MIRA INFORM REPORT

Report Date :

10.05.2013

IDENTIFICATION DETAILS

Name :	VIET NAM AGRO-PESTICIDE JOINT STOCK COMPANY
Registered Office :	No.17 Lane 71, Do Quang Street, Trung Hoa Ward, Cau Giay District, Ha Noi City
Country :	Vietnam
Date of Incorporation :	2003
Com. Reg. No.:	0101431563
Legal Form :	Joint stock company
Line of Business :	The subject is specialized in manufacturing, packaging and trading pesticides/ agricultural chemicals
No. of Employees :	0

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 – 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	VIET NAM AGRO-PESTICIDE JOINT STOCK COMPANY
Vietnamese Name	CONG TY CO PHAN NONG DUOC VIET NAM
Short name	VN – APC., JSC
Type of Business	Joint stock company
Year Established	2003
Business Registration No.	0101431563
Date of Registration	29 Aug 2011
Place of Registration	Hanoi City Department of Business Registration
Chartered capital	VND 21,600,000,000
Status	Unlisted
Tax code	0101431563
Total Employees	70

Historical Identification & Legal form

List	Changed Items	Date of changes
1	Subject has got former Business Registration No: 0103003248 Changed to: 0101431563	29 Aug 2011
2	Subject has got former Address: No.17, Lane 61/71 Tran Duy Hung Street, Trung Hoa Ward, Cau Giay District, Ha Noi City, Vietnam Changed to: No.17, Lane 71, Do Quang Street, Trung Hoa Ward, Cau Giay District, Ha Noi City, Vietnam	2011
3	Subject has got former Board Of Director: Former Branch Manager: Mr. NGUYEN VAN BAY Changed to: Mr. NGUYEN VAN CUONG	2011
4	Subject has got former Address: No.701 Giai Phong Str., Hoang Mai District, Ha Noi City, Vietnam Changed to : No.17, Lane 61/71 Tran Duy Hung Street, Trung Hoa Ward, Cau Giay District, Ha Noi City, Vietnam	2009

ADDRESSES

Head Office
Address	No.17 Lane 71, Do Quang Street, Trung Hoa Ward, Cau Giay District, Ha Noi City, Vietnam
Telephone	(84-4) 3556 8689/ 3556 8690/3556 8691/3556 8692
Fax	(84-4) 3556 8693
Email	agropesticide@yahoo.com
Note: The correct address of the subject is as above.
Branch in Ho Chi Minh
Address	No.26 Road 47, Street Quarter 8, Tan Tao Ward, Binh Tan District, Ho Chi Minh City, Vietnam
Telephone	(84-8) 3537 8849
Workshop in Long An
Address	Duc Hoa Industrial Area, Duc Hoa District, Long An Province, Vietnam
Workshop in Ho Chi Minh
Address	Le Minh Xuan Industrial Area, Binh Chanh District, Ho Chi Minh City, Vietnam
Note: Besides, the subject has distribution offices in Lam Dong and Tay nguyen Provinces

DIRECTORS

1. NAME	Mr. NGUYEN VAN SON
Position	Director
Date of Birth	15 Aug 1952
ID Number/Passport	013055307
ID Issue Date	15 Mar 2008
ID Issue Place	Hanoi Police Station
Resident	No.701 Giai Phong Str., Hoang Mai District, Ha Noi City, Vietnam
Current resident	No.701 Giai Phong Str., Hoang Mai District, Ha Noi City, Vietnam
Nationality	Vietnamese
Tel/Mobile phone	+84 983 359 377
2. NAME	Mr. NGUYEN VAN CUONG
Position	Branch Manager
ID Number/Passport	030949050
Nationality	Vietnamese
Tel/Mobile phone	+84983393262

BUSINESS NATURE AND ACTIVITIES

The subject is specialized in manufacturing, packaging and trading pesticides/ agricultural chemicals

IMPORT & EXPORT ACTIVITIES

IMPORT:
Types of products	Material/ chemicals
Market	Hong Kong, India, China
Mode of payment	TT/LC
EXPORT:
Notes: + Currently, the subject does not export. +The subject plans to export products to Cambodia

BANKERS

1. MILITARY COMMERCIAL JOINT STOCK BANK
Address	No. 28A Dien Bien Phu Str., Ba Dinh District, Ha Noi City, Vietnam
Telephone	(84-4) 38232883
Fax	(84-4) 38233335
2. AGRICULTURE AND RURAL DEVELOPMENT OF VIETNAM
Address	51 Kim Ma, Ba Dinh District, Ha Noi City, Vietnam
Telephone	(84-4) 35142567
Fax	(84-4) 35142043

SHAREHOLDERS

1. NAME	Mr. NGUYEN VAN SON
Position	Director
Date of Birth	15 Aug 1952
ID Number/Passport	013055307
Issued on	15 Mar 2008
Issued Place	Hanoi Police Station
Resident	No.701 Giai Phong Str., Hoang Mai District, Ha Noi City, Vietnam
Current Resident	No.701 Giai Phong Str., Hoang Mai District, Ha Noi City, Vietnam
Mobile phone	+84 983 359 377
Nationality	Vietnamese
Number of Shares	51,840
Value of shares	VND 5,184,000,000
Percentage	24%
2. NAME	Ms. NGUYEN THI TAM
ID Number/Passport	162937661
Resident	Area 5 Con Town, Hai Hau District, Nam Dinh Province, Vietnam
Nationality	Vietnamese
Number of Shares	23,760
Value of shares	VND 2,376,000,000
Percentage	11%
3. NAME	Mr. DO DUY THOM
ID Number/Passport	012149576
Resident	No.123 Group 31-Khuong Thuong Ward, Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
Number of Shares	118,800
Value of shares	VND 11,880,000,000
Percentage	55%
4. NAME	Mr. TRAN TRUNG THANH
ID Number/Passport	011613530
Resident	No. 8 Alley 1/33, Lane 1, Kham Thien Str., Dong Da District, Ha Noi City, Vietnam
Nationality	Vietnamese
Number of Shares	21,600
Value of shares	VND 2,160,000,000
Percentage	10%

FINANCIAL DATA

N/A

The subject’s financial statement is not available in our source.

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

Trade Morality	Good
Liquidity	N/A
Payment status	N/A
Financial Situation	Average
Development trend	Stable
Litigation data	No Record
Bankruptcy	No Record
Payment Methods	TT/LC Via Banks
Sale Methods	Retailer and Wholesaler
Public opinion	Good

INTERPRETATION ON THE SCORES

The subject - VIET NAM AGRO-PESTICIDE JOINT STOCK COMPANY was established in the end of 2003 under the original business registration number 0103003248. At the first time, it operated with about 4 people, sold 2 product branches and worked in an office of 12 m². After 9 years of operation, the subject has enlarged the scale, market and business activities with about 70 staff & employees, 43 product brands being traded. Currently it has the Business Registration No. 0101431563 –same as the tax code and the chartered capital is up to VND 21,600,000,000.

The subject’s head office is at No.17 Lane 71, Do Quang Street, Trung Hoa Ward, Cau Giay District, Ha Noi City, Vietnam. Besides, it also has a branch in Ho Chi Minh city and a few distribution offices in Lam Dong and Tay nguyen Provinces. The subject is specialized in manufacturing, packaging and trading pesticides/ agricultural chemicals. For the operation, the subject often imports the material and chemicals from Hong Kong, China and India markets. Its finished products are distributed domestically to local distributors or retailed shops. Some typical products are Vinarius 500WP, Bemuro Super 750WP, Linacin 40SL, Sachray 200WP, Goltoc 250EC, Sacophos 550EC…

In our interview with Ms. Thanh- Chief accountant, she revealed that the subject distribution channel covered all provinces in the north of Vietnam and almost provinces in the center and the South of Vietnam. In short time, it would soon export products to Cambodia where it planned to set up a representative office. All the current business was good.

Thought the subject’s financial data in our source, the subject, in our view, has medium scale. It has long term operation in the industry, the market and business was stable. It can meet small and normal transactions.

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)
	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.54.24
UK Pound	1	Rs.84.29
Euro	1	Rs.71.36

INFORMATION DETAILS

Report Prepared by :

SDA

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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