“Over a decade ago, in 2011-2012, I vividly recall a Vietstock report indicating that less than 10% of listed companies met IR operational standards,” Mr. Long began his story at the discussion session. “By 2018-2019, this number had risen to 40%. And now, in 2024, we’ve reached the 60% mark.”
Mr. Nguyen Thanh Long, CEO of HD Capital Joint Stock Company, during the discussion session on the topic “Institutional Investors’ and Foreign Investors’ Preferences for Enterprises” at the IR Awards 2024, held on the morning of September 24th.
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Mr. Long mentioned the evident polarization in IR implementation between large and small businesses. “Resources have influenced how IR activities are carried out in Vietnamese enterprises,” he said.
“In small businesses, the IR department is often assigned to the accounting and finance department as an additional responsibility. They may work diligently, but they cannot match the professionalism of a well-trained IR team,” shared Mr. Long.
According to him, different industries also vary in their IR compliance. “Companies in the financial, banking, and insurance sectors tend to have better IR practices than some other sectors, such as real estate or construction.”
Looking ahead, the CEO believes there are still many challenges. He pointed out a notable weakness in today’s IR efforts: “Only 10% of listed companies provide bilingual reports. This is a significant barrier to attracting international investors.”
However, he also emphasized the emerging opportunities. “Post-COVID-19, organizing online meetings and webinars has become more common. This enables businesses to reach a wider range of investors at a lower cost,” Mr. Long explained.
When elaborating on the significance of effective IR activities, he outlined three key factors: transparency and accuracy of information, fairness in treating shareholders, and the ability to build long-term trust.
“We must not underestimate the importance of treating retail shareholders fairly,” Mr. Long stressed. “I have witnessed shareholder meetings where the management tended to favor large shareholders. This is an area for improvement because even a relatively minor negative comment on social media can significantly impact a company’s business operations.”
Opportunities from Market Upgrade and ESG Trends
Looking to the future, Mr. Long particularly hopes that effective IR practices will promote Vietnam’s market upgrade and attract ESG investment trends.
Upgrading the market has been a pressing issue for both the government and the investment community. Vietnam has recently made strides toward this goal, such as the Ministry of Finance’s new circular related to pre-funding operations for foreign investors.
Mr. Long informed that Vietnam has already met 7 out of 9 FTSE criteria and 10 out of 18 MSCI criteria for emerging market status. “When this happens, we can attract billions of dollars in foreign investment. Qatar and the UAE, after being upgraded, attracted $2 billion each, while Pakistan attracted $500 million.”
Regarding the ESG trend, Mr. Long presented an impressive figure: “Out of the approximately $140 trillion in assets under management (AUM) in the global investment fund industry, $35 trillion is flowing into ESG funds. This massive amount of capital can significantly alter the landscape of an industry.”
Mr. Long concluded, “IR activities not only serve as a bridge between businesses and investors but also hold the key to optimizing shareholder value and fostering enterprises’ sustainable development.”
Mrs. Bui Thi Thao Ly (SSV): ESG Disclosure Enhances Access to Foreign Capital
At the IR View seminar on ‘greening’, held as part of the IR Awards 2024 ceremony on the morning of September 24, Ms. Bui Thi Thao Ly, Director of the Analysis Center of Shinhan Securities Vietnam Co., Ltd. (SSV), represented the seller and shared her insights on attracting foreign capital through ESG disclosure.
Celebrating the Best IR Performing Listed Company of 2024
On the morning of September 24, the IR Awards 2024 Ceremony was held to announce the results of the IR Voting and honor listed companies with outstanding IR activities.
Unlocking the Billion-Dollar Investment: Nguyen Thanh Long of HDCapital on the Power of IR for Vietnam’s Economy
After years of navigating the stock market, Mr. Nguyen Thanh Long, CEO of HD Capital Fund Management JSC, has witnessed a remarkable transformation in investor relations (IR).
Mrs. Bui Thi Thao Ly (SSV): ESG Disclosure Enhances Access to Foreign Capital
At the IR View workshop on ‘greening’, held as part of the IR Awards 2024 ceremony on the morning of September 24, Ms. Bui Thi Thao Ly, Director of the Analysis Center of Shinhan Securities Vietnam Co., Ltd. (SSV), represented the seller and shared her insights on attracting foreign capital through ESG disclosure.
