The Determinants of Firms’ Profitability in Vietnam Agriculture, Forestry and Fisheries

Abstract

The Agriculture, Forestry, and Fisheries business is a top of Vietnam main industries. This research involved applications of quantitative modeling techniques to investigate the profitability of agriculture, forestry, and fisheries firms in Vietnam. Besides, the study still used the qualitative method like an assistant tool. Based on the published financial data of listed agriculture, forestry, and fisheries companies in Vietnam between 2011 and 2015, the profitability was first estimated by using factor analysis. Profitability is one of the most volatile company’s financial indicators: it is affected not only by internal but also by external, macro factors. This thesis probes if there is any relationship between profitability and selected indices according to generally accepted theory. Moreover, the results from data analysis may lead to some useful strategies for a better profit management. In this research, the data of 26 companies were filtered from 42 companies in HOSE, HNX, and UPCoM were combined with using an econometric framework from 2011-2015. Return on Equity (ROE) was regarded as main profitability indices (dependent variables); while capital structure, firm’s size, liquidity, firm growth, working capital, efficiency ratio, inflation and GDP growth rate of agriculture, forestry, and fisheries industry were considered as independent variables. The correlations between dependent and independent variables would be to analyze through the results from testing models and regression function.