THE NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAM INTERNSHIP REPORT At Hoa Binh Corporation Student’s name: Đặng Hoài Nam Class: Advanced Accounting Intake: 53 Supervisor: Hanoi - 2014 TABLE OF CONTENTS ACKNOWLEDGEMENTS ABBREVIATION LIST OF TABLES LIST OF FIGURES PREFACE CHAPTER 1: 1 1.1 1 1.2 4 1.3 5 1.4 6 CHAPTER 2: 7 2.1 8 2.2 10 2.3 14 CHAPTER 3: 15 3.1 16 3.2 27 3.3 28 CONCLUSION………………………………………………………………… 30 REFERENCES APPENDICES (if any) Supervisor: Dang Hoai Nam – Class: Advanced Accounting 2 ABBREVIATION HO Head Office SBV State Bank of Vietnam VIDPB VID Public Bank Supervisor: Dang Hoai Nam – Class: Advanced Accounting 3 LIST OF TABLES Table 1.1: 16 Table 2.1: 46 Table 2.2: 47 Table 3.1: 67 Table 3.2: 72 Chú ý: - Chữ số thứ nhất chỉ tên chương - Chữ số thứ 2 chỉ thứ tự bảng biểu trong mỗi chương - Trong mỗi bảng biểu ghi rõ nguồn số liệu từ đâu Supervisor: Dang Hoai Nam – Class: Advanced Accounting 4 LIST OF FIGURES Figure 1.1: 15 Figure 1.2: 20 Supervisor: Dang Hoai Nam – Class: Advanced Accounting 5 PREFACE (Present introduction and structure of the Internship Report) Supervisor: Dang Hoai Nam – Class: Advanced Accounting 6 Chapter 1: OVERVIEW OF ABC FIRM (3 points) 1.1. Establishment and Development of ABC Firm (1 point) (In this part, present some background information of the firm, establishment and development; some historical points of the firm during establishment and development; some achievements of the firms and others) Hoa Binh Construction & Real Estate Corporation (Hoa Binh) was founded on 27 th September 1987 on the foundation of Hoa Binh Construction Office, started to operate in designing and construction of a private residential projects. Established in “Doi Moi” economic reformation period, Hoa Binh continually made great efforts to overcome difficulties and reaffirm its capability. Hoa Binh has grown into a top leading construction company in Vietnam and well-known amongs foreign contractors with “Reach the peaks peacefully” impressive slogan. Hoa Binh has developed a decisive and dynamic management team together with 6,000 employees who have always devoted their technical abilities, creativity and their utmost effort to the company. Hoa Binh is also the only construction company in the South to be selected to participate in “VIETNAM VALUE PROGRAM” and achieve many valuable domestic and international awards. In recently, Hoa Binh proudly contributed to completing 80 high – rise projects and is currently carrying out approximately 50 projects all around the country. The following part will briefly introduce the company’s development process from 2005 to now – reaching the peaks. In 2006, Hoa Binh was officially listed on Ho Chi Minh City Stock Exchange and became the first general contractor participate in Vietnam Stock market. This remarkable event created opportunities for Hoa Binh to strengthen its position. In 2007, Hoa Binh increased capital through the stock exchange market, its investment expansion to the real estate field, as well as its cooperation opening to many strategic partners in the construction and real estate fields such as Chip Eng Seng Group, Citadel Supervisor: Dang Hoai Nam – Class: Advanced Accounting 7 Investment Fund (Hong Kong Branch), HCMC Branch of Petro Vietnam Finance Company. Also Hoa Binh has become a reliable partner for many big companies in the field of construction and real estate, especially for foreign investors such as KTOM joint venture (a conglomeration of four big Japanese construction groups: Kajima, Taisei, Obayashi, and Maeda), Sino Pacific Company, Indochina Resort, Posco Engineering & Construction Company, Phu My Hung Joint Venture, and so on. With these utmost efforts, Hoa Binh received many awards and prestigious titles, such as Vietnam Gold Star, Strong Brand Name in construction industry and Top Ten Vietnamese Brand Name. In 2008, the financial crisis and the subsequent global economic recession had a big impact on Hoa Binh’s business operations. Nevertheless, in such a context Hoa Binh learnt lessons from experiences in risk management, financial management and investment projects management, minimize disruptive events and assure the sustainable development of the Corporation. Hoa Binh performed many large-scale projects such as Hanh Phuc International Women and Children Hospital (Binh Duong), Phu My Apartment Buildings (District 7, HCMC), Nam Long (District 7, HCMC), Can Tho International Airport Terminal, Truong Tho Apartment, Kumho Asiana Plaza (HCMC), Keangnam Hanoi Landmark Tower, CRR & CR8 the Crescent Pool… In 2009, Hoa Binh has also started implementing the ERP management software and the 5S program to both parent company and all subsidiaries. Major projects in 2009: Saigon Pearl – Development (HCMC), The Kenton Residences Blocks G & H (Nha Be – HCMC), Mipec Tower (Hanoi), Habico (Hanoi), Green Hotel (Kien Giang), Vincom – Area B (HCMC). Hoa Binh was the only contractor to be selected participating in Vietnam Value program and awarded Vietnam Gold Star, “Social Responsibility”, International Star Award for Leadership in Quality Management, Top 500 Vietnamese Private Enterprises and many other awards. In 2010, exceeding over 2000 enterprises, Hoa Binh once again honorably achieved the “Vietnam Value” award for second time, Vietnam Gold Cup for Construction Quality awarded to its 3 projects. Besides, Hoa Binh rapid growth rate of revenue and profit, the company always orients to an ideal working environment. Board of Management constantly takes care of employees by organizing travel trips in Da Lat, Nha Trang, Mui Ne. In 2011, there is fluctuation of economy situation in the world as well as in the country and gives impacts on Hoa Binh business activities. By experiences and appropriate strategies, Hoa Binh achieves many successes. It successfully implements OHSAS 18001:2007 and ISO 14001:2004 systems granted by British Standard Institute. Also, Hoa Binh applies CONQUAS international standard system developed by the Building and Construction Authority of Singapore to assess project quality, B.I.M (Building Information Modeling) solution in design, construction management, and Portal Office software. According to logic and professional management working to international standard, human resources and service quality will be improved more and more. In 2012: Hoa Binh celebrated the 25th anniversary and received the 3rd Class Labor Medal, the Chairman cum CEO, Mr. Le Viet Hai proudly received the Prime Minister’s Award, and the company members honorably received the Award Certificate of Merit by Supervisor: Dang Hoai Nam – Class: Advanced Accounting 8 Ho Chi Minh People’s Committee. Hoa Binh is proudly the only Southern Construction Enterprise continues to receive the 3rd Vietnam Value in the row and it is one of 25 entrepreneurs to receive this honor certificate; Hoa Binh is one of two Construction Enterprises in HCMC honorably received the Certificate of Merit by Ministry of Labor – War Invalids and Social Affairs. The Company also successfully expands to Industrial and Infrastructure industry with 8 projects which total value is more than 1,700 billion dong. Besides that, Hoa Binh is fast – growing in North and Middle as well as the other provinces market. In 2012, Hoa Binh accomplished the last BI subsystem (Business Intelligent) of ERP, and Hoa Binh is also the 3rd company successfully established the Business Intelligent in the country. 1.2. Characteristics of the Business Operation of ABC Firm (1 point) 1.2.1. Functions and Responsibilities The corporate has three main purpose and functions are the following. - Provide client with the best products and services in the most convenient and quickest way in the construction and real estate industry. - Set up the most efficient work environment in order to comprehensively develop each employee’s talent. - Completely satisfy all staffs’ needs and dreams, while bringing appropriate profits to the Corporation and satisfactory benefits to the shareholders and contribute as much as possible to the country and society at the same time. In addition to determining functions, the corporate identifies its responsibilities in three sections: social, shareholder and employee responsibility. The following part is the details of such responsibilities: - Social responsibility: o Comply with Vietnamese legal regulations on labor force. Respect the international conventions cited in part II of SA 8000:2001 and the related explanations. o Frequently express concern to introduce upgrading of working conditions to our staff and workers and environment protection for the community. o Release all documents on the Social Responsibility Policy to all staff and employees, including our subsidiaries, subcontractors, and suppliers, to help them understand and support the implementation of our policies. - Shareholder responsibility: o The Board of Directors focuses on developing a strong management team in order to secure and ensure transparency and responsibility while carrying out the tasks of the Executive Board of Management and managers, which in turn contribute to building the shareholders’, investors’ and relevant parties’ confidence - Employee responsibility: Supervisor: Dang Hoai Nam – Class: Advanced Accounting 9 o The Corporation has prepared and issued documents related to staff and employees’ responsibilities regarding the Corporation and initiated training and orientation courses. This is communicated via such media as its internal network, website, bulletins and department meetings to guide all staff and employees to fulfill the Corporation’s mission and policies. Such policies are focused on strengthening a sense of discipline to work in a positive manner, and on encouraging persistence, honesty, integrity and responsibility regarding the community, ethics, and professional conscience. 1.2.2. Features of the Business Operation The Company’s current principal activities are to provide industrial and civil construction services; surface levelling; construction consulting services; manufacture and trade of construction materials, interior decoration products; house renovation and interior decoration services; and to trade real estate. 1.2.3. Process of Main Activities of Company The main activity of the company is construction which is divided into 4 phases: signing contract, planning, operation and handover. Supervisor: Dang Hoai Nam – Class: Advanced Accounting 10 [...]... include: + Balance sheet interim + Interim income statement + Interim cash flows report + The balance of the accounts generated - Management accounting reports include: + Report of analyzing relationships between sales, cost and profit + Report of managing labor and productivity + Report of managing inventory level + Report of analyzing static budget, flexible budget and actual budget Financial statements... Supervisor: Dang Hoai Nam – Class: Advanced Accounting 20 2.2.5 Accounting report system (State the period of financial statement preparation, whom to send the reports, responsibilities of forming financial statements, management reports and others) - Accounting reporting system is in compliance with the Decision 15/2006/QD dated 20/3/2006 of the Minister of Finance The financial statements are prepared and disclosed... period (3 months), general detailed reports are made based on detailed accounting tickets and subsidiary ledgers Together trial balance is made based on general ledgers + After reconciling between trial balance and general detailed reports, accountants prepare financial statements Diagram 2.1 Supervisor: Dang Hoai Nam – Class: Advanced Accounting 20 2.2.5 Accounting report system (State the period of... subsidiary ledger At the end of period, inventory accountant prepares trial balance based on general ledger and material detailed report based on subsidiary ledger After that accountant reconciles between trial balance and detailed report as well between general ledger and detailed report before preparing financial statements Sequence of detailed accounting Chart 2.7 Chapter 3: SOME REMARKS ON FINANCIAL... written and verbal reporting by the Managing Board issued promptly and in the necessary detail, the Supervisory Board supported the Board of Directors in its monitored the Board of Directors in its management of business over the fiscal year Basically, Supervisory Board has the authority to keep informed at all times of the intended business policy and other fundamental issues and report to Shareholder... then posts to fixed asset subsidiary ledger At the end of period, accountant prepares trial balance based on general ledgers and detailed report of acquisition, disposal based on subsidiary ledger After that accountant reconciles between trial balance and detailed report berfore preparing financial statements 2.3.2 Accounting for material (example Salaries & Personnel; Fixed Assets & Depreciation) (State... entries and post to ledger - Preserve and store vouchers - Example of vouchers in payroll system + Employee changes + New employee data + Timesheets + Lump sum contract + Payroll register + Tax report + Payroll report - Example of fixed-asset vouchers + Minutes of receiving fixed asset + Minutes of disposing fixed asset Supervisor: Dang Hoai Nam – Class: Advanced Accounting 18 + Minutes of receiving... (2007) Ngân hàng thương mại Nhà xuất bản Đại học Kinh tế quốc dân, Hà Nội Tô Ngọc Hưng (1993) Tiền tệ, Ngân hàng và Thị trường Tài chính Nhà xuất bản Khoa học và kỹ thuật, Hà Nội Tổng cục thống kê (2010) Báo cáo tổng kết năm 2009 … English Peter S Rose (Fifth edition) Commercial bank Managerment MacGrawHill Irwin … Magazine - Anderson, J.E (1985), “The Relative Inefficiency of Quota, The Cheese case”, American... cost and expense of projects - Perform payment procedure - Managing value of short and long term assets in accounting books - Financial planning (update information, conduct financial statements and tax reports) - Accounting management - Supervise and perform accounting system in all components (Mother company, subsidiary company, projects, construction) 2.2 Accounting System Applied at the ABC Firm (1.5... Class: Advanced Accounting 28 APPENDIX No 1: xxxx Supervisor: Dang Hoai Nam – Class: Advanced Accounting 29 APPENDIX No 2: xxx Supervisor: Dang Hoai Nam – Class: Advanced Accounting 30 GIẤY NHẬN XÉT THỰC TẬP Supervisor: Dang Hoai Nam – Class: Advanced Accounting . financial statement preparation, whom to send the reports, responsibilities of forming financial statements, management reports and others). - Accounting reporting system is in compliance with the Decision. Hoai Nam – Class: Advanced Accounting 5 PREFACE (Present introduction and structure of the Internship Report) Supervisor: Dang Hoai Nam – Class: Advanced Accounting 6 Chapter 1: OVERVIEW OF ABC. changes + New employee data + Timesheets + Lump sum contract + Payroll register + Tax report + Payroll report - Example of fixed-asset vouchers + Minutes of receiving fixed asset + Minutes