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 economy’s “green era.”
60% OF LISTED COMPANIES MEET IR STANDARDS
Speaking at the workshop, Mr. Nguyen Thanh Long, CEO of HD Capital Joint Stock Company, 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; there remains a clear divide between large and small enterprises,” 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 Joint Stock Company.
Explaining this gap, the CEO of HD Capital attributed it to resource constraints affecting IR practices 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 demonstrate 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 stated: “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 businesses to reach a wider range of investors at a lower cost.
“KEY” TO PROMOTING SUSTAINABLE DEVELOPMENT
Sharing insights on attracting foreign capital by disclosing ESG (Environmental, Social, and Governance) information, Ms. Bui Thi Thao Ly, Director of the Analysis Center at Shinhan Securities Vietnam JSC (SSV), revealed that SSV has recently received numerous inquiries about ESG practices, especially from international institutional investors facing challenges in evaluating and screening ESG factors to meet the growing demands of this trend.
“In Asia, the demand for investment and ESG funds has increased significantly in recent years, with total assets reaching a scale of $58 trillion, more than tenfold compared to 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 attributed this lag to the challenges Vietnamese listed companies face in disclosing ESG data. Currently, only 3% of listed companies on 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 emissions data and emission reduction targets,” Ms. Ly recommended.
Concurrently, proactively disclosing ESG information enables listed companies to access global ESG funds, estimated at $30 trillion by 2025 and projected to reach $40 trillion by 2050.
Meanwhile, Mr. Nguyen Thanh Long expressed his optimism 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 a concern 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 $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 Vinamilk’s IR model is built on four main pillars: transparency, accessibility, engagement, and crisis management.
Currently, Vinamilk’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 United Kingdom, the United States, and Hong Kong, China.
Another enterprise prioritizing green criteria is PAN Group. According to Mr. Nguyen Hong Hiep, Director of External Relations of PAN Group, their journey towards “greening” began when the company shifted its focus to agriculture and food in 2012.
Mr. Hiep noted that while Vietnam ranks high in exporting agricultural products, it lags in terms of position within the value chain, quality, and added value, especially for branded products.
“ESG management systems are always highlighted in forums and have received particular attention since the government’s commitment to Net Zero by 2050. This has led to policy changes, requiring enterprises to adapt,” Mr. Hiep emphasized.
Meanwhile, in the category of Most Appreciated by Financial Institutions, the recognized enterprises and their stock codes were: ACB, MBB, SSI, FPT, MWG, VNM, CTR, GEG, PAN, EVE, IVS, and NAF.
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.
“Unveiling the Master Plan: Saigon Co.op’s Strategic Approach to Sourcing Excellence”
On September 24, 2024, the Saigon Union of Trade Cooperatives (Saigon Co.op) hosted an event titled “The Announcement of Saigon Co.op’s Raw Material Sourcing Plan.”
“Vietnam and the EU to Discuss Pathways to a Green Future at GEFE 2024”
At GEFE 2024, pivotal discussions will revolve around pivotal topics that propel us towards a sustainable future: climate resilience, digital transformation for green finance, and sustainable energy transition. These are the key drivers for Vietnam to achieve its Net Zero target by 2050.
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.
