DNVN - The Vietnam Institute of Directors (VIOD) believes that Vietnam's corporate governance level is currently at a low level in the ASEAN region, lower than the average level in the Southeast Asia Corporate Governance Scorecard (ACGS) assessment.
The 7th Annual Forum on Corporate Governance (CG) with the theme "Investing in CG: A Strategy to Attract Responsible Investors in the Trend of Market Internationalization", on the morning of November 29, provided the latest assessment of CG, helping businesses have closer and deeper action programs in governance. The event also contributed to providing solutions to promote the Vietnamese financial and securities market to become more transparent and attractive to domestic and foreign investors.
According to VIOD's assessment at the forum, 2024 marks an important turning point in improving the quality of corporate governance in Vietnam. As requirements for corporate governance increase, investing in effective governance associated with ESG (environment - society - corporate governance) is not only an option but has become an important need for businesses, especially listed businesses and public companies.
The 7th Annual Forum on Corporate Governance with the theme "Investing in Corporate Governance: A Strategy to Attract Responsible Investors in the Trend of Market Internationalization".
Investors, especially international investment funds, are focusing and shifting sustainable investments to businesses that implement corporate governance in conjunction with measuring the level of impact on the environment and society. Corporate governance is considered a very important channel to bring capital into the market and into businesses.
ESG-related CG has now become a measure of a company's competitiveness in creating trust with the market and suppliers, and a tool to measure the actions and commitments of a company to create an impact on the environment and society. It is also the foundation for enhancing transparency and accountability of a company when implementing a sustainable development strategy.
However, according to VIOD, Vietnam's current corporate governance level is at a low level in the ASEAN region; lower than the average level in the Southeast Asia Corporate Governance Scorecard (ACGS) assessment.
Therefore, the requirement to improve the quality and level of corporate governance in Vietnam must be truly considered as an important strategic goal and must be given top priority. This has also been clearly stated in the stock market development strategy until 2030 approved by the Prime Minister in Decision 1726/QD-TTg dated December 29, 2023.
Improving the quality and level of corporate governance not only attracts investment capital from international investment funds but also creates a foundation for sustainable development for the stock market itself, especially in the context of Vietnam's efforts to upgrade from a frontier market to an emerging market.
This context requires Vietnamese enterprises to find ways to improve the quality of corporate governance, meet international standards to attract green investment capital from responsible investors. At the same time, shorten the gap in corporate governance between Vietnam and Southeast Asia.
At the forum, VIOD announced the VNCG50 initiative for the first time. This is a scorecard built on the evaluation indicators of ACGS according to good practices. At the same time, it is based on the practice of corporate governance in Vietnam.
VNCG50 is evaluated by a council of members including experts from Ho Chi Minh City Stock Exchange (HOSE), Hanoi Stock Exchange (HNX), fund representatives, securities companies and independent experts.
Ha Anh
Source: https://doanhnghiepvn.vn/kinh-te/mat-bang-quan-tri-cong-ty-cua-viet-nam-dang-o-cap-do-thap/20241129110511196
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