i
THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY
Socialist Republic of Viet Nam Republic of Philippines
TO THI NGOC LAN
(ENGLISH NAME: JENNY)
FINANCIAL MANAGEMENT SYSTEM OF VIETNAM POSTS AND
TELECOMMUNICATIONS GROUP AND ITS EFFECTS ON FINANCIAL
EFFICIENCY OF THE COMPANY
DOCTORAL DISSERTATION
AUGUST, 2013
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THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY
Socialist Republic of Viet Nam Republic of Philippines
TO THI NGOC LAN
(ENGLISH NAME: JENNY)
FINANCIAL MANAGEMENT SYSTEM OF VIETNAM POSTS AND
TELECOMMUNICATIONS GROUP AND ITS EFFECTS ON FINANCIAL
EFFICIENCY OF THE COMPANY
DOCTORAL DISSERTATION
ADVISER: DR. JOANNA PAULA A. ELLAGA
AUGUST, 2013
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ACKNOWLEDGMENT
I would like to express my gratitude to Dr. Joanna Paula A. Ellaga and Dr.
Ooi Pit Tatt for being outstanding advisors and excellent professors. Their constant
encouragement, support, and invaluable suggestions made this work successful. They
have been everything that one could want in an advisor. I would like to thank them for
providing me ideas on the research methodology and valuable insights on financial
management system.
I am deeply indebted to Dr. Nguyen Thanh Hai and Ms. Trinh Thi Hieu -
International Training Center, Thai Nguyen University of the Socialist Republic of

CHAPTER II: 9
RELATED LITERATURE 9
2.1. Review of related studies 9
2.1.1. Foreign studies 9
2.1.2. Local studies 10
2.2. Theoretical and conceptual framework 12
2.2.1. Enterprise finance 12
2.2.2. Financial management system 16
2.2.3. Financial efficiency 23
2.3. Research Paradigm 24
CHAPTER III: 28
METHODOLOGY 28
3.1. Research Design 28
3.2. Time and Place of Study 28
3.3. Data collection method 28
3.4. Population, Sample and sampling technique 29
3.5. Research instrument 29
3.6. Data gathering procedure 30
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3.7. Data processing method 30
3.8. Statistical treatment 31
CHAPTER IV: 33
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 33
4.1. Profile of VNPT 33
4.1.1. Type of company 33
4.1.2. Size of company 34
4.2. Current status of financial management system of VNPT from 2010 to 2012
37
4.2.1. Capital mobilization in VNPT 37
4.2.2. Capital management and use in VNPT 47

State owned group, which has no small constraint on the financial effectiveness of
economic groups in VietNam.
To contribute to the enhancement of financial efficiency of economic groups in
VietNam in the new situation, it is compulsory to research, innovate financial
management system of economic groups.
In expectation of contributing some ideas about perfecting financial
management system of State owned economic groups, I, the author would like to
choose the subject:
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“FINANCIAL MANAGEMENT SYSTEM OF VIETNAM POSTS AND
TELECOMMUNICATIONS GROUP (VNPT) AND ITS EFFECTS ON
FINANCIAL EFFICIENCY OF THE COMPANY” for this dissertation.
With such an approach to issues, the main objectives of dissertation is study
the current status of system financial management of VNPT and its effect on financial
efficiency of company. The specific objectives of this study are: (1) To identify the
profile of the company in terms of the following: Type of the company and Size of the
company; (2) To determine the current status of financial management system of
VNPT in terms of the following: Capital mobilization, Capital management and use,
Asset management, Revenue, expense and profit distribution management; (3) To
assess the financial efficiency of VNPT in terms of the following financial ratios: the
asset turnover ratio and the debtor days ratio; (4) To determine the effects of the
financial management system to the financial efficiency of VNPT; (5) To identify the
problems encountered in carrying out the financial management system of VNPT; (6)
To propose actions that will respond to the problems encountered in carrying out the
financial management system of VNPT.
In order to obtain main objectives of study, the researcher used the descriptive
method to get data which includes: Primary data was collected by sending
questionnaires to 169 respondents (CFO of VNPT, director of financial department of
VNPT, deputy director of financial department of VNPT, CFO of VNPT’s
subsidiaries) working in VNPT and its subsidiaries and secondary data: From the

Table 17. The clarity and transparency in managing revenues, expenses, and profit
distribution in VNPT 75
Table 18. The Level in harmonizing between the interests of the state, corporations
and employees in managing revenues, expenses and profits distribution in VNPT 76
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Table 19. Revenue of VNPT from 2010 to 2012 77
Table 20. The clarity of the regulations on the distribution of profits which
subsidiaries must contribute to VNPT group 78
Table 21. Profits of VNPT from 2010 to 2012 79
Table 22. The asset turnover ratio of VNPT from 2010 to 2012 80
Table 23. The debtor days ratio of VNPT from 2010 to 2012 81
Table 22. The asset turnover ratio of VNPT from 2010 to 2012 86
Table 23. The debtor days ratio of VNPT from 2010 to 2012 86
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LIST OF CHARTS
Chart 1. The autonomic level of capital mobilization in VNPT 40
Chart 2. The safe level in mobilizing capital of VNPT 41
Chart 3. The autonomic level in mobilizing capital of the VNPT’s subsidiaries 43
Chart 4. Clarity and fulfilment in harmonizing capital mechanism of VNPT 44
Chart 5. Reasonable level regulated the loan limit at the rate payable on capital not
exceeding 3 times: 46
Chart 6. The level of autonomy and self-responsibility at VNPT in using and
managing capital: 52
Chart 7. Level of capital preserve in VNPT 54
Chart 8. The level of responsibility in the management and use of the owner’s capital
of VNPT 55
Chart 9. The effectiveness of investment outsite the sector VNPT 57
Chart 10. The transparency of ownership and the right of using assets in VNPT 68
Chart 11. The level of conservation of the assets in VNPT 69
Chart 12. The level of efficiency in the use of assets in VNPT 70

APPROVAL SHEET
This dissertation, entitled, “FINANCIAL MANAGEMENT SYSTEM OF
VIETNAM POSTS AND TELECOMMUNICATIONS GROUP (VNPT) AND
ITS EFFECTS ON FINANCIAL EFFICIENCY OF THE COMPANY” prepared
and submitted by To Thi Ngoc Lan (Jenny) in partial fulfillment of the requirements
for the degree of Doctor in Business Administration, has been examined and
recommended for acceptance and approval for FINAL ORAL EXAMINATION.
Dr. JOANNA PAULA A. ELLAGA
Adviser
Signature
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CHAPTER I:
INTRODUCTION
There are many studies about financial management system in economic
groups under the eyes of theory, situation evaluation as well as summary of
experience in the country and foreign countries. Followings are typical ones:
Firstly, the study, which was published into book, has title:
“Business Groups and financial management system in Business Groups”
published in 2003, by author Pham Quang Trung.
This study shows many basic theoretical matters about financial management
system in economic groups, State owned enterprises as well as descriptions,
summaries, analysis of overall picture of actual situation of applying financial
management system in economic groups, State owned enterprises in Vietnam in the
first period when economic groups, State owned enterprises started to go into
operation.
Nowadays, with profound changes in economic groups, State owned
enterprises under the changes of State’s policies as well as influences of economic
integration on economic groups, the value of those analysis and evaluation may not
keep intact and need to be updated.
Secondly, the study under form of textbook has title “Financial management of

need to be flexible and ever-innovative. Innovative financial management system is
3
one of the issues of primary concern that directly affects the survival of many
economic groups in Vietnam.
In expectation of contributing some ideas about perfecting financial
management system of State owned economic groups, I would like to conduct this
study.
1.1. Statement of the objectives
This study intended to analysis of financial management system of VNPT and
its effects on financial efficiency of the Group. Specifically, the specific objectives of
this study are:
1. To identify the profile of the company in terms of the following:
1.1. Type of the company
1.2. Size of the company
2. To determine the current status of financial management system of VNPT
in terms of the following:
2.1. Capital mobilization (focus on financing activities)
2.2. Capital management and use (focus on investment activities)
2.3. Asset management
2.4. Management of revenue, expense and profit distribution
3. To assess the financial efficiency of VNPT in terms of the following
financial ratios: the asset turnover ratio and the debtor days ratio.
4. To determine the effects of the financial management system to the
financial efficiency of VNPT.
5. To identify the problems encountered in carrying out the financial
management system of VNPT.
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6. To propose actions that will respond to the problems encountered in
carrying out the financial management system of VNPT.
1.2. Significance of the Study

The studying scope of the dissertation is although based on the theoretical
perspective of the financial management system of the State economic corporations in
general, when studying the current status of the financial management system in the
state economic groups in VietNam, the author focuses the study on VNPT.
The study of current status of financial management system in VNPT is
performed from 2010 to 2012.
In my case, Financial efficiency, viewed as dependent variables.
Accounting information system practices; Financial reporting and analysis
practices; Capital structure management practices; Capital mobilization practices;
Capital management and use practices; Asset management practices; Revenue,
expense and profit distribution management practices, viewed as independent
variables.
But time and my ability is limited, I will focus on: Capital mobilization
practices; Capital management and use practices; Asset management practices;
Revenue, expense and profit distribution management practices, viewed as
independent variables.
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1.4. Definition of terms
A parent company is a company that controls other companies by owning an
influential amount of voting stock or control. Parent companies will typically be larger
firms that exhibit control over one or more small subsidiaries in either the same
industry or other industries.
Capital invested by the State in the Parent Company are the capital directly
taken from the state budget for the parent company in the operation (if any); capital
received by the State from other resources as decisions of the competent authorities;
additional capital from profit after tax; value of land using rights and other capitals
considered as State capital in accordance with the State law.
Capital preservation in the parent company means that capital is kept intact
and not be deficit during the operation of the parent company.
Capital raised by the parent company is the capital that the parent company

Non-productive units are units providing research, training, healthcare
services under the management of the Parent Company.
Owner is the State owner of the parent company. The Government unifies the
implementation of rights and obligations of the owner to the parent company. The
Prime Minister directly performs or authorizes Ministries, the ministerial-level
agencies, the agencies attached to the Government to implement a certain number of
rights and obligations of the owner to the parent company in accordance with the law.
8
Profit is the difference between the purchase and the component costs of
delivered goods and/or services and any operating or other expenses.
Revenue is income that a company receives from its normal business
activities, usually from the sale of goods and services to customers. In many
countries, revenue is referred to as turnover.
Representative is the person which is appointed by the Board of Directors to
represent for capital or to candidate or participate in the Management Board and
management in companies which have capital of the parent company.
Subsidiary is an independent accounting firm of which charter capital is held
100% by the parent company and being a company that the parent company holds
dominant shares, capital or controlling shareholder through rights of directly or
indirectly appointing a majority or all of the Board members, the general director or
manager of that firm or deciding to modify or supplement the charter of that firm.
9
CHAPTER II:
RELATED LITERATURE
This chapter presents the literature related to this Study. It includes related
studies and definition of finance, contents of financial management system, factors
influencing financial management system, criteria for financial efficiency evaluation
of financial management system and definition of financial efficency.
2.1. Review of related studies
2.1.1. Foreign studies

system in economic groups, State owned enterprises as well as descriptions,
summaries, analysis of overall picture of actual situation of applying financial
management system in economic groups, State owned enterprises in Vietnam in the
first period when economic groups, State owned enterprises started to go into
operation.
Nowadays, with profound changes in economic groups, State owned
enterprises under the changes of State’s policies as well as influences of economic
integration on economic groups, the value of those analysis and evaluation may not
keep intact and need to be updated.
Duong Huu Hanh , “Financial management of modern enterprises”, 2009.
This study, although not directly mentioning words “financial management
system in economic groups”, has contents of financial management in modern