VIOD Conference on Enhancing Corporate Governance for Listed Companies in Vietnam
On July 3, 2024, in Hanoi, the Vietnam Institute of Directors (VIOD) held a conference on strengthening corporate governance capabilities for listed companies in Vietnam. The conference aimed to discuss and implement measures to enhance the quality of transparent corporate governance, linked to ESG (Environmental, Social, and Governance) criteria for listed companies.
In her opening remarks, Vu Thi Chan Phuong, Chairwoman of the State Securities Commission of Vietnam, shared that as the stock market develops and listed companies grow and expand their business operations, with many attracting foreign investment, corporate governance becomes a critical issue.
Effective corporate governance will drive operational efficiency and improve business performance, enhance access to capital markets, reduce capital costs and increase asset values, while also boosting the companies’ reputation.
The Chairwoman of the State Securities Commission also emphasized that in the future, the stock market will continue to develop towards integration and alignment with international standards and practices. This includes the goal of upgrading Vietnam’s stock market from a frontier market to an emerging market.
Therefore, improving corporate governance is more crucial than ever. Companies will need to adopt best practices in corporate governance to meet the requirements for the market upgrade, enhance management effectiveness, and protect shareholders’ rights.
Additionally, environmental, social, and governance (ESG) considerations will become more important as the stock market advances. Companies need to focus on these aspects to meet international standards and the expectations of global investors.
At the conference, Ha Thi Thu Thanh, Chairwoman of VIOD, presented the current state of corporate governance in Vietnam and the VNCG50 initiative. Corporate governance is one of the most critical factors, alongside social responsibility, in building investor and market trust. Vietnam’s strategy for stock market development until 2030, approved by the Prime Minister, sets the goal of enhancing corporate governance quality above the Southeast Asian average.
Simultaneously, the Chairwoman of VIOD argued that Vietnam needs a set of corporate governance criteria to help domestic enterprises systematically approach regional corporate governance standards. In this context, the VNCG50 initiative was born, comprising a group of Vietnamese companies with exemplary corporate governance practices that meet the highest standards. This initiative aims to improve Vietnam’s ranking in the ASEAN Corporate Governance Scorecard.
The conference also witnessed the launch of the Chair Club, a club of chairpersons of boards of directors committed to driving change in corporate governance linked to ESG. The club will serve as a platform to update and implement best practices, promote and foster values such as commitment, connectivity, sharing, improvement, and aspiration.
Speaking at the launch, Truong Gia Binh, Chairman of the Board of Directors of FPT Corporation and Chairman of the Club’s Executive Board, stated that the Chair Club is a place where chairpersons can share experiences, learn from and support each other, and collectively overcome challenges in corporate governance. This will contribute positively to the development of businesses and the country, especially in building a strong, innovative, and sustainable business community.
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