The Government Inspectorate has just issued Notice No. 475/TB-TTCP Announcing the Inspection Conclusion on the management and use of state capital and assets at Vietnam Rubber Industry Group.
Notably, regarding the implementation of long-term financial investment, the Government Inspectorate clearly pointed out: The financial investment efficiency of the Group/group-affiliated companies is not high compared to the scale of investment capital. There is still a situation where some subsidiaries operate inefficiently, suffering losses/accumulated losses for many years, not ensuring the requirements for preserving and developing state capital according to the provisions of law and internal regulations of the Group, posing a potential risk of reducing the value of investment capital and potential risk of losing state capital.
The parent company - the Group and 5 companies under the Group (Dong Nai Rubber Corporation One Member Limited Liability Company, Dau Tieng Rubber One Member Limited Liability Company, Dong Phu Rubber Joint Stock Company, Phuoc Hoa Rubber Joint Stock Company, Binh Long Rubber One Member Limited Liability Company) were inspected for capital contribution and investment shares in subsidiaries not implemented in accordance with the provisions of the Enterprise Law and the Internal Regulations of the Group.
The parent company of the Group and 3 companies under the Group (Dau Tieng Rubber One Member Limited Liability Company, Dong Nai Rubber Corporation One Member Limited Liability Company, Dong Phu Rubber Joint Stock Company) were inspected for failing to develop financial supervision plans for subsidiaries with Group investment capital in the period 2018 - 2024 according to the Group's internal regulations, leading to some subsidiaries showing signs of financial insecurity not being closely and especially promptly supervised.
The parent company of the Group and 4 companies under the Group (Dong Nai Rubber Corporation One Member Limited Liability Company, Dau Tieng Rubber One Member Limited Liability Company, Phuoc Hoa Rubber Joint Stock Company, Dong Phu Rubber Joint Stock Company) were inspected for not performing strict supervision/special supervision of some subsidiaries showing signs of financial insecurity according to the internal regulations of the Group.
The Group has not yet rearranged the enterprise and restructured investments until the end of 2025 according to the Project approved by the State Capital Management Committee at enterprises.
Vietnam Rubber Industry Group - Joint Stock Company, formerly Vietnam Rubber Corporation, was established under Decision No. 252/TTg dated April 29, 1995 of the Prime Minister and was converted from the State-owned Corporation model to organize and operate according to the parent company - subsidiary company model in Decision No. 249/2006/QD-TTg dated October 30, 2006 of the Prime Minister.
The Group officially transformed its model from One Member Limited Liability Company to Joint Stock Company on June 1, 2018, named Vietnam Rubber Industry Group - Joint Stock Company.
On November 15, 2018, the Ministry of Agriculture and Rural Development transferred the right to represent state capital ownership at the Group to the State Capital Management Committee at enterprises according to Decree No. 131/2018/ND-CP dated September 29, 2018 stipulating the functions, tasks, powers and organizational structure of the State Capital Management Committee at enterprises.
On February 28, 2025, the Government issued Resolution No. 38/NQ-CP, transferring the right to represent state capital ownership in the Group from the State Capital Management Committee to the Ministry of Finance.
