Lessons learned for Vietnam

70 THE THIRD INTERNATIONAL CONFERENCE ON: “FINANCE AND ACCOUNTING FOR THE PROMOTION OF SUSTAINABLE...

the United States more than enterprises export to this market. Specifically, in 2018, nationwide, up to 13.2 thousand enterprises imported goods originating from the United States, an increase of 6.3% compared to a year earlier.

Thus, the devaluation of the VND does not support exports much (thereby supporting the surplus trade balance) due to the peculiarities of Vietnam’s economic structure. That is, a lot of exports means a lot of imports. This is because Vietnam’s import and export activities are dominated by the foreign business sector (FDI). This block accounts for 70% of Vietnam’s export turnover and 59% of import turnover in the period 2017-2019.

In summary, through the cases related to currency manipulation that the US accuses of countries (including Vietnam), it can be seen that the currency manipulation evaluation criteria applied by the US are not reasonable. solid foundation, has not yet received the consensus of trading partners, the recognition from international organizations and the expert community as well as the prestigious Research Institutes in the world.

take advantage of incentives from Vietnam- US cooperation and other FTAs as well as tax evasion.

On the other hand, it is necessary to encourage Vietnamese enterprises to actively research, produce and export to the US with technology and raw materials imported from the US, associated with building a closed supply chain to create efficiency. definitely for the business community of the two countries.

Fourth, the functional agencies need to strengthen exchanges and close coordination, speed up progress, seek solutions to effectively solve other issues of interest to the US side (such as intellectual property, intellectual property, etc.). network security, electronic payment…) and outstanding issues that best meet the interests of both countries. In particular, focus on solving difficulties in technology services, promotion, trade in services, introducing and expanding opportunities for Vietnamese businesses to access US goods. Therefore, the two countries need to actively exchange, review problems and promote resolution of US concerns, including effectively implementing action plans towards a harmonious and sustainable trade balance. reduce the trade deficit. With practical actions, we believe that the trade relationship between the two countries will continue to develop to new heights...

Fifth, authorities and businesses need to actively develop scenarios to respond to possible situations in order to have proactive, flexible and timely solutions, minimize negative impacts as well as maintain maintain a stable and sustainable economic-trade relationship with the United States.

Therefore, the trend of Vietnam’s trade surplus to the US will need to be adjusted towards the balance in the coming time. In the face of uncertain developments in global trade, the risk of stagnation caused by the Covid-19 pandemic in the past and in the near future will spur many US corporations to be more interested in investing in Vietnam. to develop a new supply chain model with redundant supply systems located at various locations to ensure sustainability and continuity. US investors assess that Vietnam will become an ideal, important and safe investment location of the global supply chain.

Meanwhile, this is also the time when Vietnam is stepping up to improve the business environment, increase investment, and promote opportunities and potentials to attract investment flows from the United States, especially in areas with high investment potential. high value-added content. That will be a solid foundation for the two countries to balance trade in the future.

CONCLUSION

In order to promote trade relations with the United States in the coming time, in addition to the efforts of Vietnamese enterprises in improving the competitiveness of goods to be able to have a firm foothold in the US market, In the meantime, the Government also needs to direct state management agencies to be proactive in capturing relevant information, preparing documents to explain and prove to the US government when it is alleged that “ currency manipulation”. If there is a close and effective combination between the Vietnamese government and businesses, it is certain that the economic and trade relations between Vietnam and the United States will grow stronger and stronger.

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REFERENCES

1. Dr. Nguyen Xuan Hai (Johns Hopkins University, USA), MSc Le Quynh Trang and Hathaway policy (2020), Vietnam and the injustice of currency manipulation - Dan Tri newspaper on December 21, 2020.

2. Nguyen Duc Long (2021), Looking back on 35 years of monetary policy reform and the operation of the Vietnamese banking system - Banking Journal Digital Special Topic 2021.

3. Dr. Can Van Luc and colleagues (2020), the US accuses Vietnam of currency manipulation: It is necessary to look at it correctly and multi-dimensionally - Dan Tri newspaper on December 21, 2020.

4. Nguyen Tran Minh Tri (2021), Vietnam is not a currency manipulator - Journal of Legislative Research No. 01 (425), January 2021.

5. General Department of Customs, statistics of 2015, 2016, 2017, 2018, 2019, 2020.

6. Web Sites:

http://www.moit.gov.vn/CmsView-EcoIT-portlet/html/print_cms.jsp?articleId=20698.

http://baochinhphu.vn/ Kinh-te/Viet-Nam-khong-thao-tung-tien-te/417779.vgp.

Assoc. Prof. PhD.Vu Van Ninh¹,MSc. Nguyen Thi Thuy Dung²

Abstract: In this study, the relationship between factors including financial leverage, size and profitability of enterprises and stock prices of construction enterprises in Vietnam is analyzed. The main objective of this study is to determine whether there is a significant relationship between the change of factors and the stock prices of construction firms listed on the Vietnamese stock market. For this purpose, 42 construction companies with data from 2015-2019 were selected. The paper tests 3 hypotheses using econometric models. The results indicate that there is a significant relationship between ROE, size and stock price while the relationship between financial leverage and stock price is not statistically significant.

Keywords: Financial leverage, ROE, Stock Price

1. INTRODUCTION

The debate over how a company chooses its capital structure and the factors that influence it is one that has been going on for many years and has huge arguments. There are hundreds of articles on financial ratios and the factors that influence this problem, many theoretical works have analyzed the relationship between debt and equity in achieving a fair rate between them. It is supposed that the way that company’s financial is supported by different methods is one of the topic that was debated many times. The first one was supposed to addressed by Modigliani and Miller [2](1958) and it has been the basis of many analyzes since then, leading to many new studies. Although there have been many studies on this topic, capital structure is still a topic of financial management that still meets a lot of controversy when it comes to specific business groups in each specific period.

Construction enterprises is a group of enterprises that play a very important role in the economy, which have many specific characteristics, so the research on optimal capital structure is based on analysis of listed transportation construction companies would help other companies in the same industries to draw some lessons for themselves.

The rest of the paper is organized as follows: Section 2 shows literature review related to leverage and stock price. Section 3 gives information about the database which is used for calculation, as well as research methodology. Empirical results are presented in Section 4. The last section concludes the paper.

1 Email: vuvanninh@hvtc.edu.vn Academy of Finance

2 University of Transport and Communications

74 THE THIRD INTERNATIONAL CONFERENCE ON: “FINANCE AND ACCOUNTING FOR THE PROMOTION OF SUSTAINABLE...