Nâng cao hiệu quả quản lý tài chính theo mô hình công ty mẹ công ty con ở công ty đầu tư và phát triển nông nghiệp hà nội

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - ĐÀO NGUYÊN ĐẶNG IMPROVE THE FINANCIAL MANAGEMENT EFFICIENCY OF HANOI AGRICULTURAL DEVELOPMENT AND INVESTMENT COMPANY., LTD NÂNG CAO HIỆU QUẢ QUẢN LÝ TÀI CHÍNH THEO MƠ HÌNH CÔNG TY MẸ - CÔNG TY CON Ở CÔNG TY ĐẦU TƯ VÀ PHÁT TRIỂN NÔNG NGHIỆP HÀ NỘI LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2018 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - ĐÀO NGUYÊN ĐẶNG IMPROVE THE FINANCIAL MANAGEMENT EFFICIENCY OF HANOI AGRICULTURAL DEVELOPMENT AND INVESTMENT COMPANY., LTD NÂNG CAO HIỆU QUẢ QUẢN LÝ TÀI CHÍNH THEO MƠ HÌNH CƠNG TY MẸ - CƠNG TY CON Ở CƠNG TY ĐẦU TƯ VÀ PHÁT TRIỂN NÔNG NGHIỆP HÀ NỘI Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS TRỊNH NGỌC HUY HÀ NỘI - 2018 COMMITMENT The author pledges that the results of the research in the thesis are the results of the author's own work obtained primarily during study and research and not yet published in any other research programs by others Research results and materials of others (quotations, forms, tables, formulas, graphs and other materials) used in this thesis have been approved and cited by the authors in detail I am fully responsible to the Board for thesis defense, the Faculty of Business Management and the law for the above commitments Hanoi, day month 2018 Dao Nguyen Dang i ACKNOWLEDGEMENTS Throughout the study, research and graduation thesis, the author has gained a lot of valuable and practical knowledge of the training program, the interest and support of the teachers, Board of Management of Hanoi Agricultural Investment and Development Company and colleagues in the Company With gratitude and gratitude, the author would like to thank the teachers and students of Vietnam National University, Hanoi, especially Dr Trinh Ngoc Huy who have spent a lot of time and enthusiasm to guide and help with the valuable comments and suggestions to complete the thesis The author would like to thank the Board of Management of Hanoi Agricultural Investment and Development Company, colleagues in the company where the author has been working, have created favorable conditions, helped with time, provided data, information for the author to complete the thesis Sincerely thank friends and family for helping the author throughout the research period Author Dao Nguyen Dang ii TABLE OF CONTENTS COMMITMENT i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS .iii LIST OF ABBREVIATIONS IN THE THESIS vi LIST OF TABLES, DIAGRAMS vii INTRODUCTION Chapter SOME BASIC MATTERS OF FINANCIAL MANAGEMENT IN THE MODEL OF THE HOLDING COMPANY-SUBSIDIARIES 1.1 SOME BASIC CONCEPTS 1.1.1 Corporate Finance in the Company 1.1.2 The company operates in the form of holding company - subsidiaries 1.1.3 Financial management of the company operating under the model - holding company - subsidiaries 11 1.2 CONTENTS, REQUIREMENTS AND FACTORS AFFECTING THE FINANCIAL MANAGEMENT UNDER THE MODEL OF HOLDING COMPANY-SUBSIDIARIES 12 1.2.1 Financial management of the company is organized in the form of holding company - subsidiaries 12 1.2.2 Financial management requirements in the model of holding company subsidiaries 27 Chapter CURRENT STATUS OF FINANCIAL MANAGEMENT IN HADICO GROUP UNDER THE MODEL OF HOLDING COMPANY-SUBSIDIARIES 30 2.1 OVERVIEW OF HADICO GROUP 30 2.1.1 Formation and development of Hadico Group 30 2.1.2 Functions, business tasks and organizational structure of the Hadico Group 30 2.2 CURRENT STATUS OF FINANCIAL MANAGEMENT OF HADICO GROUP UNDER HOLDING COMPANY - SUBSIDIARIES 36 iii 2.2.1 Management and use of capital and assets 36 2.2.2 Management of revenues, costs at Hadico Group 49 2.2.3 Result Management and Profit Distribution at Hadico Group 51 2.2.4 Financial supervision at Hadico Group 54 2.3 FINANCIAL REVIEW OF FINANCIAL MANAGEMENT OF HADICO GROUP UNDER THE MODEL OF HOLDING COMPANY - SUBSIDIARIES 56 2.3.1 Success and lessons learned 56 2.3.2 Limitations, weaknesses and causes in financial management at Hadico Group 58 Chapter DIRECTIONS AND SOLUTIONS TO PERFECT FINANCIAL MANAGEMENT EFFECIENCY IN HADICO GROUP 62 3.1 DIRECTIONS TO PERFECT FINANCIAL MANAGEMENT IN HADICO GROUP UNDER THE HOLDING COMPANY - SUBSIDIARIES 62 3.1.1 Development orientation of the company from now to 2020, vision toward 2025 62 3.1.2 Some specific objectives of the Company until 2020 65 3.1.3 Great directions in perfecting financial management in Hadico Group 65 3.2 SOME BASIC SOLUTIONS TO PERFECT THE FINANCIAL MANAGEMENT IN HADICO GROUP UNDER THE MODEL OF THE HOLDING COMPANY-SUBSIDIARIES 69 3.2.1 Solutions to improve the internal financial management regime of the holding company 69 3.2.2 Strongly decentralization to member companies 73 3.2.3 Training human resources and perfect the policy of recruiting, using and remuneration of employees 75 3.2.4 Investment in technical facilities and technology renovation 77 3.3 SOME RECOMMENDATIONS FOR HADICO GROUP IN IMPLEMENTING GOOD FINANCIAL MANAGEMENT 78 3.3.1 Recommending the State for mechanisms and policies 78 3.3.2 Recommending to the Hanoi City People's Committee 80 iv CONCLUSIONS 81 REFERENCES 82 v LIST OF ABBREVIATIONS IN THE THESIS No 10 11 12 13 14 15 16 17 Symbol CBCNV CPH CTCP DMDN DNNN HDQT HDTV HTPT QLDN QLTC TCDN TCKT TCT TNHH TSCD TSLD XN Original meaning Employees Equitization Joint Stock Company Enterprise innovation State owned enterprises Board of Management Members’ Council Dependent accounting Corporate management Financial management Corporate finance Accounting finance Corporation Limited liability Fixed assets Current assets Enterprise vi LIST OF TABLES, DIAGRAMS Diagram 1.1: The organizational structure of the company operating under the model of holding company- subsidiaries 10 Diagram 2.1: Organizational structure of Hadico Group under the model of holding company-subsidiaries 35 Table 2.1: Major economic indicators of the Company for years (2015-2017) 36 Table 2.2: Summary of state capital (budget and self-supplemented capital) of the company from 2015-2017 38 Table 2.3: Summary of capital data of equitized companies as of 31/12/2017 39 Table 2.4: Company's borrowing and debt repayment schedule from 2015-2017 40 Table 2.5: Company's capital mobilization from 2015-2017 41 vii INTRODUCTION Urgency of the topic Since the third conference of the 9th Party Central Steering Committee has issued a resolution to continue reorganizing, renovating, developing and enhancing the efficiency of SOEs, of which the policy of piloting some SOEs to operate under the model of holding company - subsidiaries Hanoi Agricultural Investment and Development Company (HADICO GROUP) officially moved to operate as a model of holding company - subsidiaries under the notice No 378/TTg-DMDN dated 02/03/2010 of the Prime Minister After more than seven years of restructuring and operating under the model of holding company - subsidiaries, the financial management of the Hadico Group has been exposed to a number of shortcomings that have resulted in poor business results and reveals the inadequacy of competition among enterprises in the same industry And also, many senior executives of the Company are entangled in labor shortage due to weak financial management Therefore, there is a need for a revised and finalized review of the financial management for the enterprises in general and with the Hadico Group as an urgent need In order to contribute with the company to solve the above requirements, the topic "Improving financial management efficiency under the model of holding company - subsidiaries of Hanoi Agricultural Investment and Development Company" was chosen as the object of the thesis Research situation relating to the topic Since the holding company - subsidiaries model has been applied in Vietnam in recent years, the works on the financial management under the model of holding company - subsidiaries is not much Regarding the research topic, there are some main works as follows: - Tran Duc Chinh: Completing the financial management mechanism of Vietnam National Petroleum Group Doctoral thesis in 2015 With this work, the author has studied the issues relating to the financial management at the Vietnam National Petroleum Group, summarizing, extracting 3.2 SOME BASIC SOLUTIONS TO PERFECT THE FINANCIAL MANAGEMENT IN HADICO GROUP UNDER THE MODEL OF THE HOLDING COMPANY-SUBSIDIARIES 3.2.1 Solutions to improve the internal financial management regime of the holding company 3.2.1.1 Issuing policies and documents on financial management for uniform implementation in the company In the combination of holding company- subsidiaries, in order to facilitate the member units in the company to actively search for the market for production and business activities, capital and operating efficiency, the holding company should set up to synchronously and closely detail the policies and regulations of all activities (including financial matters) for uniformity in the whole group, giving the counseling sections the mechanism to be independent and active in the work assigned The holding company should continue to use, improve and issue regulations: - Regulation on production and business management; Decentralization of financial accounting for dependent companies - Regulations on norms of economic and technical norms such as norms of fuel consumption, tires, batteries, replacement materials; norms, routine maintenance procedures, major repairs; - Financial regulations, statistical reports, long-term planning; Regulation on investment, distribution of internal revenue; - Regulations on salaries, bonuses and allowances; - Pending regulations such as customs declaration, traffic instructions, brokerage commissions and job creation services, marketing and conferences, contracting products, contracting works; - Regulation on coordination of production and business activities between the holding company and its subsidiaries and subsidiaries 3.2.1.2 Improvement of the company's capital mobilization policies - The holding company and its member units should diversify capital mobilization channels Overcoming the situation of state capital and credit loans 69 remains the main source of funding for the Company because it is no longer suitable to the market mechanism, especially when Vietnam joins the World Trade Organization Therefore, the company must diversify capital mobilization channels, especially capital mobilization through the issuance of shares, corporate bonds According to the roadmap, the holding company will be equitized in early 2019, so it is necessary to calculate the charter capital so that the share capital reaches at least 30% of business capital to meet the capital demand for development investment For subsidiaries, it is also necessary to balance the charter capital and business requirements to issue shares to ensure operating capital Make the mobilization of idle capital in staff, commercial credit capital To intensify the attraction of capital sources through business cooperation contracts, forms of joint venture and association To attach importance to, and further develop foreign loan capital, to raise capital from low-cost capital sources, such as the preferential credit program, to directly source direct investment capital indirectly, call on credit institutions to participate in the implementation of investment projects to reduce the burden of capital for each project - Develop a rational mechanism to enhance the exploitation of internal capital In the model of holding company-subsidiaries, the exploitation of internal capital is popularly applied, thereby promoting its own resources, reducing the dependence on the outside, especially when there are changes of financial market Exploiting internal capital includes exploiting the internal capital of each company, from raising funds of the company such as depreciation fund, development investment fund, bonus fund, welfare fund to determine the dividend rate as well as the use of the remaining income after distribution In addition, the internal capital mobilization also includes the movement of capital among the member units of the group, between the holding company and the member companies in various forms such as internal credit, assets, internal investment, capital regulation The internal capital flow creates the ability to regulate and optimize the financial resources of the complex This is a financially unique feature of the combinatorial model, which the corporation can not afford 70 - Form a financial company or finance department to carry out the function of raising capital and regulating business capital in the company With a large scale, diverse professions and strong internal links, the role of a financial company is indispensable It is necessary to set up a finance company to regulate capital in the whole complex, to make the most of idle capital internally, to create opportunities for associates and investors for investment opportunities for the combination The operational mechanism and method of coordination between the financial company and functional departments of the holding company and its subsidiaries should be clearly and reasonably defined, such as clearly delineating the functions of the finance department Existing accounts with financial companies to avoid problems and avoid difficulties that may arise in the coordination of activities of these professional departments Financial companies must be really creative to exploit the internal financial market in the complex and expand the attraction of external capital to the extent permitted In addition, the rapid modernization of financial companies, establishing the direction of its operation in accordance with the strengthening, strengthening and development of the system of investment funds, integrate into the domestic capital market and internationalization, facilitating the accumulation and concentration of funds for the plans of the consortium 3.2.1.3 Finalizing the financial norms system The company needs to continue finalizing the cost norms to properly manage each project At the same time, the company also needs to analyze the factors, the existing production process but not reasonable, not optimal from which to find a way to overcome, gradually build a reasonable and optimal production process The goal of building norms is to save costs but still ensure safety factors in production In the next few years, the company needs to complete the following norms: - Fixed asset depreciation expense based on time spent with assets that are regularly operating; with special assets, means of transport according to the number of shipments, according to the Km of operation - The fixed asset depreciation expense for management such as computers, printers, tables and chairs, office equipment for a fixed period of time, including repair 71 For individuals using assets in excess of prescribed limits, the company should have sanctions that regulate user’s responsibility for recovery In contrast, individuals who save money should be rewarded promptly and transparently by the Company, Encourage workers to better manage their assigned assets 3.2.1.4 Improvemment of the internal distribution mechanism of the company When switching to the model of holding company-subsidiaries, the current profit distribution mechanism applied in the company will no longer be suitable In the new form, the State is just one of many owners, being a shareholder like other shareholders, the State is only a shareholder holding majority shares and therefore has more voting rights Therefore, the development of a business distribution mechanism will depend on the capital contribution of each shareholder The holding company only receives dividends corresponding to the capital contribution, can not determine the distribution of profit after tax of the subsidiary The holding company will receive an income from the investment in the subsidiaries, no longer have the mechanism to pay fees to the higher authorities The appropriation and use of funds shall be made in accordance with the charter, in accordance with the decision of the general meeting of shareholders, on the basis of creating harmony between the parties When the holding company wishes to use and transfer funds of its 100% owned subsidiary, it must follow the principle of fully respecting the independence of the member companies and the credit mechanism developed by the holding company This mechanism should create incentives for member companies to voluntarily take the initiative in coordinating and circulating capital for their own benefit and for the benefit of the whole group rather than any non-economic pressure - It is necessary to remove the current distribution of profits for the company's DPT members The distribution of profits and funds should be based on the results of the enterprise, the level of contribution to ensure the benefits to the unit Thus encouraging and motivating business units, realizing the rights and obligations from the business, limiting dependence on the holding company 72 3.2.2 Strongly decentralization to member companies 3.2.2.1 Capital mobilization decentralization The decentralization of capital mobilization for subsidiaries and affiliates should be carried out in the direction of expanding the autonomy and accountability of member companies in exploiting, mobilizing and utilizing capital When the holding company-subsidiaries is put into operation will receive little direct support from the State, commercial credit will play a particularly important role in providing financial support to the combination Therefore, the group should develop a financial mechanism in the direction of maximizing the autonomy and self-responsibility of the member companies in the process of mobilizing capital for production and business Create conditions for member units to maximize the resources available to achieve the highest efficiency The member companies of the group may themselves decide on the mobilization of capital, the source of self-mobilization, the form of mobilization and the expenses for mobilization for development investment, according to the regulations and sanctions prescribed by the holding company.This mechanism will create flexibility and initiative for leaders of member units to be able to catch business opportunities in time, instead of having to browse through many levels as before leading to costly time This causes bad psychology for the subsidiaries and the combination The holding company should play the role of supporting the development of member units On the other hand, the member units will have to attach their responsibility to the efficiency of the loan, be responsible for the profitability of the capital 3.2.2.2 Decentralization of managing revenues, costs - For the subsidiaries, the holding company can only approve the representative of the state capital to enhance supervision and evaluation of the management of revenue, expenses, profit and distribution of profit on capital contribution in each of the subsidiaries - For dependent companies, in order to take initiative in the management board and the assisting apparatus to raise the operational efficiency, the holding company should study and formulate a decentralization mechanism for the scope of 73 activities and coordination between units to avoid local situation And also, the charge rates and service charges shall be set up for dependent units when implementing works of the holding company, setting the norms of wage expenses on the effect of production, the consumption norms raw materials, fuels and other norms to serve as the basis for inspecting and supervising the operation of these units Create the order in management but not the operating conditions and clear responsibilities for the leaders of units To be able to stand on the market, the units need to be dynamic creativity, to have products of high quality, low price, good service, flexible mode of service Therefore, the allocation of autonomy in revenue management, the cost of the member units will help the business units to be better, to determine their existence in the market is fierce 3.2.2.3 Completion of the pawn mechanism Implementing targeted management through pawn-out is an advanced approach that is often used in the model of holding company-subsidiaries Pact mechanism is designed to step by step change the mechanism and decentralize the management and strengthen the management responsibility of the member units so that the holding company can focus resources on other strategic objectives instead It must manage the operation of the member unit In addition, the pawn-out mechanism also creates an active role in the management, in relation to solving affairs, enhancing the management, saving, controlling costs and raising the economic efficiency of the Company In order to so, it is necessary to focus on gathering and evaluating the management of production costs in the past, to check the reality in order to apply the form of contracting costs, field regime associated with the productivity of TB To increase the productivity, to ensure the progress of transportation at the request of the owner, to associate production costs with the responsibility of supervision and inspection of Employees The contents to be deployed in the company as follows: 74 - Shorten the direct service expenses including wages, field costs, transportation, fuel, management costs - Expenses for package production, such as customs declaration fees, traffic instructions, brokerage commissions, business transactions Costs associated with contracting results of production and business activities to employees are also tools to encourage work spirit, creative intelligence, increase productivity and increase the labor intensity of employees in the application, especially the units with high business efficiency To put the pawn work in order, periodically organize the analysis of production costs and production costs of the company in order to detect weaknesses in management, factors that increase the cost, the successful price transfer, to summarize the experience and timely remediation, to put the quality of the poaching increasingly higher 3.2.2.4 Transformation of the operation model of the dependent accounting units At present, the company has many dependent accounting enterprises, which makes financial management difficult, especially the initiative and selfresponsibility of the Board of Management and Chief Accountant of the application Membership is not available Therefore, it is necessary to turn the dependent enterprises into one-member limited liability companies and owners of the holding company, Hadico Group 3.2.3 Training human resources and perfect the policy of recruiting, using and remuneration of employees At present, the competition in the market of economic sectors is increasingly fierce, fierce The training of human resources, enhancing the competitiveness of the company is the decisive factor for success or failure in the economic development of the unit, so it needs to be considered and implemented regularly An enterprise with all the elements but lacking in human resources can not create great value, which also means that enterprises will operate ineffectively and will fail In the context of the commercialization of state-owned enterprises, the trend of globalization and the demand for quality of service, enterprises will have access to many effective ways of 75 scientific management of water companies In addition, the procedures comply with international standards To that, the Hadico Group needs to: - Set up a contingent of employees with a rational structure and good quality, especially the contingent of leading employees To have mechanisms and policies to ensure the detection, evaluation, recruitment, training, fostering, rewarding and rewarding of virtuous and talented people - The staff must be recruited and arranged to meet the requirements of the job and must assign clear tasks and adequate powers to the heads of each unit or department Adequately promoted and arranged staff in each position from the point of view there is a down and also require very high responsibility for employees when not completed tasks, work stagnation or wrong faults must be dealt with strictly, promptly, including substitutions Develop specific regulations on personnel work to meet this requirement in time Contacting universities and professional organizations to train, retrain and improve professional skills such as import - export - foreign language - information technology - training technical workers, good workers advanced management methods of foreign countries to apply for the unit To take the initiative in human resources so that when the State promises to expand international cooperation relations, the professional staff at the company is capable of conducting business relations and business cooperation with foreign countries - Continue to study and renovate the promulgation of salary regulations promulgated in order to promote the positive and motivate young people with professional skills, technical skills, peace of mind to work in the long term This is especially true when many foreign companies invest in Vietnam, which creates a shortage of highly skilled, gray-collar workers This is the foundation for the employee to work hard, stick with the team, attract and retain qualified people - Ensure a staff of staff with good financial analysis, professional business performance, and help the company identify effective business strategies and timely utilization business development and profitability for the company 76 3.2.4 Investment in technical facilities and technology renovation 3.2.4.1 Promotion of the renewal of technologies, means and modern equipment in service of production Over the past years, the Company has applied innovative methods of the Party and State into the practice of the Company to help the state economy maintain the leading role in the socialist-oriented market economy The company has prioritized investments in expanded reproduction, innovative technology and modernization This is a great solution in promoting the internal strength in order to step by step remove the difficulties in production and business, is the determination to renew from the weak points, difficulties of the employees in the company With the policy of balance between accumulation and consumption, cost savings by applying modern advanced technology, the company should quickly depreciate existing assets in order to accumulate capital for technological innovation, Reproduce the expansion, develop the production force, create a strong upside, and compete with domestic companies 3.2.4.2 Applying information technology in general management and financial management in particular In order to improve the quality of management and reduce management costs, the Company should pay attention to and promote the application of information technology software for management and operation The company can use the existing computer system or technology centers in and out to develop and apply advanced management and management software in the direction, management and operation Continue to use and improve the existing management software such as accounting management software, salary and income, fixed asset depreciation, material management, inventory statistics, archives, software 3D applications, design of cargo handling operations, webside application companies to information, business executives To invest in the construction of other management and technical softwares such as enterprise management software, customs clearance and import of goods, 77 balancing of barges when loading for overweighted and oversized packages, operation management, vehicle technical management The application of the management information system will provide timely and accurate information to management on the financial status and performance of the enterprise, help managers to control and analyze the activities properly of the unit This system will help managers identify action plans to reduce production costs, improve linkages in the business process (from ordering, shipping scheduling, site administration, tracking schedule, settlement and collection of customer debt ), improve the ability to control business activities in order to limit the potential incidents in the business process, improve the quality of service to customers Building management information systems must be combined with the promotion of business analysis skills and corporate finance for managers and professional staff 3.2.4.3 Research of new products and services to boost production In addition to its existing business functions, the company needs to expand and expand its multi-disciplinary business, focusing on high-tech agricultural products, both in livestock and in joint-venture farming with its water partners In addition to the developed agriculture: France, Germany, Israel, Netherlands 3.3 SOME RECOMMENDATIONS FOR HADICO GROUP IN IMPLEMENTING GOOD FINANCIAL MANAGEMENT 3.3.1 Recommending the State for mechanisms and policies - Regarding the financial work: To clearly determine the ownership of assets of enterprises, to remove the intervention of state agencies in matters of property of enterprises - Continue to improve the mechanism, policies and procedures for SOEs restructuring in a simpler and more streamlined manner, reducing administrative procedures, creating favorable conditions for equitization units, especially the process asset inventory, debt identification, financial processing and valuation Use the services of financial markets and the real estate market to value the business Modified policies and mechanisms should enhance the responsibilities of relevant 78 agencies in the process of business reorganization, enhancing transparency, and market transparency in the implementation process - The selling price of preferential shares to the employees in the first issuance when the equitization of enterprises is still many and limited With the number of preferred shares a year of work is purchased 100 shares, with the average auction price, the labor is difficult to buy and if the purchase is also only a relatively small proportion Therefore, the government should reconsider this issue, may increase the number of shares for one year in the state sector, consider the share price in favor of workers, allow workers Poor people are deferred so that the new employees really master, long-term attachment to the enterprise, is the driving force for sustainable enterprise development in the socialist-oriented market mechanism - The State shall orient and create an environment for various types of enterprises to develop and conduct business effectively and support small and medium enterprises Implement the program to assist enterprises in the areas of strategy, planning, finance, land lease and in the training of human resources, trade promotion, promotion and investment promotion Unify the leading role of the state economy and the core role of SOEs should be based on the need to improve the socio-economic efficiency of the main; To step by step create a fair production and business environment among various economic sectors; Clearly state the function of State management and management of the owner with the function of business administration of the enterprise; abolish the governing mechanism; To clearly define the rights of state agencies performing the function of representing owners of SOEs; restructure capital and assets in a positive and effective manner, reduce bad debts and assets; resolutely and expeditiously abolish subsidy, unreasonable protection, privilege and monopoly in the business of SOEs - It is necessary to study and apply international standards and practices in combination with the inheritance of the advantages of the current financial mechanisms and mechanisms so as to formulate appropriate financial mechanisms for the holding company model - a subsidiary in Vietnam, which must first be consistent with the transformation process 79 3.3.2 Recommending to the Hanoi City People's Committee - To exercise the right to represent the owner at the enterprise by supplementing the deficit of the State capital as compared with the regulations on the reorganization of the enterprise - Make appointment of the Board of Supervisors Get the Board of Supervisors is professional with regard to enterprises need management, but they come from at least 02 other State Owned Enterprises The City People's Committee needs to pay compensation and other benefits so that the inspection can be objective and the Board of Supervisors can dare to report problems and problems at the enterprises they are tasked with 80 CONCLUSIONS Hadico Group is a state-owned enterprise under the Hanoi City People’s Committee, which mainly deals in agriculture The company is operating under the model of holding company - subsidiaries, has achieved many outstanding achievements in the field of agriculture and services, is a strong unit in the agricultural sector These results have been achieved because the company has innovated management methods, invested in innovating modern equipment and advanced equipment, effectively using capital sources to bring high revenue and profits Accumulating at the same time, ensuring the life of staffs has been improved Converting the companies into parent-subsidiaries is an objective necessity and a pressing requirement in the process of SOE reform in our country today However, in order for companies to operate effectively in the new paradigm, there must be a clear and complete change in the management mechanism, especially the financial management mechanism In spite of the conversion, the management of the Hadico Group has revealed some shortcomings and is no longer suitable to the market mechanism Therefore, the improvement of the mechanism of quality management is one of the important contents to make the transformation of the holding company - subsidiaries more complete and effective The thesis has tried to present the problems in the logic and the above Despite the achievement of certain results, due to time constraints and limited qualifications, the thesis was just at the discursive and problem-solving level, not yet leading to the creation of a comprehensive program for the roadmap with details, specific It is hoped that some of the proposals and solutions mentioned in the thesis could contribute to the improvement of the company's financial management mechanism following the model of holding company-subsidiaries in the coming time In order for these solutions to be utilized in practice, the author wishes to have more detailed research on the following 81 REFERENCES Tran Duc Chinh, Finalization of financial management mechanism of Vietnam National Petroleum Group Doctoral thesis in 2015 Tran Tien Cuong - International Theories and Experiences - Appying to Vietnam Economic Groups 2015 Pham Van Duan - Corporate Finance Report and Analysis - Transportation Publishing House - 2010 Bui Van Nhu; Vu Van Ninh – Corporate Finance Curriculum - Financial Publishing House - 2013 Nguyen Quoc Khanh - Corporate Finance Management - National University Publishing House, Ho Chi Minh - 2017 Vu Xuan Tien: Financial Supervision for State Owned Enterprises: New regulations have new vitality Economic and Forecast Journal No 17 (Sep/ 2015) Phung The Tinh Completing the financial management mechanism in state corporations following the model of economic group in Vietnam Doctoral thesis in 2012 Nguyen Trung Truc - Business Finance Curriculum - Ho Chi Minh Economic Publishing House - 2015 Pham Quang Trung – Corporate Financial Management Cirriculum - National Economics University Publishing House, 2009 10 Central Institute for Economic Management (CIEM): Economic group and issues of economic group Project of the Institute in 2007-2008 11 Decree No 09/2009 /ND-CP of the Regulation on financial management of state owned enterprises and management of state capital invested in other enterprises 12 Enterprise Law in 2014 13 State Owned Enterprise Law in 2003 14 Accounting Law No 88/2015; Accounting Law No 03/2013; Accounting Standards System 15 Decree No 69/2014 /ND-CP on state economic groups and state corporations dated 15/07/2014 82 16 Decree No 09/2009 /ND-CP issued by the Government promulgating the Regulation on management of State companies and management of state capital invested in other enterprises 17 Government’s Decree No 71/2013 /ND-CP on state capital investment in enterprises and management level for enterprises with 100% charter capital 18 Circular No 242/2009 /TT-BTC of the Ministry of Finance guiding the implementation of a number of articles of the State management regulation of State companies and management of state capital invested in other enterprises issued together with Decree No 09/2009 /ND-CP 19 Circular No 220/2013 /TT-BTC guiding Decree No 71/2013/ND-CP on state capital investment in enterprises and management level for enterprises with 100% charter capital of the Minister of Finance 20 Decree No 61/2013 /ND-CP of the Government promulgating the Regulation on Financial Supervision and Evaluation of Financial Performance and Publicity of State Owned Enterprises and enterprises with state capital 21 Decree No 20/2018 /ND-CP dated 05/02/2018 on the organization and operation of the Vietnam National Chemical Group 22 Hanoi Agricultural Investment and Development Company: Financial statements from 2015-2017 23 General Administration Department: Legal documents on Hadico Group 24 Charter of organization and operation of the Company operating under the model of the holding company - subsidiaries issued in conjunction with Decision No 5267 / QD-UBND dated 25/10/2010 of the Hanoi City People's Committee 25 Financial regulation operating under the model of the holding company subsidiaries issued in conjunction with Decision No 5390 /QD-UBND dated 10/12/2010 of Hanoi City People’s Committee 83 ... HIỆU QUẢ QUẢN LÝ TÀI CHÍNH THEO MƠ HÌNH CÔNG TY MẸ - CÔNG TY CON Ở CÔNG TY ĐẦU TƯ VÀ PHÁT TRIỂN NÔNG NGHIỆP HÀ NỘI Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH... GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - ĐÀO NGUYÊN ĐẶNG IMPROVE THE FINANCIAL MANAGEMENT EFFICIENCY OF HANOI AGRICULTURAL DEVELOPMENT AND INVESTMENT COMPANY., LTD NÂNG CAO HIỆU QUẢ QUẢN... Agricultural Investment and Development Company Limited - Vietnamese short name: Công ty Đầu tư Phát triển Nông nghiệp Hà Nội - English name: Hanoi Agricultural Development and Investment Company.,