Which Lottery Company is Depositing Billions in the Bank?

Transferring billions to banks

An inspection conclusion by the Ministry of Finance reveals that by the end of 2023, Ho Chi Minh City Lottery Company had VND 1,226 billion in term deposits with banks. Of this, VND 350 billion was deposited for 1-3 months, and VND 876.8 billion for 3-12 months. Interest income from these deposits amounted to VND 65.9 billion, boosting financial revenue.

In the first half of this year, Ho Chi Minh City’s lottery revenue reached nearly VND 5,500 billion, a 4% increase year-on-year. The majority of this revenue, VND 5,380 billion, came from traditional lottery and scratch card sales.

An Giang Lottery Company, with over VND 1,000 billion in bank deposits in 2023, reported revenue of VND 5,058 billion, expenses of VND 4,180 billion, and pre-tax profits of VND 877.8 billion. They paid VND 2,403 billion to the state budget. By the end of 2023, An Giang Lottery had VND 1,024 billion in cash and bank deposits, including VND 97 million in cash, VND 51.2 billion in non-term deposits, VND 380 billion in 1-month term deposits, and VND 593 billion in 12-month term deposits, with interest rates ranging from 3.2% to 10.2% per annum.

Dong Nai Lottery and General Services One-Member Limited Company had total revenue of VND 5,890 billion, expenses of VND 5,030 billion, and pre-tax profits of VND 859 billion in 2023. They held deposits of over VND 987 billion in banks with terms ranging from 3 months to less than a year, earning interest rates of 3.7% to 7.25%. Financial revenue from these deposits amounted to VND 74 billion.

The Ministry of Finance’s inspection revealed that Dong Nai Lottery Company regularly maintained monthly cash balances exceeding VND 1,000 billion but had not established plans or regulations for idle cash management to ensure capital safety and optimize profits.

Request for a review of charter capital

In light of lottery companies having bank savings that exceed their charter capital, the Ministry of Finance’s inspection has requested these companies to review and adjust their charter capital accordingly.

The Ministry of Finance has recommended that the People’s Committee of Tay Ninh Province direct Tay Ninh Lottery Company and related departments to determine appropriate charter capital to avoid excessive capital being deposited in banks. This recommendation comes as Tay Ninh Lottery Company held VND 834 billion in cash and savings in 2023, including VND 18 billion in cash, VND 79.9 billion in non-term deposits, VND 186.6 billion in deposits with terms of up to 3 months, and VND 550 billion in deposits with terms of over 3 months.

Despite significant cash deposits, Tay Ninh Lottery Company has not established internal management regulations regarding cash and bank deposits, cash and deposit limits, or selection criteria for credit institutions. This has resulted in excessive amounts of cash and non-term deposits at various times. The lack of clear regulations and procedures for optimizing cash flow and efficient capital utilization is concerning.

The Ministry of Finance has also requested Ca Mau and Vung Tau Lottery Companies to determine appropriate charter capital to avoid surplus capital being deposited in banks. In 2023, Ca Mau Lottery Company had VND 659 billion in bank deposits and earned VND 25 billion in interest income for the year.

The Ministry of Finance’s inspection revealed that Ca Mau Lottery Company’s term deposits exceeding 3 months consistently exceeded their charter capital across all quarters. Similarly, Vung Tau Lottery Company had VND 638.5 billion in bank deposits at the end of 2023, exceeding their charter capital by over 104%.