MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY Major: BUSINESS ADMINISTRATION Title: FACTORS AFFECTING WORK PERFORMANCE AT HO CHI MINH COMMODITIES TRADING JSC (HCT) TRAN MANH VU Student ID: 050607190645 ADVISOR by Dr. BUI DUC SINH HCM City, June 2022 Examined by Advisor, Dr. Bui Duc Sinh …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… Signature Examined by Committee …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… Signature CONTENTS Acknowledgements. OVERVIEW OF COMMODITIES TRADING.
How Commodity Markets Work. History of Commodity Markets. Types of Commodity Markets. Commodity Market Trading vs.
Commodities trading in the world. Commodities trading in Vietnam. Summary of the chapter. Scope of the study.
Outline of the study. Summary of the chapter. Theory of Compliance. Theory of Work Attitude.
Theory of Work Outcome. Theory of Self-Improvement. Theory of Engagement. Summary of the chapter.
Purpose of the study. Validity and reliability. Summary of the chapter. DATA ANALYSIS AND RESULTS.
Exploratory Factor Analysis (EFA). Independent variables scales. Dependent variables scales. Assessing normality of the residuals.
Summary of the chapter. IMPLICATIONS AND CONCLUSIONS. Limitations of study and future reseacrch. Sumamry of the chapter.
53 iii LIST OF FIGURES Figure 1. HCT’s Certificate of Business registration. Top 5 of Vietnam Commodity Broker Exchange market share. Pie chart: The proportion of achieving KPI targets in Q1.
Pie chart: The proportion of reasons for not meeting KPI targets in Q1. 40 iv LIST OF TABLES: Table 5. Rotated Component Matrix of Independent variables. KMO and Bartlett's Test of Independent variables.
KMO and Bartlett's Test of Dependent variables. Total Variance Explained. Summary of Regression model. 37 v Acknowledgements I would like to express my sincere gratitude to several individuals and organizations for supporting me throughout my Graduate study.
First, I wish to express my sincere gratitude to my supervisor, Dr. Bui Duc Sinh, for his enthusiasm, patience, insightful comments, helpful information, practical advices and unceasing ideas that have helped me tremendously at all times in my research and writing of this thesis. His immense knowledge, profound experience and professional expertise in Human Resource Management has enabled me to complete this research successfully. Without his support and guidance, this project would not have been possible.
I could not have imagined having a better supervisor in my study. I am also grateful to the following friends and colleagues for their consistent support and assistance during the period since I first started to join the labour market. Without them, I definitely did not have a chance to open up my views and philosophy. Finally, last but by no means least; also to everyone in the Banking University, it was great sharing premises with all of you during last three years.
Thanks for all your encouragement! 1 Abstract Commodities trading is an ancient profession with a longer history than stock and bond trading. Many emergence of civilisations can be directly connected to their capacity to build complex trading networks and facilitate the exchange of commodities. In modern times, commodities are still exchanged throughout the world. A commodities exchange refers both to a physical location where the trading of commodities takes place and to legal entities that have been formed in order to enforce the rules for the trading of standardized commodity contracts and related investment products.
For the purpose of advance with global economic integration, the Ministry of Industry & Trade published license No. 4596/GP-BCT to establish the first Commodity Exchange in Vietnam—Mercantile Exchange of Vietnam—on September 1st, 2010. And Ho Chi Minh Commodity Trading JSC (HCT) is one of the five largest commodity brokering companies which constitutes the trading system in Vietnam. Due to the new existence of this kind of trading, organisations still have to encounter numberous problems, from legal challenges to professional qualification issues.
This study aims to discover new factors affecting the whole outcome, mainly based on employees‘ work performance at HCT and then hopefully can set the basis for further research in the future. Keywords: Commodity trading, HCT, work performance, proper solutions. OVERVIEW OF COMMODITIES TRADING 1. Definition According to Adam Hayes (Ph., CFA and a financial writer with 15+ years Wall Street experience as a derivatives trader), a commodity market is a marketplace for buying, selling, and trading raw materials or primary products.
Commodities are often split into two broad categories: hard and soft commodities. Hard commodities include natural resources that must be mined or extracted—such as gold, rubber, and oil, whereas soft commodities are agricultural products or livestock—such as corn, wheat, coffee, sugar, soybeans, and pork. How Commodity Markets Work Commodity markets provide producers and consumers with access to commodity products in a centralised and liquid marketplace. These market actors can also use commodities derivatives to hedge future consumption or production.
Speculators, investors, and arbitrageurs also play an active role in these markets. Certain commodities, such as precious metals, have been regarded to be an effective inflation hedge, and diversifying a portfolio with a diverse range of commodities as an alternative asset class can assist. Because commodity prices tend to fluctuate in opposition to stock prices, some investors rely on commodities during moments of market instability. In the past, commodities trading required significant amounts of time, money, and expertise, and was primarily limited to professional traders.
Today, there are more options for participating in the commodity markets. History of Commodity Markets Commodities trading dates back to the birth of human civilization, when tribal clans and newly established kingdoms would barter and trade for food, supplies, and other products. Trading commodities indeed precedes the trading of stocks and bonds by millennia. The growth of empires such as ancient Greece and Rome can be directly 3 related to their capacity to construct complex commercial networks and promote commodity exchange across enormous areas via routes such as the legendary Silk Road, which linked Europe to the Far East.
Today, commodities are still traded on a vast basis all over the world. With the introduction of exchanges and derivatives markets, things have also gotten more complicated. Futhermore, many exchanges are regulated and standardized by governments, which provide legal, liquid and efficient marketplaces. Perhaps the most influential modern commodities market is the Chicago Board of Trade (CBOT), established in 1848, where it originally traded only agricultural commodities such as wheat, corn, and soybeans in order to help farmers and commodity consumers manage risks by removing price uncertainty from those agricultural products.
Today, it lists options and futures contracts on a wide range of products including gold, silver, U. Treasury bonds, and energy products. The Chicago Mercantile Exchange (CME) Group merged with the Chicago Board of Trade (CBOT) in 2007, adding interest rates and equity index products to the group's existing product agricultural offerings. Types of Commodity Markets Generally speaking, commodities trade either in spot markets or derivatives markets.
Spot markets, sometimes known as "physical markets" or "cash markets," are places where buyers and sellers trade real items for immediate delivery. Derivatives markets involve forwards, futures, and options. Forwards and futures are derivatives contracts in which the underlying asset is the spot market. These are contracts that grant the owner control of the underlying at some time in the future in exchange for a predetermined price today.
Physical delivery of the commodity or other item would take occur only after the contracts expired, and traders frequently roll over or close out their contracts to avoid making or taking delivery entirely. Forwards and futures are similar in many ways, although forwards are more customisable and 4 sold over-the-counter (OTC), whereas futures are standardized and traded on exchanges. *Note: Commodities are predominantly traded electronically; however, several U. exchanges still use the open outcry method.
Commodity trading conducted outside the operation of the exchanges is referred to as the over-the-counter (OTC) market. Commodity Market Trading vs. Stock Trading For most individual investors, accessing commodities markets, whether spot or derivatives, is untenable. Direct access to these markets typically requires a special brokerage account and/or certain permissions.
Because commodities are considered an alternative asset class, pooled funds that traded commodities futures, such as CTAs, typically only allow accredited investors. Still, ordinary investors can gain indirect access to commodities via the stock market itself. Stocks on mining or materials companies tend to be correlated with commodities prices, and there are various ETFs now that track various commodities or commodities indexes. These ETFs can help investors diversify their portfolios, but for most long-term investors, stocks and bonds will be the foundation of their holdings.
Furthermore, because commodity prices are more volatile than those of stocks and bonds, commodity trading is frequently best suited for people with a higher risk tolerance and/or a longer time horizon. Commodities trading in the world Trading exchanges were founded nearly 400 years ago, with the first one formed in Amsterdam in 1602 to trade shares of the Dutch East India Company. Today, the globe has over 60 major exchanges, with 16 having market capitalizations of more than $1 trillion apiece, accounting for 87 percent of worldwide market capitalisation as of 2016. They have made trading a viable career and boosted market transparency and efficiency by embracing technology improvements.
5 Along with advancing technology, entry barriers have also eased in recent years, making these exchanges dynamic. The emerging markets have also made their mark on the global economy. The smooth functioning of these exchanges is critical for global economic stability. Here is a list of the 7 biggest stock exchanges, according to their market cap as of November 2018, as well as the top 3 global commodities exchanges by market cap – according to Blackwell Global.
Chicago Mercantile Exchange (CME Group) Founded in 1898, as Chicago Butter and Egg Board, the CME has the widest range of options and futures contracts in the world. These include contracts of all kinds, from agriculture to energy and equity indexes. Tokyo Commodity Exchange Established in 1984, This is Asia‘s primary commodities exchange and is also known as TOCOM. TOCOM includes futures and options in precious metals, rubber, oil and soft commodities.
Its current trading platform is based on NASDAQ OMX technology. London Metal Exchange The London Metal Exchange traces its roots back to 1571, when the Royal Exchange was involved only in copper contracts. Today, some of the major metals like aluminium, zinc, lead and nickel are traded through options and futures here. Apart from base metals, it has other commodities as well.
It offers hedging as well as options of physical deliveries to settle contracts. Commodities trading in Vietnam Mercantile Exchange of Vietnam (MXV) is the only national centralized commodity trading market organizer in Vietnam, licensed by the Ministry of Industry & Trade (the only and indefinite license managed by the Ministry of Industry & 6 Trade). For example: No. 4596/GP-BCT in 2010, No.
51/2018/ND-CP and No. 486/GP-BCT in 2018, No. 1369/QD-BCT in 2020. MXV logo Currently, MXV has connected most of the major Commodity Exchanges in the world such as: London Metal Exchange - (LME); Chicago Commodity Exchange - CME Group (including CBOT, CME, COMEX, NYMEX Exchanges); Intercontinental Exchange - ICE (including ICE US, ICE EU, ICE Singapore exchanges); Osaka Commodity Exchange - OSE; Singapore Commodity Exchange - SGX; Bursa Malaysia Derivatives Exchange.
MXV satisfies all commodities trading demands of domestic investors, including price hedging and arbitrage trading, steadily growing the size of centralized trading of domestic investors and contributing to the process of international economic integration. Summary of the chapter A commodities market involves the purchase, sale, or exchange of a raw product such as oil, gold, or coffee. Hard commodities are primarily natural resources, whereas soft commodities are animals or agricultural items.