by Lee Ming-Kwong, Tam Yuen-Man. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1997. / Includes bibliographical references (leaves 148-152). / ABSTRACT --- p.III / TABLE OF CONTENT --- p.V / LIST OF ILLUSTRATIONS --- p.IX / LIST OF TABLES --- p.X / ACKNOWLEDGEMENT --- p.XI / Chapter I. --- INTRODUCTION --- p.1 / Chapter II. --- COUNTRY PROFILE --- p.3 / Chapter III. --- VIETNAM MARKET POTENTIAL --- p.4 / Chapter IV. --- RECENT ECONOMIC DEVELOPMENTS --- p.6 / Economy --- p.6 / "The ""Doi Moi ´ح reforms" --- p.6 / 1989onward --- p.7 / Inflation --- p.8 / A three year low inflation of 4.8% is recorded in 1996 --- p.8 / Interest Rate --- p.10 / "Maximum Lending Rate Has Been Cut For the Fourth Time, to 1.5% per month" --- p.10 / Interest Rate Cuts Will have Minimal Impact on Economy- --- p.11 / The Paradox of Surplus Capital in a Cash-strapped Economy --- p.12 / Exchange Rate --- p.12 / Vietnamese Dong to Depreciate Marginally in 1996 --- p.12 / Tight Regulations Contributed to the Stable National Currency --- p.13 / The Dong Has Been Supported by Massive Inflows of Foreign Capital --- p.13 / Dong is Roughly 25% Overvalued --- p.14 / Gradual Adjustment of the Dong is Expected in 1997 --- p.14 / Planning the 2000s --- p.15 / Chapter V. --- THE EIGHTH PARTY CONGRESS --- p.17 / Chapter VI. --- STATE OWNED ENTERPRISES (SOEs) REFORM AND RESTRUCTURING --- p.20 / Liberalization of management --- p.21 / Forming large strong conglomerates through merging --- p.22 / Forming conglomerates in strategic areas --- p.23 / Cutting the fat --- p.24 / Chapter VII. --- EQUITIZATION OF STATE OWNED ENTERPRISES (SOES) IN VIETNAM --- p.28 / What is Equitization of State-owned Enterprises (ESE) in Vietnam ？ --- p.28 / The Equitization process and implementation in Vietnam --- p.29 / Some good news --- p.30 / Government Has Stepped Up Equitisation Drive --- p.32 / A New Decree Aimed to Stimulate Equitization --- p.33 / Problems of equitization --- p.34 / New Incentives Should Ease Management's Fears --- p.39 / Chapter VIII. --- FINANCIAL SYSTEM --- p.41 / State Bank of Vietnam's Evolving Role --- p.42 / reserve Requirements not Effectively Used as a Monetary Instrument --- p.42 / Interbank Domestic Currency Market --- p.42 / Interbank Foreign Exchange Market --- p.42 / A Forward Market is Expected to Be Introduced in 1997 --- p.43 / State Banks Still Dominate the Commercial Bank Sector --- p.44 / New Policies Are Expected to Help Joint-Stock Banks --- p.46 / Chapter IX. --- CAPITAL MARKET DEVELOPMENT --- p.47 / Capital Market Development One of Vietnam 's Priorities --- p.47 / Money Market - Debt Securities --- p.48 / T-bills Have Been Issued Since Early 1991 --- p.48 / New People 's T-bonds Have Been Issued for Individual Investors --- p.49 / Vietnam's First Dollar Convertible Bonds Were Issued in July 1996 --- p.50 / International Bond Issue is Unlikely Despite Clearing of Commercial Debt --- p.51 / Capital Market - Equities Securities --- p.52 / Patience is Required for a Workable Stock Market --- p.52 / National Exchange Committee is a Prerequisite for Future Exchange --- p.53 / Accounting and Auditing Standards to Be Completed in 1998 --- p.54 / Foreign Assistance Will Speed Up Development of Crucial Elements --- p.54 / Coffee Shop' Exchange --- p.55 / Chapter X. --- PRIVATIZATION: FROM EQUITIZATION TO PUBLIC OFFERING --- p.56 / Factors influencing the selection of privatization methods --- p.56 / Motivation for privatization --- p.57 / Financial and social conditions --- p.59 / Privatization Techniques --- p.62 / Chapter 1. --- Contracting-out --- p.62 / Chapter 2. --- Deregulation --- p.63 / Chapter 3. --- Trade sales --- p.63 / Chapter 4. --- Management-employee buyouts --- p.64 / Chapter 5. --- Joint ventures --- p.65 / Chapter 6. --- Share Offerings --- p.66 / Preparing enterprises for privatization --- p.68 / Chapter 1. --- Feasibility assessment --- p.68 / Chapter 2. --- Preparation stage --- p.68 / Chapter XI. --- ACCOUNTING AND VALUATION --- p.70 / Accounting issue --- p.70 / Valuation issues --- p.72 / Chapter XII. --- VALUATION OF SOE --- p.74 / Chapter 1. --- Corporate valuation --- p.74 / Net Asset Value (NAV) --- p.74 / Chapter 2. --- Business valuation --- p.76 / Chapter (a) --- Discounted cash flow --- p.76 / Chapter (b) --- Price-earnings method --- p.78 / Chapter 1. --- "Assessing the ""Earnings""" --- p.78 / Chapter 2. --- Setting the multiple (P/E ratio) --- p.79 / Chapter 3. --- Special Consideration --- p.79 / Chapter 3. --- Composite basis valuation --- p.80 / Difficulties in emerging market valuation --- p.80 / Absent of open capital market --- p.81 / Property or land use rights --- p.81 / Chapter XIII. --- S PRICE --- p.82 / Chapter 1. --- Price in Flotations --- p.82 / Chapter 2. --- Consideration for pricing the SOEs --- p.83 / Chapter XIV. --- PRIVATIZATION-A REFERENCE TO OTHER COUNTRIES --- p.84 / United Kingdom --- p.86 / Privatization --- p.86 / Chapter 1. --- Which companies to privatize? --- p.86 / Chapter 2. --- Pre-privatization restructuring --- p.87 / Chapter 3. --- The role of the capital markets --- p.87 / Chapter 4. --- The role of Foreign direct investment --- p.89 / Chapter 5. --- Methods of Privatization --- p.89 / France --- p.91 / The objectives of French privatizations: --- p.91 / Privatization --- p.92 / Chapter 1. --- Pre-privatization restructuring --- p.92 / Chapter 2. --- The role of capital markets --- p.92 / Chapter 3. --- The role of foreign direct investment --- p.93 / Chapter 4. --- Method of privatization --- p.94 / Chapter 5. --- Accounting implications of privatization --- p.95 / Korea --- p.96 / Objectives of privatization --- p.96 / From 1968 to the early 1980s --- p.97 / The 1987privatization programme --- p.97 / The new privatization policy in 1993 --- p.98 / The role of foreign direct investment --- p.99 / Thailand --- p.100 / Objectives --- p.100 / Privatization --- p.100 / Chapter 1. --- Which companies to privatize? --- p.100 / Chapter 2. --- Pre-privatization enterprise restructuring --- p.101 / Chapter 3. --- The role of the capital market --- p.101 / Chapter 4. --- The role of foreign direct investment --- p.102 / Chapter 5. --- Methods of privatization --- p.103 / Chapter XV. --- CHINA'S EXPERIENCE --- p.104 / Reform of State-owned Enterprises in China --- p.104 / Development of China Securities Market --- p.106 / China's Shareholding System --- p.109 / Primary types of shares in Chinese shareholding enterprises --- p.109 / Chapter XVI. --- DISCUSSION --- p.111 / Going Public: advantage and disadvantage --- p.111 / vietnaM'S CONCERN --- p.114 / Chapter 1. --- A stock market or a securities market --- p.114 / Chapter 2. --- The Primary Market --- p.115 / Market participants and intermediaries --- p.115 / Market Commodities --- p.118 / Chapter 3. --- The secondary market --- p.120 / The Stock Exchange --- p.120 / Stock exchange ownership --- p.121 / Chapter 4. --- Dealing Mechanism --- p.123 / Electronic dealing and trading system --- p.126 / Chapter 5. --- Settlement and Clearing --- p.128 / Chapter 6. --- Legal framework and supervision --- p.129 / Chapter 7. --- Foreign Participation --- p.131 / Chapter XVII. --- CONCLUSION --- p.132 / APPENDIX 1 --- p.134 / APPENDIX 2 --- p.136 / APPENDIX 3 --- p.137 / APPENDIX 4 --- p.138 / APPENDIX 5 --- p.139 / APPENDIX 6 --- p.143 / APPENDIX 7 --- p.144 / APPENDIX 8 --- p.145 / APPENDIX 9 --- p.146 / APPENDIX 10 --- p.147 / BIBLIOGRAPHY --- p.148