MIRA INFORM REPORT

Report Date :

30.01.2013

IDENTIFICATION DETAILS

Name :	PHU THANH MY JOINT STOCK COMPANY
Registered Office :	No. 272 Nguyen Huu Tho Street - Khue Trung Ward , Cam Le District, Da Nang City
Country :	Vietnam
Date of Incorporation :	2007
Com. Reg. No.:	4000455251
Legal Form :	Joint stock company
Line of Business :	The subject specializes in managing and supervising build hydro power plant.
No. of Employees :	About 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 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	PHU THANH MY JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN PHU THANH MY
Type of Business	Joint stock company
Year Established	2007
Business Registration No.	4000455251
Date of Registration	28 Sep 2010
Place of Registration	Quang Nam Planning and Investment Department
Chartered capital	VND 232,000,000,000
Status	Unlisted
Tax code	4000455251
Total Employees	About 50
Size	Medium

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 3303070249 Changed to: 4000455251	2010

ADDRESSES

Branch in Da Nang and Transaction Address
Address	No. 272 Nguyen Huu Tho Street - Khue Trung Ward , Cam Le District, Da Nang City, Vietnam
Telephone	(84-511) 3633 679
Fax	(84-511) 3633 679
Registration address and Hydro-power plant Address
Address	Group 9 - Thanh My Hamlet 2 - Thanh My Town , Nam Giang District, Quang Nam Province, Vietnam

DIRECTORS

1. NAME	Mr. HO CONG NAM
Position	Chairman cum Director
Date of Birth	30 Mar 1951
ID Number/Passport	200096231
ID Issue Date	26 Jun 1994
ID Issue Place	Quang Nam - Da Nang Police Station
Resident	Group 42 Khue Trung, Cam Le District, Da Nang City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	+84 9 0359 6579
2. NAME	Mr. TRAN CONG TAN
Position	Deputy Director
ID Number/Passport	200745236
Resident	Group 28 Thach Thang, Hai Chau District, Da Nang City, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject specializes in managing and supervising build hydro power plant.

IMPORT & EXPORT ACTIVITIES

IMPORT:
Types of products	Hydro power machinery
Market	China, India
Mode of payment	L/C
EXPORT:
Currently, the subject does not export

BANKERS

1. AN BINH COMMERCIAL JOINT STOCK BANK DA NANG BRANCH
Address	No.179 Nguyen Chi Thanh Str, Hai Chau ward, Hai Chau District, Da Nang City, Vietnam
Telephone	(84-511) 2225 262
Fax	(84-511) 2225 265
2. THE VIETNAM DEVELOPMENT BANK QUANG NAM BRANCH
Address	No. 13 Tran Hung Dao Street, Tam Ky City, Quang Nam Province, Vietnam
Telephone	(84-510) 3852 926
Fax	(84-510) 3852 926

SHAREHOLDERS

Note: Following is the founding shareholder list.
1. NAME	Mr. HO CONG NAM
Position	Chairman cum Director
Date of Birth	30 Mar 1951
ID Number/Passport	200096231
Issued on	26 Jun 1994
Issued Place	Quang Nam - Da Nang Police Station
Resident	Group 42 Khue Trung , Cam Le District, Da Nang City, Vietnam
Mobile phone	+84 9 0359 6579
Nationality	Vietnamese
Value of shares	VND 24,000,000,000
Percentage	10.34%
2. NAME	Mr. TRAN CONG TAN
Position	Deputy Director
ID Number/Passport	200745236
Resident	Group 28 Thach Thang , Hai Chau District, Da Nang City, Vietnam
Nationality	Vietnamese
Value of shares	VND 30,000,000,000
Percentage	12.93%
3. NAME	Ms. HO VIET NGA
ID Number/Passport	201471788
Resident	No. 140 Tran Phu , Hai Chau District, Da Nang City, Vietnam
Nationality	Vietnamese
Value of shares	VND 30,000,000,000
Percentage	12.93%
4. NAME	Mr. PHAN QUANG XUNG
ID Number/Passport	201242128
Resident	42/9 Phan Chu Trinh , Hai Chau District, Da Nang City, Vietnam
Nationality	Vietnamese
Value of shares	VND 24,000,000,000
Percentage	10.34%
5. NAME	Mr. NGUYEN DUC TIEN
ID Number/Passport	201513823
Resident	Group 41A Hai An Dong , Son Tra District, Da Nang City, Vietnam
Nationality	Vietnamese
Value of shares	VND 24,000,000,000
Percentage	10.34%
6. NAME	Mr. DO TRI DUNG
ID Number/Passport	012528996
Resident	Group 101 Hoang Cau , Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 18,000,000,000
Percentage	7.76%

FINANCIAL DATA

N/A

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Normal
Liquidity	N/A
Payment status	N/A
Financial Situation	Average
Development trend	Developing
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	L/C
Sale Methods	To contracts
Public opinion	Normal

INTERPRETATION ON THE SCORES

PHU THANH MY JOINT STOCK COMPANY was established under the former business registration No.  3303070249 granted by Quang Nam Province People's Committee on 24th January 2007. On 28th September 2010, the business registration number was changed to same with the tax code number. Currently, it is operating with chartered capital as VND 232 billion is medium in comparison with other companies in the same field.

The subject specializes in investing and managing hydro power plant is Song Bung 4A Hydro Power plant. Currently, Song Bung 4A Hydro Power plants is still under construction. The design of installation for electric generation capacity for this hydro power plant is 49MW. The expected annual production capacity of the subject will be 182 million Kwh per year. This project was started on 29th August 2009 and it is expected to finish in 2014.

The hydropower plant of the subject is considered a medium plant in system of hydropower plants in Vietnam with total invested capital is about VND 1,498 billion. Total land area is 1,824,177.9 square meters, in which, the construction land area is 1,138,746.8 square meters and the reservoir area is 685,431.1 square meters. It now is installing the machinery and equipments to prepare for production. These equipments has imported from China and India with payment method as L/C. This hydro power plant has two power generation units, in which the 1st one has planned to start operating in 2nd quarter 2013 and the 2nd one is planned to start operating in 4th quarter 2013.

Financially, 80 percent of capital for Song Bung 4A project is financed by loan from THE VIETNAM DEVELOPMENT BANK QUANG NAM BRANCH. The subject has to pay interest cost is about VND 4 billion per year. The expected revenue is obtained when the subject is inaugurated is about VND 210 billion. The payback time of Song Bung 4A project is about 10 years.

In general, the subject is a medium hydro power plant in Vietnam. The subject has capacity to meet small financial commitments and caution needed for the average and big business transactions.

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.53.70
UK Pound	1	Rs.84.35
Euro	1	Rs.72.21

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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