Solutions for Risk Management in Securities Investment at Rubber Finance Company Vietnam: Masters of Business Administration

MEIHO UNIVERSITY

Graduate Institute of Business and Management

MASTERS THESIS

Solutions for Risk Management in Securities

Investment at Rubber Finance Company

Vietnam

In partial fulfillment of the requirements for the degree of

Masters of Business Administration

Advisor: Dr. Shao-Hsi Chung

Co-advisor: Dr. Vo Phuoc Tan

Graduate Student: Le Thanh Truong

December, 2010

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ACKNOWLEDGMENTS

First of all, I would like to thank both of two schools: Ho Chi Minh City University

of Industry (HUI) in Vietnam and Meiho University(MU) in Taiwan offered me a good

opportunity to take part this Master of Business Management program for the last two

years.

I deeply thank to my advisor, Doctor Shao Hsi Chung of Meiho University for

valuable guidances and suggestions as well as continuous encouragement given me to

complete this thesis. I sincerely thank to Co-advisor, Professor Vo Phuoc Tan of Ho Chi

Minh City University of Industry for valuabe instructions and advices given me during

this research.

Many thanks send to other Vietnamese professors and interviewees who anwer my

quesions to give me ideas to finish the thesis.I have learnt a lot of other academic

knowledges and skills besides my major in research.

During the time I stayed in Taiwan I received a lot of helps from Professor Ron

Chuen Yeh, chair person of Graduate Institute of Business and Management of Meiho

University and I would like to give sincerely thanks to all Taiwanese professors,

administrative officers and classmates at Meiho University for all helps and supports

given me during time in Taiwan. I have learnt a lot of thing from Taiwan, not only

academic knowledges and skills but also Taiwanese cultural experience and Taiwanese

people. In the bottom of my heart I never forget the memories that I spent in Taiwan.

Finally, I deeply grateful send to my family members, my colleagues and partners

for all their cares, willing to help and support me throughout the studying process of the

MBA program.

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Solutions for Risk Management in Securities

Investment at Rubber Finance Company

Vietnam

ABSTRACT

Vietnamese stock market is one of the emerging market in Asia, which comprises

of Ho Chi Minh Securities Exchange (HOSE), Ha Noi Securities Trading Center

(HASTC) and the OTC market. HOSE has been in operation since July 2000 with only

two listed companies with total market capitalization of about $22.5 million dollars, but

there are nearly 600 listed companies with total market capitalization of more than $36

billion dollars. HASTC has been in operation since March 2005.

Rubber Finance Company VietNam (RFC) has operated since 1998 with main

activities are coporate finance, personal financial, investmen products and other products.

RFC has begun to invest the porfolio of securities in Vietnamese stock market since 2003

and its operation has contributed a major part of company’s profit. In the period of 2007-

2009, RFC’s securities trading operation suffered losses due to the global criris and lack

of risk management.

Prediction and identifying risk issue in securities investment will help investors to

manage effectively stock porfolio and reduce risks in securities trading.

The project’s aims are to:

• Seek out solutions for securities investment activities in Vietnamese stock

market, generally speaking and at FC, specifically speaking.

• Identify and predict some kinds of the risks in Vietnamese stock market.

• Utilize the risks as well as opportunities for investment.

There are six financial experts who have extensive experiences in theory and facts

about Vietnamese stock market will be interviewed with in-depth questions and open

questions. Questions used to ask experts based on literature reviews and suggestions of

advisers before carrying out interviews. The answers will be recorded by authors then

analyzed, synthesized in response to the research question.

The results of this research will help the stock investors on the Vietnamese stock

market in generally speaking and RFC particularly speaking to have a overview about the

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main risks affecting stock prices, bonds in order to reduce the losses when investing in

Vietnamese stock market.

Keywords: RFC is standed for Rubber Finance Company VietNam