Working capital management in the HCMC plastic industry

Abstract

The purpose of this study is to investigate the practice of working capital management and to identify factors which affect the investment in current assets in the HCMC plastic industry. The analysis of 96 companies shows that 75% of the sample have formal working capital policy. The extent of investment in current assets is affected by five factors, namely the manager’s view, the company credit policy, the financial position, and the competitors’ credit policies.