Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2002

A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management

Vietnam is integrating into the global economy with many changes. The birth of its new stock market is a significant mark for the development of the capital market. As a young factor of the economy, it puts some doubts on investors in dete1mining the intrinsic value of the new corporations and forces managers to find the way to create value for their compames. The research is an effort to discover problems in valuing Vietnamese corporations through a case study of Refrigeration Electrical Engineering Corporation. The research is not only about how to value companies. It is also about how to use valuation as a tool for better decision-making. Choosing an appropriate strategy and assessing potential opportunities is an important issue in valuation. The research suggests that the application of the option pricing approach as a way of strategic thinking in assessing potential opportunities in an uncertain emerging market such as Vietnam should be under consideration. Through the case study "Refrigeration Electrical Engineering Corporation", the research may hopefully help stakeholders to have a framework of valuation on Vietnamese Corporations in the dawn of their history.