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TABLE OF CONTENTS
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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ABBREVIATION
Vietnam Agribank Gold Joint Stock Company AJC
Vietnam Agribank Gold Joint Stock Company Ha Dong
Branch
AJC HaDong
State Bank of Vietnam SBV
Board of Director BoD
LIST OF FIGURES
LIST OF TABLES
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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CHAPTER 1: INTRODUCTION
1.1. Rationale
In recent years, the economic crisis in Vietnam has crept into every industry. Real
estate bubble, bad debts, gold speculation, and unemployment are the frequently
mentioned through the mass media, the scientific research or more in the daily life of
every citizen of Vietnam. It no longer lies in the economic forecast, which is taking
place within the economy of Vietnam. The economic crisis affected directly or
indirectly to the life, work of the people, to the production and business activities of
economic organizations in Vietnam. The state agency also gave a lot of new laws
which have policies to stabilize the economy and put out of this crisis. However, it
takes time to verify the effectiveness of the policy. Right now, the market competition
is fiercer than it ever. Competition for survival and competition for development are
now moving toward Vietnam. In order to do that, businesses need to have the right
business strategy and strong management capability. Buying and selling good of the
company will affect to the development in the current business, especially commercial
enterprises.

That is also the overarching and expressed issue that can illustrate the quality and
efficiency of economic management of the corporation. All these improvements in
content innovation methods and measures applied in management only really makes
sense if they increase business efficiency. Business performance is not only as a
measure of quality, reflecting the level of organization, business management, but also
as a matter of survival of the AJC HaDong in the current period. As Vietnam's
economy is integrating the world economy will open up many opportunities and many
challenges, especially in the field of business risk potential gold and hard to predict
correctly. Therefore, I choose the topic: “Improve the business efficiency of Vietnam
Agribank Gold Joint Stock Company Ha Dong Branch” to be my bachelor’s thesis in
finance.
1.2. Research objective
The thesis aims to analyze, synthesize, and evaluate; from that it gives some solutions
in order to improve the business efficiency of Vietnam Agribank Gold Joint Stock
Company Ha Dong branch. The theoretical and practical figures related to the business
efficiency at the Vietnam Agribank Gold Joint Stock Company Ha Dong branch
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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1.3. Scope of Research
Mainly focus on the indicators that show the business efficiency of Vietnam Agribank
Gold Joint Stock Company Ha Dong branch. All the figures, tables and cases were
collected from the materials of 2 years 2013 and 2014.
1.4. Research methodology
The thesis used many methods of analyzing, summarizing, synthesizing, and
comparing the statistics of the Vietnam Agribank Gold Joint Stock Company Ha Dong
branch through 2 years 2013 and 2014. The main source of information is secondary
data, including legal documents such as law documents; publications such as reports,
magazines or other publications related to the subject.

CHAPTER 2: GOLD TRADING BUSINESS AND THE BUSINESS
EFFICIENCY.
2.1. The role of gold in society
Gold has played a special important role in major of societies since thousands years
ago. Not only with a nation, a region of all known civilization considered gold as a
common trading good, but also every people around the world used gold. From the
time of Egypt - Ancient Greek, medieval, early modern, and so far, gold is always
adored. The classes, castes in any society passionately found, appropriated and stored
gold. Thus, gold is one of the very few values, which helped people to communicate
with the others regardless of differences in race, religion and history. Currently we
can trace our use of gold back to at least 6200 years ago. A variety of objects made of
gold have been found in Bulgaria from 4500-4000 BC. Gold artifacts dated to 5000
years ago have been found in Egyptian tombs; gold was already being beaten into
sheets, foil and wire in Egypt at this time. The Egyptian word for gold was ‘nub’ and
is related to Nubia, the land south of Egypt where much of Egypt’s gold was obtained.
Humans have known gold and treasured it since prehistoric times. Who discovered
gold? We do not know, it was discovered before there were written records. We
know there is a good chance the discovered found it in a river bed.
Gold is usually associated with rocks such as quartz and pyrites. As these rocks
undergo weathering or erosion by water, the gold can be washed into rivers allowing
people to find it easily.
1.1.1. Feature of gold.
The scientific symbol for gold is Au. It is number 79 on the periodic table of elements.
Gold is not magnetic, but it is an excellent conductor of electricity. Its melting point is
1945° F. Gold is not corroded or tarnished by moisture, or oxidized (rust) by the
effects of oxygen and water, or affected by ordinary acids, as most other metals are.
Deposits of gold that have lain inside a mountain or under a streambed or even on the
ocean’s bottom will remain there and be rather unaffected until moved by the natural
forces of the earth-or taken by man.
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A

Gold has two attributes of goods, which are existing-use value and value worth.
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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Value in use of gold: Gold is used pretty much the same everywhere. Originally, due
to the brilliant colors, the easy processing and non-corrosive, gold is used for jewelry,
art and supplies serving mystical religious ceremonies. The applications of gold has
made people appreciate gold, used it to adorn themselves and regarded it as a symbol
of power. Since thousands of years ago, the gold objects were placed in the Pyramids
of Egypt's popular or how your donation Faraón decorated and map content in the
palace of the Emperor of China 'Son of Heaven '. This day, in addition to serving the
needs of jewelry and beauty, because of the predominant characteristics Vietnam, gold
is used in high-tech fields such as military technology, electronic technology and
travel information universe.
The value worth of gold: To have gold, it is necessary in gold mining and
manufacturing. Thus, the value of gold is worth of labor crystallized in it.
Gold is widely used in jewelry and coinage. It is also used in dental work as crowns, as
gold plating for decoration and as gold thread in embroidery work. The gold content in
alloys is usually measured in carats (k), with pure gold defined as 24k.
Gold is also one kind of currency. Gold became the basis of money in many ancient
civilizations, and even today most countries maintain large reserves of gold for
financial credibility. Most modern currencies, however, are not tied to gold as they
were in the days of Gold Standard, described by economist John Maynard Keynes as
“a barbarous relic.” In addition, the undeniable value of gold is in the ritual, religious,
symbol of the power of the ruling class, in admiration of the man with the jewelry, art
work associated with capital priceless art and beauty is praised by women, in other
words, in addition to the typical value of a commodity you go through many centuries,
just use as gold coins. When the productive forces and the social division of labor
developed to a certain extent, the exchange of goods thrived and people had to use the
special commodity serves as the general price level. Increasing in division of labor and
production market is expanding across the state have more general character makes

by 14% its value. The specter of inflation growing global threat, of which the most
obvious manifestation is the price of oil continues to climb each mold, mold after mold
is higher than before and the Federal Reserve lowered interest rates to constantly fend
with the devastation of the credit crisis, while other central banks to try to keep interest
rates high to curb inflation pressure as heavy dollar. The "Tsunami" of the global
financial crisis has caused severe consequences: the loss, disruption, nationalization,
bankruptcy, insolvency. Governments must make plans to provide support for the
economy but the solution is not to break the good signal for the market. Moreover, the
specter of deflation fears were put era "bubble" of commodity markets went into the
deep end of which have been the most reduced crude oil at up to 70% from the peak in
July 7 and constantly slipping so far, despite the efforts of the largest oil producing
countries such as OPEC, Russia, Saudi Arabia has slashed output. The demand for
gold as a safe items are not lost even the economic situation is not bright, especially
repercussion from the collapse of Lehman Brothers and the financial institution has
taken another giant price Gold peaked on 10/10/2008 at $950 per ounce, while the
trouble has not been thoroughly removed from the leading economy and the Fed
decided to take the lowest interest rates in history, plus measures to pump huge
amounts dollars into the economy to fight the crisis is putting pressure on depreciation
back to dollars.
1 The situation of gold trading in Vietnam
After over two years of implementation of the new regulatory framework for
managing the gold market generally and Decree 24 particularly, the management
solution the gold market has achieved positive results.
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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The implementation of Decree 24/2012 / ND-CP dated 03/4/2012 on the management
of gold trading activities (Decree 24), the State Bank of Vietnam (SBV) has urgently
promulgate guidelines and give some solutions to closely manage the gold market.
Now, the solution of management gold market has achieved some positive results.
In late 2012, the network business of buying, selling gold bars is set up, managed with

positive effects. Especially, since the beginning of 2014 until now, at various times,
although the world gold market has now increased, a sharp fall in domestic gold
market remains volatile, SBV does not have to use reserves to intervene in foreign
exchange markets.
Besides, the demand for gold bars in the economy has fallen sharply. Gold bar demand
and supply shift from shortages to balance. At the time of world gold price increased
by reducing abnormal, domestic prices do not fluctuate sharply, no longer of "gold
fever" caused social unrest as before.
Specifically, during the year 2014, international gold markets are more complicated
with multiple sessions with large amplitude fluctuations. Highest gain is $1,380 /ounce
in the March of 2014. In the first 4 months of 2014, domestic prices are generally
volatile and the trend of international gold prices but adjusted rate decreased less than
the fluctuations of the international gold price. During the year, the lowest price of the
market is 34.86 to 34.9 million per tael, repeated twice in the first and early in
November. By the end of month 12/2014, the domestic gold price fell from 35.13 to
35.17 million / tael (buy - sell).
To conclude, in 2014, world gold price movements are relatively complex cause a
significant impact on the domestic gold price volatility, but with the policies that the
SBV deployed, the gold market management has achieved positive results. Stable
developments in the gold market have contributed to maintain the stability of the
exchange rate, the foreign exchange market, increase foreign exchange reserves and a
stable state macroeconomics.
3 Kinds of gold investment products in Vietnam.
Vietnam's financial market has been developing in recent years; thus, joining the
derivative products as well as the investments of investors have to face with more
difficulty than in developed markets. Trading in international markets not only needs
the diversity of goods (money, gold, precious metals, oil, agricultural products), but
also need to ensure that all the products for the investment requirements. Additionally,
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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profit from the difference between the international price of gold and the price
domestic gold when there are factors that impact.
2 Gold options and futures.
Gold options and futures are the gold speculation subsidiaries which are transient
hypothesis on the future gold costs. The businesses are more intricate and exchanging
hypothesis however not in physical gold. Consequently, those methods for ventures
are suitable for more experienced and advanced speculators. To purchase alternatives
is unsafe, a larger number of financial specialists lose than win. The unmistakable
playing point is that the financial specialist can control a huge speculation with a little,
and be restricted, measure of cash. The detriment is that alternatives terminate inside a
settled time of time. Gold choices and prospects may bring an extensive fortune; it
additionally may be lost all in a moment.
3 Gold deposits
To ensure payment requirements, credit gold is used to ensure the value of money. For
example, in the real estate transaction, the buyer before payment or not buy a house,
the bank bought gold held in custody to prevent the price of gold up. Conversely, if the
seller has not received money gold afraid of declining in gold price, they can borrow a
bank loans for sold out. When received by the buyer they will pay the money back to
the bank. Suppose an investor predicted gold prices rise, banks will borrow money to
buy gold deposits. The amount of the mortgage loan is due bought some gold to the
bank, and the bank loan will be paid to the shop to sell gold brought gold. Conversely,
if investors predict gold prices fell, they would go to the bank gold loans sold to stores.
Stores bring gold to buy the amount of money is put into the bank prior to the
collateral for the loan of gold. Thus, investors only spend a small amount of 1/10 or
less as specified percentage of banks that can perform this operation. Banks only do
their job performance, but the customers do their investment. This service may occur
risks for both sides, if the wrong direction, the investor may suffer property loss very
much, because they use their capital as financial leverage. Because of gaining big

Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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Business model of trading jewelry is the business that the products are gold jewelry,
handicrafts such as ring, chain, ring, earrings, pins, and other subjects. Gold jewelry
market is constantly developing and expanding. Not to mention the biggest markets of
the industrialized countries, it is the French market, the US, Italy, Japan, Hong Kong,
India. Currently the gold market tends to thrive in Asia where the economy is growing
at a relatively fast pace, gold jewelry market development and sales with many diverse
forms as exhibited sold in the commercial center, on the internet, shop page health,
especially international fairs are held regularly around the world has boosted the sale
of jewelry. Consumers today tend to want to quickly change the design and style with
the more unique designs. They are not only interested in the quality of raw materials as
before. Therefore requires line, production technology in the field of jewelry
manufacturing increasingly improved to keep up with market demands.
2 The business efficiency of gold trading business.
We can base on some different ways when considering the term ‘efficiency’. However,
generally, business efficiency is critical to the accomplishment of any undertaking.
Business productivity is a wide term that makes a great deal of progress. Each part of
your business, from money to human resources, from generation to conveyance, can
be filled with inefficiencies that drive expenses up. At the point when surveying
expenses, it is critical to recollect that there's more than cash in question: expense is
time, quality, and great will. Being productive business means making choices that
bring the advantages to one sector of a business without unexpectedly taking from
another. Knowing the ventures to take and the apparatuses to use to make your
business more productive will help you get the best results in any event conceivable
expense. Quantitatively speaking, the economic efficiency of the production-trading
reflected the relationship between results and costs money. Qualitatively speaking, it
reflects the influence of manufacturing activities - trading for solving these
requirements and economic objectives, requirements and political objectives - society.
Gold business includes of trading gold, ensuring the balance of gold trading accounts,

Return on Equity (ROE) =
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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The amount of net income returned as a percentage of shareholders equity. Return on
equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested.
2 Liquidity ratios
Current ratio =
A liquidity ratio that measures a company's ability to pay short-term obligations
The current ratio can give a sense of the efficiency of a company's operating cycle or
its ability to turn its product into cash. Companies that have trouble getting paid on
their receivables or have long inventory turnover can run into liquidity problems
because they are unable to alleviate their obligations.
Cash ratio =
The ratio of a company's total cash and cash equivalents to its current liabilities. The
cash ratio is most commonly used as a measure of company liquidity. It can therefore
determine if, and how quickly, the company can repay its short-term debt. A strong
cash ratio is useful to creditors when deciding how much debt, if any, they would be
willing to extend to the asking party.
3 Activities ratio
Cost of goods sold to sale ratio =
The cost of goods sold (COGS) to sales ratio shows the percentage of sales revenue
used to pay for expenses which vary directly with sales.
Administration ratio =
The sales to administrative expense ratio is an asset utilization measure that allows
analysts to understand the level of overhead costs required to support a given level of
revenues. Investor-analysts oftentimes track this ratio over time, since the ratio should
decrease as a company achieves economies of scale.
Assets turnover =
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A

On March 24
th
, 2003, AJC was agreed by Prime Minister of
the Socialist Republic of Viet Nam and authorized by Governor of the State Bank
of Viet Nam. Chairman of the Board of Directors of Agribank Vietnam has signed the
decision No.44/Decision-BOD for establishing the Jewelry Fine Art Agriculture
Development Bank Corporation, which is an independent accounting unit under the
Vietnam Bank for Agriculture Development Bank, and is ranked as class I.
On June 25
th
, 2003, Governor State Bank of Vietnam signed Decision No. 655/2003 /
Decision-SBV for merging Jewelry Fine Art Vietnam on Agriculture and
Development Bank of Vietnam. Jewelry Fine Art Company received the Jewelry
Companies in Hanoi, Jewelry Companies in Ha Tay, Jewelry Crafted Companies.
On June 29
th
, 2007, Chairman of the Board of of Agribank Vietnam has signed
Decision No. 654/Decision-BOD for approving to change the Jewelry Fine Art
Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A
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Agriculture Development Bank Corporation with 100% state capital into joint-stock
companies.
On June 24
th
, 2008, the Chairman of the Board of Directors of Agribank Vietnam has
signed Decision No. 732/Decision-BOD for approving share schemes, and changing
the Jewelry Fine Art Agriculture Development Bank Corporation to the General
Corporation with a capital of VND 206 billion.
On May 9
th

9,000. The total assets of the system increased 25 times today. The average income per
capita income increased 5 times now. Dividends paid to investors often greater than
the interest rate plus inflation. AJC's shares on the stock market reach a high price, and
have increased liquidity. AJC is environmentally friendly, reliable members, partners,
investors and customers. AJC constantly improve product quality, service. AJC often
interested in improving the material life and spirit of the staff, members of the AJC,
ensure the dedication, entitlements, rights are honored equally among all members.
The greatest happiness of every member of AJC is devoted their abilities.
1.1.3. AJC Ha Dong.
1.1.3.1. General information.
Agribank Gold Corporation Vietnam Joint Stock Company - Ha Dong branch was
established in 1981.
Abbreviation: AJC Ha Dong
Head office: 537 Quang Trung Street, Phu La Ward, Ha Dong District, Hanoi,
Vietnam.
Tax code: 0100695362 to 003
Phone: 04 33824352
On May 30
th
, 1981, the State Bank of Vietnam decided to establish a Gold and Jewelry
Center of Ha Son Binh Province, the predecessor of AJC Ha Dong branch. At that
time, the organizational form was “Sufficient revenue cover Expense”
On March 12
th
, 1988, the company was renamed Ha Tay Jewelry Company depended
on the State Bank of provinces. At that time, all business activities were directly under
the control of the Director of State Bank of Ha Tay province.
On June 2
nd
, 1989, State Bank gave the decision No. 71-NH/HT to allow Ha Tay

Supervisor: PhD. Pham Thi Dinh Nguyen Quang Huy – Class: Advanced Finance 53A