MIRA INFORM REPORT

Report Date :

18.06.2013

IDENTIFICATION DETAILS

Name :	VIETNAM INVESTMENT PROMOTING TECHNICS AND CONSTRUCTION JOINT STOCK COMPANY
Registered Office :	Suite 106 - House A - Xuan Dinh New Urban Zone - Xuan Dinh Commune, Tu Liem District, Ha Noi City
Country :	Vietnam
Financials (as on) :	31.12.2009
Date of Incorporation :	20.06.2005
Com. Reg. No.:	0103006547
Legal Form :	Joint Stock Company
Line of Business :	The subject specializes in consulting, constructing of transportation projects, industrial plants.
No. of Employees :	About 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
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)
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	VIETNAM INVESTMENT PROMOTING TECHNICS AND CONSTRUCTION JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN DAU TU PHAT TRIEN KY NGHE VA XAY DUNG VIET NAM
Short name	TECHCONVINA ., JSC
Type of Business	Joint stock company
Year Established	2005
Business Registration No.	0103006547
Date of Registration	20 Jan 2005
Place of Registration	Hanoi Planning and Investment Department
Chartered capital	VND 100,000,000,000
Status	Unlisted
Tax code	0101604551
Total Employees	About 40
Size	Medium
Note: The correct name of subject is as above.

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Address: D9/D6 Road 3 - Tran Thai Tong Street - Dich Vong Ward - Cau Giay District - Hanoi Changed to: 7th Floor - ATS Building - No. 252 Hoang Quoc Viet Street - Co Nhue Commune - Tu Liem District - Hanoi	2012
2	Subject has got former Chartered capital: VND 90 billion Changed to: VND 100 billion	23 Oct 2009
3	Subject has got former Chartered capital: VND 30 billion Changed to: VND 90 billion	2008

ADDRESSES
Head Office
Address	Suite 106 - House A - Xuan Dinh New Urban Zone - Xuan Dinh Commune, Tu Liem District, Ha Noi City, Vietnam
Transaction office in Ha Noi
Address	7th Floor - ATS Building - No. 252 Hoang Quoc Viet Street - Co Nhue Commune, Tu Liem District, Ha Noi City, Vietnam
Telephone	(84-4) 3750 0999
Fax	(84-4) 3750 1001
Email	techconvina@techconvina.com
Website	techconvina.com
Land-use Right	Leased
Branch in Ho Chi Minh
Address	No. 1493 - Road 31 - Zone C - An Phu - Khanh Ward , 2 District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 6281 3602
Fax	(84-8) 6281 3608
Branch in Da Nang
Address	No. 61, Quang Trung Street, Hai Chau District, Da Nang City, Vietnam
Note: This branch was closed.

SUBSIDIARIES AND RELATED COMPANIES
1. TECHCONVINA FACTORY TOTAL TECHNICAL CARE SERVICE COMPANY LIMITED
Business Registration	0101604551-002
Tax code	0101604551-002
Address	No. 440 Buoi Street - Cong Vi Ward , Ba Dinh District, Ha Noi City, Vietnam
2. TECHCONVINA TRADING AND LOGISTICS CO.,LTD
Business Registration	0101604551-001
Tax code	0101604551-001
Address	Lot 38 - C8 Le Thanh Tong - Van My Ward , Ngo Quyen District, Hai Phong City, Vietnam
Tel	(84-31) 6260 956
Fax	(84-31) 6260 956
Website	t-transport.com
Note: This subsidiary was closed.
3. TECHCONVINA SMARTHOME SOLUTIONS COMPANY LIMITED
Business Registration	0101604551-003
Tax code	0101604551-003
Address	Suite 106 - House A - Xuan Dinh New Urban Zone - Xuan Dinh Commune , Tu Liem District, Ha Noi City, Vietnam

DIRECTORS
NAME	Mr. DUONG NGUYEN HUNG
Position	Chairman cum General Director
Date of Birth	19 Dec 1975
ID Number/Passport	011914615
ID Issue Date	25 Nov 2004
ID Issue Place	Hanoi Police Station
Resident	No. 29 - Group 79 - Hao Nam - O Cho Dua Ward, Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese

BUSINESS NATURE AND ACTIVITIES

The subject specializes in consulting, constructing of transportation projects, industrial plants.

IMPORT & EXPORT ACTIVITIES

IMPORT:

Note: Currently, the subject does not import

EXPORT:

Note: Currently, the subject does not export

BANKERS
VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK HOANG QUOC VIET BRANCH
Address	1st Floor - No. 98 Hoang Quoc Viet Str, Cau Giay District, Ha Noi City, Vietnam
Telephone	(84-4) 6267 0269
Fax	(84-4) 6267 0265

SHAREHOLDERS
1. NAME	Mr. DUONG NGUYEN HUNG
Position	Chairman cum General Director
Date of Birth	19 Dec 1975
ID Number/Passport	011914615
Issued on	25 Nov 2004
Issued Place	Hanoi Police Station
Resident	No. 29 - Group 79 - Hao Nam - O Cho Dua Ward, Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 97,000,000,000
Percentage	97%
2. NAME	Mr. NGUYEN DINH CHIEN
ID Number/Passport	120770653
Resident	Tan Van Hamlet - Tan Dinh Commune, Lang Giang District, Bac Giang Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 750,000,000
Percentage	0.75%
3. NAME	Mr. BUI VAN NGU
ID Number/Passport	AQ 0071597
Resident	No. 196M Tay Son - Trung Liet Ward , Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
Value of shares	VND 750,000,000
Percentage	0.75%
4. NAME	Mr. NGUYEN HUU KIEN
ID Number/Passport	125250153
Resident	Lac Trung Hamlet - Trung Yen Commune , Yen Phong District, Bac Ninh Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 750,000,000
Percentage	0.75%
5. NAME	Mr. LE NGUYEN HOANG
ID Number/Passport	145097702
Resident	Thiet Tru Hamlet – Binh Minh Commune, Khoai Chau District, Hung Yen Province, Vietnam
Nationality	Vietnamese
Value of shares	VND 750,000,000
Percentage	0.75%

FINANCIAL HIGHLIGHT
We tried our best to collect the financial data in recent years but not available.
BALANCE SHEET
Unit: Million VND
Balance sheet date	31/12/2009	31/12/2008
Number of weeks	52	52
ASSETS
A. Current Asset	163,656	150,225
Receivables	106,088	39,446
Inventory	19,660	94,833
Cash and other current assets	37,908	15,946
B. Long term Asset	8,986	2,078
1. Long term account receivable	6,000	0
2. Fixed assets	2,986	2,078
Tangible fixed assets	2,986	2,078
+ Original cost	3,266	2,341
+ Accumulated depreciation value	280	-263
Financial leasehold assets	0	0
Intangible fixed assets	0	0
Construction in progress and other long term asset	0	0
TOTAL ASSETS	172,642	152,303
LIABILITIES
Payable loans	140,017	125,023
Owner’s Equity	32,625	27,280
TOTAL LIABILITY AND EQUITY	172,642	152,303
PROFIT & LOSS STATEMENT IN 2009
1. Total Sales		348,057
2. Deduction item		0
3. Net revenue		348,057
4. Costs of goods sold		336,524
5. Gross profit		11,533
6. Financial income		562
7. Financial expenses		286
8. Selling expenses and Administrative overheads		8,382
9. Net operating profit		3,427
10. Other income		228
11. Other expenses		300
12. Other profit /(loss)		-72
13. Total accounting profit before tax		3,355
14. Current corporate income tax		629
15. Deferred corporate income tax		0
16. Interest from subsidiaries/related companies		0
17. Profit after tax		2,726
PROFIT & LOSS STATEMENT IN 2008
Total revenue		244,219
Deductions Items		0
1. Net revenue		244,219
2. Cost of goods sold and operation expense		242,635
3. Net income from business activities		1,584
Income from financial activities		0
Expenditure from financial activities		160
4. Net income from financial operation		-160
Irregular income		193
Irregular expenditure		157
5. Irregular Profit		36
6. Total pre-tax profit		1,460

PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality	Bad
Liquidity	N/A
Payment status	N/A
Financial Situation	Week
Development trend	Negative
Litigation data	Yes
Bankruptcy	Yes
Payment Methods	Through its bank account
Sale Methods	To contract
Public opinion	Limited

INTERPRETATION ON THE SCORES

VIETNAM INVESTMENT PROMOTING TECHNICS AND CONSTRUCTION JOINT STOCK COMPANY was established under the business registration No. 0103006547 granted by Hanoi Planning and Investment Department on 20th January 2005. The subject is running by Mr. Duong Nguyen Hung, obtaining 97% contributed capital. Currently, the subject is operating with chartered capital of VND 100 billion, which is remarkable compared to other companies in the same field.

The subject specializes in consulting, constructing of transportation projects, industrial plants. From 2007 to 2010, the subject was known as remarkable young contractors in industrial plants construction sector and the subject constructed many plants over Vietnam. In that well developed stage, its total labors increased to over 300 employees and it has a branch in Ho Chi Minh City, a branch in Da Nang City, 2 subsidiaries in Hanoi City and a subsidiary in Hai Phong City.

From 2011 up to now, the subject’s operation has become poor. It is unable to pay wage of workers, loan of staff and partners. The creditors got asset of the subject for clearing debts. The investors often complained about qualities of plants, which the subject constructed. The subject always delayed handing over the projects. Because of the predicament, the subject closed the branch in Da Nang and the subsidiary in Hai Phong. Currently, its total labors reduced from 300 to 40 people. Its future prospect is unpromising.

We visited the main transaction of the subject at 7th Floor - ATS Building - No. 252 Hoang Quoc Viet Street - Co Nhue Commune - Tu Liem District - Hanoi City. At its leased transaction office, a half area was vacated and in the other half has about 10 staff worked. The receptionist of AST Building said that, there are many creditors often met the subject for collecting debt and the subject’s BOD rarely went to this office.

In general, with current operation situation of the subject, caution is needed to all 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.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.