First VN Corporate Governance Code of Best Practices for Public Companies makes debut
11:11 | 15/08/2019

VGP - The first Viet Nam Corporate Governance Code of Best Practices for Public Companies was launched by the State Securities Commission of Viet Nam (SSC) to promote the wealth of the capital market and the sustainable development of the economy. 

It was developed with technical support from the International Finance Corporation (IFC), a member of the World Bank Group, and in partnership with the Swiss State Secretariat for Economic Affairs (SECO).

The code lays out a series of recommendations on best corporate governance practices, primarily for Vietnamese public companies. It includes standards that go beyond the minimum legal and regulatory requirements, encouraging companies to move towards international best practices. This will also help Vietnam align with its ASEAN peers, which have long instituted similar codes.

The code is the joint efforts of all sides to assist public and listed enterprises to apply international corporate governance standards with the aim of improving the quality of listed enterprises, said Chairman of the SSC Tran Van Dung, stressing the highest goal of building trusts of investors and accelerating Viet Nam’s capital market, making contributions to the nation’s economic sustainable development.   

The code consists of ten principles with detailed recommendations for best practices and is aimed at addressing priority issues in corporate governance performance by Vietnamese companies. Six principles are focused on the functioning of the board of directors, which is an area that requires further improvement in many Vietnamese firms.

The remaining four principles cover areas such as control environment, transparency and disclosure, shareholder rights, and stakeholder relations. The code also includes provisions relating to responsible business, such as promoting gender diversity and encouraging a stronger focus on environmental and social issues.

This Corporate Governance Code of Best Practices can help Vietnamese companies send a signal to investors to come and do business in Viet Nam, said IFC CEO Philippe Le Houérou. 

By Thuy Dung 

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