated depreciation value	-20,507	-13,125
Financial leasehold assets	-	-
Intangible fixed assets	-	-
Construction in progress and other long term asset	11,838	9,651
TOTAL ASSETS	175,562	183,727
LIABILITIES
Payable loans	155,777	143,739
Owner’s Equity	19,785	39,988
TOTAL LIABILITY AND EQUITY	175,562	183,727
PROFIT & LOSS STATEMENT
1. Total Sales	75,979	50,932
2. Deduction item	0	0
3. Net revenue	75,979	50,932
4. Costs of goods sold	80,021	-
5. Gross profit	-4,042	45
6. Financial income	847	0
7. Financial expenses	15,297	0
8. Selling expenses and Administrative overheads	3,192	0
9. Net operating profit	-21,684	45
10. Other income	17	215
11. Other expenses	0	0
12. Other profit /(loss)	17	215
13. Total accounting profit before tax	-21,667	260
14. Current corporate income tax	0	0
15. Deferred corporate income tax	0	0
16. Interest from subsidiaries/related companies	0	0
17. Profit after tax	-21,667	0

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Good
Liquidity	N/A
Payment status	N/A
Financial Situation	Average
Development trend	Positive
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	TT, L/C
Sale Methods	OEM Supplier
Public opinion	Good

CREDIT INQUIRY: 350,000 USD

Acceptable

INTERPRETATION ON THE SCORES

The subject is a manufacturing company that was established in 2005 in Hai Duong Province according to the former Business Registration No: 0404000008 registered by Hai Duong Department of Planning and Investment. Currently, the subject is operating under the business registration No. 0101576537-001 with the chartered capital of VND 70 billion. It is invested by VI SON JOINT STOCK COMPANY (in Ha Noi City).

The company’s head office and factory are located at Lot XN 30 Dai An Industrial Zone, Tu Minh Ward, Hai Duong City, Hai Duong Province. In addition, it has transaction office in Ha Noi City, at Room 806, Tungshing square, No 2, Ngo Quyen Street, Hoan Kiem District, Ha Noi City. The company specializes in spinning. Its factory was started construction in May 2005 and went in to production in Dec 2005. It manufactures materials for textile industry. The subject imports machines and cotton Germany, Japan, China, Singapore, USA and South America countries. Its products are not only supplied for domestic market but also exported to West African countries, Singapore, Western Europe countries, etc.

According to the financial highlight data, the company’s total sales in 2009 were approximately VND 76 billion; increased VND 49% compared to 2008. However, the subject was lost VND 21.7 billion in 2009 due to the high costs of goods sold and financial expenses. We tried to update its latest financial data but it is not available in our sources.

The company is a medium company in this field. With the event of increasing chartered capital from VND 13.5 billion to VND 70 billion in Mar 2012 and the supports from its parent company, the subject is expected to develop well in the future. In our opinion, the subject can meet normal 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.67.70
UK Pound	1	Rs.105.14
Euro	1	Rs.90.03

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%)

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