Organizational situation of private wealth management department in BIDV securities company (BSC)

ACKNOWLEDGEMENT
First of all, I would like to profoundly say thanks to my instructor - Mr. Nguyen
Viet Dung, Associate Professor.PhD, Lecturer of Foreign Trade University for his
considerate guidance during my whole mid-course internship period. His instructions
were extremely useful for me to successfully complete the internship report.
Furthermore, I am also grateful to Mrs. Nguyen Thanh Hoa – Manager of Private
wealth management Department and all staffs there, who gave me an opportunity to
intern and gain real practice in such a professional environment.
Finally, I would like to say that I would really appreciate the internship time at
BSC, which has helped to direct my future career.


TABLE OF CONTENTS

TABLE OF FIGURES


ABBREVIATIONS
Abbreviation
BIDV
BSC
Dept.
FCFE
FTU
HNX
HOSE
HSC
KPI
P/E
SHS
SSC

SSI

Stands for
Bank for Development and Investment of Vietnam
BIDV Securities Company
Department
Free Cash Flow to Equity
Foreign Trade University
Hanoi Stock Exchange
Ho Chi Minh Stock Exchange
Ho Chi Minh City Securities Corporation
Key Performance Indicator
Price to Earning
Saigon – Hanoi Securities Joint Stock Company
State Securities Commission of Vietnam
Saigon Securities Inc.


PREFACE
Opening on November 26th 1999, BIDV Securities Company (BSC) is honor to
become the first securities company in the Banking industry participating in the
Vietnam stock market. As a pioneer, BSC is proud of its opening to operate as a
multifunctional intermediary financial institution marked the start of the securities
business in general and careers of stock broker, investor and investment adviser
particularly in Vietnam. Inheriting and bringing into play unrivaled experience
acquired from banking activities, especially in the field of credit analysis and project
appraisal for over 50 years of BIDV – the only state-owned commercial bank
designated to be the settlement bank for Vietnam stock market by State Securities
Commission of Vietnam; with well-trained and experienced staff with high
professional skills and business ethical standards; BSC has been effortlessly

contributing solid bricks to the first ground for the foundation and development of
Vietnam stock market.
However, compare with other leading securities companies in the industry, such
as SSI or HSC, BSC does not have a strength for investment consulting for institutional
clients. As institutional clients are conservative and only choose familiar securities
companies with long time of collaboration to make deals with, BSC tend to focus on
individual clients – the open-minded clients that will choose any company offering the
best designated option for their investment. The establishment of Private Wealth
Management Department in 2015 is the move to approach individual clients of BSC,
especially affluent clients.
Therefore, over the time internship in BSC, along with applying knowledge
acquiring through the learning time at FTU, I had chosen the topic: “Organizational
situation of Private Wealth Management Department in BIDV Securities Company
(BSC)”. Besides going into the main issue is the operation of the department, the
author also describes an overview of the work practice, the business environment and
the provision of securities services; thus boldly put forth some measures to rectify and
improve some existing problems in the Private Wealth Management Department.
The report contains three main chapters:
Chapter 1: A brief presentation on the establishment and development of BSC
and introduction about their functions, missions and the company’s structure. The role
of Private Wealth Management Department in the company.
Chapter 2: Describe the internship position. Private Wealth Management
Department and other related department from practical perspective.
Chapter 3: Comparison and comments on the operating activities of the
company, with some recommendations.
Due to my limitation of knowledge, skills and experience, mistakes and faults
are inevitable. I welcome all comments, advices and suggestions that help me improve
the quality of the report.

4

Finally, I would like to express my gratitude to my instructor - Associate
Professor. PhD. Nguyen Viet Dung and all BSC staffs for helping me complete my
mid-course internship report.

1. Introduction about BSC and Private Wealth Management Department
1.1 General information about BSC
Trading Name: “BANK FOR INVESTMENT AND DEVELOPMENT OF
VIETNAM
SECURITIES JOINT STOCK COMPANY”
Abbreviation : BSC
Certificate of business registration No: 111/GP-UBCK
Charter capital: VND 865,000 million
Owner’s equity: VND 869,135 million
Headquarter Address : 1st Floor, 10th – 11th floor, BIDV Tower, Ly Thai To Ward,
35 Hang Voi Street, Hoan Kiem District, Hanoi
Branch Address : 9th Floor, 146 Nguyen Cong Tru Street, District 1, Ho Chi Minh
City
Phone number: 84-4 39352722 / 84-8 38218508
Fax number: 84-4 22200669 / 84-8 38218510
Website: www.bsc.com.vn
Securities Code: BSI
Business: BSC is a securities company with following business scope:
- Brokerage
- Securities Investment
- Securities Underwriting
- Securities Depository.
- Other activities specified by the laws
BSC's commitment throughout all aspects of operational activities - providing

professional services to customers, increasing shareholders value through the
sustainable economic growth indicators, building an attractive working environment,
reducing operating costs and limiting the impact on the environment through Green
activities.
1.1.1 Core values, missions, visions and long-term development strategy
 Core values
• Quality of staff
• Corporate culture
• Technology infrastructure
 Mission
Contributing to the development of the stock market and delivering values to
clients, investors and shareholders of the Company.
 Vision
5


Restructuring the customer base toward sustainable development and safety.
Maintaining and gradually improving the rank among top securities companies.
Transitioning toward an investment bank.
 Long-term development strategy
BSC aims at higher growth rate than the average stable market level, relatively
independent from the market movements and affirming outstanding brands toward
leading position in Vietnam securities market, increasing profit, and the workplace of

6


professional staff to achieve common objectives.
1.1.2 Organization structure
Councils

(Investment
Council…)

General Shareholders Meeting
Supervisory Board

Figure 1-1: Organization structure of BSC
Board of Directors
Development Policy Committee

Risk Management Commitee

Human Resource and
Compensation Committee

Investment
Stock Investment
Dep.t

Fixed-Income Dep.t

Financial Advisory
Fiancial Advisory
Dep.t

Board of Management

Investment Consulting

Support

Securities Service Dep.t

Institutional
Client Dep.t
Product
Development
Dep.t

Support Unit
Dep.t

Internal Control Dep.t
Risk Management Dep.t
IT Dep.t

Private Wealth
Management
Dep.t

Administration Dep.t
Plan & Marketing Dep.t
Dep.t

(Source: Annual
report of BSC
in 2015)

Financial Accounting

Branch in Ho Chi Minh City

7

Internal Control Committee

Research
Research Dep.t


1.2 General information about Private Wealth Management Department
1.2.1 Functions of Private Wealth Management Department
Private Wealth Management is an investment advisory practice that incorporates
financial planning, portfolio management and other aggregated financial services for
private individuals, not for corporations, trusts, groups or other types of clients.
From the private client's perspective, private wealth management is the practice of
solving or enhancing her financial situation and achieving her short, medium and long
term financial goals with the help of a financial adviser. From the private financial
adviser's perspective, private wealth management is the practice of delivering a full
range of financial products and services to an affluent client as a financial consultant so
that the client can achieve specific financial goals.
Securities companies as well as fund management firms or asset management
firms offer various kinds of investment products to individuals, although many private
individuals lack the time, effort or knowledge to manage their finances successfully. To
make up for what may be lacking, private individuals seek the consultation of wealth
managers who specialize in managing the finances of private individuals.
Established in May 2016, Private Wealth Management Department is a new
department under Investment Consulting unit. The department contains 6 employees,
manage over 200 private clients, including large, medium and small clients. Because
the department still a demo, in fact, the team work like a private brokerage team. The
business results are also included with the total business results of Brokerage

Department. Nevertheless, staff of Private Wealth Management Department are
considered to be more specialized and well-trained, with strong background in
securities investment field than staffs of Brokerage Department.
Private wealth management is a young business in Vietnam, account for a very
small part of revenue in each securities companies, fund management firms or asset
management firms. For BSC, in the future, when the amount of clients reach a
adequate number, they will divide the clients into groups, each group have different
care regimes, policies and fee. The affluent clients will be focused on, with special
privilege from the department. High-net-worth individuals have unique financial
situations that require greater diligence and a higher degree of active management.
Further, high-net-worth individuals require a more holistic approach to investment
management than many financial advisers are capable of providing. They can have
issues with income taxes, estate planning, investment management and other legal
issues that need more attention and specific expertise than traditional investment
advisers are qualified to give.
Because Private Wealth Management Department is a small newly developed
department, it does not have any document about its operating mechanism or
management mechanism. All the information of the department come from consulting
the manager – Mrs.Hoa and other staffs.

8


Obligation of Private Wealth Management Department staffs
The obligation and accountability of Private Wealth Management Department
staffs related with wealth management process, to go into details are:
• The wealth manager sits down with the private individual and goes over the
financial goals that the client would like to attain. Then, the wealth manager
puts together an investment strategy to help that person achieve her goals.
• The wealth manager manages the client's money and invests in the investment

products that make sense for the client.
• Although securities firms in the world offer private wealth management services
with a variety of advisers and expertisers that provide guidance across a wide
spectrum of investments including cash, fixed income, equities and alternative
investments; BSC as well as other large securities companies in Vietnam that
have private wealth management department just advise on choosing stock
portfolios for clients.
• Every staff have to write various reports and send to clients on a week/month
basis.
• If there are any new information about the corporations that clients invest in,
their staffs have to send to the clients as soon as possible.
• Regularly make recommendations for new investment for individuals.
• Follow accounts of the clients very carefully to remind them about the condition
of the accounts.
• When account of one individual is closely fall to maintenance margin, remind
he immediately to avoid margin call
Also, there are two types of clients, and each type of clients have different fee:
o The clients has authorized the wealth manager to wholly handle their
accounts.
o The clients trade by themselves, only receive information and
recommendations from wealth manager.
When a new individual open account in BSC, depend on their need, they may
seek an offer to use private wealth management services. This is the case of individuals
that the company assigned to Private Wealth Management Deparment to take care of.
Other case is the staff of Private Wealth Management Deparment searched for clients
by himself. In that circumstance, the staff will receive higher fee than fee from the
clients assigned by the company.
Each account was designed for a specific individual, with specific demand of
return and level of risk tolerance. Staff to be in charge of individual will specify their
need and make different portfolios for different individuals. The choices of adding any

stock in the portfolio are make by the staff himself, do not need approval from the
manager or other members of the department.
Staffs of Private Wealth Management Deparment are enthusiastic, experienced,
with good technical knowledge and good communication skill to fulfill the
requirements of the functions and tasks that the department and BSC proposed. High
1.2.2

9


working efficiency, graduated from prestigious universities, this is the factor of human
resources management that makes the success of the Private Wealth Management
Deparment in particular and BSC in general.

2. Internship job’s description
Staffs of BSC start to work at 8.30 am until 11.45 am, back to work at 1 p.m and
close the day of work at 5.30 pm. However, hardly any staff leave the office at exactly
5.30 pm. They continue to work for about fifteen minutes, and ordinary staffs, often
young staffs leave the company. The old staffs and especially the managers stay at the
office over 6 pm or even later 6.30 pm or 7 pm. The working environment is strict,
during working time staffs seldomly exchange conversations or chatting. When timeoff for lunch, some light bulbs have been turned-off, so at 1 pm, the staffs turn on the
light and back to work. I observe that the time they turn on the light maybe earlier than
1 pm, but never later than for 1 pm even one minute. So punctuality has became a
signature trait of BSC staffs, everyone comply with the time regulated by apperception,
no one need to be reminded.
On the first day of internship, I was introduced to the whole people in the room
by Mrs. Hoa – the manager of Private Wealth Management Deparment. Product
Development Department have shared the same room with Private Wealth
Management Department, and my desk was between Product Development
Department staffs. I could observe not only how staffs of my department work, but also

how Product Development Department staffs work.
Later on, Ms Tien – a staff from Administration Department came to the room
and asked to follow her. I was introduced to the time machine system – a tool to check
the punctuality of staffs. After the time machine took my fingerprint, I was told about
the schedule of BSC employees. I had to be at the office no later than 8.36 am, with the
time machine checking my fingerprint to record the time I come. When the work time
of the day came to an end, before leaving the office, I had to be checked with the time
machine again. Time machine prevent employees to be late for work, with no excuse
for bad weather or traffic jam. All staffs have to wear uniforms at work, except for
Friday, they can wear normal apparel. As an intern, I did not have the uniform, so I
could dress up normally with only one rule: my shirts or t-shirts have collar.
I was given an email of BSC: It came to me as a surprise
that even an intern like me got a private working email from the company. From the
very first hour in BSC, I had the strong impression about the professional working
environment and the strict management system. If someone has a phone call while
working, he will immediately leave the room to keep silence for other colleagues.
Everybody works highly focused, which create a tension throughout the room.
The first thing I learnt was the way staffs connect with each other and with the
clients: through a chatting app – Skype. There were staffs even use two computer or
one computer and one laptop while working: one screen displays stock board, one
screen displays conversations with clients and other staffs from different department.
10


Securities company prefer Skype as a way to communicate, and they have many
private chat rooms to discuss about investment and information about various stocks.
Using Skype is a fast way to transmit information and small data from both sides of the
conversations, and also more secure compare with using phone calls, as calls are easily
heard by nearby people and can lead to distort information. I also exchanged
conversation about work with other staffs and the manager through Skype. If you want

to work for a securities company, firstly, register a Skype account.
Secondly, after asking my friends also work at other securities companies, I
wondered why all the companies start to work at 1 pm, with short lunch break. Later
on, when I learnt some basic things about the stock exchange, I knew that the stock
exchange continues to trade at 1 pm after the break, so at that time, staffs of securities
companies also have to update information straightway from the stock boards.
BSC headquarter locates at only the 10 th and 11th floor of BIDV Tower. Related
departments are arranged to work at the room near each others, and staffs from
different departments usually come to other departments to share information or ask
about reports and even consult the managers. All the departments work closely, backup and support each others. For instance, Product Development Department research
on the needs and expectations of investors, attitudes and decisions of the investors.
Then, from those researches, they develop the new features of the products, services
tailored for individuals, help Private Wealth Management Department to offer various
kinds of investment products and services for clients. Human resources are employed
toward specialization, but closely linked for the sake of best results in working
efficiency.
On my first day at work, Mrs. Hoa told me to enter BSC website:
to learn about BSC and wait for further instruction. After
hours reading several articles on BSC website, I could have the basic understanding of
BSC including the company’s business, structure and working culture. I finished
reading the website early, and decided by myself to look for information of BSC in the
internet. From various articles from electronic newspaper such as CafeF or
VnEconomy to some forums of investors, I came to realize some basic information
about the performance of BSC. They are on the list of ten securities companies with
largest market share, and also one of ten highest revenue securities companies. BSC’s
leading business is trading and offer brokerage services for bond. They have positioned
first for securities company in the bond market, their market share in the bond market
is far larger than in the stock market.
However, unlike stocks, bonds brokerage fees are much lower. For example, the
tariff given by the BSC, with bond transactions worth over 10 billion VND, brokerage

fees was only 0.02%, so the turnover rate of the total value of BSC with large bond
trading much lower than the average level. In the near future, as Circular 06 come into
force, government bond markets will be more dynamic and developed in the future,
increase capital mobilization channel from government bond issuance. It will be an
opportunity for BSC to boost up their revenue from trading debt securities.
11


At some forums for investors, BSC was complimented as good at consulting for
individuals, staffs give recommendations carefully and enthusiastically. However, after
taking advices from BSC, individuals said they tend to use account at other securities
companies to order stocks, the reasons left unsaid. After weeks at BSC, hearing
conversations between managers and staffs, I know that BSC set the margin for trading
stocks at too low. Individuals often do not have much money to invest in a large
amount of stocks, so they want to borrow from securities companies to finance their
investment, use leverage to increase profit. Some stocks BSC even don’t set margin
for, which means investors have to order that stocks completely with their money.
Trading with low margin or no margin deteriorate investors profit, and BSC lose their
clients because of their tighten policies of giving margin.
Secondly, after having background information about BSC, I was sent via email
by Mrs. Hoa a folder contains Law on securities 2010, Decree No. 86/2016/ND-CP of
the Government on requirements for investment and trading in securities, Decree No.
60/2015/ND-CP, Decree No. 58/2015/ND-CP, all the legal normative documents
related with investment in securities. Mrs. Hoa told me to note down the interpretation
of terms of securities instruments, securities organizations and related parties in trading
securities.
I learnt basic definition of Vietnam securities market, and how government regulate
and supervise activities in the trading market.
Feeling the legal documents do not provide enough information to understand
how stocks have been traded, as well as the stock market in reality in Vietnam, I

borrowed from my friends some documents and books about real life securities in
detail. Besides textbooks about securities investment and analysis, I read documents
from Ho Chi Minh Stock Exchange, Hanoi Stock Exchange and The Securities
Research and Training Center. I knew a lot of knowledge and information about stocks:
features of three stock exchanges; methods of trading: how to read the stock board,
types of prices, types of orders, schedule of trading and payment; terms in the market;
types of analysis: fundamental analysis and technical analysis; process of analysis:
macromarket analysis, industry analysis and company analysis, Exchange Traded Fund
(ETF), VN-Index and HNX-Index, put through trading.
When Mrs. Hoa presented to me a stock board and told me how could a
company to be listed in HOSE and I said I already knew about it through searching, she
seem to be satisfied. She told me if I felt confident about my basic knowledge of
securities, I could move on and read some electronic newspaper, such as CafeF, and
read articles about securities market in Vietnam. I read about blue-chips, reliable stocks
in different industries, some “hot” stocks at the moment, potential stocks, daily market
information, trend in the market, new regulation of government for stock market.
Everyday I went to check the changes in price of stocks in the stock board, note down
the changes of some potential stocks. Mrs. Hoa suggested me to register a virtual
account and try to trade stocks as a beginner. There were many magazines and
newspaper about financial market in the office, so in the spare time, the staffs and me
12


picked up some to read. This is the effective way of acquiring information about the
market that BSC bring to staffs.
Moreover, in two final weeks of the internship period, I was given reports of
BSC from the staffs. The reports came from the whole Investment Consulting Unit. At
first, I started with marcromarket reports, which gave me the overview of the whole
economy in Vietnam, summarize events in the stock market and forecast about the
securities market in the near future. Secondly, I continued with industry reports:

construction industry, pharmaceutical industry, textile industry, real estate industry,
banking industry, steel industry and so forth. Analysed from the economy of scale to
the business cycle of the industry, and compared with others industry, estimates the
risk and return of the industry. I highlighted some prospective companies of each
industry, and search for these companies reports, not only companies reports from BSC
which I was given, but also reports from other securities companies. I focused on the
business model, the competitors, the board of management of the firm. After that, I
read their financial statements and their financial ratios carefully, try to figure out the
financial condition of the companies behind these numbers. It failed me when I try to
read technical analysis reports, as the knowledge I got from the university can not help
me to understand about technical analysis, none of the subjects in the school is related
with that type of analysis. Step by step, when I feel like I have comprehended a little
more about my focused firms, I watched out their prices in the stock board day by day,
besides observe prices of blue-chips in VN-30 and HNX-30.
Mrs. Hoa told me to read books about equity valuation, especially popular
methods such as P/E ratio (Price to Earning ratio) and FCFE (Free Cash Flow to
Equity). FCFE is suitable for firms that do not pay dividend or pay dividend less than
earning cash flow. FCFE estimates enterprise value in the long run and sensitive to
discount rate as well as assumptions of analyst, so its weakness comes from depending
excessively on assumptions. Assumptions must be logical and rational to product an
accurate results. Using P/E ratio also is a useful and easy method for investors to
evaluate stocks. This method focus on the profitability of stock, and is widely used and
approved by most of investors. However, EPS (Earning per Share) can be negative and
manipulated by accountants, and using P/E ratio to compare with other companies an
from year to year is troublesome because of the variation of income. Staffs with
experiences tend to capture the abnormal factor in the financial statements at a glance
to conclude that stock has been overpriced or underpriced. When I said I want to learn
how to read financial statements quickly, other staffs told me that it had been the
common sense of an analyst, something you can learn by watching but no one can
teach you. That moment I understood better the importance of experiences in working.

The best part of learning is watching staffs of Product Development Department
exchanged conversations with the manager. Sit next to my desk is Mr. Khai, a staff
from Product Development Department. He often be reprimanded as he submitted the
reports late. The manager of his department commented on his reports that it were
overlong, up to over ten pages. Mr. Khai was told to summarize information and
rewrite the reports, the maximum length was five pages. The manager said that, a
13


overlong report diluted the crucial information that the readers of reports should focus
on, and the report just presented main points briefly and in a direct way. At one Friday,
Mr. Khai was asked when he could turn in the report, his answer was Monday of the
next week. His manager said if he could not submit the report in this week, he had one
week more to prepare it carefully. It came to me that every reports in BSC must be
written with efforts of analyst, and the manager would supervised the output of reports
thoroughly before actually use it for other purposes.
As Product Development Department affliated with Board of Management, their
projects and products are monitored directly by member of Board of Management. Mr.
Le Quang Huy - Deputy General Director of BSC, paid a great deal of attention to the
results of Product Development Department. For weeks, he even went to the room of
this department at the afternoon and sit there to work and supervise every staffs of the
department worked. Mrs. Hoa told me that he often left the room in 8 p.m, after long
hours discussed with the manager of Product Development Department about their
strategies. Mr. Le Quang Huy remembered all the staffs in the room, which surprised
me. He concerned about the products in detail, asked each staffs about their tasks and
their opinions. He even arranged all the desks of the staffs in Product Development
Department so they sit together and work closely like a team, make it easier when
exchange ideas.
Product Development Department have responsibilities for setting the margin
for each stocks, a vital task that affect the performance of the whole company. As I said

before, margins that BSC provide for investors are low, compare with other securities
companies. Dealing with margin is an intricate part of the job that trouble from the
staffs to the manager of the department, and even a great concern of the Deputy
General Director – Mr. Le Quang Huy. When Mr. Khai cut the margin of KSB – Binh
Duong Mineral and Construction Joint Stock Company – a stock with large trading
volume, he was reprimanded by Mr. Le Quang Huy. The Deputy General Director
asked, if Mr. Khai was a individuals with limited capital but want to invest in KSB
stocks, how could he finance this investment without margin from the securities
companies, not to mention KSB was a stock with high price in HOSE. With the price
approximately over 60000 VND for one stock, individuals with small amount of capital
can not order a moderate number of KSB stocks. This wrong decision made Mr. Khai
received a cut in his KPI.
When I first heard of KPI, it was a complete strange term that I never be
encountered before. Every staffs in the room talked about KPI at the time near the
closing of a month, so I searched to know about this term. After that, I understood KPI
was stands for Key Performance Indicator, a type of performace measurement. Each
department hace different criterions to scale the KPI for employees. It was a way BSC
use to assess performance of departments and staffs, to bring appropriate encourages
for employees, together with reward and punishment for each individuals and
department. Reading about KPI gave me the insight of the method firms nowadays use
to evaluate the job performance.
14


One thing I admired in Mr. Le Quang Huy was his incredible memory to
remember all the characteristics of each staffs. One day he asked one staff from
Product Development Department about his professional certificate, the reasons why
he started work in BSC from last year but until now still did not get the certificate, and
reminded him to take the certificate as soon as possible. I searched in the internet again
and discovered employees in stock company need to have professional certificate in

securities trading issued by State Securities Commission of Vietnam. When I went to
the recruitment section of some securities companies, many positions required this
certificate, or at least a commitment of applicants to acquire the certificate within one
year from the time they were admitted for the jobs. Individuals have to take many
courses in The Securities Research and Training Center and pass the examination at the
end of each courses to be qualified for the professional certificate, so that required a lot
of time to get the certificate. This means any students want to take part in a securities
companies must know about the qualification for the certificate early to set plans for
learning.
After a sufficient time intern in BSC, I asked some staffs of my department,
especially my supervisor – Mrs. Hoa about their perception of my ability, and also my
strengths and weaknesses. I was complimented on my willingness to learn as well as
my ability to observe and search for things to learn by myself. However, my
communication skill was quite not good. I was suggested by Mrs. Hoa to pay attention
to the jobs of back office departments, such as Financial Risk Management Department
and Internal Control Department, which more suitable with my capability and adding
value to my path of career. Other staffs told me how other departments in the company
work and connect with each others, and the tasks that each departments have to handle.
Also, for each direction of work, I was told what certificate I should get and what skills
I have to specialize in. The staffs even discuss with me whether I should continue to
study master degree right after graduating from the university, or go to work for a few
years to get the experiences in reality. After those talking, I had some guidance for my
future jobs and learning path, and listened to practical experiences when worked in
different departments in securities companies and commercial bank, all are valuable
things to share from senior staffs.
In Private Wealth Management Deparment, each staff manage their own clients
and accounts, they meet up and talk directly with individuals to consult about the
portfolios, so I had a few chances to have real work and practice, even I always ask if I
can support other staffs in their works. Everyone is busy, so I decided to search for
documents to read, and ask if there is anything I could not understand and comprehend

completely, I could seek the helps from my department staffs. In my opinion, the time
of internship mainly help me increase my networking and explore the working
environment in BSC. As firms in Vietnam usually do not have training department,
when you first come to work, you have to learn everything from the start, but people
often do not have time to instruct you, so watching and learning is useful and crucial
part to get used to the job. Internship gave me an opportunity to enhance my softskill
and compare my knowledge from school to the job in real life.
15


3. Comparison and explain the relationship between knowledge and reality.
Some recommendations for Private Wealth Management Deparment in
particular and for BSC in general.
3.1 Knowledge and reality
Before my internship time in BSC, I have learnt the subject Securities Investment
in school, which supposed to help me gain basic knowledge of the stock market and
trading securities, as well as equity evaluation. However, when I came to intern at a
securities companies, I hardly knew anything about the real condition of stock market
in Vietnam. For that reason, I had to gather all the documents and books and newspaper
to read in order to know how investors traded stocks in Vietnam.
The first thing I want to mention is that, most of the subjects in my course just
focus on theories in textbooks, lack of practicality. My course is High quality program,
all the major subjects we learnt are taught with American textbooks, which means there
is no feature of Vietnam market we can find in the books. Throughout Securities
Investment subject, we have learnt a lot about securities and other models to evaluate
equity, however, after passing the subject, I did not even know there are three stock
exchanges in Vietnam market. All I have heard are stocks from HOSE and HNX, so
when Mrs. Hoa told me there is still one more stock exchange, UpCom stock exchange,
I felt shameful for my lack of knowledge. In the class, we never been taught how to
read a stock board, how many types of order that we have in Vietnam, or even the

differences of HOSE and HNX. Why a company is listed in HOSE but not HNX, if I
did not have done the researches myself, I could not get the answer from what I learnt
in university. We calculated the initial margin and maintenance margin for stocks, we
knew the formula, but the real margin in each prospective stocks that vary from
different securities companies, we have never seen that. Different industries bring
different risks and returns which vary from each period in the year, but I did not learn
about it at school. We have never done any research of industries even when we had
assignments. Until now, my friends which did not intern in a securities companies, still
do not know that when we analysis a stock, we have to read not only that company
report, but also macromarket reports and industry reports. We have never been
introduced of any blue-chips in the class, or some high-growth stocks in each industry.
Except for some students who had been traded stocks for years on their own, most of
the students in my class do not have any ideas of what is going on in the stock market.
Even the staffs from Investment Consulting Unit have to go to enterprises and meet up
with managers and directors of the firm to carry out the reports, they do not just sit in
the office and look at financial statements to have information for the reports. One staff
from Private Wealth Management Deparment told me, when you graduate and go to
work, you have to start from scratch: almost everything you have learnt are not useful
when it comes to real work.
Secondly, lecturers through many subjects have never told us about organization
structure of a commercial banks or a securities companies. We have no idea about the
job we should pursue according to our abilities. Our school lacks of career guidance for
students. Each department in financial institutions in general have different traits, and
16


the recruitment team want to have applicants that already knew about the positions they
apply for. As one senior told me, to make my curriculum vitae “selling” good, I have to
add in the form factors that compatible with the job I apply for. A staff of Institutional
Client Department is assessed different from a staff of Financial Risk Management

Department. The lecturers also never told us what knowledge from the subjects we
learnt can applied in what department in financial organizations. I supposed we should
been told if our dream to be work in treasury department, for instance, what subjects
we should focus on and what those subjects will help us in our jobs. Moreover, the
students do not know with their interests and abilities, what jobs they should applied
for in the future, and whether the jobs can lead them in their career paths. From my
point of view, Foreign Trade University not only need to educate students, but also
train them to meet the professional qualification of recruitment team in the finance
field.
Thirdly, each jobs require different qualifications, such as different certificate. I
have never heard of professional certificate in securities trading issued by State
Securities Commission of Vietnam before. It is a must have certificate if you want to
work in a securities company. There are three types of professional certificate:
professional certificate for brokerage, of professional certificate for financial analyst,
professional certificate for fund management. You have to finish 5 courses for
brokerage certificate, 6 courses for financial analyst certificate and 7 courses for fund
management certificate in order to acquire the approval from State Securities
Commission of Vietnam. It’s quite a long time needed to finish those courses, and
students have orientation towards securities field should know about those courses
early. In my class, all students know about the Chartered Financial Analyst (CFA)
program, but they do not understand fully the opportunities for those people who
obtain this certificate or the knowledge after learning CFA will be useful in what jobs
and positions. Just some students know about Financial Risk Manager (FRM)
certificate, a qualification for risk management professionals, particularly those who
are involved in analyzing, controlling, or assessing potential credit risk, market risk,
and liquidity risk as well as non-market related financial risks. FRM holders perform a
broad variety of functions related to risk management within investment banks, asset
management firms, as well as in corporations and government agencies. With the
application of Basel 2 in some big commercial banks, the need for human resources
with good technical knowledge in risk management field is increasing, and FRM

certificate is considered adding a significant value in curriculum vitae. Hardly anyone
has known about Chartered Market Technician (CMT) program, a professional
designation that confirms proficiency in technical analysis of the financial markets. It
takes a long time to study and pass the exams required as well as have enough years of
experience to be qualified for those certificates, so students should know and plan for
the course of study early. Because students often are unaware of the requiments of
recruitment, lecturers with many years of experience should mention to them about
some professional programs and the road to acquire certification from those programs.
17


However, I have to say that all the subjects I have learnt in Foreign Trade
University has helped me to prepare background knowledge in finance and banking
field, which like a foundation for my further education. I can not learn all the new
things quickly like that without having basic knowledge from school. When I read the
analysis reports, they use the methods I have learnt through some subjects: Dividend
Discount Model (DDM), Capital Asset Pricing Model (CAPM), Arbitrage Pricing
Theory (APT), Weighted Average Cost Of Capital (WACC). They evaluate equity
using Price to Earning (P/E) ratio and Free Cash Flow To Equity (FCFE). SWOT
analysis and PESTEL analysis have been used widely when assess companies compare
with other companies in the industry. Every single subject, from Skill Development to
Financial Reporting Analysis, even they are from my major or not, has improve my
abilities as well as other skills needed for work.
3.2 Recommendations
3.2.1 BSC in general
Generally speaking, the operating activities of the firm is acceptable and
relatively stable. Having been backing up by BIDV, one of “Big 4” commercial bank
in Vietnam, BSC have a large capital base. In consultancy activities, BSC can approach
big clients from BIDV and get many worthy consulting contract. However, competition
among securities companies become increasingly fierce in the form of reduced fees,

hired qualified employees. Differentiation between top companies with the remaining
companies increasingly powerful while BSC has restrict on the size compared with
rivals which makes the company has limits on margin lending services and the
upcoming derivative securities.
Compare with big securities companies such as SSI or HSC, BSC do not have
advantages over institutional clients. Institutional clients tend to favor top companies
they have traded securities with for a long time. BSC should focus on individual
clients, because individuals choose stock companies only bases on their services, from
consultancy and order system and their charges on fees as well as their margin lending.
BSC should improve their trading website to make sure it works well even in rush
hour, besides offer a competitive level of fees. Big securities firms like SSI or HSC
often have high fees and this is a disadvantage for individual with large investment.
BSC also need to attract high qualified employees for brokerage field, to offer a better
consulting services for customers, as their revenue from brokerage unit account for a
large part of total revenue.
Margin lending is a different story. Low margin level of BSC always a
dissapointment for investors. To attract individuals, BSC has to enhance their margin
lending services, as well as take part in the derivatives market. In 2016, BSC has a plan
to increase chartered capital by two methods: private offering stocks for some financial
investors and issue shares to pay dividends for public. Also, they want to “loose room”
for foreign investors to attract capital from this group of investors. If the plan is going
to be successful, BSC will have more capital to increase margin lending and join in
derivatives market – a new and prospective market.
18


BSC increase chartered capital also means BIDV's influence on BSC will fall.
The reduction in the ownership of the Bank lead to prediction that BSC’ stock can
become more attractive for investors. Because from the time BSC go public (2011), the
percentage of BIDV’s holding at BSC unchanged. 5 consecutive years, the Bank

retains the right to control the entire operation at BSC. In the future, if BIDV has
reduced its ownership in the BSC, the relationship mother and child between BIDV
and BSC will continue to help BSC build and exploit the long term relationship with
corporations, industry-leading businesses – the clients of BIDV.
Through the time at BSC, in my opinion, the working environment in this
company still less affable and sociable. Even I interned in a front office department
specialized in individual clients, which means the staffs have to communicate with
individuals for the most part of work, most of staffs in my room still are reserved.
There is a tension across the room. While I was talking with my friends who interned
in commercial banks and other securities like SSI, SHS, they told me the staffs in their
office were friendly and outgoing. Through contact with staffs from other financial
institutions, I must admit that they are more open-minded and dynamic. From my
perspective, BSC should influence staffs to be more gregarious and flexible.
3.2.2 Private Wealth Management Deparment in specific
Private Wealth Management Deparment is a new department in BSC, so the
scale of the department still small and the amount of clients is just fairly average. In the
future, when the number of clients reach a high level, they will divide clients into
groups and the high-net-worth individual will receive special services with different
fees. Increasing work efficiency and customer services to attract more individuals, this
is the mission of staffs Private Wealth Management Deparment.
BSC receive a large amount of clients from BIDV, and Private Wealth
Management Deparment also rely most on clients from BIDV. This dependence lead to
staffs inexperiences of finding clients. To acquire more portfolios from individuals,
each staffs need to focus on searching for clients and catch up with the need of
individuals. Each individual has different motivation and requirements for their
portfolios, so staffs need to balance their requiments with the portfolios returns to meet
the expectations of clients.
Marketing for Private Wealth Management Deparment is still not to be
concerned by Board of Management. Individuals often unaware of this new department
and the services they offer. Besides bring exceptional services to clients, BSC need to

promote about the image of the department and the results of returns in individual
portfolios. Private wealth management is a newly developed department in some
securities companies, so this department of need to have distinction to compete with
other stock companies, such as low fee, high qualified staffs. Individuals have to know
that if they use services from Private Wealth Management Department, they will have
superior advantages compare with only use brokerage services. Their portfolios must
have some guarantee factors worth the fees they pay for the services.

19


CONCLUSION
BSC is one of the most important subsidiary of BIDV and have been brought a
large amount of revenue for BIDV as BSC has a prime position in securities market
which has recovered from crisis and become more and more dynamic and developed.
Besides some limit and inexperience of a new department, Private Wealth
Management Department have brought more opportunities for individuals in
investment, and soon to be a prospective department in the company.
The report is an introduction to the overview of the characteristics, functions,
organization and personnel of Private Wealth Management Department of BSC, and
also describes the actual work process in the daily working environment of securities
companies and responsibilities each staffs have to handle. Since then reports provide
notes on office skills, communication skills needed in the work, and also brings a
realistic picture of the theoretical basis in finance and banking industries, so that
students can combine flexibly between knowledge and practice.
Although five weeks internship in BSC is not a long time, but I also was able to
accumulate a lot of experiences and knowledge, new skills in real practice, especially
communication skills and the behavior when working in an organization, which will be
helpful for me later on when I graduate from Foreign Trade University.

20


REFERENCES
BSC’s annual report in 2015.
BSC
Overview
(2016).
[online]
BSC
website.
Available
at:
/>[Accessed August 8th. 2016]
3. BSC Market News (2016). BSC dự kiến nới room 49%, tăng vốn lên 1.500 tỷ đồng
trong
năm
2016.
[online]
BSC
website.
Available
at:
/>[Accessed August 8th. 2016]
1.
2.

21