Estimating Net Working Capital in Waste Tire Pyrolysis Projects for Environment Protection in Developing Countries - Case in Vietnam

Dinh Tran Ngoc Huy, Nguyen The Binh, Nguyen Duy Mau, Truong Thu Ha and Pham Thi Hong Nhung

In developing countries such as Vietnam, China, India, Indonesia, Myanmar, Bangladesh, etc. the problems of waste tires are becoming pressures on living environment. Hence, waste tire pyrolysis firms are working hard to solve this environmental issue by new technology, because there are millions of used tires in the economy and society every year. This paper figures out some financial management issues, esp. estimating net working capital for these renewable energy firms in order to recommend some financing solutions. The main reason is the vital role of the renewable energy system in Vietnam as well as in other developing countries in the economic development and growth in recent years always go with risk potential and risk control policies. This research paper aims to figure out basic issues in financial management activity at these renewable energy firms in recent years. Then, one of its major findings is the proposed financial model to estimate net working capital for waste tire pyrolysis in Viet nam case, which can be applied in many other developing countries. In order to estmate net working capital effectively, we need effective information from sales and purchasing department and production for calculating account receivables and inventory as well as account payables. Finally, this paper provides some ideas that could provide companies and government more evidence in establishing their policies in governance. This is the complex task but the research results shows us warning that the technology, material and market risk might be higher during China –USA commercial war. And our conclusion part will recommends some policies and plans to deal with it.

Volume 12 | Issue 7

Pages: 217-223

DOI: 10.5373/JARDCS/V12I7/20202003