Tài liệu Managing cash flow of food processing enterprises listed on vietnam stock market

INTRODUCTION - Clarify the reasoning of business cash flow management and build up the evaluation criteria of cash flow management in accordance with the characteristics of food processing enterprises listed Vietnam. 1. Imperativeness of the study - Analyze and evaluate the real situation of the cash flow management of food In fact, many profitable businesses can go bankrupt if cash flow is not managed closely. Therefore, the change in perception from considering only the profit to seeing the money flow management is a necessity for the business financial managers of Vietnam. However, cash flow management is a relatively new processing enterprises in Vietnam. - Propose some solutions to enhance cash flow management of food processing enterprises in Vietnam. issue for enterprise in Vietnam in general and food processing businesses in 3. Object and scope of the research particular so the embarrassment and arising defects are unavoidable; as a result 3.1. Object of study cash flow management did not meet the required expectations, the inability to The subject of the study is cash flow management of the business. meet payment needs of businesses is not small. Especially in the context of the complex changing business environment, competition becomes fiercer, a series of corporate bankrupt, the survival of enterprises will hardly be sustainable if In this study, the author has focused on cash flow management for operating cash flow of the business. the cash flow management is not enhanced towards tighter, more 3.2. Scope of Research comprehensive and more effective. About time: the period of 2007-2012. Food processing enterprises in Vietnam are businesses trading essential About space: 53 food processing businesses listed on Vietnam stock market. products which closely linked to the agricultural economy of Vietnam. 4. Contribution of the research However, the food processing enterprises in Vietnam still operate in terms of habit, there are no scientific computing in business management in general and in operating cash flow management in particular. Especially, the operation of food processing enterprises is characterized by great frequency cash inflows (1) The author has proposed a new approach in the cash flow management of businesses. Managing cash flow needs to be understood as a process involving all business operations of the enterprise. and cash outflows. Therefore, good cash flow management will help food (2) The author has developed a system of governance indicators evaluating the processing businesses survive and will overcome the crisis more easily. cash flow of the business. From the above fact, the study "Managing cash flow of food processing (3) The author has outlined the factors (subjective and objective) which have enterprises in Vietnam" is very essential. impacts on the cash flow management of the business; at the same time, used these factors to assess the situation of weak cash flow management of the food 2. Research Objectives processing listed businesses. Based on the perspective of the researcher and the above analysis, the research (4) The author has carried out deep interviews with questionnaires to chief goals of the project focused on the following issues: financial officer, chief accountant, caseworker orders from 8 food processing -1- -2- listed businesses on HSX and HNX, and in-depth interviews with financial and CHAPTER 1: OVERVIEW OF THE RESEARCH AND audit experts to provide information in the process of analysis and assessment METHODOLOGY of cash flow management of these businesses. (5) The author has used quantitative research methods through data collection 1.1. Research Overview of secondary finance to construct the study sample with 15 among 53 1.1.1. Studies abroad businesses and use the STATA software for analyzing factors affecting cash flow management in the food processing listed enterprises. (6) The author has proposed building cash flow forecasting model with the food processing listed businesses through analysis, evaluation of 6 cash flow The author has overviewed the research of authors in the world according to 4 contents: - The role of cash flow management. forecasting models which are widely used in the world and association with - The content of cash flow management and fund management. Vietnam conditions. At the same time, the author has shown the positive impact - Factors affecting cash flow management. of cash flow forecast on the cash flow management of food processing listed - Cash flow management model. businesses. (7) The author has studied Stone's application to build optimized budget models for food processing listed businesses, which help cash flow management of these companies achieve better results. It can be seen that the basic research in the world has provided different approaches to cash flow management as well as evaluated the impact of cash flow management on businesses. However, no study has evaluated the impact of total factor group to cash flow management of the business. So we need to 5. Structure of the research conduct a study of a general nature, combining elements of management affects In addition to the introduction and conclusion, the thesis is structured into 4 the cash flow management of the business. This suggests the study on the chapters, as follows: following directions: (i) evaluate all factors affecting cash flow management of Chapter 1: Overview of research and research methods the business; (ii) quantify the factors that impact on cash flow management and Chapter 2: The basic theoretical issues of cash flow management of businesses. Chapter 3: Real situation of managing cash flow of food processing enterprises construction of model cash flow management of the business; (iii) appropriate techniques which are used for cash flow management. listed on the Vietnam stock market. 1.1.2. Studies in Vietnam Chapter 4: Solutions to enhance cash flow management of food processing Cash flow management has an important role and has become increasingly enterprises listed on the Vietnam stock market. more important for every business. However, at present, in Vietnam, the research on the reality of cash flow management is very limited, no study has yet approached profoundly and completely. -3- -4- Through comprehensive research assessment, we need to have a comprehensive Secondary information collection: previous financial accounting information approach project on cash flow management of the business. and inheritance studies in the country and in the world which related to cash 1.2. Research Questions flow management. 1. Which contents are included in cash flow management of the business? 1.3.4. The sample research 2. What factors affect the cash flow management of the food processing Statistical analysis describes cash flow management situation: 15 out of 53 businesses listed on the stock market in Vietnam? businesses. 3. How does cash flow management influence the operation of enterprises? Applied research and build models that predict cash flow and cash optimization: 4. Do food processing listed businesses use models in the administration of cash the data of 53 companies (Overall). flow? Which cash flow management model fits with these businesses? In-depth interviews: 4 food processing businesses listed on HSX and other four 1.3. Research Methodology ones listed on HNX. 1.3.1. Approach 1.3.5. Synthetic methods and data processing Subjects of the research are approached towards a comprehensive way in terms The method of analysis and synthesis of information are described in detail, of the process from the emergence of cash inflows and outflows, cash flow including descriptive statistical analysis method, the method uses econometric planning, to forecast cash flow and build the optimal budget. modeling quantitative analysis, comparative analysis of the control and scenarios analysis and expert method. 1.3.2. Variables of the research Based on these hypotheses, the research focuses on the following variables: Opportunity costs, transaction costs, the demand for money (based on cash flow Conclusion of Chapter 1 forecast). From the synthesis of the research in the country and abroad, the space of the Net revenue, receivables, payables, inventory, cash inflows and outflows. These research is determined. This is a pre-condition to guide the direction for the variables help business to forecast the money needed. Thus helping to research of the author. Accordingly, research objectives, research subjects and determine the optimal level of reserve money. research scopes are defined. The author has developed modeling research 1.3.3. Information collection methods questions and hypotheses, thereby choosing research methods (a combination of Primary information collection: deep interview with financial managers, chief accountants, line worker, at the same time consulting experts in the field of qualitative research and quantitative research through a survey and in-depth interviews). financial management and auditors. -5- -6- CHAPTER 2: BASIC THEORETICAL PROBLEMS OF CASH FLOW MANAGEMENT OF BUSINESS Cash flow management is a continuous effort to minimize the negative impacts during operations and focus on money management principles, "not too much and not too little money". Cash 2.1. Overview of cash flow of business Collection Purchasing 2.1.1. General overview of business Enterprises can be classified according to many different criteria; in the thesis, Material Receivables the author uses the classification criteria in the form of business ownership (including SOEs and private enterprises) and specific criteria for business (according to the general classification criteria of business classification Manufacturing Sales systems in Vietnam and around the world, in which the author focuses on how Inventory businesses are classified under the general criteria of ICB). As slowly as possible 2.1.2. Cash flow of business When referring to cash flow of a company, there is not a concept of money flow in general, we need to understand the concept of cash flow through cash inflows, outflows and net cash flow. Net cash flow is determined by the total amount in a period minus the amount spent in the corresponding period. Cash flow is recorded under actual incurred amount method, which is different from the target profit of a period calculated according to the accrual method. As quickly as possible Figure 2.1. Cash flow management process 2.2.2. Content of cash flow management Managing cash flow should be implemented in accordance with the full range of content from arising transactions, recognition and control to the financial transactions in order to optimize funds and the handling of funds of enterprises. So, basically the contents of the cash flow management including determining Cash flow characteristics of the company are based on three activities cash inflows (revenues), determining cash outflows (expenditures), planning for (production business, finance and investments) cash flow and determining optimal budgets. 2.2. Cash flow management of business Cash inflows and outflows are determined under direct and indirect method. 2.2.1. The concept of cash flow Scheduling cash flow is based on cash flow forecasts (6 methods of forecasting There are many different ways to understand and approach the cash flow; cash flows) according to the author cash flow management should be understood in a Building up optimal funds (studying 3 optimal funding models which are comprehensively process. widely used around the world: Baumol, Miller - Orr, and Stone models). -1- -2- 2.2.3. Evaluation criteria of cash flow management Chapter 3 Managing cash flow of the business is well assessed when the payment needs of The real situation of cash flow management of food processing companies businesses are met in full. The ratio reflects the cash flow, including: listed on Vietnam’s stock market (i) Full affordability of cash flows: Ability to pay the full fixed costs of cash 3.1 Characteristics of the food processing companies that affect cash flow flow; Ability to pay total debt; Ability to repay short-term debt; Ability to management reinvest. According to the Industry Classification Benchmark structure for sector (ii) The ability to generate cash from operations of the business: The ratio of analysis, the companies listed on Vietnam’s stock market are allocated to the cash flow/revenue; The ratio of cash flow/profit after tax; The ration of cash subsector based on their source of revenue or where they constitutes the flow/assets; The ratio of cash flow/equity; The ratio of cash flow/share. majority of revenue. Consequently, up to the date of 31st May 2013, these food 2.3. Factors affecting cash flow management of the business processing companies have been classified to the third level subsector including 2.3.1. Subjective factors 53 companies (there are 26 food companies and 27 aquaculture and seafood Cost of debt and funding structure, content selection and cash flow management companies). techniques, the capacity of financial management, commercial credit policies of In Vietnam, under the government’s decree No 56/2009/NĐ-CP dated 30th June the enterprises. 2009, most of these companies are large scale ones. Their business activities 2.3.2. Objective factors: business characteristics, interest rates and economic indicators, economic cycles and financial needs of businesses, financial markets and financial institutions. closely associate with essential products and agricultural production in Vietnam. Although the companies’ products serve the essential needs, their operation decreases considerably due to the influence of economic recession. It is clearly seen through the falling ratio of ROA, ROE, and ROCE at a low and significant level. Conclusion of Chapter 2 3.2 The real situation of cash flow management of the food processing Through chapter 2, the author has outlined the basic content of cash flow companies listed on Vietnam’s stock market management of the company, from which proposed a more comprehensive According to the survey result of 15 food processing businesses listed on the understanding of cash flow management of business by the process. stock market and in-depth interview with chief financial officer, the cash flows Besides, the author also generalize the factors affecting cash flow management into and out of these businesses are determined by an indirect method. of the company. Accordingly, the statement of cash flows reflecting cash flow coming in, cash flow going out and net cash flow of the businesses is incorporated indirectly. Under this method, the net cash flow of the company is based on the after – tax profit margin adjusted for some items which are not the incurring cash on the -3- -4- balance sheet and show some changes in working capital. Therefore, the real 3.2.3 The real situation of planning cash flow and building the optimal situation of managing cash flow in and out mainly bases on the administration budget of the items which have a significant influence on changing cash flow in, cash As the survey and in-depth interviews showed, planning cash flow was not paid flow out and net cash flow. The following data reflect the current status of cash attention. The process of planning cash flow has not been fully implemented flow management by these food processing companies. from preparation, cash flow prediction and determination to establishment of 3.2.1. The real situation of managing incoming cash flow optimal budget. The companies are planning cash flows based on the balance of According to the result of data collection and analysis on the status of revenue and incurring expenses, and have no plans for forecast. Moreover, cash receivables, it can be obviously seen that receivables accounted for a large flow planning can only be done together with financial planning annually. percentage and tend to increase. As of 31st December 2012, the percentage was Because of not paying adequate attention to planning cash flow, these firms do even higher in some enterprises, particularly in the field of aquaculture. For not use any model to forecast cash flow, do not really apply the model of example, the receivable per total assets at Gentraco was 62.07%, and Viet An optimizing budgets in cash flow management, and do not overcome the Seafood 43.22%. seasonal forecast and cash flow management. Agricultural and seafood processing enterprises had a high inventory proportion 3.3. Evaluating the real situation of cash flow management of the food of the total assets and increase significantly in 2012. In addition, foreign processing companies listed on Vietnam’s stock maket exchange losses, billing discounts and provision for credit risk also went up. The result of cash flow management is recognized through some of financial 3.2.2. The real situation of managing outgoing cash flow indicators as follows. The cash flow out of a company consists of payments for a company’s business Table 3.14. Cash flow ratios of listed food processing companies activities in which payables play an important role. They have a vital impact on the outgoing cash flow. The result of analyzing these food processing companies’ data showed that the percentage of payables of the total pay was high and increased rapidly in the period 2007 - 2012. In particular, the number of enterprises with more than 50% was 31; especially Vietnam Thai Hoa Group was 94%. Furthermore, these companies did not use the policy of electronic payments to balance cash flows in and out. Year 2007 2008 2009 2010 Unit: times 2011 2012 No. Ratio 1 Cash flow fixed charge coverage 0.08 0.27 0.17 0.09 0.07 0.71 2 Debt repayment from operating cash flow (2.78) 0.03 (30.51) 6.76 1.22 (12.63) 3 Cash flow current ratio (8.22) (2.34) (50.27) 15.00 2.48 (16.34) 4 Devidend payment from operating cash flow 0.10 2.52 0.00 2.14 0.02 (0.93) 5 Cash flow from continuing operations to sales 0.00 (0.01) 0.06 0.01 0.02 0.04 6 Cash to income ration 1.11 (1.53) (7.02) (1.65) (0.33) 6.05 7 Cash return on assets 0.02 0.01 0.07 0.01 0.02 0.09 8 Cash return on equity 0.07 (0.09) 0.05 (0.05) (0.00) 0.10 (Resource: Stoxplus.com.vn and calculating of author) 3.3.1. Achievements As can be seen from the table, the affordability is low, often maintain less than 1. -5- -6- the changing market conditions. The food processing enterprises have covered several contents of cash flow Objective reasons: First, the interest rate policy of the State has changed and management such as management of receivable and payable accounts, interest rates on the financial market are unpredictable. Second, economic provision for bad debts despite the fact that the management is not paid as much cycles affect the operation of the business, and accordingly managing cash flow attention as profitability. is easier or harder based on the economic cycle. Third, exchange rate risk and These enterprises have applied some measures to deal with temporary surplus exchange rate policies do not facilitate export companies. The products and or shortage though funds have not been developed optimally. services of financial markets and financial institutions are limited. Trading tools Net working capital is maintained stable. Most of the businesses have already for commercial credit are undeveloped. Besides, the quality of financial complied the principle of capital allocationis, i.e. short-term capital financing statements, especially statements of cash flows is not high. Supporting services short-term assets, long-term capital financing long-term assets. Thus, the net for public liability do not grow, especially through the establishment and working capital of these companies has always been to maintain stable and operation of debt trading companies and commercial arbitration centers. positive (42/53 companies). 3.3.2. Limitations and causes (1) Limitations Conclusion of Chapter 3 After analyzing the real situation of cash flow management of these food On a theoretical basis for cash flow management, definitions of factors processing companies, there have existed some of basic limitations including affecting cash flow management, and the results of surveys and in-depth the risk of imbalance between revenues - costs, the low ability to pay the full interviews to analyze the actual circumstances of cash flow management among costs for fixed line money (less than 1), the low solvency for short-term debt, these companies, some lessons are drawn besides several certain achievemnts. the low ratio of cash flow / sales and and low rate of meeting the full payment The most major limitation is that these companies do not take care of planning needs, the less than zero working capital of some companies, and the low ability and forecasting cash flow. They have not chosen any model to forecast cash to generate cash (receivables> payables). flows. Cash flow forecasts are often combined with financial planning annually. (2) Cause: There are two fundamental reasons as follows. It is obviously showed that the demand for money has not been determined Subjective reasons: the cost of debt and capital structure is irrational; the choice of cash flow management techniques is inconsistent and incomplete; the ability to forecast cash flow is limited; not really building up optimal budget model is not really developed; the scale of production is unreasonable; there are not suitably for business operations, so negative cash flow on a quarterly basis is common in many businesses. In addition, most of the companies have not yet realized the role of determining optimal budgets and building a suitable model of optimal budgets. financial management speaclists; financial executives do not take cash flow management into account; derived services and risk reduction of exchange rate are not selected; the trade credit policy is not flexible and not directly linked to -7- -8- Hypothesis: Chapter 4 SOLUTIONS TO STRENGTHEN CASH FLOW MANAGEMENT OF H0: bi = 0 (Xi has no relationship with CF) FOOD PROCESSING COMPANIES LISTED ON VIETNAM’S STOCK H1: bi ≠ 0 ((Xi has a relationship with CF) MARKET Using STATA 11 and the data of 53 LPP companies in the period from 2007 2012. 4.1. Direct Solutions The testing and estimation steps are performed as follows: 4.1.1. Cash flow forecast Step 1: Declare the dependent variable and independent variables of the Developing regression models for multivariate time series is to forecast cash equation (4.2). flows from operations of a group of 53 companies. The regression equation is Step 2: Conduct to test the hypothesis. constructed as follows: The test of chaging error variance for POOLS and random effects methods CFT = a + b1 (CFT-1) + b2 (OIBDt-1) + b3 (rect-1) + b4 (INVT-1) showed showed that error variance changes. Thus, to test and estimate the coefficients of the model, it is necessary to use the fixed effects method. The + b5(PAYt-1) + Et (4.2) results are shown as follows: Dependent variable: CFT is operating cash flow in a year t Table 4.4. Hypothesis Results Independent variables: OIBDt-i is operating income before depreciation in a year ti RECt-1 is receivable in a year t-1 INVt-1 is the inventory in a yeart-1 PAYt-1 is payable in a year t-1 Et is variable Testing Methodology: There are three methods of testing and estimating parameter of the regression equation: - POOLS (pooled OLS) - Random effects (random effect factor) - Fixed effects (fixed effect factor) Step 3: Write the regression equation. -9- -10- Based on the results of running the model in Table 4.4, the regression equation is defined as follows: CFt = - 87.512,43 + 0,4210556 (OIBDt-1) + 0,4276063 (RECt-1) + 0,6955193 (INVt-1) – 0,4129928 (PAYt-1) + et (4.3) NTACO does not trading short-term investment in securities for the purpose of ensuring liquidity and transaction costs of deposits are negligible (in the interviews). Therefore, the transaction costs are tiny too. (Cb = 1) Thus, the optimal cash reserves = Optimal cash reserves = 29,931.25 million VND The meaning of the model: The model is used to forecast cash flows based on financial data related the history. According to the regression equation (4.3) on cash flow which has been developed in conjunction with the data of listed food processing enterprises in the period of 2007 - 2012, the cash flow of these businesses will be predicted. In sum, optimal cash balance = 29.931,25 tr.đ High cash balance: H = 3Z - 2L = 41.293,38 Chart: Cash Cash at bank/ Buy Securities H1 = 41.293,38 4.1.2. Setting up a precondition for building optimal budget Case Study: Applying the Stone model for building optimal to NTACO JSC,. Step 1: Set the lower limit for the fund balance. This limit is related to the level of spending security. Z*= 29.931,25 Based on the fund balance (cash and cash equivalents) quarterly for the period from 2007 to 2012, combined with the demand for cash during the next year and interviewed the chief accountant / chief financial officer, the amount of minimum reserve is determined. L = 23935.2 million VND L1 = 23.935,18 Cash at bank/ Sell Securities Time 4.2. Mô hình quản trị dòng tiền của Công ty NTACO Step 2: Estimate the standard deviation of the cash flow Step 5: Handling the budget surplus or deficit According to the historical data of NTACO cash flow, revenue and expenditure budget variances are defined as: Vb = 7221778859.1 million VND. a. Assumptions: NTACO use a credit line for 2013. Step 3: Decide the interest rate to determine the opportunity cost Credit Limit Demand in 2013 = 279 billion VND NTACO does not make short-term investment in securities for the purpose of ensuring safety for payment activities. Hence, the opportunity cost is based on the interest rate prescribed by the central bank to commercial banks’s capital raising activities. As discussed above, the interest rate is 10.05% / year. Step 4: Estimate transaction costs related to selling or buying short-term securities b. Handling the budget surplus or deficit -11- Credit limits are determined as follows: (in Appendix 1) The cash flow forecasted for 2003 as in the forecast equation 4.2 was 23,621.94 million VND. Compared with optimal cash reserve Z * = 29,931.25 million VND From this, it is easily seen that NTACO company will have budget surplus. -12- Surplus amount = 6,309.31 VND. 4.2.2. Developing a suitable production and business plan Due to the fact that Vietnam's stock market is potentially at short-term risk and NTACO cannot make short-term investments in the stock market, so the most appropriate thing to do is that NTACO should make short-term cash investments in short-term deposits at An Giang Vietcom bank. The three – month period interest rate for deposit was 6.8% / year (according to the bank's interest rates). It is necessary to combine doing market research and developing a production plan to help these businesses plan an appropriate capital budget, select funding channel as well as construct funds with the aim of not affecting solvency. Hence, the interest that NTACO obtained from short-term investments of idle cash is: 6309.31 x 6.8% / 4 = 107.26 million VND 4.2.3. Developing flexible sales policies and enhancing marketing activities Sales policy should be developed consistantly and steadily, decentralized markedly among agent groups to create a partition (North, Central, South), urban and rural areas. - Assign decentralization workers who are in charge of receivables, payables, cash separately. According to the BMI overview report about food processing enterprises (2013), Vietnam has a large income gap between urban and rural areas, so the consumption pattern of these companies should change based on income. They need to make the products in accordance with the tastes and incomes of each type of market. Therefore, marketing policies should be developed to suit each market segment. - Enhance the recovery of receivables. 4.2.4. Using a variety of products and services of commercial banks - Extend the time of payable payment. The survey resultsc show that most of the companies only use international payment operations as basic as L/C or T/T and are not interested in the derivatives business. Meanwhile, rates have a huge effect on foreign trade transactions. Exchange rates of currency pairs are constantly fluctuating. Therefore, the exchange rate risk is inevitable. To reduce the negative impact of exchange rate risk, the companies should choose the derivative transactions of commercial banks. (Detailed assessment of the impact of cash flow forecasting, optimal budget building on operating efficiency of NTACO JSC, see Appendix 1) 4.1.3. Strengthening governance debt - Balance the revenue - expenditure on the level of importance and reconciliate with cash accounting. - Change the appropriate sales policy. 4.2 Supplementary solutions 4.2.1. Developing human resources - The separation of the chief accountant and chief financial officer is needed in the financial management of enterprises. - Increase awareness of leadership and management about cash flow. - Raise awareness of employees about the importance of cash flow for businesses. -13- 4.2.5. Some other solutions - Picking up to build cash flow management software. - Combining a portion of cash flow management and other parts of the accounting software. - Managing order automation. - Use additional indicators reflecting the quality of the cash flow of the businesses apart from indicators reflecting traditional solvency which is being widely used in the financial analysis in Vietnam. -14- 4.3. Recommendations 4.3.1. Recommendations for the Government Tools of trade credit transactions The Government should issue decrees guiding the implementation of the Law on Negotiable Instruments dated 28 November 2005, whereby the Ministry of Finance and Ministry of Industry and Commerce jointly issued the necessary documents to guide the implementation in detail. Accordingly, the businesses easily access and use the tools in this Law for payment operations. Moreover, commercial banks will provide banking products associated with these tools for these businesses. The Government should officially set up the market to create favorable conditions for the enterprises in order to enhance the use of bills of exchange. This law should be split into two rules: (i) A draft law; (ii) A check law. Such separation is consistent with international practices in general because many countries in the world have law of drafts and checks. Supporting services for debt management The Government should create a legal framework and favorable conditions for the formation of DATC and activities to help the businesses handle existing debts and clear cash flow. The Government should implement promotional activities to change the companies’ perception, which commercial arbitrating operation will be trusted by many companies. direct impact on the operation of businesses in general and food processing enterprises in particular. Therefore, in the transition of post-recession period, State bank should consider the liberalization of controling mechanisms of interest rates to ensure the benefits of both commercial banks and enterprises, and stabelize the operation of the economy. 4.3.4. Recommendations for commercial banks Through these transactions, the banks need to strengthen the introduction of products and services, such as: - Products that help the businesses prevent exchange rate risks as Swap, Options, and Futures. - Products that help the businesses manage cash flow through the accounts of managing working capital. Accordingly, these accounts play a role as a place of regulating the cash flow of the businesses. Conclusion of Chapter 4 From the theoretical basis, analysis and evaluation of the real sitauation of cash flow management of the food processing companies in chapter 4, the writer has proposed direct solutions (3 solutions for forecasting cash flow, building up optimal budgets and managing the inventory), complementary solutions (consist of 7 solutions) and recommendations for the implementation of these solutions to enhance cash flow management of the business on Vietnam’s stock market. 4.3.2. Recommendations for the Ministry of Finance The ministry should have rules and detailed guidelines for each sector, so the disclosure of mandatory information for the listed companies is more complete and thorough. In addition, this information will be useful when the businesses approach suppliers, customers as well as domestic and international capital suppliers. 4.3.3. Recommendations for State Bank Interest rate policies and exchange rate policies have a close relationship and -15- -16- real situation, and constructs econometric models which with the aim of helping CONCLUSION businesses forecast cash flow and design the level of optimal cash reserves through statistical methods and correlative regression methods (using STATA 1. Theory 11 software). In addition, the author has proposed a number of new indicators to The author outlined the basic theoretical issues of cash flow management of the reflect the quality of the cash flow of the business beside the indicators reflect enterprise including: an overview of the cash flow of the business, overview of the ability to pay (payment) in a traditional way which is being widely used in cash flow management of the business from concept, objective and content, the corporate finance analysis. Since then, the author has basis to propose assessment criteria for cash flow management, to the factors affecting the cash solution as well as propose the conditions for solutions to enhance cash flow flow management of the business. management of the food processing companies listed on the stock market of The author introduces the concept of comprehensive management of corporate Vietnam. cash flow, cash flow management which need to be understood as a process of 3. Results of the survey, interviews and analysis management. In addition, the author has constructed the evaluation criteria system for cash flow management of the business. On the basis of these indicators, the authors evaluated the administration of the cash flow of the processing food businesses in Vietnam either good or bad. The author has carried out a survey to get data from 2007 to 2012 of 15 among 53 food processing listed businesses for descriptive statistics and analysis. The author has used the data of 53 food processing listed companies to build the regression equation to determine the cash flow forecast of these companies (as 2. Research Methodology ARIMA forecasting method). The author has collected data from both primary and secondary sources. The The author has done in-depth interviews with 4 food processing listed secondary sources are through the financial statements of the processing food businesses on HSX and 4 food processing listed businesses on HNX, and listed companies which have financial year ended annually on December 31st consulted financial experts and the auditors who audited food processing listed for the period from 2007 to 2012. Primary sources are through in-depth businesses to support the information for analysis and evaluation of cash flow interviews with processing food listed businesses, financial experts and management of these businesses. auditors. The results of statistical analysis and evaluation showed that cash flow The author has used a combination of qualitative and quantitative research management is not adequately concerned by food processing listed businesses methods, especially the author uses the case study method to analyze and reflected by the content of management which has not yet been fully and assess the situation and proposes solutions to clarify the contents of the thesis. comprehensively implemented. Qualitative research methods are demonstrated through statistics and primary 4. Proposed Solutions data analysis and in-depth interview performance. Quantitative research Based on statistics, in-depth interviews, analysis, testing and assessment of real methods are used to quantify the impact of several factors on cash flow situation of the cash flow management of food processing listed businesses, the management of the business. From there, the author analyzes and assesses the author has proposed ê direct solutions (3 solutions of cash flow forecast, -17- -18- building up optimal fund and receivables and payables management), the complementary solution (5 solutions) and has proposed the conditions for the implementation of these solutions to enhance cash flow management of the food processing businesses listed on Vietnam's stock market. In the given solutions system, applied research for cash flow management situation at the NTACO company are illustrated as practical solutions. 5. Limitation of the Research Limitation of this study is that the author has not been fully quantified objective factors affecting the content of cash flow management of the business. This problem is a suggestion for further research. The research scope is limited to the cash flow management of the food processing listed companies. Therefore, it can be expanded for food processing businesses in Vietnam (including listed and unlisted food processing ones). This is also a controlled study to compare the administration of the cash flow of the listed and unlisted food processing businesses. Also, we can assess the impact of cash flow management of the business on business performance of these businesses. The author has tried to research, generalise, analyze, assess the cash flow management of the food processing listed companies, and boldly applied research methods; however, the shortcomings of the thesis is inevitable. The author of the thesis hopefully to receive valuable comments from scientists, the interested readers to help the thesis become more complete. The author would like to thank sincerely! -19-