Some measures to improve the financial situation at the Northeast Maritime Safety Enterprise

From those comments, combined with the understanding of the actual situation at the enterprise and a little bit of my own understanding, I would like to boldly propose some measures to improve the financial situation of the Northeast Maritime Safety Enterprise with the hope of contributing to some extent to improve the financial situation of the enterprise.

3.2.1. Strengthen inventory management.

* Basis of solution.

Inventory management plays an important role in the production and business activities of the enterprise. If the inventory is too small, the enterprise will not be able to provide enough products to customers, leading to reduced revenue or insufficient raw materials for production and construction. Too much inventory will cause damage, loss of product quality, increased costs for warehouse rental, insurance, supervision personnel as well as affect the production process.

Inventory is an item that accounts for a large proportion of the total working capital of the enterprise. In 2017, the value of inventory was 9,981,977,344 VND, accounting for 39.54% of current assets. Specifically:

Table 2.9: Inventory details table

Unit: Vietnamese Dong

Target

Amount	Shelf rate (%)
Raw materials	2,055,365,888	20.59%
Tools, instruments	2,983,110,786	29.88%
Work in progress	4,943,500,670	49.52%
Total	9,981,977,344	100%

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(Source: Corporate financial reports - finance and accounting department)

The enterprise's inventory is mainly due to the enterprise's unfinished production and business costs, accounting for 49.52%. Currently, the enterprise is carrying out projects such as dredging and maintaining the Hon Gai - Cai Lan maritime route, the unfinished production and business costs are to serve this project.

Raw materials and supplies account for 20.59% and tools and equipment account for 29.88%. This shows that a significant portion of the enterprise's assets have been appropriated, causing a decrease in working capital, which can easily lead to local capital shortages. Enterprises need to have reasonable measures to manage inventory.

* Content of the solution.

- For raw materials, materials and tools.

The firm needs to classify inventory items into groups based on their value impact on the firm. In addition, the firm needs to determine which items are key, important, and outstanding. Once these are determined, the firm can make decisions to balance demand and costs and can stock sufficient quantities of the necessary items.

Determine and maintain inventory levels

Warehouse management becomes more difficult because the enterprise has a fairly large scale and goods are diverse in design and type. Inventory needs to be classified reasonably. When calculating the basic inventory, the enterprise also needs to consider factors such as the time from ordering to receiving the product, etc. Insufficient inventory affects sales, reordering is quite costly and time-consuming. In addition, shortages of supplies, raw materials or important components of the production process will increase operating costs. Therefore, building a safety margin for inventory will help the enterprise avoid the above shortages. Determining the inventory level also helps the enterprise avoid buying more than necessary. When inventory exceeds the maximum or minimum level, there must be timely warnings to make reasonable adjustments to avoid stagnant goods in the warehouse.

Arrange and preserve goods scientifically: Arranging goods scientifically will make the process of searching and transporting goods faster and easier. Preserving inventory to avoid damage or wear and tear, reducing the value of goods and materials.

Periodic inventory: Periodic inventory of goods, supplies, and raw materials helps you determine whether the actual quantity of goods in stock matches the documents. This will also assist in the rotation of goods, limiting wear and tear, damage that reduces the value of goods.

- For unfinished business costs.

Enterprises need to focus on managing revenues and expenditures reasonably to save on unreasonable and unnecessary expenses.

It is necessary to have a detailed and reasonable production plan to save labor and costs.

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3.2.2. Improve receivables management.

* Basis of solution.

In production and business activities, credit sales between companies are inevitable. This credit sales increase the revenue of the enterprise, and also increase the receivables, which means increasing both revenue and expenses.

Through analyzing the financial situation of the enterprise, we see that the enterprise's receivables account for a fairly large proportion and are on the rise: in 2015, it was 3,735,075,800 VND, accounting for 11.67%. In 2016, it was 7,166,538,849 VND, accounting for 30.13% and by 2017, it was 8,150,319,400 VND, accounting for 32.28%. In which, the main receivables are customers, accounting for 83.41% in 2017. The enterprise benefits from this credit sale but also has to bear the risk:

If customers cannot pay their debts on time, the enterprise may lack production capital.

If the customer cannot pay the debt, the business will lose capital.

Therefore, managing the enterprise's receivables, especially customer receivables, is necessary.

* Content of the solution.

- First: It is necessary to understand that the effectiveness of receivables activities is not only the responsibility of the accounting-finance department in the enterprise but also the coordination of activities between other departments such as the sales department, the business department, the customer service department, and even the board of directors. Require customers to sign an agreement, stipulate that payment must be made on time and clearly state the penalty that customers will have to pay if payment is late. Always store in the form of documents all transactions and contacts of the enterprise with customers such as emails, letters, calls, etc. as a basis for debt collection.

- Second: Customer credit management: Enterprises need to have a clear credit policy for each customer group. Updating and monitoring customer credit history also helps reduce payment delays. Enterprises should use a credit scoring system and classify customers according to their risk level, to decide whether to continue to let customers use their credit or not. For customers who often pay late, regular reminder calls should be made. For customers who have not paid their debts, they should not continue to sell on credit until all old debts are recovered.

- Third: Debt collection. Enterprises need to

Clearly identify individuals responsible for debt collection, and have a policy of rewarding employees who successfully collect debts.

Businesses should proactively contact customers early to work on receivables instead of waiting until the invoice is due. This not only helps businesses manage receivables well but also maintains good relationships with customers.

For bad debts such as bad debt, overdue debt, to reduce possible risks, the enterprise should stop providing goods and services for new orders.

3.2.3. Other solutions.

* Human resource development.

Comprehensive and synchronous human resource training and development in line with the development of the industry in the direction of selecting highly qualified human resources, training and retraining existing human resources in management, professional expertise, foreign languages, informatics, information technology, etc.

Develop a labor recruitment plan to ensure the operation and exploitation of newly invested maritime safety works.

* Prize

market law

- Brand building.

Building and developing the brand, enhancing the position and reputation of the enterprise with customers, enhancing competitiveness, constantly improving and enhancing the quality of products and services, increasing production and business efficiency to help the enterprise survive and develop sustainably in the market and integrate internationally.

The brand of a business is reflected in its traditions, industry characteristics, corporate culture... creating a difference in image that leaves a deep impression on partners and customers.

- Expand domestic and foreign relations to promote trade.

The maritime economy in general and the maritime safety sector in particular are highly internationalized, so international relations play a very important role. We must participate in building and complying with all international regulations and treaties to implement the rights and obligations of a maritime nation, and at the same time demonstrate national sovereignty and sovereignty in the international maritime community.

Research, propose to sign, join organizations, host international and regional conferences and seminars related to maritime safety to expand and promote cooperation with international and regional organizations.

Take advantage of technical support, capital, human resource training, gradually enhance the country's role in the international arena.

* Investment solutions.

Continue to promote investment in infrastructure to ensure maritime safety, including building new channel management stations, lighthouse stations, beacons and other maritime support tools such as:

- Building a system to monitor and remotely control maritime signals.

- Building DGPS positioning system. This is a further development step to reduce GPS error within a certain range.

- Automatic identification system AIS.

* Capital and financial solutions.

The Northeast Maritime Safety Enterprise is a 100% state-owned enterprise based on state-invested capital.

Ensuring maritime safety is a public service sector aimed at establishing and maintaining a safe maritime environment. Maritime signaling devices are specialized, have strict technical standards, are highly stable, and accurately meet the standards of international organizations while the demand for use is not large, so they are often very expensive. Therefore, when implementing the above measures, financial efficiency cannot be the top priority, but socio-economic efficiency and political stability must be considered. Calling for investment capital other than the budget capital is very difficult if the state does not provide a specific mechanism.

* Solutions on science and technology.

Cooperate with foreign companies specializing in the production of maritime signaling equipment to jointly produce domestic equipment. Sign technology transfer contracts to gradually produce autonomously maritime support systems and integrated AIS equipment mounted on signaling equipment.

Continue to install new and additional radio navigational signaling equipment on high-traffic routes and key routes, and move towards full installation on other routes. Commercialize electronic navigational maps.

Promote creativity, strengthen scientific and technical research, apply advanced scientific and technical advances in the world to the production of maritime signaling equipment.

3.3. Some recommendations to facilitate the implementation of measures.

3.3.1. On the Enterprise side.

Along with the measures to improve the financial situation of the enterprise mentioned above, the enterprise needs to perfect its organizational and management apparatus to facilitate the implementation of the above measures. The enterprise also needs to strengthen training to improve the professional qualifications of its staff and workers to meet the current development trend.

To do this, the enterprise needs to:

Strengthen and perfect the organizational structure in a streamlined and professional manner, with reasonable arrangements in terms of personnel and job positions suitable to the expertise of employees to achieve the highest results.

Promote staff training, create conditions for each staff member in the enterprise to have the opportunity to participate in training and improve their professional qualifications.

Besides economic development, the enterprise also needs to ensure occupational safety for employees working in offshore areas.

Enterprises need to ensure the implementation of policies that combine the interests of employees and implement fair reward and punishment regimes. Only by ensuring this can the development of the enterprise be sustainable.

Practice thrift in business, avoid waste.

3.3.2. On the part of the parent company.

The Northern Maritime Safety Corporation should pay attention to creating conditions for the Northeast Maritime Safety Enterprise to further develop.

The corporation should create conditions and provide additional business capital for the enterprise to ensure the enterprise's business operations.

The corporation should create conditions for enterprises to be autonomous in capital, so that the business activities and development of the enterprise can be more favorable.

3.3.3. On the state side.

The State and relevant authorities need to create all conditions for the operation and business process of enterprises to be smooth and favorable, avoiding obstacles and causing difficulties for enterprises in the process of business operations.

The State needs to continuously improve the legal system, especially economic law. A complete, accurate, and fair legal system will create a healthy and safe business environment, promoting the efficiency of enterprise operations.

Some measures to improve the financial situation at the Northeast Maritime Safety Enterprise - 10

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