MIRA INFORM REPORT

 

 

Report Date :

18.07.2013

 

IDENTIFICATION DETAILS

 

Name :

HAI PHONG TRADING CONSTRUCTION NO5 JOINT STOCK COMPANY 

 

 

Registered Office :

No.22 Vo Thi Sau Str., May To ward, Ngo Quyen District, Hai Phong City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2009

 

 

Year of Establishments:

2000

 

 

Com. Reg. No.:

0200375711

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

·         construction of road, buildings, infrastructure, industry and civil projects

trading in asphalt, materials and equipment for transportation field, warehousing and bonded warehouse

 

 

No. of Employees :

100

 

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 has been transitioning from the rigidities of a centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to economic modernization in recent years. Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries. Vietnam became an official negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account for roughly 40% of GDP. 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 hurt Vietnam's export-oriented economy, with GDP in 2012 growing at 5%, the slowest rate of growth since 1999. In 2012, however, exports increased by more than 18%, year-on-year; several administrative actions brought the trade deficit back into balance. Between 2008 and 2011, Vietnam's managed currency, the dong, was devalued in excess of 20%, but its value remained stable in 2012. Foreign direct investment inflows fell 4.5% to $10.5 billion in 2012. Foreign donors have pledged $6.5 billion in new development assistance for 2013. Hanoi has oscillated between promoting growth and emphasizing macroeconomic stability in recent years. In February 2011, the Government shifted policy away from policies aimed at achieving a high rate of economic growth, which had stoked inflation, to those aimed at stabilizing the economy, through tighter monetary and fiscal control. Although Vietnam unveiled a broad, "three pillar" economic reform program in early 2012, proposing the restructuring of public investment, state-owned enterprises, and the banking sector, little perceptible progress had been made by early 2013. Vietnam's economy continues to face challenges from an undercapitalized banking sector. Non-performing loans weigh heavily on banks and businesses. In September 2012, the official bad debt ratio climbed to 8.8%, though some independent analysts believe it could be higher than 15%.

 

Source : CIA

 

 


SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

Registered English Name

 

HAI PHONG TRADING CONSTRUCTION NO5 JOINT STOCK COMPANY

Registered Vietnamese Name

 

CONG TY CO PHAN THUONG MAI XAY DUNG 5 HAI PHONG

Trade name

 

VIETRACIMEX HP

Registered Short name

 

VIETRACIMEX HAI PHONG

Type of Business

 

Joint stock company

Year Established

 

2000

Business Registration No.

 

0200375711

Date of Registration

 

02 Oct 2009

Place of Registration

 

Hai Phong Department of Planning and Investment

Chartered capital

 

VND 65,000,000,000

Status

 

Unlisted

Tax code

 

0200375711

Total Employees

 

100

 

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 0203001990 (issued 05 Jan 2006) Changed to: 0200375711

02 Oct 2009

2

Subject has got former Chartered capital: 12,720,000,000 VND

Changed to: 65,000,000,000 VND

18 Feb 2009

3

Subject has got former Chartered capital: 6,500,000,000 VND

Changed to: 12,720,000,000 VND

30 Jan 2007

 

Company ADDRESSES

 

Head Office

Address

 

No.22 Vo Thi Sau Str., May To ward, Ngo Quyen District, Hai Phong City, Vietnam

Telephone

 

(84-31) 3551237 /3835167 /3836681 /3836779 /3836815

Fax

 

(84-31) 3551237 /3836101 /3551055

Note: The exact tel number of the subject is as above. The given email and website are not exact.

 

Branch in Ha Noi

Address

 

No.201, Minh Khai St., Hai Ba Trung District, Ha Noi City, Vietnam

Business Registration No.

 

0113025243

Tax code

 

0200375711-005

 

 

 

DIRECTORS

 

1. NAME

 

Mr. VO NHAT THANG

Position

 

Chairman and Legal Representative

Date of Birth

 

29 Sep 1959

ID Number/Passport

 

012620512

ID Issue Date

 

22 Jul 2003

ID Issue Place

 

Hanoi Police Station

Resident

 

No. 24, Nguyen Huu Huan Str, Ly Thai To Ward, Hoan Kiem District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

2. NAME

 

Mr. LE VAN HOAN

Position

 

General Director

Nationality

 

Vietnamese

 

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject operates in the following business activities:
- Construction of building, road, infrastructure, civil and industrial projects…
- Trading in asphalt; materials and equipment for transportation field
- Trading in warehousing and bonded warehouse.

 

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Asphalt

·         Market

 

N/A

 

EXPORT:  N/A

 

 

 

BANKERS

 

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM HAI PHONG BRANCH

Address

 

No 11 Hoang Dieu, Hong Bang District, Hai Phong City, Vietnam

Telephone

 

(84-31) 3842658 / 3841115

Fax

 

(84-31) 3841117

Note: The exact name of the bank is as above

 

2. BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM HAI PHONG BRANCH

Address

 

No. 68-70 Dien Bien Phu, Hong Bang District, Hai Phong City, Vietnam

Telephone

 

(84-31) 3841475

Fax

 

(84-31) 3841060

 

3. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT BAC HA NOI BRANCH

Address

 

No. 266 Doi Can Street, Ba Dinh District, Ha Noi City, Vietnam

Telephone

 

(84-4) 37627632

Fax

 

(84-4) 37627636

 

 

 

SHAREHOLDERS

 

1. NAME

 

STATE OWNED SHARES

Number of shares

 

332,924

Value of shares

 

VND 3,329,240,000

Percentage

 

5.12%

Representative by

 

Mr. VO NHAT THANG

Position

 

Chairman and Legal Representative

ID Number/Passport

 

012620512

Address

 

No. 24, Nguyen Huu Huan Str, Ly Thai To Ward, Hoan Kiem District, Ha Noi City, Vietnam

 

2. NAME

 

STAFF OF COMPANY

Number of shares

 

6,037,300

Value of shares

 

VND 60,373,000,000

Percentage

 

92.88%

Representative by

 

Mr. DO HONG HAI

ID Number/Passport

 

030143594

Address

 

No.1A, Minh Khai St., Minh Khai Ward, Hong Bang Dist., Hai Phong City, Vietnam

 

3. NAME

 

OUTSIDE SHAREHOLDERS

Number of shares

 

129,776

Value of shares

 

VND 1,297,760,000

Percentage

 

2%

Representative by

 

Mr. PHAN TO QUANG

ID Number/Passport

 

030804123

Address

 

No.5/17, Luong Khanh Thien St., Ngo Quyen Dist., Hai Phong City, Vietnam

 

 

 

FINANCIAL DATA

 

Note: We are sorry for trying best but could not collect the latest financial statements.

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2009

Number of weeks

52

ASSETS

A – CURRENT ASSETS

35,335,359,157

I. Cash and cash equivalents

2,088,277,380

1. Cash

2,088,277,380

2. Cash equivalents

0

II. Short-term investments

0

1. Short-term investments

0

2. Provisions for devaluation of short-term investments

0

III. Accounts receivable

7,030,717,650

1. Receivable from customers

3,997,393,581

2. Prepayments to suppliers

30,527,500

3. Inter-company receivable

1,000,000,000

4. Receivable according to the progress of construction

0

5. Other receivable

2,871,664,000

6. Provisions for bad debts

-868,867,431

IV. Inventories

22,713,669,978

1. Inventories

22,713,669,978

2. Provisions for devaluation of inventories

0

V. Other Current Assets

3,502,694,149

1. Short-term prepaid expenses

54,282,334

2. VAT to be deducted

589,718,649

3. Taxes and other accounts receivable from the State

0

4. Other current assets

2,858,693,166

B. LONG-TERM ASSETS

2,701,482,508

I. Long term accounts receivable

0

1. Long term account receivable from customers

0

2. Working capital in affiliates

0

3. Long-term inter-company receivable

0

4. Other long-term receivable

0

5. Provisions for bad debts from customers

0

II. Fixed assets

2,701,482,508

1. Tangible assets

2,593,473,508

- Historical costs

5,992,036,859

- Accumulated depreciation

-3,398,563,351

2. Financial leasehold assets

0

- Historical costs

0

- Accumulated depreciation

0

3. Intangible assets

0

- Initial costs

0

- Accumulated amortization

0

4. Construction-in-progress

108,009,000

III. Investment property

0

Historical costs

0

Accumulated depreciation

0

IV. Long-term investments

0

1. Investments in affiliates

0

2. Investments in business concerns and joint ventures

0

3. Other long-term investments

0

4. Provisions for devaluation of long-term investments

0

V. Other long-term assets

0

1. Long-term prepaid expenses

0

2. Deferred income tax assets

0

3. Other long-term assets

0

VI. Goodwill

0

1. Goodwill

0

TOTAL ASSETS

38,036,841,665

 

LIABILITIES

A- LIABILITIES

24,067,607,963

I. Current liabilities

23,547,356,359

1. Short-term debts and loans

9,781,133,686

2. Payable to suppliers

25,724,900

3. Advances from customers

10,961,744,749

4. Taxes and other obligations to the State Budget

108,861,144

5. Payable to employees

651,896

6. Accrued expenses

0

7. Inter-company payable

0

8. Payable according to the progress of construction contracts

0

9. Other payable

2,669,239,984

10. Provisions for short-term accounts payable

0

II. Long-Term Liabilities

520,251,604

1. Long-term accounts payable to suppliers

0

2. Long-term inter-company payable

520,251,604

3. Other long-term payable

0

4. Long-term debts and loans

0

5. Deferred income tax payable

0

6. Provisions for unemployment allowances

0

7. Provisions for long-term accounts payable

0

8. Unearned Sale

0

9. Science and technology development fund

0

B- OWNER’S EQUITY

13,969,233,702

I. OWNER’S EQUITY

13,954,013,870

1. Capital

12,720,000,000

2. Share premiums

0

3. Other sources of capital

1,532,488

4. Treasury stocks

0

5. Differences on asset revaluation

0

6. Foreign exchange differences

0

7. Business promotion fund

695,015,137

8. Financial reserved fund

0

9. Other funds

0

10. Retained earnings

537,466,245

11. Construction investment fund

0

12. Business arrangement supporting fund

0

II. Other sources and funds

15,219,832

1. Bonus and welfare funds (Elder form)

15,219,832

2. Sources of expenditure

0

3. Fund to form fixed assets

0

MINORITY’S INTEREST

0

TOTAL LIABILITIES AND OWNER’S EQUITY

38,036,841,665

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2009

1. Total Sales

36,240,747,268

2. Deduction item

0

3. Net sale

36,240,747,268

4. Costs of goods sold

30,063,913,058

5. Gross profit

6,176,834,210

6. Financial income

84,673,336

7. Financial expenses

185,290,786

- In which: Loan interest expenses

185,290,786

8. Selling expenses

1,374,304,947

9. Administrative overheads

4,343,837,437

10. Net operating profit

358,074,376

11. Other income

13,636,364

12. Other expenses

4,437,775

13. Other profit /(loss)

9,198,589

14. Total accounting profit before tax

367,272,965

15. Current corporate income tax

32,136,384

16. Deferred corporate income tax

0

17. Interest from subsidiaries/related companies

0

18. Profit after tax

335,136,581

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2009

Average Industry

Current liquidity ratio

1.50

1.33

Quick liquidity ratio

0.54

0.83

Inventory circle

1.32

5.61

Average receive period

70.81

148.37

Utilizing asset performance

0.95

1.00

Liability by total assets

63.27

68.62

Liability by owner's equity

172.29

353.53

Ebit / Total assets (ROA)

1.45

6.96

Ebit / Owner's equity (ROE)

3.96

25.50

Ebit / Total sale (NPM)

1.52

7.11

Gross profit / Total sale (GPM)

17.04

14.39

Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

 

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Medium

Payment status

 

Average

Financial Situation

 

Average

Development trend

 

Stable

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

T/T, L/C

Sale Methods

 

To contracts

 

 

 

INTERPRETATION ON THE SCORES

 

Being established since year 2000 as a state owned company and operating as a member of VIETNAM TRADING ENGINEERING CONSTRUCTION JOINT STOCK CORPORATION (VIETRACIMEX). To 2006, the subject equitized to a joint stock company. After a few times of adjustment, its current chartered capital is VND 65 billion.

The business operation of the subject includes construction of road, buildings, infrastructure, industry and civil projects…; trading in asphalt, materials and equipment for transportation field, warehousing and bonded warehouse. It has carried many construction projects within Hai Phong area and got concern from clients, for example Da Nang secondary school project. It is also one of contractors of Ho Sen - Cau Rao 2 road project which has been cleared in 2010.

The premise and facilities of the subject are fair. The subject has about 100 people in total employees. Head office is located at No.22, Vo Thi Sau St., Ngo Quyen district, Hai Phong City. Besides, it has one branch in the same address of VIETRACIMEX.

Financially, looking at balance sheet, total assets is more than 38 billion VND, among that current assets holds the main ratio, with more than 90%. In liabilities structure, total liabilities hold more than 63% of total assets while this ratio on owner’s equity is around 172%. This ratio is lower than the average industry and suitable for a construction company like subject. However, the high ratio means that subject may put into risk if having changes of economic situation.

As can be seen in profit and lost statement, its total sales in 2009 is around 36 billion VND and profit reported is limited. The profitability of the subject is modest.

In general, the subject is now operating normally. Its position in this field is average. It is suitable for small financial commitments.

 

 

 

APPENDIX

 

INDUSTRY DATA

  

Industry code

GDP growth speed by price compared with 1994 (%)

Total enterprises 2010

Total employees 2011

(Thous.pers.)

Annual average capital of enterprises 2010

(billion dongs)

2012

2011

Agriculture, Forestry and Fishing

2.72

4.00

8,887

24,362.9

95,227

Industry and Construction

4.52

5.53

95,217

10,718.9

3,641,376

Trade and Services

6.42

6.69

187,195

15,270.2

6,957,082

 

ECONOMIC INDICATORS

 

 

2012 

2011 

2010 

Population (Million person)

88.78

87.84

86.93

Gross Domestic Products (USD billion)

136

119

102.2

GDP Growth (%)

5.03

5.89

6.78

GDP Per Capita (USD/person/year)

1,540

1,300

1,160

Inflation (% Change in Composite CPI)

9.21

18.58

11.75

State Budget Deficit compared with GDP (%)

4.8

4.9

5.8

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2012 

2011 

2010 

Exports

114.6

96.3

72.2

Imports

114.3

105.8

84.8

Trade Balance

0.3

-9.5

-12.6

Source: General Statistics Office


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.36

UK Pound

1

Rs.89.69

Euro

1

Rs.77.99

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.