Some solutions to enhance the performance of capital utilization in petrovietnam finance corporation pvfc

VIETNAM NATIONAL UNIVERSITY, HANOI HANOI SCHOOL OF BUSINESS PHAN THU HA SOME SOLUTIONS TO ENHANCE THE PERFORMANCE OF CAPITAL UTILIZATION IN PETROVIETNAM FINANCE CORPORATION (PVFC) Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS SUPERVISOR: DR NGUYEN VIET DUNG HANOI - 2012 TABLE OF CONTENTS ACKNOWLEDGEMENTS ABSTRACT TÓM TẮT TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES LIST OF ABBRIVIATIONS INTRODUCTION CHAPTER 1: LITERATURE REVIEW ON THE PERFORMANCE OF CAPITAL UTILIZATION IN FINANCE COMPANY 1.1 Introduction to finance company 1.1.1 The definition and classification of finance companies 1.1.2 The role of finance companies 1.1.3 The major activities of finance company 1.2 Improve the performance of capital use in finance companies 1.2.1 Definition of capital efficiency 1.2.2 The needs to improve the performance of capital use in finance companies 1.2.3 Assessment on the performance of capital use in finance company 1.3 Factors affect the performance of capital use in finance company 1.3.1 The impacts of State policies and regulations 1.3.2 Impacts of the development strategies and mechanism of the parent company 1.3.3 The internal factors of the finance company CHAPTER SUMMARY CHAPTER 2: ASSESSMENTS ON THE PERFORMANCE OF CAPITAL UTILIZATION IN PVFC 2.1 Overview of PetroVietnam Finance Joint Stock Corporation (PVFC) 2.1.1 Company introduction 2.1.2 Scope of business 2.1.3 Business performance of PVFC in recent years 2.2 Assessment on the performance of capital utilization in PVFC 2.2.1 Assessment of capital mobilization activities 2.2.2 Assessment of capital utilization 2.2.3 Analysis of performance indicators of capital efficiency 2.3 Achievements, limitations and causes 2.3.1 Achievements 2.3.2 Limitations and causes CHAPTER SUMMARY CHAPTER 3: SOLUTIONS TO ENHANCE THE PERFORMANCE OF CAPITAL UTILIZATION IN PVFC 3.1 Opportunities and challenges for PVFC and its development orientation 3.1.1 Opportunities and challenges 3.1.2 PVFC’s development orientation 3.2 Solutions to improve the efficiency of capital use at PVFC 3.2.1 Solutions to enhance capital mobilization activities 3.2.2 Solutions to improve the performance of credit activities 3.2.3 Solutions to improve the performance of financial investment, project investment 3.3 The overall solutions for PVFC 3.3.1 Investment, innovation, improvement in banking technologies 3.3.2 Improve the capability of assets- liabilities management 3.3.3 Enhancing the capacity of the internal control system 3.3.4 Marketing solutions 3.3.5 Focus on developing human resources 3.4 Recommendations 3.4.1 Recommendations for SBV 3.4.2 Recommendations for PVN CHAPTER SUMMARY CONCLUSION BIBLIOGRAPHY SOME SOLUTIONS TO ENHANCE THE PERFORMANCE OF CAPITAL UTILIZATION IN PETRO VIETNAM FINANCE CORPORATION (PVFC) Phan Thu Ha MBA candidate, 2009-2011 Hanoi School of Business – Vietnam National University, Hanoi Supervisor: Dr Nguyen Viet Dung August 2012 INTRODUCTION Necessity of the thesis Vietnam has been shifting from the centralized economy towards the market economy and continues its integration into the global economy The development and utilization of financial resources plays an important role in developing Vietnam economy The establishment of financial intermediaries including finance companies in recent decades has contributed significantly to provide a more efficient allocation of capital, channeling the capital from people who lack of effective investment opportunity to the person who are capable of investing such capital resource to produce goods and service in a more effective way Regarding the development of economy, it should be aware of the strong development and contribution of State economic groups that are engaged in multi-sectors businesses However, together with the development and expansion of those businesses, there is a big question of how to mobilize and utilize the capital resources effectively As the result, this leads to the establishment of finance company under the State economic groups to facilitate the capital allocation among the member companies as well as individuals and organizations from different economic sectors Vietnam Oil and Gas Group is the leading State own economic group with numerous successful projects which bring remarkable benefit to our country’s society and contribute significantly to state budget In order to better manage the capital resources from the capital-surplus area to the capital-shortage areas as well as attracting more capital from outside the Group, in 2000, the Petro Vietnam Finance Company, now known as Petro Vietnam Finance Corporation, was established to perform this essential function With more than ten years of experience, besides some achievements that the Corporation accomplished, there are still difficulties and challenges ahead that require the Company seeks appropriate measures to overcome such limitations Among the continuously fluctuated situation of global finance, with the purpose of conducting the research on the operations of mobilizing and using capital of PVFC as well as figure out some practical solutions to promote its performance in order to contribute to the development of PetroVietnam, I choose the topic “Some solutions to enhance the performance of capital utilization in Petro Vietnam Finance Corporation (PVFC)” Research aim and objectives The overall aim of the study is to analyze and assess the current practices of capital utilization and to make suggestions to enhance the performance of this operation in PVFC The thesis aims to achieve the following objectives: (1) Systemize the theoretical framework of finance companies in general and the capital utilization in particular In addition, a set of assessment criteria will be discussed to evaluate the performance of the capital use in a finance company (2) Develop the detailed analysis and assessments on the actual situation of capital utilization in PVFC (3) Propose some practical suggestions and recommendations for the enhancement of capital utilization in PVFC Scope of the research The overall business performance of a finance company is a broad topic Therefore, this thesis only focuses on the performance of capital utilization in PVFC from year 2008 to year 2011, including three main activities that directly related to the topic, which are the capital mobilization, credit activity, and investment activity in order to develop suggestions and recommendations to enhance the performance of capital use in PVFC Research methodology The main sources of data are selectively collected from secondary sources including both local and foreign materials such as data collected from the researched company, from other banks, books, internet, magazines, science reviews, and related journals The methods applied in this study include: logical reasoning combined with historical materialism, quantitative and qualitative analysis, statistic method, comparison method, economic analysis, method of synthesizing to evaluate the performance of capital utilization in PVFC Significance of the research This thesis identifies numerous weaknesses in the current utilization of capital in PVFC; helps PVFC recognize and have further actions in solving its shortcomings This thesis has proposed some practical solutions in order to enhance the performance of capital use in PVFC case which is the foundation for the improvement in the capital allocation among PVN and its members Based on the same business environment and same operating models, other finance companies under the State economic groups are suffering the same issues as PVFC Therefore, the recommendations for PVFC provided in this thesis can be seen as a practical case study for other finance companies to consider and apply into their businesses CHAPTER 1: LITERATURE REVIEW ON THE PERFORMANCE OF CAPITAL UTILIZATION IN FINANCE COMPANY 1.1 Introduction to finance company 1.1.1 The definition and classification of finance companies Finance company is a form of non-bank financial institution with the function of using the financial sources including its own capital, customer deposits and other funds for the purposes of lending, investment, providing advisory services in finance, monetary fields, as well as perform some other services as prescribed by law, but are not allowed to provide the payment service or receive deposits with term of less than year as a commercial bank Classification by business activities, finance companies can be divided into three main types as follows: First, sale finance company; Second, consumer finance company; Third, business finance company Based on the relationship of ownership, Finance companies are divided into independent finance company and finance company established by economic groups 1.1.2 The role of finance companies The role of the finance company for the economy in general In short, finance company is a financial intermediary in the economy market, despite some limitations compared to commercial banks, for the market economy, finance companies play an important role as follows: Firstly, finance companies generate capital for investments to develop the economy based on their advantages Second, through the credit activities, finance companies facilitate the sustainability and expansion of businesses of all economic sectors Third, finance companies strengthen the development of securities markets Forth, finance companies also play the role as an important channel for capital flows of foreign investment The role of finance companies in economic groups First, the establishment of finance companies in economic groups helps expand business operations, diversify businesses, reduce risk and generate new source of revenues Second, the establishment of finance companies under economic groups assists those groups in seeking and mobilizing external funding channels Third, the establishment of finance companies helps holding companies effectively manage the optimal capital Fourth, the establishments of finance companies help parent companies to harness the power on the financial and monetary market Fifth, the establishment of finance companies in economic groups helps facilitate activities of the group towards a systematic, centralized and uniform orientation 1.1.3 The major activities of finance company 1.1.3.1 Mobilization activities  Capital mobilization from customers  Issuance of shares, bonds, debt certificates  Borrowings from credit institutions  Borrowings from parent company 1.1.3.2 Activities of capital utilization a Lending Based on forms of loans, lending activities include: Advances to customers; Overdraft; Commercial paper discounting Based on the types of borrower, lending activities include: Business loans; Loans to consumers; Loans to other credit institutions; Loans to parent company and member companies Based on the loans’ term, lending activities are divided into: shortterm, medium-term, and long-term loans b Investment activity Investment activities include securities, joint ventures, equity contributions, other long-term investment in projects and businesses 1.2 Improve the performance of capital use in finance companies 1.2.1 Definition of capital efficiency Capital is the concept which includes all the elements arranged to produce goods and services Capital is put into production in various forms It consists of tangible assets and intangible assets as well as all the accumulated knowledge of the business, management and operational levels of leadership as well as staffs’ qualification From different concepts and definitions, in the opinion of the author: “The effective use of capital in credit institutions in general and finance companies in particular are assessed in terms of financial performance as the result of capital activities, reflecting the correlation between the financial performance and the total capital use, represented through the use of resources, governance capacity, financial capacity and the level of risk control on the financial activities” 1.2.2 The needs to improve the performance of capital use in finance companies loan demand, and other cash needs Liquidity risk of finance company in economic group arises when debts come to due and the company is requested to make instant payment to numerous debts while the cash reserves of the company remained at low level Loan - to - deposit ratio (LDR) is one of the ratio to assess the security level of assets Capital risk Capital risk in finance company is exposed where the owner capital does not sufficiently compensate for the deposits of the customers and creditors when facing operational risk CAR is a fundamental measure for managers to assess the financial reliability of the finance company Environmental risks Including the legal risk, economic risk, and risk of competition 1.3 Factors affect the performance of capital use in finance company 1.3.1 The impacts of State policies and regulations The role of state management influences the overall activities of finance company in general and the capital use activities in particular through the formulation, maintenance and promotion of and socioeconomic and legal environmental needed to support financial intermediaries operate efficiently 1.3.2 Impacts of the development strategies and mechanism of the parent company Business Strategy Based on the development strategy of the parent company, the finance company takes initiative to identify and select their own business strategy in accordance with the environment and specific 10 conditions in each areas, each market regions; increasing profit while promoting the synergy of economic group Operating mechanism Economic group is a form of economic integration; it only survives and sustainably develops through applying the operating mechanism which concerns the harmony of the economic interests between member companies individually and the whole group 1.3.3 The internal factors of the finance company 1.3.3.1 The level of technology development Technology is an essential platform if any credit institution wants to develop new products Accompanying with the technology is a complete system of internal control and administration, decisionmaking; this is a determinative factor to the viability of a financial institution 1.3.3.2 The level of corporate governance and control system Corporate governance is general a series of relations between board of management, board of director, shareholders and other stakeholders within a business Corporate governance is a mechanism to identify the target of enterprise, tools to achieve those objectives and monitoring the performance If the company is properly organized, the decision making process will be shortened, and still minimize the imprecision, ensuring both operational security and better customer services, thereby improving the quality of capital use’s performance 1.3.3.3 Capacity of human resources People are always crucial to the success or failure of any organization As the businesses become increasingly sophisticated, 11 the requirements of human resources are increasingly elevated accordingly 1.3.3.4 Company policy for capital utilization In the policy for capital utilization, the credit policy plays the most essential role because this is the core activity, however contains greatly potential risks CHAPTER 2: ASSESSMENTS ON THE PERFORMANCE OF CAPITAL UTILIZATION IN PVFC 2.1 Overview of PetroVietnam Finance Joint Stock Corporation (PVFC) 2.1.1 Company introduction PetroVietnam Join Stock Finance Corporation (PVFC), a nonbanking financial institution, previously known as PetroVietnam Finance Company, was founded in June 19, 2000 to contribute significantly for the vigorous development of PetroVietnam PVFC was established with the principal function of providing the fund arrangement to the Group’s members, effectively use and maximize the profit of the industry’s finance resources 2.1.2 Scope of business Capital mobilization Credit activities: provide loans; discounting, re-discounting and pledging commercial paper and other short term valuable papers; providing guarantee Other business activities 2.1.3 Business performance of PVFC in recent years 2.1.3.1 Asset size and structure 2.1.3.2 Structure of liabilities and owner’s equity 12 Loans to customers always account for the most substantial proportion in the asset structure and tend to increase over time, showing the major business of PVFC is lending activity Financial investment activities also play a significant proportion among the asset structure 2.1.3.2 Structure of liabilities and owner’s equity Funds are mobilized primarily from PVN, entrusted investment fund and borrowings from other credit institutions Deposits from customers although accounted for minor proportion of total capital, however it has been improved gradually in order to raise more capital and customer diversification 2.1.3.3 Some major business indicators Revenues from the service activities such as capital arrangement, payment guarantees, and corporate bond issuance consultancy…had gained noticeable progress compared with the previous two years In 2011, credit activities’ income constituted 54% of PVFC’s total income, therefore although greatly affected by the market, however the income from credit activities still contribute significantly to the total profits 2.2 Assessment on the performance of capital utilization in PVFC 2.2.1 Assessment of capital mobilization activities In recent years, PVFC mobilize capital through traditional forms of mobilization activities in commercial banks including savings in VND and foreign currency with deposit term of over 12 months In 2011, the percentage of savings tended to be enlarged at a high growth rate, given the need to meet huge demand for capital of the economy, particularly the projects implemented by PVN’s members, thus expanding this mobilization channel is an indispensable task in 13 the coming time in order to ensure sufficient capital for business activities Through the issuance of bonds, PVFC not only generate the initiative and flexibility in the utilization of funds but also create an attractive portfolio for investors, PVFC bonds are rated reasonably in terms of safety and profitability However, from 2011, PVFC has been restructuring its capital structure, thus the proportion of trusted fund is declining rapidly, instead by developing the mobilization from other credit institutions and deposits from customers 2.2.2 Assessment of capital utilization 2.2.2.1 Credit activities Analysis of lending terms By 2011, the short-term loans proportion rose to 44.3% reflecting a prioritization in loans restructuring between the medium-long term and short term to match the mobilization of capital structure In order to ensure a sufficient level of liquidity, PVFC’s administrators shall examine the restructuring of loans towards regulating the medium and long term loans at a lower level, more focusing on short term loans to ensure appropriate capital turnover The ratio of funds raised from short term sources are used for medium and long term loans of PVFC currently maintained at 27% in 2010 and 23.2% in 2011 which was lower than the level prescribed by the SBV at 30%, can be regarded as an acceptable level 2.2.2.2 Assessment of financial investment PVFC’s orientation focused on securities companies in the oil industry, banking and financial sector, energy, and luxury tourism 14 The structure and investment portfolio’s quality had been improved, reducing the reliance on market fluctuations The fixed income had been gradually increased through investment in bonds, trusted investment with fixed income This can be considered as a proper direction when moving towards less risky securities, help improve the liquidity and maintaining the profitability of the property 2.2.3 Analysis of performance indicators of capital efficiency 2.2.3.1 Assessment of business performance, profitability indicators Compared with VPB, SHB or against the industry average number, PVFC shows its relatively low profitability NIM indicator of VPB and SHB can be seen obviously at a much higher rate in comparison with PVFC Although PVFC held an enormous productive assets which is equal to a medium sized bank, its high interest expenses eventually resulted in low net interest income The assessments suggest the low profitability, inadequate performance of PVFC, and not commensurate with its asset scale 2.2.3.2 Assessment of loans’ quality PVFC maintained their qualified debt to total outstanding debt at over 93%, overdue debt in 2010 and 2011 were respectively 6.52% and 5.06% (see table 2.12) High rate of overdue debt is also reflected by a large amount of provision for credit losses By the end of 2nd quarter of 2012, the overdue debts was 9.6%, PVFC suffered loss from net interest incomes, revealing weaknesses in risk management and credit activities’ potential difficulties If take the additional factor of Vinashin and Vinalines’ debts into account, PVFC’s assets still remained at relatively low level and bad debts tends to increase 15 2.2.3.3 Assessment of liquidity Overall, the liquidity of PVFC is poor and depends heavily on interbank market PVFC should promote policy to restructure the asset- liability structure appropriately in order to enhance liquidity, ensuring the sustainable performance of the company 2.3 Achievements, limitations and causes 2.3.1 Achievements PVFC can easily obtain information as well as specific profession knowledge of the industry PVFC has been continuously expanding its size of loans Currently, PVFC is actively restructuring the asset-liability structure in the direction of risk diversification PVFC has conducted the analysis of customers though information obtained by different channels The risk management system of PVFC is identified as a synchronized combination of many factors PVFC has effectively established close ties with other credit institutions Corporation has been developing the information technology infrastructure and applying operation management, HRM, and accounting software 2.3.2 Limitations and causes a Limitations First, the capital mobilization structure remains inappropriate; PVFC is seriously dependent on the interbank market for the lending purposes, resulted in a low quality asset structure, while the deposits from customers always constituted a small proportion 16 Second, the term mismatching problem, the medium and long term mobilization only plays a minor part of total capital, while the nature of PVFC’s investment portfolio is that the large and medium-long term projects accounts for the majority, therefore PVFC needs to use short term capital for the medium and long term loans resulted in low liquidity level Third, bad debts and overdue debts tended to increase over time, much greater compared with commercial banks of similar scale, suggesting a high credit risk and low level of credit risk management regardless PVFC’s attempts to apply the internal credit risk rating system Fourth, the investment portfolio was not developed rationally, it still suffers losses on trading securities affected by the common market situation, and the loans was still granted to some sensitive areas such as real estate b The causes of limitations b.1 Objective causes Legal environment for the operation of financial companies in Vietnam are insufficient, weak and not consistent The business environment was unstable, especially impacted by the severe financial crisis in 2008 The current organization apparatus of PVN is complex, including several management levels reflecting the characteristic of the traditional management model of state-owned companies in Vietnam b.2 Subjective causes Corporation’s staffs and employees are qualified and were provided with fundamental knowledge and professions of financial field, however still lack of experience in business organization of PVN and 17 its members, also lack of understanding on specialized technologies of investment project The activities of approaching and marketing to customers who are members of PVN to examine the capital requirements, meeting the short-term loan demands with preferential interest rates were not paid enough attention Weak coordination among the members of PVN CHAPTER 3: SOLUTIONS TO ENHANCE THE PERFORMANCE OF CAPITAL UTILIZATION IN PVFC 3.1 Opportunities and challenges for PVFC and its development orientation 3.1.1 Opportunities and challenges The offered opportunities First, international integration is the driving force of domestic credit institutions’ reform, forcing the domestic credit institutions in general and PVFC in particular to operate based on the market principles Second, easing the restrictions for foreign financial institutions is a required condition to attract direct investment into the finance-banking sector Third, in the future, PVFC has potential chance to approach the international financial markets The challenges First, the institution issue of banking sector still reveals drawbacks Second, banking technological infrastructure and obsolete payment systems increases the risk of being lagged behind other foreign institutions 18 Third, low performance and competitiveness, high delinquency, lack of capital, low financial capacity and low asset quality Fourth, credit risk is not controlled and evaluated sufficiently Fifth, products and services are not diversified, limited service quality 3.1.2 PVFC’s development orientation Developing PVFC based on the financial position of the petroleum industry and targeting at the demands for development investment of PVN with comprehensive and diversified services 3.2 Solutions to improve the efficiency of capital use at PVFC 3.2.1 Solutions to enhance capital mobilization activities Developing mobilization channels First, mobilizing capital from the PVN and its members is one of the most important channels Second, promote the relationship building progress with commercial banks and other non-bank credit institutions, Third, PVFC should put more effort in raising funds from other economic entities and individuals Fourth, raising funds through the issuance of valuable papers including bonds, deposit certificates, promissory notes, this seems to be a relatively effective and safe channel for any credit institution to raise fund Fifth, raising capital from foreign markets Applying appropriate interest rate policy In order to develop the flexible interest rate policy as well as fulfill the profitability target, PVFC need to take into consideration all factors affecting the interest including: market interest rates, 19 operating expenses, economic environment and development prospects Improving capital structure Thus, PVFC should reduce its dependence on interbank market by increasing the mobilization from market I (mobilized from economic entities and individuals which is similar to operation of commercial banks, especially when PVFC are shifting to apply commercial bank’s model) A reasonable ratio between the mobilization from market I and market II is required 3.2.2 Solutions to improve the performance of credit activities Improving credit quality and credit risk management First, concentrate on handling of overdue debts, bad debts to improve the healthy financial status of PVFC Second, continuous expanding network and scope of activities to enlarge the volume of investment lending to the economy Third, implement client policies and interest rate policies, implement the selection of key customers and focused investments, avoiding widespread investment Fourth, the capital investment must be consistent with the structure of mobilized capital and ability to convert the term period of capital resources Fifth, cautiously consider and assess customer’s condition by collecting as much information as possible Sixth, identifying customer segments according to some specific criteria Seventh, improving the credit procedure Eighth, PVFC shall strictly comply with policy and measures such as building lending portfolio, allocation of credit lines by industry sector 20 Completing the information system for customer evaluation To be able to analyze and evaluate clients objectively and accurately, improving the information system for customer assessment is a critical concern needs to be completed To further improve the credit scoring system Credit scoring system of the Corporation was built quite detailed and accurate, but the credit personnel still face difficulties in applying this system due to many factors, including insufficient or faulty information provided by customers Thus, the monitoring and inspection after the loan is an urgent requirement for not only PVFC but also the entire banking system, each credit officer should recognize and precisely follow this procedure Improving the capability of analysis and evaluation of customers In the evaluation process, the following issues need to be focused on  Legal capacity of customers  The financial capability of customers  Evaluation of collaterals Dealing with liquidity risk PVFC shall develop its liquidity strategy There are three types of liquidity strategy, the first strategy relies on the “assets”, the second relies on the “liabilities”, and the third is the balanced structure using both assets and liabilities for resolving the solvency whenever needed An appropriate strategy for PVFC at present is the neutral strategy which balances both liquid “assets” and “liabilities” at reasonable proportions In this manner, PVFC will maintain its solvency and 21 reasonable profit; this is a necessary strategy while the financial market still shows instabilities and risks Dealing with interest rate risk 3.2.3 Solutions to improve the performance of financial investment, project investment To invest in shares, long-term capital contribution in PVN unit members at their IPO or the establishment of new companies Firstly, market analysis is an important task and is one of the decisive factors to the existence and development of investment activities Secondly, regarding debt securities, PVFC shall classify and assess quality based on the issuer, maturity, risk, yield Thirdly, developing security portfolio in favor of safe securities for being easily converted into cash To lower the investment portfolio of securities, shifting to the model of commercial banks Handling risks in investment activities PVFC should diversify the security portfolio and select the items with high liquidity The diversification has a positive effect when the market shows pessimistic fluctuation 3.3 The overall solutions for PVFC 3.3.1 Investment, innovation, improvement in banking technologies First, focus investment on modernization and upgrade for headquarter and its branches Second, conduct research on the technological development in the world, purchase solution packages 22 Third, upgrade computer platforms, developing modern server systems Fourth, organization of information systems shall be consistent, updated, accurate and secure 3.3.2 Improve the capability of assets- liabilities management Firstly, ensuring the appropriate acceptance level of risk in accordance with safety regulations Secondly, this department should implement and manage funds transferred internally between member companies to encourage performance against waste or unnecessary capital shortages Thirdly, developing the policy on the balance-sheet structure management, formulating financial indicators to effectively and promptly manage liabilities and assets 3.3.3 Enhancing the capacity of the internal control system Enhancing the inspection and supervision in order to ensure all activities must be checked before, during and after the implementation for examining that all operations are carried out in accordance with legal regulations, and in accordance with the procedures and regulations stipulated by PVFC to minimize risk 3.3.4 Marketing solutions PVFC should establish marketing department at headquarters, with a clear marketing policy and should convey the detailed marketing plan to the branches and transaction offices throughout the system in order to implement comprehensive marketing solutions to build image and boost confidence of customers 23 3.3.5 Focus on developing human resources Training program; Training contents; To promote a training plan for young managers and executives; Selection of credit officers; To retrain staff; To establish rewards 3.4 Recommendations 3.4.1 Recommendations for SBV Early complete the legal system of economic groups, commercial banks and other credit institutions to create a favorable business environment and implement proactive roadmap for global economic integration 3.4.2 Recommendations for PVN To allow PVFC to rise charter capital With many years of experience in the oil and gas industry, PVN can support PVFC in training staffs To support PVFC in term of stimulating financial independence Entrust PVFC to be on behalf of the PVN to perform tasks on mobilizing capital from local and foreign credit institutions 24 ... performance in order to contribute to the development of PetroVietnam, I choose the topic ? ?Some solutions to enhance the performance of capital utilization in Petro Vietnam Finance Corporation (PVFC) ”... the performance of capital use in finance companies 1.2.1 Definition of capital efficiency 1.2.2 The needs to improve the performance of capital use in finance companies 1.2.3 Assessment on the. .. UTILIZATION IN FINANCE COMPANY 1.1 Introduction to finance company 1.1.1 The definition and classification of finance companies 1.1.2 The role of finance companies 1.1.3 The major activities of finance