MIRA INFORM REPORT

Report Date :

04.06.2013

IDENTIFICATION DETAILS

Name :	PHUONG MINH SERVICE AND TRADING INVESTMENT COMPANY LIMITED
Registered Office :	No. 10/49, Thinh Hao 1 Lane Ton Duc Thang Street, Hang Bot Ward, Dong Da District, Ha Noi City
Country :	Vietnam
Date of Incorporation :	09.03.2006
Com. Reg. No.:	0102025191
Legal Form :	Limited liability company
Line of Business :	Subject specializes in trading in chemicals, dyes and materials for garment, weaving and paper industries.
No. of Employees :	8

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 :	No Complaints
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 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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 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
Registered English Name	PHUONG MINH SERVICE AND TRADING INVESTMENT COMPANY LIMITED
Registered Vietnamese Name	CONG TY TNHH DAU TU THUONG MAI VA DICH VU PHUONG MINH
Registered Short name	PHUONG MINH IST CO., LTD
Type of Business	Limited liability company
Year Established	2006
Business Registration No.	0102025191
Date of Registration	09 Mar 2006
Place of Registration	Planning and Investment Department of Ha Noi City
Chartered capital	VND 800,000,000
Status	Unlisted
Tax code	0101889064
Total Employees	8
Size	Small

ADDRESSES
Head Office
Address	No. 10/49, Thinh Hao 1 Lane Ton Duc Thang Street, Hang Bot Ward, Dong Da District, Ha Noi City, Vietnam
Telephone	(84-4) 37323772/ 39109276
Fax	(84-4) 37323772
Note: Besides, the subject also has warehouses situated in Thanh Tri District and in Hung Yen Province.

DIRECTORS
1. NAME	Ms. TRUONG THI MINH HAI
Position	Director
Date of Birth	22 Jul 1952
ID Number/Passport	011162407
Resident	No. 25B7 Lang Ha Street, Dong Da District, Ha Noi City, Vietnam
Current resident	No. 10/49 Thinh Hao I Lane,Ton Duc Thang Str. Hang Bot Ward, Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
2. NAME	Ms. TRUONG THI MINH THU
Position	Vice Director
ID Number/Passport	011023514
Resident	No. 21 Thuoc Bac Str., Hang Bo Ward, Hoan Kiem District, Ha Noi City, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The Subject specializes in trading in chemicals, dyes and materials for garment, weaving and paper industries.

IMPORT & EXPORT ACTIVITIES
IMPORT:
· Types of products	materials
· Market	India, China and Germany
· Mode of payment	T/T
EXPORT:
Note: Currently, the subject does not export

BANKERS
ASIA COMMERCIAL BANK CUA NAM BRANCH
Address	No.48 Phung Hung, Hoan Kiem District, Ha Noi City, Vietnam
Telephone	(84-4) 3928 9802
Fax	(84-4) 3928 9804

SHAREHOLDERS
1. NAME	Ms. TRUONG THI MINH HAI
Position	Director
Date of Birth	22 Jul 1952
ID Number/Passport	011162407
Resident	No. 25B7 Lang Ha Street, Dong Da District, Ha Noi City, Vietnam
Current Resident	No. 10/49 Thinh Hao I Lane, Ton Duc Thang Str. Hang Bot Ward, Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 400,000,000
Percentage	50%
2. NAME	Ms. TRUONG THI MINH THU
Position	Vice Director
ID Number/Passport	011023514
Resident	No. 21 Thuoc Bac Str., Hang Bo Ward, Hoan Kiem District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 240,000,000
Percentage	30%
3. NAME	Ms. TRUONG THI HUONG GIANG
ID Number/Passport	012342095
Resident	No.9 Luong Van Can Str., Hang Dao Ward, Hoan Kiem District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 160,000,000
Percentage	20%

FINANCIAL DATA

Unfortunately, the subject’s financial data 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	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	T/T
Sale Methods	Distributor
Public opinion	Limited

INTERPRETATION ON THE SCORES

PHUONG MINH IST CO., LTD was founded in 2006 as a limited liability company following business registration No. 0102025191 granted on 9 Mar 2006 by Ha Noi Department of Planning and Investment. The subject could be considered as a family business with capital contribution by three members in a family: Ms. TRUONG THI MINH HAI, Ms. TRUONG THI MINH THU and Ms. TRUONG THI HUONG GIANG. Its current chartered capital remains VND 800 million.

The subject has head office located at No. 10/49, Thinh Hao 1 Lane, Ton Duc Thang Street, Hang Bot Ward, Dong Da District, Ha Noi City, Vietnam. This is private house address of Ms. Truong Thi Minh Ha – the subject’s director. Its facilities are normal, even a little narrow. The sitting room is used as working office. And an amount of goods also stores here. The subject registered in many business fields. However, at the moment it specializes in trading chemicals, dyes, and materials for garment, weaving and paper industries. The subject imports chemicals and materials from India, China and Germany and then distributes to domestic market. Customers are mainly workshops and small factories operating in garment, weaving and paper industries.

The subject is small company; it has to face with many difficulties in competing with other big companies. The financial data of the subject is not available in our source. According to the director of the company, estimated revenue in 2010 year is around VND 3 billion. Meanwhile the revenue in 2011 was much lower, at some hundreds of VND million. The subject begins to suffer from losses in 2011. And the situation in 2012 seems not to be brighter.

In overview, the subject is family based company. The subject operates mainly in base of its paid-up capital and previous customer relation. Its future prospect is normal. Currently, the subject has ability to meet only small financial commitments. Caution is needed for medium and large transactions with it.

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

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.56.57
UK Pound	1	Rs.86.15
Euro	1	Rs.73.64

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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