MIRA INFORM REPORT

Report Date :

24.01.2013

IDENTIFICATION DETAILS

Name :	VIET NAM DEVELOPMENT JOINT STOCK COMPANY
Registered Office :	Room 401 - House B8 - Nghia Tan Ward, Cau Giay District, Ha Noi City,
Country :	Vietnam
Year of Establishment :	2008
Com. Reg. No.:	0103026676
Legal Form :	Joint stock company
Line of Business :	The subject specializes in entrusted import-export services and processing and export wood.
No. of Employees :	20

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 :	Small Company
Payment Behaviour :	Slow But Correct
Litigation :	Clear

NOTES :

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ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Viet Nam	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	VIET NAM DEVELOPMENT JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN PHAT TRIEN VIET NAM
Short name	VIET DEVELOP.,JSC
Type of Business	Joint stock company
Year Established	2008
Business Registration No.	0103026676
Date of Registration	08 Sep 2008
Place of Registration	Hanoi Planning and Investment Department
Chartered capital	VND 5,000,000,000
Status	Unlisted
Tax code	0102908129
Total Employees	20
Size	Small

ADDRESSES
Registration Address
Address	Room 401 - House B8 - Nghia Tan Ward, Cau Giay District, Ha Noi City, Vietnam
Workshop Address
Address	Luong Son Town , Luong Son District, Hoa Binh Province, Vietnam
Workshop Address
Address	Hai Duong Province, Vietnam
Transaction office in Ha Noi
Address	No. 9 - Alley 389/70 - Lane 28 Tran Thai Tong , Cau Giay District, Ha Noi City, Vietnam
Telephone	(84-4) 3786 8127
Fax	(84-4) 3786 8126
Email	vietdevelop@vnn.vn

DIRECTORS
1. NAME	Mr. VU DUC TUAN
Position	Director
Date of Birth	21 Dec 1971
ID Number/Passport	01240013
ID Issue Date	17 Jul 2003
ID Issue Place	Hanoi Police Station
Resident	Suite 401 - House B8 - Nghia Tan Ward, Cau Giay District, Ha Noi City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	+84 9 1330 5757
2. NAME	Mr. NGUYEN HONG TIEN
Position	Deputy Director
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject specializes in:
- Entrusted import-export services
- Processing and export wood.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	Wood
· Market	N/A
EXPORT:
· Types of products	Sawn Wood
· Market	Japan

BANKERS
1. MARITIME COMMERCIAL JOINT STOCK CAU GIAY BRANCH
Address	No. 253 Cau Giay Str, Cau Giay District, Ha Noi City, Vietnam
Telephone	(84-4) 3767 5229
Fax	(84-4) 3767 5231
2. VIETNAM INTERNATIONAL COMMERCIAL JOINT STOCK BANK DONG DA BRANCH
Address	No.88 Pham Ngoc Thach Street, Dong Da District, Ha Noi City, Vietnam
Telephone	(84-4) 3 572 9750
Fax	(84-4) 3 573 5756

SHAREHOLDERS
1. NAME	Mr. VU DUC TUAN
Position	Director
Date of Birth	21 Dec 1971
ID Number/Passport	01240013
Issued on	17 Jul 2003
Issued Place	Hanoi Police Station
Resident	Suite 401 - House B8 - Nghia Tan Ward , Cau Giay District, Ha Noi City, Vietnam
Mobile phone	+84 9 1330 5757
Nationality	Vietnamese
Value of shares	VND 4,000,000,000
Percentage	80%
2. NAME	Ms. NGUYEN THI THU HAI
ID Number/Passport	011874762
Resident	Group 46 - Dich Vong Ward, Cau Giay District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 500,000,000
Percentage	10%
3. NAME	Ms. NGUYEN THU HOAI
ID Number/Passport	011874763
Resident	Group 46 - Dich Vong Ward , Cau Giay District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 500,000,000
Percentage	10%

FINANCIAL DATA

Note: The financial statement of the subject is not available in our source.

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	To contracts
Public opinion	N/A

INTERPRETATION ON THE SCORES

VIET NAM DEVELOPMENT JOINT STOCK COMPANY was established was established under the business registration No. 0103026676 granted by Hanoi Planning and Investment Department on 8th September 2008. Currently, the subject is operating with normal chartered capital as VND 5 billion.

The subject specialises in providing entrusted import-export services mainly about helmet, garment, medical equipment, animal feed, steel. Its customers are foreign companies (in China, Japan, Korea) have factories or subsidiaries in Vietnam and foreign invested companies.  Besides, the subject processes wood then exports to Japan. It also imports wood for processing wood from foreign markets.

The premises and facilities of the subject are normal. It has only office at No. 9 - Alley 389/70 - Lane 28 Tran Thai Tong - Cau Giay District - Hanoi City. This place is a private house in a small narrow. Besides, it has 2 workshops for processing wood, one in Hoa Binh Province and another in Hai Duong Province. The subject's management capability is normal with total labors as 20 employees.

In general, the subject is small company with short time of operation. With the current operation situation, the subject has capability to meet small payment commitments. However, caution is till need for all business transaction.

------------ APPENDIX 1 ----------

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.53.77
UK Pound	1	Rs.85.13
Euro	1	Rs.71.56

INFORMATION DETAILS

Report Prepared by :

NLM

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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