MIRA INFORM REPORT

 

 

Report Date :

08.07.2013

 

IDENTIFICATION DETAILS

 

Name :

ZAGRO VIETNAM COMPANY LIMITED

 

 

Registered Office :

No.9 Workshop No.5 Str - Long Thanh Industrial Zone - Tam An Village , Long Thanh District, Dong Nai Province

 

 

Country :

Vietnam

 

 

Year of Incorporation :

2010

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject specializes in processing food for cattle and poultry.

 

 

No. of Employees :

15

 

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 :

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

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

 

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

 

ZAGRO VIETNAM COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH ZAGRO VIETNAM

Short name

 

ZAGRO VIETNAM CO.,LTD

Type of Business

 

Limited liability company

Year Established

 

2010

Investment Certificate No

 

472043000829

Date Of Issuance

 

30 Jul 2010

Place of Issuance

 

Dong Nai Industrial Zones Management Board

Registered Investment Capital

 

USD 1,000,000

Chartered capital

 

USD 500,000

Investment Duration

 

50 years

Status

 

Unlisted

Tax code

 

3602364916

Total Employees

 

15

Size

 

Small

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Board Of Director: Mr. CHIN VUI NAM

Changed to: SRI HARMEN AMIEL PAHM HARTANTY

N/A

 

 

ADDRESSES

 

Head Office

Address

 

No.9 Workshop No.5 Str - Long Thanh Industrial Zone - Tam An Village , Long Thanh District, Dong Nai Province, Vietnam

Telephone

 

+84 61 3514 677

Fax

 

+84 61 3514 675

Email

 

trang.luongtt@zagro.com

Website

 

www.zagro.com

 

 

DIRECTORS

 

1. NAME

 

Mr. SRI HARMEN AMIEL PAHM HARTANTY

Position

 

Director

ID Number/Passport

 

XX5230465

Nationality

 

Malaysian

 

 

BUSINESS NATURE AND ACTIVITIES

 

Subject specializes in processing food for cattle and poultry.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

N/A

 

EXPORT:

·         Types of products

 

N/A

 

 

BANKERS

 

N/A

 

SHAREHOLDERS
 

1. NAME

 

ZAGRO ASIA Pte Ltd.

Address

 

Zagro Global Hub, 5 Woodlands Terrace , Singapore

Percentage

 

100%

 

 

FINANCIAL DATA

NA

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

N/A

Payment status

 

N/A

Financial Situation

 

Average

Development trend

 

N/A

Litigation data

 

No

Bankruptcy

 

No

Payment Methods

 

Through its banks

Sale Methods

 

To contracts

Public opinion

 

Average

 

 

 

INTERPRETATION ON THE SCORES

 

ZAGRO VIETNAM COMPANY LIMITED is a foreign invested company that was established in Jul 2010 following the Investment Certificate No. 472043000829. ZAGRO VIETNAM is one of members of ZAGRO Group that is located at Singapore. ZAGRO Group was listed in Singapore Stock Market and now it has got many members and a large network in Asia Pacific.

Total employees of the Subject are 15 people. The head office is located at No.9 Workshop No.5 Str - Long Thanh Industrial Zone - Tam An Village - Long Thanh District - Dong Nai Province. This is also the factory of the subject company. Subject registered and operates in manufacturing and trading food for poultry and cattle. We contacted to the subject company but we faced difficulties from it to collect information. In general, subject is a small and new company in the same industry so it contains many risks in business operation. Need to caution with all financial commitments.

 

 

------------ 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.54.98

UK Pound

1

Rs.88.11

Euro

1

Rs.71.67

 

 

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%)

 

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