In addition, these employees must be dedicated and loyal, accompanying the company in all circumstances. Therefore, the long-term and decisive work for the development of brokerage activities is that VNS must strengthen training, develop human resources and build corporate culture. According to the author, to carry out the above two tasks, VNS can simultaneously carry out measures such as:
- Regularly open courses to improve employees' qualifications in in-depth analysis of corporate finance, courses on sales skills, OTC market, information technology, foreign languages, etc.
- Encourage employees to participate in training courses organized by the State Securities Commission to obtain securities practice certificates by: supporting tuition fees, providing information about courses, offering more incentives for employees who have obtained practice certificates... Gradually, having a certificate will become a mandatory condition for brokerage staff in the company.
- Recruiting new brokers on a public basis, ensuring quality in terms of professional expertise, IT, foreign languages, appearance, communication and behavioral skills to create a young, qualified and capable workforce for brokerage activities. At the same time, this young workforce also has the effect of stimulating employees who are working for the company to strive to improve themselves, together contributing to the overall development of the company.
- Actively cooperate with famous economic universities in Hanoi and Ho Chi Minh City to organize internship programs for students at the company. Thanks to this activity, VNS can access new, capable human resources and at the same time promote its image.
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- Cooperate with other securities companies to send excellent brokers for internships and training abroad to gain experience, improve professional qualifications, then return to pass on experience to other employees, contributing to improving professionalism and general qualifications.
- Design uniforms and require employees to wear them during working hours to create professionalism and a unique impression of the company to customers.
- Organize exchange programs, travel, picnics, parties... to increase solidarity among employees. On important anniversaries of VNS, organizing discussions between the management and employees helps managers better understand the wishes of their employees, and employees will feel more cared for.
- Establish funds to visit and help employees.
- Build a common bookshelf to share knowledge between management and employees and among employees.
Cooperate with the Bank to carry out the activity of Advance payment for securities sales.
To contribute to increasing the company's revenue and serving the process of building facilities for brokerage activities, the author would like to give his opinion: VNS should cooperate with banks to carry out the activity of advancing money for securities sales.
As presented in Chapter II, to support short-term capital for investors, VNS will use its own money to advance securities sales to customers at an interest rate of 0.045%/day, the lowest advance is 50,000 VND. The profit earned from this activity is almost negligible, but mainly to support securities brokerage activities. Therefore, if VNS cooperates with a bank, possibly Dai Tin Bank, so that the bank can advance money and let them enjoy all the interest earned, VNS will have a large amount of surplus capital to implement Investment Cooperation Contracts with customers. Currently, the demand of investors to cooperate with the company at VNS is very high, and the interest earned from this activity is very large, possibly almost equal to the brokerage fee revenue. Therefore, promoting Investment Cooperation Contracts with customers will bring in a large source of revenue for the company.
Promote PR and Marketing activities.
With the current situation of the company, VNS still has to promote PR and Marketing activities. Up to this point, few people know about a securities company called VNS. For those who have not participated in the stock market, the name "VNS Securities Joint Stock Company" is quite unfamiliar. If you search on Google, you will only find information about the company's website and a few pieces of information.
short, uninteresting messages. To address this issue, VNS can combine activities such as:
- Training direct sales skills for brokers. Brokers and transaction staff are the direct bridge between the company and customers, the ones who create the image and reputation of the company. Therefore, the company needs to pay more attention to these staff, promote so that they understand their roles and responsibilities, guide and train them on how to communicate, behave with customers, how to answer the phone... to always create trust and satisfaction of customers with the brokerage services provided by the company. Thus, through investors who have traded at VNS, the good image of the company will be transmitted to their relatives and friends, and more and more people will know about VNS.
- Increase advertising activities. When advertising, the company needs to clearly identify the target customers, how to convey information to attract attention and fully convey the information it wants to convey. The means to advertise brokerage activities can be newspapers, specialized newspapers on securities, finance, banking; television stations; billboards...
- Coordinate with the Securities Training Center of the State Securities Commission to organize practical sessions at the company for students of basic knowledge classes on securities and the stock market. This activity can also be further developed by expanding the scope of cooperation to agencies, departments, banks, insurance companies, universities, and securities training centers. This is a very useful activity to promote the company's image if VNS knows how to organize it well.
- Actively participate in specialized finance and banking exhibitions, seminars, press conferences, etc.
- Sponsoring seminars related to the stock market, student stock clubs, stock competitions organized by students...
- Collaborate with specialized newspapers to publish the company's own publications.
III. RECOMMENDATIONS TO THE STATE
The following recommendations that the author makes to the government are general recommendations to develop the stock market and the operations of securities companies. Thereby contributing to creating conditions for the development of brokerage services, including brokerage activities of VNS Securities Joint Stock Company.
Economic stability and growth.
Economic stability and growth are the premise and important condition for the development of the stock market in general and securities brokerage activities in particular. The stock market is a product of the market economy. This market can only develop when a country's economy reaches a certain level of development.
Economic stability and growth will create new jobs, reduce unemployment, thereby increasing business income as well as increasing people's income. As income increases, consumer demand and savings will also increase accordingly. This will increase investment demand from the public and stimulate businesses to develop production, meeting the growing needs of society.
Economic stability and growth reduce risks and increase the efficiency of investment activities. This will increase the attractiveness of the domestic stock market and attract foreign investment. On the other hand, the demand for foreign investment of domestic investors and enterprises also increases. This is the premise for the development of securities companies and brokerage services.
To create conditions for economic stability and growth, the State needs to implement synchronous financial and monetary policies, policies to attract and encourage domestic and foreign investment, perfect training policies, human resource development, and science and technology development policies. At the same time, the State needs to carry out administrative reforms and improve the operational capacity of State management agencies.
Stock market development.
The stock market is the development environment of securities brokerage activities. The development of the stock market directly affects the development of this activity.
To develop the State securities market, it is necessary to pay attention to the following issues.
Firstly , the accounting and auditing system is the most important auxiliary system in the market economy. This system provides necessary and reliable information for determining the basic economic value of the company or information about the financial condition, business performance, and future growth potential of the company. This is basic information that helps in the valuation of securities.
Second , the development of the information disclosure system is of great significance to the participation of members of the securities market, including securities companies. The basic purpose of this system is to provide investors with complete and accurate information related to securities and to prevent fraud in transactions. This is expressed in the regulations on registration and periodic reporting.
The public disclosure system contributes to increasing the credibility of the stock market and solving the problems of asymmetric information, adverse selection and moral hazard. It facilitates information fairness between issuers and investors in the market.
Third , in the development stage of the stock market, the securities depository and clearing system is also very important. Therefore, it needs to be fully considered when establishing the market if the managers do not want the market to be paralyzed.
Developing a securities payment and depository system will facilitate increased efficiency and safety of the market, while also helping to develop the depository, payment, and lending operations of securities companies.
Fourth , the development of a market management and supervision system has a significant impact on the participation of securities companies in the market. The selection of a securities market management model requires careful consideration of factors and must be appropriate to each stage of market development. Management and supervision models are selected on the basis of not allowing the market to become
Casinos with fraud and damage to investors, but the market should not be restricted by excessive State intervention. Excessive intervention will limit the participation of securities companies and this limits the efficiency of the market.
Perfecting the legal system regulating the stock market and securities brokerage activities.
The stock market is likened to a “double-edged sword”. If we do not use it skillfully to promote its positive aspects and limit its negative aspects, the great role of the stock market also means the unpredictable harm it can cause. Therefore, to ensure that the stock market operates safely, effectively and maximizes its effectiveness, it is necessary to have a suitable legal environment.
If financial intermediaries and stock exchanges are allowed to operate freely, the interests of investors will not be guaranteed. However, if the law on securities activities is too strict, it can reduce the excitement of the market.
Legal conditions greatly affect the attraction of securities companies to participate in the market and perform securities brokerage services. The securities market operates on the basis of private ownership of means of production and investors can only feel secure participating in the market when their rights are respected and protected. A complete and synchronous legal system will create conditions to protect the legitimate rights of both securities companies and investors.
The Vietnamese stock market, including brokerage activities of securities companies, was established under the management and supervision of the State management agency, represented by the State Securities Commission, through legal documents directly regulating and supervising the activities of securities companies such as: Enterprise Law 2005, Securities Law 2006, Investment Law 2005, Commercial Law 2005...
The promulgation of these legal documents must ensure uniformity and consistency in a number of issues such as regulations on procedures, business licenses, establishment of branches, agents, representative offices; issues of acquisition, sale, dissolution, merger, etc.
mergers, bankruptcies... to ensure that the business activities of securities companies comply with legal regulations without causing obstacles that limit the effectiveness of the business activities of securities companies and securities brokerage activities.
In the current information technology era, the development of online securities brokerage is inevitable. This field is still new to Vietnam but is gradually developing. Therefore, the State needs to complete the legal framework for online brokerage activities via the Internet, creating favorable conditions for securities companies to further promote online activities and develop electronic securities brokerage activities.
In addition to perfecting the legal system, the State also needs to develop laws to standardize professional ethics standards for stockbrokers. This is an important issue, affecting the healthy and professional development of stockbroking activities.
Improve the management of state management agencies.
The activities of securities companies in general and securities brokerage activities in particular have an impact not only on the interests of investors but also on the stock market and the economy. Therefore, the activities of securities companies are often strictly regulated and managed by state management agencies.
Normally, this management activity includes: the establishment of a securities company must comply with strict regulations, must be licensed and be subject to the management of state management agencies. Securities companies must comply with reporting regimes, public information disclosure regimes, and special supervision regimes. The laws of each country often clearly stipulate restrictions on operations and types of assets that securities companies are allowed to hold.
Depending on the level of development of securities companies and the development of State management agencies, the level of State intervention in the operations of securities companies is different.
Training and human resource utilization.
At the macro-management level, it can be seen that state management agencies on securities-related issues still do not have policies focusing on securities brokerage activities and have not clearly seen the importance of standards on securities brokerage activities. The examination for securities brokerage practice certificates has only been regulated and seriously implemented in the last few years. It is worth mentioning that training courses or the granting of practice certificates are considered by many people as a sufficient condition for practicing the profession, but not considered as a necessary condition, an essential factor to ensure good performance of the work of a securities broker. In other words, those certificates are almost only nominal in value, and have little meaning for the actual work of a securities broker.
The US stockbroker training policy has been in place for a long time with very detailed regulations. In the US, each type of stockbroker is granted a different type of license to practice, and there are strict regulations on registration, scope of practice, responsibilities and minimum capital requirements to get a seat on the Stock Exchange. The State agency managing the stock market should tighten regulations on stockbroker training to make stockbroking more professional.
The State's training policy needs to stipulate more conditions for stockbrokers to practice, not just basic issues, investment analysis and laws applicable in the securities industry as at present. In particular, the issue of professional ethics of stockbrokers needs to be put first in the training program.
Develop in depth the securities brokerage business.
Securities trading in the US is done through highly qualified market experts who are full members of the New York Stock Exchange. To develop a highly professional stock market, specialization like that at the NYSE is what Vietnam should aim for in the future.