Decree 87: Guidance on bases for financial supervision of state enterprises in Vietnam

Specifically, according to Article 10 of Decree No. 87/2015/ND-CP of Vietnam’s Government, financial supervision, performance assessment and rating of state enterprises shall be carried out on the following bases:

Illustration (Internet)

- Applicable legal regulations on corporate financial management.

- The charter of organizational structure and operations as well as financial rules and regulations in enterprises.

- Annual and 5-year business and development investment plan of an enterprise, and supervisory objectives set over periods of time by the representative agency in each enterprise.

- Annual financial statement of an enterprise which is subject to independent audit and is ratified by the Board of Members; half-year financial statement, quarterly financial statement, periodic professional report and other ad-hoc reports as requested by the representative agency or competent authorities.

- The result of inspection, examination and audit in enterprises carried out by competent authorities and publicly made known in accordance with regulations or sent in a written form to the representative agency.

- Relevant information and materials stipulated by laws.

Financial supervision shall be carried out by employing the method of direct supervision, indirect supervision, pre-supervision, in-process supervision, post-supervision with particular attention paid to the pre-supervision and post-supervision practices in order to promptly find out financial risks and restrictions of financial management as well as issue alerts or suggest solutions. 

More details can be found in Decree No. 87/2015/ND-CP of Vietnam’s Government, which takes effect from December 01, 2015.

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE