Improve the business efficiency of Vietnam Agribank Gold Joint Stock Company Ha Dong Branch = Nâng cao hiệu quả kinh doanh của Công ty Cổ phần Vàng Agribank Việt Nam Chi nhánh Hà Đông

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TABLE OF CONTENTS
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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ABBREVIATION
Vietnam Agribank Gold Joint Stock Company AJC
Vietnam Agribank Gold Joint Stock Company Ha Dong
Branch
AJC HaDong
State Bank of Vietnam SBV
Board of Director BoD
LIST OF FIGURES
LIST OF TABLES
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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CHAPTER 1: INTRODUCTION
1.1. Rationale
In recent years, the economic crisis in Vietnam has crept into every industry. Real
estate bubble, bad debts, gold speculation, and unemployment are the frequently
mentioned through the mass media, the scientific research or more in the daily life of
every citizen of Vietnam. It no longer lies in the economic forecast, which is taking
place within the economy of Vietnam. The economic crisis affected directly or
indirectly to the life, work of the people, to the production and business activities of
economic organizations in Vietnam. The state agency also gave a lot of new laws
which have policies to stabilize the economy and put out of this crisis. However, it
takes time to verify the effectiveness of the policy. Right now, the market competition
is fiercer than it ever. Competition for survival and competition for development are
now moving toward Vietnam. In order to do that, businesses need to have the right
business strategy and strong management capability. Buying and selling good of the
company will affect to the development in the current business, especially commercial
enterprises.

Gold is the concerned investment channel today in Vietnam and all over the world.
However, like securities, gold investment sector also requires investors to equip
themselves with the necessary knowledge that prevent their investment to be risky like
gamble. In fact, investors are concerned about gold, but only a few people understand
the profound role of world financial markets. Being considered as an asset that has a
"safe haven", gold may increase in value even when the stock market declines, and
when the economy is in recession. Global gold price is affected by a variety of factors,
including the political environment and the economy, such as the effects of the debt
crisis in Greece, the increase in gold reserves to diversify foreign exchange reserves of
Central banks many countries. Especially the big emerging economies like China,
Russia, India, Brazil, or the speculation of financial institutions have pushed the gold
price fluctuates constantly, and have created a new record of gold price. For the last 5
years, the gold market Vietnam has made great strides and increased the volatility in
step with the world market. Along with the decline of the stock market and the
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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"freezing" on the real estate market, gold investment is one of the attractive sectors
that can be considered as the potential businesses. However, we have to admit a truth
that gold business is always risky channel, and it is difficult to forecast accurately.
During seven weeks of internship in AJC Ha Dong branch, by my experimental
working time, I have understood this branch in both organizational structure and its
business activities. Simultaneously, I have a chance to look through this branch’s
collected data from various sources, especially its financial statement and statement of
profit or loss.
Business performance of an enterprise in general and business performance of gold in
particular of AJC HaDong often depends on many subjective and objective factors,
such as management practices, investment strategy to develop production, product
innovation, market expansion, human resource planning, the macroeconomic policies
of the concerned agencies. Therefore, constantly improving production efficiency
business is a leading concern of the leadership and the entire staff of AJC HaDong.

That is also the overarching and expressed issue that can illustrate the quality and
efficiency of economic management of the corporation. All these improvements in
content innovation methods and measures applied in management only really makes
sense if they increase business efficiency. Business performance is not only as a
measure of quality, reflecting the level of organization, business management, but also
as a matter of survival of the AJC HaDong in the current period. As Vietnam's
economy is integrating the world economy will open up many opportunities and many
challenges, especially in the field of business risk potential gold and hard to predict
correctly. Therefore, I choose the topic: “Improve the business efficiency of Vietnam
Agribank Gold Joint Stock Company Ha Dong Branch” to be my bachelor’s thesis in
finance.
1.2. Research objective
The thesis aims to analyze, synthesize, and evaluate; from that it gives some solutions
in order to improve the business efficiency of Vietnam Agribank Gold Joint Stock
Company Ha Dong branch. The theoretical and practical figures related to the business
efficiency at the Vietnam Agribank Gold Joint Stock Company Ha Dong branch
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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1.3. Scope of Research
Mainly focus on the indicators that show the business efficiency of Vietnam Agribank
Gold Joint Stock Company Ha Dong branch. All the figures, tables and cases were
collected from the materials of 2 years 2013 and 2014.
1.4. Research methodology
The thesis used many methods of analyzing, summarizing, synthesizing, and
comparing the statistics of the Vietnam Agribank Gold Joint Stock Company Ha Dong
branch through 2 years 2013 and 2014. The main source of information is secondary
data, including legal documents such as law documents; publications such as reports,
magazines or other publications related to the subject.

1.5. The structure of the thesis
The thesis includes three chapters as follow:
Chapter 1: Introduction gives the overall about the thesis: rationale, research purpose,
object and scope of the thesis, research method, structure of the thesis.
Chapter 2: Theoretical review of the gold trading business and the business efficiency
provides the readers with theoretical background of gold trading business, gold market
in Vietnam and in the world, and the business efficiency. The chapter does not only
feature an overview of gold and gold trading business but also clarifies concepts of the
indicators that show clearly the business efficiency.
Chapter 3: The efficiency of gold trading business in Vietnam Agribank Gold Joint
Stock Company Ha Dong Branch discusses the financial results and business
efficiency of AJC Ha Dong. Based on the theoretical overview above, the thesis
analyzes the financial statement and income statement that show the efficiency of
business in AJC HaDong.
Chapter 4: Solutions for improving the business efficiency in Vietnam Agribank Gold
Joint Stock Company Ha Dong suggests some recommendations of the author to
improve the business efficiency for AJC Ha Dong.
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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Chapter 5: Conclusion gives the summary of the thesis.
Due to limited time, knowledge and experiences, the thesis might have some
shortcomings and limitations. Therefore, I expect to receive comments and
recommendations from professors and readers to help me improve my thesis.
I would like to express my gratitude to PhD. Pham Thi Dinh, my supervisor in Falcuty
of Insurance, who gave me an orientation and a lot of useful advices to complete my
thesis.
I also would like to thank a lot of friendly, knowledgeable staff especially Mr. Nguyen
Thien Phuc, who directly help me a lot during the internship in AJC Ha Dong.
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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CHAPTER 2: GOLD TRADING BUSINESS AND THE BUSINESS
EFFICIENCY.
2.1. The role of gold in society
Gold has played a special important role in major of societies since thousands years
ago. Not only with a nation, a region of all known civilization considered gold as a
common trading good, but also every people around the world used gold. From the
time of Egypt - Ancient Greek, medieval, early modern, and so far, gold is always
adored. The classes, castes in any society passionately found, appropriated and stored
gold. Thus, gold is one of the very few values, which helped people to communicate
with the others regardless of differences in race, religion and history. Currently we
can trace our use of gold back to at least 6200 years ago. A variety of objects made of
gold have been found in Bulgaria from 4500-4000 BC. Gold artifacts dated to 5000
years ago have been found in Egyptian tombs; gold was already being beaten into
sheets, foil and wire in Egypt at this time. The Egyptian word for gold was ‘nub’ and
is related to Nubia, the land south of Egypt where much of Egypt’s gold was obtained.
Humans have known gold and treasured it since prehistoric times. Who discovered
gold? We do not know, it was discovered before there were written records. We
know there is a good chance the discovered found it in a river bed.
Gold is usually associated with rocks such as quartz and pyrites. As these rocks
undergo weathering or erosion by water, the gold can be washed into rivers allowing
people to find it easily.
1.1.1. Feature of gold.
The scientific symbol for gold is Au. It is number 79 on the periodic table of elements.
Gold is not magnetic, but it is an excellent conductor of electricity. Its melting point is
1945° F. Gold is not corroded or tarnished by moisture, or oxidized (rust) by the
effects of oxygen and water, or affected by ordinary acids, as most other metals are.
Deposits of gold that have lain inside a mountain or under a streambed or even on the
ocean’s bottom will remain there and be rather unaffected until moved by the natural
forces of the earth-or taken by man.
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Gold is unaffected by air, water, alkalis and all acids except aqua regia (a mixture of
hydrochloric acid and nitric acid) which can dissolve gold. Gold does react with
halogens. It will, for example, react very slowly with chlorine gas at room temperature
to form gold chloride, AuCl
3
. If gold chloride is heated gently, it will decompose to
release the pure elements again.
Gold is not the most valuable metal, but it is extremely valuable and probably the most
sought after of all the valuable metals found on earth. At today’s market exchange
value, that same cubic foot of pure gold would be worth in the neighborhood of 10
million dollars. A cubic inch of pure gold would be worth about 7 thousand dollars. So
gold is valuable, very valuable indeed; and it does not take very much of it to
accumulate a considerable amount of wealth.
Because gold is dispersed widely throughout the geologic world, its discovery
occurred to many different groups in many different locales. And nearly everyone who
found it was impressed with it, and so was the developing culture in which they lived.
Gold was the first metal widely known to our species. When thinking about the
historical progress of technology, we consider the development of iron and copper-
working as the greatest contributions to our species' economic and cultural progress -
but gold came first.
Gold is the easiest of the metals to work. It occurs in a virtually pure and workable
state, whereas most other metals tend to be found in ore-bodies that pose some
difficulty in smelting. Gold's early uses were no doubt ornamental, and its brilliance
and permanence (it neither corrodes nor tarnishes) linked it to deities and royalty in
early civilizations .
It is these characteristics that gold has attracted people from the beginning not only
always keep colors in all conditions, but also because with a little gold, people can
easily fabricated items very beautiful makeup for life.
1 Gold is the goods as well as one kind of currency

Gold has two attributes of goods, which are existing-use value and value worth.
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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Value in use of gold: Gold is used pretty much the same everywhere. Originally, due
to the brilliant colors, the easy processing and non-corrosive, gold is used for jewelry,
art and supplies serving mystical religious ceremonies. The applications of gold has
made people appreciate gold, used it to adorn themselves and regarded it as a symbol
of power. Since thousands of years ago, the gold objects were placed in the Pyramids
of Egypt's popular or how your donation Faraón decorated and map content in the
palace of the Emperor of China 'Son of Heaven '. This day, in addition to serving the
needs of jewelry and beauty, because of the predominant characteristics Vietnam, gold
is used in high-tech fields such as military technology, electronic technology and
travel information universe.
The value worth of gold: To have gold, it is necessary in gold mining and
manufacturing. Thus, the value of gold is worth of labor crystallized in it.
Gold is widely used in jewelry and coinage. It is also used in dental work as crowns, as
gold plating for decoration and as gold thread in embroidery work. The gold content in
alloys is usually measured in carats (k), with pure gold defined as 24k.
Gold is also one kind of currency. Gold became the basis of money in many ancient
civilizations, and even today most countries maintain large reserves of gold for
financial credibility. Most modern currencies, however, are not tied to gold as they
were in the days of Gold Standard, described by economist John Maynard Keynes as
“a barbarous relic.” In addition, the undeniable value of gold is in the ritual, religious,
symbol of the power of the ruling class, in admiration of the man with the jewelry, art
work associated with capital priceless art and beauty is praised by women, in other
words, in addition to the typical value of a commodity you go through many centuries,
just use as gold coins. When the productive forces and the social division of labor
developed to a certain extent, the exchange of goods thrived and people had to use the
special commodity serves as the general price level. Increasing in division of labor and
production market is expanding across the state have more general character makes

exchanges difficult, so need to use the general price level material and form unified
currency rates treatment appears, at first, the money is rare things for people such as
arrows, shells, fur, animal skins, and finally silver and gold.
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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Gold is very rare, in the earth and in the universe, especially compared to carbon and
the hydrocarbon molecules that were created by natural processes on Earth.
2 The situation of gold trading in the world and in Vietnam.
1 The situation of gold trading in the world.
Figure 2.1: Gold Price from 1915 to 2015
Source: USAGOLD.com
Gold as a commodity that has enduring value, play a role as an equivalent currency.
This is shown clearly in the function of gold as a currency: a measure of value, means
of circulation and payment facilities, storage facilities and the world currency.
Therefore, the fluctuations in the price of gold have become the first concern of
investors in particular and people all over the world. In the history of the world gold
price point, at the time 21/1/1981 gold hit a record 875USD per troy ounce. The reason
stems from the weakening US economy, rising inflation, the US bogged down in the
Vietnam War and to sell gold to the amount of $ 3.5 billion. The move makes the gold
reserves of the US dollar fell sharply and forced to float the decision dated 15/08/1971,
the U.S unilaterally disable Bretton Woods agreement on day 1 and then in 18/12/1973
the U.S must declare the dollar devaluation of 10% marks era rampant inflation and
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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the opening the stage gold prices climb on a high, from $232 in 1972 to $875 per
ounce.
The year of 2008 witnessed the spread of the global financial crisis, which stemmed
from the collapse of the housing market in the US. Its influence led many economies
in the world tanked, and in the context of high inflation, the investors massively
transferred their funds into the gold market. Only in quarter 1/2008, gold has increased

by 14% its value. The specter of inflation growing global threat, of which the most
obvious manifestation is the price of oil continues to climb each mold, mold after mold
is higher than before and the Federal Reserve lowered interest rates to constantly fend
with the devastation of the credit crisis, while other central banks to try to keep interest
rates high to curb inflation pressure as heavy dollar. The "Tsunami" of the global
financial crisis has caused severe consequences: the loss, disruption, nationalization,
bankruptcy, insolvency. Governments must make plans to provide support for the
economy but the solution is not to break the good signal for the market. Moreover, the
specter of deflation fears were put era "bubble" of commodity markets went into the
deep end of which have been the most reduced crude oil at up to 70% from the peak in
July 7 and constantly slipping so far, despite the efforts of the largest oil producing
countries such as OPEC, Russia, Saudi Arabia has slashed output. The demand for
gold as a safe items are not lost even the economic situation is not bright, especially
repercussion from the collapse of Lehman Brothers and the financial institution has
taken another giant price Gold peaked on 10/10/2008 at $950 per ounce, while the
trouble has not been thoroughly removed from the leading economy and the Fed
decided to take the lowest interest rates in history, plus measures to pump huge
amounts dollars into the economy to fight the crisis is putting pressure on depreciation
back to dollars.
1 The situation of gold trading in Vietnam
After over two years of implementation of the new regulatory framework for
managing the gold market generally and Decree 24 particularly, the management
solution the gold market has achieved positive results.
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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The implementation of Decree 24/2012 / ND-CP dated 03/4/2012 on the management
of gold trading activities (Decree 24), the State Bank of Vietnam (SBV) has urgently
promulgate guidelines and give some solutions to closely manage the gold market.
Now, the solution of management gold market has achieved some positive results.
In late 2012, the network business of buying, selling gold bars is set up, managed with

trading venues in all 63 provinces and cities. To date, the number of business locations
for trading gold bullion has been watered down and meets the needs of people and
businesses.
In 2013, the central bank creates some biddings of supply gold bars on the market,
balance the supply and demand with gold piece, and ensure the gold price remain
stable. SBV partly give an important contribution to maintaining a stable exchange
rate, and stable foreign exchange market macroeconomic regulations. Dealing with the
positive development of the gold market, from early 2014 until now, the SBV do not
need to organize tender gold bullion, contributing to limiting the use of the
Stabilization Fund in foreign currencies exchange rates and gold prices in order to
import gold on the international market.
On the organization manage to produce gold bars, after Decree 24 was applied, also in
2012, the SBV issued Decision No. 1623/Decision-SBV on the organization and
management of production of gold bars. Accordingly, instead of having multiple brand
gold bars as before, the whole market only a single brand as the central bank
authorized the Company Saigon Jewelry - SJC outsourcing. The SBV decided Quotas,
volume, time of production and material resources as well, on the basis of monetary
policy and the supply and demand of gold bars on the market. In order to ensure the
legitimate rights and interests of the people, the SBV continues to require the other
companies to make the transition of other brand gold bars to SJC brand for people.
In January, 5
th
2015, SBV issued Decision No. 2809 / Decision-SBV amending and
supplementing some articles of the charter organization and operation of the National
Money Printing Factory. Accordingly, the National Printer is printing money, coinage
and produce gold bars, gold souvenirs.
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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The implementation of regulation for producing gold bars, importing and exporting
material resources and the invention of stabilize the market price have brought some

positive effects. Especially, since the beginning of 2014 until now, at various times,
although the world gold market has now increased, a sharp fall in domestic gold
market remains volatile, SBV does not have to use reserves to intervene in foreign
exchange markets.
Besides, the demand for gold bars in the economy has fallen sharply. Gold bar demand
and supply shift from shortages to balance. At the time of world gold price increased
by reducing abnormal, domestic prices do not fluctuate sharply, no longer of "gold
fever" caused social unrest as before.
Specifically, during the year 2014, international gold markets are more complicated
with multiple sessions with large amplitude fluctuations. Highest gain is $1,380 /ounce
in the March of 2014. In the first 4 months of 2014, domestic prices are generally
volatile and the trend of international gold prices but adjusted rate decreased less than
the fluctuations of the international gold price. During the year, the lowest price of the
market is 34.86 to 34.9 million per tael, repeated twice in the first and early in
November. By the end of month 12/2014, the domestic gold price fell from 35.13 to
35.17 million / tael (buy - sell).
To conclude, in 2014, world gold price movements are relatively complex cause a
significant impact on the domestic gold price volatility, but with the policies that the
SBV deployed, the gold market management has achieved positive results. Stable
developments in the gold market have contributed to maintain the stability of the
exchange rate, the foreign exchange market, increase foreign exchange reserves and a
stable state macroeconomics.
3 Kinds of gold investment products in Vietnam.
Vietnam's financial market has been developing in recent years; thus, joining the
derivative products as well as the investments of investors have to face with more
difficulty than in developed markets. Trading in international markets not only needs
the diversity of goods (money, gold, precious metals, oil, agricultural products), but
also need to ensure that all the products for the investment requirements. Additionally,
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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as an activity that characterized the market economy in the long time i.e. supply and
demand will determine the prices of goods and clear legal framework that can help
investors to be peace of mind when investing. In contrast, the financial market in
Vietnam is very new, so it may show some difficulties for the business such as: no
legal framework intended to protect investors from the risks which can be prevented,
lack of derivative works, or have but the cost is too high making investment or use of
this product can not be effective or very few, not to mention the prices of some
commodities and the exchange rate closely monitor water such as oil prices, exchange
rate, makes use of derivative instruments is difficult to take effect. Here are some types
of trading gold in the commercial banking Vietnam today.
1 Trading gold through account.
There are many banks and jewelry companies are allowed to deploy this service
include: Eximbank, Sacombank, Vietnam Asia Bank, Eastern Asia and Southern;
Jewelry Co., Saigon - SJC, Agribank Gold Corporation. This is the bank's business and
the state Department of Foreign Exchange Management allows deployment since
2006, but this is a very promising business, banks are rushing to deploy. Gold trading
account requires a very small margin leverage factor for trading on one large volume,
while the purchase price constantly update publicly attracts a lot of investors to
participate. There are some advantages of trading gold through account.
- Reduce the amount of physical gold stored in the population and the amount of
foreign currency in the gold market will be limited.
- Source gold deposit is improved.
- Mounting prices linked to the international market, according to supply and
demand closely movement, increasingly integrated with the trading in gold and
derivatives as financial markets around the world]
It can be seen that the statistical figures of gold trading business of banks in recent
times have showed the interest from the business bank gold per year from 20 to 30
billion VND, and it is clear that when the bank earn profit, there is a large segment of
investors damaged. That means banks are not really supporting investors in the
business objectives of the bank and not to make a profit on international markets to

Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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profit from the difference between the international price of gold and the price
domestic gold when there are factors that impact.
2 Gold options and futures.
Gold options and futures are the gold speculation subsidiaries which are transient
hypothesis on the future gold costs. The businesses are more intricate and exchanging
hypothesis however not in physical gold. Consequently, those methods for ventures
are suitable for more experienced and advanced speculators. To purchase alternatives
is unsafe, a larger number of financial specialists lose than win. The unmistakable
playing point is that the financial specialist can control a huge speculation with a little,
and be restricted, measure of cash. The detriment is that alternatives terminate inside a
settled time of time. Gold choices and prospects may bring an extensive fortune; it
additionally may be lost all in a moment.
3 Gold deposits
To ensure payment requirements, credit gold is used to ensure the value of money. For
example, in the real estate transaction, the buyer before payment or not buy a house,
the bank bought gold held in custody to prevent the price of gold up. Conversely, if the
seller has not received money gold afraid of declining in gold price, they can borrow a
bank loans for sold out. When received by the buyer they will pay the money back to
the bank. Suppose an investor predicted gold prices rise, banks will borrow money to
buy gold deposits. The amount of the mortgage loan is due bought some gold to the
bank, and the bank loan will be paid to the shop to sell gold brought gold. Conversely,
if investors predict gold prices fell, they would go to the bank gold loans sold to stores.
Stores bring gold to buy the amount of money is put into the bank prior to the
collateral for the loan of gold. Thus, investors only spend a small amount of 1/10 or
less as specified percentage of banks that can perform this operation. Banks only do
their job performance, but the customers do their investment. This service may occur
risks for both sides, if the wrong direction, the investor may suffer property loss very
much, because they use their capital as financial leverage. Because of gaining big

profits when investment, this service attracts many investors.
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4 Gold backed securities.
Gold backed securities are one of gold investment ways which indirectly invest gold. It
combines the benefits of physical gold bullion with the liquidity of the traditional
securities market. Usually, the gold of securities can be redeemed, but the redemption
fee is relatively high to prevent gold trading frequency. Gold exchange-traded funds
(ETFs) are an investment fund traded on stock exchanges, much like stocks. Different
from the stock ETF, gold ETF is a financial derivative product tracking the spot gold
price.
Advantage of gold backed securities is: first, the dealing spreads are comparatively
lower than physical gold (such as gold jewelry, coins and small bars), commonly they
are 0.5%; second, removed from the gold custodial fees, storage fees and insurance
costs, only need pay a management fee of about 0.4%; at last, with high liquidity, it is
convenient to trade. Disadvantages of gold backed securities: investor does not have
gold ownership; some stock exchanges impose extra charges on each trading.
5 Physical gold.
Generally, physical gold is a piece of the vast majority's venture portfolio. Physical
gold could be put resources into the type of gold adornments, gold coins or gold
bullion. The benefit of physical gold: financial specialist has the direct proprietorship,
and keeps esteem. The impediment is: secretly put away gold is with low liquidity, the
expenses are high which including conveyance and handling charges. In respect to
gold coins and gold gems, gold bullion is more desirable over contribute, due to its
lower expenses and high liquidity.
Vaulted gold speaks to gold bullion. It is put away in expert bank vaults. The financial
specialist likewise obtains the vaulted gold possession, however doesn't hold the gold
in his own particular hands. Generally, the vaulted gold pays lower expenses and gives
a high liquidity.
6 Trading jewelry.

Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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Business model of trading jewelry is the business that the products are gold jewelry,
handicrafts such as ring, chain, ring, earrings, pins, and other subjects. Gold jewelry
market is constantly developing and expanding. Not to mention the biggest markets of
the industrialized countries, it is the French market, the US, Italy, Japan, Hong Kong,
India. Currently the gold market tends to thrive in Asia where the economy is growing
at a relatively fast pace, gold jewelry market development and sales with many diverse
forms as exhibited sold in the commercial center, on the internet, shop page health,
especially international fairs are held regularly around the world has boosted the sale
of jewelry. Consumers today tend to want to quickly change the design and style with
the more unique designs. They are not only interested in the quality of raw materials as
before. Therefore requires line, production technology in the field of jewelry
manufacturing increasingly improved to keep up with market demands.
2 The business efficiency of gold trading business.
We can base on some different ways when considering the term ‘efficiency’. However,
generally, business efficiency is critical to the accomplishment of any undertaking.
Business productivity is a wide term that makes a great deal of progress. Each part of
your business, from money to human resources, from generation to conveyance, can
be filled with inefficiencies that drive expenses up. At the point when surveying
expenses, it is critical to recollect that there's more than cash in question: expense is
time, quality, and great will. Being productive business means making choices that
bring the advantages to one sector of a business without unexpectedly taking from
another. Knowing the ventures to take and the apparatuses to use to make your
business more productive will help you get the best results in any event conceivable
expense. Quantitatively speaking, the economic efficiency of the production-trading
reflected the relationship between results and costs money. Qualitatively speaking, it
reflects the influence of manufacturing activities - trading for solving these
requirements and economic objectives, requirements and political objectives - society.
Gold business includes of trading gold, ensuring the balance of gold trading accounts,

and earning profits through exchange rate and interest rate of different currency and
gold. We can define the business efficiency of gold trading into some indicators as
follow:
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To analyze a business efficiency of a corporation, we need to base on financial ratios.
Because of the limit in the study, I will focus on some main financial ratios that reflect
clearly the business performance of AJC Ha Dong
1 Profitability ratios
Gross margin =
A company's total sales revenue minus its cost of goods sold, divided by the total sales
revenue, expressed as a percentage. The gross margin represents the percent of total
sales revenue that the company retains after incurring the direct costs associated with
producing the goods and services sold by a company. The higher the percentage, the
more the company retains on each dollar of sales to service its other costs and
obligations.
Profit margin =
A ratio of profitability calculated as net income divided by revenues, or net profits
divided by sales. It measures how much out of every dollar of sales a company
actually keeps in earnings.
Profit margin is very useful when comparing companies in similar industries. A higher
profit margin indicates a more profitable company that has better control over its costs
compared to its competitors. Profit margin is displayed as a percentage; a 20\% profit
margin, for example, means the company has a net income of $0.20 for each dollar of
sales.
Return on Asset (ROA) =
An indicator of how profitable a company is relative to its total assets. ROA gives an
idea as to how efficient management is at using its assets to generate earnings.
Calculated by dividing a company's annual earnings by its total assets, ROA is
displayed as percentage. Sometimes this is referred to as "return on investment".

Return on Equity (ROE) =
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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The amount of net income returned as a percentage of shareholders equity. Return on
equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested.
2 Liquidity ratios
Current ratio =
A liquidity ratio that measures a company's ability to pay short-term obligations
The current ratio can give a sense of the efficiency of a company's operating cycle or
its ability to turn its product into cash. Companies that have trouble getting paid on
their receivables or have long inventory turnover can run into liquidity problems
because they are unable to alleviate their obligations.
Cash ratio =
The ratio of a company's total cash and cash equivalents to its current liabilities. The
cash ratio is most commonly used as a measure of company liquidity. It can therefore
determine if, and how quickly, the company can repay its short-term debt. A strong
cash ratio is useful to creditors when deciding how much debt, if any, they would be
willing to extend to the asking party.
3 Activities ratio
Cost of goods sold to sale ratio =
The cost of goods sold (COGS) to sales ratio shows the percentage of sales revenue
used to pay for expenses which vary directly with sales.
Administration ratio =
The sales to administrative expense ratio is an asset utilization measure that allows
analysts to understand the level of overhead costs required to support a given level of
revenues. Investor-analysts oftentimes track this ratio over time, since the ratio should
decrease as a company achieves economies of scale.
Assets turnover =
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A

21
The amount of sales or revenues generated per dollar of assets. The Asset Turnover
ratio is an indicator of the efficiency with which a company is deploying its assets.
Inventory turnover =
A ratio showing how many times a company's inventory is sold and replaced over a
period. The days in the period can then be divided by the inventory turnover formula
to calculate the days it takes to sell the inventory on hand or "inventory turnover
days.”
Receivables turnover ratio =
An accounting measure used to quantify a firm's effectiveness in extending credit as
well as collecting debts. The receivables turnover ratio is an activity ratio, measuring
how efficiently a firm uses its assets.
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
22
CHAPTER 3: THE EFFICIENCY OF GOLD TRADING BUSINESS IN
VIETNAM AGRIBANK GOLD JOINT STOCK COMPANY HA DONG
BRANCH
3.1. Overview of AJC Ha Dong.
1.1.2. Vietnam Agribank Gold Joint Stock Company (AJC)
English name: Vietnam Agribank Gold Joint Stock Company Corporation.
Abbreviation: AJC
Address: 239 Pho Vong Street, Dong Tam Ward, Hai Ba Trung District, Hanoi,
Vietnam.
Tax code: 0100695362-003
Phone: 04 3869 8392
AJC, established under Decision No. 131/Decision-Agribank in September 28
th
, 1994
of Agricultural Chief Executive Officer, is dependent accounting units of Agricultural
Bank of Vietnam.

On March 24
th
, 2003, AJC was agreed by Prime Minister of
the Socialist Republic of Viet Nam and authorized by Governor of the State Bank
of Viet Nam. Chairman of the Board of Directors of Agribank Vietnam has signed the
decision No.44/Decision-BOD for establishing the Jewelry Fine Art Agriculture
Development Bank Corporation, which is an independent accounting unit under the
Vietnam Bank for Agriculture Development Bank, and is ranked as class I.
On June 25
th
, 2003, Governor State Bank of Vietnam signed Decision No. 655/2003 /
Decision-SBV for merging Jewelry Fine Art Vietnam on Agriculture and
Development Bank of Vietnam. Jewelry Fine Art Company received the Jewelry
Companies in Hanoi, Jewelry Companies in Ha Tay, Jewelry Crafted Companies.
On June 29
th
, 2007, Chairman of the Board of of Agribank Vietnam has signed
Decision No. 654/Decision-BOD for approving to change the Jewelry Fine Art
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
23
Agriculture Development Bank Corporation with 100% state capital into joint-stock
companies.
On June 24
th
, 2008, the Chairman of the Board of Directors of Agribank Vietnam has
signed Decision No. 732/Decision-BOD for approving share schemes, and changing
the Jewelry Fine Art Agriculture Development Bank Corporation to the General
Corporation with a capital of VND 206 billion.
On May 9
th

, 2008, AJC conducted an auction to sell shares for the first time (IPO)
successfully. AJC has had 02 strategic shareholders which are South East Asia Bank
(SeABank) and Nam Cuong Group and many other common shareholders.
On November 14
th
, 2008, AJC conducted a meeting of Shareholders adopted the
charter, plans for production and business activities; AJC also elected the Board of
Directors, the Supervisory Board of the Corporation.
On December 29
th
, 2008, Chairman of the Board of Directors of AgriBank of Vietnam
signed Decision No. 1737/Decision-BOD to change the name of the corporation from
Jewelry Fine Art Agriculture Development Bank Corporation to Vietnam Agribank
Gold Corporation Joint Stock Company (abbreviated as AJC).
Agribank Gold Corporation Joint Stock Company (AJC) is one of the largest
enterprises of gold industry in Vietnam. Switching to joint stock company model, AJC
unleash resources, potentially availability, as well as the advantage of the new
potential resources. The trend of globalization poses great challenges to the AJC as
well as creates new opportunities to develop strong AJC. AJC tend to apply the
principle of building and operating the system is standardized, modernized to ensure
all activities synchronized by AJC are rational, optimal, and always tightly
controllable, safe. AJC set the aim of the year of 2025, they will be the leading brand
in Vietnam, known in Southeast Asia, and become popular all over the World of
producing gold bullion, gold jewelry, silver, real estate investment business, and a
reputation for financial services, banks in the region. AJC network is available in most
provinces and cities in Vietnam. AJC particularly emphasizes on recruitment, training
staff in order to meet the full requirements of expanding and developing the company.
It is expected that by 2025 the number of staff working for AJC will reach about
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
24

9,000. The total assets of the system increased 25 times today. The average income per
capita income increased 5 times now. Dividends paid to investors often greater than
the interest rate plus inflation. AJC's shares on the stock market reach a high price, and
have increased liquidity. AJC is environmentally friendly, reliable members, partners,
investors and customers. AJC constantly improve product quality, service. AJC often
interested in improving the material life and spirit of the staff, members of the AJC,
ensure the dedication, entitlements, rights are honored equally among all members.
The greatest happiness of every member of AJC is devoted their abilities.
1.1.3. AJC Ha Dong.
1.1.3.1. General information.
Agribank Gold Corporation Vietnam Joint Stock Company - Ha Dong branch was
established in 1981.
Abbreviation: AJC Ha Dong
Head office: 537 Quang Trung Street, Phu La Ward, Ha Dong District, Hanoi,
Vietnam.
Tax code: 0100695362 to 003
Phone: 04 33824352
On May 30
th
, 1981, the State Bank of Vietnam decided to establish a Gold and Jewelry
Center of Ha Son Binh Province, the predecessor of AJC Ha Dong branch. At that
time, the organizational form was “Sufficient revenue cover Expense”
On March 12
th
, 1988, the company was renamed Ha Tay Jewelry Company depended
on the State Bank of provinces. At that time, all business activities were directly under
the control of the Director of State Bank of Ha Tay province.
On June 2
nd
, 1989, State Bank gave the decision No. 71-NH/HT to allow Ha Tay

Jewelry Company to be accounted independently and autonomy in production and
business activities.
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
25
October 2, 1991, with the appearance of the Jewelry Fine Art Agriculture
Development Bank Corporation, Ha Tay Jewelry Company was separated from the
State Bank to return to Jewelry Corporation. Business activities were under the statute
and the charter of the Vietnam Jewelry Corporation, and also under the control of the
General Director.
On July 1
st
, 2003, The Jewelry Corporation of Vietnam was merged into the Agribank
of Vietnam. Ha Tay Jewelry Company was merged into Jewelry Fine Art Agriculture
Development Bank Corporation under the Decision No. 655/2003 /Decision – SBV on
June 25
th
, 2005 of the Governor of the State Bank of Vietnam and become Ha Dong
branch and operates under the statutes of the Agribank of Vietnam.
On December 29
th
, 2008, Chairman of the Board of Directors of AgriBank of Vietnam
signed Decision No. 1737/Decision-BOD to change the name of the corporation from
Jewelry Fine Art Agriculture Development Bank Corporation to Vietnam Agribank
Gold Corporation Joint Stock Company (abbreviated as AJC). Ha Dong-branch
became an operating unit under the Headquarters.
From that time to now, Ha Dong Branch has been a potential unit, and leading in
effective business operation. It is the result of the tireless striving of various staff and
employees in the branch, especially the wise direction, and the high responsibilities of
the Ha Dong Branch’s managers. Ha Dong Branch has obtained some great
achievements.

Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A