Solutions To Mprove The Operational Performance Of Vietnam Bank For Industry And Trade Securities Joint Stock Company Vietinbank Securities

TOPIC: SOLUTIONS TO MPROVE THE OPERATIONAL PERFORMANCE OF VIETNAM BANK FOR INDUSTRY AND TRADE SECURITIES JOINT STOCK COMPANY (VIETINBANK SECURITIES) INTRODUCTION 1. Rationable for topic Stock market is an important capital carrier of economy. Only when market participants have all the conditions and abilities to ensure the effective operation of business can the stock market operate effectively, among which securities companies are the best. Play a pivotal role. Securities companies have created capital appreciation mechanisms for enterprises and economies. Securities companies are an important bridge (financial intermediaries), helping enterprises and governments to raise funds through implementing activities and securities implementing. Thanks to securities companies, investors' securities trading activities can be carried out safely, accurately and efficiently through the introduction, consulting and management activities of investment projects. For the stock market, securities companies help to stabilize prices, standardize the market and improve the liquidity of securities. In addition, through securities companies, regulators can also monitor and manage market-related activities. Therefore, it can be seen that securities companies play a very important role in the stock market. Therefore, the operating performance of securities companies has a great impact on the stable and sustainable development of the stock market. Therefore, improving the operating performance of securities companies is the basis and demand for the development of securities companies and even the whole securities market. It can be seen that securities companies play a very important role in the stock market. Therefore, the operating performance of securities companies has a great impact on the stable and sustainable development of the stock market. Therefore, improving the operating performance of securities companies is the basis and demand for the development of securities companies and even the whole securities market. It can be seen that securities companies play a very important role in the stock market. Therefore, the operating performance of securities companies has a great impact on the stable and sustainable development of the stock market. Therefore, improving the operating performance of securities companies is the basis and demand for the development of securities companies and even the whole securities market. In vietnam, after 20 years of establishment and development, securities companies have grown in both quantity and quality. When the stock market is active, the number of securities companies is only 7, and sometimes the number of securities companies increases to 105, but there are only 74 securities companies left at present, and active securities companies are in the market. This fact proves the rigor of the operation of these financial institutions. One of the main reasons for this situation is that many securities companies operate effectively and stably, commensurate with the potential of securities companies. In addition, the operating performance ranks among the best in in categories, and thanh vien securities company of vietnam is evaluated according to camels standard. The method of evaluation and ranking thanh vien securities company according to camel model is a tool for stock exchanges to review and evaluate the quality and financial status of securities companies and the health status of corporate governance. The agency weak companies securities at risk of termination of restructuring, so as to supervise and support securities companies to conduct business and fulfill their obligations in stock exchanges. Therefore, in order to survive, develop and maintain its image as a stock exchange, securities companies need to improve their business performance while providing the types and evaluation standards of securities companies. Vietnam industry and trade bank securities co., ltd. Is one of the oldest and most prestigious securities companies in vietnam. Founded in 2000 with a registered capital of 55 billion vietnamese dong, the company is headquartered at no.306 ba trieu, hai ba trung district, ha noi. Although it has a certain market share in the market, in order to maintain and develop, videinbank needs to continuously improve its operational efficiency. Therefore, it is extremely important to study and find solutions to improve the operational efficiency of the Vietinbank seruity. Based on the above reasons, the author decided to carry out the research project "operational performance solutions provided by bank of vietnam for ndustry and trade securities joint stock securities company" as the graduation theme. 2. Research objectives The purpose of the research is to put forward a number of solutions on the basis of analyzing and evaluating the operating performance of Vietinbank seruity from 2019 to 2020, so as to improve the operating performance of the company in the future. 3. Research questions In order to achieve the research objectives of the subject, the specific research problems are as follows: (1) How did Vietinbank security perform between 2019 and 2021? What are the limitations and what are the reasons for them? (2) What awards will help Vietinbank security improve its operational efficiency in the near future? . 4. Object and scope of research only The research object is the performance of Vietinbank security from 2019 to 2021 Scope of study: Spatial scope: focus on Vietinbank securities company. (Vietinbank securities) Time range: the research data collection range is 2019-2021. 5. Research methods Comprehensive method: it is used to synthesize the research related to the operating performance of vietnam bank security, so as to inherit the theory related to the operating performance and the theory of securities companies, and form the theoretical basis of the topic selection of this paper. At the same time, he pointed out the research gap, so as to continue to fill the research gap on the operating performance of videinbank security. + statistics, description, and comparison methods: used to collect and count the numbers of the vietnam bank seruity, then process, tabulate, chart, chart to describe and compare the numbers between nam, stages. + analytical methodology: used to analyze tables, charts, charts and financial figures to assess the current operating results of Vietinbank security. CHAPTER 1: THE THEORETICAL BASIS OF THE PERFORMANCE OF THE SECURITIES COMPANY 1.1 Overview of the research situation In Vietnam, there are not many scientific works that study carefully and comprehensively the business performance of securities companies, including the following studies: Research by author Nguyen Thi Le Thuy (2008), Building a system of indicators to evaluate the performance of securities companies, scientific research topic at the State Securities Commission level. The study explored international practices on the performance evaluation system and ranking criteria for securities companies. At the same time, learn and determine the performance evaluation criteria of Vietnamese securities companies. From there, it points out the shortcomings and inadequacies in evaluating the activities of securities companies today. Finally, propose solutions to complete and apply appropriate performance evaluation criteria of securities companies. However, the research topic in 2008 and the years before that, so far, some contents are not suitable according to the law and the actual operation of securities companies today. Research by Nguyen Thanh Phuong (2010), Improving the performance of Vietnamese securities companies in international integration, Ph.D. thesis in economics, Banking Academy. The thesis has systematized the theoretical basis of the performance of securities companies. From there, assess the current situation, and analyze the causes that limit the performance of Vietnamese securities companies. On that basis, the thesis proposes solutions and recommendations to improve the performance of Vietnamese securities companies in the context of international integration. However, the thesis has not used quantitative research methods to evaluate the factors affecting the performance of securities companies in Vietnam. Moreover, the research phase of the thesis is before restructuring securities companies, so there will be differences compared to the period after restructuring securities companies Research by author Hoang Van Quynh (2015), Solutions to improve the business performance of securities companies at Ho Chi Minh Stock Exchange, the academic research topic of Academy of Finance. The study has systematized the theoretical basis of the business performance of securities companies. On that basis, analyze and evaluate the business performance of securities companies at Ho Chi Minh City Stock Exchange in the period 2012-2014. Based on the assessment of the business performance of securities companies at the Ho Chi Minh Stock Exchange, the study has proposed a set of solutions to improve the business performance of securities companies at the Ho Chi Minh Stock Exchange. However, the data in the study only stopped in 2014, and the study has not used quantitative research methods to study the factors affecting the business performance of securities companies at the Ho Chi Minh City Stock Exchange. In the world, there are also many studies on the business performance of securities companies, typically the following studies: Research by Chin – Piao Yeh, Kuang – ChengChai, Kuan – MinWang (2010), Measuring the efficiency of securities companies by corporate governance in a financial holding and non-financial holding system, the article measures the efficiency of securities companies securities in Taiwan through data envelope analysis (DEA) and Tobit regression model. The research results show that: (1) the performance of a securities company can be improved when the securities company participates in the financial holding system. (2) The size of the board of directors does not affect the performance of a securities company. (3) Holding the positions of chairman and general director at the same time will not affect the performance of a securities company. Research by WANG Cong SONG Huiying (2012), An Empirical Research on the Relationship among the Ownership Structure, Market Structure and Cost Efficiency of Securities Companies in China, Journal of Financial Research, An empirical study of the relationship between state ownership and the cost-effectiveness of securities firms in China. The article uses the stochastic marginal analysis model SFA to measure the cost-effectiveness of securities companies and analyze the relationship between state ownership and the cost-effectiveness of securities companies. The results show that the cost efficiency of state-owned securities companies is lower than that of non-stateowned securities companies. Research by NizamettinBayyurtAhmetAkın (2014), Effects of foreign acquisitions on the performance of securities firms: evidence from Turkey, this article analyzes the impact of foreign acquisitions on the performance of securities firms in Turkey. They are using envelope analysis and panel regression. Emerging economies, including Turkey, have attracted large amounts of foreign direct investment (FDI) into the financial services industry. Acquisitions are a common way of FDI. Research results show that foreign acquisitions have positive and significant contributions to the performance of securities companies. This positive effect was signed two years after the acquisition and became more vital in the following years. Research by DING Guo-rong (2010), A Study on the Leadership Allocation Patterns and Their Effect on the Performance of Chinese Securities Companies. This article provides an in-depth analysis of leadership allocation models of Chinese securities companies and then relatively studies the impact of different models on the performance of securities companies. There are four leadership distribution models of Chinese securities companies: dumbbell, mushroom, rugby, and cylinder. In particular, the mushroom model is the leading and recommended choice of Chinese securities companies. It helps to improve performance when the political core role of the communist party committee is allocated to the decision-making power of securities companies. China. This article is significant in standardizing and strengthening the core political role of the Communist Party Committee and perfecting the corporate governance mechanism of Chinese securities companies. 1.2 Performance of the securities company 1.2.1 Terspective on the operating efficiency of the securities company Operating efficiency is generally understood as the economic and social benefits obtained in the process of operation. Operating performance includes economic benefits and social benefits, which economic benefits are decisive, among readers' use of input resources to achieve the highest results at the lowest cost. According to author pham thi thui (2018), "business performance shows the relationship between the output results used and the input resources in the process of business operation". Therefore, in order to achieve high operating efficiency, enterprises need to maximize output under the condition of limited resources. The view on the operating performance of securities companies is also based on the view on the operating performance of general business. However, because the purpose of securities companies is to provide securities services, the business activities of securities companies have a great impact on the whole stock market and the whole economy. There are some differences between the operating performance of securities companies and that of traditional enterprises. According to the author nguyen thi mui (2007), "the performance of securities companies is related to the socio-economic part, first the company part, then the industry part. Securities and the whole economy". Therefore, the operating performance of securities companies includes the economic and social benefits obtained by companies. Among them, economic benefit is the primary goal of securities companies, followed by social benefit, which is the contribution of securities companies to the industry and the whole economy. Contributions to the securities industry include: improving the liquidity of the stock market, supporting corporate financing, disseminating securities knowledge, consulting investors … contributions to the economy include: the contribution of securities companies to the national account books, and the employment and income growth level of employees of securities companies. According to hoang van quynh (2014), "the operating performance of securities companies is an economic category, reflecting the use of resources (capital, resources, resources, resources, resources), in order to achieve the defined goal of the company's general economic situation or the economic benefits of securities business" [42]. From this point of view, the operating performance of securities companies is the economic benefits realized by securities companies. This is the efficiency of using investment to achieve the company's economic goals. In my opinion, securities companies and any other enterprises must take economic benefits as the most important criterion to evaluate their business performance. However, it still needs to ensure the social benefits brought by securities companies. The economic benefits of securities companies are shown by comparing their output results with the input resources used by securities companies to achieve the results. Output can be income, profit before tax, profit after tax, interest and profit before tax. Input resources can be total assets, owner's equity or expenses used to carry out business activities. However, the difference between securities companies and traditional business is that when evaluating the economic benefits of securities companies, the effectiveness of each activity provided by securities companies must also be considered. In fact, some securities companies carry out only one business activity, while others carry out all-round business activities, including gender activities, consulting activities, securities underwriting activities and securities selfoperated activities. Therefore, it is necessary to evaluate the effectiveness of each activity in the economic benefit evaluation of securities companies. The effectiveness of each activity is shown by the growth of revenue for each activity, the ratio of revenue to cost for each activity, and the contribution of each activity to revenue. For example, the performance of gender performance can be shown by gender market share, gender income growth and gender income cost ratio... Or the effectiveness of activities can be reflected by the growth of activity income, the cost ratio of activity income and the contribution to activity income... The high effectiveness of activities will help improve the economic benefits of securities companies, thus improving the operating efficiency of securities companies. Therefore, securities companies need to focus on activities and improve the quality of business activities in order to bring the highest business efficiency. However, securities companies need to ensure the best risk management in the process of carrying out business activities, because there are many potential risks in the business activities of securities companies, the most important of which are financial risks: credit risk, liquidity risk and bankruptcy risk. If securities companies have high operating efficiency and high financial risks, that is, low financial security, it will be difficult for the market to develop sustainably. Therefore, the research on the operating performance of securities companies also needs to be related to the financial security of securities companies. Therefore, it is necessary to evaluate the effectiveness of each activity in the economic benefit evaluation of securities companies. The effectiveness of each activity is shown by the growth of revenue for each activity, the ratio of revenue to cost for each activity, and the contribution of each activity to revenue. For example, the performance of gender performance can be achieved through gender market share, gender income growth and gender income cost ratio... Or the effectiveness of activities can be reflected by activity income growth, activity income cost ratio and contribution to activity income. .. The high effectiveness of activities will help improve the economic benefits of securities companies, thus improving the operating efficiency of securities companies. Therefore, securities companies need to focus on activities and improve the quality of business activities in order to bring the highest business efficiency. However, securities companies need to ensure the best risk management in the process of carrying out business activities, because there are many potential risks in the business activities of securities companies, the most important of which are financial risks: credit risk, liquidity risk and bankruptcy risk. If securities companies have high operating efficiency and high financial risks, that is, low financial security, it will be difficult for the market to develop sustainably. Therefore, Therefore, considering the manager's point of view of securities companies, the author thinks: "the operating performance of securities companies is the economic benefits realized by securities companies through operating activities, reflecting the use process of investments resources. The overall economic objectives and activities of all indicates that the financial security companies of securities companies must be ensured.". The manager of ron securities company hopes to get the highest operating performance from the activities of the company. High operating efficiency will help securities companies to improve their reputation, affirm their market position, and create favorable conditions for the development of business activities. However, the managers of the securities company must link the goal of improving business performance with the goal of providing the financial security of the securities company. Only in this way can securities companies ensure the improvement of business performance and the sustainable development of the stock market. 1.2.2 Performance evaluation ndicators of the securities company In order to evaluate the operating performance of securities companies, this paper puts forward three groups of indicators, including the indicators for evaluating each operating performance of securities companies, the indicators for evaluating profitability and the indicators for evaluating financial security of securities companies. 1.2.2.1Indicators for evaluating the operating performance of securities companies  Asset size Asset size is the total market value of the securities in a fund. It can also be referred to as a managed property. Funds regularly report total assets that can be affected by supply, demand, and market returns. In this study, the size of assets is determined as the enterprise's total assets.  Debt to equity ratio The debt to equity ratio (D/E) is used to assess a company's financial leverage and is calculated by dividing a company's total liabilities by that shareholder's equity. The D/E ratio is an important metric used in corporate finance  Contribution to total income per activity The reading contribution to the total income of each activity includes: the reading contribution of gender activity, consulting activity, self-operated activity, sponsorship activity, signature activity and other activities. Contribution ¿total income per activity= Income per activity Total income Among them: the income of each activity can be the income of world activities, activities, self-operated activities and guaranteed activities... This alone shows which business activities are dominant securities in companies. From there, combined with cost and profitable assessment, there are ways to promote key business activities, improve weak activities and promote the integrated development of the company.  Income growth per activity The growth of each operating income includes: world operating income growth, selfoperating income growth, self-operating income growth, guaranteed operating income growth, contributing operating income growth and other operating income growth. General definition formula of these lines: Income growth per activity= Difference between the income of each activity ∈thecurrent period∧the previous Income per activity ∈the previous period This item alone is used to evaluate the growth rate of income of each activity of securities companies, and compare the income of each activity in the current period with the income of the previous period. Through this line, we can know which activities contribute to the income growth of securities companies, and which activities are declining and reducing the total income of securities companies. On this basis, determine the correct positioning of each business sector, establish a reasonable legal system, enhance superior activities and weak activities, and make positive contributions to the high performance and operating performance of securities companies. Cost-to-income ratio per activity This alone requires the determination of income-cost ratios for each activity, including: world-wide, self-employed, guaranteed, guaranteed, participating and other activities. General definition formula of these lines: Cost ¿ income ratio of each activity= Cost per activity Income per activity ∈the previous period This alone is used to assess the effectiveness of using costs to generate revenue for each activity. For example, the revenue cost of a global activity would be reflected in how much vnd a securities firm would need to spend on the activity to generate global revenue. The lower the price, the lower the cost of generating 1 guilder of revenue, which helps the company save costs and increase profits. By analyzing and evaluating only the billions of revenue costs of each activity, we will see which activities are effective and which are effective. Since then, securities firms have had ways to save costs and increase revenues to maximize the profits of each activity and the company as a whole. 1.2.2.2Evaluation index of profitability of securities companies The indicators in this group are the measurement standards for the operating performance of securities companies. It is the comprehensive result of a series of laws, regulations and management decisions of securities companies. Indicators reflecting the profitability of securities companies include:  Return on total assets (roa) ROA ( % ) = Profit after tax x 100 % Average total assets This index reflects the average business capital (or average assets) that brings in aftertax profits for securities companies. This ratio reflects the management ability of securities companies in using assets or commercial capital to bring profits to the company. Therefore, this high figure reflects funds that the use of assets or operating of securities companies is effective and the asset structure is reasonable. If roa is low, it proves that the asset investment of securities companies is reasonable and the use of assets is effective.  Return on net sales (ros) ROS ( % ) = Profit after tax x 100 % Net sales The index reflects how many guilders of after-tax profits a securities firm will earn for every guilder of net income earned, or the percentage of after-tax profits to the company's total net income. This index shows the effectiveness of net income (or net income), and also shows the cost control of securities companies. The higher the number, the better.  Return on equity (roe) ROE ( % )= Profit after tax x 100 % Average share capital This alone reflects how much net profit was generated by the average capitalized capital used during this period. Tiiu alone reflects all aspects of financial management procedures, including income and expense management procedures, asset management procedures, securities company capital management procedures. Only the higher this ratio, the more effective the use of equity of securities companies. 1.2.2.3Evaluation index of financial security of securities companies  Accounts receivable/total assets ratio Ratio of accounts receivable ¿ total assets= Accounts receivable Total assets If this ratio is high, it means that most of the assets of securities companies are used to finance customers. Therefore, the level of asset security will depend on the financial situation and changes in the customer's investment portfolio, and it will be difficult for securities companies to control the risks. Therefore, the laws of other countries usually stipulate the highest interest rate of this index to ensure the asset safety of securities companies. 1.2.3 Influencing factors of operating performance of the securities compant The factors affecting the business performance of the securities company are also based on the factors affecting the business performance of the enterprise in general. However, because a securities company's operations are heavily influenced by stock market fluctuations and macro factors, there are a number of specific factors affecting the company's business performance. Securities companies are different from ordinary businesses such as: the development of the stock market, the commitment to opening the financial market and the development of science and technology. As follows: 1.2.3.1Objective factors Political and economic stability This is the first important condition for any activity taking place in the economy. With a stable political environment, it will create peace of mind for investors as well as peace of mind to conduct production and business of enterprises. A stable political environment is a condition for the government to issue policies related to industries, including the securities industry, as well as to plan socio-economic development strategies over a period of time. Thereby creating a driving force to promote investment in the entire economy. That is also a condition for securities companies to further develop their activities to meet the needs of customers. Economic stability helps businesses expand their production scale, contributing to increasing the supply of goods on the stock market. It is necessary for the government to create and maintain a stable macro-economy, it is necessary to ensure that the price mechanism is not distorted and that there are stable and favorable financial and monetary conditions. . Only then can all sectors of the economy do business and attract the attention of not only domestic but also foreign investors. Thereby helping the securities company's activities to expand and develop. Economic stability can be measured through the growth rate of gdp (gross domestic product) and the rate of inflation. Gdp growth will positively affect the stock market in terms of quantity and quality. An economy with good growth, attracting a lot of direct and indirect investment capital from abroad. When more foreign investors participate, the market will become more transparent and professional. In addition, overall economic growth reflects the stability of the stock market. Stock prices rose and securities transactions became more active, creating favorable conditions for brokerage and consulting activities of securities companies. Moreover, economic growth creates the need to expand production and business activities of enterprises. Then, companies that need capital to grow can raise capital through the stock market if they are eligible to issue securities. As a result, securities companies can develop financial advisory, issuance consulting and securities underwriting activities. Inflation is understood as the increase in the general price level of goods and services over time and the loss of value of a currency. Inflation affects the stock market indirectly through the commodity market. Rising inflation means that the cost of businesses will be pushed up, the price of goods will increase accordingly. But the demand for the good will decrease because the price increases, leading to a decrease in the revenue of the good. Enterprises are no longer attractive to investors in the stock market. High inflation is a sign of an unstable economy. This makes people and investors lose confidence in the economy. Then the mob mentality appeared, Legal system and legal environment Is an important factor affecting the operation of enterprises in general and the operation of securities companies in particular within a country as well as on an international scale. The legal system is decisive in restricting or promoting and encouraging development in a certain area. The legal system regulating economic relations here is not only the legal system of the host country but also the international legal system when the activities of securities companies do not stop at the international level. Family. With a strict legal system will create a healthy and fair competition environment among securities companies, promoting development of securities companies. An open legal environment will create conditions for businesses in general and for securities companies in particular to develop their operations. Securities companies operating in addition to being regulated by relevant laws must also comply with the provisions of specialized laws - the law on securities and the securities market. Therefore, consistency among existing laws is an essential requirement for all activities. Therefore, the legal environment will also significantly affect the development and improvement of business efficiency of securities companies.