Improving the efficiency of using capital at baoviet group

VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL ***************** Phan Dinh Tam IMPROVING THE EFFICIENCY OF USING CAPITAL AT BAOVIET GROUP MASTER THESIS Ha Noi - 2020 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL ***************** PHAN DINH TAM IMPROVING THE EFFICIENCY OF USING CAPITAL AT BAOVIET GROUP Major: Master in Financial Management Code: 8340202.01QTD MASTER THESIS Supervisor: Nguyen Thi Hai Duong, PhD Ha Noi - 2020 ABSTRACT Thesis Title: Improving the efficiency of using capital at Bao Viet Group Pages: 100 University: Vietnam National University Graduate School: International School Date: Octorber, 2019 Degree: Master Graduate Student: Phan Dinh Tam Supervisor: Dr Nguyen Thi Hai Duong Keywords: Business Capital, Bao Viet Group, improving efficiency This paper focuses on analyzing, evaluating and offering solutions to overcome shortcomings, and to contribute to improve and bring better efficiency for using capital at Bao Viet Group in the period of 2016–2018 The researcher will study the system and theoretical basis of the organization of capital use, research and evaluate the status of the organization of using capital in enterprises in general and the status of organization using capital at Bao Viet Group, and provide recommendations and basic conditions to improve the efficiency of capital use at the Bao Viet Group The research uses following methods: Statistical methods, synthetic methods, analytical methods and comparison methods to clear the research objective Thereby, the research recommends financial solutions: Adjust capital structure in a more reasonable way; Strict management and improve the profitability of capital in cash; Focus on investing in architectural houses, means of transmission and improving the efficiency of using existing fixed capital; Determine the Group's need for regular working capital appropriately; Regularly monitor, analyze and evaluate the efficiency of capital use; Periodically conduct financial analysis and evaluate the performance of the company, and needs to build and train high quality human resources ACKNOWLEDGEMENT I would like to send my sincere thanks to my supervisor: Dr Nguyen Thi Hai Duong, whose kind support and continued advices helped me with the completion of my thesis I would like to send my great thanks to professors, lecturers and staffs at the VNU - International School for the knowledge and experience that have been shared through their lectures during the master program My thesis was also completed with the help from my superiors and colleagues at Bao Viet Group Last but not least, I would like to express my gratitude to my friends and family for giving me encouragement and supports during my studying time and completion of my thesis Thank you! Phan Dinh Tam TABLE OF CONTENTS ABSTRACT ACKNOWLEDGEMENT TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES CHAPTER 1: INTRODUCTION The necessity of the research Research objectives Research Scope Research Methods Structure of the thesis CHAPTER II: THEORETICAL BACKGROUND AND LITERATURE REVIEW 10 CONCEPT AND CLASSIFICATION OF BUSINESS CAPITAL 10 1.1 Concept of Business Capital 10 1.2 Characteristics of Business Capital 10 1.3 Classification of Business Capital 11 1.3.1 Based on the Source of Capital Formation 11 1.3.2 Based on the characteristics of capital rotation 12 1.3.3 Based on the scope of capital mobilization 13 EFFICIENCY OF USING CAPITAL IN ENTERPRISE 14 2.1 The concept of efficient use of Business Capital 14 2.2 Indicators for evaluating the efficiency of using Business Capital 15 2.3 The necessity to improve the efficiency of using business capital of enterprises in market economy 27 FACTORS IMPACT ON THE EFFICIENCY OF USING BUSINESS CAPITAL 27 3.1 External factors 28 3.2 Internal factors 28 CHAPTER III: DATA ANALYSIS AND SOLUTIONS TO IMPROVE THE EFFICIENCY OF CAPITAL USE AT BAO VIET GROUP 30 I SITUATION OF USING CAPITAL AT BAO VIET GROUP (2016-2018) 30 Business performance of Bao Viet Group 30 1.1 History and Development of Bao Viet Group 30 1.2 Management Organization of Bao Viet Group 31 1.3 Results of Business Performance of Bao Viet Group 34 The situation of effective use of business capital at Bao Viet Group (2016 2018) 40 2.1 The situation of using business capital 40 2.2 Using Capital at Bao Viet Group 50 ASSESSMENT ON THE ORGANIZATION AND EFFICIENCY OF USING CAPITAL IN BAO VIET GROUP 81 3.1 Achievements 81 3.2 Existences 82 II SOLUTIONS TO IMPROVE THE EFFICIENCY OF CAPITAL USE AT BAO VIET GROUP 84 Bao Viet group’s development orientations towards 2025 84 1.1 Socio-economic context at home and abroad 84 1.2 Developmental orientations 85 Solutions to improve the efficiency of capital use at Bao Viet Group 88 2.1 Financial solutions 88 2.1.1 Adjust capital structure in a more reasonable way 88 2.1.2 Strict management and improve the profitability of capital in cash 89 2.1.3 Focus on investing in architectural houses, means of transmission and improving the efficiency of using existing fixed capital 91 2.1.4 Determine the Group's need for regular working capital appropriately 94 2.1.5 Regularly monitor, analyze and evaluate the efficiency of capital use 95 2.2 Others solutions 96 2.2.1 Periodically conduct financial analysis and evaluate the performance of the company 96 2.2.2 The company needs to build and train high quality human resources 97 Conditions to implement recommendations 97 3.1 For the state 97 3.2 For the Group 99 CONCLUSION 100 REFERENCES 102 LIST OF TABLES Table number Table name Number of pages 2.1 Some financial information of Bao Viet Group (2016-2018) 35 2.2 Assets structure of Bao Viet Group (2016-2018) 40 2.3 Structure of business capital of Bao Viet Group (2016 – 2018) 44 2.4 Some targets on the structure of capital sources of Bao Viet Group (2016– 2018) 46 2.5 Capital financing model of Bao Viet Group (2016– 2018) 47 2.6 Working capital structure of Bao Viet Group (2016– 2018) 49-50 2.7 The solvency assessment criteria of Bao Viet Group in 2016-2018 54 2.8 The average receivable and receivable turnover cycle of Bao Viet Group in 2016– 2018 57 2.9 Compare the appropriated and occupied capital of Bao Viet Group (2016-2018) 60-61 2.10 Some indicators evaluate the efficiency of using working capital of Bao Viet Group (2016 – 2018) 64 2.11 Long-term assets structure of Bao Viet Group (2016 – 2018) 67 2.12 Fluctuation of tangible fixed assets of Bao Viet Group in 2018 71 2.13 The situation of depreciation of fixed assets of Bao Viet Group (2017, 2018) 74 2.14 Effective use of business capital of Bao Viet Group (2016-2018) 77 2.15 Business plan of Bao Viet Group in 2020 85 LIST OF FIGURES Table number Table name Number of pages FIGURE 2.1 Organizational model of Bao Viet Group 31 FIGURE 2.2 Market share of non-life insurance in Vietnam in 2017 37 FIGURE 2.3 Market share of new life insurance revenue in Vietnam in 2017 38 FIGURE 2.4 Structure capital sources Bao Viet Group in 2016 – 2018 42 CHAPTER 1: INTRODUCTION The necessity of the research Globalization is an indispensable trend now, which is taking place strongly It is creating a link and increasing exchange between countries, organizations or individuals in all angles: Culture, economy, politics Considering the economic perspective in general and finance in particular, it can be seen that fierce competition is increasing among countries in general and domestic enterprises in particular An enterprise that wants to survive and develop must have the qualifications, knowledge and management capacity In particular, capital is an important factor affecting the business performance Indeed, any business that wants to scale up or restructure the industry must have a stable source of capital After that, enterprises must know how to preserve and develop their capital to improve their financial capacity In the current economic context, Bao Viet Group is a special-class enterprise, which is allowed by the Government to pilot the equitization to establish a Group operating under the model of Parent Company and Subsidiary Company After more than 10 years of equitization, with the technical support of HSBC strategic partner and Sumitomo Life, the Group has achieved quite good results in core business sectors (insurance) and other financial sectors such as Banking, Securities, Fund Management Strictly controlling investment management and cash flow management has helped the Group effectively to manage capital use, thereby contributing significantly to the Group's business results in the past 10 years However, in the process of implementing the investment, the management and use of capital in Bao Viet Group still has certain limitations and shortcomings, so I choose the topic: “Improving the efficiency of using capital at Bao Viet Group” to analysis of the Group's business capital efficiency, as well as some comparisons in the Group's core business: Bao life insurance and non-life insurance Research objectives Based on theoretical issues and actual situation of using capital of Bao Viet Group, the thesis proposes solutions to improve the efficiency of capital using at the Bao Viet Group In detail, the sub objectives are followings: Solutions to improve the efficiency of capital use at Bao Viet Group By analyzing the organization and use of business capital at Bao Viet Group, it can be seen that besides the achievements, the Group still has limitations that need to be overcome to improve the efficiency of capital use and Realizing the goals of the leadership in the coming years Based on the practical research conducted at the Group, I propose some solutions to improve the efficiency of capital use at Bao Viet Group as follows: 2.1 Financial solutions 2.1.1 Adjust capital structure in a more reasonable way As analyzed above, Bao Viet Group's capital structure in 2018 is not really reasonable Currently, in the capital structure of Bao Viet Group, equity capital still accounts for a large proportion (in 2018: accounting for 96.74%), in which the contributed capital of Shareholders is majority (in 2018: The remaining 54.70%) is the equity surplus (2018: 25.6%) and undistributed NPAT In the current difficult economic situation, with the largest Shareholder, the Ministry of Finance (68.84% of charter capital) having to tighten public spending, the mobilization of additional capital from the major Shareholder is the Ministry of Finance hard to In case the Group promotes financial investment for its Subsidiaries to increase competitiveness in the market, the possibility of lack of capital will exist Besides, Vietnam's stock market is risky, the share capital surplus of the Group will be highly volatile when the market has many bad news Therefore, the Group needs to focus more on using short-term capital to invest in short-term assets, to ensure the principle of financial balance in the following years but still to ensure the principle of Basic short-term capital is used to invest in short-term assets, long-term capital is used to invest in long-term assets To ensure financial security, the Group needs to promote the recovery of receivables, especially receivables from associated companies Along with that, increasing the appropriation of capital from the suppliers, especially the 88 service providers, the appropriation from the Group's service providers is on a downward trend, the Group is missing an opportunity occupying large and regular value of capital, increasing this amount, the Group will improve the situation in 2019, increasing the efficiency of capital use What needs to be done now is to speed up the construction progress to complete the construction items most likely to be completed, trying to minimize receivables (appropriated from suppliers, by how to improve the reputation of the business, seek suppliers to offer preferential policies for businesses) from which the Group will get a short-term capital investment for working assets, from capital misappropriation 2.1.2 Strict management and improve the profitability of capital in cash Cash management is an essential element for every business In fact, the Group's current cash reserve in 2018 is VND 41,778 million, although this amount of cash has the advantage of increasing the Group's liquidity, but with the Group's cash reserve Relatively high current, affecting the profitability of the Group Therefore, the Group should take measures to ensure the reserve of capital in cash in a reasonable manner and in accordance with its payment needs A reasonable amount of money in cash will ensure the regular spending needs of the business and help businesses take advantage of business opportunities due to being proactive in payment and payment activities, while reducing Cash storage costs The Group's level of cash reserves must be based on the regular spending plan, balancing receivables and payables in the period to avoid cash stagnation while enterprises can use that capital to make a profit To sustainably increase the amount of cash, the company can exploit in three activities: Cash from operating activities, cash from investing activities and cash from financial activities - From production and business activities: This is considered to be the most likely source of cash supply for the Group in 2019, because this year many projects and high-value projects are completed, creating revenue, which 89 increases the Group's cash Therefore, the Group needs to take measures to inspect and supervise the projects, ensuring the completion on schedule, avoiding losses and wastes, which are stuck in unfinished works and projects - From financial activities: Increase from debt or equity From the above analysis, we see that at the moment, in accordance with the situation of the Group, it is advisable to increase money by increasing debt to improve the capital structure of the company in a more reasonable way - From investing activities: The increase from this activity is mainly from the Group's financial investments including investments in new joint venture projects in 2019 in the fields of health and logistics, clean energy will be fully deployed in 2019 In addition, the Group needs to consider measures to increase the collection process such as speeding up the collection of debts from the Group's associated joint ventures The long-term money management solutions are: - Identify and manage the amount of money circulated appropriately - Develop a process of cash collection and payment, bank deposits Set clear rules about the responsibilities and powers of the departments involved in the payment process - Adhere to the principle of non-part time, separating accounting and cashier roles There is a plan for regular and irregular counting of cash balances, comparing the number in the books and the actual balance In order to manage capital in cash effectively, the finance and accounting department must make a weekly, monthly, quarterly and yearly revenue and expenditure plan so that the enterprise can take initiative in cash sources and offer the most reasonable reserve in each period Based on the established plan, the finance and accounting department compared with the actual arising to find out the cause of the difference and try to limit the large and abnormal expenditures compared to the plan, regularly balancing the revenues and expenditures If it is found that a surplus can be used for short-term investments to bring revenue 90 and profits to the Group or if the deficit is available, appropriate measures are used to supplement the capital or extend the debt 2.1.3 Focus on investing in architectural houses, means of transmission and improving the efficiency of using existing fixed capital As we all know, fixed assets of enterprises are assets of great value, long use time for business activities and must meet all the criteria of fixed assets at the same time space and standards of value For the characteristics of the financial group, the largest fixed asset is architectural houses The current business strategy of the Group is based on the principle of ensuring that the growth of architectural houses is original and enhanced Media and technology efficiency are one of the decisive factors to the competitiveness of enterprises because: - It is a decisive factor to the business capacity of the business - Help increase productivity, increase product quality, reduce product costs and increase sales to help businesses be competitive in the market In this regard, timely and reasonable investment in fixed asset innovation will become a vital issue for every business - Timely renovating a fixed asset can also help businesses reduce staffing and free labor Help businesses reduce major repair costs, lower energy consumption and create advantages in attracting investment capital, creating prospects for businesses to dominate regional and international markets Considering the fixed assets of Bao Viet Group, the fixed assets are quite new and regularly upgraded Therefore, the Group needs to have a close monitoring plan to maximize the capacity of the fixed asset system to serve the Group's business operations In addition, the Group needs to conduct an annual assessment and re-check the technical status of the high-value assets specifically to conduct the determination of the net real value of fixed assets to avoid the declaration excessive exploitation of fixed assets but not performing regular maintenance and repair, affecting the operation capacity of such fixed 91 assets In addition, the reassessment of the asset portfolio helps the Group's management to assess which portfolio investments are reasonable, effective and which ones are not necessary from which to obtain appropriate handling measures In case of necessity to invest in renovating equipment, the Group needs to consider carefully before investing to avoid investing in obsolete and lowtech assets leading to low capital use efficiency When investing in new fixed assets, it is necessary to focus on purchasing assets with high life cycles and modern technologies, and the Group also needs to select reputable machinery suppliers who have passed the quality appraisal to have the timely support when needed Where machinery and equipment of great value require immediate renewal, while the Group is limited in capital, the form of financial leasing may be applied Financial leasing is a financial tool that helps the Group with a small amount of capital can still use modern machines, means of great value, with all the desired technical features, and at the same time help The Group has additional medium and long-term capital to expand its business without requiring collateral In addition, the Group should continue to apply the form of operating lease, both to reduce the surplus of architectural materials when not in use, and to reduce the costs of maintenance, maintenance and repair, thereby reducing costs business operation fee The Group needs to train suitable personnel to manage and operate fixed assets in order to exploit the capabilities of fixed assets while avoiding losses due to using fixed assets in the wrong way, maximizing the working efficiency of children people as well as buildings and structures Improve the efficiency of using fixed capital: In case the Group needs to preserve and develop fixed capital after each business cycle, capital preservation should be carried out in both physical and value aspects: 92 - Preservation of capital in kind: not only retaining the original material form of fixed assets but also maintaining the initial production capacity regularly and not letting the assets be damaged before the term - Preserving fixed capital in terms of value: it is necessary to maintain the purchasing power of fixed capital at the present time compared with the time of initial investment regardless of the fluctuations in the eldest, the exchange rate and Scientific and technical progress Therefore, the Group needs to take the following measures: - The Group needs to invest in the right direction of fixed assets after having carefully studied the needs and market fluctuations in products, scientific progress, operating capacity, life expectancy, compatibility between qualifications labor and modernization of houses and structures, means of transport, transmission equipment At the same time, it is necessary to make plans for investment in fixed assets in the coming years, sources of mobilization and calculation of investment efficiency criteria to consider and consider the change of architectural houses In addition, the Group needs to strengthen the management of fixed assets, assign fixed assets to specialized departments to manage and monitor regularly - Promptly detect fixed assets which are not needed, need to be liquidated to recover capital in time and avoid causing capital stagnation - Regularly carry out repairs and maintenance of buildings and structures, means of transport, transmission equipment, and management tools, including regular and major repairs The regular repair is to maintain the normal operation, major repairs to restore the operational capacity of machinery and vehicles However, in the case of major repairs, careful calculation of its effectiveness should be considered, considering the cost of repairs and the investment in new purchases to decide accordingly - Select the appropriate depreciation form for each type of fixed asset, in which the depreciation must calculate both tangible and intangible depreciation Depreciation must comply with the regulations of the Ministry of 93 Finance to flexibly use the depreciation fund to meet the needs of its business capital when there is no need to purchase fixed assets Summary: In order to preserve and develop fixed capital, the Group needs to properly assess the causes of the situation that it cannot conserve capital so that it can take timely measures such as assessing the value of fixed assets to make proper deduction fully deduct depreciation expenses so as not to lose capital, limit the effects of intangible wear and tear, attach importance to renovating equipment and implement maintenance and repair regimes and take measures to prevent risks in business 2.1.4 Determine the Group's need for regular working capital appropriately Currently, the Group is applying the percentage method on revenue to determine working capital needs based on the revenue plan of the planned year This method is quite appropriate and accurate in the context of items such as accounts receivable and payables that are relatively stable according to revenue, along with the Group's revenue plan must be relatively close to reality In recent years, the Group's business activities have been quite stable, especially with the Group's long-term financial activities However, given the specific nature of the financial industry, which is very sensitive to adverse developments in the domestic and international markets, the determination of the aforementioned working capital implies a high risk of calculating working capital On the other hand, in addition to the Group's main business activities, the Group is shifting its investment into real estate business, which has a distinctive rotation characteristic compared to Xi's traditional business activities Therefore, it is less accurate to include revenue from activities and calculate the percentage as a basis for determining working capital needs for the planned year Therefore, the current method of determining the Group's current working capital needs is not appropriate Proposing the Group to use the direct 94 method to accurately determine the need for regular working capital, avoiding the risk of wasting or a shortage of capital due to incorrect determination of capital needs 2.1.5 Regularly monitor, analyze and evaluate the efficiency of capital use The efficiency of capital use is reflected in the profit earned by the enterprise in the period and the profitability level of a business capital In terms of capital use, the profitability of the enterprise represents the overall result of the process of coordinating the organization to ensure capital and use business capital of the enterprise In order to fully evaluate the efficiency of capital use, it is necessary to consider from many different angles and use many different criteria to evaluate the profitability of business capital as well as business capital turnover, profitability ratio profit before interest, tax on business capital The Group needs to have a monitoring and planning table to evaluate the efficiency of working capital, fixed capital and business capital to be achieved Periodically evaluate these indicators and compare with the plan, analyze and assess the situation, find out the causes and give solutions If the results are achieved as planned or exceed the plan, there should be timely commendation to encourage the efforts of employees for that achievement, on the contrary, the Group needs to timely correct its operations and push quick capital turnover rate, increase the rate of return on capital To be able to implement these measures, the company's accounting department needs to take an active role in planning, forecasting and advising the Board of Directors Regularly update, collect and analyze data in each period to synthesize and compare between periods to serve as a basis for reporting for planning work For working capital: The Group needs to accelerate the working capital turnover, in order to accomplish that, the Group needs to accelerate the capital circulation at every stage of the business process and market development and increase sales during the period 95 For fixed capital: The largest proportion of the total capital of the enterprise is the equity, so long-term investment decisions are vital for the operation of the business The preservation and development of fixed capital of enterprises ensures the existence and competitiveness of enterprises in the market Therefore, businesses need to pay attention to unusual fluctuations or decreased targets One of the measures to preserve and develop the fixed capital is to use it effectively Therefore, the Group needs to pay attention and accelerate the speed of fixed capital, increase the rate of return on fixed capital through key investment activities and bring high economic efficiency to the Group 2.2 Others solutions 2.2.1 Periodically conduct financial analysis and evaluate the performance of the company In order to improve the efficiency of business capital use, the Group needs to have a proper view of the actual situation, achieved results and remaining limitations in the management and use of capital from which to introduce timely adjustment measures In order to this, periodically, monthly, quarterly and yearly, the Group's accounting - finance department needs to perform well financial analysis and evaluate the efficiency of the Group's business capital The analysis should focus on solving a number of issues as follows: - Determining the structure and fluctuation of business capital in the period to know how the capital is allocated to the stages, is it reasonable and which capital is stagnant at the stage - Identify the structure and volatility of business capital, debt ratios, equity to see what sources are financed from the funding period, how much and how secure financial side or not - Determine solvency ratios to see if the Group is able to pay its due debts 96 - The Group needs to calculate and compare the performance measures using each type of capital in particular and business capital in general to see if the use of this period capital is more effective than the previous period, slow capital rotation in any stage and the cause from so that give the development orientation in the coming years 2.2.2 The company needs to build and train high quality human resources The human factor is one of the important factors determining business efficiency in general and capital efficiency in particular In the relatively open and competitive labor market today, recruiting high quality human resources is not too difficult, however, keeping employees attached to the company for a long time is not It must be easy because the demand for qualified and experienced labor is always interested and sought by other companies Therefore, in order to achieve a high business efficiency, Bao Viet Group needs to have suitable plans for its personnel recruitment Based on the annual business plan, the Group needs to determine the number of employees needed to evaluate its existing human resources and appropriate recruitment plan if there is a shortage to ensure the operation Business is going on stably and continuously In addition, the Group needs to have a fair and equitable remuneration policy, based on the employees' dedication to the Group At the same time, the Group needs to focus on training to improve the professional skills and professional diversity for officials and employees by regularly sending staff to participate in training and professional training programs domestic and foreign operations Conditions to implement recommendations 3.1 For the state It is necessary to develop a stable and sustainable macro policy This is one of the basic conditions to create a stable and healthy operating platform of financial markets The management of monetary and fiscal policies should 97 have a harmonious and close coordination, aiming at the goal of financial stability - It is necessary to set up a framework to handle systemic risk, maintain financial stability, considering this as a prerequisite for the economy to develop sustainably, minimize the negative impact between the financial market and economy and vice versa Strengthen financial supervision with continued efforts and perseverance in fully applying the basic principles of financial supervision issued At the same time, establishing a framework for dealing with financial instability, reducing the probability of disruption, ensuring the process of dissolution takes place in an orderly manner, limiting the spread of risks to other institutions and markets financial school Therefore, the work of dissolution and coordination mechanism of action between the concerned agencies should be clearly defined and institutionalized - Focus on developing financial infrastructure Currently, Vietnam has basically equipped a relatively adequate financial infrastructure to support the development of financial markets such as the Law on Credit Institutions, the Law on Enterprises, the Law Securities, Insurance Law, VAS accounting standards, Vietnam auditing standards have been issued and revised increasingly closer to international standards However, it is necessary to ensure safety, maintain the stability and soundness of financial markets and handle crises - Enhancing information transparency because the disclosure of information is very important, affecting the interests of market participants Inadequate and timely information provision will cause inaccurate judgments and damage to both investors and businesses, seriously damaging the trust, the health and sustainability of the market The information provided should ensure transparency, accuracy, meaning and timeliness to the authorities, partners, investors and the community 98 - Synchronous development of financial markets and financial services: Strengthening operational capacity of organizations participating in financial markets and financial services; Restructuring and strengthening risk management in credit institutions and in securities companies, considering this as one of the most important factors for financial institutions; Continuing to develop and improve operational efficiency and the role of professional associations in the field of finance, accounting and auditing 3.2 For the Group - It is interested in facilitating the development of human resources, training, developing, appointing, rotating and consolidating the organizational structure; ensure the attention of Party committees and authorities Strengthening decentralization and decentralization in disciplinary action - Continue to develop and finalize internal management regulations for the investment department and post-investment management - Concerned about creating conditions for financial resources and working conditions for capital representatives: developing financial management and spending mechanisms in a more proactive manner, creating favorable conditions for transportation, modern, independent working tools, investment in building management software connected to the Group to update monthly reports - Quarterly, 6-month and annual meetings to organize preliminary review, review, evaluation and timely adjustment policies to ensure the maximum efficiency of capital representation Has a clear incentive and penalty mechanism for representatives who perform well or not well in the management of the Group's investments - Need to develop a strategic plan for investment in the group This plan will be considered as a basis for implementing investment activities on both sides as the organization seeking investment opportunities and organizing the implementation of investment In this plan, it is necessary to determine the required time period for each implementation 99 CONCLUSION Through the research content presented above, the thesis offers some conclusions as follows: In the period of 2016 - 2018, Bao Viet Group has been continuously growing, affirming its leading position in the field of insurance finance in Vietnam The Group is gradually promoting internal resources to attract external resources to develop owner's equity from production and business efficiency The Group's member companies have had relatively stable growth, making an important contribution to the business performance of the Group However, the analysis of data and reality shows that the capital structure is still more unreasonable, the investment portfolio is less, current investments are ineffective, the efficiency of asset use is not really high, The policy mechanism is still inadequate, the efficiency indicators are not low, but the potential for risk reduction in subsequent years These shortcomings are due to many different reasons, but the research results have pointed out that one of the main causes affecting the financial - insurance market situation in Vietnam is becoming increasingly fierce Therefore, in order to improve the efficiency of capital use, the Group's parent company needs to focus on solutions to promote investment, diversify investment fields, actively use cross-selling products, promote the brand , maintaining the leading position in Vietnam's financial and insurance industry The dissertation was written on the basis of combining theory and practice in my work I hope the project will contribute a small part in improving the efficiency of capital use at Bao Viet Group The general solutions and solutions proposed by the dissertation aim to help businesses solve these issues in order to improve the efficiency of using business capital at Bao Viet Group in the 2016-2018 period Those 100 solutions and groups of solutions are calculated and quantified based on scientific, practical and workable solutions, which will surely bring the effective use of capital to Bao Viet Group./ 101 REFERENCES Financial statements after auditing of the Parent Company - Bao Viet Group in fiscal years 2015, 2016, and 2017 Report on appraisal of financial statements of Parent Company - Bao Viet Group of Financial Controller at the Group of 2015, 2016, 2017 Bui Van Van and Vu Van Ninh co-editors (2013), Financial Publishing House, "Corporate Finance" Curriculum Nguyen Trong Co and Nghiem Thi Tha co-editors (2010), Financial Publishing, Curriculum "Enterprise financial analysis" Luu Thi Huong, Editor-in-Chief (2005), Education Publishing House, Second Edition, Statistical Publishing House, "Corporate Finance" Curriculum Nguyen Minh Kieu, Editor-in-Chief (2009), Statistical Publishing House, Curriculum "Corporate Finance" Other similar theses and topics Specialized magazines and newspapers on finance and financial markets Website: Baoviet.com.vn 102 ... and theoretical basis of the organization of capital use; - Research and evaluate the status of the organization of using capital in enterprises in general and the status of organization using capital. .. Group in the period of 2016–2018 The researcher will study the system and theoretical basis of the organization of capital use, research and evaluate the status of the organization of using capital. .. relationship between the rate of after-tax profit on equity and the efficiency of using the whole capital, the rate of after-tax profit on revenue and the coefficient of capital on equity (or the