What measures does the parent company MobiFone Corporation take to preserve state capital in Vietnam?

What measures does the parent company MobiFone Corporation take to preserve state capital in Vietnam?

According to Clause 2, Article 9 of the Regulation on financial management of the parent company - MobiFone Corporation, issued by the Chairman of the Committee for the Management of State Capital at Enterprises together with Decision 618/QD-UBQLV in 2022 with regulations on measures to preserve state capital of the parent company of MobiFone Corporation shall be implemented as follows:

1. MobiFone must ensure effective management and use of state capital, preserve and develop capital in accordance with the provisions of law. Any changes in the increase or decrease of state capital invested in enterprises, MobiFone must report to the owner's representative agency and the Ministry of Finance for monitoring and supervision .

2. MobiFone preserves state capital by the following measures:

a) Strictly comply with the regime of management and use of capital and assets, distribution of profits, other financial management regimes and accounting regimes as prescribed by law.

b) Buy property insurance as prescribed by law.

c) Promptly handle the value of lost assets and insolvent debts, recover and make provision for the following risks:

- Provision for devaluation of inventory;

- Provision for bad debts ;

- Provision for devaluation of long-term financial investments;

- Provision for warranty of products, goods and construction works.

d) Other measures to preserve equity at the enterprise as prescribed by law.

3. The setting up of provisions includes provision for devaluation of inventories; provision for bad debts; provision for loss of long-term financial investments; Provisions for warranty of products, goods and construction works shall comply with regulations on setting up provisions of the Ministry of Finance and amendments, supplements and replacement documents (if any).

4. MobiFone must evaluate the capital preservation level according to regulations. In case the owner's equity cannot be preserved, the Board of Members must send a clear explanation report to the owner's representative agency and the Ministry of Finance on the causes of failure to preserve capital and remedial measures.

Thus, MobiFone preserves state capital by the following measures in Vietnam:

(1) To strictly comply with the regime of management of capital and asset use, distribution of profits, other financial management regimes and accounting regimes as prescribed by law.

(2) Buy property insurance in accordance with the law.

(3) Promptly handle the value of lost assets, insolvent debts, recover and make provision for the following risks:

- Provision for devaluation of inventory;

- Provision for bad debts;

- Provision for devaluation of long-term financial investments;

- Provision for warranty of products, goods and construction works.

(4) Other measures to preserve equity at the enterprise as prescribed by law in Vietnam.

What regulations must use of capital and assets of the parent company MobiFone corporation to invest abroad comply in Vietnam?

In Article 11 of the Regulation on financial management of the parent company - MobiFone Corporation, issued by the Chairman of the Committee for the Management of State Capital at Enterprises together with Decision 618/QD-UBQLV in 2022, it is stipulated as follows: 

1. The use of capital and assets of MobiFone to invest abroad must comply with the provisions of the Law on Management and use of state capital invested in production and business at enterprises, the provisions of the law on investment investment, the law on foreign exchange management and other relevant laws.

2. The Board of Members shall perform the responsibilities as prescribed in Clauses 2 and 3, Article 29 of the Law on management and use of state capital invested in production and business in enterprises and the Charter of MobiFone to perform the tasks on investment abroad.

What are regulations on the management of payables of the parent company MobiFone Corporation in Vietnam?

According to the provisions of Article 7 of Regulation on financial management of the parent company - MobiFone Corporation, issued by the Chairman of the Committee for the Management of State Capital at Enterprises together with Decision 618/QD-UBQLV in 2022:

1. MobiFone is responsible for opening a book to monitor all payable debts, including interest payable, information related to late payment penalties, information related to the lender and payment of debts to be paid on time as committed. Regularly review, evaluate and analyze MobiFone's debt payment ability, early detect the difficult situation in debt payment to have timely solutions to avoid arising, overdue debts. Payable debts that are not payable or have no object to pay shall be recorded in other income of MobiFone.

2. Organize debt clearing between units within MobiFone when implementing business cooperation plans in accordance with law.

3. Foreign currency exchange difference payable arising in the period, exchange rate difference on re-evaluation of foreign currency debt balance payable at the end of the fiscal year shall be handled in accordance with current law provisions.

4. The management and handling of payable debts of MobiFone comply with the provisions of Decree No. 206/2013/ND-CP dated December 9, 2013 of the Government on debt management of enterprises by the State. holding 100% of charter capital, Decree amending, supplementing or replacing (if any), MobiFone's debt management regulations and relevant laws.

The Board of Members, the Chairman of the Board of Members, and the General Director of MobiFone must manage and operate the enterprise to ensure its ability to pay debts; be responsible for early detection of difficulties in debt payment in order to have timely solutions to avoid overdue debts arising; If it is not handled in a timely manner, resulting in overdue debts that are not paid for more than 6 months, based on the consequences of not handling them in time, the owner shall decide on disciplinary action according to regulations of the law to the Chairman of the Board of Members, the Board of Members, the General Director of MobiFone; if not handled promptly, leading to insolvency, they must take responsibility before the owner and before the law.

Best Regards!