06 contents of financial supervision of state-owned enterprises in Vietnam

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According to Article 9 of Decree No. 87/2015/ND-CP of Vietnam’s Government, contents of financial supervision of state-owned enterprises are as follows:

1. Supervise capital conservation and development.

2. Supervise utilization and management of state-owned capital and assets invested in enterprises according to the following issues:

- State capital investment in investment projects, including mobilized capital, progress of project execution and invested capital disbursement;

- Outward investment activities, including contents regarding the financial supervision over subsidiary companies, associate companies through the investment portfolio of parent companies in compliance with regulations stated in Section 2 Chapter III hereof; supervision of foreign investment activities of enterprises in compliance with regulations laid down in Section 3 Chapter III hereof;

- The current state of mobilization of capital and use of mobilized capital, and bond issue;

- The current state of asset management, debt management at enterprises, the enterprise’s solvency and debt-to-equity ratio;

- The current state of currency flows in enterprises.

3. Supervise an enterprise's operating results.

- The implementation of the business plan to produce, perform the task of supplying products and services according to the State’s public order or designated plan;

- Operating results: revenue, profit, return on equity, return on asset;

- Fulfillment of obligations to the state budget;

- Profit distribution and setting aside and utilization of funds.

4. Supervise the compliance with laws on investment, management and utilization of state capital invested in enterprises; issue and implement regulations on financial management in enterprises.

5. Supervise the restructuring of state capital invested in enterprises, the restructuring of enterprise’s capital invested in subsidiary companies and associate companies.

6. Supervise the implementation of pay, remuneration, bonus and responsibility allowance schemes and exercise of other rights under an enterprise’s commitment to employees, managers, comptrollers and representative persons of capital of such enterprise in accordance with the Labor Code. 

View full text in Decree No. 87/2015/ND-CP of Vietnam’s Government, which takes effect from December 01, 2015.

Thu Ba

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