MIRA INFORM REPORT

 

 

Report Date :

18.06.2013

 

IDENTIFICATION DETAILS

 

Name :

VIET HONG CHEMICAL AND TRADING COMPANY LIMITED

 

 

Registered Office :

R1411, The Garden Building, Me Tri Str., Me Tri Commune, Tu Liem District, Ha Noi City

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2007

 

 

Year of Incorporation :

2003

 

 

Com. Reg. No.:

0101330491

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading in minerals, ferrous metal and non-ferrous metal, alloy (excluding the prohibited kinds)

 

 

No. of Employees :

Over 10 employees

 

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 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

 

VIET HONG CHEMICAL AND TRADING COMPANY LIMITED

Registered Vietnamese Name

 

CONG TY TNHH THUONG MAI VA HOA CHAT VIET HONG

Registered Short name

 

VH CHEM CO., LTD

Type of Business

 

Limited liability company

Year Established

 

2003

Business Registration No.

 

0101330491

Date of Registration

 

05 Mar 2010

Place of Registration

 

Hanoi Planning and Investment Department

Current Chartered capital

 

VND 6,000,000,000

Status

 

Unlisted

Tax code

 

0101330491

Total Employees

 

Over 10 employees

Size

 

Small

Note:  The exact name is as above (Chemical not Chemicals).

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 0102007443 dated on 02 Jan 2003

Changed to: 0101330491

05 Mar 2010

2

Subject has got former Abbreviated Name: VIET HONG T.A.C CO., LTD Changed to: VH CHEM CO., LTD

N/A

3

Subject has got former Registration Address: Zoom 502 - Building CT1, My Dinh Urban Area, Tu Liem District, Ha Noi City, Vietnam

Changed to: R1411, The Garden Building,, Me Tri Str., Me Tri Commune, Tu Liem District, Ha Noi City, Vietnam

N/A

4

Subject has got former Head Office: No. 12 - Alley 189, Khuong Thuong Str - Khuong Thuong Ward, Thanh Xuan District, Ha Noi City, Vietnam

Changed to: R1411, The Garden Building,, Me Tri Str., Me Tri Commune, Tu Liem District, Ha Noi City, Vietnam

N/A

5

Subject has got former Director: TA NAM HUNG

Changed to: DO THI THU THUONG

N/A

 

 

ADDRESSES

 

Head Office

Address

 

R1411, The Garden Building, Me Tri Str., Me Tri Commune, Tu Liem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 37875264/5

Fax

 

(84-4) 37875263

Email

 

hcviethong@vnn.vn

Note: The given is the former address of the subject. Now, it is operating at the above address.

 

 

SUBSIDIARIES AND RELATED COMPANIES

 

PARENT COMPANY - VICTORY JOINT STOCK COMPANY

Business Registration

 

5300349217

Date of Registration

 

20 Jan 2010

Place of Registration

 

Lao Cai Department of Planning and Investment

Chartered capital

 

VND 4,800,000,000

Tax code

 

5300349217

Address

 

Lot F21 Phung Hung Str, DOng Pho Moi IP, Lao Cai City, Lao Cai Province, Vietnam

Tel

 

+84-20-386 689

Fax

 

+84-20-386 689

 

 

DIRECTORS

 

NAME

 

Ms. DO THI THU THUONG

Position

 

Director

Date of Birth

 

13 Apr 1984

ID Number/Passport

 

090963766

ID Issue Date

 

17 Jan 2002

ID Issue Place

 

Police of Thai Nguyen Province

Resident

 

Dai Hung Area, Bai Song Town, Pho Yen District, Thai Nguyen Province, Vietnam

Current resident

 

R709, Lot 9B Dai Kim New Urban Area, Dai Kim Ward, Hoang Mai District, Ha Noi City, Vietnam

Nationality

 

Vietnamese

 

 

BUSINESS NATURE AND ACTIVITIES

 

The subject registers and operates in the following business activities:
• Trading in minerals, ferrous metal and non-ferrous metal, alloy (excluding the prohibited kinds)
• Trading in Chemicals
• Trading in instrument, equipment.

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

materials and goods

·         Market

 

China, America…

 

EXPORT:

·         Market

 

N/A

 

 

BANKERS

N/A

 

 

SHAREHOLDERS

 

1. NAME

 

Mr. TA NAM HUNG

Date of Birth

 

18 Apr 1971

ID Number/Passport

 

011637031

Issued on

 

20 Jun 2012

Issued Place

 

Ha Noi Police Station

Resident

 

No.12/189, Khuong Thuong Khuong Thuong Ward, Dong Da District, Ha Noi City, Vietnam

Current Resident

 

No.12/189, Khuong Thuong Khuong Thuong Ward, Dong Da District, Ha Noi City, Vietnam

Mobile phone

 

+84 913230888

Nationality

 

Vietnamese

Value of shares

 

VND 5,850,000,000

Percentage

 

97.5%

 

2. NAME

 

Mr. NGUYEN TIEN DUNG

Resident

 

Ha Noi City, Vietnam

Nationality

 

Vietnamese

Value of shares

 

VND 150,000,000

Percentage

 

2.5%

 

 

FINANCIAL DATA

 

Despite trying best, the latest financial data is not available.

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2007

Number of weeks

52

ASSETS

A – CURRENT ASSETS

68,176,000,000

I. Cash and cash equivalents

2,832,000,000

1. Cash

2,832,000,000

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

41,579,000,000

1. Receivable from customers

36,584,000,000

2. Prepayments to suppliers

2,340,000,000

3. Inter-company receivable

0

4. Receivable according to the progress of construction

0

5. Other receivable

2,655,000,000

6. Provisions for bad debts

0

IV. Inventories

21,994,000,000

1. Inventories

21,994,000,000

2. Provisions for devaluation of inventories

0

V. Other Current Assets

1,771,000,000

1. Short-term prepaid expenses

0

2. VAT to be deducted

1,382,000,000

3. Taxes and other accounts receivable from the State

0

4. Other current assets

389,000,000

B. LONG-TERM ASSETS

1,524,000,000

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

1,488,000,000

1. Tangible assets

1,488,000,000

- Historical costs

1,781,000,000

- Accumulated depreciation

-293,000,000

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

0

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

36,000,000

1. Long-term prepaid expenses

0

2. Deferred income tax assets

0

3. Other long-term assets

36,000,000

VI. Goodwill

 

1. Goodwill

 

TOTAL ASSETS

69,700,000,000

 

LIABILITIES

A- LIABILITIES

68,401,000,000

I. Current liabilities

68,401,000,000

1. Short-term debts and loans

16,604,000,000

2. Payable to suppliers

50,400,000,000

3. Advances from customers

211,000,000

4. Taxes and other obligations to the State Budget

1,186,000,000

5. Payable to employees

0

6. Accrued expenses

0

7. Inter-company payable

0

8. Payable according to the progress of construction contracts

0

9. Other payable

0

10. Provisions for short-term accounts payable

0

11. Bonus and welfare funds

0

II. Long-Term Liabilities

0

1. Long-term accounts payable to suppliers

0

2. Long-term inter-company payable

0

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 Revenue

0

9. Science and technology development fund

0

B- OWNER’S EQUITY

1,299,000,000

I. OWNER’S EQUITY

1,299,000,000

1. Capital

1,000,000,000

2. Share premiums

0

3. Other sources of capital

0

4. Treasury stocks

0

5. Differences on asset revaluation

0

6. Foreign exchange differences

0

7. Business promotion fund

0

8. Financial reserved fund

0

9. Other funds

0

10. Retained earnings

299,000,000

11. Construction investment fund

0

12. Business arrangement supporting fund

0

II. Other sources and funds

0

1. Bonus and welfare funds (Elder form)

0

2. Sources of expenditure

0

3. Fund to form fixed assets

0

MINORITY’S INTEREST

0

TOTAL LIABILITIES AND OWNER’S EQUITY

69,700,000,000

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2007

1. Total Sales

181,116,000,000

2. Deduction item

0

3. Net revenue

181,116,000,000

4. Costs of goods sold

178,242,000,000

5. Gross profit

2,874,000,000

6. Financial income

293,000,000

7. Financial expenses

2,011,000,000

- In which: Loan interest expenses

958,000,000

8. Selling expenses

0

9. Administrative overheads

943,000,000

10. Net operating profit

213,000,000

11. Other income

5,000,000

12. Other expenses

2,000,000

13. Other profit /(loss)

3,000,000

14. Total accounting profit before tax

216,000,000

15. Current corporate income tax

61,000,000

16. Deferred corporate income tax

0

17. Interest from subsidiaries/related companies

 

18. Profit after tax

155,000,000

 

 

FINANCIAL RATIOS

 

Description

FY2007

Current liquidity ratio

1.00

Quick liquidity ratio

0.68

Inventory circle

8.10

Average receive period

83.79

Utilizing asset performance

2.60

Liability by total assets

98.14

Liability by owner's equity

5,265.67

Ebit / Total assets (ROA)

1.68

Ebit / Owner's equity (ROE)

90.38

Ebit / Total revenue (NPM)

0.65

Gross profit / Total revenue (GPM)

1.59

 

 

FINANCIAL HIGHLIGHT

 

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2006

31/12/2005

31/12/2004

Number of weeks

52

52

52

ASSETS

A. Current Asset

16,899,000,000

14,616,000,000

11,858,000,000

Receivables

-

-

-

Inventory

-

-

-

Cash and other current assets

-

-

-

B. Long term Asset

395,000,000

501,000,000

548,000,000

1. Long term account receivable

0

0

0

2. Fixed assets

395,000,000

501,000,000

548,000,000

Tangible fixed assets

-

-

-

+ Original cost

-

-

-

+ Accumulated depreciation value

-

-

-

Financial leasehold assets

-

-

-

Intangible fixed assets

-

-

-

Construction in progress and other long term asset

-

-

-

TOTAL ASSETS

17,294,000,000

15,117,000,000

12,406,000,000

 

LIABILITIES

Payable loans

16,150,000,000

14,033,000,000

11,346,000,000

Owner’s Equity

1,144,000,000

1,084,000,000

1,060,000,000

TOTAL LIABILITY AND EQUITY

17,294,000,000

15,117,000,000

12,406,000,000

 

PROFIT & LOSS STATEMENT

Description

FY2006

FY2005

Total revenue

83,191,000,000

52,003,000,000

Deductions Items

0

0

1. Net revenue

83,191,000,000

52,003,000,000

2. Cost of goods sold and operation expense

83,039,000,000

51,951,000,000

3. Net income from business activities

152,000,000

52,000,000

Income from financial activities

0

0

Expenditure from financial activities

0

0

4. Net income from financial operation

0

0

Irregular income

0

-

Irregular expenditure

0

-

5. Irregular Profit

0

9,000,000

6. Total pre-tax profit

152,000,000

61,000,000

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

 

 

Trade Morality

 

Fair

 

Liquidity

 

N/A

 

Payment status

 

N/A

 

Financial Situation

 

N/A

 

Development trend

 

N/A

 

Litigation data

 

No

 

Bankruptcy

 

No

 

Payment Methods

 

L/C, T/T

 

Sale Methods

 

Retailer and Wholesaler

 

Public opinion

 

Normal

 

 

 

 

INTERPRETATION ON THE SCORES

 

The subject company was established in 2003 in Ha Noi City as a limited liability company following business registration No. 0102007443 granted on 02 Jan 2003 by Ha Noi Department of Planning and Investment. On 05 Mar 2010, the subject has changed business license to No. 0101330491 for the tax code coincidence. Currently, it is operating with chartered capital of VND 6 billion in which Mr. TA NAM HUNG - former director of the subject is the main shareholder holding 97.5% of the stakes. Now, the subject's director is Ms. DO THI THU THUONG managing about more than 10 employees.

Formerly, the headquarter of the company was located at No.2, 189 Alley, Khuong Thuong Str., Khuong Thuong Ward, Dong Da District, Ha Noi City, Vietnam. This is very private house's address of the former director - Mr. TA NAM HUNG. After that, the head office has been moved to address of Room 1411, The Garden Building, Me Tri Str., Me Tri Commune, Tu Liem District, Hanoi. The subject is specialized in importing and trading chemicals, alloys and materials for animal feed production. Currently, the company imports products and materials from some external markets including China, Argentina and etc...The premises and facility of the subject are fair.

Financially, it's unfortunate the latest financial data of the subject is not available in our source. However, under older data we has collected, the financial situation of the company is considered as average. The total assets and turnover are increased year after year. In 2007, the subject gained VND 181,116 million on total sales, which increased about 117.7% compared to 2006 and 248.3% against 2005. In the past, the subject’s operation depended much on the outside capital and the liquidity capacity was not very high. The profitability was rather humble.

In overview, the subject’s prestige is normal. Products and image of its brand name are not famous in Vietnam. Management and competitive capability of the subject are normal too. It is expected to be brighter in the coming time. Now, the subject has capacity to meet small financial commitments. Caution is needed for medium – large transactions with it.

 

 

----------- 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.57.73

UK Pound

1

Rs.90.61

Euro

1

Rs.76.96

 

 

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%)

 

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