“FPT Revenue Tied to Vietnam’s Stock Market Reputation, Says Chairman Truong Gia Binh”

On July 3rd, the State Securities Commission of Vietnam, in collaboration with the Vietnam Board of Directors Institute (VIOD), organized a conference on “Enhancing Corporate Governance for Listed Companies.” This event was particularly timely as Vietnam’s stock market is on the cusp of being upgraded from frontier market to emerging market status.

The discussion focused on the importance of effective corporate governance in this new context. Leaders from the State Securities Commission and VIOD shared their insights, and a panel discussion titled “The Role of the Board of Directors in ESG Strategy and Corporate Governance” featured chairpersons of listed companies sharing their practical experiences in enhancing information transparency and corporate governance.

When asked about the benefits of a market upgrade for listed companies, Mr. Truong Gia Binh, Chairman of FPT, shared his insights from working with foreign partners. He noted that while many associate a market upgrade with increased capital inflows, there’s more to it. In FPT’s interactions with large corporations, he found that they were keenly interested in the company’s credentials. Questions arose about whether FPT was a private or listed entity, and if listed, on which exchange. The reputation of the Vietnamese market directly impacted how these partners viewed FPT.

“In summary, reputation directly affects FPT’s revenue, not just capital inflows,” emphasized Mr. Binh, highlighting the broader implications of effective corporate governance.

Echoing this sentiment, Ha Thu Thanh, Chairperson of VIOD, agreed that an upgraded market status would open doors to foreign capital. However, she cautioned that not all businesses would benefit equally. This influx of capital, she explained, would favor companies with transparent and effective governance practices that have been duly assessed.

“Corporate governance must continually improve to enhance competitiveness and access to capital. For companies with foreign investment, failing to enhance governance practices could make retaining foreign investors a challenging task,” Ms. Thanh warned.

As a technology company, FPT, led by Mr. Binh, has embraced a model of corporate governance that leverages information technology and artificial intelligence to boost labor productivity. The company is currently pursuing a three-pronged transformation strategy focusing on digitalization, sustainability, and intelligence.

“I require all FPT employees to apply artificial intelligence to enhance labor productivity. Governance requires the use of technology; it’s indispensable for a listed company under the scrutiny of investors who demand excellence,” Mr. Binh shared, underscoring the critical role of technology in modern corporate governance.