(LUẬN văn THẠC sĩ) attracting foreign portfolio investment in vietnam stock market

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HCMC - UNIVERSITY GRADUATE THESIS SUBJECT: ATTRACTING FOREIGN PORTFOLIO INVESTMENT IN VIETNAM STOCK MARKET AUTHOR: PHẠM CAO ĐẠT CLASS: HQ02-GE01 STUDENT CODE: 030630140806 GUIDE LECTURER: ASSOC PROF ĐẶNG VĂN DÂN HƠ CHÍ MINH CITY, 2018 download by : skknchat@gmail.com SUMMARY Recognizing the importance of FPI's capital flows as well as investment concerns in the world towards Vietnam The thesis set out the basic arguments for foreign portfolio investment, analyzing the fundamental aspects of FPI in terms of positive and negative aspects The thesis also explores the situation of attracting foreign investment of countries such as Thailand, China and India to draw lessons for Vietnam in attracting FPI capital on the stock market, through research the situation of attracting foreign capital on the stock market has resulted in the successes as well as the limitations and the causes leading to the remaining negative aspects After the remaining limitations are found, the thesis proposes recommendations for better implementation of foreign investment attraction in the stock market of Vietnam download by : skknchat@gmail.com ASSURANCE I pledge that this is my subject of thesis and is guided by Dr Dang Van Dan The content in this topic is honest and has not been published in any way before The data in the tables used for the analysis, comment, and evaluation are collected by the various sources from the different sources indicated in the reference section If any fraud is found, I am fully responsible for the contents of my dissertation Author (Sign, write full name) download by : skknchat@gmail.com THANK YOU I would like to send my sincere thanks and deep gratitude to the lecturers of Banking University of HCMC , who use their knowledge and enthusiasm to impart the precious knowledge to us in during school time I sincerely thank Assoc Prof Dang Van Dan has devoted himself to teaching and giving comments to complete the graduation thesis With time for the implementation of the limited course and experience and knowledge is limited, so inevitably the shortcomings, I very much want to receive the valuable comments of teachers Lastly, I would like to wish lecturers at the University of Banking Ho Chi Minh City a lot of health, faith to continue its noble mission is to impart knowledge to future generations download by : skknchat@gmail.com CATEGORY SUMMARY ASSURANCE THANK YOU LIST OF ACRONYMS LIST OF FIGURES LIST OF TABLES EXORDIUM 10 CHAPTER 1: RATIOCINATES ABOUT STOCK MARKET AND FOREIGN PORTFOLIO INVESTMENT CAPITAL IN THE STOCK MARKET 13 1.1 Ratiocinates about stock market 13 1.1.1 Concept and essence about stock market 13 1.1.2 Structure for operating and managing stock market system 13 1.1.3 Function and structure of stock market 15 1.1.3.1 Function of stock market 15 1.1.3.2 Structure of stock market 17 1.2 Foreign investment on stock market 17 1.2.1 Concept of foreign investment 17 1.2.2 Forms of foreign investment 18 1.2.2.1 Official Development Assistant – ODA 18 1.2.2.2 Foreign Portfolio Investment – FPI 18 1.2.2.3 Foreign Direct Investment – FDI 20 1.2.3 Impacts of Foreign portfolio investment on stock market 20 1.2.4 Factors affecting the ability to attract foreign investment on the stock market 23 1.2.4.1 International business state 24 download by : skknchat@gmail.com 1.2.4.2 Economic and politicical conditions of receiving country 24 1.2.4.3 Law system and policies attracting investment 24 1.2.4.4 Level of public transparency of receiving country 25 1.2.4.5 Equitization process of state enterprises 25 1.2.4.6 Other factors 25 1.3 Experiences from internationals in attracting foreign investment capital on the stock market 25 1.3.1 Experiences from objective countries 25 1.3.1.1 Experiences from China 26 1.3.1.2 Experiences from Thailand 27 1.3.1.3 Experiences from India 28 1.3.2 Lessons learned for Vietnam 30 1.4 Tendency of FPI flows in the current period 32 CONCLUSION FOR CHAPTER 33 CHAPTER 2: ACTUAL STATE OF FOREIGN PORTFOLIO INVESTMENT ACTIVITIES IN THE VIETNAM STOCK MARKET 34 2.1 Overview of Vietnam stock market 34 2.2 Actual state of acttracting foreign portfolio investment activities in the stock market of Vietnam 37 2.2.1 Actual number of securities trading accounts of foreign investors 37 2.2.2 Status of stock trading value of foreign investors 38 2.2.3 Capital size of foreign organizations 42 2.3 Assessing the statement of attracting foreign portfolio investment capital in the stock market of Vietnam 47 2.3.1 The achievements 47 download by : skknchat@gmail.com 2.3.2 The shortcomings 47 2.3.3 Causes of the shortcomings 48 CONCLUSION FOR CHAPTER 50 CHAPTER 3: SOLUTIONS FOR ATTRACTING AND PROMOTING FOREIGN PORTFOLIO INVESTMENT CAPITAL IN VIETNAM STOCK MARKET 50 3.1 Development strategy of Vietnam stock market 50 3.2 Solutions to attract and promote foreign portfolio investment in the stock market of Vietnam 52 3.2.1 Group of solutions for the Government 52 3.2.2 Group of solutions for businesses in the securities industry 55 CONCLUSION FOR CHAPTER 56 CONCLUSION 56 REFERENCES 58 download by : skknchat@gmail.com LIST OF ACRONYMS ACRONYMS FPI MEANING Foreign Portfolio Investment ODA Official Development Assistant FDI Foreign Direct Investment HOSE Ho Chi Minh City Stock Exchange HNX Hanoi Stock Exchange FI Foreign Investor GDP Gross Domestic Product IPO Initial Public Offering M&A Mergers and Acquisitions SOEs State-owned Enterprises SSC The State Securities Commission VASB Vietnam Association of Securities Business IMF International Monetary Fund WB World Bank ADB Asian Development Bank FII Foreign Institutional Investor SEBI Securities and Exchange Board of India IOSCO International Organization for Securities ASEAN Association of South-East Asian Nations ETF Exchange-traded fund YOY Year over year VAS Vietnamese Accounting Standards System SWIFT Society for the Worldwide Interbank Financial Telecommunication VEIL Vietnam Enterprise Investment Limited download by : skknchat@gmail.com LIST OF FIGURES Figure 2.1 Trading statement of foreign investors in HOSE Figure 2.2 Trading statement of foreign investors in HNX LIST OF TABLES Table 2.1 Numbers of trading account of FI in Vietnam stock market Table 2.2 Stock trading value of FI in HOSE Table 2.3 Stock trading value of FI in HNX Table 2.4 List of foreign investment funds in the stock market of Vietnam Table 2.5 Growth in foreign investment funds in excess of $ 100 million in 2017 download by : skknchat@gmail.com EXORDIUM The urgency of the subject 2017 is considered a successful year for the Vietnamese economy Most important economic development goals such as GDP growth, exports, and revenue, have achieved impressive results in the slow pace of recovery in the world and neighboring countries, It is thanks to the efficient and continuous efforts of the Vietnamese people, especially the efforts of the Government, strive to achieve the objectives of reforming the business environment, competitiveness and innovation of economy, quality of service, laying the important foundation for the next reforms in the coming years is clearly stated in Resolution No 11-NQ / TW signed and promulgated at the 5th Conference of the Executive Board The 11th Party Central Committee, including the Resolution on perfecting the socialist-oriented market economy; Resolutions on further renovation of state-owned enterprises (SOEs) and on the development of the private sector become the driving force of the economy One can not be failed to mention on that overall sucessful is the contribution of the stock market when the market continuously establishes the achievements that exceed the expectation, bringing positive influence to every corner of the economy According to data from the State Stock Commission, up to 19/12/2017, VN-Index reached 951.42 points, up 43% compared to the end of 2016 Before that, there are many times that VN-Index has exceeded 970 points - a record number of nearly 10 years One of the main reasons for this achievement is the strong foreign portfolio investment inflows State Stock Commission said that the value of the portfolio of foreign investors as of December 20, 2017 reached $ 32.9 billion, an increase of 90% compared to the end of 2016 Foreign investors not only buy Listed stocks but also shifted aggressively to new listed shares, divested shares, IPO or M & A This confirms the attraction as well as the influence of foreign capital flow into the stock market of Vietnam is not small In 2018, with the determination of the Vietnamese government to upgrade the market, equitize and divest the state-owned enterprises together with the positive momentum of the macro economy, the Vietnam stock market Expected to continue to attract capital from abroad, asserting the important role in building the economy effectively and enhance competitiveness Starting download by : skknchat@gmail.com set up in the context of extremely difficult situation when Vietnam economy was just abstained from the US just a year before, at this time the size of the fund is quite small compared to some funds Other to the Vietnamese market After more than 20 years of cooperation, VEIL has experienced many ups and downs along with the Vietnamese economy, experiencing many successes and failures, VEIL fund still the most prestigious and sustainable growth in Vietnam Stock market, this It is increasingly confirmed that by 2016, the fund received more than $ 100 million in investment from the Bill Gates billionaire Melinda Gates Foundation Trust and became one of VEIL's largest shareholders, Vietnam Stock market as well as the prestige of VEIL fund In addition to Dragon Capital, Vinacapital is also known by investors as Vietnam Opportunity Fund (VOF), Vinawealth But later than Dragon Capital, Vinacapital has a common belief in the Vietnamese economy, they all come to the Vietnamese economy is not good And that belief has been answered, as they continuously harvest sweet fruit, the investment of Vinacapital bring a very high profit The common feature of these two funds is the closed-end fund and always invests in leading companies, large-scale, growth rate Funds poured into ETFs such as VanEck Vector Vietnam ETFs, FTSE Vietnam ETFs only operate in Vietnam and the MSCI Frontier Markets Index ETF operates on a global scale Thanks to the presence of ETF funds, the Vietnam stock market has been active in the past few years as each portfolio review Table 2.5: Growth in foreign investment funds in excess of $ 100 million in 2017 No Fund name Management agency Vietnam Enterprise Investment Limited (VEIL) Vietnam Opportunity Fund (VOF) MSCI Frontier Dragon Capital Type Asset value in 2016 (In million USD) Close974 end Asset value Growth in 2017 (In rate in million 2017 USD) 1553 59% VinaCapital Closeend 864 949 10% RBS ETF 415 683 65% download by : skknchat@gmail.com 10 11 12 Markets Index ETF Korea Investment Vietnam Securities Master Investment Trust Equity Balanced VanEck Vector Vietnam ETF Mutual Fund Elite Vietnam Phoenix Fund FTSE Vietnam ETF JPMorgan Vietnam Opportunities Fund Vietnam Holding Vietnam Emerging Equity Fund (VEEF) Andbanc Investment SIF - Vietnam Value and Income Portfolio Korea OpenInvestment end Trust Management Co 111 580 423% ETF 258 455 76% Openend Closeend ETF 351 445 27% 369 423 15% 248 304 23% Openend 159 239 50% Vietnam CloseHolding AM end PXP OpenVietnam AM end 146 220 51% 124 122 -2% Andbanc AM Openand SSIAM end 123 117 -5% VanEck Global PYN Duxton Am Deutsche Bank JPMorgan AM (Source: Fund’s website) 2017 is considered as the most successful year of the fund industry in the Vietnam market Many foreign funds continued to win big when investing in the real estate industry and leading companies, successful transactions have The 36% FTSE ETF funds, the VanEck Vector Vietnam ETF, even had a return of over 90% on FLC Faros Or Vietjet Airlines IPO, many funds have won over 50% of the investment in this business such as Goverment of Singapore (GIC) and Vietnam Enterprise Investments Limited (VEIL) This is just the beginning of 2017, opening the door for many divestments and equitization in the divestment plan of state- download by : skknchat@gmail.com owned companies, as cash flow from international investors turns in months Remainder of the year 2017, the most prominent is the KIM Vietnam Growth Securities Master Investment Trust fund poured more than $ 200 million in the last days of 2017, becoming the fourth largest fund in foreign investment funds in Vietnam.1 2.3 Assessing the statement of attracting foreign portfolio investment capital in the stock market of Vietnam 2.3.1 The achievements In the context of stock market in the region as well as the world in the dark period, stock market countries in the region have recovered from the previous economic crisis, the Vietnam stock market again began to show The signs of entering new growth period, together with the achievements of the Vietnam stock market in recent years  First, in recent years, the Vietnam stock market witnessed a lot of strong interest from the foreign cash flow, many investors in the world come from many countries besides the familiar investors from Korea or Japan The number of trading accounts increased by 16% over 2016, as well as the value of transactions increased, with the time to reach 10000 billion in just one session Based on these figures, we have shown that the Vietnamese economy is a reliable and potential investment attraction in the region  Secondly, the achievements of Vietnam stock market not only prove that Vietnam has the potential for economic development in the coming years, but also the confidence and satisfaction of international investors in administrative institutions There has been an increase in the law of the Vietnamese government, which shows that there has been an improvement in the administrative, judicial, information transparency as well as the business environment of Vietnam 2.3.2 The shortcomings Because stock market plays an extremely important role in the overall economy, Vietnam stock market is receiving a long-term and sustainable investment commitment from the international investment community It is necessary to keep Ndh.vn download by : skknchat@gmail.com this belief in the effort to improve the limitations and shortcomings that exist in the Vietnam stock market.:  Many economic cases related to Vietnam stock market were uncovered such as the company MTM fake papers to list on the UPCOM floor to fraud, causing hundreds of billion losses By the end of 2017, the misuse of money owned by customers of Vietnam Industry Securities Company (ISC) The cases directly related to Vietnam stock market not only caused damage to assets for foreign investors but also reduced the prestige of the Vietnam stock market in the eyes of foreign investors  Investment in equitization deals is always an attractive investment option for foreign investors, and the Vietnamese government has launched a divestiture plan over years ago By the end of 2017, 45 companies were approved for equitization, but the number of equitized firms was low, just over 50%.2  The political and economic environment has improved significantly, but according to Transparency International, the 2017 Corruption Perceptions Index of Vietnam, our country remains among the countries with high levels of corruption, ranked 107 / 180 countries, ranked after countries in the region such as Singapore, Thailand, Malaysia In a recent report by the Heritage Foundation on the 2018 Economic Freedom Index, Vietnam was only modestly ranked 141/180, lower than Laos (mostly unfree)  Foreign investors have difficulty in understanding the market and making investment decisions because of language barriers 2.3.3 Causes of the shortcomings After pointing out the limitations of the Vietnam stock market in attracting foreign porfolio investment, the thesis proposes the following reasons:  About the cause of economic cases occurring in Vietnam stock market, the main cause is that the supervision and management of the authorities have not been done closely, accurately and The lawsuits, such as the MTM case, show that the regulations, loose regulations and punishments are not satisfactory, causing Ndh.vn download by : skknchat@gmail.com many individuals to take advantage of their own interests, causing damage to property In the case of ISC Securities, this is also a weak point of the Vietnam stock market as the number of securities companies grows like "instant noodles" which makes the quality of professional and reputation of the company gender is not up to the requirements of customers, even exploit and exploit the belief of customers for the purpose of bad  On slow progress of capital withdrawal, this phenomenon is caused by many reasons The first is that enterprise valuation is difficult because many largescale enterprises, the property of many companies are real estate, continuous fluctuations and no basis for pricing, causing many investors afraid of In addition, the policy for equitization is still inadequate between practice and theory A decree on organization and operation regulations of a number of large corporations and corporations has not yet been issued Legislation is underway From the perspective of capital contribution, share purchase or corporate governance, there are many interrelated legal frameworks, even partially overlapping, such as the Enterprise Law, SOE equitization laws, Officials and civil servants and the Anti-Corruption Law  The scale and quality of goods on the market is limited Currently, in addition to the stock market, investors not have any options other than derivative stock and warranted security will be deployed in early 2018 Because there are not many such options, copper There will be no other investment plans to minimize the risk for investors ( Le Van Chau 2012)  Many companies not provide information in English, or other popular foreign languages, making it difficult for foreign shareholders to get information about the operation of the company in general, the shareholders meeting in particular Notably, there are cases of foreign shareholders attending the meeting but not approved by the enterprise Domestic enterprises still follow a backward accounting system, not with the "language" with many countries in the world are causing many foreign investors are afraid to put capital into download by : skknchat@gmail.com CONCLUSION FOR CHAPTER By studying and researching Vietnam stock market as well as investment situation of foreign investors in Vietnam stock market recently Vietnam stock market analysis is in a positive development with strong interest in both quality and quantity from foreign investors Vietnam stock market in the past year, achieved more success than limited The author himself has concluded some causes for these limitations through the research of many preceding scholars, to continue to promote such positive results, the Government, people and businesses Vietnam should strive to its best to achieve the next success in 2018 CHAPTER 3: SOLUTIONS FOR ATTRACTING AND PROMOTING FOREIGN PORTFOLIO INVESTMENT CAPITAL IN VIETNAM STOCK MARKET 3.1 Development strategy of Vietnam stock market With potential growth has not been fully disclosed, Vietnam stock market is expected in 2018 will grow strongly The development direction for stock market download by : skknchat@gmail.com will be consistent with the general trend of the world and the current economic development in Vietnam Decision No 252 / QD-TTg dated 01/03/2012 of the Prime Minister approving the Vietnam stock market development strategy for the period of 20112020 clearly states the following main contents :  First, building and developing stock market in line with the socio- economic development of the country, forming a synchronous and integrated stock market system in the whole financial market of the country  Secondly, develop, expand the organized market, narrow the free market while paying special attention to quality and safety of the market, step by step approaching common practices and International standards  Third, develop the stock market in a way that is aligned with the reform and alignment of the SOE sector, creating incentives for enterprises and economic sectors in terms of both financial capacity and corporate governance  State management by legal instruments, policies to support, facilitate the stock market stable development; To promote the role of self-governing organizations and associations in order to ensure legitimate rights and interests and encourage the participation of stock market participants In addition, the Decision sets out common goals for sustainable development:  Develop stable, solid stock market, complete structure with many levels, synchronous supply-demand factors; increase the scale and quality of operations, diversify products and operations, ensure effective market operation and become the important medium and long term mobilization channel of the economy  Ensure openness, transparency, corporate governance standards and practices, strengthen management capacity, monitor and enforce enforcement, protect investor interests, and market confidence  To actively integrate into the international financial market, step by step approaching common standards and international practices download by : skknchat@gmail.com 3.2 Solutions to attract and promote foreign portfolio investment in the stock market of Vietnam 3.2.1 Group of solutions for the Government First, although often adjusted, but in many cases, the law is still backward compared with reality This is due to the fact that the law is based on objective reality at a specific time / period and is stable, while objective reality is constantly changing As the concept of "offering securities to the public", "individual securities offering" is defined as inconsistent The concept of individual securities offering is recognized in Clause 12a, Article of the Law on Securities 2006 amended and supplemented in 2010 as follows: "Securities offering is the offering of securities for under one hundred houses Investors, not including professional securities investors and not using the media or the Internet " As a result, the law recognizes the signs of individual securities offerings reflected in all the following factors: (i) number of investors (less than 100 persons and no distinction for investors and (ii) mode of implementation (not using the media or the Internet to make offers) At the same time, the law does not provide a specific definition of public offering of securities, but only lists of cases that are deemed to be offering securities to the public in Clause 12, Article of the Securities Law Accordingly, the offering of securities shall be deemed to be a public offer made by one of the following means: (i) through the mass media, including the Internet; (ii) offer securities for a hundred or more investors, excluding professional securities investors; (iii) offering to an undetermined number of investors In addition, the Law on Securities also has certain points with the provisions of other laws such as the Law on Enterprises For example, while the Securities Act recognizes only two types of securities offering and public offering of securities, the Enterprise Law 2014 recognizes three types of share offerings (shares are one type securities, including offering private shares, offering to the public and offering to existing shareholders At present, the Vietnamese Accounting Standards System (VAS) has become obsolete in comparison with the common ground in the world VAS has not been download by : skknchat@gmail.com amended, supplemented and updated since the issuance of VAS so far, while the economy has been on the upswing, the process of international integration has been strong Exit some major shortcomings and limitations Vietnam has just issued 26 accounting standards, while the International Accounting Standards Board (IAS and IFRS) has more than 40 standards This means that there are many accounting standards that Vietnam has not yet issued, leading to the inevitable VAS can not reflect all the transactions of the economy Therefore, the addition and improvement of the VAS standard system not only helps to better manage the business but also helps foreign investors to have a good time in learning about Vietnamese enterprises Another problem is that penalties for violating individuals and organizations are not serious enough Administrative penalties are often insufficient, with penalties lower than those enjoyed by the offender To raise the rate of foreign ownership in Vietnamese enterprises, to narrow the scope of State-owned enterprises to hold 100% of capital or to hold controlling shares Two major issues in the implementation of Decree No 60 / The opening of the room for foreign investors, firstly when the law stipulates that the holding ratio of over 51% is considered foreign enterprises and treated as the same type of enterprise Secondly, if the business is multi-industry and there are some industries in the foreign ownership area, the room may not exceed the level applied previously Signing many business lines but focusing only on one or two of its strengths Therefore, it is difficult to determine whether a business is subject to restrictions or conditions Therefore, the agencies and agencies need to unify the legal documents to remove this difficulty These are the issues that the law needs to adjust to ensure the integrity of the legal system, ensuring the stock market can grow transparent and healthy Secondly, the state needs to develop an equitization plan in order to maintain the business well after the share sale and conversion This solution, apart from the highest aim, is to help state-owned enterprises replace poor management for highly qualified professionals and leaders from the enter- prises minus the flaws in the download by : skknchat@gmail.com negative and the corruption of old leaders or those with broad ties, with a loud voice but without the capacity to bring that state-owned enterprise up In order to achieve this goal, the state needs to allocate a separate agency, separate from other agencies, but recruited human resources must be qualified human resources from the authorities Other such as State Bank of Vietnam State Securities Commission, to plan equitization for these state companies This agency is subject to close scrutiny by not only inter-agency agencies but also economic security agencies to ensure that negative occurrences not occur Thirdly, it is recommended that the Ministry of Natural Resources and the Environment should soon study and set up a structure and plan for land price determination, at the same time inventory, manage and update the land status periodically and continuously for public they This does not only help state-owned enterprises and investors determine the value of land, which accounts for a large part of the assets of many existing SOEs The management and updating of the land status includes the current status of the local area of the land such as roads, electricity and water, infrastructure for user convenience, location of the piece land All information must be updated to be sufficient and accurate to the mass media, but must have a separate website, either a new website or the website of the Ministry of Natural Resources and Environment Meanwhile, the Ministry of Natural Resources and Environment, together with other relevant authorities, can invite experts from developed countries who have experience in this field to monitor and work with The solution to determine the land price will require a lot of effort and determination, but this is not only a solution for the securities industry in Vietnam but also affect many areas in the socio-economic country Fourth, coordinate with international organizations to organize seminars, investment forums at home and abroad to promote and exchange investment opportunities in Vietnam Build relationships with major media outlets in the region such as The Straits Times, Asian Wealth, Forbes Fifth, diversified financial products on Vietnam stock market Integrate with the trend of the world, together with the increasingly diverse and demanding of download by : skknchat@gmail.com investors both domestic and foreign The deployment of new products such as derivative market or Covered Warrants is extremely necessary 3.2.2 Group of solutions for businesses in the securities industry In addition to the role of the state in building the legal corridor as well as creating a favorable business environment Vietnamese companies, especially fund management companies and securities companies, must take full advantage of the responsibility of bringing Vietnam stock market up The following are solutions that businesses in the securities industry need to perform:  The public companies accept the authorization of the foreign investor for their custody member and allow for the SWIFT ballot, in lieu of the proxy attending the meeting of the foreign investor Public companies should jointly form a proxy form to attend the meeting and specify in the company's internal regulations on corporate governance, thereby helping foreign investors actively prepare delegation in time time and efficiency In order to facilitate foreign shareholders to vote at the AGM, the regulator should encourage public companies with large capital stock to have a high proportion of foreign investors in the structure of shareholders E-voting system of the Vietnam Securities Depository Center to gather shareholders' opinions  Apply the standard standard data IFRS international law IFRS is the standard data report of the main data mang of the international data, that is multiple of the family received and apply, the most most most most the business transaction transaction, fit with the national of the background business development development, field of market and market field on the level ThaiLand, Korea apply IFRS widely, and all the worries have been gone  Continue to restructure in securities companies, aiming to increase the quality and reduce the number of securities companies Promote the improvement of business processes, processes, risk control systems Improve the professional quality of the brokerage team In addition, improving the quality of information technology applied in the system of each company, ensuring fast data processing, full function when investors order download by : skknchat@gmail.com  Positive information disclosure of enterprises helps investors to know the prestige, reputation and potential of enterprises, thereby attracting large investors and reduce the cost of raising capital Information transparency also increases the efficiency of the issuer's business operations in a number of areas, such as: helping businesses choose the right investment project, creating a mechanism to supervise the managers in the enterprise and force managers to operate for the sake of shareholders CONCLUSION FOR CHAPTER After concluding the remaining constraints to attracting foreign porfolio capital into the Vietnam stock market, in Chapter 3, the thesis proposed solutions to solve them through two groups of solutions: one It is designed for government agencies, and is a solution for enterprises operating in the securities sector Both groups of factors must work closely together and determined together to expect the best results The solutions are mainly designed to address issues related to legal institutions, management capacity and openness of the state, transparency of information as well as professional competence for enterprises operating in the securities sector CONCLUSION 2017 is a year of sublimation for the Vietnam stock market, all economic indicators from micro to macro have achieved many important achievements download by : skknchat@gmail.com Vietnam stock market has become a bright star in the financial market as well as in the world One can not fail to mention the successes of the FPI inflows, which have positively influenced the economic development of Vietnam In the heart of the Vietnamese people who want to embrace these investment opportunities, students studying in Finance want to study and better understand the role of this flow of capital, as well as suggesting constructive ideas to contribute to the understanding of the Vietnamese students The author summarizes the main ideas of the thesis as follows: First, the thesis has set out the basic arguments for foreign porfolio investment, analyzing the fundamental aspects of FPI in terms of positive and negative Second, the thesis also investigated the situation of attracting foreign investment of countries such as Thailand, China and India to draw lessons for Vietnam in attracting FPI on stock market Thirdly, by examining the situation of attracting foreign capital on stock market from which draws the success as well as the limitation and causes the remaining negative aspects Fourth, after concluding the remaining limitations, the thesis proposed a number of recommendations to better implement the attraction of foreign investment into the Vietnam stock market With limited knowledge as well as little research experience, the author hopes that the thesis will contribute some part in attracting foreign porfolio investment capital on Vietnam stock market in the future download by : skknchat@gmail.com REFERENCES List of referencing Vietnamese documents Lê Văn Châu (2010), "Đầu tư gián tiếp nước vào thị trường chứng khốn Việt Nam", Tạp chí tài Nguyễn Quỳnh Chi & Lê Quốc Tuấn (2014), " Quản lý thu hút vốn đầu tư gián tiếp nước - Kinh nghiệm số quốc gia học cho Việt Nam" Tạp chí Chứng khốn số 194 Nguyễn Đơng Chiều (2012) , Thu hút quản lý vốn đầu tư gián tiếp nước ngoài: KInh nghiệm từ Trung Quốc, retrived : a < http://tapchitaichinh.vn/tai-chinh-quoc-te/thu-hut-va-quan-ly-von- dau-tu-gian-tiep-nuoc-ngoaikinh-nghiem-tu-trung-quoc-7860.html > Nguyễn Thanh Huyền (2015) Quản lý vốn đầu tư gián tiếp nước thị trường chứng khoán., Doctoral thesis Trương Thị Anh Thư (2017) Thu hút vốn đầu tư nước Thị trường chứng khốn Việt Nam Master's thesis Vũ Chí Lộc (2009) Giáo trình đầu tư nước ngồi Nguyễn Minh Phong (2008) Tác động hai mặt vốn đầu tư nước đến phát triển Việt Nam Tạp chí kinh tế số 16 Vũ Ngọc Thành (2008) Đầu tư phát triển quốc tế Bùi Kim Yến (2008) Giáo trình thị trường chứng khốn List of referencing English documents 10 Guluzar Kurt Gumus, A D (2013) The relationship Between Foreign Portfolio Investment And Macroeconomic Variables European Scientific Journal, Vol.9, No.34 11 .Waggoner John (2017, December 27).Field: Money Retrieved from Time: http://time.com/money/5075669/economic-trends-2018/ 12 Woods, John (2017, May 18) South China Post Retrieved from South China Post:http://www.scmp.com/business/money/markets- investing/article/2094850/these-five-super-trends-will-shape-future download by : skknchat@gmail.com 13 Foreign Portfolio Equity Investments, Financial Liberalization, and Economic Development, Review of International Economics, 9(4), 703-726, 2001 14 Kalliarekos Kosmo (2018) Private Equity in Asia : The trends to watch (U o Pennsylvania, Interviewer) Legislation document The Law on Securities No 70/2006 / QH11 was promulgated and came into effect on January 1, 2007 Law No 62/2010 / QH12 dated 24 November 2010 of the National Assembly amended and supplemented, effective from July 2011 Investment Law dated 26/11/2014 Prime Minister's Decision No 252 / QD-TTg: Approving the Vietnam stock market development strategy for 2011-2020 Decree No 144/2003 / ND-CP dated 28 November 2003 on securities and stock market replaces Decree No 48/198 / NDCP Resolution No 11 / NQ-CP dated 24/02/2011 of the Government on major measures to control inflation, stabilize macro-economy, ensure social security Decree No 42/2015 / ND-CP (Decree 42) on derivatives and stock markets dated 05/05/2015 Circular 09/2010 / TT-BTC dated 15 January 2010 Guidance on the disclosure of information on stock market Circular No 123/2015 / TT-BTC (Circular 123) dated 18/8/2015 guiding foreign investment activities on Vietnam stock market download by : skknchat@gmail.com ... like to select the topic "Attracting foreign portfolio investment in vietnam stock market" to analyze the status of foreign portfolio investment in the market Vietnam stock market from there to provide... thinking of attracting foreign capital into Vietnam stock market Allowing foreign ownership in local businesses is also a breakthrough to bring stock market Vietnam up from the marginal market. .. 2017, becoming the fourth largest fund in foreign investment funds in Vietnam. 1 2.3 Assessing the statement of attracting foreign portfolio investment capital in the stock market of Vietnam 2.3.1