BACHELOR THESIS Major International Business Administration Topic ENHANCING THE COMPETITIVENESS OF FINANCIAL ADVISORY SERVICES OF INVESTMENT BANKING DEPARTMENT AT THIEN VIET SECURITIES COMPANY TABLE O.
THEORETICAL FRAMEWORK FOR COMPETITIVENESS OF
General theory of competitiveness
The term "competition" has various interpretations, particularly in the context of business Initially rooted in the production of goods, the concept has evolved and gained clarity with the rise of the capitalist commodity economy As noted by C Marx (1978), this evolution reflects the complexities of economic interactions in a competitive market.
"Competition is a fierce battle between capitalists in order to compete for favorable conditions in the production and consumption of goods to obtain excess profits".
According to the British Business Dictionary (1992), competition is "a fierce, competitive battle between businessmen vying for the same kind of resources for the same kind of customers".
Business competition, as defined by the Vietnam Encyclopedia, refers to the competitive interactions among manufacturers, traders, and entrepreneurs within a market economy This competition is driven by supply and demand dynamics, aiming to secure the most profitable production, consumption, and market opportunities.
Competition is a crucial factor that compels businesses to strive for survival in the marketplace To enhance and secure their market position, companies must implement a variety of strategies An enterprise's competitiveness is demonstrated through its capacity to thrive and evolve within the market.
Competition in the market refers to the rivalry among economic actors—such as manufacturers and traders—aimed at gaining a competitive edge in producing and consuming goods and services The primary goal of this competition is to deliver greater added value to customers than rivals, thereby influencing their choice of products and services.
The term "competitiveness," originating from the Latin word "compete," refers to the ability of a sector, industry, or branch to effectively engage in market competition According to Flejterski (1984), competitiveness is defined as the capacity to design and sell goods at more attractive prices, quality, and features compared to those of competitors.
Competitiveness, as defined by the OECD (1992), refers to a country's ability to produce goods and services that can withstand international competition under favorable market conditions This capability not only enables the nation to meet global standards but also fosters an environment conducive to increasing real income and enhancing living standards for its citizens.
According to economist Michael Porter, the concept of competitiveness can be understood as the ability of a company to gain market share and generate profits above the current average profit.
The UK Department of Trade and Industry (2001) defines competitiveness as the capacity to deliver the appropriate goods and services with optimal quality, pricing, and timing.
Competitiveness in enterprises is defined as the ability to sustainably fulfill customer needs while generating profits (2008) Additionally, Reiljan (2000) introduced a conflict of interest perspective, highlighting the capacity to adapt to competitive environments passively, without necessitating significant changes or advancements.
According to Adamkiewicz-Drwiłło (2002), a company's competitiveness hinges on its ability to align its products with market demands and competitive pressures This involves optimizing the product range, ensuring high quality, setting appropriate pricing, and selecting the most effective sales channels and promotional strategies.
A country's competitiveness, as defined by Barker Kửhler in 1998, refers to its ability to produce goods and services that succeed in international markets under free and fair conditions This capability is crucial for sustaining and increasing the real incomes of its population over the long term.
Competitiveness is fundamentally linked to an organization's responsiveness to rapid market changes and its capacity to sustain its market position (Piccoli, 2005) Additionally, it encompasses the ability to generate sales and profit, as well as the capability to adapt and attract customers (Berger & Bristow, 2009).
In strategic management, a company's competitiveness is defined by its ability to generate a profit rate that exceeds the industry average Achieving an economic rate of return above that of its competitors signifies a competitive advantage in the market, highlighting that the core of competitive advantage lies in maximizing profit.
Competitiveness can be categorized based on various criteria, each with distinct levels It is primarily divided into perfect competitiveness, characterized by minimal government intervention and market dominance, and imperfect competitiveness, where government influence and market power are more pronounced Additionally, competitiveness encompasses both intra-industry and inter-industry competition, reflecting the different dynamics within and between industries Each classification of competitiveness corresponds to specific competitive characteristics.
Competitiveness in the service sector can be analyzed through both micro and macro perspectives At the macro level, factors such as high individual incomes, wealth accumulation, successful firm operations, and elevated employment rates play a crucial role Conversely, the micro level focuses on aspects like pricing advantages, service productivity, market share, and profit objectives.
The author’s research focuses on classifying competition according to various levels, aiming to identify the competitiveness associated with each competition type This study will explore key concepts of competitiveness, including national competitiveness, industry competitiveness, enterprise competitiveness, and the competitiveness of products and services.
Factors affecting competitiveness of services of a company
The competitiveness of products and services is influenced by various factors, making it essential to analyze these influences to propose effective solutions for improvement These factors can be categorized into two primary groups, which play a crucial role in shaping market dynamics and determining overall competitiveness.
● Group of external factors (objective factors) such as factors in the international environment, national economic environment, industry competitive environment.
● Group of internal factors (subjective factors) such as factors: finance, human resources, technology.
Globalization refers to the integration of national economies into a unified global economy, characterized by the seamless flow of goods, labor, and capital This process involves the removal of economic, cultural, and social barriers, leading to interconnected markets and production systems Essentially, globalization manifests in two primary trends: the globalization of markets and the globalization of production.
Market globalization, characterized by the exchange of goods and services between buyers and sellers, continues to shape economic development This trend influences the global landscape of products and services, impacting value creation activities and the strategic direction of businesses Additionally, market globalization presents significant opportunities for companies to enhance their competitiveness and advance their operational activities.
The globalization of services is significantly influenced by the digital revolution, the rise of emerging markets, and deregulation This process is accelerating at a rate of 9% annually, leading to the growth of an intangible economy centered around global service networks Technological advancements and the internet economy facilitate effective and cost-efficient service delivery through transparent information sharing As global human resources become increasingly skilled and knowledgeable, service businesses must deepen their understanding of diverse business environments in potential markets to enhance their competitive advantage.
Formulating a competitive strategy involves connecting a company to its environment within its industry, as highlighted by Porter (1985) Conducting a PEST analysis—examining Political, Economic, Socio-Cultural, and Technological factors—reveals the key influences on the industry and the businesses within it This analysis serves as a foundation for companies to develop effective strategies and establish competitive advantages.
PEST analysis, as described by Kotler (1998), is a strategic tool that helps businesses understand market dynamics, including growth opportunities and potential threats By utilizing this analysis, companies can identify opportunities, develop contingency plans, and align their strategies with the rapidly changing business environment (Byars, 1991; Cooper, 2000; Porter, 1985) The PEST model emphasizes the importance of adapting to fundamental changes that create uncertainty and impact organizational performance (Tsiakkiros & Pashiardis, 2002) It focuses on four critical factors: Economy, Politics, Socio-Cultural Environment, and Technology.
Economy: The competitiveness of a country, an industry, an enterprise or a product is greatly influenced by the economy in that country.
Economic factors such as growth rate, unemployment rate, inflation rate, and per capita income, along with shifts in business and political conditions, play a crucial role in shaping the business environment Favorable economic conditions stimulate production and business activities, leading to a stable and growing economy that enhances the material well-being of individuals This increased demand for goods and services motivates businesses to continuously improve the quality of their offerings to satisfy consumer needs.
The political-legal environment encompasses the stability of a country's government, prevailing political trends, and the regulations and laws that businesses must adhere to Additionally, it includes policies that can have both direct and indirect impacts on business operations.
The business environment is significantly shaped by the interplay between government and businesses, where regulations and policies play a crucial role Companies are influenced by overarching government policies as well as specific regulations tailored to their industry A politically stable environment, coupled with favorable regulations, enhances business development and boosts competitiveness.
The socio-cultural environment encompasses various factors such as social values, culture, lifestyle, attitudes, needs, and tastes, all of which can vary by locality and evolve over time These changes can create both opportunities and challenges for businesses, highlighting the importance of adapting to shifting socio-cultural dynamics.
The social environment significantly influences demographic indicators, which play a crucial role in formulating strategies that establish competitive advantages for products and companies Key factors include population dynamics, age and gender distribution, education levels, geographical dispersion, and income distribution.
Analyzing technological factors involves understanding and forecasting the evolution of production technologies, information systems, and new materials, as well as technology transfer From a business standpoint, leveraging technology can create competitive advantages across various sectors The advancement of technology significantly influences industries, often leading to the emergence of entirely new markets.
From a commercial perspective, Michael Porter (1990), a leading researcher on competitiveness and competitive strategy, said that competition is "a battle between enterprises, economic organizations and industry to win customer acceptance and loyalty”.
The Five Forces Model, developed by Porter in 1980, enables companies to evaluate the attractiveness and potential profitability of an industry by analyzing its competitive dynamics This framework assesses the relative strength of various factors, including existing competitors, the threat of new entrants, the availability of substitute products, the bargaining power of customers, and the influence of suppliers within the industry.
Figure 1.1: M Porter's 5 competitive forces model
Competitors in an industry are businesses or individuals that offer similar products, target the same customer segments, and fulfill identical customer needs, representing the most significant competitive force Competition is ongoing and dynamic, intensifying with more competitors, higher market exit barriers, undifferentiated products, easy substitutes, and lower customer loyalty Various forms of competition exist, including pricing, product features, quality, services, and promotions To maintain a competitive edge, businesses must continuously enhance their competitiveness, as competitive advantages can quickly diminish.
Potential competitors are individuals or businesses that may not currently compete in an industry but have the potential to enter it when opportunities arise The level of competition from these potential entrants is significantly influenced by barriers to entry, which include factors such as customer switching costs, product loyalty, and the established brand reputation of existing companies In highly profitable industries with low barriers to entry, new competitors can easily emerge, posing a threat to established firms Conversely, when barriers to entry are high, existing companies enjoy a competitive advantage, reducing the likelihood of newcomers disrupting the market (Porter, 2008).
Criteria for measuring the competitiveness of products/services
1.3.1.1 Number of deals and total deal value
The number of deals completed by a company over a specific period is a key indicator of its transaction activity, particularly within the investment banking department where financial advisory services are central A higher volume of deals not only enhances the company's revenue potential but also reflects the total deal value, which represents the funds clients seek to raise or the value of acquisitions Both the number of deals and total deal value are directly proportional to revenue generation, making them critical drivers of financial success in the investment banking sector.
Revenue is a key indicator of a business's performance over the years, clearly indicating whether the company has experienced favorable financial conditions Profit, which represents the difference between income and expenses during a specific period, serves as a crucial measure of the economic efficiency of an enterprise's operations The stability of profit growth is essential for the sustainability and development of a business's products or services, making it a vital factor in assessing the competitiveness of enterprises.
Market share represents the segment of the market that an enterprise controls, reflecting the proportion of products and services it sells compared to the overall market consumption It serves as a key indicator of an enterprise's competitiveness, allowing for direct comparisons between its performance and that of its rivals A business that successfully maintains or expands its market share demonstrates its competitive strength within the industry.
Price is the cost that customers pay for services, significantly influencing their spending decisions and reflecting the value businesses aim to convey It serves as a benchmark for competition among companies, making price optimization essential for gaining a competitive edge By offering reasonable prices without compromising quality, businesses can attract more customers while ensuring sustainable benefits for both the company and its clientele.
Quality, as defined by the International Organization for Standardization (ISO), encompasses the properties and characteristics of a product that fulfill stated or implied needs Ishikawa (1990) emphasizes that quality involves satisfying market demand while minimizing costs A product is deemed low quality if it fails to meet customer needs and desires, rendering it less competitive The journey of quality begins with the value creation process and continues until the product is introduced to the market Enhancing product quality not only boosts market appeal but also solidifies brand reputation and improves overall business efficiency.
Service quality encompasses the essential attributes that define and uphold the standards of financial advisory services According to Gronroos (1990), competing through service is crucial, highlighting the distinction between businesses that rely solely on physical products and those that prioritize service elements By delivering high-quality products and services that enhance customer value and experience, businesses can significantly improve their competitive edge in the market.
Service quality encompasses various factors including accuracy, timeliness, efficiency, and credibility Enhancing the quality of financial advisory services is crucial for economic development, as it boosts the competitiveness of advisory firms and strengthens the financial capabilities of businesses seeking consulting assistance.
The quality of financial advisory services is shaped through a comprehensive process that includes initial meetings, relationship building, collaboration, and ongoing support for clients To enhance the quality of these services, it is crucial to invest in the expertise of personnel while also emphasizing the importance of the process, time management, and key touchpoints with clients.
Service differentiation significantly impacts service quality by highlighting the unique attributes of a company's offerings compared to its competitors This strategy targets specific customer groups who value the distinctiveness and effectiveness of the service in fulfilling their needs Factors such as product quality, technological innovation, reliability, brand image, company reputation, durability, and customer service play a crucial role in developing differentiated services that stand out in the market.
Service differentiation refers to the unique qualities of a company's offerings that set them apart from competitors in the market This strategy targets specific customer segments that value the distinctiveness and effectiveness of the service in fulfilling their needs Key factors contributing to service differentiation include product quality, technological innovation, reliability, brand image, company reputation, durability, and the level of customer service provided.
Promotional activities encompass all efforts by an organization to enhance its brand visibility, including television and radio advertising, personal selling, and public relations through newspapers and media Sponsoring events is another effective strategy to gain prominence among customers The primary objectives of these promotional efforts are to boost product sales and raise brand awareness The five essential methods of promotion are personal selling, advertising, direct marketing, sales promotion, and public relations.
Distribution involves the selling and delivery of products and services from manufacturers to customers, ensuring that companies can effectively reach their target market This process includes moving goods and services through various channels to different markets, placing products in locations where demand exists and where customers find it convenient to purchase Proper distribution planning is essential for maximizing sales and customer satisfaction.
In today's competitive market, customers have numerous choices and can quickly switch between brands, often not visiting production sites unless they are loyal to a specific brand Therefore, marketers and producers must ensure their products and services are available in various convenient locations, making it easier for customers to make purchases from wherever they are.
The importance of enhancing the competitiveness of services
Competitiveness is essential for the development and revenue generation of products and services within an enterprise According to Barney (1991), establishing entry barriers is crucial to prevent competitor imitation and to leverage firm resources for maintaining service competitiveness In today's highly competitive industry landscape, competitive pressures significantly influence business operations and strategies, affecting a company's offerings While enterprises may have developed competitive advantages over time, sustaining this competitiveness amidst market fluctuations is critical Therefore, actively seeking and implementing solutions to enhance competitiveness is vital for the survival and growth of businesses.
1.4.1 Enhancing competitiveness to survive in a fiercely competitive environment
In the past 25 years, Vietnam has evolved from a low-income nation to one of the world's fastest-growing economies, with GDP per capita increasing nearly ten-fold from 1996 to 2021, fueled by a young population and a burgeoning middle class This economic growth has been accompanied by a significant rise in merger and acquisition (M&A) activities, spurred by advancements in equitization and market liberalization, alongside favorable regulations for foreign investors.
Vietnam's M&A market has evolved significantly since the late 1990s, now witnessing over 500 transactions annually In the past five years, 62 of these deals have exceeded $100 million, indicating a trend towards larger transactions Despite existing challenges, the future of M&A activities in Vietnam appears promising, particularly with the easing of border restrictions and the country's progress towards post-pandemic recovery.
From 2000 to 2013, Vietnam's financial advisory services experienced significant growth, transitioning from a mere handful of deals annually to an average of over 150 mergers and acquisitions (M&A) per year between 2005 and 2013 This surge in M&A activity attracted numerous companies to establish or expand their services within the Vietnamese market.
The 2014-2021 period experienced record-breaking financial activities
The market for M&A and financial advisory services is becoming increasingly competitive, with participants ranging from small boutique investment banks to large international firms The annual average deal count has surged more than three-fold to over 450, reflecting the growing demand for these services As more companies enter the sector, domestic competition has become more diverse and complex, challenging local firms to compete not only with each other but also with well-established international corporations that possess significant financial resources, a strong global reputation, and a team of experienced professionals.
1.4.2 Enhancing competitiveness for sustainable development
Vietnam, a rapidly developing nation with the 13th largest population globally, has seen significant growth in its financial services sector, particularly in financial advisory services Despite this progress, the market remains relatively modest in scale compared to other regional countries While the size and number of transactions in Vietnam are still limited, there is a noticeable trend of gradual increase over time.
Vietnam continues to demonstrate robust economic growth within the region, driven by its strategic geographical location and favorable political and social environment The financial market presents numerous opportunities for expansion, supported by a young population and significant investments Additionally, the mobilization of social forces to invest in targeted economic sectors and core businesses further enhances the country's growth potential.
To remain competitive in the long term and effectively tap into market potential, a company must implement a comprehensive long-term development strategy that leverages its existing business strengths while addressing and overcoming existing limitations.
To thrive in the highly competitive financial advisory service market, Thien Viet Securities must swiftly enhance the competitiveness of its financial advisory offerings.
Solutions to enhance competitiveness of service
1.5.1 General solutions to enhance the competitiveness of service
Service quality is the extent to which an organization meets customer expectations, allowing it to stand out from competitors and build a loyal clientele Ongoing enhancements in the quality and reliability of products or services can lead to a sustainable competitive advantage.
To enhance service quality, companies can implement various strategies aimed at both qualitative and quantitative improvements Key solutions include boosting customer satisfaction and minimizing service delivery times, which collectively contribute to a more effective service experience.
Pricing strategies are essential methodologies that businesses employ to establish the prices of their products and services While pricing indicates the monetary charge customers pay, a product pricing strategy defines the process of determining that price Various pricing strategies exist, with some of the most prevalent options being available for businesses to consider.
A distribution strategy is essential for delivering products and services to customers effectively, ensuring repeat business through accessible purchasing options Organizations must evaluate cost-effective distribution methods that enhance profitability while potentially employing multiple strategies to cater to diverse target audiences For instance, a product may perform better online for one demographic while appealing to another group through mail-order catalogs.
1.5.1.4 Competing by sales & promotion strategy
Sales promotion is a strategic marketing approach that employs short-term initiatives to boost product demand and enhance sales This tactic is often utilized to launch new products, clear out existing inventory, attract new customers, and temporarily increase sales figures There are five key sales promotion strategies to consider.
1.5.2 Solutions to enhance service competitiveness of a company
Service quality is crucial for businesses to effectively compete in the market It serves as the foundation of any service-oriented enterprise To enhance service quality, various strategies can be implemented, enabling service organizations to achieve their objectives and stand out from competitors.
To enhance service quality and encourage repeat business, it is crucial for companies in the service industry to offer timely and flexible advisory services By analyzing and reducing the time taken from receiving customer requests to fulfilling services as promised, businesses can significantly improve their competitive edge.
Effective customer service is crucial as it serves as a vital communication link between businesses and their clients By establishing a professional customer care channel, companies can alleviate the burden on their core staff Additionally, systematic customer care fosters strong, long-term relationships with customers and partners, ultimately leading to increased revenue and valuable insights for the business.
To strengthen their future business opportunities, service companies should consistently expand their network of partners and experts A robust network serves as a valuable resource for potential deals, particularly for financial advisory services, where partners act as essential providers By fostering these connections, companies can enhance their service offerings and increase their competitive edge in the market.
Promotion plays a crucial role in attracting customers to a business's products and services, focusing on research and marketing efforts Even businesses with high-quality offerings can struggle to compete and generate revenue if they lack visibility among potential customers To enhance sales promotion for services, companies can implement various strategies to boost their market presence and engage their target audience effectively.
Media advertising: Strengthening communication, advertising on the media, mass information to spread the brand, be known to more people.
Public relations: Actively carrying out community and social activities, participating in events to build a good image to the public, such as charity activities,
1.5.2.3 Standardizing processes by implementing innovative technology
Standardizing work processes establishes a systematic foundation that enhances service quality consistency within a company By implementing standardized procedures, businesses can boost employee productivity and minimize waste on non-essential tasks Additionally, the adoption of innovative, high-tech tools for digitizing and optimizing these processes can significantly improve service competitiveness.
1.5.2.4 Improve the quality of human resources
Human resources are a critical concern for every business, serving as a decisive factor in all company activities To enhance competitiveness, businesses can implement various measures to optimize their human resource management.
Effective recruitment is crucial for ensuring a high-quality and sufficient workforce, as it significantly impacts the future quality of an enterprise's human resources Managers must prioritize this initial stage to attract truly capable individuals, forming a solid foundation for developing a skilled workforce within the organization.
Training is a crucial activity that enhances employees' skills, enabling them to perform their jobs more effectively It plays an essential role in improving the quality of human resources within an organization The primary objective of training is to elevate the professional qualifications and work habits of employees, allowing organizations to optimize their existing workforce for better business performance.
Employee welfare encompasses various forms of insurance and policies related to health, safety, and remuneration Beyond the legal entitlements, businesses can create tailored welfare and remuneration strategies that align with their unique capabilities and characteristics By prioritizing employee welfare, companies not only enhance the quality of life for their staff but also foster a work environment where employees can concentrate better and feel motivated to contribute more effectively to the organization.
ASSESSING REAL SITUATION OF THE COMPETITIVENESS OF
Overview of Thien Viet Securities and Investment Banking Services
2.1.1 Introduction of Thien Viet Securities
2.1.1.1 Formation and Development History a Formation
Established in 2007, Thien Viet Securities (TVS) is a fully licensed independent investment bank in Vietnam, committed to international standards and catering to a diverse clientele Our comprehensive financial services encompass investment banking, brokerage, principal investment, and research, ensuring we meet the varied needs of our clients Since February 2007, TVS has been publicly traded on the Ho Chi Minh City Stock Exchange (HoSE) under the ticker symbol “TVS.”
● TVS’s headquarter is in Hanoi & Branch in Ho Chi Minh City
● The first trading day at Hanoi Securities Trading Center: 05-02-2007
● The first trading day at the Ho Chi Minh City Stock Exchange: 09-02-2007 b Development history
● 2006: TVS was established in December 2006 in Hanoi with charter capital of VND36 billion
● 2007: HCMC Branch was established, and charter capital increased to VND430 billion
● 2010: TVS became the first and only investment bank in Vietnam to receive funding from IFC, a member of World Bank
● 2011: TVS won the Asset Magazine’s Deal of the Year award for its Diana
- Unicharm deal, where TVS served as Diana shareholders’ exclusive financial advisor
● 2015: TVS bought 99.2% of An Phuc Securities Investment Fund Management Company and established Thien Viet Asset Management Company (TVAM), with the charter capital increased to VND476 billion
● 2016: Thien Viet Growth Fund (TVG1) was mobilized by and listed on HOSE with a total value of VND150 billion Charter capital increased to VND534 billion
● 2020: TVS increased ownership of TVAM to 99.8% and TVAM’s charter capital to VND125 billion Charter capital increased to VND982 billion
Founded by a group of successful entrepreneurs
Since the inception of the Doi Moi era, visionary founders in Vietnam have established, nurtured, and overseen numerous businesses, many of which have become iconic in industries like banking, media and entertainment, technology, and consumer goods.
Leading local merchant investment bank
TVS is a dynamic full-service investment bank headquartered in Hanoi and Ho Chi Minh City, committed to assembling a talented and innovative team to navigate Vietnam's competitive financial landscape Our primary focus is on prioritizing client interests while adhering to the highest standards of integrity and professionalism.
Focus on fostering a culture of creativity and innovation
TVS management aims to establish a long-term, integrated financial platform that delivers exceptional returns for shareholders while nurturing a culture of creativity and innovation among core teams We are committed to investing in physical infrastructure and our workforce, as well as exploring a wide range of capital market opportunities in Vietnam.
Source: Company’s internal document a Board of Directors b Management Team
Thien Viet Securities aims to become the premier investment bank in Vietnam, committed to upholding both international and local standards and regulations The firm offers a comprehensive suite of services to both domestic and international clients, including investment banking, asset management, research, brokerage, and treasury solutions.
Principal Investment services The company encourages an entrepreneurial mindset, extensive training and mentoring and a culture of giving back. a Investment Banking
Thien Viet Securities' Investment Banking department offers top-tier advisory services for mergers, acquisitions, financing, and various transactions Our dedicated team provides customized Corporate Finance guidance, supported by a robust due diligence process We thoroughly assess our clients' needs, develop business models, and evaluate each company's developmental stage and capital requirements before delivering strategic advice.
Thien Viet Asset Management (TVAM), established in June 2015 and a 99% subsidiary of Thien Viet Securities (TVS), specializes in Closed-end Funds and Managed Accounts The Fund aims for long-term capital growth, maximizing investor profits while outperforming all Vietnam indexes To achieve these goals, TVAM invests in both listed and unlisted securities of Vietnamese companies with strong growth potential.
TVAM currently oversees two funds, with assets under management exceeding VND 1,200 billion in equity and VND 500 billion in fixed income Our investment strategy emphasizes a holding period of 1-2 years for stocks, prioritizing companies that demonstrate sustainable long-term growth As value investors, we concentrate on identifying robust businesses that are available at reasonable valuations.
TVS Brokerage Service includes two sub-services: Institutional Client Group (ICG) and Retail Brokerage
● Institutional: TVS reestablished the Institutional Client Group (ICG) in early
In 2019, ICG was established to cater to institutional clients looking to invest in Vietnam The firm primarily focuses on offering brokerage services and research tailored for foreign funds, while also extending its expertise to family offices and local institutions.
● Retail: The Retail Brokerage department provides brokerage services to domestic retail customers The team assists domestic clients who wish to trade Vietnamese listed equities.
● Research: TVS Research Division comprises competent analysts with extensive expertise in asset management, research, and investment banking.
This diverse background enables TVS to have not only a broad view, but also an in-depth understanding of the macro economy and company prospects
The Treasury department primarily engages in trading fixed-income financial instruments such as deposit certificates and bonds, while also offering margin lending services and advances to investors Additionally, it provides forward products and interest products to enhance investment strategies.
Thien Viet Securities employs investment principles shaped by the Investment Committee and a dedicated on-the-ground team Our Disciplined Value Investment Approach, which combines a top-down macro perspective with bottom-up stock selection, has helped to minimize the impact of market volatility on our assets under management (AUM), particularly in the dynamic frontier market of Vietnam.
● Total asset under management (AUM): USD 52M
Below are companies that TVS has invested in:
Table 2.1: Thien Viet Securities' portfolio companies
2.1.1.5 Business performance a Historical income statement
Table 2.3: Company’s income statement analysis
Between 2018 and 2021, Thien Viet Securities experienced significant revenue growth, with a notable 49% increase in 2020 following a 13% decline in 2019, and a further 35% rise from 2020 to 2021, nearly doubling its revenue over the period While the company's operating costs also followed an upward trend, they grew at a slower rate, with a 17% decrease in 2019, followed by increases of 24% and 19% in 2020 and 2021, respectively This effective management of expenses allowed the enterprise to achieve a profit increase from 2017 to 2021, as revenue consistently outpaced total expenses.
Gain from financial assets recognized through profit/loss
Interest on investments held to maturity
Interest on loans and receivables 21,153 24,138 21,381 29,872
Revenue from underwriting, securities issuance
Revenue from financial advisory services
The revenue structure of the securities company reveals that over 55% of its total revenue is derived from financial assets, with interest on investments held to maturity contributing approximately 20% Additional revenue sources include interest on loans and receivables, securities brokerage, financial advisory services, underwriting, securities issuance, and profits from other activities Notably, revenue from financial advisory services has seen a significant decline, dropping from 10.8% to just 1% of total revenue.
2.1.2 General information of Investment Banking Department
TVS’ Investment Banking team offers customized Corporate Finance advisory services, leveraging a robust due diligence process We assess our clients' requirements, develop business models, and analyze each company's developmental stage and capital needs to deliver informed advice.
Investment banking division has a total 11 employees
The division’s structure is as below:
Figure 2.2: Investment banking department’s organization structure
TVS advises both financial and strategic investors to acquire the best companies and help the best companies find the right partners for their business.
The company helps companies raise equity and debt financing including private placement to strategic and financial investors
As an expert in sell-side advisory, TVS has been working with founders and financial sponsors to maximize their return for a sale transaction
TVS advises companies on how to restructure their capital structure and provide continuous support along their restructuring process
In the Investment Banking Division at TVS, a unique approach is taken by not only providing financial resources to potential companies but also offering strategic guidance, human capital support, and relationship management This comprehensive assistance enables TVS to foster growth and development in the companies they invest in, setting them apart from other investment banking divisions.
Associate Analyst Intern resources We commit to accompany companies in the long term, together grow the business and make the vision and mission come true.
Table 2.5: Investment banking department’s organization structure
Revenue from financial advisory services
Cost from financial advisory services
Factors affecting the competitiveness of Investment Banking Services at
Globalization has created significant opportunities for the financial industry, driven by favorable policies and incentives Since the 1980s, the sector has transformed due to diversification spurred by deregulation As large international mergers influence domestic industry structures, national governments often implement policies to mitigate competition among local firms The removal of transaction restrictions and the consolidation of major financial entities have fostered a conducive environment for the growth of financial service companies in Vietnam.
The financial advisory services sector, particularly in the M&A environment, shows robust growth potential A significant deregulation measure enacted in May 2018 increased the asset threshold for banks subject to stringent supervision from $50 billion to $250 billion, easing regulatory burdens Currently, M&A activity is accelerating compared to last year, indicating a vibrant market Additionally, financial companies outside the banking sector are emerging as attractive avenues for growth and high returns.
1 Core Business Expansion Many smaller banks with traditional lending operations are growing because of the expansion of their loan book, an extension of their deposit base, and improvements in customer service.
2 Strategic Acquisitions M&A is a potential growth opportunity for smaller banks We believe growth by acquisition is a positive, long-term strategy for smaller banks looking to extend their franchise and diversify geographically Currently, the Fund is focused on owning banks that have had a successful track record of buying other banks.
3 Regulatory Easing The regulatory environment for acquisitions is likely to remain favorable The Federal Reserve recognizes that larger organizations are better able to withstand economic downturns, and the sentiment favoring industry consolidation has improved.
In 2021, Vietnam achieved a GDP growth rate of 2.6% despite the challenges posed by the fourth wave of Covid-19 This marks the second consecutive year of positive economic growth for the country, demonstrating resilience in the face of ongoing disruptions caused by the pandemic.
In 2021, international trade and foreign direct investment (FDI) were pivotal for Vietnam, contributing to a trade surplus of USD 4.08 billion driven by a swift rebound in global demand While FDI disbursement slightly declined by 1.2% year-on-year to USD 19.7 billion, FDI registration demonstrated robust growth, increasing by 9.2% year-on-year to reach USD 31.2 billion.
Vietnam has received continuous FDI inflow over the period from 2014 to
2019, which is a major contributor to the financial especially M&A market
Vietnam ranks fourth in Southeast Asia for accumulated foreign direct investment (FDI) inflows, following Thailand, Indonesia, and Malaysia Notably, Vietnam has demonstrated a consistent growth pattern, being the only country in the region to experience continuous increases in FDI inflows from 2014 to 2019.
Figure 2.4: World’s top 20 FDI inflow host economies
In 2019, Vietnam ranked fourth among developing economies in East Asia for foreign direct investment (FDI) inflows, trailing only China, India, and Indonesia This surge in investment has led to a significant demand for financial services, particularly in areas such as mergers and acquisitions (M&A) and fundraising, which Thien Viet Securities is well-positioned to offer to its clients.
The signing of the free trade agreement of Vietnam in 2020, such as the EU- Vietnam Free Trade Agreement and the Regional Comprehensive Economic
Partnership, as well as the implementation of China Plus One strategies by multinational corporations, have all accelerated the M&A market, opening opportunities for Thien Viet Securities
Vietnam's stable political environment and supportive government policies foster a conducive atmosphere for business growth In recent years, the country has implemented various promotion programs and regulations aimed at driving digital transformation, focusing on three key pillars: the digital economy, digital society, and digital government.
Between 2005 and 2013, Vietnam experienced a surge in mergers and acquisitions (M&A) driven by market liberalization and a robust regulatory framework The implementation of the 2005 Enterprise Law and Vietnam's accession to the World Trade Organization (WTO) in 2007 facilitated open market access for foreign investors, establishing one of the most progressive market access programs globally.
After that stage, Vietnam’s financial advisory service landscape witnessed a period of Record-breaking deal flow (2014-2021), due to the important Key drivers regarding laws as:
● Favorable regulation and market access for foreign investors: The 2015
Law on Enterprises and Law on Investment allows foreign investors to own up to 100% of equity in listed companies in Vietnam, except for ones constrained by:
○ Foreign ownership restrictions, as set out in commitments to international treaties
○ Voluntary limits imposed by shareholders
● Vietnam’s participation in major free trade agreements such as the EU-
Vietnam Free Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Vietnam boasts a high rate of personal technology use, with 61.3 million smartphone users as of May 2021, ranking among the top 10 countries globally According to Appota's 2021 report, approximately 70% of the population utilizes mobile phones, and 64% of subscribers have access to 3G and 4G networks The demand for technology products is rapidly increasing as Vietnamese people leverage these tools for work, study, and entertainment With a young population that embraces technology and adapts quickly to trends, Vietnam is positioned as a dynamic market for personal tech usage.
In Vietnam's diverse socio-cultural landscape, customers are exhibiting increasingly complex needs, leading to the emergence of numerous startups and innovative business models This shift has created significant investment opportunities, characterized by high capital demand, which presents a promising landscape for both local and international financial services, such as Thien Viet Securities.
In recent years, Vietnam has made significant strides in science and technology development, reflected in its improved global innovation index ranking These advancements have played a crucial role in the country's industrialization and modernization efforts, enhancing international integration and boosting economic productivity and quality Furthermore, these achievements contribute to national defense and security while improving the overall quality of life for its citizens, positioning Vietnam as a rising force on the global stage.
According to the survey results of the Ministry of Science and Technology in
In 2018, approximately 30% of enterprises engaged in technology innovation activities, with around 4,000 creative startups actively operating (Viet, 2019) Notably, the participation of enterprises in technology innovation within the industry and trade sector has been on the rise.
The tools that Thien Viet Securities adopted to enhance the competitiveness of financial
of financial advisory services in the period of 2019 - 2021
Thien Viet Securities offers specialized financial advisory services tailored specifically for technology companies and startups, distinguishing itself from competitors in the market With years of experience investing in startups, Thien Viet Securities has developed significant expertise in the technology sector Notably, the company has made investments in leading technology startups, including Momo in 2012 and Finhay, showcasing its commitment to supporting innovative enterprises.
Since 2017, Thien Viet Securities has significantly expanded its network, establishing strong relationships with numerous technology companies as both customers and partners By 2020 and 2021, the firm had successfully engaged with over 100 technology companies across various stages of development, ranging from startups to well-established industry leaders.
Table 2.11: Thien Viet Securities’ network
Number of technology companies in the network 50 70 120
Thien Viet Securities has developed strong expertise in technology companies, offering in-depth financial consulting and assessment capabilities tailored for startups Unlike traditional firms, these tech startups leverage advanced technology to address market challenges, attract customers, and expand their operations The Investment Banking Department is acutely aware of the unique pain points and urgent capital needs of these companies, allowing them to create service packages that align with clients' financial situations Their streamlined processes minimize cumbersome procedures, ensuring a quick and efficient experience In addition to core consulting services, Thien Viet Securities actively connects technology firms and nonprofit clients with potential partners and investment funds, enhancing their growth opportunities.
Figure 2.7: Thien Viet Securities’ network
Thien Viet Securities adopts a flexible pricing strategy for its financial advisory services, aligning its fees with those of competitors in the market The consulting fees, ranging from 1-3% of the deal value, are tailored to individual customers, with discounts offered based on the significance of the relationship and the deal This adaptable approach is particularly suitable for a company with a smaller market share, as it lacks substantial bargaining power However, this strategy may also present challenges, potentially lowering revenue in the Investment Banking sector compared to a fixed fee model.
Building the reputation of the service
Founded in 2006, Thien Viet Securities has established a strong reputation in financial consulting through its Investment Banking Department, which has successfully executed 38 deals valued at over 1 billion USD The company's credibility is underscored by its impressive track record and successful investments, collaborating with major clients like Diana and Unicharm, as well as prestigious global partners such as Goldman Sachs This proven success has solidified Thien Viet Securities' standing in the financial advisory service industry.
The deal Diana - Unicharm that TVS successfully executed won the award
“Deal of the year” from the Asset Magazine in 2011, which has set TVS aside as the Vietnamese prominent financial advisor with proven experience in international M&A.
Table 2.12: Thien Viet Securities’s Investment Banking track record
Stonehead is a publicly listed company in Vietnam, recognized as the second largest player in the high-growth disposable paper market With a market capitalization of USD 40 million, it competes effectively in the industry, positioning itself as a key player alongside Unicharm, Asia's leading brand in this sector.
Goldman Sachs is a prominent investment banking and securities firm, while Unicharm, established in 1961, has become the world's third-largest manufacturer of feminine care, sanitary, and pet care products, holding a 7.2% market share.
Transaction background The completion of this transaction enabled TVS’s client to fully control the company and via this effectively executed the Group’s strategy for the Vietnam market
By early 2007, TVS was appointed as an exclusive investment bank for the equity worth over USD 10M in Diana for Goldman Sachs
With the acquisition of Diana, Unicharm aimed to gain the
#1 market share in Vietnam by leveraging its product development and execution capability
Transaction highlight TVS successfully negotiated with multiple domestic and foreign shareholders under a short deadline while maintain high client confidentiality
The transaction emphasizes TVS’s status as the pioneer financial advisor in Vietnam market standards while committing to its local client
One of the largest deals ever in Vietnam’s M&A history with the transaction publicly disclosed at USD
Improve the quality of human resources
Thien Viet Securities prioritizes enhancing the quality of its human resources by annually organizing various training programs aimed at improving employee qualifications and skills These initiatives include expert-led short-term training sessions, seminars focused on current market trends, and practical experiences at affiliated companies within the Investment Banking Department and across the organization.
The company defines the application of technology to business operation and management including three levels of digitization:
Information digitization represents the foundational level of technological adoption, and most businesses in Vietnam have successfully achieved this stage This involves utilizing computer informatics for essential daily operations, such as data entry and information organization Thien Viet Securities and Investment Banking Department has been at the forefront of this transition, having digitized its information processes since its early establishment.
In Vietnam, process digitization is predominantly embraced by large enterprises due to the significant resources and professional management expertise required These companies focus on integrating technology into complex activities such as accounting, planning, reporting, and analysis For instance, the Investment Banking Department at Thien Viet Securities relies heavily on a robust information management system, with effective data storage and internal communication facilitated by Microsoft Office This comprehensive information system is a critical factor in the company's success.
Thien Viet Securities primarily utilizes Microsoft Office as its main information management system software This comprehensive suite includes essential applications such as OneDrive for data storage, Microsoft Teams for internal communication, Outlook for email management, and Office software like Microsoft Word, PowerPoint, and Excel, among others.
Digital transformation: This is the goal within 10 years of Thien Viet
To enhance operational efficiency within the Vietnamese economy, the company is committed to utilizing a fully integrated information system and database This approach ensures synchronized information across all departments, promoting unified activities Currently, the company is actively researching, planning, and conducting tests to optimize this system.
The criteria measuring the competitiveness of Investment Banking Services
2.4.1.1 Number of deals and total deal value
Thien Viet Securities has successfully executed 38 transactions totaling USD 1 billion, including a notable M&A advisory for Diana However, in recent years, the firm has experienced a decline in the number of mergers and acquisitions consulting and capital raising deals.
Besides, the deal size also decreased In the past 2-5 years, Thien VietSecurities has done deals ranging from tens of millions to hundreds of millions of
USD In the past 2 years, the company has only done small deals under $10M This also reduces the revenue of the Investment Bank division.
In 2021, Investment Banking Department of Thien Viet Securities completed 6 deals, including:
● M&A transaction in financial services sector
● Capital raising in fintech sector
● Debt issuance in media & entertainment sector
● Capital raising in ed-tech sector
● Sell-side advisory in genetics sector
In 3 recent years, the revenue has declined due to the Covid pandemic The decrease of deals in the most 2 recent years leads to a decrease in revenue Even so, expenses remained the same compared to previous years, leading to a loss in financial advisory activities of Thien Viet Securities in the last 2 years.
Due to the lack of official data on the market share of investment banking services in Vietnam, the author estimates it based on the revenue from financial advisory services of major firms The analysis categorizes financial consulting service providers into two groups: publicly listed companies with transparent revenue figures, such as Viet Capital Securities, Saigon Securities Incorporation, Hochiminh Security Company, Thien Viet Securities, and Bank for Investment & Development of Vietnam Securities Company, and private companies that do not disclose their revenue, including PwC, Credit Suisse, and BDA Partners.
In Vietnam, the financial advisory services market is primarily led by major players such as Saigon Securities Incorporation, Viet Capital Securities, Hochiminh Security Company, and PricewaterhouseCoopers, collectively holding over 50% of the total market share.
Thien Viet Securities currently holds a modest market share of 3-5% in the financial consulting services sector, indicating that it has not significantly outperformed its competitors However, the company possesses several core strategies and competencies that present opportunities for expanding its market presence in the future.
Table 2.13: Revenue and cost from financial advisory services of big firms
Figure 2.8: Number of transactions by year (1996-2021)
Figure 2.9: Total transaction value and average deal size by year (1996-2021)
Thien Viet Securities currently holds a relatively small market share compared to larger competitors, highlighting its limited competitiveness This market share is influenced by various factors, including the strategies employed by the Investment Bank department, the efficiency of the company's operations, the quality of services provided, and the volume of transactions To enhance its market position, Thien Viet Securities must focus on developing effective strategies, delivering exceptional service, and leveraging its network of partners and customers to showcase its capabilities.
The price of financial advisory service (service fee) is determined in two ways:
(1) by a fixed fee depending on the service or (2) by multiplying the transaction value by the corresponding percentage (1% -3%).
In the advisory service market, various companies impose comparable fees; however, the lack of complete information on fee regulations and specific amounts for Thien Viet Securities and its competitors stems from the confidentiality of client information and the flexibility in adjusting fees to meet customer needs.
Thien Viet Securities adheres to a fixed pricing model for its financial advisory services, ensuring transparency based on the quality of services offered To accommodate the diverse needs of companies and clients, the firm has established a basic fee schedule for standard services However, recognizing the complexity of customized requirements, Thien Viet Securities also implements flexible pricing options, including compensation fees and charges for contract non-compliance, to meet additional service demands.
The fee schedule of Thien Viet Securities is quite flexible compared to the financial advisory service market Consulting fees of other businesses are often higher and less flexible.
Customers continuously review and assess service quality before, during, and after their experience This evaluation is primarily based on the consistency and credibility of the service provided by the company Key factors influencing service quality include customers' perceptions of staff qualifications, capacity, and professionalism When these elements are met, the gap between customer expectations and actual experiences narrows, leading to increased satisfaction Conversely, a failure to meet these standards can diminish customer satisfaction Quantitative indicators of service quality can further illustrate these dynamics.
Number of times of feedback, feedback on service failure to commit: Thien
Viet Securities is dedicated to delivering top-notch financial consulting services, including capital calling, restructuring, and merger consulting The firm supports clients in making informed financial decisions and ensures the seamless execution of related procedures All services are transparently outlined in contracts, reflecting the company's commitment to quality With extensive experience and expertise, Viet Securities consistently meets customer expectations, resulting in minimal negative feedback regarding service quality throughout its operational history.
The service delivery period outlined in the contract begins upon signing and continues until Thien Viet Securities fulfills all obligations and the customer accepts the information provided, with no further requirements The timeframe for financial advisory services can range from one month to several years, depending on the transaction Thien Viet Securities is committed to minimizing this duration to optimize resources for both the company and its clients While its service time may not be the shortest in the industry—compared to firms like Viet Capital Securities or SSI, which leverage highly qualified and experienced personnel—Thien Viet Securities strives to deliver efficient and effective service.
Thien Viet Securities actively gathers feedback from its primarily enterprise customer base through regular surveys These surveys assess customer opinions on three key service categories: pre-sale services, post-sale services, and after-sales support Customers rate their experiences on a scale of 1 to 5, with 1 indicating "Very Bad" and 5 signifying "Very Good."
Table 2.14: Thien Viet Securities’ survey on service quality
Ability to give insightful, helpful and actionable advice/solutions to customers 4,56
Time providing the service to customers (from the time the need arises to the completion of the service)
Process of accessing necessary services
Have variety of financial services 4,23
Overall satisfaction (with pre- and post-sale service) 4,07
Source: Thien Viet Securities Survey
Thien Viet Securities has historically focused on institutional clients and small to medium-sized businesses with deal sizes under USD 5 million, recognizing the diverse needs of these fragmented industries However, the firm acknowledges the untapped potential in larger businesses with deals exceeding USD 10 million and plans to gradually expand its customer base The Investment Banking Department aims to transition from serving small enterprises to medium-sized ones, emphasizing a strategic approach that leverages Thien Viet Securities' existing resources, capabilities, and experience to build expertise before pursuing larger transactions.
Thien Viet Securities boasts a network of seasoned experts in the Vietnamese market, enabling them to deliver services with enhanced speed and accuracy The company actively cultivates and expands relationships with founders, investment funds, and professionals across key sectors such as consumer goods, finance, education, and infrastructure Each quarter, the Investment Banking Department undertakes comprehensive research in specific areas, leveraging insights from experienced individuals to deepen knowledge, strengthen connections, and elevate the department's expertise in research.
Figure 3: Thien Viet Securities’ local knowledge
Thien Viet Securities has established strong partnerships with notable companies like Momo, Yola, and Goldman Sachs To enhance client satisfaction, the firm should focus on maintaining relationships with existing customers by offering valuable information within its capacity Additionally, Thien Viet Securities should proactively engage with potential new clients, providing assistance before they officially select the firm as their financial advisor.
Figure 4: Thien Viet Securities’ clients and partners
Assessment on the competitiveness of Investment Banking Services at Thien Viet Securities
Thien Viet Securities' Investment Banking Department operates two branches in Hanoi and Ho Chi Minh City, strategically located to cater to the majority of companies concentrated in these major urban areas Most financial advisory firms also have limited facilities in these cities, with many large companies primarily focusing on Ho Chi Minh City By maintaining two branches, Thien Viet Securities enhances its customer service capabilities while also offering the flexibility of online operations, a crucial advantage during the Covid-19 pandemic.
2.5 Assessment on the competitiveness of Investment Banking Services at Thien Viet Securities
This analysis examines the competitive landscape of the financial advisory services offered by the Investment Banking Department at Thien Viet Securities from 2019 to 2021 It identifies key strengths and weaknesses that influenced the department's competitive advantages during this period Additionally, the study explores the underlying causes of existing challenges, providing a foundation for developing strategic solutions aimed at enhancing the competitiveness of the department's services in the future.
Thien Viet Securities boasts a robust network of trusted partners and deep local expertise, leveraging the founders' extensive experience to enhance its industry knowledge and global connections This diverse network enables Thien Viet Securities to gain valuable insights and advice from various companies and organizations, significantly improving its consulting capabilities and overall service quality The company excels in several key sectors, including consumer goods, fintech, real estate, infrastructure, education, and transportation.
Thien Viet Securities is recognized as a credible financial advisory service, having built a strong reputation as a trusted advisor through a proven track record of success With 38 completed deals valued at USD 1 billion and significant transactions with major companies, our capabilities have been firmly established, earning the trust of our clients This success not only enhances our potential but also expands our network, paving the way for increased future transactions.
Thien Viet Securities offers a flexible financial advisory service with competitive pricing compared to its rivals The company provides two primary pricing structures: a fixed fee and a percentage of the transaction value, both of which can be tailored to meet the unique complexities of customer needs and the dynamics of the client-company relationship.
Thien Viet Securities' Investment Banking Department fosters a culture of empowerment, promoting personal development and new opportunities for employees With competitive remuneration and salary policies, the firm enhances work motivation and engagement This commitment to employee growth positions Thien Viet Securities' consulting team to excel in the market and compete effectively with other firms.
Besides the strengths, there are still some limitations in the activities of improving the competitiveness of financial consulting services of the InvestmentBanking Department of Thien Viet Securities.
Firstly, the service quality of Thien Viet Securities is not up to the potential of a long-standing securities company and a large market with many opportunities ahead.
As customer needs grow more complex, the advisory services offered by Thien Viet Securities before, during, and after consultations are not optimized for excellence Furthermore, their financial advisory services lack differentiation from those of competitors This limited service quality is also attributed to Thien Viet Securities' restricted network capacity with partners and large corporations.
Thien Viet Securities is facing challenges due to its underdeveloped information technology and internal management systems, which fail to meet the demands for efficient information management and data storage Unlike larger advisory firms such as Big4, SSI, and Viet Capital Securities, Thien Viet lacks standardized processes and documentation essential for financial advisory services The absence of these standard documents hampers employee productivity, as they are unable to focus on critical tasks, ultimately affecting the quality of their output Currently, many of Thien Viet's workflows remain manual, leading to inconsistent results that heavily rely on individual workers and lack overall synchronization.
Thien Viet Securities' staff face a significant gap in practical experience and industry insights, with the Investment Banking enforcement team having less than a decade of experience in the field While senior staff possess some expertise, their limited exposure across various industries hinders their ability to provide effective advisory services To offer valuable and practical advice, consultants must possess a deep understanding of the specific industry, its unique characteristics, and the necessary know-how to address the company's current challenges.
Thien Viet Securities has been ineffective in its advertising and brand promotion efforts, resulting in low brand awareness primarily limited to industry insiders The company lacks a dedicated customer care department for financial advisory services, and there is no systematic approach to nurturing customer relationships or communication This deficiency hinders the company's ability to connect with a broader audience and enhance its market presence.
Thien Viet Securities faces challenges in the distribution of its financial advisory services, primarily relying on referrals from the director's network This dependence on personal connections creates potential risks and highlights the vulnerability associated with the division manager's capabilities.
Thien Viet Securities has struggled to prioritize service quality, lacking a consistent strategy for financial advisory services that sets it apart from competitors Over its 15 years of operation, the absence of a dedicated service quality management department has hindered customer relationship maintenance, resulting in inconsistencies and conflicts in addressing client needs Additionally, unclear and incomplete information and processes have diminished the overall value of the services provided to customers.
The company has overlooked the significance of investing in advertising and promotional activities for its financial advisory services, failing to build a positive public image and establish strong media relationships that enhance brand awareness and service prestige By not prioritizing this aspect, the company is missing out on valuable opportunities to align with the branding strategies of other market competitors Furthermore, the existing human and professional resources are insufficient to effectively execute these necessary activities.
Thien Viet Securities lacks a robust policy for retaining experienced personnel, which is exacerbated by recent leadership changes in the Investment Bank division that have affected team stability The financial industry demands a high level of expertise, making it challenging for younger employees with limited experience to compete In contrast, top financial firms benefit from seasoned teams that have developed their skills over time To enhance its competitive edge, Thien Viet Securities must implement a more effective team-building strategy that focuses on accelerating experience accumulation and capacity development.
The company has yet to prioritize the standardization of its working processes and standards, leading to a slow and suboptimal implementation of management tools Limited experience with these tools hampers efficiency, while the adoption of new technologies is hindered by employees' reluctance to shift from manual methods Additionally, the sensitive nature of the securities industry necessitates a cautious approach to searching for, testing, and applying new technologies in the workplace.