Vietnam Bond Market free essay sample

In recent years, the issue of efficiently mobilizing capital has become the concern of all companies. There are some ways of doing this: borrowing from the banks, issuing stocks or issuing bonds. However, when the interest rate of borrowing from banks is very high due to high inflation, together with the stock market is quite instable; calling for capital from bond market is much more preferred by investors. In the context of this report, some major points regarding the bond market in Vietnam are presented. Firstly, a common picture about the Vietnam bond market is drawn. Next come the types of bonds and major participants in this market. Finally, several ways by which bonds are issued are described in details. I/ Overview of Vietnam bond market The Vietnam bond market was established in 2000, but it only developed sharply after 2002 when the government allowed issuing many types of bonds and especially after the appearance of the Ho Chi Minh stock exchange. We will write a custom essay sample on Vietnam Bond Market or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Recently, the outstanding volume of bonds has increased rapidly, as shown in the graph below. Figure 1. Bonds outstanding volume and bond outstanding/ GDP. Source: Ministry of Finance of Vietnam) Up to the year 2006, the proportion of outstanding bond volume over GDP reached the figure of 13%, in comparison with only 3% in 2001. Nevertheless, compared with the Vietnam stock market that accounts for more than 40% of the total GDP, that of bonds is very low. In particular, this rate of Vietnam is far below the level of other countries in Asia. In most Asia countries, the bond accounts for more than half of the total GDP whereas in Vietnam, it takes less than 15% of GDP. Figure 2. Outstanding bond volume/GDP in some Asia countries. Source: Ministry of Finance of Vietnam) All things considered, one of the main features easily to be realized in Vietnam now is that the bond market has not been attractive enough to most investors. Yet, according to many specialists, it is likely that this market will become an extremely attractive capital-mobilizing channel in the near future. II/ Types of bonds At the moment, there are three main types of bonds in Vietnam: government bonds, municip al bonds and corporate bonds. Here comes the pie chart showing the proportion of each types contributing to Vietnam bond market. Figure 3: Proportion of different types of bonds (Source: Ministry of Finance of Vietnam) As can be seen, the government bonds, which are issued by both the State Treasury of Vietnam and the Vietnam Development Bank, dominate almost the market with 64% and 18% respectively. The municipal bonds currently issued by three local governments including Hanoi, Ho Chi Minh and Dong Nai, account for only 7% of the total. The rest 11% belongs to the corporate bonds which are issued by the companies. Nevertheless, there are many intensive conditions of the government for issuing corporate bonds. Therefore, until now there are only 10 companies who meet enough conditions to issue corporate bonds, such as EVN, Vinashin, Song Da Corporation, etc. In comparison with other countries in the region, the structure of Vietnam bond market is quite different. Figure 4: Structure of bond market in some Asia countries (Source: Ministry of Finance of Vietnam) While in Korea, Singapore and especially Malaysia, the contribution of government and corporate bonds to the market is quite balance, that of Vietnam shows a significant difference. Government bonds dominate more than three forts of the market, and the rest 11% belongs to corporate bonds. That large disparity warns that we are dealing with a strange situation in bond market and some actions need to be taken to balance the two types of bonds. III/ Major participants 1. Individual investors According to the SSC, until September 2008, the number of investors had increased by 47 per cent to 460,000 compared with last December. In fact, when in many other countries, institutional investors usually make up a large part of the securities market, the situation in Vietnam is on the contrary with individual holding 70% of the total accounts. However, Vietnamese individual investors still prove to be unprofessional for some reasons: Main source of capital usually coming from banks, lack of reliable information about the market, limitation in accurate evaluation of the value of bonds and the bond issuing organizations. Therefore, they have tendency to invest following the majority: sell immediately when prices of securities decrease and buy right away when prices increase. This will lead to the high fluctuation of the market, so easily results in the losses suffering of many investors. 2. Fund managers Fund management is the professional management of various securities (shares, bonds etc. ) to meet specified investment goals for the benefit of the investors. Fund management companies play an important part in the development of securities market. Since the establishment of VietFund Management, the first fund management company in Vietnam in 2003, until now, 38 fund managers have been granted operation licenses by SSC. Among them, FPT Fund Management Joint Stock Company has the highest chartered capital with 110 billion VND and Lotus IMC has lowest charter capital with 5 billion VND. . Brokers Broker has recently occupied the position of the hottest career for youngsters, although it is still new in Vietnam. The term â€Å"broker† is used to indicate a qualified and regulated professional who buys and sells all kinds of securities through market makers or Agency Only Firms on behalf of investors. Brokers play a leading role in developing securities market, and since the esta blishment of bond market in Vietnam, the number of brokers has increased rapidly, with hundreds of people working for nearly 100 brokerages (according to vietbao. net). In 2008, due to the new regulation of The Ministry of Finance, brokerages are now the main target for the bond market. However, the lack of knowledge and experience has left Vietnamese brokers with some fatal weakness: limited in quantity, unable to perform all the service (in Vietnam, brokers only concentrate on execution, instead of advisory and discretionary dealing), lack of certificate and qualification, etc. IV/ The number of companies listed There exists an inequality in the number of securities in the Vietnam. Over 300 stocks and 600 bonds are now listed even though the stock market is more active than that of bond. Another noticeable feature is that bond market has only 10 corporate listings, compared to over 600 government listings, in which most issuers are state-owned corporations. V/ Issuance of bonds Basically, there are two ways of issuing bonds: private placement and public offering 1. Private placement This is the direct sale of securities to a limited number of investors, often the institutions such as mutual funds or insurance companies. Compared to public bonds, those bonds are more likely to have call provision. The issuers usually take their bonds back before the maturity date. Certainly, the bonds that are more callable are riskier because the investors whose bonds have been called have to face with reinvestment risk. However, investors can get higher rate of return as compensation for the risk they bear. Definitely, such bonds are more in favor of the risk-lovers. 2. Public offering Public offering means the issuance in which securities can be exchanged widely among the public. The separation of private placement and public offering aims at ensuring that the companies using public offering must have high-quality, good operations in order to protect the public from the default risk. Public offering can take the forms of underwriting or auction. 2. 1. Underwriting When a company wants to go public, the first thing it does is to hire an intermediary known as underwriter. In most situations, the underwriters are the investment banks that act as the middleman between the public and the corporation. If the investment bank and company reach an agreement to do underwriting then investment bank will buy the new securities for an agreed price, and resell them to the public at a markup, bearing all of the expenses associated with the sale. The company gets the guaranteed funds even if the investment bank does not sell all of the securities. Thus, the investment bank takes a significant risk in a firm commitment. 2. 2. Auction Auctions are designed to minimize the cost of financing the corporate debt by promoting broad, competitive bidding and liquid secondary market trading. A review of the auction process from the announcement of a new issue to the delivery of securities reveals how these objectives have been met. However, in the recent times, many of Vietnamese government bond auctions have not been successful. The major cause is supposed that the government can not match the coupon rate of private investors. Creditors usually applied a high level of coupon that the government can not offer. Both customers and suppliers cannot meet at the common point to bring bonds to market. Conclusion There have been much more debate among the issues of Vietnam bond market and some discussion points should be noticed. Regarding the domination of government compared to corporate bonds, two main causes have been drawn. Firstly, there are many intensive conditions for companies to issue corporate bonds. Beside the requirement of owning at least 10 billion chartered capital and making a profit of the previous year, the companies need to have no bad debts over 1 year and prepare the audited financial statements of the last year to ensure transparency for investors. Secondly, default risk is higher with corporate bonds than government bonds that also means a higher interest rate of corporate bonds. Therefore, very few companies can afford this type of cost and few companies issue corporate bonds as a result. Concerning the difference between Treasury Bills and Treasury Bonds, even they are both issued by the Government and bearing no default risk, their maturity dates are far different. Treasury Bills have the short terms of 3 months or 6 months whereas Treasury Bonds have long terms of 5 years, 10 years or more. The issue of high inflation has a significant influence on Vietnam bond market, one of which is the decrease in value of bonds. Apparently, the price of bond is equal to the coupon divided by the bond yield. Coupon is fixed, so when inflation rate is high, leading to high bond yield, the bond price falls accordingly. Noticeably, although bonds have lower default risk premium than stocks, their liquidity risk premium is considerably higher than that of stock. The low liquidity of bonds compared to stocks can be explained by two reasons. Firstly, the stock market is much more active than bond which pushes up the transactions of stocks among investors and increases liquidity of stocks. More importantly, the value of bonds in each transaction is quite large (about 500 million VND for each), few companies can afford them and therefore, makes it harder to exchange bonds in the market. After purchasing those bonds, investors tend to hold them until the maturity dates, which significantly reduces the liquidity of bonds. Moreover, it has been asked the reasons why the rate of individual investors in Vietnam is much higher than other countries (70% and 30% respectively). It is supposed that buying bonds is almost compulsory with individual employees in the workplace. Moreover, investment funds have not yet implemented their roles effectively in Vietnam, so small source of capital can not be gathered to make up the market for institutional investors. It is also important to differentiate between the brokers and market makers or dealers. The dealers act as both buyer and seller of bonds. They purchase bonds from investors and then resell them at a higher price to others. Meanwhile, the brokers do not actually make any purchasing, and only act as intermediaries between investors and dealers. Finally, the question about the difference in interest rate of bonds issued under private placement and public offering was raised. As mentioned in the report, the holders of private placement bonds often bear reinvestment risk, which in turn leads to higher return or higher interest rate. That is the reason why the interest rate of bonds issued by private placement is usually higher than that of public offering. All in all, there still exists a lot of concerning around the topic of the Vietnam bond market. General speaking, this market has not developed accordingly to its potential. However, with the efforts of Vietnam Government to enhance the bond market’ operations, a bright perspective has been open to this field. Vietnam Bond Market free essay sample In recent years, the issue of efficiently mobilizing capital has become the concern of all companies. There are some ways of doing this: borrowing from the banks, issuing stocks or issuing bonds. However, when the interest rate of borrowing from banks is very high due to high inflation, together with the stock market is quite instable; calling for capital from bond market is much more preferred by investors. In the context of this report, some major points regarding the bond market in Vietnam are presented. Firstly, a common picture about the Vietnam bond market is drawn. Next come the types of bonds and major participants in this market. Finally, several ways by which bonds are issued are described in details. I/ Overview of Vietnam bond market The Vietnam bond market was established in 2000, but it only developed sharply after 2002 when the government allowed issuing many types of bonds and especially after the appearance of the Ho Chi Minh stock exchange. We will write a custom essay sample on Vietnam Bond Market or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Recently, the outstanding volume of bonds has increased rapidly, as shown in the graph below. Figure 1. Bonds outstanding volume and bond outstanding/ GDP. Source: Ministry of Finance of Vietnam) Up to the year 2006, the proportion of outstanding bond volume over GDP reached the figure of 13%, in comparison with only 3% in 2001. Nevertheless, compared with the Vietnam stock market that accounts for more than 40% of the total GDP, that of bonds is very low. In particular, this rate of Vietnam is far below the level of other countries in Asia. In most Asia countries, the bond accounts for more than half of the total GDP whereas in Vietnam, it takes less than 15% of GDP. Figure 2. Outstanding bond volume/GDP in some Asia countries. Source: Ministry of Finance of Vietnam) All things considered, one of the main features easily to be realized in Vietnam now is that the bond market has not been attractive enough to most investors. Yet, according to many specialists, it is likely that this market will become an extremely attractive capital-mobilizing channel in the near future. II/ Types of bonds At the moment, there are three main types of bonds in Vietnam: government bonds, municipal bonds and corporate bonds. Here comes the pie chart showing the proportion of each types contributing to Vietnam bond market. Figure 3: Proportion of different types of bonds (Source: Ministry of Finance of Vietnam) As can be seen, the government bonds, which are issued by both the State Treasury of Vietnam and the Vietnam Development Bank, dominate almost the market with 64% and 18% respectively. The municipal bonds currently issued by three local governments including Hanoi, Ho Chi Minh and Dong Nai, account for only 7% of the total. The rest 11% belongs to the corporate bonds which are issued by the companies. Nevertheless, there are many intensive conditions of the government for issuing corporate bonds. Therefore, until now there are only 10 companies who meet enough conditions to issue corporate bonds, such as EVN, Vinashin, Song Da Corporation, etc. In comparison with other countries in the region, the structure of Vietnam bond market is quite different. Figure 4: Structure of bond market in some Asia countries (Source: Ministry of Finance of Vietnam) While in Korea, Singapore and especially Malaysia, the contribution of government and corporate bonds to the market is quite balance, that of Vietnam shows a significant difference. Government bonds dominate more than three forts of the market, and the rest 11% belongs to corporate bonds. That large disparity warns that we are dealing with a strange situation in bond market and some actions need to be taken to balance the two types of bonds. III/ Major participants 1. Individual investors According to the SSC, until September 2008, the number of investors had increased by 47 per cent to 460,000 compared with last December. In fact, when in many other countries, institutional investors usually make up a large part of the securities market, the situation in Vietnam is on the contrary with individual holding 70% of the total accounts. However, Vietnamese individual investors still prove to be unprofessional for some reasons: Main source of capital usually coming from banks, lack of reliable information about the market, limitation in accurate evaluation of the value of bonds and the bond issuing organizations. Therefore, they have tendency to invest following the majority: sell immediately when prices of securities decrease and buy right away when prices increase. This will lead to the high fluctuation of the market, so easily results in the losses suffering of many investors. 2. Fund managers Fund management is the professional management of various securities (shares, bonds etc. ) to meet specified investment goals for the benefit of the investors. Fund management companies play an important part in the development of securities market. Since the establishment of VietFund Management, the first fund management company in Vietnam in 2003, until now, 38 fund managers have been granted operation licenses by SSC. Among them, FPT Fund Management Joint Stock Company has the highest chartered capital with 110 billion VND and Lotus IMC has lowest charter capital with 5 billion VND. . Brokers Broker has recently occupied the position of the hottest career for youngsters, although it is still new in Vietnam. The term â€Å"broker† is used to indicate a qualified and regulated professional who buys and sells all kinds of securities through market makers or Agency Only Firms on behalf of investors. Brokers play a leading role in developing securities market, and since the esta blishment of bond market in Vietnam, the number of brokers has increased rapidly, with hundreds of people working for nearly 100 brokerages (according to vietbao. net). In 2008, due to the new regulation of The Ministry of Finance, brokerages are now the main target for the bond market. However, the lack of knowledge and experience has left Vietnamese brokers with some fatal weakness: limited in quantity, unable to perform all the service (in Vietnam, brokers only concentrate on execution, instead of advisory and discretionary dealing), lack of certificate and qualification, etc. IV/ The number of companies listed There exists an inequality in the number of securities in the Vietnam. Over 300 stocks and 600 bonds are now listed even though the stock market is more active than that of bond. Another noticeable feature is that bond market has only 10 corporate listings, compared to over 600 government listings, in which most issuers are state-owned corporations. V/ Issuance of bonds Basically, there are two ways of issuing bonds: private placement and public offering 1. Private placement This is the direct sale of securities to a limited number of investors, often the institutions such as mutual funds or insurance companies. Compared to public bonds, those bonds are more likely to have call provision. The issuers usually take their bonds back before the maturity date. Certainly, the bonds that are more callable are riskier because the investors whose bonds have been called have to face with reinvestment risk. However, investors can get higher rate of return as compensation for the risk they bear. Definitely, such bonds are more in favor of the risk-lovers. 2. Public offering Public offering means the issuance in which securities can be exchanged widely among the public. The separation of private placement and public offering aims at ensuring that the companies using public offering must have high-quality, good operations in order to protect the public from the default risk. Public offering can take the forms of underwriting or auction. 2. 1. Underwriting When a company wants to go public, the first thing it does is to hire an intermediary known as underwriter. In most situations, the underwriters are the investment banks that act as the middleman between the public and the corporation. If the investment bank and company reach an agreement to do underwriting then investment bank will buy the new securities for an agreed price, and resell them to the public at a markup, bearing all of the expenses associated with the sale. The company gets the guaranteed funds even if the investment bank does not sell all of the securities. Thus, the investment bank takes a significant risk in a firm commitment. 2. 2. Auction Auctions are designed to minimize the cost of financing the corporate debt by promoting broad, competitive bidding and liquid secondary market trading. A review of the auction process from the announcement of a new issue to the delivery of securities reveals how these objectives have been met. However, in the recent times, many of Vietnamese government bond auctions have not been successful. The major cause is supposed that the government can not match the coupon rate of private investors. Creditors usually applied a high level of coupon that the government can not offer. Both customers and suppliers cannot meet at the common point to bring bonds to market. Conclusion There have been much more debate among the issues of Vietnam bond market and some discussion points should be noticed. Regarding the domination of government compared to corporate bonds, two main causes have been drawn. Firstly, there are many intensive conditions for companies to issue corporate bonds. Beside the requirement of owning at least 10 billion chartered capital and making a profit of the previous year, the companies need to have no bad debts over 1 year and prepare the audited financial statements of the last year to ensure transparency for investors. Secondly, default risk is higher with corporate bonds than government bonds that also means a higher interest rate of corporate bonds. Therefore, very few companies can afford this type of cost and few companies issue corporate bonds as a result. Concerning the difference between Treasury Bills and Treasury Bonds, even they are both issued by the Government and bearing no default risk, their maturity dates are far different. Treasury Bills have the short terms of 3 months or 6 months whereas Treasury Bonds have long terms of 5 years, 10 years or more. The issue of high inflation has a significant influence on Vietnam bond market, one of which is the decrease in value of bonds. Apparently, the price of bond is equal to the coupon divided by the bond yield. Coupon is fixed, so when inflation rate is high, leading to high bond yield, the bond price falls accordingly. Noticeably, although bonds have lower default risk premium than stocks, their liquidity risk premium is considerably higher than that of stock. The low liquidity of bonds compared to stocks can be explained by two reasons. Firstly, the stock market is much more active than bond which pushes up the transactions of stocks among investors and increases liquidity of stocks. More importantly, the value of bonds in each transaction is quite large (about 500 million VND for each), few companies can afford them and therefore, makes it harder to exchange bonds in the market. After purchasing those bonds, investors tend to hold them until the maturity dates, which significantly reduces the liquidity of bonds. Moreover, it has been asked the reasons why the rate of individual investors in Vietnam is much higher than other countries (70% and 30% respectively). It is supposed that buying bonds is almost compulsory with individual employees in the workplace. Moreover, investment funds have not yet implemented their roles effectively in Vietnam, so small source of capital can not be gathered to make up the market for institutional investors. It is also important to differentiate between the brokers and market makers or dealers. The dealers act as both buyer and seller of bonds. They purchase bonds from investors and then resell them at a higher price to others. Meanwhile, the brokers do not actually make any purchasing, and only act as intermediaries between investors and dealers. Finally, the question about the difference in interest rate of bonds issued under private placement and public offering was raised. As mentioned in the report, the holders of private placement bonds often bear reinvestment risk, which in turn leads to higher return or higher interest rate. That is the reason why the interest rate of bonds issued by private placement is usually higher than that of public offering. All in all, there still exists a lot of concerning around the topic of the Vietnam bond market. General speaking, this market has not developed accordingly to its potential. However, with the efforts of Vietnam Government to enhance the bond market’ operations, a bright perspective has been open to this field.

Experiential Learning Theory The WritePass Journal

Experiential Learning Theory Experiential Learning Theory IntroductionDescription of a case from my teachingLearning theory applicable to my teaching caseExperiential Learning Theory (Kolb)Principles of Experiential Learning:Four Stages of Kolb’s Learning CycleConcrete experience:Reflective observation:Abstract conceptualization:Active experimentation:Four Types of Learning Styles (Kolb, 1976)AssimilatorsConvergers   AccommodatorsDivergersRelevance of KOLB Learning theorY TO MY CASEConcrete Experience:Reflection: Abstract Conceptualisation:Active Experimentation:Some Practical Difficulties and Potential ImprovementsReferencesRelated Introduction It is difficult to define learning but I understand from my teachers that it is the acquisition of knowledge and skills from instructions or studies. The teachers have an inclination and desire to help our learners acquire, maintain or develop the knowledge, skills and attitudes that they need in the context of their everyday work (Mann 2002). According to Knowles, learning is broadly defined as the occurrence of change in a person with regards to behaviour, skills, knowledge and attitude. (Knowles 2005).    Description of a case from my teaching This was an intra-operative training for a Core Medical Trainee doctor (CT Doctor) in the reconstruction of tissue defect using a local skin flap. The trainee had never done this procedure before independently but had seen similar procedures being done and is regularly seeing the postoperative results of cases operated by me and other colleagues in the out patient follow up clinics. The aim of this teaching was a one to one surgical skill teaching of how to do a rhomboid flap, which is a transposition flap to reconstruct the defect following excision of a lesion. Though it was a teaching of an operative technique, it involved three stages namely pre-operative planning, per-operative practical procedure and post-operative documentation and reflection on the performance. The student usually is required to have preliminary prior knowledge about the skin anatomy including the components of flaps, blood circulation and different types of flap configurations based on the design (transposition, rotation and advancement flaps). The student is taught about the preparation on the operating table, draping the operation site, observing all aseptic precautions, removal of the skin lesion (this part is done me in this teaching session), planning of the flap, raising the flap, insetting the flap to fill the defect, suturing the flap and donor site, applying the dressing, documentation of operation notes, reflection on the performance and agreeing on what changes needed to improve the performance next time. Learning theory applicable to my teaching case Experiential Learning Theory (Kolb) The experiential learning theory was developed by Kolb emphasizing the importance of experience in the learning process and based his theory on the work of Dewey, Lewin and Piaget (Kolb 1984). Kolb offers a working definition of learning as â€Å"a process whereby knowledge is created through the transformation of experience† and emphasizes the importance of adaptation, as knowledge is not static but changing, as we learn and relearn through the process of ongoing experience which changes the practice. Kolb built this upon six propositions (Kolb 1984): Learning is best conceived as a process, not in terms of outcomes    Learning is a continuous process grounded in experience    The process of learning requires the resolution of conflicts between dialectically opposed modes of adaptation to the world    Learning is an holistic process of adaptation to the world    Learning results from synergistic transactions between the person and the environment    Learning is a process of creating knowledge Principles of Experiential Learning: Learning occurs best when people learn through their own experiences and from the reflections of their own experiences rather than through lectures and theories to generate knowledge and skills. In learning what the learners do is more important rather than what they know Experiential learning makes the learners’ behaviour and attitudes explicit so that they can be assessed to construct it better for the future experiences. It is not just sufficient to teach the learner what to do but they need to be actually shown how to do and also how to improve it. The cyclical learning offers the learners continuous improvement by repeating the learning wheel over and over. Continuous use of the experiential learning cycle guides individuals and groups or teams towards improved performance and high quality outcomes. Experiential learning is not just about acquiring knowledge and skills but generating experience in the learner to discover what it is like, how it made them feel and what it meant to them, which in turn is the key to generating greater skills. The new experiences not only generate new ideas but also dispose of or modify the old ones. Experiential learning gives importance to the key aspect of learning which is to achieve change in behaviour and attitude by the holistic approach of addressing cognitive, emotional and the physical aspect of the learner. Many learners feel experiential learning process gives a sense of satisfaction, reward or gift because of its value is appreciated by the learner as a vital learning tool Kolb developed a cyclical learning process consisting of four stages (abilities): Concrete experience (abilities)    â€Å"Doing something† Reflective observation (abilities)    â€Å"Observing and reflecting on the action† Abstract conceptualization (abilities) â€Å"Thinking and finding where the action fits in with theory† Active experimentation (abilities) â€Å"Planning to implement the idea to solve actual problems The learning can begin at any of the four stages (Kolb Fry 1975) but needs to go through all four stages to complete and progress further for learning to continue. Kolb and Fry developed four types of learning styles people use and they can be placed between concrete experience and abstract conceptualization; and active experimentation and reflective observation as shown below: Four Stages of Kolb’s Learning Cycle Concrete experience: The learner performs an activity and gains experience. The activity can be a demonstration, a case study or learning a skill such as assisting an operation or performing an operation under supervision. The learner links this awareness or experience with his prior knowledge or experience resulting in a new experience or knowledge and this forms a basis for future experience. Reflective observation: The learner reflects upon the performance as a self-reflection, with that of the observer who is usually the teacher or from a small group in the form of discussion or constructive criticism. This is very important for the learner to link in with his prior knowledge and experience and move forward.    Abstract conceptualization: The learner develops a concept or theory from the knowledge gained through this experience and makes some plans to alter or change his future practice. Active experimentation: At this stage the learner puts into practice of the lessons learnt from this experience to experiment the solutions to improve the new experiential cycle. Four Types of Learning Styles (Kolb, 1976) Assimilators (Abstract conceptualisation reflective observation): This group has a strong ability to learn better when provided with sound logical theories to practice and reflect. They are concerned with abstract concepts than people. Convergers   (Abstract conceptualisation active experimentation): This group learn better when exposed to practical applications of concepts and theories. They are focussed on solving specific problems by reasoning. Accommodators (Concrete experience active experimentation): Their greatest strength is doing things and learn better when given opportunity to have â€Å"hands-on† experiences. They perform well when required to react to immediate circumstances Divergers (Concrete experience reflective observation): This group is strong in imaginative ability and are good at generating ideas and seeing things from different perspectives. They are interested in people. Though there are different predominant styles of learning in each learner, there is considerable overlap and mixture of different situations that is likely to complement the learning. Kolb’s model provides an invaluable practical framework for designing experiential learning for adults. Relevance of KOLB Learning theorY TO MY CASE Concrete Experience: The CT doctor started from the stage of concrete experience when the flap procedure was planned. He has seen me doing the flap procedure before and he has also assisted me to perform this procedure before. We had discussion pre-operatively, which triggered his pre-existing knowledge about the flap and his prior knowledge of anatomy, technique of flap elevation, insetting, and suturing in place. This is followed by the operative procedure done by him and I assisted him. This practical experience imparted new level of understanding to him and assimilated with his prior knowledge. Reflection: After the completion of the operation and documentation, we had time to reflect on this new experience and consolidate the experience with the prior knowledge to form a new knowledge.   During the discussion, I have acknowledged the good points and both have agreed the importance of tissue handling, suture placements in relation to tissue planes and the need to trim off the excess bulky tissues in the flap to fill the defect better. Abstract Conceptualisation: As a result of above discussion and feedback, we have identified areas for improvement as mentioned above for the transposition flap. We have agreed that I will assist him again in another similar case when he can apply those principles during the procedure. I also introduced the concept of rotation flap and advancement flap as in some cases, after removal of lesion and creating the defect, it is not always possible to perform transposition flap. The learner has some prior theoretical knowledge about the configuration and surgical technique of rotation and advancement flaps. I gave further guidance regarding reading materials – flap books and specific articles. This fine-tuning has helped in preparing the learner for active experimentation in a new cycle. Active Experimentation: After two weeks, the learner developed further reading related to the new concepts following the above discussion and attended my skin cancer clinics. We selected two cases needing operation to remove the lesion and reconstruction using local flaps. We applied his knowledge and prior experience to formulate the new treatment plan to carry out very soon. This has prepared him for the new encounter of active experimentation stage described by Kolb. Some Practical Difficulties and Potential Improvements I have come across problems and difficulties during the flap teaching sessions and I have enumerated them with the possible solutions, which I hope will improve my future teaching and make it more beneficial to the trainee and safer to the patients. Reflection of the learners with that of teachers’ observation is an important part of this learning cycle. Problem: The operative technique teaching of the flap to cover a tissue defect is mostly done under local anaesthesia with the patient awake. It is not always easy to talk all the aspects explicitly during the procedure. How to overcome it: One of the options would be to plan the first cycle of operative learning in patient who wanted the procedure under general anaesthesia. Problem: In some instances we have missed out this session of reflection due to lack of time, busy operating list and the learner had to attend ward patients or dressing clinic patients. How to overcome it: I need to plan this teaching session when the learner has a protected time to attend my appropriate theatre session. In cases of unforeseen circumstances causing this, I instruct the learner to write down his thoughts of reflection of the session and send it by email which will enable me give my impressions to him personally at a mutually agreeable time to move forward with an agreed plan for future experiences. The other option is to hand over the further continuity of learning to another colleague. Problem: Quite often Core Trainees in Plastic Surgery do not attend the Dressing Clinic to see the post-operative results when the patient returns for the suture removal and they also miss the opportunity when the patient returns to out patient clinic subsequently for pathology results. Reviewing the patients on these two occasions is equally important to complete the learning process. How to overcome it: I have started including in the post-operative instruction to call that particular Trainee doctor (for specific cases) when the patient returns for suture removal. Another option is to book the patient into my dressing clinic session and encourage the learner to attend. I also inform the trainee that the assessment form will be completed after he has seen the patients’ post-operative result. This is an incentive for them to attend the clinic. Problem: Kolb cycle may be difficult to apply to all trainees and there are some cultural differences the way the trainees are trained, for example trainees from Indian subcontinent or from Europe. How to overcome it: I will use spiral method of learning proposed by Dewey in this type of surgical technique teaching so that the learner follows it through the spirals to modify and improve the quality of outcome performance. I would also incorporate four-stage process of teaching in theatre (Walker Peyton, 1998) as part of the Kolb cycle depending on the pre-existing experience of the learner. Stage I involves my demonstration of the normal procedure at normal speed. In stage II, I will carry out the procedure again with full explanation and trainee is encouraged to ask questions. I perform the procedure for a third time during the III stage with trainee describing the steps, being questioned on key issues and providing any necessary correction. This stage continues until I am satisfied that the trainee fully understands the procedure. Now we move on to the final stage when the trainee carries out the procedure under close supervision, describing each step before it is undertaken . Thus this drilling of four-stage surgical skill development is followed by repetition to increase the confidence and further practicing of the skills to master it to apply in different situations. I will employ flexibility as to where to start the training depending on the individual trainees’ abilities and their prior knowledge and experience. Here is a framework I plan to use for the future flap teaching sessions:       References    Mann K V. (2002) Thinking about learning: Implications for Principle-Based Professional Education, The Journal of Continuing Education in the Health Professions, 22: 69-76 Knowles M S, Holton E F, Swanson R A. (2005) What is Learning, The Adult Learner, Elsevier, Burlington, MA Kolb D A. (1984) Experiential Learning, Experience as the source of Learning and Development, Prentice Hall, Englewood Cliffs, New Jersey Kolb D A. (1976) The Learning Style Inventory: Technical Manual, Boston, Ma.: McBer. Kolb D A. (1981) Learning styles and disciplinary differences. in A. W. Chickering (ed.) The Modern American College, San Francisco: Jossey-Bass. Kolb D A, Fry R. (1975) Toward an applied theory of experiential learning;, in C. Cooper (ed.) Theories of Group Process, London: John Wiley. Walker M, Peyton R. (1998) Teaching in the Theatre, Teaching and learning in medical practice, Manticore Europe, Pages 171-180