MIRA INFORM REPORT

 

 

Report Date :

17.01.2013

 

IDENTIFICATION DETAILS

 

Name :

VIETNAM CHUNG YANG FOODS CO., LTD

 

 

Registered Office :

Lot 1/2L3.5A Do Son IP, Ngoc Xuyen Ward, Duong Kinh District, Hai Phong City

 

 

Country :

Vietnam

 

 

Date of Incorporation :

03.08.2011

 

 

Legal Form :

Foreign invested company

 

 

Line of Business :

The subject is specialized in manufacturing and processing sesame flour and oil.

 

 

No. of Employees :

50

 

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

(31.03.2012)

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

 

English Name

 

VIETNAM CHUNG YANG FOODS CO., LTD

Vietnamese Name

 

CONG TY TNHH CHUNG YANG FOODS VIET NAM

Type of Business

 

Foreign invested company

Year Established

 

2011

Investment Certificate No

 

022043000094

Date Of Issuance

 

03 Aug 2011

Place of Issuance

 

Hai Phong Economic Zone Authority

Registered Investment Capital

 

USD 1,000,000

Chartered capital

 

USD 1,000,000

Investment Duration

 

40 years

Status

 

Unlisted

Tax code

 

0201193908

Total Employees

 

50

Size

 

Small

 

 

ADDRESSES

 

Head Office

Address

 

Lot 1/2L3.5A Do Son IP, Ngoc Xuyen Ward, Duong Kinh District, Hai Phong City, Vietnam

Telephone

 

(84-31) 3663119

Occupied Area

 

5,478.25 m2

Land-use Right

 

Leased

Note: The correct address of the subject is as above.

 

Transaction office in Hai Phong

Address

 

No. 349 Van Cao Str, Hai An District, Hai Phong City, Vietnam

Telephone

 

(84-31) 3729486

 

 

 

DIRECTORS

 

1. NAME

 

Mr. KIM GI WOOK

Position

 

General Director

Date of Birth

 

27 May 1962

ID Number/Passport

 

M20608825

ID Issue Date

 

13 Jan 2011

ID Issue Place

 

Korea South

Resident

 

111-1306 Jugong Apt. 2220, Yeonsan-dong, Yeonje-gu, Busan-si, Korea, South

Nationality

 

Korean

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject is specialized in manufacturing and processing sesame flour and oil.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

Types of products

 

Materials

Market

 

Korea

 

EXPORT:

Types of products

 

Sesame flour and oil

Market

 

Korea

 

 

 

BANKERS

 

1. VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE DO SON BRANCH

Address

 

No.193 Ly Thanh Tong str, Ngoc Xuyen, Do Son District, Hai Phong City, Vietnam

Telephone

 

(84-31) 3861276

 

 

 

SHAREHOLDERS

 

NAME

 

CHUNG YANG FOODS CO., LTD

Business Registration

 

301-81-31098

Date of Registration

 

11 Sep 1997

Address

 

160-3, Donghang-ri, Yangseong-myeon, Anseong-si, Gyeonggi-do 456-931, Korea, South

Tel

 

82-31-671-1444/6

Fax

 

82-31-671-1448

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

 

N/A

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

T/T, L/C

Sale Methods

 

Wholesaler

 

 

 

INTERPRETATION ON THE SCORES

 

VIETNAM CHUNG YANG FOODS CO., LTD was newly established in 2011 as a wholly owned foreign company and put into official manufacture in 2012. It is granted to operate under the Investment Certificate No. 022043000094 issued by Hai Phong Economic Zone Authority. The total investment capital and chartered capital are both USD 1,000,000.

 

The head office and factory of the subject are located at Lot 1/2L3.5A Do Son IP, Ngoc Xuyen Ward, Duong Kinh District, Hai Phong City, Vietnam. Moreover, it also has a transaction office in Hai Phong City. The subject focuses on manufacturing and processing sesame flour and oil. According to the investment license of the subject, the production output is registered with 1,000 tons/per year for sesame flour and 200,000 liter/per year for sesame oil. The finished products are expected to export 100% to foreign market.

 

The financial statement of the subject for FY2012 is in the process of preparation. As a new and small sized company, the financial capacity of the subject could be limited now.

 

In short, the subject has just been put into operation and production. Its position seems to be modest in the market. Caution is needed for all medium and big financial commitments with the subject.

 

 

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.54.54

UK Pound

1

Rs.87.69

Euro

1

Rs.72.85

 

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%)

 

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