What Rights Does VIETTEL Have in the Financial Sector?

Regarding finance, VIETTEL has the following rights:

1. Raising funds for business by issuing bonds; borrowing capital from domestic and foreign credit institutions, individuals, and other forms of capital mobilization in accordance with the law and the Charter of organization and operation of the Parent Company - Military Industry and Telecoms Group.

   The mobilization of funds for business must follow the principles and authority for capital mobilization as per the law and the Charter.

   Borrowing capital from foreign credit institutions or individuals by VIETTEL is performed in accordance with the laws on managing foreign loans and debts repayment of enterprises.

2. Proactively using capital for investment, and business activities of VIETTEL; leasing land use rights, receiving transfers of land use rights to build offices, working premises, production facilities, and operating locations of VIETTEL and its dependent units, member enterprises; investing in and doing real estate business using owner’s capital and other funds.

3. Deciding on depreciation of fixed assets according to the law.

4. Advancing funds to units assigned with national defense and security tasks. The accounting, payment, and finalization of this advance are stipulated in the Financial Management Regulations of VIETTEL.

5. Benefiting from subsidies, price supports, or other preferential policies of the State for activities serving public utility, national defense, security, disaster prevention, or providing products and services under State price policies that do not fully cover the production costs of these products and services of VIETTEL.

6. Awarding incentives for innovation, technical and technological improvements, management enhancements; bonuses for labor productivity increases; and for saving materials and costs. These bonuses are accounted for in VIETTEL's business expenses and are executed once, with a maximum bonus not exceeding the benefits gained from innovation and technical and technological improvements, labor productivity increases, and cost savings in a year. In case VIETTEL has due debts, salary increases, and bonuses for employees, including management, are only awarded after all due debts have been paid.

7. Enjoying investment and reinvestment incentives according to the law; exercising ownership rights over capital invested in subsidiaries and other enterprises.

8. Receiving dividends, profit shares, and other benefits as per the law. Paying corporate income tax on profits earned from capital contributions to subsidiaries and other enterprises according to the law.

9. Refusing and denouncing any requests for resource provision that are not regulated by law from any individual, agency, or organization, except for voluntary contributions for humanitarian and public purposes.

10. Establishing funds as prescribed in this Charter and legal regulations.

11. VIETTEL’s profits, after covering previous year’s losses in accordance with the Corporate Income Tax Law, appropriating the Science and Technology Development Fund as per the law, paying corporate income taxes, and distributing to other funds stipulated in Article 72 of the Charter, the remaining profits are submitted to the state budget as per the law.

12. VIETTEL has the right to guarantee loans for subsidiaries from credit institutions under the following principles:

- The total value of guaranteed loans for a subsidiary where VIETTEL holds 100% charter capital does not exceed the value of the subsidiary's owner's capital according to the most recent quarterly or annual financial statements at the time of guarantee;- The total value of guaranteed loans for a subsidiary where VIETTEL holds more than 50% charter capital does not exceed the actual contributed capital of VIETTEL at the time of guarantee.

13. Participating in bidding packages of subsidiaries and vice versa as per law on bidding.

14. Permitting direct contracting for research and experimental packages under point c, clause 1, article 22 of the Bidding Law. Research and experimental packages include consulting services, non-consulting services, outsourcing, and procurement of goods for research, experimental tasks, and scientific research projects.

15. Assigning tasks or designating subsidiaries to perform tasks, scientific and technological projects; technical services, network optimization; maintenance of equipment and networks. Commissioning subsidiaries to research, develop, and produce equipment, materials, and technological products for business activities in compliance with market mechanisms.

16. Deciding on wage costs and other expenses based on revenue from VIETTEL's business activities according to the law.

17. Leasing, mortgaging, or pledging assets of VIETTEL based on principles of efficiency, maintaining and developing capital; disposing, and liquidating obsolete, outdated, unnecessary, unusable, or inefficient fixed assets to recover capital as per the law and the Charter.

18. Transferring financial investments that are not needed to recover capital per current regulations. If transferring financial investments in unlisted companies or those not registered for trading on the stock market, it shall be done according to the law.

19. Other financial rights as per the Financial Management Regulation of VIETTEL, the Charter, and the law.

See more: Decree 05/2018/ND-CP effective from January 05, 2018.

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