MIRA INFORM REPORT

Report Date :

11.03.2013

IDENTIFICATION DETAILS

Name :	TRAN HON MANUFACTURING TRADING IMPORT EXPORT COMPANY LIMITED
Registered Office :	No. 94, Go Cong Str, Ward 13, 5 District, Ho Chi Minh City
Country :	Viet Nam
Date of Incorporation :	2005
Com. Reg. No.:	0303887736
Legal Form :	Limited liability company
Line of Business :	Wholesale of waste and scrap and other products
No. of Employees :	15

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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 in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep 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 has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

Source : CIA

SUBJECT IDENTIFICATION & LEGAL FORM

Current legal status
English Name	TRAN HON MANUFACTURING TRADING IMPORT EXPORT COMPANY LIMITED
Vietnamese Name	CONG TY TNHH SAN XUAT – THUONG MAI – XUAT NHAP KHAU TRAN HON
Trade name	TRAN HON MANUFACTURING TRADING IMPORT EXPORT CO.,LTD
Type of Business	Limited liability company
Year Established	2005
Business Registration No.	0303887736
Date of Registration	05 Apr 2012 (02^nd adjustment)
Place of Registration	Business Registration Office - Planning and Investment Department of Ho Chi Minh City
Chartered capital	VND 2,000,000,000
Status	Unlisted
Tax code	0303887736
Total Employees	15

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Business Registration No: 4102031687 (Issued on 14 July 2005) Changed to: 0303887736

05 Apr 2012

ADDRESSES

Head Office

Address

No. 94, Go Cong Str, Ward 13, 5 District, Ho Chi Minh City, Vietnam

Telephone

(84-8) 3855 2200 / 3855 0915 - 3611 4467

Fax

(84-8) 3855 0915 / 3855 2200

Email

tranhoncoltd@vnn.vn

Website

http://www.tranhoncoltd.webs.com/

Branch in Ho Chi Minh

Address

No. 152/12, Ho Ngoc Lam Street, An Lac ward, Binh Tan District, Ho Chi Minh City, Vietnam

Branch in Ho Chi Minh

Address

No. 1A, Phan Van Khoe street, Ward 13, 5^th District, Ho Chi Minh City, Vietnam

DIRECTORS

1. NAME

Mr. TRAN MINH HON

Position

Director

Date of Birth

07 Oct 1957

ID Number/Passport

024353912

ID Issue Date

06 Jun 2005

ID Issue Place

Police in Hochiminh City

Resident

172/33 Tran Phu, Ward 9, 5^th District, Ho Chi Minh City, Vietnam

Nationality

Vietnamese

2. NAME

Ms. TRAN MINH THU

Position

Deputy Director

ID Number/Passport

024353913

Resident

172/33 Tran Phu Str, Ward 9, 5^th District, Ho Chi Minh City, Vietnam

Nationality

Vietnamese

Tel/Mobile phone

+84 903 954 795

BUSINESS NATURE AND ACTIVITIES

Wholesale of waste and scrap and other products n.e.c
Manufacture of other chemical products n.e.c
Wholesale of textiles, clothing, footwear
Other professional, scientific and technical activities n.e.c
Wholesale on a fee or contract basis

IMPORT & EXPORT ACTIVITIES

IMPORT:

· Market

The subject imports chemical from China, Singapore, Taiwan, Australia, Malaysia, Indonesia, Italy

EXPORT:

· Market

N/A

BANKERS

1. VIET NAM BANK FOR AGRICULTURE AND RURAL DEVELOPME BINH TAN BRANCH

Address

No. 676 Kinh Duong Vuong, An Lac Ward, Binh Tan District, Ho Chi Minh City, Vietnam

Telephone

(84-8) 3751 0735

Fax

(84-8) 3751 0733

SWIFT Code

VBAAVNVX

2. SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK

Address

No.2, Road 3 Phu Lam market, Ward 13, 6^th District, Ho Chi Minh City, Vietnam

Telephone

(84-8) 37515849

Fax

(84-8) 37515849

SWIFT Code

SGTTVNVX

SHAREHOLDERS

1. NAME

Mr. TRAN MINH HON

Position

Director

Date of Birth

07 Oct 1957

ID Number/Passport

024353912

Issued on

06 Jun 2005

Issued Place

Police in Hochiminh City

Resident

172/33 Tran Phu, Ward 9, 5^th District, Ho Chi Minh City, Vietnam

Nationality

Vietnamese

Value of shares

VND 1,500,000,000

Percentage

75%

2. NAME

Ms. TRAN MINH THU

Position

Deputy Director

ID Number/Passport

024353913

Resident

172/33 Tran Phu Str, Ward 9, 5^th District, Ho Chi Minh City, Vietnam

Mobile phone

+84 903 954 795

Nationality

Vietnamese

Value of shares

VND 250,000,000

Percentage

12.5%

3. NAME

Ms. TRAN NHU THUY

ID Number/Passport

024354391

Resident

172/33 Tran Phu Str, Ward 9, 5^th District, Ho Chi Minh City, Vietnam

Mobile phone

+84 983 838 250

Nationality

Vietnamese

Value of shares

VND 250,000,000

Percentage

12.5%

FINANCIAL DATA: N/A

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality

Fair

Liquidity

N/A

Payment status

N/A

Financial Situation

N/A

Development trend

Positive

Litigation data

No Record

Bankruptcy

No Record

Payment Methods

Direct payment or through its corresponding bank. Foreign remittance by letter of credit (L/C, T/T)

Sale Methods

Retailer and Wholesaler

Public opinion

Normal

INTERPRETATION ON THE SCORES

The subject was incorporated under the business registration No. 4102031687, issued by Business Registration Office – Planning and Investment Department of Ho chi Minh city on 17 Jul 2005. Recently, the company Business Registration number has been merged into tax code (0303887736) and its chartered capital has been VND 2 billion. The principle activities of the company are import and trade in chemicals.

The subject is a family-run business. Subject’s director has a good experience and its management capacity is fairly good. Competitiveness of the subject is at average. The subject imports product from many countries, especially from China. Subject's products are sold in domestic market. Business activities of the subject are busy but it is now facing with many competitors in local market.

Following is import / export import tax of the subject in the latest 30 days:

Customs code	Registration Date	Punishment (unit: VND)	VAT on imports(unit: VND)
C02I02	20/12/2012	356,587
C02I02	22/12/2012	153,411
A02B	22/02/2013	0	9,497,568

We had an interview with Ms. Thu – deputy director of subject and received friendly attitude from her. According to her, Subject’s market share developed.

Premises and facilities of the subject are normal. The subject stores locating in the chemical trading zone (Kim Bien market) of Ho Chi Minh city, which are advantages of the subject in trading .

In summary, the company has guarantees for average debt repayment. It is expected that company’s income and profit would keep optimistic in the next couple of years; therefore, the rating outlook for the company is at average level.

APPENDIX

INDUSTRY DATA
Industry code	Growth speed by price compared with 1994 (%)		Total enterprises 2010		Total employees 2011 (Thous.pers.)	Annual average capital of enterprises 2010 (billion dongs)
	2011	2010
Agriculture, Forestry and Fishing	4.00	2.78	8,887		24,362.9	95,227
Industry and Construction	5.53	7.70	95,217		10,718.9	3,641,376
Trade and Services	6.69	7.52	187,195		15,270.2	6,957,082
ECONOMIC INDICATORS
			2011	2010		2009
Population (Million person)			87.84	86.93		86.02
Gross Domestic Products (USD billion)			119	102.2		91
GDP Growth (%)			5.89	6.78		5.32
GDP Per Capita (USD/person/year)			1,300	1,160		1,080
Inflation (% Change in Composite CPI)			18.58	11.75		6.88
State Budget Deficit compared with GDP (%)			4.9	5.8		6.9
SERVICE TRADE PERFORMANCE
Billion USD			2011	2010		2009
Exports			96.3	72.2		57.1
Imports			105.8	84.8		69.9
Trade Balance			-9.5	-12.6		-12.8

Source: General Statistics Office

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.40
UK Pound	1	Rs.81.56
Euro	1	Rs.71.23

INFORMATION DETAILS

Report Prepared by :

PDT

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.