What is the financial industry?
Finance is one of the professions with a great demand for labor in all economies and is increasingly chosen by young people to pursue. The simplest definition of “finance” is a study of money. Money is a tool that makes exchanging goods and storing assets quick and convenient. Along with the development of society, the role of money becomes more and more important and complex, from which the new “finance” was born. More specifically, “finance” is a science about the management and coordination of cash flows, banking, investments, assets and capital.
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There are many ways to divide finance into smaller sub-sectors. The first way is to divide finance into financial systems (corporate finance and public finance) and financial instruments related to assets (assets) and capital (liability). From another perspective, finance includes public finance, corporate finance and personal finance.
Who is the recruiter?
Investment Bank:Investment banking focuses on advising businesses, corporations, governments and other large institutions in the buying and selling of bonds and stocks. The staff here are mainly investment bankers and stock traders (security salespeople/traders).
In Vietnam, investment banks are still underdeveloped. The major financial institutions that specialize in and provide investment services in Vietnam are usually securities companies and investment funds.
Vietnam: Saigon Securities, VNDirect, HSC,… and investment funds: Horizon Capital, VinaCapital.USA: Goldman Sachs, Barclays, JPMorgan, Morgan Stanley, Deutsche Bank, Bank of America Merrill Lynch. Commercial Bank (Commercial Bank):Commercial banks have the role of coordinating cash flow in society for customers: businesses, organizations and individuals with capital or savings needs. Common jobs are credit officers (to make loans) or tellers (bank tellers). It should also be noted that commercial banks now often have an investment department that acts as an investment bank, so the line to distinguish between investment banking and commercial banking is becoming increasingly blurred. difficult to determine.
Vietnam: Vietcombank, Vietinbank, Agribank, BIDV, etc.US: JPMorgan Chase, Bank of America, Wells Fargo, etc. Asset management firms/Hedge funds: specialized investment funds that manage the assets of individuals or organizations and use it to invest and profit strategically, and then take commissions from the profits. Examples of investments are stocks, securities that are publicly traded on stock exchanges (Ho Chi Minh Stock Exchange – HOSE, Hanoi Stock Exchange – HNX or New York Stock Exchange – NYSE). Common jobs are portfolio manager or security analyst.
Vietnam: VinaCapital Investment Fund, Mekong Capital Investment Fund,…USA: Vanguard Group, Pacific Investment Management, JP Morgan Asset Management “Private Equity” (PE) Personal Equity Fund: PE investment funds are funds that manage the capital of organizations or wealthy individuals. Unlike “hedge funds” or “money management firms,” which often buy and sell publicly traded stocks or bonds to own a portion of a business, PE funds typically buy back an entire company. . The company acquired by PE funds will withdraw from the stock market and become private companies. PE funds will restructure these companies and put them back on the market for a profit. The main jobs in PE funds are investment bankers, market analysts, or restructuring specialists with expertise such as analyzing company performance, negotiating prices. of the transaction, raising capital or performing the restructuring of the acquired companies.
Vietnam: Dragon Capital, Mekong Capital, VinaCapital, Vietnam Investment GroupUSA: The Carlyle Group, Kohlberg Kravis Roberts, The Blackstone Group, Apollo Global Management Real Estate Investment Corporation: are companies that invest in real estate projects, buy or sell projects to develop the project to a point and then resell it at a profit. These companies buy and sell projects not to create final products (buildings) but mainly buy, build for a time and then resell and make a profit from that construction process. Common jobs are analyst or trader. Many PE funds also invest in real estate projects like real estate investment companies.
Vietnam: VinGroup, FLC Group, Hoa Phat Group My: Michigan Realty Solutions, Ohio Investments, Pendo Management GroupCorporate Finance: This department will be in charge of all financial related matters of the company/group, including mergers and acquisitions (Merger and Acquisition), profitable investments, capital structure adjustments, … aims to enhance corporate value and benefits to the company’s shareholders.
See also: Legal Capital What is English, Legal Capital
CFO/Corporate Finance of Kido Group, VinGroup, UnileverInsurance companies: Insurers manage a large amount of cash that is paid by customers when participating in their insurance plan, then use it to invest with high returns, and revolving capital to cover the customer’s risks row.
Prudential, Liberty Insurance, Bao Viet
HOW TO FIND WORK IN THE FINANCE INDUSTRY?
In the Forbes list of the 100 richest people in the world, more than 90% of them work in the financial industry or are related to the financial industry. But to be successful in the financial industry and become financially wealthy in the long term in a legitimate and legal way is not an easy road.
The minimum requirement to be able to work in companies, businesses or financial institutions is a bachelor’s degree. Moreover, a master’s degree is also becoming more and more popular and gradually becoming a necessary requirement for success.
In addition to bachelor’s, master’s or doctoral degrees, employees in the financial industry also need to pass exams to get certificates such as: ACCA, CPA or CFA.
In today’s extremely competitive job market, a degree is only part of the story. Professional hard skills such as Proficiency in Excel, PivotTable or VBA is extremely important. Soft skills and personality suitable for the industry are also weighty factors when employers look at a candidate. To be successful in the financial industry, Analytical and problem solving ability nice well communication skill considered essential. In addition, candidates need to demonstrate that they can work under high pressure, have the ability to adapt quickly and improvise, work well in groups and especially grasp small details. The banking and finance industry is often known for its intensity, long and stressful working hours. The candidate needs to demonstrate to the employer that he or she fits the company culture and is an easy-going, friendly person that colleagues will want to be around and work with for 60-100 hours/week.
With the current situation of supply more than demand, the banking and finance industry is a promising but also challenging industry to enter.
CAREER DEVELOPMENT ROAD
The finance industry has many ways of development, but a popular path is that after completing the undergraduate level (undergraduate) will be working as an analyst (Analyst) within 2-3 years. After that, some people will stay and continue to be promoted to Associate (a higher level than Analyst), Deputy Director (Vice-President), Director (Director) and finally Managing Director (Managing Director). or switch to work on the buy-side (Hedge fund, Private Equity firms); while some will go back to school to earn a Master of Business Administration (MBA) and then move on to other directions (Consulting – Consulting, Non-profit Organizations – Non-profit,…) Banks Major investors on Wall Street are currently tending to keep Analysts in by shortening the promotion period from Analyst to Vice-President to 6-7 years.
In Vietnam, a degree in Economics/Finance can also open a lot of doors. A path chosen by many young people who want to work in Corporate Finance recently is to participate in Management Trainee programs of large companies (see details at Management Trainee). , which is aimed at new graduates. In contrast, to work in hedge funds or securities firms, analysts are usually expected to have 2-3 years of experience and often come from audit experience in large companies. company Big4. The reason for this is that in Vietnam the investment market is still young, companies have become more cautious in choosing people because they themselves are not large enough to set up a thorough and thorough training program. like abroad.
FINANCIAL INDUSTRY CONTEXT IN VIETNAM
In the US, Europe and countries with large and developed stock markets, the labor market for the Finance – Banking industry is large but increasingly competitive and is often known as one of the sectors with the highest rate of employment. receive the lowest. Especially for international students, this competition becomes even more intense when they only have to choose from large companies that are able and willing to sponsor H1B work visas.
In Vietnam, the volume of supply with hundreds of thousands of bachelors of Finance and Banking every year is very large, many times exceeding the recruitment demand of banks, organizations and investment funds. According to Dan Tri, in 2015, 12,000 out of 29,000 new bachelors of finance and banking were registered as unemployed. Vietnamese students who have just graduated from university are mostly commented that they lack soft skills, do not have a full understanding of the industry, and especially do not know how to take advantage of relationships (network) to find opportunities for students. me. Meanwhile, companies with low turnover rates tend to demand higher requirements from candidates, especially for investment funds.
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Finance is a key industry that plays an important role in the development of an economy. To succeed in this industry, students need to equip themselves with necessary skills including hard skills (financial analysis, market) and soft skills (communication, teamwork, adapting to new environments). school). Although the finance industry is associated with great work pressure, this industry still attracts a large number of students after graduation because of its attractiveness for many reasons such as the diverse nature of jobs and income sources. high. To make the right decision for yourself, you need to do thorough research through various sources of information, talk to people who have worked in the industry, and best of all, get real-world experience through internships. If the decision to pursue a career in finance comes only from family and social pressures, it will be difficult for you to develop and feel happy with your career choice. And if you are pursuing finance and find meaning and joy in what you do, then this is the industry you should continue to pursue in order to succeed.