MIRA INFORM REPORT

Report Date :

10.01.2013

IDENTIFICATION DETAILS

Name :	HUNG CUONG IMPORT EXPORT COMPANY LIMITED
Registered Office :	No. 7 - Lane 16 - Nguyen Phuc Lai Street - O Cho Dua Ward , Dong Da District, Ha Noi City
Country :	Vietnam
Date of Incorporation :	05.09.2011
Com. Reg. No.:	0105483033
Legal Form :	One member liability limited company
Line of Business :	The subject specializes in importing and exporting medicinal plants
No. of Employees :	4

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

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 30^th, 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

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
English Name	HUNG CUONG IMPORT EXPORT COMPANY LIMITED
Vietnamese Name	CONG TY TNHH XUAT NHAP KHAU HUNG CUONG
Short name	HUNG CUONG EI CO., LTD
Type of Business	One member liability limited company
Year Established	2011
Business Registration No.	0105483033
Date of Registration	05 Sep 2011
Place of Registration	Hanoi Planning and Investment Department
Chartered capital	VND 1,500,000,000
Status	Unlisted
Tax code	0105483033
Total Employees	4
Size	Small

ADDRESSES
Head Office
Address	No. 7 - Lane 16 - Nguyen Phuc Lai Street - O Cho Dua Ward , Dong Da District, Ha Noi City, Vietnam
Telephone	(84-4) 3851 2197
Fax	(84-4) 3851 2197

DIRECTORS
1. NAME	Mr. TRAN DANG BONG
Position	Director
Date of Birth	20 Jun 1949
ID Number/Passport	011245796
ID Issue Date	15 Jun 2010
ID Issue Place	Hanoi Police Station
Resident	No. 7 Lane 16 nguyen Phuc Lai Street - O Cho Dua Ward, Dong Da District, Ha Noi City, Vietnam
Tel/Mobile phone	+84 4 3997 0876

BUSINESS NATURE AND ACTIVITIES

The subject specializes in importing and exporting medicinal plants

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Medicinal plants
· Market	India, Thailand
· Mode of payment	L/C
EXPORT:
· Types of products	Medicinal plants
· Market	China
· Ratio	100

BANKERS
1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
Address	No. 198 Tran Quang Khai Street, Hoan Kiem District, Ha Noi City, Vietnam
Telephone	(84-4) 3934 3137 / (84-4) 3814 8919
Fax	(84-4) 3826 9067 / (84-4) 3825 1322

SHAREHOLDERS
1. NAME	Mr. TRAN DANG BONG
Position	Director
Date of Birth	20 Jun 1949
ID Number/Passport	011245796
Issued on	15 Jun 2010
Issued Place	Hanoi Police Station
Resident	No. 7 Lane 16 nguyen Phuc Lai Street - O Cho Dua Ward , Dong Da District, Ha Noi City, Vietnam
Mobile phone	+84 4 3997 0876
Percentage	100%

FINANCIAL DATA

N/A

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Normal
Liquidity	N/A
Payment status	N/A
Financial Situation	Below Average
Development trend	Developing
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C
Sale Methods	Retailer

INTERPRETATION ON THE SCORES

HUNG CUONG IMPORT EXPORT COMPANY LIMITED was established as one member liability company under the business registration No. 0105483033 granted by Hanoi Planning and Investment Department on 5th September 2011. Currently, the subject is operating with small chartered capital as VND 1.5 billion.

The subject only specialises in importing and trading medicinal plans. It imports from India and Thailand then exports all to China. Its business happen base on order contracts from traditional medicine firm in China.

The premises and facilities of the subject are simple. It has only office at No. 7 - Lane 16 - Nguyen Phuc Lai Street - O Cho Dua Ward - Dong Da District - Hanoi City is private house of its director. The subject's management capability is also simple with total labors as 4 employees.

In general, the subject is newly established company in the industry, has small capital. With the current operation situation, the subject has capability to meet small payment commitments. However, caution is till need for all business transaction. 

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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.54.96
UK Pound	1	Rs.88.23
Euro	1	Rs.71.92

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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