Báo cáo thực tập tiếng anh INTERNSHIP COMPANY VIET DRAGON SECURITIES JOINT STOCK COMPANY

VIETNAM NATIONAL UNIVERSITY, HANOI
INTERNATIONAL SCHOOL

***

GRADUATE INTERNSHIP REPORT
INTERNSHIP COMPANY: VIET DRAGON SECURITIES

JOINT STOCK COMPANY
Address

: 2C Thai Phien stress,

Le Dai Hanh Ward, Hai Ba Trung Dictric, Hanoi

Supervisor

: Mr. Doan Anh Tuan

Student’s full name: Dinh Thi Phuong Thao
Student’s ID

: 11071299

Major

: International Business

Class

: IB2012C

Hanoi, March 1st 2016


ACKNOWLEDGEMENT
First of all, I owe a great debt of gratitude to all people who assisted me with this
project.
I would like to acknowledge and thank my school faculty, International School,
Vietnam National University, Hanoi for allowing me to participate in this internship
period and providing any assistance requested. I also sincerely thank to my
supervisor, Mr. Doan Anh Tuan, for supporting me during the internship as well as
in completing this graduate internship report. Special thanks go to the teachers in
my faculty for their useful education and continuous support.
I wish to thank all members at Brokerage Department of Viet Dragon Securities
Joint Stock Company - Hanoi Branch with their expertise and precious time. I
would like to send a special thanks to Ms. Dieu Linh, my supervisor for his detailed
guidance, helpful suggestions and most of all patience over the past few months. In
addition, I am really thankful to Ms.Thu Ha for her help of data collection during
my project work.
Finally, I would like to extend my loving thanks to all my friends in Vietnam
National University, Hanoi, especially International School who helped me so much
to fulfill all tasks given in the whole internship period.
Inter

Đinh Thị Phương Thảo

2


Table of Contents

LIST OF ABBREVIATION

5

VDSC............................................................................................................................................... 5
VIET DRAGON SECURITIES JOINT STOCK COMPANY.....................................................5
HNX................................................................................................................................................ 5
HANOI STOCK EXCHANGE....................................................................................................... 5
HOSE.............................................................................................................................................. 5
HO CHI MINH STOCK EXCHANGE.......................................................................................... 5
LIST OF TABLES AND CHARTS............................................................................................... 6
A. OVERVIEW OF VIET DRAGON SECURITIES JOINT STOCK COMPANY.....................7
1. General information about the company.............................................................................................. 7
2. Overview / Main landmark historical activities......................................................................................8
3. Mission, Vision and Core Values.......................................................................................................... 10
4. Oranization Structure.......................................................................................................................... 10
5. The product, market, target customers............................................................................................... 13

B. REPORT ON THE BUSINESS OPERATION ON PLACE OF VDSC:..............................13
The general business operations of the company in recent years:...........................................................13

C. INTERNSHIP TARGET, THE ASSIGNED TASKS AND IMPLEMENTATION
METHODOLOGY........................................................................................................................ 24
III. METHODS OF IMPLEMENTATION:............................................................................... 30
IV. RESULTS OBTAINED THROUGH THE GRADUATE INTERNSHIP..........................31
3. Experience Learned:............................................................................................................................ 32

3

In the internship period, I have learned many practical skills form the staff in the brokerage department
that would be useful for me in my future job. These lessons are as below:..............................................32
- Improving communication skills with my colleague..............................................................................32
- The team work skill.............................................................................................................................. 32
- The computer skills such as Word, Excel, Powerpoint and so on...........................................................32
- Especially, shaping my behavior, communication and dress style in the workplace...............................32
- Improving communication and advisory skills with customers, especially, the telephone sale skills......33
- Upgrading my writing skills of daily analysis reports............................................................................33
- Enhancing my English skills................................................................................................................. 33
4. Identify methods of settlement in the future to enhance the operational efficiency of the brokerage
employee:.............................................................................................................................................. 33
The brokerage activity is a complex business, requiring combination of many factors. Thus, there are
many solutions to improve operational efficiency of these activity. To do this, VDSC should take the
follow specific solutions:......................................................................................................................... 33
Focusing on training and developing the human resources.....................................................................33
Building the highly qualified and experiences staff.................................................................................33
+ Dispatching officers to attend training courses....................................................................................33
+ Often organizing the examination of staff's expertise..........................................................................33
+ Having the suitable reward regime for employees who work hard.......................................................33
Building the staff who good at professional ethics..................................................................................33
Upgrading the technical infrastructure and information systems............................................................33
Completing the brokerage professional processes..................................................................................33
Incorporating tightly between brokerage operations with other activities..............................................33
Expanding the customer network........................................................................................................... 33
Using efficiently the financial resources................................................................................................. 33

REFERENCES............................................................................................................................. 33

4

LIST OF ABBREVIATION

VDSC

5

Viet Dragon Securities Joint Stock
Company

HNX

Hanoi Stock Exchange

HOSE

Ho Chi Minh Stock Exchange


LIST OF TABLES AND CHARTS

No.
Table 1.1
Diagram 1.2
Table 2.1
Chart 2.1
Chart 2.2
Table 2.2
Chart 2.3
Chart 2.4

6

Name

Page

The main landmark historical activities

8

The organization structure of the VDSC

12

The business operations of the VDSC in recent years

10

The VDSC’s revenue of the securities brokerage activities

15

The density of revenue from the brokerage securities activities
of VDSC from 2011 to 2014
The market share of the securities brokerage activities of
VDSC in 2014
The revenue of propriety trading activities of VDSC form 2011
to 2014
The revenue proportion of propriety trading activities of VDSC

form 2011 to 2014

16
17
17
19


Table 2.3
Chart 2.5

Table 3.1

The revenue and the expense of the investment anvisory of
VDSC
The revenue proportion of propriety of business operations of
VDSC form 2011 to 2014
Tasks performed

A. OVERVIEW OF VIET DRAGON SECURITIES JOINT STOCK
COMPANY
1.

General information about the company

Name

: Viet Dragon Securities Joint Stock Company

Abbreviated name: VDSC

Logo

:

Type

: Joint-stock company

Chairman

: Mr. Tran Le Nguyen

Address

: + Headquarter address: Floor 1-2-3-4, Building Viet Dragon, 141

Nguyen Du Street, Ben Thanh Ward, 1 District, Ho Chi Minh City.
+ Hanoi Branch address: 2C Thai Phien Stress, Le Dai Hanh Ward, Hai Ba Trung
District, Hanoi
Tel

: +84.4 6288 2006

Fax

: +84.4 6288 2008

Email
Website

:
: />
On licensing

: 15/12/2006

Date of activity

: 21/12/2006

Chapter Capital : 700.000.000.000 VND

7

21
23
27


2.

Overview / Main landmark historical activities
Viet Dragon Securities Joint Stock Company was founded in accordance with

the License number 32/UBCK- GPHDKD issued by on December 21 st 2016 with its
chartered capital of 100 billion VND. VDSC is making its best efforts to assert its
position in Top 10 of Securities Companies in Vietnam with its vision to become
one of the best Securities the State Security Commission of Vietnam Company lead
in the brokerage market in both Hanoi Stock Exchange (HNX) and HCM Stock

Exchange (HOSE). As of 31st December 2015, VDSC’s total chapter capital reached
VND 700 billion. Then, the table below shows the main landmark historical
activities of VDSC
Table1.1: The main landmark historical activities
(Viet Dragon Securities Jont Stock Company, 2015)
Time
2006
12– 2006
2007
12-2007

Milestones
•

Founded with initial chartered capital of VND100 bn

• Order-receiving agents launched in Da Nang, Can Tho and

08-2007

Nha Trang.
• Share capital raised from VND100 billion to VND300

05-2007
03-2007
01-2007

billion.
• Became a member of Hanoi Securities Trading Center.
• Membership of Ho Chi Minh Stock Exchange.

• Membership of Vietnam Securities Depository.

2008
09-2008
08-2008

8

• Order-receiving agent launched in Binh Duong.
• Saigon Order-receiving Agent launched.
• Launched Ha Noi branch.
• Chartered capital increased to VND 330 billion


2009
06-2009

Became one of first 10 companies to register for trading on
UpCom operated by HNX.

2010
08-2010
05-2010

•

Share capital increased to VND349,8 billion
• Officially listed on the HNX under the ticker VDS and
launched Nha Trang Branch & Da Nang Branch.

2011
07-2011
2012
12-2012
07-2012
05-2012

•

Received "Best Annual Report" Award of 2011

•

Ranked as the sixth largest securities firm by 2012

brokerage market share in the HSX .
• Received "Best Annual Report" Award of 2012.
• Received Certificate of Top 100 Competitive Products and
Services for WTO integration.

2013
12-2013
07-2013

•

Ranked among Top 29 Companies with good Investor

Relation by Vietstock.
• Received "Best Annual Report Award" of 2013.

• Launched the Corporate Finance Journal

2014
07-2014

• Launched goDragon online trading application for mobile
phones running on iOS and Android.
• Received "Best Annual Report Award" of 2014.

2015
12/2015
10/2015
07/2012

9

• Charter capital increased to VND700 billion
• HNX to honour VDSC one of 30 enterprises for
transparency in 2014-2015
• Received "Best Annual Report Award" of 2015.


3.

Mission, Vision and Core Values
• Mission:

+ Make a continuous effort to create the greatest value for customers, shareholders
and employees, as well as contribute to the development of Vietnam's stock market
+ To aim at sharing responsibility in building community and society in developing

the country
• Vision:
Viet Dragon Securities Joint Stock Company strives to become one of the leading
and best investment banks in Vietnam.
• Core Values:
+ Focus on the customer’s benefits
+ Prestige
+ Professional
+ Creativity
+ Efficiency
4.

Oranization Structure

The board of management, including:
- Business
- Supervision
- Support
• The Machinery of Departments includes:
- The machinery of functional divisions within the company including Head,
Deputy Head and professional staff
- Head and Deputy Head are set by General Director's recruitment, appointment and
dismissing or resignation after the Board of Director agreement
- The experts, professional staff recruited by the General Director, are appointed,
dismissed resolved according to work demands and proposals of the Head.
- Deputy Head is Head assistants in executive management by the assignment of
Head Office
- The expert, professional staff performs tasks are assigned by the He

10

The diagram 1.2: The organization structure of the VDSC
(Viet Dragon Securities Jont Stock Company, 2015)

11


12


5.

The product, market, target customers
RongViet provides a wide range of financial and securities-related products

and services. Its products and services are customized to the needs of each and
every client. With intensive understandings of the market and clients, a dedicated,
innovative and professional team of experts and a wide-reaching network, its
products and services are out to best serve the demand of all types of investors from
individuals to organizations and financial institutions.
The product of the VDSC includes:
-

Brokerage and Investment Advisory
Securities Services
Research Services
Financial Services
Investment Banking

B. REPORT ON THE BUSINESS OPERATION ON PLACE OF VDSC:
The general business operations of the company in recent years:
The activities of VDSC base on the change of the Vietnam's stock market so
the result of its business depends on the volatility of the market.
The return on asset (ROA):

13


Return on assets (ROA) is 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 a percentage. Sometimes this is referred to as
"return on investment". (Investopia , n.d.)
The return on equity (ROE):

Return on equity (ROE) is 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. The ROE is useful for comparing the profitability of a company to that of
other firms in the same industry. (Investopia.com, n.d.)
Table 2.1: The business operations of the VDSC in recent years
(s.cafef.v, n.d.)
Year
Revenue

from

trading

securities

activities
Expense
Net income
Total asset
Shareholder’s equity
ROA
ROE
- 2011 and 2012: ROA of VDSC

Unit: VND billions

2011

2012

2013

2014

161.572

101.681

96.41

228.608

290.713

-129.141
997.343
326.5
(12.95)%
(39.55)%
in 2011 and

130.151
89.978
124.362
(28.47)
.537
105.232
756.453
642.789
892.919
249.51
236.46
289.845
(3.76)%
0.24%
11.79%
(11.41)%
6.5%
36.31%
2012 was negative, which means the

company makes losses, the expense and investment were larger than the income,
-

and this leads the negative profit after tax.
2013: ROA = 0.24%. On average, 100 units of assets generated 0.24 units of profit
after tax. ROE = 6.5%, which means that 100 units of the shareholder's equity was

14


used to generate a profit of 6.5 units. In 2013, the situation of business had
-

improved, it began to record profits, but the figure was still very modest.
2014: ROA = 11.79%. On average, 100 units of assets generated 11.79 units of
profit after tax. ROE = 36.31%, which means that 100 units of the shareholder's
equity was used to generate a profit of 36.31 units.This was a remarkable result
demonstrating the effectiveness of business of the company.
As we can see the anomaly of the stock market in 2011, 2012 and 2013 were
significantly affected in the picture of the securities companies in general and
VDSC in particular. Furthermore, the rising of unemployment rates that also
influenced significantly in the general operation of the Vietnam economy.
Especially, the stock market always reflected the volatility of the economy.
According to the data of the Vietnam State Security Commission, in these years, the
more than 40 securities companies were unprofitable, and almost securities
companies uncompleted the business plan. In addition, the trends of the market
were contrary to the expectations of the company stock, analysts and investors.
However, in 2014, the economy showed signs of recovery then the stock market
also achieved many positive results. Although Vietnam's stock market in 2014 was
affected by a number of events such as "the South China Sea and the rig" (05/2014)
and "oil prices" (11/2014), the Vietnam's stock market at the end of the year also
had a successful year. The HSX was at 545.63 points (it increased 41 points,
respectively 8.12% compared with 2013) and the HNX reached at 82.97 points (it

grew 22.3 points respectively 15.13%). At the end of fiscal 2014, the revenue of
VDSC reached VND 228.608 billion, its profit after tax was over VND 105.232
billion, its ROA and ROE were also relatively high.
In this report, I would like to introduce more details about the results of
VDSC business operations from 2011 to 2014 through the following specific
activities such as the securities brokerage activities, the proprietary trading
activities, the underwriting activity, the securities investment advisory activities, the
securities depository activities and other activities.

15


1. The securities brokerage activities:
The securities brokerage activities are one of the business operations of
securities companies which represent for customers to buy or sell shares in order to
create the profit for customer but customers still take responsibility for all of
decision. The securities brokerage activities have proven to be an important activity
of VDSC because of bringing the high turnover for company.
Chart 2.1: THE VDSC’S REVENUE OF THE SECURITIES BROKERAGE
ACTIVITIES (s.cafef.v, n.d.)
Unit: VND Billions

The revenue from the brokerage activities of VCSD generally increased over
the years. In 2011, the revenue of these activities was VND 16.071 billion which
accounted for 9.95% of total revenue of the company. In 2012, it proliferated to
VND 29.436 billion which equaled 83.2% of total revenue, larger than last year was
VND 13.365 billion. In 2013, the revenue had declined slightly to VND 26.99
billion due to the situation of the overall market. However, in 2014, it changed
significantly when the revenue was VND 63.66 billion and accounted for about
30% of total revenue that exceeded VND 30 billion compared to the plan. This was

16


a great success of the company, which is not only because of the positive change of
the stock markets but also because of the effort of the internal environment of
VDSC.

(HCM Stock Exchange, n.d.)
In 2014, it was a successful year of brokerage activities because of the
impressive growth in both number of transactions and revenues from brokerage
fees. At the end of the year, VDSC had 59200 accounts of customers, which
includes 1733 of the new account.

There were 23 accounts of the domestic

organizations. The accounts of foreign organizations were two.

The foreign

personal accounts were six. In addition, there were 1702 accounts of the domestic
personal. The new accounts decreased 32% compared with the new accounts in
2013 (2519 accounts), then it only reached 58% of the target plan (3000 accounts).
The closing accounts in 2014 were 52 accounts, including 51 of the domestic
personal accounts and 1 of the domestic organizational accounts. The closing
accounts in 2014 were higher than that numbers in 2013 that were about 11
accounts. Besides, the personal accounts were majority in the total number of
accounts in 2014 (58904 account). The rest were 166 accounts of the domestic
organizations, about 120 accounts of the foreign personal and 10 accounts of the
foreign organizations. However, the numbers of active accounts were 4501

accounts, an increase of 399 accounts compared to 2013, and equivalent to 9.7%.

17


The proportion of total active accounts over the number of accounts increased from
7% in 2013 to 8% in 2014. The number of the active account per month increased
from 1,463 in 2013 to 1,784 accounts in 2014 (about 22%). The proportion of the
number of the new customers ' transactions increased from 13% to 27%.
According to statistics, VDSC had the largest market share of the brokerage
activities in the top 10 of the largest Vietnam securities companies in 2012.
However, in 2013 and 2014 the market share decreased. Significantly, in 2013, it
decreased to 2.46% of the whole market, including HOSE was 2.87%; HAS was
1.14% and Upcom was 4.99%. It continued to fall in 2014 (1.46%) which included
1.61% of HOSE, equivalent to 56.2% to compare with in 2013; 1.06% of HAS and
Upcom reached 1.3%, equivalent to 26.1% to compare with 2013. The market share
of bonds was very low, so there is no statistics.
Table 2.2: THE MARKET SHARE OF THE BROKERAGE ACTIVITIES OF
VDSC IN 2014 (HCM Stock Exchange, n.d.)
The

market 2013

share
Whole market
HOSE
HASTC
Upcom

2.46%

2.87%
1.14%
4.99%

2014
Real
1.46%
1.61%
1.06%
1.3%

To compare To
Plan
2.44%
2.86%
1.2%
0.05%

with 2013
59.35%
56.1%
92.98%
26.05%

compare

with the plan
59.84%
56.29%
88.33%

26.00%

2. The underwriting activity and the issuance of securities dealers:
The underwriting activity is frequently done in investment banking,
insurance and commercial banking. Generally, the underwriting means receiving
payment for the willingness to cover a potential contingent risk.

(www.

intopedia.com, n.d.)
The underwriting activity of VDSC was underdeveloped in the past. In 2011
and 2013, there was no revenue from these activities. However, in 2012, the
revenue from these activities was VND 390 million that accounted for 0.38% of the
total revenue. The stock market in recent years was not stable so these activities
were not remarkable. However, in 2014, the underwriting activities of VDSC

18


considerably developed; it reached to the highest proportion of the total revenue.
Specifically, VDSC has signed a contract to underwriting stocks with Bao Long
Insurance Joint Stock Company and the contract to underwriting corporate bonds
with Him Lam Joint Stock Company. As a result, the revenue of the underwriting
activities was VND 7.77 billions that was larger than the plan (VND 4.6billions)
and rose 8.32% to compare with 2013. This was a landmark decision of VDSC. It
expected these activities would continue to develop and bring stable revenues in the
future.

3. The proprietary trading activities:
The proprietary trading activities are the required condition for the securities

company to be allowed to engage in the underwriting activities.

Chart 2.3: THE REVENUE OF PROPRIETARY TRADING ACTIVITIES
OF VDSC FORM 2011 TO 2014 (Unit: VND Billion)
(s.cafef.v, n.d.)

19


Chart 2.4: THE REVENUE PROPORTION OF PROPRIETARY TRADING
ACTIVITIES OF VDSC FORM 2011 TO 2014 (Unit : % )
(s.cafef.v, n.d.)

The revenue from this activity in the recent years was relatively large and
tended to increase steadily over the years in the form of capital contributions to
investment securities. The revenue from this activity in 2011 was VND 13.652

20


billion, accounting for 8.45% of total revenue. In 2012, it was more than VND
12.518 billion, accounting for 12.31% of total revenue. It was more than VND
28.447 billion in 2013, accounting for 12.31% of total revenue. In 2014, it soared to
VND 96.38 billion, accounting for 42.16% of total revenue. Because the company
obtained the money, which it had invested into the Bao Long insurance joint stock
company and the money from a number of short-term investments. At the end of
2014, the total value of the investment portfolio was 154 billion, of which included
108 billion of listed stocks, and 46 billion of the unlisted stocks. Basing on the
results of business operations in 2014 and the forecast of Vietnam economic
situation in 2015, VDSC set a target for the return of these activities at about 45

billion. Besides, VDSC will restructure the investment portfolio, and look for the
short- term investment opportunities basing on the stock market situations.

4. The securities investment advisory activities:
- In 2011: The revenue of the securities investment advisory activities reached VND
112.135 billion, representing 69.4% of total revenue. The required expenditure to
generate revenue was about VND 76 million. This was a successful year of VDSC
in the securities investment advisory activities.
- In 2012: The revenue of these activities was at VND 22 billion, which was down
90 billion, compared with 2011, equivalent to 83% of the total revenue.
Consequently, the expenditure in 2011 decreased at VND 443 million, accounting
for 21.7%, compared with the last year.
- In 2013: Because of the difficult situation of the stock market, the new advisory
contract continued to decline, consequently, the revenue of these activities also
reduced at VND 10.358 billion, accounting for 10.74% of the total revenue.
However, this result was still encouraging.
- In 2014, the revenue of these activities was VND 6.737 billion, accounting for
2.95% of the total revenue, and its expense was at VND 555 million.
Table

2.3:

THE

REVENUE

AND

THE

EXPENSE

INVESTMENT ADVISORY OF VDSC (Unit: VND billion)

21

OF

THE


(HCM Stock Exchange, n.d.)
Revenue
Expense

2011
112.135
46.701

2012
22.066
18.86

2013
10.358
7.21

2014
6.737
4.784

Basing on the data in the last 4 years, it can be seen that VDSC's business operation
was difficult. They should improve the securities investment advisory activities to
increase the revenue of these activities.
5. The securities depository activities:
As well as other companies, the securities depository activities of VDSC
almost contributed at least contribute to total revenue. In 2011, there was no
revenue. In 2012, it obtained more than VND 3.536 billion, accounting for 3.48% of
total revenue. In 2013, its revenue reached VND 3.622 billion, accounting for
3.76% of total revenue. Basing on the unstable stock market, in 2014, its revenue
was VND 3.888 billion, accounting for 1.7% of total revenue.
6. The other activities:
VDSC's revenue can be obtained from other activities such as the property
investment, managing shareholder books, providing other services and so on.
In summary, it can be seen the business operation situation of the Viet Dragon
Securities Joint Stock Company from 2011 to 2014 through the following chart:

Chart 2.5: THE REVENUE PROPORTION OF BUSINESS OPERATIONS
OF VDSC FORM 2011 TO 2014
(Unsupported source type (Report) for source Vie14.)

22


2011

2012

23

2013

2014

C. INTERNSHIP

TARGET,

THE

IMPLEMENTATION METHODOLOGY
I.

Internship Target :

24

ASSIGNED

TASKS

AND


The internship for final year students is to create opportunities for them
become familiar with the working environment and applies the knowledge learned
into the practice. therefore,the internship is extremely important for students to
prepare for their future jobs. In particular, for the students of the International
School, International Business major, it is also an opportunity for them to improve

English skills, as well as the business operations knowledge and other useful skills.
Therefore, for students, an internship period of 6 weeks plays an important role not
only in their learning process but also for their future career. Moreover, in this
period, they can apply the knowledge, which is in school to practical work. Hence,
students can identify their strengths, weaknesses to equip the suitable knowledge
and skill for their future job. Moreover, these practices also help students
understand the future work of them to take the suitable training strategies.
In particular, my internship target includes:
- Penetrating into the actual environment
- Raising my awareness about the role and my responsibility for pursuing my future
job
- Accessing and get familiar with the work, which relates to my major
- Taking part in the jobs that the internship company assigns
- Finding out the agencies, company that relates to my majors
- Organizing the implementation with individual or group work
- The most important that is I find out about VDSC's brokerage activities, especially
the process of opening accounts for the new customers and processes of looking and
taking care of customers.

II.

Work content:
The content of the specific assigned tasks during graduate internship at Viet

Dragon Securities Joint Stock Company as follows:
-

Understanding an overview of Viet Dragon Securities Joint Stock Company
Self-review and learn more about the basics of securities, the stock market and

-

the securities brokerage activites
Taking part in the internship training course

25