Asset management Indochina Valuation Company

TABLE OF CONTENTS

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INTRODUCTION
1. Necessity of topic
“The property is a key factor in generating business for all organizations. An
effort, less attention to the business, create items, it usually needs the property to meet
your needs. Especially for a specific organization in the field of value assessment is
the evaluation of Indochina, this benefit is a basic factor in addition to arranging and
putting the Organization on the generation and trading. With that, the advantage in
organization management is very necessary due to good resource management;
effectiveness high and new resources promote everything during the operation of the
organization.”
“Enhancing the productivity of resources is needed more in generation costs,
transportation costs and reduce costs. Similarly, strengthen management and enhance
the productivity benefits of using more encouraging organizations to dependably level
generation, business progress, equipment and systems to move forward. The use of
advanced creativity, innovation now will create a vast possibility to enhance work
efficiency, improving the quality of items, causing excitement in the market.
Especially while the abuse of resources, using the great resources and the possibility of
progress and business assignments that will reduce costs and in this way by relieving
the sense of concern for progress and also help reduce costs intrigue.”
“From the above reasons, it is important to enhance the effective use of the
advantages in the base. It is one of the factors that determine the presence, progress
and achievements of a business. The company valuation of Indochina was founded in
2003 and has developed a solid position in the field of evaluation and assessment,
counseling and resettlement. for development projects. The Organization has marked
so many great activities, many agreed, expands business to many different fields, for
example the construction of the building materials, advice on strengthening business

management, ... but the Organization did not look carefully on the computer usefulness
of the advantage to use. The use of the advantage still incomplete, leading to lower
trading status. Of the new accounting officer just quit the job accounting, do not look
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carefully to the examination and assessment of the effectiveness of the use of benefits,
so the construction of a technical use of resources is not practical. From that fact, "the
company valuation of Indochina" was chosen to explore.”
“Moreover, The treatment of assets management is small, fragmented by many
subjects together. This reduces the professionalism, costly manpower, time, cost but
the effect is not high, difficult to control.”
“The sale or liquidation of assets in the form of auction, the units have to hire
centers or enterprises to implement but there is no regulation on supervision
obligations of the units have the right to sell assets, also the control of the authorities
is not tight.”
“In General, the management of interests in the company to be used legally and
successfully control in General, is reflected through the evaluation criteria on the
management company's advantage is very steady and stable. . Even so, companies
should consider carefully managing liquid resources to the special circulation
resources and additional resources in a way that really brought the desired effect.”
2. Objectives of the study
-“Clarify the matter theory as a reason for the theory of management interest in
the effort.”
-“Analysis of the management of the benefit; clear advantage in management
organization.”
-“Suggest the answer to improving the proficiency of the survey aimed at
improving productivity advantage in organization management.”
3. Subjects and scope of study
“Research subjects: management changes are effective at the company

valuation of Indochina.”
-The scope of the study:
+ About research space: Organization reviews the value of Indochina
+ Duration: From year to year 2015 2017
4. Research Methods
“To complete the reason to ask about, the application of the techniques to the
test, combined strategies, practical strategies, compare, .... Practical strategies to gather
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information in order to investigate. The same strategy to help think about the results
achieved, in this way to the most objective evaluation of the performance of business
activities is feasible or not feasible. Source of information: The information is mainly
used as auxiliary information, especially the monetary statement of your business.
Moreover, there are more data about the business situation, the choice of venture.”
5. Structure of the subject
- Chapter 1: Theoretical framework of Assets Management and the
Effectiveness of Asset Management
- Chapter 2: The Current Situation of Asset Management in Indochina Valuation
Company
- Chapter 3: Recommendations to enhance asset management efficiency at
Indochina Valuation Company in the future.

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CHAPTER 1: THEORETICAL FRAMEWORK OF ASSET MANAGEMENT IN
COMPANIES
1.1. Outline of the benefits of the business
1.1.1. Property idea

“Asset management is the direction of a client's cash and securities by a
financial services company, usually an investment bank. The institution offers
investment services along with a wide range of traditional and alternative product
offerings that might not be available to the average investor. The account is held by a
financial institution and includes checking writing privileges, credit cards, debit
cards, margin loans, the automatic sweep of cash balances into a money market fund
and brokerage services.”
“Asset management requires investment minimums, which means this service
generally restrict accounts to high net-worth individuals, government entities,
corporations and financial intermediaries. This includes such products as equity, fixed
income,

real

estate,

commodities

and

international

investments.

The asset of the company divided into two kind that are working capital and fixed
assets.”
- “Working capital management refers to a company's managerial accounting
strategy designed to monitor and utilize the two components of working capital,
current assets and current liabilities, to ensure the most financially efficient operation
of the company. The primary purpose of working capital management is to make sure

the company always maintains sufficient cash flow to meet its short-term operating
costs and short-term debt obligations.”
- “Current assets: In accounting, a current asset is any asset which can
reasonably be expected to be sold, consumed, or exhausted through the normal
operations of a business within the current fiscal year or operating cycle (whichever
period is longer). Typical current assets include cash, cash equivalents, short-term
investments (marketable securities), accounts receivable, stock inventory, supplies,
and the portion of prepaid liabilities, sometimes referred to as prepaid expenses, which
will be paid within a year. In simple words Assets which are held for a short period are

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known as current assets. Such assets are expected to be realised in cash or consumed
during the normal operating cycle of the business.”
“On a balance sheet, assets will typically be classified into current assets
and long-term assets.”
“The current ratio is calculated by dividing total current assets by total current
liabilities. It is frequently used as an indicator of a company's liquidity, its ability to
meet short-term obligations.”
“The quick ratio, or acid-test, measures the ability of a company to use its near
cash or quick assets to extinguish or retire its current liabilities immediately. Quick
assets are those that can be quickly turned into cash if necessary.”
1.1.2. The part of advantages in business tasks
“Being a business owner can be extremely rewarding. Having the courage to
take a risk and start a venture is part of the American dream. Success brings with it
many advantages:”
“Independence. As a business owner, you’re your own boss. You can’t get fired.
More importantly, you have the freedom to make the decisions that are crucial to your
own business success.”

“Owning a small business gives you certain lifestyle advantages. Because
you’re in charge, you decide when and where you want to work. If you want to spend
more time on work activities or with your family, you don’t have to ask for the time
off. If it’s important that you be with your family all day, you might decide to run your
business from your home. Given today’s technology, it’s relatively easy to do.
Moreover, it eliminates commuting time.”
“Financial rewards. In spite of high financial risk, running your own business
gives you a chance to make more money than if you were employed by someone else.
You benefit from your own hard work.”
“Learning opportunities as a business owner, you’ll be involved in all aspects of
your business. This situation creates numerous opportunities to gain a thorough
understanding of the various business functions.”

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“Creative freedom and personal satisfaction. As a business owner, you’ll be
able to work in a field that you really enjoy. You’ll be able to put your skills and
knowledge to use, and you’ll gain personal satisfaction from implementing your ideas,
working directly with customers, and watching your business succeed.”
1.1.3. Resource order
1.1.3.1. Current resources (here and now resources)
“The Company's assets are divided into short-term assets and long-term assets.”
“Each group of assets has the following contents:”
* “For short-term assets, the specific contents in this section include:”
• “Cash and cash equivalents:”
+ “Cash on hand: cash in VND; Cash in foreign currencies + Bank deposits:
VND deposits; Deposits in foreign currencies.”
+ “Money is transferring.”
+ “Cash equivalents.”

• “Short-term financial investments
• Short-term receivables
+ Receivables on equitization
+ Receivables from dividends and profit distributed
+ Must collect workers
+ Other receivables
• Inventory
+ Buy goods are on the road
+ Raw materials and materials
+ Tools, tools
+ Expenditures on production and business
+ Finished products
+ Goods
+ Goods for sale
• Other current assets
* For long-term assets, including:
• Long-term receivables”
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• “Fixed assets:
- Tangible fixed assets:
+ Houses, architectural objects
+ Machinery and equipment
+ Means of transport
+ Equipment, management tools
+ Other fixed assets
- Intangible fixed assets:
+ Land use right + Land use right value received
+ Computer software

+ Exploitation permit, permit for production of new product ...
+ Other intangible fixed assets
- Financial lease fixed assets
- Expenditures on construction in progress
• Real estate investment
• Long-term financial investments
• Other long-term assets”
1.1.3.2. Settled resources (long haul resources)
“Long haul resources is measured by the fixed asset use index as it generally
assesses the asset management process.”
“Performance

of

using

fixed

assets

=

Revenue”

Fixed assets
“This indicator shows how much revenue is earned for each investment in fixed
assets. The fixed asset utilization rate looks at the firm's investment in fixed assets
(land, buildings, equipment) and this is extremely important for companies that require
large capital as a fixed asset. Manufacturers with investments in long-term assets.”
“In the above formula, if we take the total revenue from production and

business activities, revenue from financial activities and revenue from other activities
will have total.”
“Turnover to calculate fixed asset use. Fixed assets are stated at cost less
depreciation and amortization of fixed assets depending on the specific enterprise.””
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1.1.4. The substance of the advantage class
1.1.4.1. Substance of portable resources
“In the enterprise, the current assets are formed from different sources of
capital, so each type of capital will have different characteristics, characteristics and
cost of use. The problem is that businesses have to consider the optimal structure of
capital and reduce the cost of capital while ensuring the safety of the financial situation
of the business. Based on the different classification criteria, the enterprise's current
assets are formed from various types of capital sources such as:”
* “Shareholder formed in capital ownership including:”
- “Owner's equity means the capital amount owned by an enterprise. Depending
on each type of enterprise, the owner's capital has specific contents such as investment
capital from the state budget, capital spent by the enterprise owner, share contributed
capital, joint-venture capital, self-funded capital Extra income from the return. Equity
represents the financial autonomy of the business. The greater the equity capital, the
greater the financial independence of the business.”
- “Debts: These are loans made by commercial banks or financial institutions,
loans through bond issuance, unpaid customer debts.”
* “The current formulation is based on the time of mobilization and use of
capital: The capital of the enterprise is divided into two types:”
- “Regular capital sources: It is a stable and long-term source of capital,
including owners' equity and long-term loans to finance the company's regular
business needs.”
“Regular capital = Total capital - Short-term debt.”

- “Temporary capital: A short-term source of capital, including short-term loans
from banks and other credit institutions, and short-term loans, which are used to meet
the needs of a temporary nature. , abnormalities arising in the business process of the
business.”
“Temporary funds = Short-term loans + Legal capital.”
* “The current formulation is based on the scope of capital mobilization: The
stock is formed from two sources.”

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- “Capital within the enterprise: It is a source of capital that can be mobilized
from the enterprise itself. Including: capital from the profits left in the course of
business, the funds of enterprises, the proceeds from the sale, liquidation of assets ...
Thorough use of capital inside enterprises, Promoting the initiative in managing and
using the current assets.”
- “Outside capital sources: Enterprises may mobilize capital from outside
sources, including capital of joint-venture parties, loans to commercial banks, credit
institutions and loans through the issuance of bonds. debt financing, debt owed to
customers and other debts, etc., by borrowing capital from outside to create an
enterprise with a flexible financial structure, on the other hand can increase the
owner's equity Fast if the total return is higher than the cost of capital.”
1.2.1. Resource administration in the business
1.2.1.1. The need to oversee resources in the business
“In order to be able to carry out production and business operations, businesses
need to have a certain amount of assets and corresponding funds, no assets will not
have any business activities. But the use of assets for high efficiency is the decisive
factor for the growth and development of enterprises. With that sense, the
management, use and improve the efficiency of use of resources. in general and the
balance sheet in particular is a very important content of corporate finance

management. The concept of effectiveness of using a current work must be understood
in two aspects:”
“Firstly, with the existing assets can produce a number of products with good
quality, lower prices to increase profits for businesses.”
“Secondly, invest more assets appropriately in order to expand the scale of
production to increase sales with the requirement to ensure the rate of increase of
profits must be greater than the rate of increase of assets.”
“These two aspects are the objectives to be achieved in the organization of
management and use of assets in general and labor in particular.”
“Previously, when the economy of our country was still in the subsidy period,
all capital and assets needs for business production of enterprises are allocated by the
State or preferential credit so businesses do not ask to exploit and use assets
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effectively. Even now, when our economy has been transformed into a market
economy, businesses have to find their own capital to operate, the efficiency of using
capital, assets in general and current assets in particular. low. This is because
enterprises have not caught up with the market mechanism so there are many
shortcomings in the management and use of assets.”
“Business benefits require businesses to reasonably and efficiently use each of
their assets to make the current assets available to them after each production cycle.
Increasing the speed of rotation of the labor force allows shortening of the flow of
capital so that the capital recovered faster can reduce the number of laborers needed
but still achieve the volume of commodities by or bigger than before Improving the
efficiency of using current assets is also important in reducing production costs,
transportation costs and lower production costs.”
“Moreover, the business purpose of the business is to collect profits and social
benefits in general, but besides, an important issue that should be minimized for
enterprises is the need to preserve their current assets.” Due to the fact that the current

assets are fully transferred into the cost of production and the form of the fixed assets
is constantly changing, the issue of current assets is considered only on the value side.
Inventory of current assets is to ensure that the capital at the end of the period is
sufficient to buy a quantity of supplies and goods equivalent to the beginning of the
period when the commodity price rises, reflecting the possibility of purchasing
supplies for the reserve stage and Fixed assets in general, maintaining solvency of the
enterprise. In addition, increasing the management capacity and improving the
efficiency of using the labor force also helps the business always have the level of
business development, equipment and techniques have been improved.”The
application of advanced technology and modern technology will create a large capacity
to improve labor productivity, improve product quality and create competitive
products in the market.” Especially when exploiting assets, good use of liquid assets,
especially the use of savings in current assets in production and business activities to
reduce the demand for loans as well as the reduction of interest expenses borrow.”

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“For these reasons, it is necessary to improve the efficiency of the management
and use of liquid assets in enterprises.”That is one of the decisive factors for the
success of a business, further the growth and development of the economy.”
- “A number of indicators assessing the efficiency of the use of liquid assets.”
* Round robin property
“The use of liquid assets is high or does not manifest first of all in the speed of
capital flow of business fast or slow. The faster moving assets move, the higher the
efficiency of using the moving assets of the business and vice versa.”
Net revenue
Revolutions = Current assets in the period
“Rolling stock turnover criteria reflect how many rounds of business turnover
of a business rotation or a copper.”

1.2.1.2. Content administration resources in the undertaking
“Enterprise asset management is the business of processing and enabling
information systems that support management of an organization's assets, both
physical assets, called "tangible", and non-physical, "intangible" assets.”
“Physical asset management: the practice of managing the entire lifecycle
(design, construction, commissioning, operating, maintaining, repairing, modifying,
replacing and decommissioning/disposal) of physical and infrastructure assets such as
structures, production and service plant, power, water and waste treatment facilities,
distribution networks, transport systems, buildings and other physical assets.” “The
increasing availability of data from asset systems is allowing the principles of Total
Cost of Ownership to be applied to facility management of an individual system, a
building, or across a campus. Physical asset management is related to asset health
management.”
“Infrastructure asset management expands on this theme in relation primarily to
public sector, utilities, property and transport systems.” “Additionally, Asset
Management can refer to shaping the future interfaces amongst the human, built, and
natural environments through collaborative and evidence-based decision processes.”
“Fixed assets management: an accounting process that seeks to track fixed
assets for the purposes of financial accounting.”
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“IT asset management: the set of business practices that join financial,
contractual and inventory functions to support life cycle management and strategic
decision making for the IT environment.” “This is also one of the processes defined
within IT service management.”
“Digital asset management: a form of electronic media content management
that includes digital assets.”
1.1.4.1. Content of movable assets
a. Classification of liquid assets

* “According to the rotation, current assets consist of three types:
Working capital assets include: reserve assets for production (raw materials,
fuels, materials, tools being stocked) and assets in production (prices unfinished
products).”
“Circulating liquid assets include reserve assets for circulation (finished
products, goods stored in stock or being sold), assets in circulation (capital in cash).”
“Financial liquid assets are short-term financial investments for the purpose of
making a profit (joint venture investment, securities investment ...).”
* “According to the level of conversion potential, liquid assets are divided into
the following categories:
Monetary assets are assets of units directly under the form of value. It includes
money in the fund, bank deposits (or Treasury) and money in transit (both local and
foreign).”
“Jewelry, gems and precious metals: This is a special group of assets, mainly
used for stockpiling purposes.” “However, in some industries such as banking, finance,
insurance ... the value of diamonds, gems, gold and silver can be very large.”
“Cash equivalents: This group includes financial assets that are convertible into
cash: securities, valuable papers ...” “ However; not all types of securities are covered
by this class, highly liquid securities are considered as liquid assets of this class.”
“Short-term financial investments are capital investments for the purpose of
earning profits within a year or a business cycle. Short-term financial investments
include equity investment, investment contributing money, short-term loans.”
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“Accounts receivable: It is the property of the unit but is being appropriated by
organizations, collectives or other individuals that the unit has the responsibility to
recover.” “The receivables include receivables from buyers, advance payment to
sellers, overpayments to the budget, internal receipts.”
“Inventories are movable assets that exist under the form of material that can be

weighed, measured, counted.” “Inventory can be produced by the unit itself or
purchased outside.” “Inventory includes: materials, tools, goods are on the go, finished
goods, goods, unfinished products.”
“Other current assets: These are liquid assets other than those mentioned above,
such as advances to employees, prepaid expenses, deposits, short-term deposits.”
* Based on the purpose of using the assets in the enterprise, the division of
liquid assets into two types is the liquid assets in business and liquid assets
outside the business.
b. Asset management
* Inventory management
There are two common methods used to manage stockpiling:
• Classical stock management or the most efficient ordering model - EOQ
(Economic Ordering Quantity)
The EOQ assumes that the deliveries are equal. When a business carries out
inventory, there are two main costs:
Storage costs: These are the costs associated with the storage of goods,
including:
- Operating costs, such as freight handling costs, cargo insurance costs, loss
costs, preservation costs.
- Financial expenses, including the cost of capital, such as loan interest, tax
expense, depreciation.
Ordering costs (contract costs): Include transaction and freight management
costs. The cost of ordering per order is usually stable and does not depend on
the quantity of goods purchased.
* Manage cash and high liquidity securities

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Cash is understood to be cash balance, cash on the bank's payment account,

used to pay salaries, purchase raw materials, buy assets, pay taxes and pay
debts. The enterprise holds cash for two main reasons:
• Maintain a cash balance, ensuring daily business transactions. These
transactions usually pay customers and collect money from customers, thus
creating a transaction balance.
• Maintain the required margin as required by the bank when providing loans or
services. The cash balance of this type is the offset balance.
There are also two secondary reasons for holding cash in the business:
• Maintain reserve balance, meet demand in case of unforeseen fluctuations of
cash inflows and outflows.
• Maintain a balance for speculative purposes to allow businesses to take
advantage of their purchases and take advantage of business opportunities.
* Manage receipts
Receipts arise from commercial credit, which creates both direct and indirect
costs but also benefits the business because commercial credit policy will increase
sales. Enterprises may take the following measures in managing receivables:
* Commercial credit policy
In a market economy, there is an indispensable form of buying and selling.
Commercial credit can make a business stand out in the market and become rich but
can also bring risks to the business of the business. That is reflected in the following
basic features:
• Commercial credits affect sales. Due to being paid late, more people will
come to buy the goods of the business, thus increasing sales. When granting
commercial credit to customers, businesses are delayed in paying and because the
money is valuable over time, the company will set a higher price.
• Commercial credits reduce inventory costs of goods.
• Commercial credits make fixed assets more efficient and reduce some of the
invisible wear and tear.
• The cost of operating a business may increase when granting commercial
credit to the customer.

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• Commercial credit increases the cost of debt collection, the cost of paying for
funding to offset the budget deficit. The longer the credit term, the greater the
cost.
These effects force managers to compare between revenue and cost increases,
thereby deciding whether to grant commercial credit to customers and how the
terms fit in. Reality shows that sales tend to increase as credit standards are
relaxed.
* Trade credit analysis
• Analyze the creditworthiness of customers
Analyzing the creditworthiness of customers is an important issue for managers
to make credit for customers. This work must start with the business building a
reasonable credit standard, then the credit quality verification of the prospect.
Commercial credit will be provided if the customer's credit ability meets the
minimum standards that the business offers.
• Tracking receivables:
+ Arrange the age of the receivables. In this method, the manager arranges the
receivables for the length of time to track and takes measures to resolve the debt
when it is due.
+ Determining the balance of accounts receivable. In this method, the seasonal
variation of sales will not affect the receivables. Using this method, enterprises
can see the outstanding debt that customers owe business. Along with the other
way of monitoring, managers can see the impact of financial policies in general
and commercial credit policies in particular on the operation of the business.
1.1.4.2. Content of fixed assets
a. Classification of fixed assets
* According to utility and usage situation, fixed assets are divided into:
Fixed assets used for production and business purposes: These are fixed assets

being used in the production and business activities of enterprises.
These fixed assets are required to be depreciated and charged to production and
business expenses.

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Non-business administrative fixed assets are fixed assets of administrative and
non-business units such as mass organizations, medical and cultural organizations.
Fixed assets are fixed assets of the unit used for public welfare such as
kindergartens, clubs.
Fixed assets for maintenance, keeping and storage State-owned fixed assets are
assets which enterprises keep them for other units or store them for the State according
to the regulations of the State.
Fixed assets waiting processing include fixed assets are not used because of
surplus compared to demand or because they are not suitable for technological process
innovation, damaged waiting liquidation. These fixed assets need to be processed
quickly to recover capital for investment in fixed asset renewal.
* According to the form of expression, fixed assets are divided into two
categories:
• Tangible fixed assets are tangible fixed assets of specific material form
include:
+ Houses and architectural objects: They are fixed assets of enterprises formed
after the process of construction and construction such as working offices, workshops,
warehouses and yards; Infrastructure such as roads, bridges, bridges, docks ...
+ Machinery and equipment: Including machinery and equipment used in
production and business of enterprises such as specialized machinery, working
equipment, technology lines, individual machines.
+ Means of transport, transmission equipment: means of transport by railways,
waterways, roads, airways, pipelines and transmission equipment such as information

systems, electricity systems, water pipelines.
+ Equipment, tools for management: Including equipment for business
management of business such as measuring equipment, computers, copiers, printers,
vacuum dust.
+ Other tangible fixed assets: Including unspecified fixed assets, reflected in the
above types.

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• Intangible fixed assets are tangible fixed assets which are not material but
determined by value and held by enterprises and used in production and business.
Those belonging to intangible fixed assets include:
+ Land use right: Including all actual expenses paid by the enterprise directly
related to the land used, such as: money spent to obtain legal land use right,
compensation for face clearance leveling, registration fee (if any) ...; or the value of
the land use right contributed capital.
+ Copyright and patent: It is the actual cost that the enterprise has spent to
acquire the copyright, patents.
+ Trademarks are actual costs directly related to the purchase of trademarks.
+ Computer software: The total cost actually spent by the enterprise to obtain
computer software.
+ Other intangible fixed assets: Including other intangible fixed assets which
are not reflected in the above types such as concession rights, tenancy rights, rights to
use the contract, intangible fixed assets in progress.
* Classified by ownership, fixed assets are divided into fixed assets and
outsourced.
• Fixed assets: These are fixed assets constructed, procured or financed by the
capital of an enterprise granted by the state budget, borrowed by the bank, by selffinanced capital, business.
• Fixed Assets for Rent

+ Financial leased asset is the leased asset which the lessor transfers the
majority of the risks and benefits associated with the ownership of the property to the
lessee. Property ownership may be transferred at the end of the lease term.
+ Operating leases: Leased assets do not carry the majority of the risks and
rewards associated with the ownership of the assets. The term of the lease is only a
part of the useful life of the asset and will be returned to the lessor at the end of the
lease term.
Sort by source:
• Fixed assets purchased and constructed by the allocated capital.

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Fixed assets purchased and constructed by self-supplemented capital sources
(development investment fund, welfare fund ...).
• Fixed assets procured from borrowed funds.
• Fixed assets received from joint ventures in kind.
b. Depreciation of fixed assets and management of depreciation funds
•

Concept

In the course of use, fixed assets wear out in value and in kind. The value of
wear and tear of fixed assets used for business activities is transferred to the
value of products made (with the manufacturing enterprises providing services)
or the costs of dealing in goods (with commercial business enterprises) in the
form of depreciation. Thus, depreciation of fixed assets is the expression of
money of the value of fixed assets have worn out. The purpose of depreciation
of fixed assets is a subjective measure to recover investment capital to restore
fixed assets when it is damaged or has expired useful life.

• Classification
Visible wear is the physical wear and tear during use due to friction, corrosion,
damage to parts. Visible wear of tangible fixed assets can occur in two forms:
+ Technical wear occurs during use.
+ The impact of nature (moisture, steam, air ...) does not depend on the use of
them.
Due to tangible wear and tear, fixed assets lose value and use value at the
beginning, eventually replacing it with another asset.
Invisible wear and tear: a decrease in the value of tangible fixed assets due to
technological progress. Invisible wear and tear is caused by obsolete or defective
tangible assets technically, also known as economic wear and tear of each fixed asset,
the user of the fixed asset must estimate its nature and The intangible fixed assets are
depreciated so that appropriate depreciation rules are in place to recover the full
amount of capital before the liquidation of the fixed assets.
c. Asset management
* Fixed asset management about artifacts

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Fixed asset tracking system: Enterprises should improve their fixed asset
tracking and control system. The simplest is to set up the general and detailed tracking
book. The General Ledger reflects the general situation of management of fixed asset
groups and types of equipment, but only the most basic information is recorded. The
detailed book is used to store information about each small group or each device.
However, the best approach is to apply the computer to monitor the notebooks.
Databases in the computer will constantly update the information about fixed assets,
when needed know just a simple command to call the screen or print the paper.
Fixed Asset Management: Each group or individual will be assigned to manage
groups of machinery or equipment line assemblies; It must be based on technology,

arrangement of shifts and how to organize the workshop to clear responsibilities. There
is no common model for all businesses but only the decentralization or management of
operations should be applied to suit the operation of the business.
*Fixed asset management about technology
Businessmen who want to exploit the most effective fixed assets should pay
attention first to technical management, technical norms and operation status of
machinery. Besides, rationalizing machines in the factory is also an important step.
Although it has been designed and planned in advance, it does not always have the
right equipment, sometimes wasting time and increasing the operating costs of the
equipment. For loose machines and equipment, attention should also be paid to
arranging to reduce transportation costs and interruptions between work processes.
1.2.2. Viable resource administration of the business
Property management is the operation, control, and oversight of real estate as
used in its most broad terms. Management indicates a need to be cared for, monitored
and accountability given for its useful life and condition. This is much akin to the role
of management in any business.
Property management is also the management of personal property, equipment,
tooling, and physical capital assets that are acquired and used to build, repair, and
maintain end item deliverables. Property management involves the processes, systems,
and manpower required to manage the life cycle of all acquired property as defined

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above including acquisition, control, accountability, responsibility, maintenance,
utilization, and disposition.
In order to achieve the target of asset efficiency, enterprises must determine the
model of rules and types of assets required for the production and business process.
This is the first baseline issue, requiring the business to carefully consider the first
baseline decision on the principle of the project and the first project analysis. If you

buy a lot of fixed assets that are not used up, it will cause the capital romance, the
song. And if the media is not enough with the workforce, productivity will fall.
On the basis of a fixed assets procurement, a business must use the maximum
computer and real time, full implementation, save in the server, try to speed up the
renovation and apply the process of the science process process, modern. This will
create the premise for enterprises to be innovated according to the guidance, modern,
provide products and services suitable to the market demand, high competition.
1.2.2.1. Effective administration of here and now resources
“Indochina Evaluation Company is a company operating in the field of shipping
and real estate, with two main activities are business of leasing and multi-service
transportation method.” “In the early years of its founding, the company faced
financial difficulties as well as management experience.” “However, with the support
of the Indochina Valuation company and the efforts of the Board of Directors and all
employees, the company has grown and improved its position in the market.”
“Compared with other companies in the same industry, the Company is one of the
leading companies in the transportation market.”
“In recent years, in the face of complicated developments in the political and
economic situation in the world, the consequence is the petrol price, the gold price, the
price of raw materials, and unexpected changes.” “Domestic transportation in general
and Indochina Evaluation Company in particular are more or less influenced and
facing common difficulties.” “However, with the increase in cost of goods sold, the
cost of such materials, Indochina Evaluation Company has made great efforts to
expand the scale of services, find new directions to increase sales and profits leverage,
thereby increasing the competitiveness and quality of services in the field of
multimodal transport.”
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1.2.2.2. Effective long haul resource administration
“Long-term asset performance is measured by the fixed assets performance

index as it generally evaluates the fixed asset management process of an enterprise.”
“This indicator shows how much revenue is earned for each investment in fixed
assets.” “The fixed asset utilization rate looks at the firm's investment in fixed assets
(land, buildings, equipment) and this is extremely important for companies that require
large capital as a producer with long- term investments into fixed assets.”
“In the above formula, if the total revenue from the production and business
activities, the revenue from financial activities and the turnover from other activities
will get the total turnover to calculate the fixed asset use.” “Fixed assets are stated at
cost less depreciation and amortization of fixed assets depending on the specific
enterprise.”
1.2.2.3. Effective management of total assets
Total asset management efficiency is measured by the performance of total
asset utilization by assessing the asset's utilization efficiency, which will help us see
effective asset management processes.
This ratio shows how much revenue is earned per 100 properties. The turnover
target is determined by the sum of turnover from production and business activities,
revenue from financial activities and turnover from other activities (also known as
abnormal activity). The total asset value is determined by subtracting the total value of
the current assets and the residual value of the fixed assets in the enterprise's balance
sheet.
Total Asset Use Efficiency considers the effectiveness of managing all assets of
a company. In general, the higher the ratio, the lower the investment to generate sales
and therefore the greater the profit for the company. If the asset performance is
relatively low relative to the industry level or lower than the company's previous level,
it means that the company has invested too much in its assets or its sales pace is too
slow.

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1.3. Variables influencing the proficiency of big business resource administration
1.3.1. Inside components (subjective elements)
In the most general sense, a business cycle is defined as the movement of shortterm economic activity in a given period, in which the periods of growth and periods
of decline always interact each other. The business cycle is one of the subjective
factors that affect the efficiency of enterprise asset management. For a business, if the
business cycle is short, it will recover capital quickly, the capital flow rate increases,
especially working capital, consumption increase, so effective. Property management
will be high. Thanks to the short business cycle, enterprises have more advantages in
using capital to re-invest in assets, expand production and business, upgrade
equipment, machinery, workshops, improve the quality of the staff ... This is quite the
opposite for a business with long production cycle, turnover rate will slow, causing
capital stagnation, costly cost, yoke in the production process; products made for slow
consumption; the investment capital in factories and machinery and equipment has
been reduced sharply. It can be said that the business cycle is a very important factor
affecting the performance in general and the efficiency of asset management in
particular.
1.3.1.2. The ability to use capital of enterprises
In the most general way, the capital is understood as the source of funding for
business activities of enterprises. This money is formed at different times and in
different ways. The capital is an indispensable condition for establishing enterprises
and carrying out production and business activities. When setting up an enterprise, the
law stipulates the level of legal capital for some types of enterprises, so if the legal
capital requirements are not met, the enterprise can not be established. However, even
for those types of enterprises that do not require legal capital, enterprises will not be
able to operate without capital. What will be the financing for the construction of
factories, purchase of machinery and equipment, materials? Or, in other words, where
will the funding be for the assets of the business?
We know that if there is no asset, the business will not be able to operate
and produce, so indirect capital plays an important role in the formation of assets.
Once there has already been the asset, the capital is the factor that affects the

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efficiency of asset management of the business. The efficiency of asset management
will be significantly improved if enterprises know how to use capital to invest in new
machines, lines, equipment, improve product quality and access to scientific level.
modern technology ... This reduces the amount of raw materials, minimizes the
unfinished products in the production process, the business cycle is shortened, the
consumption increased, As such, asset management efficiency will be improved.
1.3.1.3. Product features
For different businesses, the product characteristics are different in each period
and in each period of the economy. The product characteristics are researched by the
business groups based on different groups of customers, from which to produce
different types of products to meet the needs of customers. Because of the different
groups of customers, the proportion of receivables is different. For patrons who have
good financial strength, long-term relationships and prestige in the market, businesses
can apply trade policies with receipt age which is longer than other customers. As for
potential customers, new customers and businesses need to conduct a thorough
analysis and evaluation of creditworthiness before making a decision to grant
commercial credits to this group of customers, and the level of receivables should be
smaller than the length of receivables of the prestigious customer group mentioned
above.
The proportion of receivables vary between different businesses will lead to
different asset management efficiency in these businesses. Since receivables are
involved in the calculation of total asset management, each firm should determine its
reasonable receivables structure based on different product groups and different
customer groups. Total asset management is the best.
1.3.2. Factors outside the undertaking (target factors)
1.3.2.1. The fluctuation of the economy
For any country, the social and political environment always has a certain

impact on the performance of the economy in general and the performance of
businesses in particular in that country, possibly even Affecting the operation of
another country's economy or the global economy. Events such as war, political
turmoil or the legal system at home and abroad can create changes in the business
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environment, adding to the instability of the economy. The above factors can cause the
economy to degrade, leading to the impact on the operation of enterprises: the price of
raw materials inputs increase, the product causes slow sales, revenue decline, Longterm business cycles, stagnant capital, workers are cut salary or unemployed ... The
issues mentioned above have a great impact on all aspects of the business process in
the enterprise, They do not have much capital to invest in renovating their properties,
which results in reduced asset management.
1.3.2.2. Macro policies of the State
Macroeconomic conditions, including fiscal policy and monetary policy, affect
the entire economy of a country. The economic conditions impacted by these policies
will affect all sectors and businesses in the economy.
Fiscal policy, such as tax exemption and reduction, may encourage
consumption, make products more consuming and faster, thereby reducing inventories,
fast and stable flow of capital, Make your asset management more efficient.
Monetary policy also creates similar economic changes. A tighter monetary
policy with reduced money supply will reduce the supply of working capital and will
limit the expansion of business production for all businesses, thereby reducing the
efficiency of financial management. In addition, it can increase the market interest rate
and thus the cost of borrowing from enterprises will increase, enterprises will limit
investment in renovation and asset purchase. Asset management is also affected.
1.3.2.3. The development of the stock market
The development of the stock market is also one of the objective factors
affecting the operation of enterprises. Normally, when the economy develops well, the
stock market will go up, which makes the stock price of the business tend to increase.

Investors will be more interested in the stock of the business and the business will
have more opportunities to issue shares to attract capital to expand production,
business and investment in assets, thereby the asset management efficiency is
enhanced. Conversely, when the economy is down, the most obvious manifestation is
in economic crises, the stock market goes down. This means the situation is bleak for
the shares of enterprises, enterprises will face restrictions on attracting capital of
investors for business purposes.
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