Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (26)

TABLE OF CONTENTS LIST OF TABLES INTRODUCTION …………………………………………………………… Chapter I: Overview on investment strategy 1.1 Definition and the importance of investment strategy …………… 1.2 The process of formulating strategies …………… 1.2.1 Define the mission and strategic goals of investment …………… 1.2.2 External environment analysis ……………………………………… 1.2.2.1 Macro environment analysis …………………………… 1.2.2.2 Micro-environment analysis (five forces model of competition)… 1.2.3 Internal environment analysis …………… 1.2.3.1 Sustainable Competitive Advantage 1.2.3.2 Resources (tangible and intangible) 1.2.3.3 Value Chain 1.2.3.4 Core Competence 1.2.4 SWOT synthesis matrix 1.2.5 Strategic choices 10 Chapter II: Analysis and assessment of the state of the investment activities of PetroVietnam Finance Joint Stock Corporation (PVFC) 11 2.1 Overview of PVFC and investment activities of PVFC …… .11 2.1.1 Introduction of PVFC 11 2.1.2 Investment activities in the overall strategy of PVFC 14 2.1.3 Investment characteristics of PVFC 14 2.1.4 Result of investment activities through the years 17 2.2 SWOT analysis of investment activities 19 2.2.1 Analysis of external factors 19 2.2.1.1 The impact factors of macro environment 19 2.2.1.2 The impact factors from the micro-environment 25 2.2.1.3 Identify opportunities and challenges 27 2.2.2 Analysis of internal environment 28 2.2.2.1 Resources 28 2.2.2.2 Ability 28 2.2.2.3 Core competencies and competitive advantages 29 2.2.2.4 Identify strengths, weaknesses 29 2.3 Investment strategy options in the period of 2011-2015 32 2.3.1 Evaluation on investment strategy in 2010 32 2.3.2 Strategic investment options in the period of 2011-2015 32 Chapter III: Solutions to implement the investment strategy of PetroVietnam Finance Joint Stock Corporation for the period 2010 -2015 34 3.1 Development goals 34 3.1.1 Vision 34 3.1.2 Mission 34 3.1.3 Specific development objectives of investment activities in the period 2011 2015 of PVFC 34 3.2 The solution strategy implementation 35 3.2.1 Solutions to develop capital 35 3.2.2 Solutions on the scale of investment 36 3.2.3 Solutions to human resource training 36 3.2.4 Technology Solutions 39 3.2.5 Solution to promote the differentiation and diversification of investment products 39 3.2.6 Capacity building in risk management 40 3.3 Recommendations ……42 3.3.1 For Vietnam National Oil and Gas Group 42 3.3.2 For State Bank, the State Securities Commission Of Vietnam and other agencies related …………………………………………………………… 43 CONCLUSION 45 REFERENCES 46 LIST OF TABLES Table 1.1 Source: Pest models in the macro-environment studies……………… Table 1.2 Source: M Porter’s five-forces model of competition………………… Table 1.3 Source: Marketing management - Philip Kotler…………………………… Table 1.4 Source: SWOT PVFC’s………………………………………………………… 10 Table 2.1: Structure of shareholders ……………………………………… … 12 Table 2.2: Investment portfolio and density in investment products…………… 15 Table 2.3: Results of financial investment activities through the years 17 Table 2.4: Source: Financial statements of PVFC ……………………………… 19 Table 2.5: Source: SWOT PVFC’s………………………………………………………… 31 INTRODUCTION In the operation strategy of PetroVietnam Finance Joint Stock Corporation (PVFC), financial investment is considered the key activity which brings the main benefit to the PVFC Following to the target in 2015, the proportion of turnover and profit gained from financial investment will expectedly account for 30% of total turnover and profit of PVFC In the period 2006-2007, along with the development of Vietnam's securities market, investment activity of PVFC had strongly grown and contributed the most in turnover and profit of company However, from early 2008 until now, the adverse situation of the World economy in general and Vietnam economy in particular, has led to a drastical decline in the Vietnam's securities market , causing bad effect on investments of PVFC Therefore, it is a must for the company to review the entire investment activity We have to figure out the reality as well as assess the strengths and weaknesses in the investment activities of PVFC in order to build investment strategy to exploit current advantages and reduce risks Therefore, the topic "Building Investment Strategy of PetroVietnam Finance Joint Stock Corporation for the period 2010 to 2015" will focus on researching and systematising methods to build up strategies based on analysing macro environment PEST, Porter’s five forces model of competition, SWOT matrix, etc… The topic includes three chapters: Chapter I: Overview on investment strategy Chapter II: Analysis and assessment of the state of the investment activities of PetroVietnam Finance Joint Stock Corporation (PVFC) Chapter III: Solutions to implement the investment strategy of PetroVietnam Finance Joint Stock Corporation for the period 2010 -2015 CHAPTER I OVERVIEW ON INVESTMENT STRATEGY 1.1 Definition and the importance of investment strategy - Strategy is the direction and scale of an organization in the long-term Strategy will bring advantages to the organizations through the optimum arrangement of resources in a competitive environment to meet market demand and expectations of stakeholders - Business strategy is more related to the way how a firm can compete successfully in a specific market It involves strategic decisions to choose products to meet customer needs and gain competitive advantages over competitors, exploiting or creating new opportunities etc - Investment strategy is the identification of goals and objectives in the long-term fundamental investing activities to apply the appropriate action and allocate resources needed to implement the objectives 1.2 The process of formulating strategies: 1.2.1 Define the mission and strategic goals of investment: Mission is to express essential reasons for formulating investment strategy Strategic goals of investment is to meet within the medium and long term Most of the business objectives of the investment strategy is to pursue profits, achieve goals of excellence 1.2.2 Analyse external environment - The analysis of the external environment aims to recognize the opportunities and risks from the external environment that affect business investment strategy The environmental analysis of investment sector need an assessment of competition in the industry structure, including the competitive position of the investment activities of enterprises and other major competitors The basic techniques for analyzing the external environment affecting investment, include: - Environmental review is the work that research generally all factors of external environment Through doing this, businesses recognize the signs of potential changes in the environment and detect the changes which take place clearly - Environmental monitoring is the process that observe the changes of environment to identify important trends emerging from the signs that environmental review has found This work can help businesses better to prepare for the introduction of new products or services on the appropriate time, to win a competitive advantage coming from the opportunity - Prediction is the expected development of potential events, and how the speed of its appearance as a logical result of the changes and trends have been detected through the review and monitoring - Assessment is the work that determine the time and the importance of the impact which its changes may impact on the strategic management of business investment 1.2.2.1 Analyse macro environment - Macro enviroment analysis is the process that identify changes of expected trends from elements of the external environment With focusing on the future, the external environment analysis that allows enterprises to realize the opportunities and threats Table 1.1 Source: Pest models in the macro-environment studies - Political environment: Those are the State management policies which can impact operations and profitability of the investment activities of enterprises; - Economic environment: The nature and orientation of the economy in which investment business activities The economic impact on a business can change the ability to create value and its income Four important factors affecting the macroeconomic environment is the growth rate of the economy, interest rates, exchange rates and inflation rates - Social environment: Social and cultural segments related to the social attitudes and cultural values because it creates social foundation, leads to changes and technological conditions, political - legal, economic and demographic - Technology environment: The revolutionary technology with a range of nascent technologies and the intergration of the products and services is one important factor that affects the development strategy of investment activities 1.2.2.2 Analyse micro environment (five-forces model of competition): - Five-force model of competition helps businesses identify opportunities and risks or investment activities The tasks set for the enterprise is to be aware of the opportunities and risks, which are brought by changes of the five forces Through this, we can build strategy for adaptation Table 1.2 Source: M Porter’s five-forces model of competition - The risk of potential competitors’ entry: This force includes the companies which are not competitive in the industry but are able to it if they want Identifying new competitors who enter the industry is essential, because they can threaten the market shares of existing companies in the industry One of the reasons that enterprises considere competitors to enter the industry as a threat because these new factors will turn the industry into the new production capacity Typically, new competitors enter an industry with intense interest to gain market share As a result, competition can push existing firms in the industry to become more efficient, more effective and know how to compete with new properties The risk of potential competitors is a function of the height of the barriers to entry The higher barriers to enter are the more risk of lower profits the company can gain as much industry - The competitive level of current existing firms in the industry: Enterprises in the same industry are interdependent, the actions of a company usually be responded by actions of other companies Rivalry will be intense occurs when a business is challenged by the actions of other businesses or when a business recognizes an opportunity to improve its position in the market Common businesses often create competitive advantages by making differences between their products and competitors’s ones The tools are used in the tournament to create value for customers are price, quality improvement and customers satisfation Level of rivalry between the companies is a function of the competitive industry structure, demand conditions and barriers to leave the industry The stronger demand conditions are, the more moderate companies are It makes opportunities for expansion When demand is less, competition will fiercely, especially in the case of concentrated industries with barriers of leaving are high - Bargaining power of buyers: The buyers of a company may be end users, or may be a distributor Buyers have the most powerful when the business activities of the company depend on them ,otherwise they not depend on the company In this case, the buyer will be a threat - Bargaining power of sellers: Suppliers can be viewed as a threat when they can raise up prices or reduce quality input requirements that they provide to the company Suppliers have the highest bargaining power when a company's business depends on them, otherwise they not depend on the company's operations In this case, the supply is a threat - Threat of substitute products: Subsitude products are the product of the industry that serves the needs clients similar to the industry are analyzed The existence of close substitutes represent a competitive threat, limiting the ability to set high prices and limit its profitability If the products of enterprises have fewer close substitutes and other factors are normal, the company will have the opportunity to get price increased and profit increased 1.2.3 Analyse internal environment 1.2.3.1 Sustainable Competitive Advantage: Two main ways of internal analysis are resources analysis and value chain analysis Resources analysis focuses on reserves, while value chain analysis focuses more on the value Resource analysis is useful in identifying the core competencies while value chain analysis is more useful to understand the cost advantage or differentiation 1.2.3.2 Resources (tangible and intangible): - Resources, broadly defined, include a series of organizational factors, technology, human material and financial companies The resources can be divided into two categories: tangible resources and intangible resources Tangible resources can be seen and quantified, including financial resources, organization of material conditions and technology Intangible resources include human resources, innovation and reputation - Resources can be standardized with competitors and the strength and weaknesses should be identified Resources contribute to the ability to generate income for the enterprise, each resource should be considered and evaluated in its opportunity cost - Resource does not make competitive advantage for companies To generate special ability, the resources must be unique and worthwhile A unique resource is the thing that other companies can not have A resource is valuable if it creates strong demand for the company's products 1.2.3.3 Value Chain - Value chain reflect activities related to the flow of goods inside business and the operations which support this flow of goods and link business activities inside and outside the enterprise According to Porter, chain value analysis is useful in all sectors, although the most obvious is its application with the material flow go through the enterprise - The biggest benefits of the value chain is the way to analyze how businesses create products or services and how to it well Using this tool helps  The PVFC investment products are developed new products hit the market, virtually no competitor should control investment risks are not clearly defined cause higher risk  New products hit the market is not prepared to make management technologies for the management of nature crafts, not control all the risks and the warning is not professional 2.3.2 Strategic investment options in the period of 2011-2015 From the limitations of strategic investment in previous years, based on the above analysis, strategic choice PVFC period 2011-2015 as follows:  To narrow the scale of investment, no investment spread Focus in transfering and rearrange non-profit portfolios, trive to ruduce the transferable value at least of 5,000 billion  Promote investment in analytical work, to identify market trends and investment without appropriate action against market fluctuations  Increase the investment control  For new products should first determine the problems that may occur to limit and reduce the risks when new products hit the market for managing the technology needs to be fully equipped and ensure security 32 CHAPTER III SOLUTUONS TO IMPLEMENT THE INVESTMENT STRATEGY OF PETROVIETNAM FINANCE JOINT STOCK CORPORATION FOR THE PERIOD 2010 - 2015 3.1 Development goals: 3.1.1 Vision: Building investment activity of PVFC become major financial institutions of National Oil and Gas Corporation of Vietnam, lead in the field of financial investment and create prestige brand in market 3.1.2 Mission: To meet the demand for financial investment services with the motto “ Be fellows of customers for the growth and prestige of PVFC” ;  Constantly increase business value and customer benefits;  For the growth of Corporation Finance Vietnam Oil and gas shares, because the development of the petroleum industry and national economy;  Creating dynamic professional working environment  Committing to build investment culture on the basis of corporate culture, for the sustainable development of communities 3.1.3 Specific development objectives of investment activities in the period 2011 - 2015 of PVFC: - Completing rearrange and complete transfer investment assets Striving to rearrange at least 5,000 billion low profitability to reinvest in stable assets with higher profitability portfolio 33 - Orientate and adjust the direction of the flexible management portfolio and control risks and maximize the benefit of investors  Providing investment products and services financial services focused on the strength of the financial sector - Concentrating on developing product is the strengths of PVFC including invetsment and investment services: + Investment: capital is the advantage of Oil and gas business, we can invest in internal projects that other units are hard to like this + Investment service: maintaining orientation to customer service is the prestigious organization, stable financial state or individual clients are core of their business, hold the dominant shares of business Developing new investment products and services that Vietnam not provide such as: Selling right securities, Repo real estate development consultancy, CDM project management 3.2 The solution strategy implementation 3.2.1 Solutions to develop capital - Investment activity is greatly dependent on their resources PVFC investment activities of investors, including investment services or financial resources are needed stable and abundant If only based on capital ownership will limit investment activities Therefore, the creation of reputation for investing activities is essential to bring confidence to the customers trust to make money for investment PVFC PVFC need to exploit and mobilize capital from the Group and member units of the Group, but to that PVFC should demonstrate to customers their investment capacity through investment opportunities highly profitable 34 - To ensure funding to build a solid, stable and meet the needs of PVFC, especially long-term capital, PVFC need to diversify the sources and forms of mobilization, including mobilization from mobilization issuing bonds at home and abroad, deposits, entrusted funds management, investment trust, investment fund established to raise capital works associated with: - Provide a package of products and services, creating favorable conditions for the access and mobilize capital and create additional products to support customers with the goal of "PVFC and customers develop together"; - Administrative capital structure to ensure optimal use of capital and efficiency 3.2.2 Solution on the scale of investment - Collection, exploitation and analysis of information on the macro economy, industry trends, the financial condition, operation scale, level of prestige as well as business policies, information from the State management agencies to assess and decide the trend of product structure in the long-term investment Therefore, the enhanced collection, analysis and information processing plays an important role in the development and reduce risks of investment activities: review and assess the condition of the product, industry, field from which to build detailed list of priority investment in industry sector, investment type, investment size, investment time - Reduce investment in the sector outside the oil industry and other highrisk areas such as real estate, shipping, Transfering low profitable investment assets, aims to transfer at least 5,000 billion Value recovered from the transfer of investment will be used to reinvest in the products which bring better performance and more stability 3.2.3 Solutions to human resource training 35 - Human resources are crucial to success or failure of any business and a valuable asset of the business The staff members were the ones that implement the strategy and objectives of the business Building human resources expertise in an extensive, constantly improve the professionalism and discipline will help companies develop a sustainable manner - Currently, PVFC shortage of qualified manpower and experience to improve the efficiency and scale development activities as well as implementation strategies and objectives have been developed So the business operations and products of the company's new service is limited by the level of staff has not really meet the requirements of this developmentTherefore, PVFC necessary steps to reorganize the structure and policies for resources to be able to respond to market changes and requirements of the development of the company PVFC system to build job descriptions for each type of service associated with the different positions The job description includes performance measurement indicators (Key Performance Indicator) to evaluate the efficiency and level of completion of each job done System of job descriptions are important bases for shape employee workload, duties and responsibilities assigned relationship between direct and indirect departments / sections of the employee with divisions / departments as well as with colleagues, leadership, training benefits, as well as improve professional compensation regime Through that employees will know the shortcomings of his own work to learn, hone professional In addition, the system of job descriptions to help determine staffing needs in each area, the company's business such as number, education level, experience required to HR development plans for recruiting, training and improving professional skills and management capabilities of its leadership - System job descriptions help management leadership is a systematic and efficient operations of the company to accurately evaluate the effective implementation of the work of staff; from that distribution, location classified personnel in line with qualifications, capabilities and aspirations, with reward, 36 punishment in time to encourage and promote the maximum ability of the employeeThe recruitment generally follow two directions: to attract qualified human resources, good practice and new recruitment Depending on the business objectives of each period that the recruitment policies in line with the needs of each department, division and job requirements Periodically, review the company made their professional qualifications, professional qualifications for staff and classified staff have policies to encourage them in time, avoiding the passive mentality, peace creates stagnation in activities Regimes have distinct payoffs tied to achievement of the job to be able to attract human resources, besides the personnel policy, the reasonable compensation regime, the creation of the cultural background, the humanities in the work environment is very important Culture "generally PVFC House" was built over 10 years of successful development, the common glue that holds power for development goals uy course, PVFC recruitment policy of targeting only domestic employment market Meanwhile, investment in securities activities requiring the experience from the outside, so one of the factors that can increase the quality of human resources investment, including high-level human resources in PVFC that is hired experts, the organization of foreign consultants - The training should be implemented as follows: Training of staff investment systems, investment officers and Headquarters staff investment affiliates to participate in training courses to improve professional Mission appointed to staff the facility investment professional guidance to staff the new branch of investment - In addition to working as trainers to train internal staff to participate in the proposed training in domestic and foreign certificates of basic and specialized operations such as Project Management project, a securities analyst, financial consultant, investment consultant Coordinate with the Fund, the Bank sent a large staff training and learning experience 37 - Regularly organize professional activities, guide the new legislation relating to investment activities and exchange of methods implemented in each period, settlement activity exist 3.2.4 Technology Solutions - In investment activities, technology plays a very important aid for investment activities from the statistics, storage information, portfolio management and most importantly great support decision making: investment, holding, exchange or transfer of portfolio, list management and customer information using investment products and services - Software for investment activities has always been considered a difficult software and high-tech nature of most other business software Currently, software systems PVFC FCC's new stop at the information management portfolio of simple, PVFC can help manage portfolio management system and limit the from within the limits prescribed by the State Bank which may be integrated with core banking system To assist in the analysis of investment opportunities and make decisions, and minimize time and costs, PVFC need to build a system of specialized software investment, integration and direct connection with system is FCC Dedicated software investment will help PVFC get information about investments is easy, compared to other investment opportunities and market risk statistics and risk of individual investments, management of the contracts with customers, warning the customer's limit is exceeded or settle the contract period with customer To develop various software applications, instead of using free software designed by PVFC, PVFC to combine existing ideas of analysts and investment professionals manage clients and hiring home design software investment is dedicated to reduce design time, and take advantage of the available software ideas have been applied effectively in the financial investment organizations and national professional International 38 3.2.5 Solution to promote the differentiation and diversification of investment products: Investment products and services of PVFC was developed in two directions:  The service strengths include the services of financial advisors, financial investment consultants listing, consulting and underwriting bond distribution, development consultant, management of CDM projects, "the emission reductions be verified CERs " - The traditional services include product sales period, the right to sell the stock To accomplish the development of investment products and services, investment activity should: - Develop roadmap development, cooperation provides a new financial services to meet the development needs of the economy Form a professional team, well-trained, construction, exploitation and effective use of information (information service industry, technology, legal, market, ); Development of uniform, comprehensive financial products and services for all customer needs;  Promote the combined strength of the member units of PVFC and partners to provide services to ensure maximization of value added;  Pain and provide customer service needs 3.2.6 Capacity building in risk management - To achieve higher profits while limiting risk to the lowest level of financial investment, the requirements set forth for PVFC is to manage this risk Therefore, PVFC need to build and additional risk management processes, identify risks and risk management at the lowest level Risk management is divided into five steps: 39 Step 1: Identify risks This is the first step in understanding the nature of risk List each factor and the cases can be generated directly and risk is the simplest How to clarify the nature of risk is: The First: Identify the factors that cause economic risks such as: the world economic situation and regional economic development policy in Vietnam, interest rates, inflation, exchange rates The Second: Exploring the trend could pose a risk This trend may come from interest rate policy of the State Bank affect the direction of interest rate volatility in the market which affect operating costs of production and business enterprises The Third: Check back to see signs of risk analysis has been dependent on any other event or not Step 2: Quantification, risk estimates Measure the company's response to identified risks Specifically, the method assumes a PVFC customers are a company importing petroleum business if exchange rate volatility on the costs that companies spend more for imported oil is and how to since then the company has measures to prevent the exchange rate risk Step 3: Assess the impact of risk The problem of income and expenses are usually placed to assess risks The cost of risk management of the company resources such as money and time, so the management must consider such risks actually benefit more than the costs to implement it or not For example, companies importing fuel, exchange rate risk has a huge impact to the company's costs should be the prevention of exchange rate fluctuations often bring more benefits to the company Step 4: Capacity assessment of the implementation of risk insurance There are two strategies to manage risk: 40 The First: Based on financial institutions, professional design consultant hired their risk management systems in line with the model and development strategy of the company The Second: Company executing hedging by using derivative instruments such as stock options, forward contracts, futures contracts and build a team of companies capable of implementation barriers and risk prevention This requires employees to design just the right fit to make better risk-prevention programs by risk management should be monitored regularly and promptly adjust to the change of time Step 5: Selection tool and appropriate risk management This is the bottom line in building strategic risk management At this stage a particular solution must be selected For example, for the tools on the forex market, can use futures contracts, option contracts, swap contracts as hedging instruments These tools are particularly high liquidity and pricing efficiency In parallel with the risk management of investment activities, process control investments also requires PVFC have done well Risk control is the necessary steps as follows: The First, a good job statistics, aggregating data in each system Monitoring market information about the portfolio is, to know the actual state of the portfolio and make the appropriate decisions The Second, continuously updated information Firm grasp new information to understand the movement of the market economy To this effectively, PVFC need to build up a department specializing in research, analysis and give the market forecast daily, weekly, monthly Thus the decision to finance investment will be safe and effective 3.3 Recommendations: 3.3.1 For Vietnam National Oil and Gas Group: 41 - With a growth strategy based PVFC finance the oil industry and serve the needs of development investment Oil and Gas Group, the diversified products and services, including investment products and financial core Also, construction PVFC become the leading financial group in Vietnam By 2015, PVFC will backbone of the financial institution's Oil and Gas Group, to meet the maximum demand for capital projects of the Group and the member companies of the Group Therefore, the Group should: - Support the mechanism of action: to PVFC can promote the advantages in the sector, a mechanism of operation, coordination between groups, and units in PVFC, can help PVFC invest in the units work efficiently in the industry, while also facilitating the PVFC can Petrovietnam Vietnam National investment in industries and fields in the effective development and abroad - Managed and use of idle funds of the Group through activities such as cash flow management, trust funds, credit, investment projects PVFC helped the Group to use capital efficiently and safety and leads capital flow to where the best profitability Besides this form of PVFC advantage over investors with different organizations in the market - Receiving the advice of the Group expertise, experience and skills development activities in the field of Oil and Gas Energy - industry group accounted for the largest portfolio of PVFC 3.3.2 For State Bank, the State Securities Commission Of Vietnam and other agencies related - Provide high-quality goods to the market means that PVFC have good investment opportunities, high safety: The increase in high-quality goods is necessary for the stock market The increase should take place cautiously and gradually Commodity prices due to ties to - the decision, the rush to increase supply in the absence of a corresponding amount of demand can cause the stock market crash or a prolonged quiet So we need to raise the standards listed to get the best possible business The rush to develop the securities market too quickly can not selectively "contaminated" the securities market from the beginning, while 42 the potential of the current economy, Vietnam is possible to create a the enterprise market with a good foundation - Macro economic stability: In recent years, due to currency market fluctuations have made immeasurable State Bank continued with the change of policy to regulate and stabilize the market Although the policies of the State Bank has a positive impact to the economy in the medium to long term but this is devastating to both businesses and investors in the securities market - For emerging economies with industries and financial and monetary markets like Vietnam, the fledgling solutions are easily shocked than hurt the market For Vietnam, the Government's measures to try to stop inflation, interest rate risk, credit risk is true but clearly reflects the capacity limitations of the forecasting agencies concerned before the current complicated The reaction to the policies seem to impact against the target is large and can create more shock to the money market and stock market So the Government's policy priority of monetary stability and security while stimulating the securities market is not stagnant and currency markets Government should not rely too heavily on monetary policy (by using the powerful therapies loosen and tighten monetary) that need to be coordinated with other policies and measures consistent implementation more synchronous - Create a stable legal environment for financial investment activities for development: The regulatory environment is stable and adequate first factor to ensure the confidence of investors Accordingly, investors in the country and abroad can only invest in the stock market if they see that investment as well as their expected profitability of a parcel covered by the law of transparency and safety With the advent of the Securities Act and is effective from the date of 01.01.2007, has gradually improved the legal framework for the subject in the Vietnam stock market, overcoming the limitations of the Decree 144/2003/ND-CP dated 28/11/2003, to ensure fairness, openness and transparency of the market 43 Securities Law was born to create a legal basis for Vietnam's stock market develop stable, safe and effective, creating investor confidence, improving management efficiency of state for work on the stock market A criterion to meet in the process of finalizing the legal framework and strengthening of the policy of the State Securities Commission is approaching international standards and in accordance with the real situation of Vietnam In parallel with the completion of the Securities Act, to supplement and complete a number of laws such as Criminal Law, Investment Law, the Law on Credit Institutions, Foreign Exchange Ordinance, Also, consider modify regulations on foreign exchange management regime for foreign investors, especially the mechanism custody, payments for foreign depository institutions Also, a complete study of policies on the participation of foreign parties in Vietnam securities market; tax policy organizations listed and posted for trading on the STC; modify the regulations on accounting Accounting for organizations participating in the market by slowly approach with an international accounting system The construction of the Securities Act and improving the relevant laws will help Vietnam's stock market efficient and stable CONCLUSION With 10 years of operation as well as 10 years to participate in financial markets, securities market investors, PVFC has been known as a financial investment organizations and provides investment products and services prestigious and bring efficiency to customers in the market To get your brand, not to mention the effort, strive for leadership and staff working in PVFC However, the goal of building investments are the main activities included PVFC become stronger financial institutions of the National Oil and Gas Corporation of Vietnam, a leader in the field of financial investment, business 44 creation prestigious investment performance in the market, leaders and staff investment in PVFC found that success was achieved only as a first step, creating momentum for the acceleration of activity With the guideline development "KEEPING INNOVATION AND CREATIVITY – LET INVESTMENT WORTHY AS SPEARHEADED ACTIVITY OF CORPORATION", PVFC has identified its investment strategy in order to make the most of internal resources as well as adapted to the fluctuations of the market, highly creative elements, innovation and profitability Strategy for building financial investment activities, is one of the leading activities in PVFC, elements of sustainable development are also posed next to profit-seeking objectives Ensuring investment activities really professional, the professional development department in parallel with the implementation of parts of auxiliary operations, support business activities Towards a strategic investor, PVFC gradually professionalize in their investment activities, and from there, constantly renewing and improving the management of risks in investing activities With topic about building strategies for PVFC investment activities, the authors hope to build PVFC growing, developing and effectively REFERENCES Griggs Univesity, 2009, Strategic Management Vice Professor, Dr Lê Thế Giới, Dr Nguyễn Thanh Liêm, MA Trần Hữu Hải, 2009, Strategic Management, Statistics publishing Fredr David, 2006, Concepts of Strategic Management, Statistics Publishing 45 PetroVietnam Finance Joint Stock Corporation, Annual Report, 2007, 2008, 2009, 2010 – Hanoi 46