245. FINANCIAL SITUATION OF VIET DUC PHU THO LIMITED COMPANY

MINISTRY OF FINANCE ACADEMY OF FINANCE - - Student: DO PHUONG ANH Group: CQ54/11.13 GRADUATION THESIS TOPIC: FINANCIAL SITUATION OF VIET DUC PHU THO LIMITED COMPANY Major: CORPORATE FINANCE Code: 11 Supervisor: Tran Thanh Thu PhD Ha Noi - 2020 Academy of Finance Graduation Thesis DECLARATION I hereby declare that this thesis is made on my own research as a result of my internship at Department of Finance and Accounting of Viet Duc Phu Tho Company Limited The data and results stated in the thesis are honestly derived from the actual situation of the internship company Signature of the thesis’s author (Sign and write full name) Do Phuong Anh CQ54/11.13 Academy of Finance Graduation Thesis TABLE OF CONTENTS TABLE OF CONTENTS ii LIST OF ABBREVIATIONS iv LIST OF TABLES v LIST OF FIGURES vi PREFACE CHAPTER 1: OVERVIEW OF FINANCIAL SITUATION OF A COMPANY .4 1.1 Corporate finance and financial management .4 1.1.1 Corporate finance and financial decisions 1.1.1.1 Definition of corporate finance 1.1.2 Financial management 1.2 Financial situation of a company 11 1.2.1 Definition of financial situation of a company .11 1.2.2 Assessment of financial situation of a company 13 1.3 Determinants of Financial Situation of a company 28 1.3.1 Objective factors 28 1.3.2 Subjective factors 29 CHAPTER 2: FINANCIAL SITUATION OF Viet Duc Phu Tho Co., Ltd 31 2.1 Overview of Viet Duc Phu Tho Co., Ltd 31 2.1.1 The establishment and development of Viet Duc Phu Tho Co.,Ltd31 2.1.2 The business characteristic of Viet Duc Phu Tho Co., Ltd 32 2.1.3 Organizational structure of Viet Duc Phu Tho Co., Ltd .38 2.1.4 The company’s advantages and disadvantages 40 2.2 The financial situation of Viet Duc Phu Tho Co., Ltd 41 2.2.1 Viet Duc Phu Tho Co., Ltd’s assets and asset structure 41 Do Phuong Anh CQ54/11.13 Academy of Finance Graduation Thesis 2.2.2 Viet Duc Phu Tho Co., Ltd’s sources of finance and capital structure 45 2.2.3 Operating performance of Viet Duc Phu Tho Co., Ltd’s 50 2.2.4 Viet Duc Phu Tho Co., Ltd’s cash capital management: 54 2.2.5 Viet Duc Phu Tho Co., Ltd’s receivables management and measurement of solvency 59 2.2.5 Viet Duc Phu Tho Co., Ltd’s asset utilization efficiency: 66 2.2.7 Viet Duc Phu Tho Co., Ltd’s profitability .71 2.3 Overall assessment of the financial situation of Viet Duc Phu Tho Co., Ltd 75 2.3.1 The achievements 75 2.3.2 The shortcomings and reasons 75 3.1 The Socio-economic context and development strategies of Viet Duc Phu Tho Co., Ltd in the near future 79 3.1.1 Overview of the Socio-economic context .79 3.1.2 Objectives and development strategy of the company 82 3.2 Solutions for improving the Viet Duc Phu Tho Co., Ltd’s financial situation 84 3.2.1 Reduces store inventory in the company 84 3.2.2 Promote sales, cut management costs in the company .85 3.2.3 Adjustment of short-term debts, reducing debts 87 3.2.4 Improve the efficiency of using fixed capital .88 3.2.5 Improving accounts payable management: 88 3.2.6 Refresher training for labor force .89 3.3 Conditions for implementing the solution 89 CONCLUSION .92 REFERENCES 93 Do Phuong Anh CQ54/11.13 Academy of Finance Graduation Thesis LIST OF ABBREVIATIONS No Abbreviations Full meaning COGS Cost of goods sold NWC Net Working Capital ROA Return on Asset ROE Return on Equity ROS Return on Sales Do Phuong Anh CQ54/11.13 Academy of Finance Graduation Thesis LIST OF TABLE Table 1: Assets and Asset structure of Viet Duc Phu Tho Co., Ltd in 2018,2019 42 Table 2: NWC of Viet Duc Phu Tho Co., Ltd in 2018,2019 .45 Table 3: Capital structure of Viet Duc Viet Duc Phu Tho Co., Ltd in 2018,2019 47 Table 4: Operating performance of Viet Duc Phu Tho Co., Ltd’s in 2018,2019 51 Table 5: Analyze the flow of the company's cash flow of Viet Duc Phu Tho Co., Ltd in 2018,2019 55 Table 6: Some indicators assessing cash flow situation of Viet Duc Phu Tho Co., Ltd in 2018,2019 58 Table 7: Relationship between Receivables and Payables of Viet Duc Phu Tho Co., Ltd in 2018, 2019 60 Table 8: Solvency ratios of Viet Duc Phu Tho Co., Ltd’s in 2018,2019 63 Table 9: Asset utilization efficiency of Viet Duc Phu Tho Co., Ltd in 2018,2019 67 Table 10: Profitability ratios of Viet Duc Phu Tho Co., Ltd in 2018,2019 72 Do Phuong Anh CQ54/11.13 Academy of Finance Graduation Thesis LIST OF FIGURES Figure 1: Production process of Viet Duc 35 Figure 2.2: PP Packaging production process of Viet Duc 36 Figure 2.3: Organization structure of management of Viet Duc 38 Figure 2.4: Organization of the financial – accounting management structure of Viet Duc 39 Do Phuong Anh CQ54/11.13 Academy of Finance Graduation Thesis PREFACE Introduction Nowadays, with the strong development of the world economy, especially when Viet Nam joined the World Trade Organization (WTO), the ASEAN Economic Community (AEC), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), domestic companies not have to compete with other domestic competitors but also multinational companies that have strong financial resources and many experience in the market Therefore, the companies who want to survive in a tough environment like that need to take action The question for most of firms is how to solve the problem of lacking financial resources while still have to maintain an effective business performance They have to focus on finding solutions for improving their financial situations Starting from the importance of financial situation in a company, together with a desire of applying theoretical knowledge to a practical case, after my internship in Viet Duc Phu Tho Co., Ltd, I decided to study on the topic “Financial situation of Viet Duc Phu Tho Co., Ltd” in my graduation thesis Objectives of the study The main objectives of the thesis are identified as follows: Firstly, to overview of financial situation of a company That is, showing a specific viewpoint about the financial situation through evaluating financial statements and factors affecting its business Secondly, to examine the financial situation of Viet Duc Phu Tho Co., Ltd from 2017 to 2019: indicating from general to detailed information about the Do Phuong Anh CQ54/11.13 Academy of Finance Graduation Thesis company’s activities as well as financial situation analysis and evaluation From the financial analysis and specific ratios will be elaborated to conclude whether the company is doing well; its strengths and weaknesses; Thirdly, to propose some solutions to improve the financial situation of Viet Duc Phu Tho Co., Ltd in the near future Scope of the study - Research Topic: Financial situation of a company - Time Period: From 2017 to 2019 - Space: The study was about the case of Viet Duc Phu Tho Co., Ltd Data & Methodology - Data: This study ultilized both primary data and secondary data Primary data were collected during the internship at Viet Duc Phu Tho Co., Ltd Secondary data were extracted from financial statements, official website, and other reliable sources - Methodology: The study used both qualitive and quantitative method to examine the financial situation of Viet Duc Phu Tho Co., Ltd In term of qualitative method, the study, based on collected information, made assumptions and statements about the financial situation of Viet Duc Phu Tho Co., Ltd In term of qualitative method, the study applied three techniques, namely common size financial statements, trend analysis, and benchmarking Using the secondary data, financial ratios were calculated and compared, and concluded The structure of the thesis Do Phuong Anh CQ54/11.13 Academy of Finance Graduation Thesis Besides PREFACE and CONCLUSION, the thesis includes chapters as follows: Chapter 1: Overview of financial position of a company Chapter 2: Financial situation of Viet Duc Phu Tho Co., Ltd Chapter 3: Solutions to improve financial situation of Viet Duc Phu Tho Co., Ltd Do Phuong Anh CQ54/11.13 Academy of Finance Graduation Thesis CHAPTER 3: FINANCIAL SITUATION OF VIET DUC PHU THO CO.,LTD 3.1 The Socio-economic context and development strategies of Viet Duc Phu Tho Co., Ltd in the near future 3.1.1 Overview of the Socio-economic context 3.1.1.1 International context Impacted by prolonged trade disputes, the global economy suffered its lowest growth in a decade, slipping to 2.3 per cent in 2019 A series of instable developments made the world economy in 2019 fall into a state of "losing momentum" Most economies in the world witnessed a decline in economic growth, including the largest economies such as the US, China, and Japan The IMF said that the world economy is decelerating simultaneously, with nearly 90% of countries in the world slowing down this year, and warning that the world economy is developing at the weakest pace since global financial crisis in the period 2008-2019 The world plastic industry has now entered a saturated phase with the growth rate of production output and consumption gradually decreasing to around 4% from 2013 to 2019 Global plastic material production structure is trending to shift to Asia and especially China The reason is that the plastic industry in two regions, Europe and North America, has entered the stormy period reconciling with the high rate of plastic consumption per capita Meanwhile, Asia is a region with low plastic consumption per capita and a high growth rate of plastic demand Asia and China are expected to be areas with fast growth in demand for plastic products in the future The growth potential of demand for plastic products in Asia is huge when the economic growth rate of countries in the region is high Do Phuong Anh 81 CQ54/11.13 Academy of Finance Graduation Thesis and the economic structure is also shifting to industries Industry uses many plastic products such as automotive and electrical-electronics industries The shift to environmentally friendly plastic products Environmentally friendly factors are gradually becoming an essential criterion in the consumption trend of developed markets' products Therefore, converting production into good biodegradable plastic products is an inevitable trend of the global plastic industry 3.1.1.2 In Viet Nam In the context of the world economic trend tending to slow down with risk factors, increasing challenges, Vietnam's economy in 2019 still has many bright points Major balances of the economy were steady; the balance of payment was high; and public debt and budget balance were under control Accordingly, Vietnam's economy in 2019 achieved positive results, GDP growth was estimated at 6.8%, public debt decreased by nearly 8% of GDP compared to 2016 This is an impressive result in the context of the global economy being slowdown In the context that the current world plastic industry has entered a saturated phase with a growth rate in the period of 2000 - 2017, only about 3.7% - 3.8% a year, Vietnam's plastic industry is still in the grew well with a growth rate in the period of 2000 - 2019 about 3.7% - 3.8% a year Besides, Vietnam's plastic industry's output growth in the period of 2010 - 2017 remained at 10.8% Although 2019 marked a year of growth for Vietnam's plastic industry, but the growth rate of output was only 6-7%, slower than 2018 With high growth rate, Vietnam plastic packaging industry has proved to be one of the industries with extremely high development potential In addition, the growth rate is only behind the telecommunications and textile industry, so the plastic industry has been considered as a dynamic industry in the Vietnamese economy However, despite Do Phuong Anh 82 CQ54/11.13 Academy of Finance Graduation Thesis such growth, Vietnam's plastic packaging industry is still facing a lot of pressure and competition from many foreign enterprises producing plastic in Vietnam > As we all know, The Covid-19 epidemic has exerted a major impact on the socio-economic situation of many countries, including Vietnam According to a number of recent studies (Goldman Sachs, Coface, BNP Paribas Cadif, etc.), this epidemic forecast could reduce global GDP by 0.3-0.7 percentage points by 2020, depending heavily on disease control situation According to the International Monetary Fund (IMF), Asia is a special region with a optimistic economic growth outlook of 1% in 2020 In Vietnam, the COVID-19 epidemic has a strong, even serious impact on Vietnam's economy This is a multidimensional impact on all sectors of the economy Firstly, due to the fact that the world economic growth rate is now slowing down, now it is being infected by COVID-19, so the level of deceleration may be higher and have a strong impact on the global economic demand General and trade and investment partners of Vietnam in particular Moreover, COVID-19 disrupts value chains due to production bottlenecks, connectivity restrictions, and trade to prevent epidemics Specifically, Vietnam's manufacturing sector depends heavily on imported raw materials and fuels, mainly China, South Korea and Japan (accounting for more than 56% of the supply of intermediate goods to Vietnam in 2019 ) Due to supply disruption, the production lines of plastic packaging companies such as Viet Duc were severely affected Generally, this time is very difficult for the manufacturing industry, and it is very important for management to take the right actions in order to reduce costs and prevent losses Do Phuong Anh 83 CQ54/11.13 Academy of Finance Graduation Thesis 3.1.2 Objectives and development strategy of the company 3.1.2.1 Financial objectives of the company Revenue and profit in 2020: Because the company's main business activities in 2019 are at a loss, so in 2020 the company is making efforts to improve the production and business situation Although the effect of COVID-19, the company is trying to mobilize all the resources including labors and machineries to complete the projects on time Working Capital management: - Inventory: reducing the remaining of work-in-progress - Accounts receivable: enhancing the recovery of trade receivable, strengthen relationship with suppliers to reduce advanced to suppliers - Cash: ensuring the adequate of cash on hand and suitable cash in bank to meet demand of spending - Reserve enough Working Capital to meet demand in 2020 Coss of goods sold: The direct cost of each unit sold Currently, COGS of the company is still too high Therefore the company is aiming to reduce cost of goods sold to improve its profitability 3.1.2.2 Operational objectives In 2018, a successful year of the economy as well as the packaging industry, the Company has achieved some encouraging achievements as well as many shortcomings In early 2019, the company director met staff and discussed solutions to overcome the shortcomings of 2018 Since then, the board of directors has set goals, directions and plans for 2020 and the future as follows: 2020 will still be a difficult year for Viet Duc Company, especially due to the great impact of Do Phuong Anh 84 CQ54/11.13 Academy of Finance Graduation Thesis the Covid pandemic on the economy, the company's production activities are somewhat affected The company has also made changes in financial management policies as well as marketing strategies to increase revenue in 2020 3.1.2.3 Company's development strategy The company continues to focus on its main area of manufacturing PP plastic packaging because this is the strategic production area of the company from the first days of establishment to the present The biggest orientation of the company is to increase the competitiveness in the market in the context of more and more packaging companies currently on the market, not only in the country but also FDI enterprises The competition is fierce not only in price but also in service quality The Board of Directors has identified the importance of these two factors, so it is always important to look for ways and develop business plans for the company to stand firm in the fierce competition environment Diversify sources of raw materials and materials to have more choices, thereby reducing cost of goods sold, especially stable goods sources Maintain relationships with existing partners and find new partners, build an attractive progressive commission system to increase their productivity Continue to build and develop the company, taking economic efficiency as a measure for the stable and sustainable development of the company Continue investing in expanding the business scope Build up and improve the professional level of all employees, build a reasonable salary system and bonus system to encourage all employees to be loyal and dedicated with the company, ensuring financial stability for them so as to better their physical health to work more effectively Do Phuong Anh 85 CQ54/11.13 Academy of Finance Graduation Thesis 3.2 Solutions for improving the Viet Duc Phu Tho Co., Ltd’s financial situation After a period of internship in Viet Duc Phu Tho Co., Ltd, I have the opportunity to study and observe the practical business operation of the company Based on the above analysis, I have realized the achivements and the limitations in the financial management of the business With my limited knowledge, I would like to introduce some major solutions to improve the financial situation of the company 3.2.1 Reduces store inventory in the company With the characteristics of a manufacturing company, the company's inventories are quite large, accounting for a high proportion of total short-term assets Therefore, the management of inventories so that both business operations of the business are carried out normally without interruption and reduce the total cost of inventory at the lowest level is always a necessary issue for administrators At the same time closely monitoring the amount of backlog for the company to consume, handle In order to reduce inventory and keep inventory costs at a low level while ensuring daily production of the company, the company also needs:  Properly determine the amount of raw materials and goods to be purchased in the period and regular stock of inventories  Determining the appropriate supplier selection, we should choose the large suppliers capable of supplying raw materials quickly to reduce the stockpile of too much material Do Phuong Anh 86 CQ54/11.13 Academy of Finance Graduation Thesis  Regularly monitoring the fluctuations of the market of supplies and goods, thereby forecasting and adjusting the inventory of goods and supplies appropriately  Well organize the storage and preservation of raw materials, materials and goods so as not to cause loss and damage causing waste to enterprises  Regularly checking and mastering the situation of stockpiling inventories, finished products waiting for consumption, promptly detecting stagnant supplies and goods with measures to release stagnant capital  A good method to forecast the need of inventory that the company can use is EOQ model EOQ model is the ideal order quantity a company should purchase to minimize inventory costs such as holding cost, shortage cost and order cost It calculate the company’s inventory reorder point 3.2.2 Promote sales, cut management costs in the company 2020 is expected to be a promising year for Vietnam plastic packaging industry in general as well as the company in particular In the past year, the company's main business operation suffered from losses, so next year the company needs to have plans to increase revenue for the company The Company has to eliminate its weaknesses in 2011̣9 to improve revenue in 2020 This can be done by controlling its cost Cost of goods sold is always very large, accounting for a very high proportion of net sales In particular, the main problem of a lot of plastic packaging firms is that raw materials pay for more than 70% of the cost of the product, meaning that the profitability of the businesses in Do Phuong Anh 87 CQ54/11.13 Academy of Finance Graduation Thesis the business can be impacted by volatility in the price of plastics StoxPlus - the leading financial and business information provider in Vietnam, said that the profit of soft plastic packaging companies has been on a downward trend since 2016 On the other hand, due to the fierce competition in this area, manufacturers are unable to raise product prices Facing these difficulties, the company must save maximum resources, avoid wasting materials, minimize damaged products, and also pay careful attention to the problem of buying and processing raw materials In addition, the company needs to seek a more diverse supply of input materials to increase the initiative of the business At the same time, the company needs to take measures to improve the labor productivity of workers such as increasing rewards for workers who work beyond the plan and schedule; as well as making the most of machinery capacity, The expense of the company's corporate administration consists of executive compensation, depreciation of assets under control, vehiclesmanagement means, refunds, etc With corporate management costs the company should:  The company needs to develop a specific cost plan, strictly manage the implementation of planned expenses, those expenses that exceed the plan must be approved by management  Rearranging the management apparatus to suit the new situation, especially after going through the Covid pandemic, raising the sense of responsibility of each officer, employee and perfecting the management apparatus That is to reduce business management costs to increase profits for the company.Avoid the use of public vehicles for the individual purpose of the company Do Phuong Anh 88 CQ54/11.13 Academy of Finance Graduation Thesis  Good management of office assets and equipment to reduce repair and purchase costs At the same time, implement the government's electricity saving directive to reduce costs  Avoid the use of public vehicles for the individual purpose of the company 3.2.3 Adjustment of short-term debts, reducing debts For companies, capital is an indispensable necessary condition to achieve growth and development goals Lack of capital makes a company loses an important resource for the business process In the past year, the company's shortterm financial debt has remained quite high, accounting for more than half of its short-term debt In order to have capital, the company can apply some measures to mobilize capital: Firstly, to increase debt recovery, the company needs to closely monitor debts Many customers no longer have a relationship with the company, they need to recover immediately to avoid the risk of losing capital If the customer still has a relationship with the company, the recovery by rolling method: withdrawing and proceeding to terminate the old debts, urging the recovery of newly arising debts If done, not only will it create a quick return on capital, improve business efficiency and make the company able to pay its debts At the core of this problem is the rational use of capital resources in production and business activities Secondly: Fully exploit all capital sources in the company to supplement the mobilized capital The company should mobilize capital from bonus and welfare funds, from undistributed profits or mobilize capital from the company's workers and employees in the form of interest payment This is a form of capital Do Phuong Anh 89 CQ54/11.13 Academy of Finance Graduation Thesis mobilization which is quite effective, it not only resolves part of the power, but also enhances the sense of responsibility of employees for the company Besides, due to the influence of COVID-19, some banks are implementing programs to reduce lending interest rates to support and share difficulties of companies under the impact of the pandemic, so the company can exploit resources this However, it must be reasonable and economical because although the interest rate is low, the company has to pay in installments and the company's final business results always include interest expenses which reduce the owners' net profit 3.2.4 Improving accounts payable management: The amount of capital appropriated by the company in 2019 tends to increase and accounts for a high proportion These capital amounts are idle capital, mobilized by the company to serve production and business activities with low or no cost such as payables to sellers and employees In order to improve the efficiency of using this appropriated capital, the company needs: • Organizing the management of appropriated capital for each type of debt For large customers, must keep track of the liabilities for each contract Make sure to monitor the pay due date for timely payment, keeping the reputation with the supplier • When using supplier's commercial credit, the company needs to be cautious because of its high commercial credit interest rates, careful consideration of the supplier's credit terms and financial situation of enterprises to come up with appropriate mobilization decisions 3.2.5 Improve the efficiency of using fixed capital : Do Phuong Anh 90 CQ54/11.13 Academy of Finance Graduation Thesis The company should negotiate with suppliers, the state, and employees to delay payables If the company does not have enough capital to pay for these debts, it should flexibly negotiate with the suppliers to extend repayment period It is necessary to closely monitor and organize the accounting in a fully accurate way of fixed assets to avoid damage or loss of fixed assets Ensure to make full use of the time capacity of all fixed assets to improve the efficiency of the use of fixed assets The company needs to make the right choice in investing more fixed assets to avoid wasteful situation At the same time, the company should reduce fixed assets not used in direct operations, and should liquidate old and outdated assets to increase capital Besides, the company need to maximize capacity and capacity existing fixed assets 3.2.6 Refresher training for labor force The labor force is a decisive factor to the production and business efficiency of a business This is an extremely necessary resource to help turn other inanimate resources into quality and complete products In the process of production and business, labor impacts on all sides, all operating processes from purchasing raw materials, manufacturing products to product consumption process The original creation of all material wealth for society Therefore, the company needs to promote the strength of its workforce, as well as create conditions for them to have opportunities for advancement and development To improve the efficiency of production and business, the company needs:  The company needs to improve labor recruitment standards, ensure the quality of additional recruiting workers Do Phuong Anh 91 CQ54/11.13 Academy of Finance Graduation Thesis  Encourage workers to continuously improve their knowledge to meet technical requirements  There is a fair remuneration policy, based on capacity, on demand Always encourage and take care, timely support for officials and employees in the company 3.3 Conditions for implementing the solution Based on future plans as well as basic solutions to help the company improve production and business efficiency in 2020 Here are some recommendations to facilitate the work, implement effective plans and solutions:  For Government Firstly, reducing taxes and fees, extending tax payment time and exempting some taxes for manufacturing enterprises As we all know this is a time when the economy in general and the manufacturing enterprises in particular were seriously affected by the impact of Covid 19 The source of raw materials depends on more than 70% from China of Enterprises in plastic packaging industry are interrupted Therefore, the State needs to reduce taxes, thereby helping businesses to recover production and increase profits to reinvest in business Specifically, to minimize the impact of the Covid-19 epidemic, the Prime Minister agreed with the Ministry of Finance's proposal on tax, land tax, fees and charges for businesses and business households Secondly, reducing interest rates from banks and credit institutions Before the complicated situation of the Covid 19 pandemic, the State Bank decided to exempt and reduce interest rates to support affected businesses by the pandemic This is a solution that the State Bank of Vietnam has just launched to support affected businesses by the Covid – 19 epidemic Along with that, the State Bank Do Phuong Anh 92 CQ54/11.13 Academy of Finance Graduation Thesis also required credit institutions to provide new loans to customers in accordance with regulations to stabilize production and business Implementing this solution, banks have actively participated in many large credit packages Accompanying with enterprises overcoming difficulties, a series of banks such as Eximbank, Agribank, VPBank also have solutions to support customers who are borrowing capital affected by Covid-19 epidemic Eximbank set aside VND 4,000 billion for preferential loans to small and medium-sized enterprises with interest rate of from 6.99% / year (fixed throughout the loan term for some short-term loan terms) Besides, from Between February 2020 to the end of April 30, 2020, Vietcombank reduced interest rates for VND 1-1.5% / year and foreign currencies from 0.5 to 0.75% / year, depending on terms With new loans, the Bank also reduced interest rates by 1% / year with VND and 0.5% / year with USD It can be said that before the situation of Covid epidemic - 19 was happening very complicatedly and there was no sign of stopping Epidemic diseases have been strongly affecting the socio-economic life, the solutions proposed by the State Bank will contribute to minimize difficulties for production and business activities and stabilize the market  For Viet Duc Co., LTD For the work that the Company is implementing, it is required to ensure the quality of its products and services to build credibility with customers and partners Thereby creating a premise for receiving many orders in the following years Report to the Board of Directors on financial priority to continue investing in buying new and advanced equipment to be capable of operating as well as being competitive in the market Do Phuong Anh 93 CQ54/11.13 Academy of Finance Graduation Thesis Strictly comply with the rules, regulations and regulations on financial management, internal payment process, regulations on management of machinery and equipment, that the Company has issued Stick to the work according to the plan, promptly report to the staff for resolute At work requires all employees to improve responsibility, closely work, creative research to improve labor productivity, ensure better and better product quality Strengthen foreign affairs to give the company a foothold in the block of competing businesses CONCLUSION Providing solutions to improve the financial situation is a difficult task but it is also a regular task of every business When the manufacturing industry in Vietnam is increasingly competitive, this is important for a domestic company to make its financial situation better to survive My graduation thesis pointed out the role of financial management in maximizing profits, reducing costs and solutions to achieve these objectives in the specific case of Viet Duc Phu Tho Co., Ltd After nearly months of internship at the company and by evaluating theoretical knowledge and applying it to specific practical conditions, it can be seen that the company has potential but still has some financial problems Due to certain limitations in practice and knowledge, the thesis cannot avoid shortcomings, the solutions presented can still be theoretical To conclude, I would like to send my most sincere thanks to my experienced and enthusiastic supervisor Ph.D Tran Thanh Thu – a lecture in the faculty of Corporate Finane and all the managers, staffs in Viet Duc Company who has Do Phuong Anh 94 CQ54/11.13 Academy of Finance Graduation Thesis helped me during my period of working at company, my friends and family for supporting me in completing this internship The author of the thesis Do Phuong Anh REFERENCES - Prof Dr Ngo The Chi - Assoc Prof Dr Nguyen Trong Co (2015), Textbook “Corporate Finance Analysis”, Financial Publishing - Dr Bui Van Van – Dr Vu Van Ninh (2015), Textbook “Corporate Finance”, Financial Publishing - S R., R W., B J (2012), “Fundamentals of Corporate Finance”, McGraw-Hill - Financial Statement of Viet Duc Phu Tho Co., Ltd in 2018,2019 - Websites: - http://www.nhadautu.vn - http://www.investopedia.com - http://www.vietnam-briefing.com - Plastic industry report in 2019 of FPTS - Other thesis with similar topic Do Phuong Anh 95 CQ54/11.13 ... structure of Viet Duc Phu Tho Co., Ltd .38 2.1.4 The company? ??s advantages and disadvantages 40 2.2 The financial situation of Viet Duc Phu Tho Co., Ltd 41 2.2.1 Viet Duc Phu Tho Co., Ltd’s... has caused a lot of difficulties for the company, affecting the production process of the company 2.2 The financial situation of Viet Duc Phu Tho Co., Ltd 2.2.1 Viet Duc Phu Tho Co., Ltd’s assets... 1.1.2 Financial management 1.2 Financial situation of a company 11 1.2.1 Definition of financial situation of a company .11 1.2.2 Assessment of financial situation of a company