MIRA INFORM REPORT

 

 

Report Date :

16.09.2013

 

IDENTIFICATION DETAILS

 

Name :

PROVIMI VIETNAM

 

 

Registered Office :

No.238 High way 1A - Tan Hiep Ward, Bien Hoa City, Dong Nai Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2009

 

 

Year of Establishment :

1996

 

 

Legal Form :

Limited liability company

 

 

Line of Business :

Manufacturing and supplying PREMIX and additives for animal feeds

 

 

No. of Employees :

140

 

 

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 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

 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 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 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

 


 

 

COMPANY IDENTIFICATION & LEGAL FORM

 

Current legal status

English Name

 

PROVIMI VIETNAM

Vietnamese Name

 

CONG TY TNHH MOT THANH VIEN PROVIMI

Type of Business

 

Limited liability company

Year Established

 

1996

Investment Certificate No

 

471043000137

Date Of Issuance

 

30 Jun 2008

Place of Issuance

 

People's Committee Of Dong Nai Province

Registered Investment Capital

 

USD 1,200,000

Chartered capital

 

USD 750,000

Status

 

Unlisted

Tax code

 

3600233499

Total Employees

 

140

Size

 

Medium

 

Historical Identification & Legal form

 

List

Changed Items

Date of changes

1

Subject has got former Board of Director: Mr. HENDRIK BRAND Changed to: Mr. FILIPPI JEAN - CHRISTOPHE ANDRE FRANCOIS

Mar 2013

2

Subject has got former Registered English Name: NUTRIWAY VIETNAM CO., LTD

Changed to: PROVIMI VIETNAM

25 Mar 2010

3

Subject has got former Registered Vietnamese Name: CONG TY TNHH MOT THANH VIEN NUTRIWAY

Changed to: CONG TY TNHH MOT THANH VIEN PROVIMI

25 Mar 2010

4

Subject has got former Registered Vietnamese Name: XI NGHIEP NUTRIWAY VIETNAM

Changed to: CONG TY TNHH MOT THANH VIEN NUTRIWAY VIETNAM

30 Jun 2008

5

Subject has got former Investment Certificate No: 1616/GP Dated June 29, 1996

Changed to: 471043000137

30 Jun 2008

6

Subject has got former Chartered capital: 500,000 USD

Changed to: 700,000 USD

N/A

7

Subject has got former Address: No.69 Ba Trieu Str - Hai Ba Trung District - Ha Noi City - Vietnam

Changed to: 3rd Floor - No. 97 Tran Quoc Toan Str. - Hoan Kiem District - Ha Noi City - Vietnam

N/A

8

Subject has got former Chartered capital: 700,000 USD

Changed to: 750,000 USD

N/A

 

 

ADDRESSES

 

Head Office

Address

 

No.238 High way 1A - Tan Hiep Ward, Bien Hoa City, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3999 001

Fax

 

(84-61) 3884 304

Email

 

contact@vn.provimi.com

Website

 

http://www.provimi-vn.com

 

Workshop Address

Address

 

Tien Son Industrial Zone Hoang Son commune, Tien Du District, Bac Ninh Province, Vietnam

Telephone

 

(84-241) 3 714 176

 

Representative office in Ho Chi Minh

Address

 

4th Floor Coteccons Building, No. 236/6 Dien Bien Phu Str., 17 Ward, Binh Thanh District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 35126128

 

Branch in Ha Noi

Address

 

3rd Floor - No. 97 Tran Quoc Toan Str., Hoan Kiem District, Ha Noi City, Vietnam

Telephone

 

(84-4) 39 428 443

Fax

 

(84-4) 39 428 431

Land-use Right

 

Leased

Manager

 

Ms. BUI THI BICH THUY

Note:  Branch in Hanoi City is responsible for trading activities while production operation is carried out in factory in Dong Nai Province.

 

 

DIRECTORS

 

1. NAME

 

Mr. FILIPPI JEAN - CHRISTOPHE ANDRE FRANCOIS

Position

 

General Director

ID Number/Passport

 

11CV60656

Nationality

 

French

 

2. NAME

 

Ms. NGUYEN THI HUONG LAN

Position

 

Chief Accountant

Nationality

 

Vietnamese

 

3. NAME

 

Ms. TRAN BACH YEN

Position

 

Human Resource Manager

Nationality

 

Vietnamese

Email

 

recruitment@vn.provimi.com

 

 

BUSINESS NATURE AND ACTIVITIES

 

Manufacturing and supplying PREMIX and additives for animal feeds

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

·         Types of products

 

Materials

·         Market

 

US, Netherlands, China, Singapore

·         Ratio

 

N/A

·         Mode of payment

 

T/T; L/C.

 

EXPORT:

·         Market

 

Netherlands, Philippines, Malaysia, Korea and Myanmar

·         Mode of payment

 

T/T; L/C

Note: Products are mainly consumed domestically.

 

 

BANKERS

 

1. JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM DONG NAI BRANCH

Address

 

No 77C Hung Dao Vuong, Trung Dung Ward, Bien Hoa City, Dong Nai Province, Vietnam

Telephone

 

(84-61) 3823666

Fax

 

(84-61) 3824191

 

2. NATETIS BANK

Address

 

No. 11 Me Linh Square, 1 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38 222 830

Fax

 

(84-8) 38 299 128

 

3. HSBC VIETNAM LTD

Address

 

6 Floor, No. 235 Dong Khoi Str., Ben Nghe ward, 1 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38292288

 

 

SHAREHOLDERS

 

NAME

 

KEYWORTH ASSOCIATES LIMITED

Address

 

Veerlaan 17-23 NL - 3072 AN Rotterdam - Postbus 59009 NL - 3008 PA Rotterdam, Netherlands

Percentage

 

100%

Note: KEYWORTH ASSOCIATES LIMITED is a member of PROVIMI GROUP

 

 

FINANCIAL DATA

Despite trying our best, the latest financial data is currently not available in our source.

BALANCE SHEET

Unit: One VND

Balance sheet date

31/12/2009

31/12/2008

Number of weeks

52

52

ASSETS

A – CURRENT ASSETS

150,448,226,450

84,918,786,246

I. Cash and cash equivalents

64,375,552,734

13,266,177,130

1. Cash

9,440,252,734

13,266,177,130

2. Cash equivalents

54,935,300,000

 

II. Short-term investments

 

 

1. Short-term investments

 

 

2. Provisions for devaluation of short-term investments

 

 

III. Accounts receivable

58,963,995,228

36,088,445,796

1. Receivable from customers

55,271,225,223

30,338,360,922

2. Prepayments to suppliers

 

 

3. Inter-company receivable

 

 

4. Receivable according to the progress of construction

 

 

5. Other receivable

4,585,700,720

5,964,789,089

6. Provisions for bad debts

-892,930,715

-214,704,215

IV. Inventories

25,512,621,251

34,472,993,990

1. Inventories

28,431,900,717

37,555,706,621

2. Provisions for devaluation of inventories

-2,919,279,466

-3,082,712,631

V. Other Current Assets

1,596,057,237

1,091,169,330

1. Short-term prepaid expenses

488,588,494

188,955,568

2. VAT to be deducted

26,177,725

 

3. Taxes and other accounts receivable from the State

 

7,646,973

4. Other current assets

1,081,291,018

894,566,789

B. LONG-TERM ASSETS

15,095,497,446

11,685,793,427

I. Long term accounts receivable

 

 

1. Long term account receivable from customers

 

 

2. Working capital in affiliates

 

 

3. Long-term inter-company receivable

 

 

4. Other long-term receivable

 

 

5. Provisions for bad debts from customers

 

 

II. Fixed assets

11,492,400,558

10,623,017,696

1. Tangible assets

11,272,558,674

10,346,768,873

- Historical costs

30,193,501,300

26,481,965,189

- Accumulated depreciation

-18,920,942,626

-16,135,196,316

2. Financial leasehold assets

 

 

- Historical costs

 

 

- Accumulated depreciation

 

 

3. Intangible assets

219,841,884

276,248,823

- Initial costs

1,063,911,633

1,018,385,433

- Accumulated amortization

-844,069,749

-742,136,610

4. Construction-in-progress

 

 

III. Investment property

 

 

Historical costs

 

 

Accumulated depreciation

 

 

IV. Long-term investments

 

 

1. Investments in affiliates

 

 

2. Investments in business concerns and joint ventures

 

 

3. Other long-term investments

 

 

4. Provisions for devaluation of long-term investments

 

 

V. Other long-term assets

3,603,096,888

1,062,775,731

1. Long-term prepaid expenses

 

 

2. Deferred income tax assets

3,603,096,888

1,062,775,731

3. Other long-term assets

 

 

VI. Goodwill

 

 

1. Goodwill

 

 

TOTAL ASSETS

165,543,723,896

96,604,579,673

 

LIABILITIES

A- LIABILITIES

96,473,341,981

18,832,654,212

I. Current liabilities

96,473,341,981

18,832,654,212

1. Short-term debts and loans

 

 

2. Payable to suppliers

53,094,659,213

11,472,880,887

3. Advances from customers

 

 

4. Taxes and other obligations to the State Budget

13,889,329,100

2,966,789,503

5. Payable to employees

 

 

6. Accrued expenses

13,262,522,270

3,840,010,852

7. Inter-company payable

 

 

8. Payable according to the progress of construction contracts

 

 

9. Other payable

16,226,831,398

552,972,970

10. Provisions for short-term accounts payable

 

 

II. Long-Term Liabilities

 

 

1. Long-term accounts payable to suppliers

 

 

2. Long-term inter-company payable

 

 

3. Other long-term payable

 

 

4. Long-term debts and loans

 

 

5. Deferred income tax payable

 

 

6. Provisions for unemployment allowances

 

 

7. Provisions for long-term accounts payable

 

 

8. Unearned Revenue

 

 

9. Science and technology development fund

 

 

B- OWNER’S EQUITY

69,070,381,915

77,771,925,461

I. OWNER’S EQUITY

69,070,381,915

77,771,925,461

1. Capital

9,962,866,185

9,962,866,185

2. Share premiums

 

 

3. Other sources of capital

 

 

4. Treasury stocks

 

 

5. Differences on asset revaluation

 

 

6. Foreign exchange differences

 

 

7. Business promotion fund

 

 

8. Financial reserved fund

 

 

9. Other funds

 

 

10. Retained earnings

59,107,515,730

67,809,059,276

11. Construction investment fund

 

 

12. Business arrangement supporting fund

 

 

II. Other sources and funds

 

 

1. Bonus and welfare funds

 

 

2. Sources of expenditure

 

 

3. Fund to form fixed assets

 

 

MINORITY’S INTEREST

 

 

TOTAL LIABILITIES AND OWNER’S EQUITY

165,543,723,896

96,604,579,673

 

 

PROFIT & LOSS STATEMENT

 

Description

FY2009

1. Total Sales

382,389,408,737

2. Deduction item

1,158,431,011

3. Net revenue

381,230,977,726

4. Costs of goods sold

263,115,332,469

5. Gross profit

118,115,645,257

6. Financial income

525,974,883

7. Financial expenses

1,239,496,440

- In which: Loan interest expenses

0

8. Selling expenses

28,702,746,576

9. Administrative overheads

20,709,035,473

10. Net operating profit

67,990,341,651

11. Other income

638,157,393

12. Other expenses

93,286,528

13. Other profit /(loss)

544,870,865

14. Total accounting profit before tax

68,535,212,516

15. Current corporate income tax

13,513,461,179

16. Deferred corporate income tax

2,540,321,157

17. Interest from subsidiaries/related companies

0

18. Profit after tax

52,481,430,180

 

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2009

FY2008

Average Industry

Current liquidity ratio

1.56

4.51

1.47

Quick liquidity ratio

1.30

2.68

0.70

Inventory circle

8.77

-

8.31

Average receive period

56.45

-

28.57

Utilizing asset performance

2.30

-

2.64

Liability by total assets

58.28

19.49

58.07

Liability by owner's equity

139.67

24.22

182.19

Ebit / Total assets (ROA)

41.40

-

10.02

Ebit / Owner's equity (ROE)

99.23

-

25.93

Ebit / Total revenue (NPM)

17.92

-

3.82

Gross profit / Total revenue (GPM)

30.89

-

8.54

Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Fair

Liquidity

 

Medium

Payment status

 

Average

Financial Situation

 

Above Average

Development trend

 

Positive

Litigation data

 

No Record

Bankruptcy

 

No Record

Payment Methods

 

T/T; L/C

Sale Methods

 

To contracts

Public opinion

 

Well-known

 

 

 

INTERPRETATION ON THE SCORES

 

The subject was established as 100% foreign invested company under the former investment certificate No. 1616/GP dated on 29th June 1996. On 30th June 2008, the investment certificate number was changed to 471043000137. Currently the subject is operating with normal invested capital of USD 1,200,000 and chartered capital of USD 750,000.

The subject is manufacturer and supplier of PREMIX and additives for feed-mills to Vietnam market and foreign market. It also provides a high level of technical service to its customers in a wide range of activities. Its products exports to Asian countries and some countries in EU. At present situation, area and output of farm produce extremely decreases. This point makes feed industry in Vietnam depending on foreign materials. With over 15 years of operating, the subject has grown its turnover dramatically and has become quickly one of the big brands in its industry, having a good position and prestige in domestic and foreign market. 80% raw material for subject’s production is imported from foreign market such as US, Germany, Netherlands, France, Switzerland…

Premises and facilities of subject are fair. Subject’s headquarter and main factory are located at No.238 High way 1A - Tan Hiep Ward - Bien Hoa City - Dong Nai Province. Its factory was equipped advance machinery imported from EU. Besides, the subject has a workshop in Bac Ninh Province, a representative office in Ho Chi Minh City and a branch in Hanoi City. The subject has applied quality management standard system ISO 9001 and ISO 22000.

Look at the result in doing business of this subject, we see that: Although the subject also meets some difficulties because of increasing in price of input material, it still had high revenue. Following is table of total revenue and profit after tax of subject from 2008 to 2011.

                                                                                                                     Unit: one million VND

 

2008

2009

2010

2011

Total revenue

523,852

654,815

770,371

924,445

Profit after tax

68,980

86,225

101,441

121,730

 

In conclusion, the subject has considerable position in animal feed industry in Vietnam. Generally, subject is operating stably. The premises and facilities are good. The subject can meet normal credit commitments.

 

 

------------ APPENDIX 1 ----------

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.63.78

UK Pound

1

Rs.100.70

Euro

1

Rs.84.66

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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.