Evaluation of Systematic Risk of Viet Nam Construction Material Industry during the Pre-Low Inflation Period 2012-2014

Construction material industry is one of the most rapidly growing sectors, with many achievements both in Vietnam and in Asia. In recent years, its rapid growth has produced revenues from business activities. One of the key objectives of this paper is to assess market risk volatility in construction material businesses in the 2012-2014 pre-low inflation period. Our first findings are to be found that beta values in general (< 1) for most of our construction material companies are appropriate when we apply quantitative, statistical and analytical methods to evaluate the asset beta and beta CAPM of 20 listed Viet Nam construction material companies. However, we analyze the market risk volatility, determined by asset and equity beta var,  during the post-low inflation period in this sector and compare results in two circumstances: risk fluctuation in pre-low inflation time 2012-14 is lower than that in post-low inflation period 2015-2017. Finally, if we observe in 2 periods, Beta CAPM or equity beta mean goes up in case post-low inflation period.  At last, policies in risk management and governance are suggested in the conclusion based on the research results and findings. In the post-low inflation environment, we alert that Beta fluctuations could be little higher.

Author(s) Details

Dinh Tran Ngoc Huy
Banking University Ho Chi Minh City, Vietnam and Graduate School of International Management, International University of Japan, Niigata, Japan.

Pham Tun Anh

Thuongmai University, Ha Noi, Vietnam.

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