MIRA INFORM REPORT

Report No. :	321994
Report Date :	23.05.2015

IDENTIFICATION DETAILS

Name :	HONDA VIETNAM CO LTD ^(1)
Registered Office :	Phuc Thang Ward, Phuc Yen, Vinh Phuc
Country :	Vietnam
Financials (as on) :	2012
Date of Incorporation :	26.06.2008
Legal Form :	Private Company With Limited Liability
Line of Business :	Manufacturer of Motor Vehicles, Parts & Accessories.
No. of Employees :	8,200

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Vietnam	A2	A2

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 18% in 2014, while industry's share increased from 36% to 38% in the same period. State-owned enterprises account for about 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 2014 growing at 5.4%, one of the slower growth rates since 1999. Exports have grown strongly in 2013-14; 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 has remained relatively stable since then. 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, Hanoi’s progress in meeting its goals is lagging behind its proposed schedule. Vietnam's economy continues to face challenges from an undercapitalized banking sector and non-performing loans weigh heavily on banks and businesses. Vietnam is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations.

Source : CIA

REGISTERED NAME & COMPANY SUMMARY

Organization Name	:	HONDA VIETNAM CO LTD ^(1)
Address	:	Phuc Thang Ward, Phuc Yen, Vinh Phuc
Country	:	Vietnam
Phone (S)	:	[+84] 211-3868888
Facsimile	:	[+84] 211-3868889
Email	:	info@honda.com.vn
Website	:	http://www.honda.com.vn
Primary Business Activity	:	Manufacturer
Key Industry	:	Motor Vehicles, Parts & Accessories

Registered Legal Address

:

Phuc Thang Ward, Phuc Yen, Vinh Phuc

Operational Address

:

Phuc Thang Ward, Phuc Yen, Vinh Phuc

Issuing Authority

:

Dept. of Planning & Investment - Vinh Phuc

License Number

:

191022000110

License Status

:

License exists - Normal.

Legal Form - Category

:

Private Company with Limited Liability

Legal Form

:

Company Limited

Legal Form - Abbreviation

:

CO LTD

Operational Status of Business

:

Normal

Date of Registration

:

26 Jun, 2008

Employees

:

8,200

Capital

:

US$ 62,900,000

PREVIOUS BUSINESS LICENSE/S

License Date	License No.
22 Mar, 1996	1521/GP

Note

:

⁽¹⁾ Legal status of the English corporate name
The English name of the Subject Business Entity (SBE) is a randomly selected translation / transliteration made by the owners of the SBE. It is not a registered English corporate name, but simply a translation / transliteration of the local language name.

DIRECTORS/MANAGEMENT

Key Person

Legal Title	:	Managing Director
Name	:	Mr. Minoru Kato
Nationality	:	Japanese

COMPANY MANAGEMENT

Management Listings

	Name	Nationality	Job Description	Dept. / Division
1	Ms. Le Thi Xuan Mai	Vietnamese	Chief Accountant	-
2	Mr. Ho Manh Tuan	Vietnamese	Deputy Director General	-

Management Details - 1

Personal Unique Identifier	:	MI03636203
Name	:	Ms. Le Thi Xuan Mai
Date of Birth	:	1971

Management Details - 2

Personal Unique Identifier	:	MI03636199
Name	:	Mr. Ho Manh Tuan
Date of Birth	:	1966

COMPANY DIRECTORS

1
Personal Unique Identifier	:	MI03855383
Name	:	Mr. Minoru Kato

NEGATIVE INFORMATION

REPUTATION

Reference checking for the purpose of establishing HONDA VIETNAM CO LTD's reputation within the respective industry failed to reveal any adverse information.

NEGA-SCAN - ADVERSE DATA MONITORING

DISHONORED CHECKS

No Record Found

DEBT	No Record Found

CIVIL LITIGATION

No Record Found

PERFORMANCE DEFAULTS

No Record Found

ADVERSE LOCAL MEDIA COVERAGE / ADVERSE FILING HISTORY

No Record Found

SHARE & SHARE CAPITAL INFORMATION

CAPITAL (Currency: USD - US Dollar)

Authorized Capital

:

$ 62,900,000

Date	Authorized Capital - History
22 Mar, 1996	45,400,000
26 Jun, 2008	62,900,000

SHAREHOLDERS

Total number of shareholders	:	3
Total number of shares	:	n/a

Currency

:

VND - Vietnam Dong

No.	Shareholders	Country	Shares
			Number	Amount (VND)	%
1	HONDA MOTOR CO LTD	Japan	n/a	n/a	42.00
2	VIETNAM ENGINE & AGRICULTURAL MACHINERY CORP	Vietnam	n/a	n/a	30.00
3	ASIAN HONDA MOTOR CO LTD	Thailand	n/a	n/a	28.00
Total			n/a	n/a	100.00

Based on corporate statutory laws / regulations in Vietnam, there is no requirement for public disclosure of Shareholders. In this case, the Shareholders information was supplied by the Subject Business Entity.
However in the absence of data normally obtained from local Statutory Authorities, it is not possible to verify the accuracy of data supplied and hence is provided as reference ONLY.

PAYMENT INFORMATION

DOMESTIC SALES & PURCHASES

Annual Sales Analysis	Percentage
Domestic Sales	10%
International Sales (Export)	90%

Annual Purchases Analysis	Percentage
Local Purchases	40%
Imports	60%

PAYMENT TERMS

Selling

Type	Terms
Local	Cash on delivery (COD) Credit - Secured with Post-dated checks 30~60 days
Export	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Received at time of transaction

Purchasing

Type	Terms
Local	Cash on delivery (COD) Credit - Secured with Post-dated checks 30~60 days
Import	Letter of Credit (At-sight) Telegraphic Transfer (T/T) - Executed at time of transaction

DOMESTIC SUPPLIERS

Business Entity Name	Global Identifier
VIETNAM PRECISION INDUSTRIAL NO 1 CO LTD	P0390415

GROUP STRUCTURE & AFFILIATED COMPANIES

LOCAL BRANCHES & MANAGEMENT

Branch	:	HONDA VIETNAM CO LTD - DUY TIEN, HA NAM
Branch Address	:	Dong Van II Industrial Park, Duy Tien, Ha Nam
Branch	:	HONDA VIETNAM CO LTD - DISTRICT 1, HO CHI MINH
Branch Address	:	8Fl Zen Plaza Center 54-56 Nguyen Trai St, District 1, Ho Chi Minh
Branch	:	HONDA VIETNAM CO LTD - DONG DA, HANOI
Branch Address	:	1Fl, 198B Tay Son St, Dong Da, Hanoi

FINANCIAL INFORMATION

Financials - Summary  (Currency: USD - US Dollar)

Year	Turnover	Assets	Net Income
2010 Annual	1,914,082,966	559,494,613	115,385,377
2011 Annual	2,410,893,567	715,563,322	139,851,320
2012 Annual (*)	2,308,408,205	919,915,523	147,409,321

Sales Trend – Analysis

2003	2004	2005	2006	2007	2008	2009	2010	2011	2012
-	-	-	-	-	-	-	-

Note: (*)

Financials listed are the most recent available for this company.

FINANCIAL STATEMENT - DETAILED

Balance Sheet

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Current Assets(*)	6,634,810,000,000	9,179,453,000,000	11,255,673,000,000
Non Current Assets(*)	4,269,740,000,000	5,725,731,000,000	7,901,255,000,000
Non Current Liabilities(*)	172,013,000,000	137,669,000,000	166,751,000,000
Share Capital(*)	1,190,823,000,000	1,190,823,000,000	1,190,823,000,000
Other long term assets
Total Assets(*)	10,904,550,000,000	14,905,184,000,000	19,156,928,000,000
Total Liabilities(*)	4,976,053,000,000	6,850,684,000,000	8,323,990,000,000
Current Liabilities(*)	4,804,040,000,000	6,713,015,000,000	8,157,239,000,000
Long term liabilities
Shareholders Funds(*)	5,928,497,000,000	8,054,500,000,000	10,832,938,000,000
Current assets & short term investments	6,634,810,000,000	9,179,453,000,000	11,255,673,000,000
Cash & cash equivalents	3,858,451,000,000	5,877,606,000,000	7,849,908,000,000
Cash	36,641,000,000	51,385,000,000	7,849,908,000,000
Cash equivalents	3,821,810,000,000	5,826,221,000,000	-
Accounts receivable	414,294,000,000	522,331,000,000	651,275,000,000
Accounts receivable trade	166,998,000,000	463,792,000,000	546,231,000,000
Trade prepayment	65,379,000,000	27,894,000,000	94,514,000,000
Inter company receivables	165,256,000,000	-	-
Others receivables	16,661,000,000	30,645,000,000	10,530,000,000
I. Inventories	2,206,369,000,000	2,542,723,000,000	2,285,871,000,000
II. Inventories	2,237,553,000,000	2,575,431,000,000	2,317,345,000,000
Provision for decline in inventory	(31,184,000,000)	(32,708,000,000)	(31,474,000,000)
I. Other short term asset	155,696,000,000	236,793,000,000	468,619,000,000
Prepaid expenses	3,977,000,000	4,880,000,000	7,343,000,000
VAT deductible	87,071,000,000	119,857,000,000	266,956,000,000
Other tax receivables	43,685,000,000	91,834,000,000	176,123,000,000
II. Other short term asset	20,963,000,000	20,222,000,000	18,197,000,000
Long term assets	4,269,740,000,000	5,725,731,000,000	7,901,255,000,000
Accounts of long term receivable	-	212,152,000,000	175,814,000,000
Other long term receivables	-	212,152,000,000	175,814,000,000
Fixed assets	3,869,114,000,000	4,570,788,000,000	6,958,989,000,000
Tangible fixed assets	2,673,830,000,000	4,236,504,000,000	5,164,986,000,000
I. Cost	5,453,875,000,000	7,501,004,000,000	9,054,265,000,000
I. Accumulated depreciation	2,780,045,000,000	3,264,500,000,000	3,889,279,000,000
Intangible fixed assets	226,190,000,000	216,058,000,000	376,381,000,000
II. Cost	356,365,000,000	365,773,000,000	571,432,000,000
II. Accumulated depreciation	130,175,000,000	149,715,000,000	195,051,000,000
Construction in progress	969,094,000,000	118,226,000,000	1,417,622,000,000
Long term investments	79,230,000,000	79,230,000,000	79,230,000,000
Invest to joint venture company	79,230,000,000	-	79,230,000,000
Other long term investments	-	79,230,000,000	-
I. Other long term assets	321,396,000,000	863,561,000,000	687,222,000,000
Long term prepayments	187,282,000,000	434,184,000,000	257,845,000,000
II. Other long term assets	134,114,000,000	429,377,000,000	429,377,000,000
Total assets	10,904,550,000,000	14,905,184,000,000	19,156,928,000,000
Liabilities	4,976,053,000,000	6,850,684,000,000	8,323,990,000,000
Current liabilities	4,804,040,000,000	6,713,015,000,000	8,157,239,000,000
Short term borrowings	1,923,381,000,000	-	-
Accounts payables-trade	442,439,000,000	4,177,952,000,000	5,099,824,000,000
Advances from customers	-	625,947,000,000	319,360,000,000
Taxes and payable to state budget	429,086,000,000	493,958,000,000	479,867,000,000
Payable to employees	45,249,000,000	12,187,000,000	1,961,000,000
Accrued expenses payable	25,916,000,000	167,591,000,000	598,512,000,000
Inter company payable	1,559,432,000,000	-	-
Other payables	378,537,000,000	1,235,380,000,000	1,657,715,000,000
Long term liabilities	172,013,000,000	137,669,000,000	166,751,000,000
Provision funds for unemployment	36,359,000,000	42,866,000,000	-
Provision for long term payable	135,654,000,000	94,803,000,000	166,751,000,000
I. Owner's equity	5,928,497,000,000	8,054,500,000,000	10,832,938,000,000
II. Owner's equity	5,928,497,000,000	8,054,500,000,000	10,832,938,000,000
Business capital	1,190,823,000,000	1,190,823,000,000	1,190,823,000,000
Financial reserved funds	297,705,000,000	297,706,000,000	297,706,000,000
Retained earnings	4,439,969,000,000	6,565,971,000,000	9,344,409,000,000
Total resources	10,904,550,000,000	14,905,184,000,000	19,156,928,000,000

Note: (*)

Financial Highlights

INCOME STATEMENT

Currency	:	VND
Denomination	:	1
Financial Year Ending	:	December

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Turnover(*)	37,305,477,000,000	50,218,913,000,000	48,071,816,000,000
Profit (Loss) Before Tax(*)	2,561,092,000,000	3,317,435,000,000	3,462,042,000,000
Profit After Tax attributable to Shareholders(*)	2,248,861,000,000	2,913,103,000,000	3,069,749,000,000
Gross sales	37,305,477,000,000	50,218,913,000,000	48,071,816,000,000
Less deductions	-	2,044,000,000	655,638,000,000
Net income	37,305,477,000,000	50,216,869,000,000	47,416,178,000,000
Cost of goods sold	30,731,892,000,000	42,060,562,000,000	38,262,136,000,000
Gross margin	6,573,585,000,000	8,156,307,000,000	9,154,042,000,000
Income from financial activities	492,315,000,000	546,502,000,000	510,621,000,000
Expenses from financial activities	928,218,000,000	379,549,000,000	147,538,000,000
Selling expenses	1,122,643,000,000	1,501,344,000,000	2,140,333,000,000
General & administration expenses	2,458,834,000,000	3,537,460,000,000	3,886,021,000,000
Net income from operating activities	2,556,205,000,000	3,284,456,000,000	3,490,771,000,000
Extraordinary income	41,676,000,000	257,880,000,000	122,445,000,000
Extraordinary expenses	36,789,000,000	224,901,000,000	151,174,000,000
Extraordinary gains	4,887,000,000	32,979,000,000	(28,729,000,000)
Net profit before tax	2,561,092,000,000	3,317,435,000,000	3,462,042,000,000
Income tax	300,193,000,000	404,332,000,000	392,293,000,000
Income tax delay	(12,038,000,000)	-	-
Net profit after tax	2,248,861,000,000	2,913,103,000,000	3,069,749,000,000

Note: (*)

Financial Highlights

FINANCIAL RATIOS

Financial Highlights	2010 Annual	2011 Annual	2012 Annual
Growth %
Year-on-Year Growth	-	34.62	(4.28)
Profitability
Profit Margin (%)	6.03	5.80	6.39
Return on Equity (%)	37.93	36.17	28.34
Return on Assets (%)	20.62	19.54	16.02
Leverage
Total Debt Equity (Times)	0.84	0.85	0.77
Current Debt Equity (Times)	0.81	0.83	0.75
Long Term Debt to Equity	0.03	0.02	0.02
Total Asset To Total Equity	1.84	1.85	1.77
Asset Management
Total Assets Turnover (Times)	3.42	3.37	2.51
Fixed Assets Turnover (Times)	8.74	8.77	6.08
Liquidity
Current Ratio	1.38	1.37	1.38

Based on the corporate laws of Vietnam, legal entities which are a Private Company with Limited Liability are not required to make public disclosure of their annual financials. Although basic financials were obtained for reference.

FOREIGN EXCHANGE RATES

Today's Exchange rate

:

1.00 VND Vietnam Dong

=

0.000046 USD United States Dollars

ADDITIONAL INFORMATION

Country	:	Vietnam
Business Entity Name	:	HONDA VIETNAM CO LTD
Acronym	:	HVN
Primary Business Activity	:	Manufacturer
Primary Industry	:	Motor Vehicles, Parts & Accessories
Office Contact Details
Operating Address	:	Phuc Thang Ward, Phuc Yen, Vinh Phuc
Tel	:	[+84] 211-3868888
	:	[+84] 211-3868904
Fax	:	[+84] 211-3868889
	:	[+84] 211-3868910
Email	:	info@honda.com.vn
Website Details
Website	:	http://www.honda.com.vn
Status	:	Normal - operational
Country of Registration	:	Vietnam
Ownership Type	:	Registered ownership by Subject Business Entity
Tax / VAT Details
Tax Issuing Authority	:	Ministry of Finance
Local Name Used	:	Gia Trj Gia Tang (Value Added Tax)
Acronym	:	GTGT / VAT
GTGT / VAT Number	:	2500150543
Date of Issuance	:	18 Sep, 1998

Primary Products

Products / Materials / Services Description	Activity
Automobiles	Manufacturing, Exporting
Motor scooters	Manufacturing, Exporting
Motorbikes	Manufacturing, Exporting
Motorcycle accessories	Manufacturing, Exporting
Motorcycle parts	Manufacturing, Exporting

SIC PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Motor vehicle parts and accessories, nspf	3714	Manufacturing, Exporting
Motorcycles, bicycles, and parts, nspf	3751	Manufacturing, Exporting

HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY

Product/Service Description	Code	Activity
Motor cars & vehicles for transporting persons	8703	Manufacturing, Exporting
Motorcycles (incl mopeds) & cycles with aux motor	8711	Manufacturing, Exporting
Motorcycles (including mopeds) and cycles fitted with auxiliary motors	8711900000	Manufacturing, Exporting
Parts & access for cycles & invalid carriages	8714	Manufacturing, Exporting
Parts, of motorcycles (including mopeds)	8714190000	Manufacturing, Exporting

DETAILED PRODUCT CLASSIFICATION & ACTIVITY

Products / Materials / Services Description	Ranking	Activity
Motorcycles	Primary	Manufacturing, Exporting

CORE BUSINESS DESCRIPTION

Core Business

The primary business focus of HONDA VIETNAM CO LTD is Manufacturing - Finished products.

Key products include :

Automobiles

Motor scooters

Motorbikes

Motorcycle accessories

Motorcycle parts

Motorcycles

An integral part of the core business includes:

Distribution

Supplementary Business

In addition to the core business, HONDA VIETNAM CO LTD also is engaged in the following areas of business:

Exporting

Exporting - Finished products

Importing

Importing - Raw materials

BANK DETAILS

Bank Name	:	BANK OF TOKYO-MITSUBISHI UFJ LTD, THE
Global Identifier	:	P0927171
Branch	:	District 1,Ho Chi Minh
Branch Address	:	BANK OF TOKYO-MITSUBISHI UFJ LTD, THE - HANOI
SWIFT Code	:	BOTKVNVX

INTERNATIONAL TRADE - Activity & Markets

Country / Region	Estimated level of importance	Trading Activity
Asia / Pacific	High	Importing, Exporting
Cambodia	Medium	Exporting
Japan	Medium	Importing
Laos	Medium	Exporting
Philippines	Medium	Exporting
Thailand	Medium	Importing

OFFICE & FACILITIES

The following information relates to the Business Entity's office as listed above:

Name	:	HONDA VIETNAM CO LTD - PHUC YEN, VINH PHUC
Primary Use	:	Office & Administration facilities
Address	:	Phuc Thang Ward, Phuc Yen, Vinh Phuc
Country	:	Vietnam
Status	:	Operational

NOTES & COMMENTS

N/a

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.57
UK Pound	1	Rs.99.67
Euro	1	Rs.70.93

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	TPT

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.