Completing the credit rating system of corporate customers at Lien Viet Post Commercial Joint Stock Bank - 12

Table II.2: Scoring Management qualifications and internal environment of B . JSC
	Targets	Evaluate	Initial score	Weight	Weighted Score
first	Judicial history of the head of the business/business owner	Good criminal record, no criminal record, no criminal record	100	2%	2
2	Education level of the head of the business/business owner	University	80	2%	1.6
3	Experience, executive capacity and management quality of the Owner/Board of Directors	Management experience and quality are quite good, the leadership is stable	80	5%	4
4	Reputation and relationship of the business owner in the market, with relevant agencies	Normal relationship	60	4%	2.4
5	Internal control environment, organizational structure of enterprises	Internal control processes are established but not regularly updated and checked. Good organizational structure	80	2%	1.6

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6	Internal HR environment of the enterprise	Good	80	3%	2.4
7	Business strategic vision of the enterprise	Having a vision and business strategy, but the feasibility in some cases is still limited	60	2%	1.2
Total weighted score					17.8
(Source: Extracted from LienVietPostBank 's outreach data )

Table II.3: Scoring External factors of B . JSC
	Targets	Evaluate	Initial score	Weight	Weighted Score
first	Industry development prospects	Relatively developed and promising	80	2%	1.6
2	Influence from policies of the State, Government, and local authorities	Does not have its own policy or is not heavily influenced by the policy (if any)	40	3%	1.2
3	Stability of input materials	Relatively stable or volatile but have little impact on business operations and profits	60	2%	1.2
4	The ability of the enterprise's products to be replaced by "substitute products" according to the assessment of GMOs	Relatively difficult	80	first%	0.8
5	The ability of new businesses to enter the market (in the same industry/business field) as assessed by GE	Difficult, requiring large investment of capital and labor, high qualifications	80	first%	0.8
6	The degree of dependence of the enterprise's business activities on natural conditions	There is a dependency but the effect is not significant	80	first%	0.8
Total weighted score					6.4
(Source: Extracted from LienVietPostBank's outreach data)

Table II.4: Scoring of B Joint Stock Company's Bank Relationship
	Targets	Evaluate	Initial score	Weight	Weighted Score
first	Overdue debt situation of enterprises' current outstanding loans at credit institutions	0%	100	4%	4
2	Number of times of debt restructuring (including principal and interest) in the past 12 months at credit institutions	0 times	100	4%	4

3	Number of times of late payment of interest in the past 12 months at credit institutions	0 times	100	4%	4
4	Number of times of insolvency/late payment commitments (L/C, guarantee, other commitments) in the past 12 months at credit institutions	0 times	100	3%	3
5	Credit relationship with Lien Viet Bank (%)	50%	80	4%	3.2
6	Debt repayment history of enterprises with Lien Viet Bank	Always pay your debt on time	100	4%	4
7	Using loan capital for wrong purposes when borrowing at Lien Viet Bank	Never used capital for the wrong purpose	100	3%	3
8	The situation of providing information at the request of Lien Viet Bank in the past 12 months	Always provide complete, accurate and timely information. Actively cooperate in providing information	100	2%	2
9	Percentage of average deposit balance (in the last 12 months) / Average outstanding balance of enterprises at Lien Viet Bank (in the last 12 months)	< 2%	20	4%	0.8
ten	Average number of transactions with Lien Viet Bank	<2	20	3%	0.6
Total weighted score					28.6
(Source: Extracted from LienVietPostBank's outreach data)

Table II.5: Scoring Operational characteristics of B . JSC
	Targets	Evaluate	Initial score	Weight	Weighted Score
first	Position and competitiveness of enterprises in the market	Branded but commonly known, the position belongs to a stable development team. Be subject to competition but have a clear direction of development to improve its position.	60	5%	3
2	Scope of business activities (scope of product consumption)	Only within Vietnam or the surrounding border area	80	4%	3.2
3	Supplier relationship	Fully active and with multiple input options	100	3%	3

4	Relationship with output partners	The output market is huge. Enterprises are not dependent on a small number of output partners, fully actively developing sales	100	5%	5
5	Financial reporting quality	Report truthfully, completely, with audit, sent on time	100	4%	4
6	Applying modern management model (ISO) and advanced technological processes	Do not apply	20	2%	0.4
7	Achievements are widely recognized	Never received awards from organizations	20	2%	0.4
8	Net cash flow trends	Downtrend (positive period net cash flows)	60	4%	2.4
9	Source of debt repayment of enterprises according to the assessment of the CBA	A reliable source of debt repayment, the business is fully capable of paying its debts on time	100	6%	6
Total weighted score					27.4
(Source: Extracted from LienVietPostBank's outreach data)

Table III.1: Criteria for assessing financial indicators of enterprises in the agriculture, forestry and fishery sectors according to Decision 57/2002/QD-NHNN
Targets	Large scale				Medium size				Small scale
	A	REMOVE	OLD	EASY	A	REMOVE	OLD	EASY	A	REMOVE	OLD	EASY
Liquidity indicator
1. Short-term solvency (L)	2.1	1.5	first	0.7	2.3	1.6	1.2	0.9	2.5	2	1.5	first
2. Quick payment (L)	1.1	0.8	0.6	0.2	1.3	first	0.7	0.4	1.5	1.2	first	0.7
Performance Indicators
3. Turnover of inventory (V)	4	3.5	3	2	4.5	4	3.5	3	4	3	2.5	2
4. Average collection period (N)	40	50	60	70	39	45	55	60	34	38	44	55
5. Asset efficiency (L)	3.5	2.9	2.3	1.7	4.5	3.9	3.3	2.7	5.5	4.9	4.3	3.7
Debt ratio (%)
6. Liabilities/Total Assets	39	48	59	70	30	40	52	60	30	35	45	55
7. Liabilities/Equities ONLY	sixty four	92	143	233	42	66	108	185	42	53	81	122
8. Overdue debt/Total bank balance	0	first	2	3	0	first	2	3	0	first	2	3
Income target (%)
9. Income before tax/Revenue	3	2.5	2	1.5	4	3.5	3	2.5	5	4.5	4	3.5
10. Income before tax/Total assets	4.5	4	3.5	3	5	4.5	4	3.5	6	5.5	5	4.5
11. Income before tax/Equity source only	ten	8.5	7.6	7.5	ten	8	7.5	7	ten	9	8.3	8.4
(Source: State Bank of Vietnam)

Note:

• Enterprise has the ratio from A to the left: 5 points. After A to B: 4 points. After B to C: 3 points. After C to D: 2 points. From behind D to the right: 1 point.
• Profitability indexes in items 9, 10, 11 < 0: 0 points.
• The ratio of Liabilities/Equities in section 7 < 0: 0 points.