At the “IR View: Greening the Supply Chain” workshop organized by Vietstock on September 24, experts and business representatives revealed secrets to attracting international capital, investor relations (IR) practices, and sustainable development strategies for the “green era” of the economy.
60% OF LISTED COMPANIES MEET IR STANDARDS
Speaking at the workshop, Mr. Nguyen Thanh Long, CEO of HD Capital, shared that over a decade ago, a report showed that less than 10% of listed companies met IR standards. However, by 2018-2019, this number had increased to 40%, and now (in 2024) it has reached 60%.
“These numbers reflect remarkable progress, and while the overall picture has improved, they also indicate that there is still room for enhancement and a clear divide between large and small businesses,” emphasized Mr. Long.
“IR activities are not just a bridge between businesses and investors. They are the ‘key’ to optimizing shareholder value and promoting the sustainable development of the enterprise. For effective IR activities, enterprises need transparency and accuracy of information; fairness in dealing with shareholders; and the ability to build long-term trust.” – Mr. Nguyen Thanh Long, CEO of HD Capital.
Explaining this gap, the CEO of HD Capital attributed it to resource constraints affecting how IR is implemented in Vietnamese businesses. “In smaller companies, IR tasks are often assigned to the accounting and finance department as an additional responsibility. While they may work very hard, they cannot match the professionalism of a team formally trained in IR,” Mr. Long explained.
Additionally, different industries have varying levels of 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 of HD Capital foresees ongoing challenges. Mr. Long pointed out: “Only 10% of listed companies provide bilingual reports. This is a significant barrier to attracting international investors.”
Nevertheless, Mr. Long believes that opportunities are emerging. Post-Covid-19, virtual meetings and webinars have become more common, enabling companies to reach a wider range of investors at a lower cost.
A “KEY” TO ENHANCE SUSTAINABLE DEVELOPMENT
Sharing insights on attracting foreign capital through ESG (Environmental, Social, and Governance) information disclosure, Ms. Bui Thi Thao Ly, Head of Analysis Center at Shinhan Securities Vietnam (SSV), said that recently, SSV has received numerous inquiries about ESG practices, especially from international institutional investors facing challenges in evaluating and screening ESG factors to meet the growing demands related to this trend.
“In Asia, the demand for investment and ESG funds has increased significantly in recent years, with total assets reaching a scale of USD 58 trillion, ten times more than a decade ago,” informed Ms. Ly.
However, it is unfortunate that Vietnam lags behind other countries in the region, with only one ESG investment fund, lower than neighboring countries like Malaysia and Thailand, which have witnessed a strong boom in recent years.
Ms. Ly believes that ESG data is a significant barrier for listed companies in Vietnam. Currently, only 3% of listed companies on the HOSE provide analysis and assessments of their ESG practices. While 44% of Vietnamese companies commit to and plan to implement ESG, they also attach great importance to governance rankings.
“Enterprises need to make sustainable analysis reports a mandatory criterion or develop specific strategies to disclose quantitative information such as emission data and emission reduction targets,” recommended Ms. Ly.
At the same time, proactively practicing ESG reporting enables listed companies to access global ESG funds, estimated at USD 30 trillion by 2025 and projected to reach USD 40 trillion by 2050.
Meanwhile, Mr. Nguyen Thanh Long expressed his hope that effective IR activities would promote the upgrading of the Vietnamese market and the ESG investment trend.
According to Mr. Long, market upgrading has long been an issue for the Vietnamese government and investors. Vietnam has recently made progress in this regard, such as the Ministry of Finance’s new circular related to prefunding for foreign investors.
“Currently, about USD 140 trillion is flowing into ESG investment funds globally. This amount is five times the GDP of the United States. This is a massive amount of capital that can change the landscape of an industry,” shared the CEO of HD Capital.
From the perspective of a company practicing ESG, Mr. Dong Quang Trung, Head of Investor Relations at Vinamilk, shared that the IR model at Vinamilk is built on four main pillars: transparency, accessibility, engagement, and crisis management.
Currently, the company’s shareholder list includes 500 foreign investors, 300 of whom are funds. Every year, Vinamilk allocates resources to participate in ten investment events to attract capital in key markets such as Singapore, the UK, the US, and Hong Kong, China.
Another enterprise that attaches great importance to green criteria is PAN Group. According to Mr. Nguyen Hong Hiep, Director of External Relations of PAN Group, the journey towards greening began when the company shifted its focus to agriculture and food in 2012.
According to Mr. Hiep, while Vietnam ranks quite high in exporting agricultural products, it lags in terms of its position in the value chain, quality, and added value, especially for branded products.
“ESG management systems of enterprises are always highlighted in forums and have received particular attention since the government’s commitment to Net Zero by 2050. This leads to policy changes, requiring enterprises to adapt,” emphasized Mr. Hiep.
Meanwhile, in the category of most appreciated by financial institutions, the recognized companies with stock codes were: ACB, MBB, SSI, FPT, MWG, VNM, CTR, GEG, PAN, EVE, IVS, and NAF.
The Most Investor-Beloved Listed Company: HDBank
On September 24, 2024, HDBank (stock code: HDB) was voted as the “Listed Company in the Large-cap Finance Sector with the Most Favorite Investor Relations Activities” according to the results announced at the IR Awards 2024 by Vietstock, the Vietnam Association of Financial Executives (VAFE), and Fili Magazine.
The Green Age of IR: A “Greening” Strategy and Capital Attraction for Vietnamese Enterprises
At the IR View seminar on ‘greening’, held as part of the IR Awards 2024 ceremony on the morning of September 24, leaders from VietinBank, PAN Group, Vinamilk, and ACB revealed their secrets to attracting international capital. They shared insights on effective Investor Relations (IR) practices and their strategies for sustainable development in the new era of a green economy.
The Ultimate IR Excellence Accolade: FPT’s Double Victory Streak Continues
On September 24, 2024, FPT was recognized as a Top 3 Enterprise in the Large-Cap Group in the non-financial sector with the most beloved IR activities by investors and as a Top 3 Enterprise in the Large-Cap Group in the non-financial sector with the most appreciated IR activities by financial institutions at the Awards Ceremony for Listed Companies with the Best IR Activities (IR Awards 2024). IR Awards is a prestigious award honoring listed companies that has been held annually for over a decade (2011 – 2024), jointly organized by Vietstock, the Vietnam Association of Financial Executives (VAFE), and the electronic Finance and Life Magazine (FiLi).
Unlocking the Billion-Dollar Investment: Nguyen Thanh Long of HDCapital on the Power of IR for Vietnam’s Economy
After a long stint in the stock market, Mr. Nguyen Thanh Long, CEO of HD Capital Fund Management Joint Stock Company, has witnessed an astonishing transformation in investor relations (IR).
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.
