MIRA INFORM REPORT

Report Date :

27.02.2013

IDENTIFICATION DETAILS

Name :	VIETNAM PESTICIDE JOINT STOCK COMPANY
Formerly Known as:	VIETNAM PESTICIDE COMPANY
Registered Office :	No. 102, Nguyen Dinh Chieu Street - Dakao Ward, District 1, Ho Chi Minh City
Country :	Vietnam
Financials (as on) :	31.12.2011
Year of Establishments:	1976
Com. Reg. No.:	0300408946
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing, processing, bottling, packaging pesticides, disinfectant and other chemicals
No. of Employees :	630

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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 30^th, 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	VIETNAM PESTICIDE JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN THUOC SAT TRUNG VIET NAM
Trade name	VIETNAM PESTICIDE JSC
Short name	VIPESCO
Type of Business	Joint stock company
Year Established	1976
Establishment Decision	3494/QD-TCCB
Date of Issuance	28 Dec 2004
Place of Issuance	Ministry of Industry
Business Registration No.	0300408946
Date of latest adjustment	08 Sep 2011
Place of Registration	Business Registration Office - Planning and Investment Department of Hochiminh City
Chartered capital	VND 174,719,940,000
Tax code	0300408946
Total Employees	630

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Registered English Name: VIETNAM PESTICIDE COMPANY \ Changed to: VIETNAM PESTICIDE JOINT STOCK COMPANY	11 May 2006
2	Subject has got former Registered Vietnamese Name: CONG TY THUOC SAT TRUNG VIET NAM Changed to: CONG TY CO PHAN THUOC SAT TRUNG VIET NAM	11 May 2006
3	Subject has got former Type of Business: State Owned Enterprise Changed to: Joint-Stock Company	11 May 2006
4	Subject has got former Business Registration No: 102401 which was issued on 26 Feb 1993 Changed to: 4103004735	11 May 2006
5	Subject has got former Business Registration No: 4103004735 Changed to: 0300408946	-

company ADDRESSES

Head Office
Address	No. 102, Nguyen Dinh Chieu Street - Dakao Ward, District 1, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3823 0751, 3824 3037, 3822 3364
Fax	(84-8) 3823 0752
Email	vipesco@hcm.vnn.vn
Website	www.vipesco.com.vn
Factory Address
Address	240 Kha Van Can Street - Hiep Binh Chanh Ward, Thu Duc District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3726 0119 – 3726 6951
Fax	(84-8) 3726 6438
Email	xn-binhtrieu@vipesco.com.vn
Branch in Ha Noi
Address	No. 2, Trieu Quoc Dat Street, Hoan Kiem District, Ha Noi City, Vietnam
Telephone	(84-4) 3824 9395/ 3826 9417
Fax	(84-4) 3826 9415
Branch in Thua Thien-Hue
Address	22 Nguyen Thi Minh Khai street, Hue City, Thua Thien-Hue Province, Vietnam
Branch in Binh Duong
Address	138, DT743, Binh Thang commune, Di An Town, Binh Duong Province, Vietnam
Telephone	(84-65) 375 1952, 375 1522
Fax	(84-65) 375 1757
Agrochemical Research & Development Center
Address	127 Le Loi Street - Ward 4, Go Vap District, Ho Chi Minh City, Vietnam
Telephone	(84 - 8) 3895 7248- 3894 0324
Fax	(84 -8) 38955125
Email	ttncnd@vipesco.com.vn

SUBSIDIARIES AND RELATED COMPANIES

1. KOSVIDA AGROCHEMICAL COMPANY LIMITED
Business Registration	461022000447
Date of Registration	30 Jun 2008
Place of Registration	Business Resgistration Office of Binh Duong province
Registered Capital	USD 3,530,000
Tax code	3700229986
Address	Km 24, DT 743, Binh Thang Hamlet, Di An Town, Binh Duong Province, Vietnam
Tel	(84-650) 3751 648 - 3751 650
Fax	(84-650) 3751 644
2. TERMITE CONTROL AND FUMIGATION COMPANY
Business Registration	063376
Date of Registration	27 Mar 1999
Place of Registration	Planning and Investment Department of Ho Chi Minh City
Registered Capital	VND 4,500,000,000
Tax code	0301669450
Address	2/29 Ham Nghi, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Tel	(84-8) 3821 0245 – 3821 4171 – 3822 3926
Fax	(84-8) 3821 2011
Website	www.tcfc.com.vn
3. MOSFLY VIETNAM COMPANY LIMITED
Place of Registration	Planning and Investment Department of Hochiminh City
Registered Capital	USD 1,500,000
Tax code	0300801498
Address	242 Kha Van Can Street, Hiep Binh Chanh Ward, Thu Duc District, Ho Chi Minh City, Vietnam
Tel	(84-8) 3726 8696 - 3726 9938
Fax	(84-8) 3726 9408
Website	www.mosflyvn.com
4. VIGUATO AGROBIOCHEMICAL MANUFACTURING COMPANY LIMITED
Tax code	0300811376
Address	Lane I Provincial Road 15, District 7, Ho Chi Minh City, Vietnam

DIRECTORS

1. NAME	Mr. DOAN TAN VINH
Position	Chairman
Date of Birth	17 Nov 1954
ID Number/Passport	020200004
ID Issue Date	08 Oct 1994
Resident	No. 564D Le Quang Dinh Street, Ward 1, Go Vap District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	+84 903 904783
2. NAME	Mr. NGO VAN DAT
Position	Member of Board of Directors (BOD)
Date of Birth	1955
ID Number/Passport	020036973
ID Issue Date	19 Jul 2001
ID Issue Place	Police station of Ho Chi Minh city
Resident	No.377/55 Cach Mang Thang Tam Str, Ward 12, District 10, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
3. NAME	Mr. NGUYEN DINH NHUAN
Position	Member of Board of Directors (BOD)
Date of Birth	1950
ID Number/Passport	021444799
ID Issue Date	07 Nov 1997
ID Issue Place	Police Station of Ho Chi Minh city
Resident	15 Dong Da Street, ward 2, Tan Binh District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
4. NAME	Mr. NGUYEN DUC THUAN
Position	Member of Board of Directors (BOD)
Date of Birth	15 Nov 1957
ID Number/Passport	022644163
ID Issue Date	07 May 2001
ID Issue Place	Police Station of Hochiminh City
Current resident	No. 24 Tran Quoc Thao Str, Ward 6, District 3, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Qualification	Management
Years of experience	18 Years
5. NAME	Mr. VU DINH THAI
Position	Member of Board of Directors (BOD)
Nationality	Vietnamese
6. NAME	Mr. DOAN TAN VINH
Position	General Director
Date of Birth	17 Nov 1954
ID Number/Passport	020200004
ID Issue Date	08 Oct 1994
Resident	No. 564D Le Quang Dinh Street, Ward 1, Go Vap District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	+84 903 904783
7. NAME	Mr. NGO VAN DAT
Position	Deputy General Director
Date of Birth	1955
ID Number/Passport	020036973
ID Issue Date	19 Jul 2001
ID Issue Place	Police station of Ho Chi Minh city
Resident	No.377/55 Cach Mang Thang Tam Str, Ward 12, District 10, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
8. NAME	Mr. THAI NGUYEN LUAT
Position	Chief Accountant
Date of Birth	1972
ID Number/Passport	022633431
ID Issue Date	08 Jul 2004
ID Issue Place	Police station of Ho Chi Minh city
Resident	01 Thang Long street, ward 4, Tan Binh District, Ho Chi Minh City, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject is specializing in:

Manufacturing , processing, bottling, packaging pesticides, disinfectant and other chemicals
Real estate activities with own or leased property
Manufacture of fertilizer and nitrogen compounds
Manufacture of plastics and synthetic rubber in primary forms
Other building and industrial cleaning activities
Manufacture of basic chemicals
Manufacture of other chemical products n.e.c
Wholesale of waste and scrap and other products n.e.c
Wholesale of other machinery and equipment n.e.c
Printing
Manufacture of soap and detergents, cleaning and polishing preparations
Wholesale of other household products
Other building and industrial cleaning activities

IMPORT & EXPORT ACTIVITIES

IMPORT:
· Types of products	Materials
· Market	EU, Singapore, Korea, Taiwan, Japan, China and India
EXPORT:
· Market	Myamar, Singapore, Laos and Cambodia

BANKERS

1. VIETNAM EXPORT IMPORT COMMERCIAL JOINT STOCK BANK
Address	8th Floor, VinCom Center, No. 72 Le Thanh Ton street , 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3821 0055
Fax	(84-8) 3829 6063
2. HSBC VIETNAM LTD
Address	6 Floor, No. 235 Dong Khoi Str., Ben Nghe ward, 1 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 38292288

SHAREHOLDERS

Registration shareholder information:
1. NAME	Mr. NGUYEN DUC THUAN
Position	Member of Board of Directors (BOD)
Date of Birth	15 Nov 1957
ID Number/Passport	022644163
Issued on	07 May 2001
Issued Place	Police Station of Hochiminh City
Current Resident	No. 24 Tran Quoc Thao Str, Ward 6, District 3, Ho Chi Minh City, Vietnam
Nationality	Vietnamese
Number of Shares	873,600
Value of shares	VND 8,736,000,000
Percentage	5%
2. NAME	392 OTHER SHAREHOLDERS
Number of shares	7,687,674
Value of shares	VND 76,876,740,000
Percentage	44%
3. NAME	STATE OWNED SHARES, Representative by Mr. Doan Tan Vinh, Mr. Vu Dinh Thai and Mr. Ngo Van Dat
Number of shares	8,910,720
Value of shares	VND 89,107,200,000
Percentage	51%

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
Audit status	Audited	Audited	Audited
ASSETS
A – CURRENT ASSETS	384,532,087,047	340,764,652,169	321,630,522,490
I. Cash and cash equivalents	31,025,132,554	18,693,499,742	23,939,387,741
1. Cash	31,025,132,554	18,693,499,742	22,939,387,741
2. Cash equivalents	0	0	1,000,000,000
II. Short-term investments	0	3,500,000,000	0
1. Short-term investments	0	3,500,000,000	0
2. Provisions for devaluation of short-term investments	0	0	0
III. Accounts receivable	176,948,929,182	170,595,415,139	140,198,482,922
1. Receivable from customers	168,019,191,896	160,874,151,317	130,413,846,114
2. Prepayments to suppliers	8,208,649,233	2,026,829,099	967,854,276
3. Inter-company receivable	0	0	9,403,201,423
4. Receivable according to the progress of construction	0	0	-586,418,891
5. Other receivable	8,542,746,044	8,389,375,515	0
6. Provisions for bad debts	-7,821,657,991	-694,940,792	0
IV. Inventories	168,130,109,802	143,607,593,242	151,631,286,040
1. Inventories	168,678,839,129	144,161,649,574	152,208,974,756
2. Provisions for devaluation of inventories	-548,729,327	-554,056,332	-577,688,716
V. Other Current Assets	8,427,915,509	4,368,144,046	5,861,365,787
1. Short-term prepaid expenses	12,538,431	129,577,335	28,228,500
2. VAT to be deducted	3,972,380,438	3,065,616,420	2,381,373,554
3. Taxes and other accounts receivable from the State	925,918,498	19,663,580	19,663,580
4. Other current assets	3,517,078,142	1,153,286,711	3,432,100,153
B. LONG-TERM ASSETS	71,859,456,460	73,401,730,330	72,926,178,399
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	25,150,412,996	26,289,970,402	26,263,978,300
1. Tangible assets	23,587,963,364	24,157,550,324	23,717,136,271
- Historical costs	100,035,177,265	95,603,693,789	91,589,571,231
- Accumulated depreciation	-76,447,213,901	-71,446,143,465	-67,872,434,960
2. Financial leasehold assets	0	0	0
- Historical costs	0	0	0
- Accumulated depreciation	0	0	0
3. Intangible assets	444,629,172	463,269,894	485,732,097
- Initial costs	1,898,079,060	1,898,079,060	1,898,079,060
- Accumulated amortization	-1,453,449,888	-1,434,809,166	-1,412,346,963
4. Construction-in-progress	1,117,820,460	1,669,150,184	2,061,109,932
III. Investment property	0	0	0
Historical costs	0	0	0
Accumulated depreciation	0	0	0
IV. Long-term investments	44,060,900,414	44,060,900,414	44,060,900,414
1. Investments in affiliates	21,118,953,482	21,118,953,482	21,118,953,482
2. Investments in business concerns and joint ventures	21,522,020,841	21,522,020,841	21,522,020,841
3. Other long-term investments	1,419,926,091	1,419,926,091	1,419,926,091
4. Provisions for devaluation of long-term investments	0	0	0
V. Other long-term assets	2,648,143,050	3,050,859,514	2,601,299,685
1. Long-term prepaid expenses	614,623,478	995,614,034	546,054,205
2. Deferred income tax assets		0	0
3. Other long-term assets	2,033,519,572	2,055,245,480	2,055,245,480
VI. Goodwill
1. Goodwill
TOTAL ASSETS	456,391,543,507	414,166,382,499	394,556,700,889
LIABILITIES
A- LIABILITIES	196,688,751,770	164,888,758,415	152,004,704,640
I. Current liabilities	153,300,385,301	121,533,336,446	108,661,354,823
1. Short-term debts and loans	21,108,277,189	22,933,277,140	16,831,707,970
2. Payable to suppliers	86,407,356,533	65,659,204,512	67,571,989,681
3. Advances from customers	116,053,836	1,886,114,359	238,446,172
4. Taxes and other obligations to the State Budget	688,492,568	1,065,878,650	4,498,663,870
5. Payable to employees	13,689,830,317	7,196,306,034	5,585,586,480
6. Accrued expenses	24,427,016,247	12,983,678,469	11,633,490,569
7. Inter-company payable	0	0	0
8. Payable according to the progress of construction contracts	0	0	2,301,470,081
9. Other payable	6,863,358,611	9,808,877,282	0
10. Provisions for short-term accounts payable	0		0
11. Bonus and welfare funds
II. Long-Term Liabilities	43,388,366,469	43,355,421,969	43,343,349,817
1. Long-term accounts payable to suppliers	0	0	0
2. Long-term inter-company payable	0	0	0
3. Other long-term payable	42,873,425,000	42,873,425,000	42,873,425,000
4. Long-term debts and loans	366,547,500	333,603,000	352,091,500
5. Deferred income tax payable		0	0
6. Provisions for unemployment allowances	148,393,969	148,393,969	117,833,317
7. Provisions for long-term accounts payable	0	0	0
8. Unearned Revenue
9. Science and technology development fund
B- OWNER’S EQUITY	259,702,791,737	249,277,624,084	242,551,996,249
I. OWNER’S EQUITY	258,287,744,606	247,912,658,476	241,546,701,072
1. Capital	174,719,940,000	174,719,940,000	174,719,940,000
2. Share premiums	0	0	0
3. Other sources of capital	0	0	0
4. Treasury stocks	0	0	0
5. Differences on asset revaluation	0	0	0
6. Foreign exchange differences	246,671,028	-27,814,224	-36,307,046
7. Business promotion fund	35,591,043,159	30,480,923,603	21,218,206,943
8. Financial reserved fund	6,193,769,563	4,684,298,454	3,000,288,776
9. Other funds	0	0	0
10. Retained earnings	41,536,320,856	38,055,310,643	42,644,572,399
11. Construction investment fund	0	0	0
12. Business arrangement supporting fund
II. Other sources and funds	1,415,047,131	1,364,965,608	1,005,295,177
1. Bonus and welfare funds (Elder form)	448,205,018	408,422,495	53,453,064
2. Sources of expenditure	144,862,337	134,563,337	129,862,337
3. Fund to form fixed assets	821,979,776	821,979,776	821,979,776
MINORITY’S INTEREST	0	0	0
TOTAL LIABILITIES AND OWNER’S EQUITY	456,391,543,507	414,166,382,499	394,556,700,889

PROFIT & LOSS STATEMENT
Description	FY2011	FY2010	FY2009
1. Total Sales	598,896,333,837	450,724,506,523	398,488,685,458
2. Deduction item	946,995,383	4,137,528,973	1,995,094,620
3. Net revenue	597,949,338,454	446,586,977,550	396,493,590,838
4. Costs of goods sold	446,480,059,791	345,123,297,867	297,624,135,954
5. Gross profit	151,469,278,663	101,463,679,683	98,869,454,884
6. Financial income	12,339,956,335	14,321,836,366	13,424,088,034
7. Financial expenses	8,486,067,617	6,343,055,540	5,079,729,634
- In which: Loan interest expenses	2,377,165,719	2,184,251,798	1,345,459,746
8. Selling expenses	73,764,922,799	45,587,737,073	37,367,789,106
9. Administrative overheads	37,913,456,223	24,002,167,799	21,893,963,436
10. Net operating profit	43,644,788,359	39,852,555,637	47,952,060,742
11. Other income	724,956,954	2,504,146,031	834,394,458
12. Other expenses	400,000	402,248,438	30,160,582
13. Other profit /(loss)	724,556,954	2,101,897,593	804,233,876
14. Total accounting profit before tax	44,369,345,313	41,954,453,230	48,756,294,618
15. Current corporate income tax	5,150,599,660	6,119,126,195	7,081,737,628
16. Deferred corporate income tax	0	0	0
17. Interest from subsidiaries/related companies	0
18. Profit after tax	39,218,745,653	35,835,327,035	41,674,556,990

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS
Description	FY2011	FY2010	FY2009	Average Industry
Current liquidity ratio	2.51	2.80	2.96	1.65
Quick liquidity ratio	1.41	1.62	1.56	1.04
Inventory circle	2.86	2.40	2.20	4.14
Average receive period	108.01	139.43	129.06	105.37
Utilizing asset performance	1.31	1.08	1.00	1.20
Liability by total assets	43.10	39.81	38.53	53.11
Liability by owner's equity	75.74	66.15	62.67	159.74
Ebit / Total assets (ROA)	10.24	10.66	12.70	10.37
Ebit / Owner's equity (ROE)	18.00	17.71	20.66	23.03
Ebit / Total revenue (NPM)	7.81	9.79	12.57	10.15
Gross profit / Total revenue (GPM)	25.29	22.51	24.81	25.88
Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Fair
Liquidity	High
Payment status	Above Average
Financial Situation	Above Average
Development trend	Even
Litigation data	No
Bankruptcy	No
Payment Methods	L/C, TTR
Sale Methods	Retailer and Wholesaler

INTERPRETATION ON THE SCORES

VIPESCO was established in 1976. It was equitized under the decision No. 3494/QĐ-TCCB. On 11 May 2006, it was licensed as a joint stock company under the Business Registration No. 4103004735. Since 01 Jun 2006, the subject has been officially operated under the new business type (joint stock company). Recently, its business registration number has been merged into tax code and its chartered capital has been VND 174,719,940,000. Main activities of the subject are manufacturing and trading pesticide and providing termite control and fumigation services.

Due to the undeveloped industry of manufacturing chemical for pesticide, domestic pesticide manufacturers have to import most of input materials. In reality, domestic pesticide manufacturers do not really produce; they only import directly the input materials then packed or bottled then sell out to the market. There are 150 companies and 70 process workshops in the Vietnam pesticide industry, the subject is regarded as a strong player. The subject has established factories and distribution networks all over the country. The subject imports materials from EU, USA, Japan, India… for production. In order to stabilize its input material source, the subject has co-operated with partners to manufacture validamycine (Viguato Company) and insecticides of Carbamate group (KOSVIDA- OCI Vietnam). The subject also signed an agreement with DPM to manufacture Glyphosate. Besides domestic market, its products are exported to Indonesia, Malaysia, Myanmar Laos and Cambodia.

VIPESCO’s financial indicators are rather good compared with other companies in the industry. In term of size, VIPESCO is in the mid-size segment among the industry. In term of capital structure, VIPESCO enjoys a safe structure since the company limits in using financial leverage. There is a stable amount of long-term debt, only a low short-term in order to fund the production activities. However, the company has difficulties in collecting due payment (the subject has granted credit for most of its customers) in this period because of client’s shortage cash.

Its business risks are fluctuation of material price has negative impacts on company’s operation because a large scale of the subject input materials are imported; the company prestige might be harm by materials imported from China because China-made fake product evil. Prospect of the subject company is that the pesticide market capacity remains to be large (according to expert estimates, Vietnam pesticide market capacity of about 120 million -1.5 billion dollars / year, China's pesticide chemicals in Vietnam market share of 30% -40%). The subject has prospect for expanding because demand for plant protection drugs in Vietnam market is at high level and keep increasing. Competition in this field is fiercer because there are many foreign agricultural chemical suppliers are granted certificates to do business and import directly to Vietnam.

In summary, the company has guarantees for average – large debt repayment. The rating outlook for the company is above average level.

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)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,887		24,362.9	95,227
Industry and Construction	5.53	7.70	95,217		10,718.9	3,641,376
Trade and Services	6.69	7.52	187,195		15,270.2	6,957,082
ECONOMIC INDICATORS
			2011	2010		2009
Population (Million person)			87.84	86.93		86.02
Gross Domestic Products (USD billion)			119	102.2		91
GDP Growth (%)			5.89	6.78		5.32
GDP Per Capita (USD/person/year)			1,300	1,160		1,080
Inflation (% Change in Composite CPI)			18.58	11.75		6.88
State Budget Deficit compared with GDP (%)			4.9	5.8		6.9
SERVICE TRADE PERFORMANCE
Billion USD			2011	2010		2009
Exports			96.3	72.2		57.1
Imports			105.8	84.8		69.9
Trade Balance			-9.5	-12.6		-12.8

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.06
UK Pound	1	Rs.82.15
Euro	1	Rs.70.61

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%)

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.