Foreign funds want to invest large amounts of capital in 'good and obedient' Vietnamese enterprises

Many Vietnamese businesses only focus on financial development and profit collection, while ignoring ESG (environment - society - governance). To attract capital, especially to please foreign investors, besides being 'good' at making money, businesses also need to be 'good'.

Many domestic and foreign experts participated in the forum on Investing in corporate governance - Photo: BONG MAI

The forum "Investing in corporate governance: Strategy to attract responsible investors in the trend of market internationalization" was recently organized by the Vietnam Institute of Directors (VIOD) today, December 5.

Foreign funds transfer capital to Vietnamese enterprises that know how to improve corporate governance

"Currently, investors, especially international investment funds, are focusing on shifting sustainable investments to businesses that implement corporate governance associated with measuring the level of sustainable impact on the environment and society (ESG).

That is also the foundation to enhance transparency and accountability of enterprises when implementing sustainable development strategies," Mr. Hoang Van Thu - Vice Chairman of the State Securities Commission - shared at the forum.

Sharing more, Mr. Nguyen Van Dung - Vice Chairman of Ho Chi Minh City People's Committee - said that 2024 is the year the city overcomes difficulties and challenges, strives to restore the socio-economy. The GRDP growth rate is estimated at about 7.17%, total budget revenue reaches more than 502,000 billion VND (+ 12% compared to the previous year, contributing 27% to the national structure).

Good news, the Politburo recently agreed to establish a regional and international financial center in the city. The effort to improve the investment environment, further contributing to the in-depth and sustainable development of the country in general, also promotes the city to develop steadily on the path to becoming an international financial center.

The Vietnamese stock market is facing a great opportunity to attract foreign investment. Deploying new products and services, applying the world's best practices, will help maximize the role of capital mobilization channels in the economy.

Chief Economist of VinaCapital Fund - Mr. Michael Kokalari commented that in the context of geopolitical tensions and global economic instability, international investors increasingly prioritize choosing markets with a solid legal foundation, transparent and stable business environment.

Enterprises with high scores in corporate governance practices, according to the QTCT-VNCG50 card set - Photo: VIOD

Want to receive investment money, must be "good and obedient"

Representative of a large enterprise in the securities industry, Mr. Trinh Hoai Giang - General Director of HSC - said that during the capital calling process, listed enterprises are often asked less about their financial situation by foreign investors, but instead delve into non-financial matters.

They learn about how the company manages risk, planning, conflicts of interest… Have a comprehensive view of the environment and social responsibility, or just stick to personal interests.

Successful deals with high prices often fall into companies with good management capabilities, including listed banks, schools, and private hospitals in Vietnam...

"To attract large investment capital, businesses must be "good and obedient", meaning they must grow and develop sustainably and meet ESG (environmental, social and governance) standards," said Mr. Trinh Hoai Giang.

However, Mr. Le Ngoc Lam - member of the Board of Directors and General Director of BIDV - frankly stated that many Vietnamese enterprises are currently facing challenges in the process of green and sustainable governance. Due to increasingly strict green regulations, lack of resources to support green transformation, low awareness and capacity on ESG...

According to Ms. Nguyen Thuy Hanh - General Director of Standard Chartered Bank Vietnam, Standard Chartered Group has had 160 years of development globally.

In Vietnam, Ms. Hanh said that there is no unified legal framework on ESG classification for businesses to follow. Although reporting to the State Bank, many parties follow different standards. It needs to be clearer, and the existing EU framework can be applied.

Similarly, Ms. Nguyen Thi Tra My - Vice President and General Director of PAN Group - said that the group currently has more than 11,000 employees and more than 10 subsidiaries. She affirmed that good corporate governance is a vital solution. Not only risk management, but also innovation is required. Typically, efforts to find rice varieties that can withstand salinity, flooding, and heat...

Mr. Vu Quang Thinh - General Director of Dynam Capital Fund - said that if in the past investors were only interested in the finances and profits of enterprises, now they are very interested in ESG. In which, "G" represents transparency and responsibility.

"The biggest fear of investors is losing money," said Mr. Thinh. Therefore, it is necessary to build trust and improve corporate governance capacity.

Source: https://tuoitre.vn/quy-ngoai-muon-rot-von-lon-vao-doanh-nghiep-viet-gioi-va-ngoan-20241205170844537.htm