CIRCULAR

PROMULGATING FINANCIAL REGULATIONS OF VIETNAM DEBT AND ASSET TRADING CORPORATION

Pursuant to the Law on Enterprises dated June 17, 2020;

Pursuant to the Law on management and use of state capital invested in manufacturing and business operations of enterprises dated November 26, 2014;

Pursuant to the Government’s Decree No. 10/2019/ND-CP dated January 30, 2019 performing rights and responsibilities of state owner’s representatives;

Pursuant to the Government’s Decree No. 91/2015/ND-CP dated October 13, 2015 on state capital investments and utilization and management of capital and assets of enterprises;

Pursuant to the Government’s Decree No. 32/2018/ND-CP dated March 08, 2018 on amending and supplementing certain articles of the Government’s Decree No. 91/2015/ND-CP dated October 13, 2015 on state capital investment in enterprises, use and management of capital and assets in enterprises;

Pursuant to the Government’s Decree No. 140/2020/ND-CP dated November 30, 2020, providing amendments to the Government’s Decree No. 126/2017/ND-CP dated November 16, 2017 on conversion of state-owned enterprises and wholly state-owned single-member limited liability companies into joint-stock companies, the Government’s Decree No. 91/2015/ND-CP dated October 13, 2015 on state capital investment in enterprises, use and management of capital and assets in enterprises, and the government’s decree no. 32/2018/ND-CP dated march 08, 2018 providing amendments to decree no. 91/2015/ND-CP;

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Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017 defining functions, tasks, powers and organizational structure of the Ministry of Finance;

At the request of the Director of the Department of Corporate Finance, and the Board of Members of Vietnam Debt and Asset Trading Corporation,

The Minister of Finance promulgates a Circular promulgating financial regulations of Vietnam Debt and Asset Trading Corporation.

Article 1. The “Financial regulations of Vietnam Debt and Asset Trading Corporation” is enclosed with this Circular.

Article 2. This Circular comes into force from September 15, 2021 and applies from the financial year 2021. This Circular supersedes the Circular No. 134/2016/TT-BTC dated September 08, 2016 of the Ministry of Finance promulgating regulations on financial management of Vietnam Debt and Asset Trading Corporation.

Article 3. Director of the Department of Corporate Finance, heads of relevant units, the Board of Members and General Director of Vietnam Debt and Asset Trading Corporation are responsible for the implementation of this Circular./.

PP. THE MINISTER
DEPUTY MINISTER




Huynh Quang Hai

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FINANCIAL REGULATIONS

OF VIETNAM DEBT AND ASSET TRADING CORPORATION
(Enclosed with the Circular No. 62/2021/TT-BTC dated July 29, 2021 of the Minister of Finance)

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This document introduces the mechanism for financial management of Vietnam Debt and Asset Trading Corporation of which 100% charter capital is held by the State, operating in accordance with the Government’s Decree No. 129/2020/ND-CP dated October 27, 2020 prescribing functions, tasks and operational mechanism of Vietnam Debt and Asset Trading Corporation (hereinafter referred to as “Decree No. 129/2020/ND-CP”).

Article 2. Regulated entities

1. Vietnam Debt and Asset Trading Corporation (hereinafter referred to as “DATC” or “Company”).

2. Organizations and individuals involved in DATC’s financial management mechanism.

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1. The Company is entitled to establish the ownership and right to manage and use debts and assets it purchased and received; manage, use and record debts and assets in accordance with regulations laid down in this document and regulations of relevant laws in force.

2. Each debt purchased by the Company (under either agreement or direction) shall be considered as a specific type of goods, and shall be recorded and monitored by the Company.

3. Debts and assets received from wholly state-owned enterprises and public service providers undergoing rearrangement or ownership conversion or received under the direction of competent authorities shall be managed and monitored out of the Company’s statement of financial position and settled in accordance with regulations of law and this document.

4. Conversion of a debt into capital contribution associated with the restructuring of a wholly state-owned enterprise subject to rearrangement or ownership conversion shall be carried out according to the plan agreed upon (in writing) with the authority that has the power to decide the enterprise restructuring plan in accordance with regulations of law on arrangement and conversion of ownership of enterprises.

Conversion of a debt into capital contribution associated with the restructuring of other enterprises shall be carried out according to specific agreements made with the enterprise’s owner.

5. Use of debts and assets as capital contributed to enterprises must ensure efficiency on the basis of the plans for purchase and handling of debts and assets approved by competent authorities as prescribed. Before assets (excluding debts) are contributed to an enterprise, they must be revalued by a qualified valuation organization in accordance with regulations of law.

6. When receiving, purchasing, selling and settling debts and assets under direction of competent authorities, the Company shall develop and implement plans appropriate to the direction of competent authorities and the Company’s Charter.

7. DATC shall not consolidate financial statements of enterprises of which it owns controlling shares through debt restructuring in the form of conversion of debts into capital contributions.

DATC shall carry out divestment within 05 years from the day on which it official becomes a shareholder of the enterprise of which it owns controlling shares through restructuring. If DATC fails to complete the divestment within 05 years, it shall provide reasons and propose remedial measures to the Ministry of Finance for its written opinions.

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Chapter II

SPECIFIC PROVISIONS

Section 1. CAPITAL MANAGEMENT AND USE

Article 4. Working capital

The Company’s working capital includes:

1. Owner's equity, including:

a) The Company’s charter capital as prescribed by law;

b) Capital accumulated from its business operations and added to the paid-in capital;

c) Other sources of the owner's equity as prescribed by law.

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Article 5. Capital mobilization

1. Capital mobilization rules:

a) The capital mobilization shall be carried out on the basis of the Company’s 05-year development investment plan and annual business plan;

b) The capital mobilization plan must ensure efficiency and solvency.

c) The person giving approval for the capital mobilization plan shall inspect and ensure the proper and efficient use of mobilized capital;

d) Mobilization of capital from foreign organizations and individuals or through issuance of Government-backed bonds shall comply with regulations of law on public debt management and relevant laws;

dd) Mobilization of capital through issuance of corporate bonds shall comply with regulations of law and the Company’s Charter;

e) Mobilization of capital to serve business operations (including guaranteed loans taken from credit institutions by subsidiaries as prescribed in Clause 4 Article 23 of the Law on management and use of state capital invested in manufacturing and business operations of enterprises and restructured enterprises over 50% of charter capital of which is held by DATC as prescribed in Clause 2 Article 22 of the Decree No. 129/2020/ND-CP) must be carried out in a manner ensuring that total outstanding debts payable shall not exceed 03 times the owner's equity recorded on the Company’s latest quarterly or annual financial statements. In which:

- The owner's equity specified on the statement of financial position included in the Company's quarterly or annual financial statements shall exclude the "other funding sources and funds” item.

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2. Authority to decide capital mobilization:

a) The Company’s Board of Members shall carry out the capital mobilization according to Clause 3 Article 23 of the Law on management and use of state capital invested in manufacturing and business operations of enterprises;

b) The Board of Members may authorize the Company's General Director to decide the capital mobilization plan within its competence;

c) In case the capital to be mobilized exceeds the amount specified in Point a of this Clause, or capital is mobilized from foreign entities, the Board of Members shall report the case to the owner’s representative agency for consideration.

Article 6. Capital use rules

1. The Company shall take initiative in using its capital for business purposes in an effective manner that ensures capital preservation and growth as well as adherence to regulations of law, including:
a) Prioritized use of DATC’s resources for restructuring and ownership conversion of wholly state-owned enterprises through receipt, purchase and handling of debts and assets;

b) Use of the Company’s capital for making external investments and purchasing debts and assets to serve its business in accordance with regulations of law and this document. The Company shall assume responsibility for the efficiency of its trading and handling of debts and assets according to the market mechanism.

The Board of Members shall provide specific provisions on documentation, formulation and appraisal procedures, and authority to decide the debt and asset purchase plan applied by the Company which must be conformable with regulations of law and this document;

c) Use of capital for performing tasks which are assigned by competent authorities and appropriate to the Company’s business lines;

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dd) Use of capital for making deposits at the State Treasury and credit institutions operating in Vietnam according to regulations issued by the Board of Members in conformity with regulations of law in force, and providing funding derived from DATC’s working capital for restoration of restructured enterprises as prescribed in Article 22 of the Decree No. 129/2020/ND-CP and regulations on management of risks from debt and asset trading and provision of funding and loan guarantee for restructured enterprises.

2. Use of capital for investment in and purchase of fixed assets which are used for serving the Company’s operation shall:

a) Fixed assets must be appropriate to the Company’s operation and comply with State regulations;

b) Such investment in and purchase of fixed assets must comply with regulations of laws on fundamental construction investment and purchase of fixed assets;

c) Purchased assets must be recorded in accordance with regulations of law in force.

Article 7. Capital preservation

1. The Company shall be responsible for the preservation and growth of state capital invested in the Company as prescribed.

2. The preservation of the Company’s capital shall be made adopting the following measures:

a) Compliance with regulations of law on management and use of capital and assets, profit distribution, other financial management policies and accounting;

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c) Timely settlement of impairment of assets and irrecoverable debts, and making of risk provisions as prescribed in this document and relevant laws;

d) Implementation of other measures for preserving the Company’s capital as prescribed by law.

3. DATC shall conduct annual evaluation of the level of preservation of its capital as follows:

a) If, after setting aside all provisions as prescribed in Article 8 of this document, the Company does not incur loss or earns profit, it has succeeded in preserving its capital. The loss or profit used as the basis for determining the level of capital preservation equals total revenues and other incomes minus (-) revenue deductions minus (-) total expenses incurred;

b) If, after setting aside all provisions as prescribed in Article 8 of this document, the Company incurs losses (including accumulated losses), it has failed to preserve its capital.

Article 8. Setting aside provisions

1. The Company shall set aside and settle the provision for devaluation of inventories, provision for bad debts and provision for loss on investments according to regulations of this document. Other contents concerning making of provisions which are not prescribed in this document shall be performed in accordance with regulations of law applicable to wholly state-owned enterprises and relevant laws.

2. Provision for devaluation of inventories:

a) The Company shall set aside the provision for devaluation of inventories, including assets purchased by DATC’s working capital under agreement or direction, foreclosed assets and assets pending disposition (including real estate);

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3. Provision for bad debts:

a) The Company shall set aside provision for bad debts for: debts purchased by DATC’s working capital under agreement or direction, and other bad debts incurred from its business;

b) The Company is not required to set aside the provision for bad debts for debts received from wholly state-owned enterprises or public service providers undergoing rearrangement or ownership conversion or received under direction of competent authorities, and receivable debts arising from the Company’s performance of tasks assigned by competent authorities.

c) Rules for setting aside provision for debts arising from debt purchase and handling and enterprise restructuring:

- The level of provision shall not exceed the remaining value of the debt purchase cost.

- The specific levels of provision shall be determined according to regulations on making of provisions issued by DATC’s Board of Members provided that the initial provision must be at least 15% of the overdue value of the remaining debt purchase cost of the purchased debt which is more than 6 months to under 1 year overdue, and the level of provision must be equal to the overdue value of the remaining debt purchase cost of the purchased debt which is 5 years or more overdue.

- The overdue period and overdue value of a purchased debt shall be calculated from the time of transfer of the creditor’s rights to DATC (according to the written record or notification of transfer of creditor’s rights) or the latest promise to pay agreement made between the debtor and DATC in conformity with the debt recovery plan and/or the debtor's solvency.

- If a receivable debt is not yet due but DATC has evidence that the debtor has gone bankrupt, initiated bankruptcy proceedings or absconded from their business location, or is prosecuted, detained or tried by law enforcement agencies, or is executing a court judgment or suffering from a fatal disease (as certified by a hospital), or dead, or a debt remains irrecoverable upon the enterprise’s request for execution of the court judgment because the debtor has fled from his or her residence, or the debt is subject to the enterprise’s claim filed in the court but the case involving such debt is dismissed, DATC shall estimate the irrecoverable amount of such debts to set aside provision. The level of provision shall not exceed the remaining value of the debt purchase cost recorded on accounting book.

4. Provision for loss on investments made through restructuring or conversion of debts into capital contributed to enterprises:

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- The level of provision for each investment shall equal the actual book value of that investment when converting the debt into capital contribution, which is equal to the debt purchase cost. The Company is not required to set aside the provision for its capital contribution which is the difference between the book value of the purchased debt and the debt purchase cost.

- The Company is entitled to disregard the accumulated losses incurred by the restructured enterprise before it is officially converted into a joint-stock company.

5. DATC’s Board of Members shall be responsible for issuance of regulations on making of provisions as prescribed in this document.

Article 9. Investment

1. The Company shall make investment in the forms specified in Article 25 of the Decree No. 129/2020/ND-CP and provisions laid down in this document. Other contents concerning investment activities which are not prescribed in this document shall be performed in accordance with regulations of law applicable to wholly state-owned enterprises.

2. Rules for making investment:

a) The Company is entitled to use assets under its management (including cash, fixed assets and other assets) for making investment in a manner that ensures efficiency and capital preservation and compliance with regulations of law and the Company’s investment strategies/plans approved by the owner;

b) The Company is not allowed to make capital contribution or investment in the field of real estate, and is not allowed to make capital contribution or purchase shares of commercial banks, insurance firms, securities companies, venture capital funds, securities investment funds or companies and securities investment fund management companies, except investments and capital contribution made according to Clause 2 Article 25 of the Decree No. 129/2020/ND-CP and other cases decided by the Prime Minister at the request of the Ministry of Finance;

c) DATC shall take initiative in buying and selling shares, convertible bonds or share purchase rights at enterprises of which DATC has shares or has developed restructuring plans so as to facilitate the restructuring of enterprises that are debtors and handling of debts and assets purchased or received;

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- contribute capital to, purchase shares or wholly acquire an enterprise whose manager or representative is spouse, natural parent, parent-in-law, adoptive parent, natural child, adopted child, son-in-law, daughter-in-law, natural brother or sister, brother-in-law or sister-in-law of the Chairperson or member of the Board of Members, Controller, General Director, Deputy General Director or Chief Accountant of the Company; or

- contribute capital with an enterprise of which DATC holds controlling interests to establish a joint-stock company or a limited liability company or execute a business cooperation agreement;

dd) The Company shall not be allowed to use assets leased for operation, borrowed or kept by the Company (except received assets) for making external investments.

3. Authority to issue decisions to make investment shall comply with Article 28 of the Law on management and use of state capital invested in manufacturing and business operations of enterprises.

Article 10. Management of Company's investments

1. DATC shall manage its investments in accordance with the Law on management and use of state capital invested in manufacturing and business operations of enterprises, the Company’s Charter, provisions laid down in this document and relevant laws.

2. The Company shall periodically conduct management, evaluation and supervision of efficiency of its investments.

Article 11. Transfer of Company’s investments

1. Rules for transferring the Company’s investments:

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b) Transfer of the Company’s external investments shall be made based on the list of transferred investments approved by a competent authority; such transfer is made irrespective of the amount of investment and whether the enterprise receiving DATC’s investment gains profit or incurs loss; organization, document preparation, disclosure of information and reporting on transfer of investments shall comply with regulations of law;

c) At the time of formulation of the investment transfer plan (including case of transfer of investment and debts), if the expected transfer price is lower than the book value of the investment for which the provision has been already made by the Company, the transfer shall be made as follows:

- If the provision is equal to or greater than the difference between the expected transfer price and the book value, the Company’s Board of Members or General Director shall decide the transfer within their competence to recover investment capital;

- If the provision is smaller than the difference between the book value and the expected transfer price, the Company’s Board of Members or General Director shall issue a decision on transfer after obtaining written opinions from the Ministry of Finance.

2. Transfer of Company’s external investments:

a) DATC shall carry out transfer of its external investments in accordance with regulations of law applicable to wholly state-owned enterprises;

b) Transfer of government bonds or bonds purchased by DATC to receive interests shall be carried out in accordance with regulations applied at the date of issuance of such bonds or the issuer’s issuance plan. The transfer price of a bond which is transferred before it matures must be determined in accordance with the capital preservation rules. Transfer of bonds registered, deposited and listed on the securities market shall comply with regulations of the Law on securities.

3. Transfer of investments which are made through conversion of debts/assets into capital contribution:

DATC shall conduct transfer of capital contributions through auction (either ordinary auction or lot-based auction). In case the public auction is unsuccessful or the number of shares is not sold up after completion of the auction, the competitive offering shall be adopted. In case the competitive offering is unsuccessful or the number of shares is not sold up after completion of the competitive offering, the put-through method shall be adopted. In which:

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b) Adjustment of the starting price used for capital transfer specified in Clause 3 of this Article shall be carried out as follows:

- In case the public auction is unsuccessful or the number of shares is not sold up after completion of the auction, the starting price may be decreased by not exceeding 10% of the initial starting price for conducting the competitive offering. In case the competitive offering is unsuccessful (except the provision in the second dash Point b of this Clause) or the number of shares is not sold up after completion of the competitive offering, the starting price of the competitive offering may be decreased by not exceeding 10% for conducting the public auction;

- In case only one investor participates in the competitive offering (who has submitted valid documents and fully completed procedures for participation in a competitive offering session), the put-through method shall be conducted using the starting price of the competitive offering. In case the put-through is unsuccessful or the number of shares is not sold up after completion of the put-through session, the starting price of the competitive offering may be decreased by not exceeding 10% for conducting the public auction.

c) In case of transfer of investments in joint-stock companies that have been registered or listed on Stock Exchanges, DATC shall, in addition to the public auction, competitive offering and put-through methods, be allowed to transfer its shares through the Stock Exchange's trading system.

d) If the valuation report expires when the Company is carrying out the investment transfer, it shall not be required to formulate a new transfer plan but must re-determine the starting price for continuing the investment transfer according to the adopted transfer method (if the public auction is unsuccessful or the investment to be transferred is not sold up after the auction, a competitive offering shall be held according to the re-determined starting price).

4. Transfer of investment and receivable debts:

DATC shall be allowed to transfer its investment established from conversion of debts into capital contribution and receivable debts at enterprises in which DATC has both capital contribution and receivable debts according to the transfer methods specified in Clause 3 of this Article. To be specific:

a) Both the investment and the receivable debt are determined to be of one lot;

b) The bidder is required to purchase the entire lot of investment and receivable debt;

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d) The initial transfer price shall not be lower than total value of the investment (or capital contribution) and the receivable debt determined by a qualified valuation organization;

dd) In case of unsuccessful transfer, DATC shall adjust the transfer price according to the provisions of Clause 3 of this Article.

5. Authority to decide the investment transfer

DATC shall conduct investment transfer according to regulations on authority to issue decision to make external investments in Article 28 of the Law on management and use of state capital invested in manufacturing and business operations of enterprises. In case of transfer of investment and receivable debt, the transfer price used as the basis for determining the authority to decide the investment transfer shall be the sum of the book value of the investment and the remaining value of the debt purchase cost.

Section 2. ASSET MANAGEMENT

Article 12. Investment, construction and purchase of fixed assets

1. The Company shall carry out investment, construction and purchase of fixed assets in accordance with regulations of the Law on management and use of state capital invested in manufacturing and business operations of enterprises. To be specific:

a) Authority to decide investment, construction and purchase of fixed assets shall comply with Article 24 of the Law on management and use of state capital invested in manufacturing and business operations of enterprises.

b) Provisions on certain cases:

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- With regard to investment in and purchase of external fixed assets for use (including vehicles serving the Company’s business), the Company must comply with regulations of the Law on bidding and other relevant laws.

- With regard to investment in, purchase and use of vehicles (motor vehicles) to serve the business trips of managerial position holders and general work, the Company is required to meet rigorous purchase standards and limits in order to ensure openness, transparency, cost efficiency and effectiveness in accordance with regulations of law in force.

2. Depreciation of fixed assets: The Company shall carry out depreciation of fixed assets in accordance with the Ministry of Finance’s regulations on management, use and depreciation of fixed assets.

3. Leasing out, offering assets as pledges or collateral:

The Company is entitled to lease out or offer its assets as pledges or collateral by adhering the principle that efficiency, capital preservation and growth must be assured in accordance with regulations of law whereby the authority to decide the use of assets as pledges or collateral shall comply with Article 26 of the Government’s Decree No. 91/2015/ND-CP dated October 13, 2015 on state capital investments and utilization and management of capital and assets of enterprises (hereinafter referred to as “Decree No. 91/2015/ND-CP”) and its amending documents (if any).

4. Disposition, transfer or sale of fixed assets:

a) The Company shall be allowed to act on its initiative in disposition, transfer or sale of fixed assets which have been damaged, technically obsolete, or removed from service or utilization on the principle of openness, transparency and adherence to regulations of law;

b) Authority to make decision on disposition, transfer or sale of fixed assets shall comply with Clause 2 Article 27 of the Decree No. 91/2015/ND-CP and its amending documents (if any);

c) Method of disposition, transfer or sale of fixed assets:

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- Disposition, transfer or sale of fixed assets associated with land must comply with regulations of law on land;

d) Procedures for disposition, transfer or sale of fixed assets shall comply with regulations of law applicable to wholly state-owned enterprises.

5. The Company shall develop regulations on asset management which clearly defines the responsibility to manage asset in each stage; fully, accurately and promptly record assets; organize inventory and inspection of assets on a periodical basis or at the request of the owner; carry out investment, management and use of assets in accordance with regulations of law and this document.

Article 13. Management of purchased and received assets

1. Asset handling methods:

a) Transfer of assets (including projects purchased or received under direction);

b) Use of assets (including assets purchased or received under direction) for engaging in business cooperation, joint venture or association or contributing as share capital;

c) Management and investment in assets for operation, sale or lease (including projects purchased or received under direction).

2. Rules for handling assets (including projects purchased or received under direction):

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In case an asset is used for engaging in business cooperation, joint venture or association or contributing as share capital, the contribution value shall be agreed upon between two parties but shall not be lower than the value re-determined by the valuation organization;

b) The sale of asset shall be conducted by adopting public auction, competitive offering or put-through method as prescribed by law.

In the event of transfer of land-use rights, the Company shall comply with regulations of the Law on land;

c) With regard to received assets which are used to serve DATC’s business purposes, DATC shall comply with the Ministry of Finance’s regulations on transfer, receipt and handling of excluded debts and assets when arranging or converting ownership of wholly state-owned enterprises and public service providers and their amending documents (if any);

d) With regard to assets purchased or received under direction, DATC shall handle assets according to the plan for sale, purchase and handling of assets under direction approved by a competent authority (if any), and asset handling methods and rules laid down in Clause 1 of this Article and Points a, b, c of this Clause.

In case DATC receives assets under direction for handling or recovering state capital, it shall be entitled to the asset handling fee which must be sufficient to cover asset handling costs plus (+) a part of management fee according to the Ministry of Finance’s regulations and each direction plan.

3. Statement of proceeds from asset handling:

a) With regard to assets purchased under agreement (including foreclosed assets) and direction:

- The proceeds from sale or lease of assets shall be recorded as the Company’s revenues.

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- The value of a foreclosed asset shall not be recorded as the Company’s revenue but shall be recorded as an increase in the value of assets pending disposition, equal the value of the debt, and be offset against the debt purchase cost at the time of receipt of asset. In case the value of the debt is greater than the debt purchase cost recorded on accounting book, the value of asset pending handling shall equal the debt purchase cost recorded on accounting book.

- Based on the handling results of asset pending handling, DATC shall record the proceeds in the same manner as assets purchased under agreement;

b) With regard to assets received from enterprises or public service providers undergoing rearrangement or ownership conversion:

- In case of sale or temporary lease of assets before they are handled adopting other methods, the entire proceeds (excluding VAT as prescribed) shall be recorded as debts payable for determining responsibility to pay in accordance with the Ministry of Finance’s regulations on transfer, receipt and handling of excluded debts and assets when arranging or converting ownership of wholly state-owned enterprises and public service providers and their amending documents (if any).

- In case of assets received as capital contribution, leased or used for business purposes:

+ Before being handled, the asset must be re-valued by a qualified valuation organization as prescribed by law.

+ Based on the asset’s value re-determined by the valuation organization, DATC shall make a payment not exceeding 10% of the asset's value to the asset managing enterprise (if any) at the time when it is put in operation.

+ DATC shall record an increase in the asset’s value which is equal to the re-determined asset's value and an increase in the paid-in capital which is equal to the re-determined asset's value minus the fee paid to the asset managing enterprise (if any). Upon receipt, DATC shall be entitled to the ownership of the asset, and shall manage, use and operate it in accordance with regulations;

c) Payments received from enterprises handling assets before they are transferred and recovered values of assets lost or damaged while they are managed by other enterprises shall be recorded as debts payable for determining responsibility to pay in accordance with the Ministry of Finance’s regulations on transfer, receipt and handling of excluded debts and assets when arranging or converting ownership of wholly state-owned enterprises and public service providers.

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Article 14. Company’s responsibilities

1. Formulate and promulgate debt management regulations in accordance with regulations of law in force (including debts receivable, including those purchased or received, and debts payable); assign and determine responsibilities of collectives or individuals to monitor, recover and settle debts; compare and verify debt certification and classification, expedite debt collection and proactively settle debts in accordance with provisions of this document and relevant regulations.

2. Open monitoring books to record and monitor payment of debts sorted by debtors, debts receivable and debts payable (including interests receivable and those payable); regularly classify debts by their overdue periods (undue debts, due debts, overdue debts, bad debts and irrecoverable debts) or by their characteristics (long-term debts, short-term debts, concessional loans, commercial loans, foreign loans, and government-guaranteed loans, including debts receivable and those payable under direction of the Government or the Prime Minister).

3. Carry out regular assessment and analysis of debtors' solvency, expedite the debt collection so as to avoid debts becoming overdue or irrecoverable; periodically carry out debt comparison; set aside provision for bad debts as prescribed in Article 8 of this document.

4. With regard to foreign currency debts receivable and foreign currency debts payable, DATC shall open a monitoring book to record amounts in original currency (including principal and interest amounts), amounts converted into VND, reassess and deal with exchange rate differences as prescribed.

5. With regard to debt purchase plans, a separate monitoring book shall be opened to manage debts out of the statement of financial position (including principal and interest amounts) and shall be used as the basis for debt comparison with debtors and assessment of the plan’s efficiency; DATC shall monitor received debts out of its statement of financial position and manage them in a manner that is suitable for characteristics and period of each received debt.

6. With regard to debts purchased or received under direction and those arising from performance of assigned tasks, DATC shall develop specific plans according to direction of competent authorities; monitor and record such debts separately to serve assessment of task performance results.

7. Any difficulties arising during the handling of such debts, overdue debts or irrecoverable debts shall be reported to the Ministry of Finance for considering and settling within its competence or sending the case to competent authorities for consideration.

8. DATC must provide both objective and subjective reasons for receivable debts (excluding those arising from performance of tasks under direction of the Government or the Prime Minister) which are irrecoverable. In case of subjective reasons, DATC shall request relevant individuals or collectives to make compensation. In case of objective reasons, the Board of Members, Board of Executives and relevant departments shall clearly define the reasons and make records. If a debt is determined to be related to business activities, it shall be offset against by the provision for bad debts and the remaining debt amounts shall be recorded as the Company’s business expenses.

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10. Develop debt repayment plans, ensure balance of cash flows for ensuring debt repayment; pay debts on schedule as committed; manage and administer to ensure repayment of debts (excluding debts incurred from performance of tasks under direction of competent authorities); early find out difficulties in repaying debts and take actions against such difficulties to avoid overdue debts. In case of failure to deal with such difficulties in a timely manner resulting in debts which are more than 06 months overdue, the owner shall, based on consequences arising from such failure, decide to impose disciplines as prescribed. In case of failure to deal with such difficulties in a timely manner resulting in insolvency, DATC shall assume responsibility before the owner and before the law.

11. When DATC is unable to fully pay debts and other liabilities which arise in the course of its business operations and become due, the General Director shall report the case to the Board of Members for finding out measures for dealing with its financial difficulties and notifying DATC’s financial status to all creditors. In this case, neither of Chairperson of the Board of Members, members of the Board of Members and General Director of DATC is entitled to issue decisions on pay rise, distribute profits and pay bonuses to managerial position holders and employees of DATC. If DATC finds that it is unable to pay debts payable incurred from DATC’s performance of tasks under direction or the Government or the Prime Minister when they become due, it shall report the case to the Ministry of Finance or Government for consideration.

12. DATC shall be allowed to exclude receivable debts and payable debts arising from performance of tasks under direction of competent authorities when carrying out assessment and supervision of state capital, financial supervision, business performance assessment and disclosure of financial information by DATC.

Article 15. Handling receivable debts arising in the course of business operations (excluding debts purchased, received or arising from performance of tasks under direction of the Government or the Prime Minister)

1. The Company shall handle receivable debts arising in the course of its business operations in accordance with regulations of law on debt management applicable to wholly state-owned enterprises.

2. Debt handling methods:

a) Expedite collection of debts or disposition of collateral (if any) for debt recovery;

b) Charge off, reschedule or forgive debts;

c) Sell receivable debts in accordance with regulations of law, including those overdue, unlikely to be paid or irrecoverable on the principle that the provisions for these debts must be fully set aside and such debts cannot be sold directly to debtors. The debt selling price shall be agreed upon by the parties who shall assume responsibility for the debt selling decision.

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3. Specific provisions on handling of receivables:

a) Handling of receivable debts which are still recoverable:

DATC shall actively expedite and employ all measures for collecting receivable debts which are still recoverable. With regard to debts with guarantee or collateral or of which the debtor is following dissolution or bankruptcy procedures, DATC shall continue adopting measures for collecting debts according to regulations of law relevant to characteristics of such debts;

b) Handling of receivable debts which are irrecoverable:

- Clearly define the reasons and responsibility of relevant collectives and individuals, and request them to make compensation according to the debt management regulations adopted by the DATC’s Board of Members.

- Use the provision for bad debt for offsetting such irrecoverable debts.

- In case of sale of debts in accordance with regulations of law, after clearly defining the reasons and responsibility of relevant collectives and individuals, and requesting for compensation (if any), the loss actually incurred of each irrecoverable debt is the difference between the book value of the receivable debt and the debt amounts recovered (compensation paid by the entities causing damage, proceeds from sale of assets of debtor, or asset received under a decision issued by a competent court or authority), and shall be offset with funding from DATC’s provision for bad debts (if any). The remaining loss amounts shall be recorded as DATC’s expenses.

- DATC shall continue monitoring irrecoverable receivable debts which have been handled as prescribed (except sold debts) out of its statement of financial position and on notes to financial statements for a period of at least 10 years from the debt handling date. The recovered debt amounts that remain after deducting relevant expenses shall be recorded as other incomes of DATC;

c) Debt foregiveness:

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+ The debtor has completed the dissolution or bankruptcy process in accordance with regulations of law on dissolution or bankruptcy: Decision on dissolution of the enterprise (debtor) issued by a competent authority or a court’s decision to declare the enterprise’s bankruptcy in accordance with the Law on bankruptcy. In case of dissolution, the enterprise’s notification or certification of dissolution given by the authority competent to establish the enterprise or business registration office or supervisory tax authority of the enterprise is required.

+ In case the debtor is an enterprise or organization that has shutdown and is unable to pay debts or has nobody taking charge of paying debts: the certification given by the authority competent to establish the enterprise or business registration office or supervisory tax authority to certify that the enterprise has shutdown and is unable to pay debts is required.

- If the debtor is an individual, one of the following documents is required:

+ Death certificate (copy) or a local authority’s certification stating that the debtor died or has been missing without leaving inheritance for paying debt.

+ A local authority’s certification stating that the debtor is still alive but incapacitated or the heir is unable to pay debts.

+ A wanted notice or certification of a law enforcement agency stating that the debtor is incapable of civil acts and has escaped or is facing prosecution or imprisonment sentence.

Article 16. Handling of purchased or received debts

1. DATC shall handle purchased or received debts in accordance with provisions of Article 16 of the Decree No. 129/2020/ND-CP.

2. Contents about the handling of purchased or received debts shall comply with Article 17 of the Decree No. 129/2020/ND-CP and the following provisions:

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If DATC adjusts the interest rate charged on the debt, the new interest rate must be conformable with the debtor’s debt repayment capacity and market conditions but shall not be lower than the average rate of interests on 12-month term deposits announced by the Operations Centers of four largest commercial banks (including Vietcombank, VietinBank, BIDV and Agribank) at the time of consideration of interest rate adjustment. The rate of interest on 12-month term deposits of each bank shall be the one announced by that bank on its website or on written notification of interest rates applicable to institutional customers;

b) The Board of Members or General Director as assigned by the Board of Members shall consider offsetting interests and a part of debt principal payable by the debtor against the difference between the book value of the purchased debt and the debt purchase cost but must ensure the efficiency of the debt purchase plan;

c) DATC may reach agreement with the debtor and a third party on transferring the obligation to pay debt to the third party on the principle that such transfer must be unanimously agreed upon by third parties and facilitate DATC’s debt collection. In this case, the transferred debt shall not be recorded as DATC’s revenues;

d) In case there is an entity that commits to purchase the entire debt before DATC enters into the debt purchase contract, and meets all DATC’s requirements in terms of price, payment, deposit, capacity to engage in enterprise restructuring or assist enterprise’s stabilization after restructuring, DATC shall sell the debt at the agreed-upon price;

dd) The disposition of the collateral for the debt shall comply with the agreement between DATC, debtor and relevant parties which must be conformable with regulations of relevant laws. The sale of the collateral which is the land use rights must comply with regulations of the Law on land;

e) Reduction of entire debt

- With regard to received debts:

+ The Company shall carry out annual review and classification of debts to assess the ability to collect received debts.

+ With regard to received debts which are determined to be irrecoverable as prescribed (including debts which have been handled before transferred) and have been monitored out of the statement of financial position for more than 10 years (including the period in which the debt has been monitored out of balance sheet before it is transferred to DATC, if any), DATC shall comply handle such debts in accordance with Point g Clause 2 Article 17 of the Decree No. 129/2020/ND-CP.

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+ Entities eligible to receive debt forgiveness and requirements to be satisfied shall comply with Point c Clause 3 Article 15 of this document.

+ When carrying out debt forgiveness, the Company shall prepare documents for each borrower and send them to the Board of Members or General Director as assigned by the Board of Members for considering and approving forgiveness of debt within the scope of debt purchase plan within the competence of the Board of Members or General Director. Funding used for debt forgiveness shall be the difference between the book value of the debt and the debt purchase cost. If the amount of debt forgiven is greater than such difference, the remaining amount shall be offset against with the provision for bad debts. The amount of debt forgiven that remains after it has been offset against by the provision for bad debts shall be recorded as the Company’s business expenses.

3. Recording of proceeds from handling of purchased and received debts

a) With regard to debts purchased under agreement or direction:

- Amounts of debts collected in cash from debtors or proceeds from sale of debts or collateral shall be recorded as the Company’s revenues.

- In case of capital contribution which is equal to the difference between the book value of the debt and the debt purchase cost, DATC shall only record and monitor such investment according to face value out of its statement of financial position. In case of conversion of debt into capital contribution which is equal to the debt purchase cost, the Company shall record an increase in its investment (capital contribution) and a decrease in its debt purchase cost which is equal to the value of the debt converted into capital contribution determined at the time of conversion. The Company shall record revenues and expenses incurred when transferring such capital contribution in accordance with this document and relevant laws.

- In case DATC reaches an agreement with the debtor and a third party for transferring the obligation to pay debt to the third party, the transferred debt shall not be recorded as DATC’s revenues;

b) With regard to received debts:

The entire proceeds from recovery or handling of received debts, including recovered amounts of debts (debt amounts collected from enterprises in respect to debts which have been handled before transferred, debt amounts collected from debtors, and late payment interests charged on enterprises that handle debts before transfer), proceeds from sale of received debts, and proceeds from sale, lease or operation of collateral (excluding VAT as prescribed), shall be recorded as debts payable for determining responsibility to pay in accordance with the Ministry of Finance’s regulations on transfer, receipt and handling of excluded debts and assets when arranging or converting ownership of wholly state-owned enterprises and public service providers.

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1. With regard to an equitized enterprise as prescribed in Point a Clause 1 Article 20 of the Decree No. 129/2020/ND-CP:

a) Reduction in debt repayment obligation must be associated with the restructuring or equitization plan as prescribed by law on enterprise equitization;

b) The maximum reduction in debt repayment obligation is equal to the negative number of the owner's equity according to a competent authority’s decision to disclose the enterprise value minus reductions in debt repayment obligation from other creditors (if any) and shall not exceed the difference between the book value of the purchased debt and the debt purchase cost by the time the decision to reduce debt repayment obligation is issued;

c) From the time of determining the enterprise value to the time of being officially converted into a joint-stock company, if the restructured enterprise suffers from losses, DATC and the creditors participating in the restructuring shall consider and continue the reduction in debt repayment obligation by means of offsetting a part of the debt against the difference between the book value of the purchased debt and the debt purchase cost after the restructured enterprise has clearly defined the reasons and responsibility for such losses of relevant collectives and individuals at the request the owner’s representative agency;y

d) The Board of Members or General Director as assigned by the Board of Members shall consider and continue the reduction in debt repayment obligation equal to the accumulated losses by means of offsetting the debt against the difference between the book value of the purchased debt and the debt purchase cost but must ensure the efficiency of the debt collection plan.

2. With regard to other enterprises as prescribed in Point b Clause 1 Article 20 of the Decree No. 129/2020/ND-CP:

The reduction in debt repayment obligation given to another enterprise that is a debtor of DATC must be associated with the plan for conversion of debt into capital contribution approved by DATC’s competent authority. The maximum reduction is equal to the accumulated losses recorded on the latest financial statements, which have been audited by an independent audit organization, of the debtor’s enterprise and shall not exceed the difference between the book value of the purchased debt and the debt purchase cost by the time the decision to reduce debt repayment obligation is issued.

3. Reductions in debt repayment obligation given to debtors do not influence the fulfillment of responsibilities by entities causing former financial losses.

Article 18. Handling of payable debts

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2. With regard to issuance of bonds and bills of exchange under guarantee of the Government or the Prime Minister for performance of tasks assigned by competent authorities, DATC shall comply with relevant schemes approved by such competent authorities.

3. DATC shall handle debts incurred from performance of tasks assigned by the Government or the Prime Minister according to debt handling plans developed under direction of competent authorities, and monitor them separately to serve assessment of task performance results. Any difficulties arising during the handling of such debts shall be reported to the Ministry of Finance for considering and settling within its competence or sending the case to the Government or the Prime Minister for consideration.

Section 4. MANAGEMENT OF REVENUES, EXPENSES AND BUSINESS PERFORMANCE

Article 19. General principles

1. The Company’s revenues and expenses shall be determined in conformity with accounting standards, the Company's Charter and this document. Determination of revenues, expenses and other incomes for tax assessment purposes shall comply with regulations of the law on taxation and relevant laws.

2. Revenues and expenses incurred from implementation of plans for purchase, sale or receipt of debts and assets under direction of competent authorities shall be recorded according to the plans approved by competent authorities.

3. In case revenues are not sufficient to cover expenses incurred from performance of tasks assigned by competent authorities, DATC shall report the case to the Ministry of Finance for considering and settling within its competence or sending the case to the Government or the Prime Minister for consideration.

Article 20. Revenues and other incomes

1. Revenues earned from business operations include:

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b) Revenue from handling of debts and assets purchased under agreement and direction:

- Revenue from handling of purchased debts:

+ Revenue from debt collection;

+ Revenue from sale of debts and collateral;

+ Revenue from lease and operation of collateral;

- Revenue from handling of purchased assets:

+ Revenue from sale of assets;

+ Revenue from lease and operation of assets;

- Revenue from transfer of capital contributions which are established from assets purchased or received or from conversion of debts into capital contributions in restructured enterprises;

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2. Revenues earned from financial activities include:

a) Interests earned on purchased government bonds or bonds;

b) Deposit interests (including estimated deposit interests as prescribed); late payment interests;

c) Dividends (excluding stock dividends), profits earned from contribution of share capital and contribution of capital to joint ventures and business cooperation;

d) Interests on loans given;

dd) Positive differences between the recovery values and book values of the Company’s external investments (excluding investments established from assets purchased or received or from conversion of debts into capital contributions in restructured enterprises);

e) Positive differences between values of assets contributed as capital and book values of these assets.

3. Other incomes include proceeds from liquidation, transfer or sale of fixed assets, fines for breach of contract, deposited amounts left by customers, and incomes from irregular activities.

Article 21. Company’s expenses

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a) Costs of receipt and handling of debts and assets:

- Discounts given to debtors for prompt repayment of debts;

- Costs of repairs and upgrades to assets (if any): These costs shall be recorded as assets on the statement of financial position when incurred and included in direct costs of handling received debts and assets when incomes are generated from such repaired or upgraded assets.

- Costs of outsourced services related to handling of debts and assets and transfer of investments;

- Other costs incurred during handling of received debts and assets (including debts and assets received under direction);

b) Expenses incurred from purchase and sale of debts and assets under agreement and direction:

- Debt purchase costs shall be recorded as expenses in the period according to the following provisions:

+ In case of a debt collected at once or sold:

(i) In case a debt is sold or collected at once in cash, the entire debt purchase cost shall be recorded as expenses in the period.

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+ In case of a debt collected multiple times:

 (i) In case the proceeds earned from debt handling (repayments made by debtor; proceeds from operation or sale of the collateral) is greater than the debt purchase cost at the time of debt handling: the entire debt purchase cost shall be recorded as expenses in the period.

 (ii) In case the proceeds earned from debt handling (repayments made by debtor; proceeds from operation or sale of the collateral) is smaller than the debt purchase cost at the time of debt handling: a part of the debt purchase cost which is equal to the proceeds actually earned from the debt handling or to be collected as committed under the debt handling plan approved by a competent authority shall be recorded as expenses in the period. The remaining debt purchase cost shall continue to be recorded as expenses by adhering the aforesaid principle when another debt handling method is adopted.

- Expenses incurred from purchase and sale of assets include asset purchase price and other relevant costs (costs of transporting, repairing or upgrading assets, land rents, etc.). If an asset is sold, DATC shall record the entire costs of purchasing that asset as expenses in the period. If an asset is leased out, DATC shall depreciate the asset and record all relevant costs as its expenses in the period as prescribed.

- Direct costs incurred from handling of debts and assets, and enterprise restructuring:

+ Contributions to the provision for bad debts arising from debt trading activities; provision for loss on investments made by means of conversion of debts into capital contribution; provision for devaluation of inventories;

+ Costs of outsourced services related to handling of debts and assets:

(i) Costs of maintaining, managing, operating and handling collateral of which DATC has taken delivery;

(ii) Costs of valuation services, organization of auction of debts or assets which are sold, leased out, used as capital contribution or contributed to joint ventures, associations or business cooperation;

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(iv) Payments to independent audit organizations;

(v) Costs of debt collection services;

(vi) Judgment enforcement charges;

(vii) Litigation costs (if any);

(viii) Advertising costs (including newspaper advertising);

 (ix) Costs of legal counseling or counseling services;

(x) Costs of other services employed to serve handling of debts and assets.

+ Payments to DATC’s officials seconded to enterprises in which DATC has capital contribution or enterprises undergoing restructuring process (including travel costs and accommodation costs, etc.);

+ Other costs related to handling of debts and assets, and enterprise restructuring;

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+ In case the proceeds earned from the sale of the entire or a part of the investment are greater than the book value of that investment, the entire investment value shall be recorded as expenses in the period.

+ In case the proceeds earned from the sale of the entire or a part of the investment are smaller than the book value of that investment, the book value of that investment that remains after it has been offset against by the provision on loss on investments shall be recorded as expenses in the period;

c) Brokerage fees paid when recovering, purchasing or selling debts and assets, or leasing assets (including collateral) must adhere to the following provisions:

- Pursuant to relevant regulations in force adopted by the State and specific characteristics of the Company, the Company’s Board of Members shall formulate and promulgate regulations on payment of brokerage fees which shall be consistently applied and made publicly available in the Company. The Company’s Board of Members and General Director shall assume legal responsibility for the Company's decisions to pay brokerage fees.

- The Company must ensure the economic efficiency achieved from brokerage services.

- Vietnamese and foreign entities that provide brokerage services to the Company shall be entitled to receive brokerage fees.

- Brokerage fees shall not be paid to designated customers, managerial position holders and employees of the Company.

- Brokerage fees shall be paid under contracts or certifications made between the Company and brokerage service providers. Such document shall, inter alia, have the following information: Name, address, ID card number of representative of the brokerage service provider; contents of payment (debt and asset handling results brought by the brokerage service provider to the Company); brokerage fee; payment method; validity period of brokerage service; responsibilities of the parties;

d) Payments of taxes, fees and land rents related to business operations as prescribed by law.

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The Company’s administrative expenses shall comply with its regulations on internal expenses issued by the Company’s Board of Members in conformity with State regulations applicable to wholly state-owned enterprises. To be specific:

- Costs of salaries shall comply with Article 22 of this document;

- Payments for employees: Compulsory insurance premiums; health and accident insurance premiums; contributions to the voluntary pension fund and social security funds, and costs of purchase of voluntary pension insurance and life insurance;

- Payments for Controllers; costs of hiring consultants by the Board of Members;

- Contributions to the provision for bad debts (excluding bad debts arising from debt trading activities);

- Costs of hiring independent audit organizations;

- Depreciation costs of fixed assets, tools and devices;

- Payments of taxes, fees and other expenses as prescribed by law.

3. Financial expenses:

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b) Negative differences between the recovery values and book values plus (+) transfer fees and other costs incurred from transfer of the Company’s external investments (excluding investments established from assets purchased or received or from conversion of debts into capital contributions in restructured enterprises);

c) Exchange rate differences;

d) Payment discounts;

dd) Provision for loss on long-term investments which is set aside in accordance with provisions laid down in this document (excluding investments established from conversion of debts into capital contributions);

e) Interests on mobilized funds as prescribed;

g) Costs incurred from purchase and sale of government bonds or bonds;

h) Depository and trading service fees incurred when transferring financial investments;

i) Negative differences between values of assets contributed as capital and book values of these assets;

k) Payments of taxes, fees and other financial expenses as prescribed by law.

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a) Expenses incurred from transfer, sale or liquidation of fixed assets;

b) Expenses incurred from recovery of debts removed from accounting book: The Company is allowed to make payments to entities that have made contribution to the recovery of debts written off according to their contribution and performance. Procedures and legal liability for making these payments shall be same as those for payment of brokerage fees specified in Point d Clause 1 of this Article;

c) Asset losses remaining after they are offset against by funding sources prescribed by law;

d) Expenses incurred from marketing, communication, customer meetings, guest reception, external affairs and gifts;

dd) Other legitimate and lawful expenses.

5. The following amounts shall not be recorded as the Company’s expenses:

a) Costs of acquisition, construction and installation of tangible and intangible fixed assets which are included in the costs of such tangible and intangible fixed assets as prescribed;

b) Loan interests which are included in investment and construction costs;

c) Payments without valid documentary evidences;

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dd) Fines for violations against law committed by individuals.

Article 22. Salary fund and part-time remunerations

1. DATC’s salary fund shall be determined in accordance with regulations in force applicable to wholly state-owned enterprises and regulations adopted by the Ministry of Labor, War Invalids and Social Affairs in conformity with DATC’s specific operational characteristics. The salary fund shall be managed, distributed and used according to specific regulations issued by DATC’s Board of Members.

2. Part-time remunerations shall be paid to DATC’s officials, including DATC’s executives, DATC’s officials appointed to hold positions in other enterprises, and those appointed to manage or participate in management of DATC’s capital invested in other enterprises.

3. Part-time remunerations shall be paid with funding derived from the remunerations which are actually paid by enterprises in which DATC has capital to DATC’s officials (including DATC’s executives) who are appointed to hold positions in other enterprises and transferred to DATC, and shall be paid according to the following rules:

a) Part-time remuneration shall be paid according to the performance of the official but shall not exceed 50% of his/her salary actually paid by the Company;

b) The part-time remuneration which is not yet fully paid in a year shall be used in the following years;

4. DATC shall manage and distribute part-time remunerations according to regulations on management of part-time remunerations issued by the Company’s Board of Members in conformity with this document.

Article 23. Profits and profit distribution

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2. The Company shall distribute profits and establish funds in accordance with regulations of law applicable to wholly state-owned enterprises.

Section 5. SUPERVISION AND ASSESSMENT OF BUSINESS PERFORMANCE; FINANCIAL PLANS; ACCOUNTING, STATISTICS AND AUDITING WORKS

Article 24. Supervision, assessment of business performance and enterprise ranking

1. The Company shall implement internal supervision mechanisms applicable to wholly state-owned enterprises, and bear inspection of business performance by the owner and competent authorities as prescribed.

2. The Company's Board of Members shall carry out annual assessment of its business performance and submit the assessment report to the Ministry of Finance for considering and announcing enterprise ranking results on the basis of assessment criteria which are conformable with the Company’s specific operational characteristics and regulations applicable to wholly state-owned enterprises.

Article 25. Accounting and auditing

1. The Company shall organize accounting works in accordance with regulations of law on accounting in force and the Ministry of Finance’s guidelines, and in a manner suitable for its specific operational characteristics.

2. The Company’s annual financial statements must be audited by an independent audit organization as prescribed.

3. The Company shall conduct internal control and audit in accordance with regulations of law.

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1. Based on the Company’s orientations of 05-year business development strategies/plans approved by the owner, the Company shall develop its own 5-year business and financial plans.

2. Based on the Company's 5-year business plan, the Company's capacity and market demands, its Board of Members shall annually decide the business plan of the following year.

3. Based on the business plan decided by its Board of Members, the Company shall carry out assessment of its business performance of the reporting year and develop the financial plan of the following year which shall be submitted to the Ministry of Finance by July 31 of every year.

4. The Ministry of Finance shall consider the financial plan submitted by the Company and officially give written opinions to the Company for completing its financial plan. The completed financial plan shall be the official financial plan which shall be used as the basis for the Ministry of Finance to carry out inspection and assessment of the Company’s business performance.

Article 27. Financial statements, statistical reports and other reports

1. At the end of accounting period (quarterly/annual), the Company is required to prepare, present and submit financial statements and/or statistical reports to regulatory authorities, and perform financial disclosure in accordance with regulations of law in force. The Company's Board of Members shall assume responsibility for the accuracy and truthfulness of its financial statements, statistical reports and financial disclosure.

2. In addition to the financial statements and statistical reports prepared and submitted periodically as mentioned above, the Company shall prepare and submit ad hoc reports at the request of the Ministry of Finance and regulatory authorities. In case the Company gets domestic or foreign loans under guarantee of the Government, it shall be required to prepare and submit reports in accordance with regulations of law on Government-guaranteed debt management.

Chapter III

IMPLEMENTATION

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1. The plans for purchase and handling of debts and assets approved by the effective date of the Circular promulgating this document shall remain valid or be revised in accordance with this document.

2. Provisions set aside before the effective date of the Circular promulgating this document:

a) If the level of provision set aside for each plan is higher than that prescribed in this document, that provision must not be reversed;

b) If the level of provision set aside for each plan is lower than that prescribed in this document, the Company is required to make additional contribution to that provision as prescribed in this document.

Article 29. Responsibility for implementation

1. DATC’s Board of Members decides to authorize its General Director to take charge of issues falling within its jurisdiction as prescribed in this document. Such authorization to the General Director must be made in writing.

2. DATC’s Board of Members and General Director, relevant organizations and individuals are responsible for the implementation of this document.

Difficulties that arise during the implementation of this document should be reported to the Ministry of Finance for consideration./.

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