Diengkhamsengkeomysay e

NEW CONTRIBUTIONS OF THE THESIS
Thesis title: Appraisal of Project of Loan with Laos Bank for Foreign Trade
Major: Investment economics (Development economics)
Code: 62.31.05.01
Research student: Diengkham SENGKEOMYSAY
Code NCS: NCS28.02B1ĐT
Supervisor: 1. Dr. Nguyen Hong Minh
2. Ass.Prof.Dr. Pham Van Hung
Training institution: National Economics University
New academic and theoretical contributions.
The thesis studied factors affecting the quality of appraisal of investment project in commercial
banks with the aim of minimizing the outstanding debts and worked out three factors known as (1)
commercial bank factor: Leaders, appraisers, procedures, contents and methods of appraisal,
information for appraisal, organizing and controlling appraisal and technical facilities serving
establishment of project and (2) Investment factor: Composing information to serve initial
establishment of project and (3) Macro-factors: Legal environment, policies and mechanisms of state,
impacts of inflation, foreign exchange rate, political environment and natural environment.
New suggestions withdrawn from the findings of research

The thesis suggested four groups of solutions in order to complete and develop appraisal of
investment project in Lao Bank for Foreign Trade such as (1) enhancing capacity of staffs in charge of
appraisal of investment projects in terms of architectural techniques and project appraisal profession.
(2) Strengthening equipment: Application of new scientific techniques to modernize appraisal. (3)
Strengthening fund for Laos Bank for Foreign Trade to establish a separate investment fund for
operations of investment projects. (4) Strengthening controlling quality of appraisal of investment
project with loans must strengthen appraisal of financial effectiveness criteria; it should be assured that
assets used as collateral have been used to ensure investment project at the present time and strengthen
internal inspection and audit of the Bank in order to limit risks in loans activities.
The thesis also suggested three groups of recommendations: (1) Recommendations for State
bank to organize seminars of discussions and withdrawal of experiences of appraisal in commercial
banks, to strengthen the information system, to adjust credit information center (CIB) and

recommendations for Government to complete legal environment relating to the appraisal of
investment projects especially law on appraisal of investment projects, to establish accounting systems
for enterprises to use consistently overall country but this accounting system must be connected to
audit center of Ministry of Finance etc….(2) Recommendations for investors to enhance quality of
appraisal of investment projects in charge with sufficient and accurate information submitted to the
bank and publish transparently data in respects to permission for loans with accounting system under
accounting ordinance and merge of international practices and (3) Recommendations for Laos Bank
for Foreign Trade to support and guide enterprises to establish investment project with loans.
Collection and inspection of information supported by enterprises with loans must fully exploit
information from CIB provided by the state bank. Moreover, Laos Bank for Foreign Trade must
coordinate together to publish the data to enhance quality of appraisal of investment projects to learn
about and select the good customers capable of competing by services and products provided for
customers to select etc….and continue to build method for enhancing quality of officers in charge of
appraisal etc.…..
Supervisor

Dr. Nguyen Hong Minh,

Ass.Prof.Dr. Pham Van Hung

Research student

Diengkham SENGKEOMYSAY