1 MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY NGUYEN THI BICH VUONG THE QUALITY OF THE FINANCIAL EVALUATION ON INVESTMENT PROJECTS INVOLVING LENDING ACTIVITY AT
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MINISTRY OF EDUCATION AND TRAINING
NATIONAL ECONOMICS UNIVERSITY
NGUYEN THI BICH VUONG
THE QUALITY OF THE FINANCIAL EVALUATION ON INVESTMENT
PROJECTS INVOLVING LENDING ACTIVITY AT COMMERCIAL BANKS
IN VIET NAM (EXAMPLE FROM VIETNAM JOINT STOCK
COMMERCIAL BANK FOR INDUSTRY AND TRADE
Major: finance-banking
ID: 62340201
The summary of the thesis dissertation
Ha noi – 2016
2
INTRODUCTION
1 The rationale of the research
In recent years, the investment projects in general and the financial evaluation projects involving lending activity at commercial banks in viet nam in particular are becoming a striking event on all the national forum, scientific workshop and the public that attracts the significant attention of the scientists, the research companies, even the policy makers, the managers and the officers Based on this situation, the author decided to carry out the
research “The quality of the financial evaluation on investment projects involving lending activity at commercial banks in viet nam (the example is conducted from vietnam joint stock commercial bank for industry and trade)”
2 The aim of the research
To answer the question “how to improve the quality of the financial evaluation on investment projects involving lending activity at commercial banks in viet nam” and “ what are the factors impact on the quality of the financial evaluation on investment projects involving lending activity at commercial banks in viet nam?”
3 The object of the research
The main object of the research is the quality of the financial evaluation on investment projects involving lending activity at commercial banks in viet nam which is depent on several issues like: the ability of the evaluation staff, the information of the evaluation activity, cost and evaluation time, the evaluation method and the evaluation means
4 The scope of the research
Thus, vietnam joint stock commercial bank for industry and trade is a large commercial bank with one head office, 149 branches and more than 1000 dealing rooms in all cities around viet nam, in this research, the author focused on 50 lending projects which are inspired occuring from 2000 to 2014 A survey was conducted directly between 2013 and
2014 with more than 50 managers from dealing offices and more 200 evluation staffs at the offices in viet nam
5 The research method
The author uses the common method like analysis, collection, comparision, statistics,
qualitative research and and quantity research
6 The overview of domestic researches and the drawback
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The most significant difference between this research and other researches is the
quantification of factors impact the quality of the financial evaluation on investment projects
involving lending activity at commercial banks in viet nam to make the decision at macro
level with the lender role belonged to the bank
7 The new contributions of the thesis
Based on the inherit knowledge and experience of available researches about the quality of
the financial evaluation on investment projects involving lending activity at commercial
banks in viet nam, this research contributes to some new ideas:
(1) Systematize and make clear the arguments of the quality of the financial evaluation on
investment projects involving lending activity at commercial banks in viet nam in general
(2) Based on the secondary material is 50 investment projects that vietnam joint stock
commercial bank for industry and trade has accepted and inspired from 2000 to 2014, the
author conducted a survey focused on 2 main objects which are more 50 managers from the
dealing rooms in the whole system and more 200 evaluation staff who directly estimate the
projects at the subsidiary and the head office at vietnam joint stock commercial bank for
industry and trade to identify the real situation in the quality of the financial evaluation on
investment projects involving lending activity at commercial banks in viet nam (3)
Quantification the influence of factors to the quality of the financial evaluation on investment
projects involving lending activity at commercial banks in viet nam to suggest the solutions
which are suitable for level of each factor (4) The author used the maximum of the
secondary data through analysing several specific investment projects that vietnam joint
stock commercial bank for industry and trade evaluated and accepted to lend from
2000-2014 As a result, the author requires various solutions and recommendations to improve the
quality of the financial evaluation on investment projects involving lending activity at
commercial banks in viet nam
8 The research structure
The research is devided into 4 different chapters:
Chapter 1: the overview of the quality of the financial evaluation on investment projects
involving lending activity at commercial banks in viet nam
Chapter 2: the real situation of the quality of the financial evaluation on investment
projects involving lending activity at commercial banks in viet nam
Chapter 3: the assessment of the factors impact on quality of the financial evaluation on
investment projects involving lending activity at commercial banks in viet nam
Chapter 4: the solutions to improve the quality of the financial evaluation on investment
projects involving lending activity at commercial banks in viet nam
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CHAPTER 1
THE OVERVIEW OF THE QUALITY OF THE FINANCIAL EVALUATION
ON INVESTMENT PROJECTS INVOLVING LENDING ACTIVITY AT
COMMERCIAL BANKS IN VIET NAM
1.1 The research on the investment project
1.1.1 The definition of the investment project
The investment project is a group of activities that achieve a common goal based on the input which is the sources and the output which is the outcome
1.1.2 The classification of the investment project
- Based on the investment type: including 3 types: (i) the investment project involving the construction works, (ii) the investment project without the construction works, (iii) the mixture project involving investment and construction
- Based on the working time: the short term project ( less than one year), the medium
project
- Based on the level of management: 4 main goups: group a group b group c and group d
(1-3 years), the long term project ( more than (1-3 years)
1.2 The lending activity followed by the investment project of the commercial bank
1.2.1 The lending activity of the comercial bank 1.2.2 The lending activity followed by the investment project of the commercial bank
1.2.2.1.The definition of lending activity followed by the investment project of the commercial bank
The investment project of the commercial bank is the project which is investment based on the credit transaction of the commercial bank or this investment is the money that the commercial bank lend to the organization or the investor which is followed by a common term to achieve a project of the investor
1.2.2.2.The lending process of the investment project of the commercial banks
The lending process of the investment project of the commercial banks
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- Evaluate of the investment project
- Carry out the loan
- Collect the debt
1.3 The financial evaluation of the investment project involving lendingg activity of the
commercial banks
1.3.1 The evaluation of the investment project
1.3.1.1 The definition of the evaluation of the investment project
The evaluation of the investment project of the commercial banks is the process that the
commercial banks assess, analyse and estimate a project in an objective, scientific and
comprehensive decision to make the best outcome
1.3.1.2 The content of the evaluation of the investment project involving lending activity of
the commercial banks
- Evaluate the investment itself: evaluate the investment on the legal side, the market, the
technique, the investment management, the finance, the environment and the
economy-society
- Evaluate the investor: evaluate the legal status, the financial ability of the customer, the
mortgage asset, the redeem ability
1.3.1.3 The process of the evaluation of the investment project of the commercial banks
This process consists of following steps:
- Check before lending
- Check during the lending time
- Check after lending
1.3.2 The financial evaluation of the investment project involving lending activity of the
commercial banks
1.3.2.1 The definition of the financial evaluation of the investment project
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According to the bank, the financial evaluation of the investment project is consideration, assessment and analysis in a scientific and comprehensive view which is followed by several terms: the legal issue, the possibility, the efficiency and the ability to redeem of the investment project, to help the bank to decide whether to len
1.3.2.2 The content of the financial evaluation of the investment project of the commercial banks or not
- Evaluate the total invested capital and the structure of the invested capital as well as the progress of using the capital
- Evaluate the cash flow of the project
- Evaluate the indicators estimate the financial efficiency
- Evaluate the risk of the project
1.3.2.3 The financial evaluation of the investment project
The general method to evaluate the finance of the investment project is to compare and contrast the project to the standards which are assigned in law and the international economic terms or the international rules
The financial evaluation methods are: compare the indicators, analyse the sensitivity of the project and forcast through applying model
1.4 The quality of the financial evaluation of the investment project involving lending activity of the commercial banks
1.4.1 The definition of the quality of the financial evaluation of the investment project
According to the bank term, the the quality of the financial evaluation of the investment project is the consideration of the project whether this one is suitable for the bank requirements based on several factors such as if the evaluation process is scientific and comprehensive, the evaluation time is fast or not…
1.4.2 The indicators to the quality of the financial evaluation of the investment project involving lending activity of the commercial banks
1.4.2.1 The qualitative indicators
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1.4.2.2 The quantity indicators: the real ratio of the project which is successful, the ratio of
the projects which are adjusted, the criteria of account outstanding and the framework of the
long term credit debt, overdue debt, bad debt, the profit criteria
1.4.3 The factors impact on the quality of the financial evaluation of the investment
project involving lending activity of the commercial banks
1.4.3.1 The subjective factors: the evaluation staff, the evaluation equipment, the source of
information, the operation of the evaluation, the process and the evaluation method
1.4.3.2 The objective factors
A) The factors belong to the investor
The financial difficulty of the investor
The management standard of the investor
The project record written by the investor
B) The environment factors: economic environment, political environment, legal
environment
C) Other objective factors: the market factor, the discount ratio, the inflation rate, the
exchange rate
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CHAPTER 2
THE REAL SITUATION OF THE QUALITY OF THE FINANCIAL EVALUATION ON INVESTMENT PROJECTS INVOLVING LENDING ACTIVITY AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR
INDUSTRY AND TRADE
2.1 The overview of vietnam joint stock commercial bank for industry and trade
2.1.1 The general view about the history and the framework structure of vietnam joint stock commercial bank for industry and trade
2.1.2 The main activity of vietnam joint stock commercial bank for industry and trade
Table 2.1 The financial indicators
Unit: Billion dong
Indicator 2010 2011 2012 2013 2014 The growth rate (%)
11/10 12/11 13/12 14/13
Total asset 367.731 460.420 503.530 576.368 661.132 25,2% 9,4% 14,5% 14,7%
Total funding 339.699 420.212 460.082 511.670 595.094 23,7% 9,5% 11,2 16,3
Gross loan 234.205 293.434 405.744 460.079 542.685 25,3% 38,3 51,4 17,9
Profit before tax 4.638 8.392 8.168 7.751 7.302 80,9% -2,7% -
-Charter capital 15.172 20.230 26.218 37.234 37.234 33,3% 29,6 42% 0%
Owner’s equity 18.170 28.491 33.625 54.075 55.013 56,8% 18% 60,8 1,7%
-Npl/gross loan 0,66% 0,75% 1,35% 0,82% 0,90% 0,09% 0,6%
-0,5% 0,08
%
Dividend payout ratio 13,47% 20% 16% 10% 10% 6,53% -4% -6% 0%
Capital adequacy ratio (CAR)
8,02% 10,57% 10,33% 13,2% 10,4% 2,55%
-0,24 2,87
% -2,8%
(Source: The annual report of vietinbank 2010-2014)
According to the table, the total asset increeased over the period shown The total asset to 31/12/2014 was 661.132 million dong, increases 14,7% in compare to that of 2013 and 103% to the plan of the board of director The source of mobilized capital of vietinbank also increaseed over the year and reached a peak at 23,7% in 2011 in compare to that of
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2010 However, in 2014, although the bank carried out many mobilized activities and arrange
the source of capital in a positive method, vietinbank remained the stability and sustainable
developmen; until 31/12/2014, the debit balance of the capital was more 595 thousand billion
dong, increased 16,3% in compare to 2013 and reached 104% to the plan of the board of
director Meanwhile, the credit balance reached the highest point by 51,4% to that of 2012
Until 31/12/2014, the credit balance was more 543 thousand billion dong, reached 105% to
the plan of the board of director, increased 18% to that of 2013 and more than the average
growth of all vietnam banks The capital coefficient factors were remained and followed the
policy Although the income before tax had a downward trend over the year, the year 2014
reached a profit at 7302 billion dong and 100,3% to the plan of the board of director In 2012,
because of the influence of the economy fluctuation, the bad debt of all the commercial banks
in viet nam increased while that of vietinbank grew by 1,35%, the highest
2.2 The real situation of the quality of the financial evaluation on investment projects
involving lending activity at vietnam joint stock commercial bank for industry and
trade
2.2.1 The financial evaluation process of the investment projects involving lending activity
at vietnam joint stock commercial bank for industry and trade
Step 1: Identify the investment model
Step 2: Estimate the investment capital and the capital structure
Step 3: Estimate the cash flow
Step 4: Compute and analyse the efficiency indicators of the investment project
Step 5: Estimate the risk of the investment project
Step 6: Prepare the statement
2.2.2 The financial evaluation method of the investment projects involving lending activity
at vietnam joint stock commercial bank for industry and trade
The financial evaluation methods that the vietnam joint stock commercial bank for industry
and trade is applying are:
Compare the indicators
Analyse the sensitive indicators with each variable of each factor
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2.2.3 The real situation of the quality of the financial evaluation method of the investment projects involving lending activity at vietnam joint stock commercial bank for industry and trade
As concerned above, to estimate the quality of the financial evaluation method of the investment projects involving lending activity at vietnam joint stock commercial bank for industry and trade, the author based on these quantity terme:
The real ratio of the successful projects
Table 2.2 The real ratio of the successful projects from 2010-2014 Indicators 2010 2011 2012 2013 2014
1 The total number of projects 1906 2012 1740 2147 2166
2 The total number of accepted projects 1785 1905 1454 2014 2048
3 The total number of refused projects 121 107 286 133 118
4 The number of successful projects 1785 1886 1361 1940 1948
5 The real ratio of the successful projects 100% 99% 94% 96% 96%
6 The real ratio of the refused projects 6,35% 5,32% 16,44%% 6,19%% 5,45%
(Source: The planning board of vietinbank 2010-2014)
As a result, the real ratio of the successful projects is quite good
The ratio of the projects which were adjusted
Table 2.3 The ratio of the projects which were adjusted from 2010-2014 Indicators 2010 2011 2012 2013 2014
1 The number of accepted projects 1785 1905 1454 2014 2048
2 The number of adjusted projects 256 294 307 344 406
3 The ratio of adjusted projects 14,34% 15,43% 21,11% 17,08% 19,82%
(Source: The planning board of vietinbank from 2010-2014)
Based on this table, the numbers of adjusted projects in recent years are quite high
The ratio of long term debt and the ratio of overdue longterm debt
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Table 2.4 The ratio of overdue debt from 2010-2014
Indicators 2010 2011 2012 2013 2014
1 The ratio of long term debt 27,3% 33,67% 45,8% 56,4% 82,4%
2 The ratio of overdue longterm debt 8,7% 5,8% 10,3% 6,2% 7,5%
3 The ratio of longterm debt 3,4,5 0,44% 0,56% 1,08% 0,61% 0,7%
(Source: The planning board of vietinbank from 2010-2014)
The ratio of the long term profit and the rate of profit
Table 2.5: The rate of profit from 2010-2014
Unit: billion dong
Indicators 2010 2011 2012 2013 2014
1 The profit from long termcredit activity 1.985 4.560 3.980 4.185 3.794
2 The gross loan 195.670 203.580 308.604 365.075 440.650
3 The profit from credit activity 3.608 7.312 6.985 6.054 6.302
4 The rate of profit 1,12% 2,73% 1,62% 1,23% 1,09%
5 The ratio of long term profit 55,01% 62,36% 56,55% 69,13% 60,2%
(Source: The planning room at Vietinbank from 2010-2014)
The rate of profit at vietnam joint stock commercial bank for industry and trade from
2010-2014 was low but quite stable and remained at more 1% with the highest one at 2,73% in
2011 Meanwhile, the ratio of long term profit was around more 50% and increased gradually
from 55,01 in 2010 to 60,2% in 2014 It means that the projects that banks are investing bring
a numerous profits to the bank and the high quality of the financial evaluation of the projects
2.2.4 Compare the real situation of the quality of the financial evaluation of the
investment projects at vietnam joint stock commercial bank for industry and trade to other
banks through some quatity indicators
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Table 2.6 Some indicators from four commercial banks from 2010 to 2014 Year Bank (1) (2) (3) (4) (5) (6)
2010
2011
2012
2013
2014
(Source: Integrated planning department of the bank from 2010 to 2014)
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2.2.4 The specific evaluation of projects in vietnam joint stock commercial bank for
industry and trade
To visualize clearly about the financial evaluation activity investment projects involving
lending activity in vietnam joint stock commercial bank for industry and trade, we consider a
number of specific investment project
• Project 1: Investment in purchase container kedah of vietnam national shipping lines
• Project 2: Purchasing 20 renewed locomotive d19e maded by china of vietnam
railways
• Project 3: Investment in purchase facilities to serve business production of viet hung
construction trading & service limited company
• Project 4: Exploiting gold mine tan kim of hai longm cooperative
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CHAPTER 3
IMPACT ASSESSMENT OF THE FACTOR TO QUALITY EVALUATION OF INVESTMENT PROJECT FINANCING IN VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE 3.1 Research model and hypotheses
Diagram 3.1 Research model 3.2 Research process
3.2.1 Experimental study
3.2.2.1 Select the template
Through the process of gathering information of the project which invested by Vietnam joint stock commercial bank for industry and trade from 2010 to 2014, the author selected 50 project expired to examine and gather information
3.2.1.2 Find out the scale
The construction scale of examining for the factor effecting of the model are performed in the order:
- First step: building the scale preliminary survey according personal opinion and the general knowledge of scientific research
Appraisers
Evaluation agency Information sources
Evaluation process
The quality of evaluation work
Evaluation criteria Authentication method Means of Verification
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- Second step: examining the opinion of the experts in the field of project evaluation in
vietnam joint stock commercial bank for industry and trade and some experts in the
field of banking
- Third step: using a questionnaire examine for the first time to carry out a preliminary
examine on the small sample size
- Fourth step: analysting and checking the reliability and the convergence of scale of
examining through the research methods as evaluating the reliability by cronbach
alpha coefficient, analyzing the efa explore factors
3.2.1.3 Design questionnaire
After the construction and adjustment of scale, the scale is showed official to conduct a
survey in 50 projects with 50 managers and more than 200 examiners The result will be
analyzed in-depth to check the data, analyze statistics and check the research hypothesis The
detail questionnaire is used for managers and examiners
3.2.1.4 Method of analysis
The method of analysis is applied in the research like:
- Descriptive statistics and statistics inference
- Rating the reliability and validity of scales
- Analyzing explore factors efa
- Analyzing variances anova
- Analyzing multivariate regression
3.2.2 Analyzing the result of formal study
3.2.2.1 Analyzing the characteristic of respondents
Thedemographic characteristics and information about the number of officers, during an
assessment of the project are summarized in the above table
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Table 3.1 The information of respondents
3.2.2.2 Analyzing of data reliability
The result of analysis shows that cronbach alpha coefficient of the scale-surveyed achieved high confidence level, the lowest coefficient is the scale of quality of the evaluation work, 0.712, higher than lever 0.6 The correlation coefficients variables-total of the variable observed with overall scale are peaking above 0.5 This factor demonstrates good correlation
of the observed variables with the overall scale of the variable performance
3.2.2.3 Analyzing the factors affecting the quality of the evaluation work
* Factor analysis for the group of independent variables
The result shows that:
- Kmo coefficient (0735) shows the results of factor analysis is to ensure accuracy
- Accreditation bartlett for sig coefficient (0.00) show the assurance of level of statistical significance of the analysis results
- The variance (76,69) show that the variability of these factors which is gave from factor analysis will explain the 76.69% of the overall variation in the initial survey data, this is quite rate
- Coefficient of eigenvalues of the 7th factor is 1,314, this is the lowest value that higher that 1 This factor confirms that there are 07 factors that can launch from the analysis
- The load factor coefficient of each observed variables represented for each factors are higher 0.5.this factor show that analyzing efa is guaranteed and having the influence
of each observed variables to the factor that the variables express
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As a result, the factor analysis for the independent variables showed that there are 07 factors
from the analysis given the reliability is ensured
• Factor analysis for the dependent variable
The analytical results for the dependent variable showed that:
- Kmo coefficient equal to 0.5, which is the minimum value allowed for this coefficient,
shows that the results of factor analysis is to ensure accuracy
- Inspection of bartlett for sig coefficient = 0.00 From that, we can see that statistical
significance level of analytical results is guaranteed
- The result of variance (72.22) shows that the variability of the factors which gave by
factor analysis will explain 72.22% variation of the overall in the initial survey data
This is high rate
- Coefficient eigenvalues of 1st factors has a value of 1,444, which is the smallest value
higher than 1 This value confirms that having 01 factors that may be made from the
analysis
- The load factor coefficient of each observed variables represented for each factors are
higher 0.5 This factor show that analyzing efa is guaranteed and having the influence
of each observed variables to the factor that the variables express
The dependent variable was analyzed as a factor and represented by two observed variants
cltd2 and cltd1, is encrypted to cltd
3.2.2.4 Descriptive statistical analysis
• Review by respondents about the quality of the examiner
• Review by respondents about sources
• Review by respondents about organizations evaluation work
• Review by respondents about the appraisal process
• Review by respondents about the evaluation criteria
• Review by respondents about the evaluation method
• Review by respondents about means of verification
• Review by respondents about the quality of evaluation work
3.2.2.5 Correlation analysis of factors
The result of analysis shows that there aren’t correlations between the independent variables
together after they have been calculated using standardized methods in software Between the
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independent variables are shown in close correlation with the dependent variable is the effectiveness of the evaluation, with level significant correlation at 0.01 Person correlation coefficients of the independent variables with the dependent variable are higher than 0 This factor shows that the correlation is the same way As a result, with this result of analysis, independent variables do not show a correlation with each other, between the independent variables and the dependent variable are shown good correlation
3.2.2.6 Regression analysis
Results of multivariate regression analysis showed that:
• The coefficient r equal 0778 This result show that there is 78% of the variation in the quality of the evaluation work is represented by the factors in the model
• Durbin-watson coefficient equal 1.880, approximately equal 2 It show that there aren’t phenomena of correlation between the independent variables
• In anova analysis, f coefficient equal 100.667 and sig coefficient equal 0.000 It show that the results of the regression analysis is absolutely guarantees the reliability
• Regression coefficients table with statistical significance level for each factor are lower than the maximum allowed 0.05, so that all independent variables are affecting
to the dependent variables which are the effectiveness of project evaluation, there are
no variables removed from the model
• The normal distribution of the residuals after a regression analysis showed that the residue with a normal distribution with a mean of 0 (1.79 * e ^ -15), standard deviation equal to 1 (0982)
As a result, the testing of regression models have been accepted, thereby, the independent variables in the model affect the dependent variable according to the regression equation standardized format as follows:
CLTD = 0.354*CBTD + 0.327*NTT + 0.310*PPTD + 0.289*QTTD +
0.223*TCTD + 0.223*CTTD + 0.218*PTTD
From the regression equation, we can see the factor “quanlity of examiner” expressed the most powerful influence on the quality of evaluation work; accurate and reliable information source is the next factor; the remaining factors ranked in the following order: the selection of
a modern evaluation methods; reasonable appraisal process; the organization the examiner; evaluation criteria to be applied effectively; and the final is modern, full of means of verification
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3.2.2.7 Analysis of variance
To clarify the influence of the factor characteristic of examiner, the number of examiner,
evaluation time whether or not the impact on the quality of evaluation work, author
conducted analysis of variance to compare and comment on the difference between the
effectiveness of the evaluation with the above characteristics
• Assess the impact of gender of the examiner
• Assess the impact of experience of the examiner
• Assess the impact of qualifications of the examiner
• Assess the impact of income of examiner
• Assess the impact of evaluation time
• Assess the impact of the number of examiner
3.3 Assess the quality of the financial evaluation on investment projects involving
lending activity at vietnam joint stock commercial bank for industry and trade
3.3.1 The achievements
- About the appraisal organizations
- About the information used to assess
- About the processes and content of evaluation
- About the examiner
- About the evaluation time and cost
3.3.2 Limited and reasons
3.3.2.1 Limited
- About the science in management
- About the technical evaluation
- About the content evaluation
3.3.2.2 Reasons
a Subjective reasons
b Objective reasons
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CHAPTER 4
THE SOLUTIONS TO IMPROVE THE QUALITY OF THE FINANCIAL EVALUATION ON INVESTMENT PROJECTS INVOLVING LENDING ACTIVITY AT VIETNAM JOINT STOCK COMMERCIAL BANK FOR
INDUSTRY AND TRADE
4.1 Orientation activities of vietnam joint stock commercial bank for industry and trade
4.1.1 Oriented development of vietnam joint stock commercial bank for industry and trade
to 2020
4.1.2 Orientation of lending activity according the investment project of vietnam joint stock commercial bank for industry and trade to 2020
In the period 2010-2020, vietnam joint stock commercial bank for industry and trade will adopt policies to encourage investment in projects, production and business plans which effective as the manufacturing business exports Beside the group of state enterprises, customers of special grade are normally traditional customers as vietnam oil and gas group, vietnam posts and telecommunications group, vietnam electricity… to achieve this purpose, vietnam joint stock commercial bank for industry and trade should set out the motto for the evaluation of financial activities of investment projects oriented: the financial evaluation on investment projects have to looking forward the perspective of lenders, investor to consider and appraise; it must proceed from the real situation of the sector and to serve the credit, especially medium and long term credit of the bank In addition, it also must be universal in the entire system, with officers on duty in different parts with different demanding requirements
4.2 The solutions to improve the quality of the financial evaluation on investment projects involving lending activity at vietnam joint stock commercial bank for industry and trade
4.2.1 The solution about the examiner
- Establish a network of experts and consulting organizations
- Strengthening cooperation support and studying of the experience of credit institutions
in the financial evaluation of the project