Financial monitoring plan for 2024 for state-owned enterprises represented by the Ministry of Health of Vietnam

Financial monitoring plan for 2024 for state-owned enterprises represented by the Ministry of Health of Vietnam (Internet image)

Regarding this matter, LawNet would like to answer as follows:

On March 25, 2024, the Minister of Health of Vietnam issued Decision 706/QD-BYT approving the financial monitoring plan for enterprises in 2024 for state-owned enterprises holding 100% of the charter capital.

Financial monitoring plan for 2024 for state-owned enterprises represented by the Ministry of Health of Vietnam

The financial monitoring plan for 2024 for state-owned enterprises represented by the Ministry of Health of Vietnam is specified as follows:

(1) Monitoring content

Based on Article 9 of Decree 87/2015/ND-CP, the detailed monitoring content is as follows:

- Monitoring the preservation and development of capital in enterprises.

- Monitoring the management and use of state capital and assets in enterprises, including the following contents:

+ Capital investment activities for investment projects, including capital mobilization sources, project implementation progress, and investment capital disbursement progress.

+ Capital investment activities outside of enterprises.

+ Capital mobilization and capital use status, bond issuance.

+ Asset management, debt management in enterprises, debt repayment ratio on equity capital.

+ Cash flow status of enterprises.

- Monitoring the results of the business operations of enterprises

+ Implementation of the approved production and business plan by the Ministry of Health; fulfilling the task of supplying products and public services ordered by the State.

+ Business operation results: revenue, profit, return on equity (ROE), return on assets (ROA).

+ Fulfillment of obligations to the state budget.

+ Profit distribution, reserve allocation, and use.

- Monitoring compliance with laws on investment, management, and use of state capital in enterprises; issuing and implementing financial management regulations of enterprises.

- Monitoring the restructuring of state capital investment in enterprises.

- Monitoring the implementation of salary, wages, bonuses, allowances, and other benefits for employees, enterprise managers, controllers, and representatives of capital in accordance with the Labor Law.

(2) Financial monitoring authority

The Ministry of Health takes the lead in coordinating with the Ministry of Finance to implement financial monitoring and evaluate the effectiveness of production and business activities.

(3) Financial monitoring methods

Financial monitoring is conducted through indirect monitoring, pre-monitoring, in-monitoring, and post-monitoring methods, with a focus on pre-monitoring through the contents that the company must seek the opinion of the Ministry of Health according to the regulations on state capital management in investment in enterprises; indirect monitoring through financial reports, financial monitoring reports, and other reports of enterprises to timely detect financial risks and limitations in financial management of enterprises and provide warnings and solutions; direct monitoring at enterprises.

For Pasteur Dalat Vaccine Joint Stock Company, direct monitoring focuses on monitoring the results of business operations.

For Vaccine and Biological Products Joint Stock Company No. 1, direct monitoring focuses on the management and use of state capital and assets in enterprises; the results of business operations; compliance with laws on investment, management, and use of state capital in enterprises; and issuing and implementing financial management regulations of the enterprises.

For Medical Publishing Company Limited and its branch in Ho Chi Minh City, direct monitoring focuses on the management and use of state capital and assets in enterprises; the results of business operations; inventory management, asset management, debt management in enterprises, debt repayment capacity of enterprises; cash flow status of enterprises; implementation of salary, wages, bonuses, allowances, and other benefits for employees, enterprise managers in accordance with the Labor Law; and issuing and implementing financial management regulations, internal expenditure regulations, and other regulations of enterprises.

(4) Implementation period: Quarter 2 and Quarter 3 of 2024.

More details can be found in Decision 706/QD-BYT taking effect on March 25, 2024.

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