MIRA INFORM REPORT

Report Date :

16.03.2013

IDENTIFICATION DETAILS

Correct Name	THE RESIDENT REPRESENTATIVE OFFICE OF OLAM INTERNATIONAL LIMITED IN HO CHI MINH CITY
Registered Office :	Unit 1, 10^th Floor, AB Tower, No.76 Le Lai Str, Ben Thanh Ward, District 1, Ho Chi Minh City
Country :	Vietnam
Year of Establishments:	1998
Com. Reg. No.:	41-001815
Legal Form :	Representative office
Line of Business :	subject company specializing in cashew nuts, coffee and pepper
No. of Employees :	15

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 :	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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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 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
English Name		THE RESIDENT REPRESENTATIVE OFFICE OF OLAM INTERNATIONAL LIMITED IN HO CHI MINH CITY
Vietnamese Name		VPDD OLAM INTERNATIONAL LIMITED TAI TP. HCM
Type of Business		Representative office
Year Established		1998
Business Registration No.		41-001815
Issued date		14 Sep 2007
Date of latest adjustment (4^th)		04 Mar 2011
Place of Registration		Ho Chi Minh City Department of Industry and Trade
Tax code		0304663898
Total Employees		15
company ADDRESSES
Head Office
Address		Unit 1, 10^th Floor, AB Tower, No.76 Le Lai Str, Ben Thanh Ward, District 1, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3521 0740
Fax		(84-8) 3521 0771
DIRECTORS
1. NAME	Mr. RAJIV JAYANTITAL SHAH
Position	Legal Representative Person
ID Number/Passport	Z2073895
Nationality	Indian
2. NAME	Mr. NGUYEN HUU THUC
Position	Accountant
Nationality	Vietnamese
Email	thuc.nguyen@olamnet.com
BUSINESS NATURE AND ACTIVITIES
The subject is representative office of a Singapore company specializing in cashew nuts, coffee and pepper. Main function of the subject is trade promotion between parent company and companies in Vietnam.
IMPORT & EXPORT ACTIVITIES
IMPORT:
Note: Currently, the subject does not import
EXPORT:
Note: Currently, the subject does not export
BANKERS
1. HSBC BANK (VIET NAM) LTD
Address		Metropolitan Building, No. 235 Dong Khoi Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Telephone		(84-8) 38292288
Fax		(84-8) 38230530
2. SHINHAN BANK VIET NAM LIMITED
Address		100 Nguyen Thi Minh Khai Str, Ward 6 , District 3, Ho Chi Minh City, Vietnam
Telephone		(84-8) 3829 1581
Fax		(84-8) 3821 1648
SHAREHOLDERS
NAME		OLAM INTERNATIONAL LIMITED
Country		Singapore
Address		50 Raffles Place, #32-01 Singapore Land Tower, Singapore (048623)
Tel		65 3394100
Fax		65 3399755
FINANCIAL DATA
The subject is a representative office so it does have financial statement.
PAYMENT HISTORY & PERFORMANCE EXPERIENCES
Trade Morality			Fair
Liquidity			N/A
Payment status			N/A
Financial Situation			Below Average
Development trend			N/A
Litigation data			No Record
Bankruptcy			No Record
Payment Methods			Direct payment or through its corresponding bank
Sale Methods			Other
INTERPRETATION ON THE SCORES
The subject is representative office of OLAM INTERNATIONAL LIMITED in Ho Chi Minh City. Its parent company is in Singapore. Its office is at “Unit 1, 10^th Floor, AB Tower, No.76 Le Lai Str, District 1, Ho Chi Minh City, Vietnam”. This place is also head office of OLAM VIETNAM LIMITED The subject specializes in cashew nuts, coffee and pepper. Registered as a representative office, the subject does not operate for profit purpose but to promote trade between parent company and other companies in Vietnam. It doesn’t have import - export activity. Leader of this representative office is Mr. RAJIV JAYANTITAL SHAH. In general, the subject is operating normally. Its operation depends on demand, directions and it is governed by parent company. The subject is a representative office so its management capability is limited. Its financial capacity is below average. The subject has capacity to meet small financial commitments.

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.54.16
UK Pound	1	Rs.81.74
Euro	1	Rs.70.50

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%)

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