Measurement of Successful Leadership via a Nine Factor Model on Bank Profit – A Case of Vingroup in Real Estate Industry in Vietnam

1Dinh Tran Ngoc Huy and Nguyen Dac Anh Chuong

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Abstract:

Vingroup (VIC) has been gaining achievements with Vinfast (cars), VinSmart, Vinpearl, Vinhomes has made very positive contributions to the overall achievements of the real estate sector and industries, deserving of its position as one of the leading group, contributing to economy. Movement of net profit under impacts of cost, stock price and many other factors will reflect the business health of Vingroup and real estate industry. Good business management requires us to consider the impacts of multi macro and micro factors on VIC net profit, and it contributes to promoting business plan and economic policies for economic growth and stabilizing macroeconomic factors. By data collection method through statistics, analysis, synthesis, comparison, quantitative analysis to generate qualitative comments and discussion; using econometric method to perform regression equation and evaluate quantitative results, the article analyzed and evaluated the impacts of NINE (9) macroeconomic factors such as: stock price, VNIndex, risk free rate, lending rate, inflation, GPD growth, S&P500, exchange rate, etc. on net profit of a leading real estate firm, Vingroup (VIC) in Vietnam in the period of 2010-2019, both positive and negative sides. The results of quantitative research, in an eight factor model, show that the increase in inflation, and lending rate and reducing risk free rate has a significant effect on reducing VIC net profit with the highest impact coefficient, the second is decreasing cost. Lst but not least, we recognize that VIC net profit respond much more to yield of government bond, compared to Vinamilk (a milk leading firm in F&B industry). This research finding and recommended policy also can be used as reference in policy for real estate system in many developing countries.

Keywords:

VIC Net Profit, Stock Price, GDP Growth, Inflationary, Risk Free Rate. Market Interest Rate.

Paper Details
Month4
Year2020
Volume24
IssueIssue 5
Pages3280-3297