(Luận văn thạc sĩ) investor relations (IR)An analysis in the context of vietinbank

VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS M -H S B - IXA D fcRSHir CXCtLLCNCE MAI THI HONG INVESTOR RELATIONS (IR): AN ANALYSIS IN THE CONTEXT OF VIETINBANK Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr Nguyen Thanh Trung Hanoi - 2011 ACKNOWLEDGEMENTS To me, writing a Master thesis is a challenging task, which requires a lot of time and efforts My thesis couldn’t be completed without the supports of several people In this acknowledgement, I would like to give my thanks to all the people who have given me a lot o f supports in this thesis First o f all, I would like to express my profound gratitude to my supervisor - Dr Nguyen Thanh Trung at Hanoi School of Business, who has supervised me during the time o f the thesis His professional advice is really valuable for me to complete this thesis And, I would like to give my special thanks to my family and my friends who always stay by my side and support me in the research progress Hanoi School o f Business, October 2011 Mai Thi Hong ABSTRACT INVESTOR RELATIONS (IR): AN ANALYSIS IN THE CONTEXT OF VIETINBANK Mai Thi Hong MBA Candidate, 2009 - 2011 School of Business - Vietnam National University, Hanoi Supervisor: Dr Nguyen Thanh Trung October 2011, 86 pages More than 10 years ago, the Vietnam stock market was established, as a result IR activities appeared as a mandate of listed companies Now, IR activities in Vietnam haven’t developed yet In most listed companies, IR activities are just understood as basic information disclosure and investors’ rights fulfillment, these companies don’t have any IR professionals At the same time, there are a few companies, which are aware of the importance of IR activities and they carried out IR activities actively and professionally In Vietnam, now IR is becoming more and more popular with the appearance of many IR service vendors to support listed companies Vietinbank has been equitized since 2007 and was listed in 2009 with the stock code of CTG Vietinbank now ranks the second in the banking system in terms o f the chartered capital and network, and CTG is in top biggest market capitalization in the stock market o f Vietnam At present, Vietinbank has more than 20,000 shareholders including: institutions and individuals, foreign and domestic investors In the year strategy, Vietinbank is focusing on rapid expansion nationally and regionally; therefore, it is very necessary to increase chartered capital (tier capital and tier capital) Moreover, Vietinbank is promoting global integration in terms of banking operations and funds mobilizing Therefore, establishing good relations with investors is very important, in other words, Vietinbank needs to establish professional and standard IR activities At present, Vietinbank is evaluated to be a pioneer in IR activities in Vietnam when Vietinbank is the first listed companies which established the IR division in Investment department More than that, Vietinbank always tries out many new IR activities in Vietnam, for examples: investor day, market research, etc However, there is still a big gap between Vietinbank’s IR activities and the professional IR activities that have been shaped in the world The thesis is aimed to fill this gap The first chapter gives a brief introduction of the thesis, including: the necessity of the thesis, the research aims and objectives, the research questions, the research methodology, the scope o f the research and the significance of the research The second chapter researches the current theories of IR activities In this section, the definition, objectives, audiences of IR activities are clearly defined There is not a perfect model to organize an IR division for all companies; the IR division can report directly to the CEO, CFO, the chief of counsel department or the chief of corporate communications department An IR division should be composed of one IRO (with or without one deputy IRO), several staff who are in charge of different tasks of IR activities Based on some models of implementing an IR program, the selected model are steps model: (1) identify the current shareholder base (2) identify the suitable shareholder base (3) identify the gap of shareholder base (4) Conduct market research (5) Select IR tools (6) Implement IR tools The third chapter gives an introduction o f Vietinbank’s operations and the process o f equitization This chapter also provides a careful analysis of IR activities in Vietinbank, including the strengths and weaknesses Some weaknesses of IR activities in Vietinbank are (1) Vietinbank hasn’t applied any IR program model (2) the structure o f the IR division is not clear (3) some shortbacks with IR activities The forth Chapter presents the solutions/ recommendations for Vietinbank to correct the weaknesses and to enhance IR activities To maximize its full potential, the IR division should receive enough acknowledgment from Vietinbank’s management team The IR division should put under the management of the BOM instead of many levels of management as now The IR division should be organized with one IRO and several staff who are in charge of different tasks of IR activities The Chapter also provides details of how to implement an IR program in Vietinbank through steps The suitable shareholder base should have balance between categories of investors (individuals and institutions, domestic and foreign) and have more foreign institutional investors The market research finds out the characteristics of each category o f investors Based on that, the 5th and 6th step present the detailed actions to achieve the suitable shareholder base TÓ M TẮT HOẠT ĐỘNG QUAN HỆ NHÀ ĐẦU T (IR): NGHIÊN cứu TRONG TRƯỜNG HỢP CỤ THẺ CỦA VIETINBANK Mai Thị Hồng Học viên MBA, niên khóa 2009 - 2011 Khoa Quản trị Kinh doanh, Đại học Quốc Gia Hà Nội Giáo viên hướng dẫn: TS Nguyễn Thành Trung Tháng 10 năm 2011, 86 trang Thị trường chứng khoán Việt Nam thành lập 10 năm trước với hoạt động IR xuất nghĩa vụ DN niêm yết Ngày nay, hoạt động IR Việt Nam chưa phát triển Tại hầu hết DN, hoạt động IR hiểu cách đơn giản hoạt động công bố thông tin thực quyền nhà đầu tư, công ty khơng có nhân IR chun nghiệp Cùng lúc đó, có sổ DN ý thức tầm quan trọng hoạt động IR họ triển khai hoạt động IR cách chủ động chuyên nghiệp Tại Việt Nam, hoạt động IR ngày trở nên phổ biến hom với xuất công ty cung cấp dịch vụ IR cho DN niêm yết Vietinbank cổ phần hoá từ năm 2007 thức niêm yết HOSE vào năm 2009 với mã chứng khoán CTG Vietinbank xếp thứ hai hệ thống ngân hàng Việt Nam xét vốn điều lệ mạng lưới hoạt động CTG cổ phiếu có giá trị vổn hố lớn thị truờng Hiện tại, Vietinbank có 20 nghìn cổ đơng bao gồm: nhà đầu tư nuớc, nhà đầu tư nước ngoài, nhà đầu tư tổ chức, nhà đầu tư cá nhân Trong chiến lược phát triển năm tới, Vietinbank tập trung vào việc mở rộng nước quốc tể, vậy, Vietinbank cần phải nâng vốn chủ sở hữu (bao gồm vốn cấp vốn cấp 2) Thêm nữa, Vietinbank đẩy mạnh việc hội nhập quốc tế hoạt độn