MIRA INFORM REPORT

 

 

Report Date :

06.06.2013

 

IDENTIFICATION DETAILS

 

Name :

DSM NUTRITIONAL PRODUCTS VIETNAM COMPANY LIMITED

 

 

Registered Office :

No. 9, Road No. 14, Vietnam- Singapore II Industrial Park, Tan Uyen District, Binh Duong Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2010

 

 

Year of Incorporation :

2001

 

 

Legal Form :

Limited Liability Company (Foreign invested company)

 

 

Line of Business :

The subject specializes in processing and trading in vitamins, premix and raw materials for processing animal feeds.

 

 

No. of Employees :

40

 

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 :

Slow but correct

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

English Name

 

DSM NUTRITIONAL PRODUCTS VIETNAM COMPANY LIMITED

Vietnamese Name

 

CONG TY TNHH DSM NUTRITIONAL PRODUCTS VIET NAM

Trade name

 

DSM NUTRITIONAL PRODUCTS (VIETNAM) LTD

Type of Business

 

Limited liability company (Foreign invested company)

Year Established

 

2001

Investment Certificate No

 

463043000152

Date Of Issuance

 

23 Aug 2011

Place of Issuance

 

Vietnam-Singapore Industrial Zone Authority

Registered Investment Capital

 

USD 1,000,000

Chartered capital

 

USD 1,000,000

Investment Duration

 

45 years since October 1st 2001

Tax code

 

3700376726

Total Employees

 

40

 

Historical Identification & Legal form

 

List

Changed Items

1

Subject has got former Investment Certificate No: Original Investment License No. 046/GP-KCN-VS (Adjusted License No. 046/GPDC2-KCN-VS) is issued on May 31st 2001 by Management Board of Vietnam-Singapore Industrial Park

Changed to: 463043000152 issued in 2008

2

Subject has got former Trade Name: ROCHE VITAMINS VIETNAM

Changed to: DSM NUTRITIONAL PRODUCTS (VIETNAM) LTD

 

 

ADDRESSES

 

Head Office

Address

 

No. 9, Road No. 14, Vietnam- Singapore II Industrial Park, Tan Uyen District, Binh Duong Province, Vietnam

Telephone

 

(84-650) 2221 301

Fax

 

(84-650) 2221 300

Email

 

marketing.dnpap@dsm.com

 

Former Address

Address

 

No. 26, Doc Lap Avenue, Vietnam- Singapore Industrial Park, Thuan An Town, Binh Duong Province, Vietnam

Note: The address given is former one.

 

 

DIRECTORS

 

1. NAME

 

Mr. REDMAN ROBERT GORDON HARCOURT (ROBERT REDMAN)

Position

 

General Director

ID Number/Passport

 

E3009618

Email

 

robert.redman@dsm.com

Qualification

 

Management

 

2. NAME

 

Mr. NGUYEN THE HOANG

Position

 

Sales Manager

Nationality

 

Vietnamese

Tel/Mobile phone

 

+84 913 902 696

Qualification

 

Management

 

3. NAME

 

Mr. NGUYEN DANH

Position

 

Chief Accountant

Email

 

danh.nguyen@dsm.com

Nationality

 

Vietnamese

Qualification

 

Management

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject specializes in processing and trading in vitamins, premix and raw materials for processing animal feeds.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Raw materials

·         Market

 

France, USA, Holland, Switzerland, Belgium, Germany, Singapore and China

 

EXPORT: N/A

 

 

BANKERS

 

1. CITI BANK - HOCHIMINH CITY BRANCH

Address

 

No. 115 Nguyen Hue Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3824 2118

Fax

 

(84-8) 3824 2114

 

2. ANZ BANK HOCHIMINH CITY BRANCH

Address

 

No. 11 Me Linh Square - Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3829 9319

Fax

 

(84-8) 3829 9316

 

3. JOINT STOCK BANK FOR FOREIGN TRADE OF VIETNAM HO CHI MINH BRANCH

Address

 

No.10 Vo Van Kiet Street, District 1, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3829 7245

Fax

 

(84-8) 3829 7228

 

 

SHAREHOLDERS

 

NAME

 

DSM GROUP

Address

 

Netherlands

Percentage

 

100%

 

 


 

 

FINANCIAL DATA

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2010

31/12/2009

31/12/2008

Number of weeks

52

52

52

ASSETS

A – CURRENT ASSETS

244,998,649,923

176,157,332,387

138,395,647,090

I. Cash and cash equivalents

34,455,874,095

17,050,648,345

20,019,832,776

1. Cash

34,455,874,095

17,050,648,345

20,019,832,776

2. Cash equivalents

0

0

0

II. Short-term investments

0

0

0

1. Short-term investments

0

0

0

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

73,142,950,595

70,136,801,098

48,177,789,922

1. Receivable from customers

73,142,950,595

70,136,801,098

48,132,435,899

2. Prepayments to suppliers

0

 

45,354,023

3. Inter-company receivable

0

0

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

0

0

0

6. Provisions for bad debts

0

0

0

IV. Inventories

133,223,154,458

85,772,452,480

65,936,935,289

1. Inventories

133,068,310,292

85,997,312,646

67,778,403,727

2. Provisions for devaluation of inventories

154,844,166

-224,860,166

-1,841,468,438

V. Other Current Assets

4,176,670,775

3,197,430,464

4,261,089,103

1. Short-term prepaid expenses

529,550,488

166,762,173

104,375,822

2. VAT to be deducted

3,435,776,727

2,705,204,731

3,578,184,217

3. Taxes and other accounts receivable from the State

0

 

181,960,504

4. Other current assets

211,343,560

325,463,560

396,568,560

B. LONG-TERM ASSETS

10,868,699,075

11,869,271,427

13,105,049,897

I. Long term accounts receivable

0

0

0

1. Long term account receivable from customers

0

0

0

2. Working capital in affiliates

0

0

0

3. Long-term inter-company receivable

0

0

0

4. Other long-term receivable

0

0

0

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

8,862,023,367

10,267,832,508

11,659,850,186

1. Tangible assets

8,862,023,367

10,267,832,495

11,659,850,173

- Historical costs

24,856,498,158

24,920,687,006

25,336,449,262

- Accumulated depreciation

-15,994,474,791

-14,652,854,511

-13,676,599,089

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

0

13

13

- Initial costs

1,491,014,407

1,491,014,407

1,491,014,407

- Accumulated amortization

-1,491,014,407

-1,491,014,394

-1,491,014,394

4. Construction-in-progress

0

0

0

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

0

0

5,000,000

1. Investments in affiliates

0

0

0

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

0

0

5,000,000

4. Provisions for devaluation of long-term investments

0

0

0

V. Other long-term assets

2,006,675,708

1,601,438,919

1,440,199,711

1. Long-term prepaid expenses

0

0

0

2. Deferred income tax assets

872,972,645

518,847,201

423,566,020

3. Other long-term assets

1,133,703,063

1,082,591,718

1,016,633,691

VI. Goodwill

0

0

0

1. Goodwill

0

0

0

TOTAL ASSETS

255,867,348,998

188,026,603,814

151,500,696,987

 

LIABILITIES

A- LIABILITIES

192,695,712,371

141,121,087,726

104,961,690,644

I. Current liabilities

191,675,447,156

140,448,582,131

104,344,137,635

1. Short-term debts and loans

0

0

0

2. Payable to suppliers

180,547,704,540

136,533,729,550

100,690,653,575

3. Advances from customers

0

0

0

4. Taxes and other obligations to the State Budget

5,220,187,086

940,767,279

546,125,579

5. Payable to employees

0

0

0

6. Accrued expenses

4,378,294,783

2,249,434,782

2,594,748,866

7. Inter-company payable

0

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

1,529,260,747

724,650,520

512,609,615

10. Provisions for short-term accounts payable

0

0

0

11. Bonus and welfare funds

 

0

0

II. Long-Term Liabilities

1,020,265,215

672,505,595

617,553,009

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

0

0

0

4. Long-term debts and loans

0

0

0

5. Deferred income tax payable

0

0

0

6. Provisions for unemployment allowances

1,020,265,215

672,505,595

617,553,009

7. Provisions for long-term accounts payable

0

0

0

8. Unearned Revenue

0

0

0

9. Science and technology development fund

0

0

0

B- OWNER’S EQUITY

63,171,636,627

46,905,516,088

46,539,006,343

I. OWNER’S EQUITY

63,171,636,627

46,905,516,088

46,539,006,343

1. Capital

14,997,500,000

14,997,500,000

14,997,500,000

2. Share premiums

0

0

0

3. Other sources of capital

0

0

0

4. Treasury stocks

0

0

0

5. Differences on asset revaluation

0

0

0

6. Foreign exchange differences

0

0

0

7. Business promotion fund

0

0

0

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

48,174,136,627

31,908,016,088

31,541,506,343

11. Construction investment fund

0

0

0

12. Business arrangement supporting fund

0

0

0

II. Other sources and funds

0

0

0

1. Bonus and welfare funds (Elder form)

0

0

0

2. Sources of expenditure

0

0

0

3. Fund to form fixed assets

0

0

0

MINORITY’S INTEREST

0

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

255,867,348,998

188,026,603,814

151,500,696,987

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2010

FY2009

1. Total Sales

735,334,213,164

656,687,585,675

2. Deduction item

745,514,523

0

3. Net revenue

734,588,698,641

656,687,585,675

4. Costs of goods sold

689,641,644,540

605,425,788,446

5. Gross profit

44,947,054,101

51,261,797,229

6. Financial income

3,554,496,978

5,905,794,729

7. Financial expenses

10,018,690,163

39,134,429,074

- In which: Loan interest expenses

-

-

8. Selling expenses

10,756,885,236

9,890,977,368

9. Administrative overheads

8,283,865,916

7,439,381,368

10. Net operating profit

19,442,109,764

702,804,148

11. Other income

677,569,553

458,372,115

12. Other expenses

744,902,246

188,806,169

13. Other profit /(loss)

-67,332,693

269,565,946

14. Total accounting profit before tax

19,374,777,071

972,370,094

15. Current corporate income tax

3,462,781,976

701,143,050

16. Deferred corporate income tax

354,125,444

95,282,701

17. Interest from subsidiaries/related companies

0

0

18. Profit after tax

15,557,869,651

175,944,343

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2010

FY2009

Average Industry

Current liquidity ratio

1.28

1.25

1.43

Quick liquidity ratio

0.58

0.64

0.56

Inventory circle

5.18

7.98

5.64

Average receive period

36.34

38.98

27.24

Utilizing asset performance

2.87

3.49

2.27

Liability by total assets

75.31

75.05

58.03

Liability by owner's equity

305.04

300.86

169.12

Ebit / Total assets (ROA)

7.57

0.52

16.77

Ebit / Owner's equity (ROE)

30.67

2.07

41.49

Ebit / Total revenue (NPM)

2.63

0.15

7.21

Gross profit / Total revenue (GPM)

6.11

7.81

12.54

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

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

N/A

Payment status

 

N/A

Financial Situation

 

Above Average

Development trend

 

Stable

Litigation data

 

No Recorded

Bankruptcy

 

No Recorded

Payment Methods

 

L/C, T/T

Sale Methods

 

Wholesaler

Public opinion

 

Good

 

 

 

INTERPRETATION ON THE SCORES

 

The subject - DSM NUTRITIONAL PRODUCTS VIETNAM COMPANY LIMITED - was established in 2001 in Binh Duong Province. The subject has adjusted its license few times during operation. Currently, it is operating under Investment Certificate No. 463043000152 issued by Vietnam-Singapore Industrial Zone Authority.

Originally, the subject was founded by Roche Pharmholdings B.V under the name of Roche Vitamins Vietnam. In 2003, the subject was sold to DSM Group and its name was changed to “DSM Nutritional Products Vietnam Company Limited” (DSM Group is the world's leading supplier of vitamins, carotenoids and other chemicals for feed, foodstuff, pharmaceutical and cosmetic industries).

Formerly, head office of the subject was located at “No. 26, Doc Lap Avenue, Vietnam- Singapore Industrial Park, Thuan An Town, Binh Duong Province, Vietnam”. Since 2013, the subject has transferred to address “No. 9, Road No. 14, Vietnam- Singapore II Industrial Park, Tan Uyen District, Binh Duong Province, Vietnam”.

It is specialized in processing and trading in vitamins, premix and raw materials for processing animal feeds. The subject imports raw materials for its production from many countries. Finished products are consumed in domestic only. The facilities and premises of the subject are fairly good. Its management capability is normal.

In overview, the subject’s operation seems stable in recent times. Its financial situation is fairly stable. Its turnover is fairly good in comparison with other companies in same field. It is reliable for the small-normal business transactions.

 

 

------------ 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.56.42

UK Pound

1

Rs.86.54

Euro

1

Rs.73.86

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.