MIRA INFORM REPORT

Report Date :

21.06.2013

IDENTIFICATION DETAILS

Name :	VAN XUAN INDUSTRIES COMPANY LIMITED

Registered Office :	No. 171-175 Ham Nghi Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City

Country :	Vietnam

Date of Incorporation :	12.01.2011

Com. Reg. No.:	0310577326

Legal Form :	Limited Liability Company

Line of Business :	Wholesaler of metals and metal ores

No. of Employees :	20

RATING & COMMENTS

MIRA’s Rating :

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 31^st 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Vietnam

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		VAN XUAN INDUSTRIES COMPANY LIMITED
Vietnamese Name		CONG TY TNHH CONG NGHIEP VAN XUAN
Short name		VAN XUAN INDUSTRIES CO., LTD
Type of Business		Limited liability company
Year Established		2011
Business Registration No.		0310577326
Date of Registration		12 Jan 2011
Date of the latest adjustment (8^th)		25 Mar 2013
Place of Registration		Business registration office of Planning and Investment Department of Hochiminh City
Chartered capital		VND 18,000,000,000
Tax code		0310577326
Total Employees		20

Historical Identification & Legal form

List

Changed Items

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

Changed to: VND 18,000,000,000

Subject has got former Address: Room 605-606, Floor 6, Indochina Park Tower, No., Nguyen Dinh Chieu Street, Da Kao Ward, District 1, Ho Chi Minh City, Vietnam

Changed to: No. 171-175 Ham Nghi Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Vietnam

Company ADDRESSES

Head Office
Address		No. 171-175 Ham Nghi Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Vietnam
Telephone		(84-8) 6255 1166 - 2221 6306
Fax		(84-8) 6255 1188 - 6258 6642

DIRECTORS

1. NAME		Mr. NGUYEN TIEN VU
Position		Director
Date of Birth		26 Oct 1979
ID Number/Passport		024958549
ID Issue Date		05 Aug 2008
ID Issue Place		Police Station Of Ho Chi Minh City
Resident		343/55 Su Van Hanh Street, Ward 12, District 10, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Qualification		Management

2. NAME		Mr. NGUYEN TRUNG THANH
Position		Deputy Director
ID Number/Passport		025376715
ID Issue Place		Police Station of Ho Chi Minh City
Current resident		No. 49 Road 42, Quarter 8, Hiep Binh Chanh Ward, Thu Duc District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Qualification		Management

3. NAME		Mr. TRAN TRUNG DUNG
Position		Deputy Director
ID Number/Passport		271194855
Resident		Quarter 1 Ngai Giao Town, Chau Duc District, Ba Ria-Vung Tau Province, Vietnam
Nationality		Vietnamese
Qualification		Management

BUSINESS NATURE AND ACTIVITIES

The subject registers and operates in collecting and exporting kinds of rubbers.
Subject registered in:
Wholesale of metals and metal ores
Wholesale of solid, liquid and gaseous fuels and related products
Wholesale of construction materials, installation supplies
Management consultancy activities
Construction of roads and railways
Other transportation support activities
Restaurants and mobile food service activities
Short-term accommodation activities
Tour operator activities
Wholesale on a fee or contract basis
Construction of other civil engineering projects
Freight transport by road
Manufacture of wiring devices
Wholesale of other machinery and equipment n.e.c
Wholesale of rice
Wholesale of food
Wholesale of waste and scrap and other products n.e.c
Growing of rubber tree
Manufacture of rubber tires and tubes; retreading and rebuilding of rubber tires

IMPORT & EXPORT ACTIVITIES

IMPORT:
Note: Currently, the subject does not import

EXPORT:
· Types of products		Rubber
· Market		Korea, China, Malaysia, Australia...


BANKERS

DONG A COMMERCIAL JOINT STOCK BANK DISTRICT 1 BRANCH
Address		No.56-58 Nguyen Cong Tru Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3821 5005
Fax		(84-8) 3821 5006

SHAREHOLDERS

1. NAME		Mr. NGUYEN TRUNG THANH
Position		Deputy Director
ID Number/Passport		025376715
Issued Place		Police Station of Ho Chi Minh City
Current Resident		No. 49 Road 42, Quarter 8, Hiep Binh Chanh Ward, Thu Duc District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Value of shares		VND 3,600,000,000
Percentage		20%

2. NAME		Mr. TRAN TRUNG DUNG
Position		Deputy Director
ID Number/Passport		271194855
Resident		Quarter 1 Ngai Giao Town, Chau Duc District, Ba Ria-Vung Tau Province, Vietnam
Nationality		Vietnamese
Value of shares		VND 3,600,000,000
Percentage		20%

3. NAME		Mr. NGUYEN QUOC VIET
ID Number/Passport		022508401
Issued Place		Police Station of Ho Chi Minh City
Resident		14 Le Lai Street, Ward 12, Tan Binh District, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Value of shares		VND 1,800,000,000
Percentage		10%

4. NAME		Mr. NGUYEN TIEN VU
Position		Director
Date of Birth		26 Oct 1979
ID Number/Passport		024958549
Issued on		05 Aug 2008
Issued Place		Police Station Of Ho Chi Minh City
Resident		343/55 Su Van Hanh Street, Ward 12, District 10, Ho Chi Minh City, Vietnam
Nationality		Vietnamese
Value of shares		VND 3,600,000,000
Percentage		20%

5. NAME		Mr. VU TRONG DAN
Date of Birth		05 Jan 1974
ID Number/Passport		233067908
Issued on		03 May 2000
Issued Place		Kom Tum Police Station
Current Resident		No. 01D Tran Nhan Tong Str., Thang Loi Ward, Kon Tum City, Kon Tum Province, Vietnam
Nationality		Vietnamese
Value of shares		VND 5,400,000,000
Percentage		30%

FINANCIAL DATA

Financial data of subject is not available although we tried to collect!

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality		Normal
Liquidity		N/A
Payment status		N/A
Financial Situation		N/A
Development trend		Stable
Litigation data		No Record
Bankruptcy		No Record
Payment Methods		Through the banks
Sale Methods		Wholesaler
Public opinion		Limited

INTERPRETATION ON THE SCORES

VAN XUAN INDUSTRIES COMPANY LIMITED was established in the beginning of year 2011 under business registration No. 0310577326 with chartered capital VND 6 billion. Originally, head office of the subject was located at Room 605-606, Floor 6, Indochina Park Tower, No.4 Nguyen Dinh Chieu Street, Da Kao Ward, District 1, Ho Chi Minh City. Recently, subject has increased capital up to VND 18 billion and moved head office to current address.

The subject is specializing in exporting the kinds of rubbers. It mainly collects rubbers from domestic market and then exports to foreign partners such as Korea, China, Malaysia, Australia… Subject is operating fairly effective with about 20 staff.

Because of being a young company, it is trying hard to stabilize domestic and foreign market shares. In overview, the subject is a small and young company in this field. Management capability and facilities are normal. In this time, in our opinion, subject has capacity to meet small transaction only.

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.59.70
UK Pound	1	Rs.92.22
Euro	1	Rs.79.19

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.

MIRA INFORM REPORT

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status

Company ADDRESSES

DIRECTORS

BUSINESS NATURE AND ACTIVITIES

IMPORT & EXPORT ACTIVITIES

BANKERS

SHAREHOLDERS

FINANCIAL DATA

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

INTERPRETATION ON THE SCORES

APPENDIX

Unit