UNIVERSITY OF ECONOMICS AND BUSINESS VIETNAM NATIONAL UNIVERSITY HA NOI aS eS FACULTY OF BANKING & FINANCE GRADUATION THESIS 2023 FACTORS EFFECTING BUSINESS PERFORMANCE OF PLASTIC MANUFACTURING ENTERPRISES LISTED ON THE STOCK MARKET IN VIETNAM Lecturer: MBs. Do Dinh Dinh ID Card: 19050690 Class: QH2019E-TCNH-CLC1 Ha Noi, 2023 GUARANTEE Thereby declare that this thesis is the result of my own research and has not been published in any other research work. The use of results, quoting other people's documents ensures compliance with regulations. The contents of citations and references to documents, books, and information are published in works, journals and websites according to the reference list of the thesis.
Author THANK YOU I would like to thank the teachers at the University for their help during my study at the university. I would like to express my deep gratitude to my supervisor MBA. Do Dinh Dinh who wholeheartedly guided, guided, and helped me to carry out and complete this thesis. The author would also like to thank his family and friends, who have been an invaluable source of spiritual encouragement to the author throughout the process of studying, researching and completing the thesis.
Sincerely thank you! TABLE OF CONTENTS GUARANTEE WC`0ON THANK YOU LIST OF ACRONYMS LIST OF TABLES LIST OF CHARACTERS PREAMBLE 1. Object and scope of research 10 5. Contribution of research 11 6. Research Methods ll 6.
Qualitative research methods 11 6. Quantitative research methods li 7. Document overview 11 CHAPTER 1: THEORETICAL BASIS 15 1. Overview of business performance of companies 15 1.
Measures of business performance 18 1. Factors affecting financial performance. Research models 38 CHAPTER 2: RESEARCH METHODS 42 2. Qualitative research sequence 42 2.1 How to choose a sample 45 2.
Data analysis 46 CHAPTER 3: RESEARCH RESULTS 48 3. Characteristics of the plastic industry and listed plastic companies in Vietnam 48 3.1 Characteristics of Vietnam's plastic industry 48 3.2 Listed plastic companies in Vietnam 50 3. Situation of production and business activities of plastic companies in 5 years 2018-2022. Revenue growth rate in the period 2018-2022.
Profit growth rate in the period 2018-2022. Scale of Vietnam plastic companies in the period of 2018-2022. Descriptive statistics of research data 60 3. Scale “Business results (KD) ” 62 3.
Scale “Capital structure of the enterprise (CTV)” 65 3. Scale "Ability to pay" 66 3. Results of factor analysis on the scale of factors affecting the business performance of plastic manufacturing companies listed on the Vietnam stock market 68 3.2 Result offactor analysis on the scale offactors affecting business performance of plastic manufacturing companies listed on Vietnam stock market 71 3. Check the fit of the regression model 75 3.
Linear regression results 75 Test of the relationship between the independent variables 77 CHAPTER 4: CONCLUSIONS AND RECOMMENDATIONS 78 1. Periodically re-evaluate the capital financing policy to make timely adjustments 78 2. Manage the growth process well to bring about sustainable efficiency and create a good environment for the development of plastic business 79 2. Improve efficiency of working capital 79 2.
Increase revenue of plastic enterprises 80 2. Completing and complying with the construction investment process in Vietnam Plastics enterprises 81 3. Recommendations to state authorities 82 3. For plastic businesses 83 LIST OF REFERENCES 85 APPENDIX 88 LIST OF ACRONYMS Financial Financial report Statements BQ Average CSH ONLY; Owner DT Revenue profit Profit VCSH Equity LTD Limited TS Asset NV Capital SSC Accounting balance sheet BSC Business Report BCLCTT Statements of cash flows CP Share DN Enterprise NV Capital TS Asset NPAT Profit after tax DTT Net Revenue business Manufacturing business LIST OF TABLES Table 1.1: Trend analysis table of business results 21 Table 1.
Asset structure analysis 26 Table 1. Analysis of capital structure 27 Table 2. Scale of components and factors affecting business performance of plastic manufacturing companies listed on the stock market Vietnam 47 Table 2.2: Correlation level 51 Table 3.1: Main groups of plastic products produced by Vietnam 55 Table 3.2 List of the twenty largest plastic companies on the stock market 57 Table 3.2 Revenue of the plastic industry in the period of 2018 - 2022 59 Table 3. Survey sample information 67 Table 3.4: Cronbach's alpha scale “Business results (KD)” 69 Table 3.5: Cronbach's alpha scale “Assets (TS)” 70 Table 3.6: Cronbach's alpha scale “Capital structure of the enterprise” 71 Table 3.7: Cronbach's alpha scale "Ability to pay" 72 Table 3.8: Cronbach's alpha scale "Profitability" 73 Table 3.
KMO and Bartlet's Test (KMO and Bartlett's Test) 74 75. exploratory factor analysis results Table 3.11: Total variance explained for the influencing factor Total Variance Explained 77 correction factor 8780 Table 3. Analysis of variance ANOVA 80 Table 3. Linear regression results 82 Table 3.
Results of testing hypotheses 82 LIST OF CHARACTERS Figure 3.1 Output of Vietnam's plastic industry in the period of 2018 - 2022 54 Figure 3.2 Total export turnover of Vietnam's plastic products period 2018 - 2022 60 Chart 3. Profit after tax of some plastic companies listed on the stock market in the period of 2018 - 2022 62 Figure 3.4 Vietnam market structure by business revenue size 64 Figure 3.5 Net revenue of some plastic enterprises period 2018 - 2022 65 PREAMBLE 1. Research engine In the current period of economic integration, businesses that want to survive and develop sustainably need to have appropriate strategies and steps depending on the actual conditions of the business (capital, human resources, etc. The goal of any business when conducting production and business activities is also to maximize the value of the owner's assets, so business with high profit margins plays an important role.
Effective asset use reflects the level of exploitation, use and management of assets of the enterprise to maximize profit for the owner. In the current situation of the extremely developed economy, there are many businesses that are formed to do business in many different fields, with many large and small scales. Among those enterprises, there are a number of businesses that cannot exist because they have not found the right direction and encountered many problems. Besides, there are many businesses that have been extremely successful.
One of the reasons for businesses to survive, stand and grow is to have a strong financial potential to conduct production and compete effectively. From that fact, an enterprise that wants to be aware of its viability in order to improve its production and business efficiency must go into a thorough analysis of its annual financial performance. To survive and develop, businesses always need to improve their business performance. Operational efficiency Business efficiency is the comparative relationship between the results achieved in a business process with the costs incurred to achieve that result.
Plastic production is one of the industries that is expected to benefit greatly from the EU-Vietnam Free Trade Agreement in both import and export. Today, Vietnamese plastic products are appearing in 160 markets around the world. Despite being impacted and affected by the COVID-19 pandemic, the export turnover of Vietnam's plastic industry still reached 5 billion USD, up 35% compared to 2020. In which, the EU is one of the markets.
continuously imported from plastic suppliers in Vietnam. Compared with competitors, Vietnam's plastic industry has advantages and abundant cheap human resources, especially enjoying preferential tariffs. With the EVFTA coming into effect on August 1, 2020, all Vietnamese plastic products exported to EU countries will enjoy a tax rate of 0%. Not only exporting with a tax rate of 0%, but Vietnam's plastic industry in 2022 will also benefit from imports in the EU market.
However, at present, due to objective and subjective factors, the business efficiency of plastic manufacturing companies is still limited, financial resources have not been properly managed and exploited. Especially where assets account for a large proportion of value, diverse in types, so the problem of asset management and use will face many problems arising during operation. Specifically, the efficiency of asset utilization tends to decrease, the profit-to-asset ratio is also decreasing, revenue is slow, costs are increasing. In fact, many factors affect not only the size of the company; Growth; Administrative debts receivable from customers; Investment in fixed assets; Capital configuration; Business opening hours.
Besides, due to objective factors such as law; Economic factors; Cultural and social factors; Scientific and technological factors; Factor of natural conditions and infrastructure. Therefore, theoretical research, assessing the current situation and making suggestions to improve the influencing factors in order to improve the business performance of the company plays an extremely important role. Research objective - Building a research model of factors affecting business performance. - Propose recommendations to improve the business efficiency of plastic manufacturing enterprises in Vietnam.
Research question What factors affect the performance of plastic manufacturing companies listed on the Vietnam Stock Exchange? How do these factors affect plastic manufacturing companies listed on the Vietnamese stock exchange? How to overcome the negative factors to improve the performance of plastic manufacturing enterprises listed on the Vietnamese stock exchange? 4. Object and scope of research Research object: Factors affecting business performance of plastic manufacturing companies listed on Vietnam stock market. 10 Time range: 05 years, from 2018 to 2022. Spatial scope: 19 companies producing plastic and plastic products listed on the Vietnam stock market.
Contribution of research - Apply theoretical issues and evaluate factors affecting business performance of plastic manufacturing companies listed on Vietnam's stock market. From there, propose recommendations to improve the business efficiency of plastic manufacturing companies listed on Vietnam's stock market. Qualitative research methods - Research documents: This method is carried out at the stage of analyzing, synthesizing and systematizing theories and studies of domestic and foreign authors related to the research problem. - Consult experts: Consult experts and instructors to set up the survey to ensure scientific, clear and explicit expression.
Quantitative research methods - Survey by questionnaire: Using a system of questionnaires through the form of a survey to evaluate the factors affecting the business performance of plastic companies. - Mathematical statistics: Using SPSS software to process data and analyze the results obtained. Thesis structure Chapter 1: Theoretical basis Chapter 2: Research Methods Chapter 3: Research results Chapter 4: Conclusions and recommendations 8. Document overview There have been various studies on the effectiveness of the company.
One of the earliest studies is the study of Krishnan and Moyer (1997) - Performance, capital structure 11 and home country: An analysis of Asian corporations. The authors provide an empirical study of firm performance and capital structure from large firms in four Asian economies. The research sample includes 81 companies from Hong Kong, Singapore, and South Korea during the expansion period from 1992 to 1997. The study uses 4 dependent variables to measure company performance, including ROE, ROIC, PTM and RETURN.
The two leverage measures used are debt to market value of equity and long-term debt to market value of equity. The results show that both financial performance and capital structure are affected by the country of origin. Specifically, firms in Hong Kong will have a higher ROE, and the effect of different foreign firms is not statistically significant. The study also reported that companies from South Korea have higher financial leverage than companies from other countries.
As a result, leverage does not seem to affect the financial performance of the company. Onaolapo Abdrahman Adekunle - Capital structure and firm performance: Evidence from Nigeria (October 2010) - A survey survey of 30 non-financial companies listed on the Nigerian stock exchange from 2001 to 2007 to measure the impact of factors determinants of the performance of these companies. The authors use quantitative research method, with OLS regression model. The research results show the following factors: debt ratio, size (assets), proportion of fixed assets, growth rate (assets), asset turnover, age of the company and industry.
Businesses have different degrees of impact on business results (return on total assets-ROA and return on equity-ROE). Debt ratio and fixed asset ratio have a negative effect on firm performance, while asset turnover has a positive effect.