The urgency of corporate governance when upgrading the stock market

Good corporate governance will boost business performance. Graphic: Duc Manh

In the Stock Market Development Strategy to 2030, improving the quality of transparent corporate governance, aligned with ESG (Environmental, Social, and Governance) criteria for listed companies, is considered a crucial starting point.

Speaking at the Conference on Improving Corporate Governance Quality for Listed Enterprises in Vietnam held today (July 3), the Chairwoman of the State Securities Commission, Vu Thi Chan Phuong, stated that good corporate governance will boost business efficiency, improve access to capital markets, reduce capital costs, and enhance the image of enterprises in the Vietnamese and international markets.

"When the Vietnamese stock market is upgraded from a frontier market to an emerging market, corporate governance becomes more crucial than ever. Because with a successful upgrade, foreign investors will look at the quality of the shares to see how good, transparent, and profitable they are... Enhancing financial reporting transparency to meet the upgrade criteria requires businesses to comply with stricter financial reporting and corporate governance standards. Businesses need to focus on ESG issues to meet international standards and the discipline of global investors," Ms. Phuong stated.

Ms. Ha Thu Thanh, Chairwoman of the Board of Directors of the Vietnam Institute of Directors (VIOD), believes that corporate governance is one of the important factors, alongside social responsibility, in building investor and market confidence. The role of the company chairman will support the stock market when it is upgraded. Corporate governance is also considered one of the seven aspects of competitiveness, in addition to capital attraction. Therefore, this activity needs to stem from internal needs for mutual development.

The conference on improving corporate governance for listed companies in Vietnam was organized by the State Securities Commission in collaboration with the Vietnam Institute of Directors (VIOD). Photo: Duc Manh

As a major listed company, Mr. Truong Gia Binh - Chairman of the Board of Directorsof FPT Group - affirmed the role of the business chairman as a leader and pioneer in complying with the highest requirements of governance, which is currently moving towards ESG-based governance. The goal is to make employees find their work more enjoyable each day, thereby contributing to increased productivity.

"For FPT, effective management requires the use of information technology. As a listed company, under the scrutiny of investors and with high demands, technology is indispensable," Mr. Binh shared.

According to Ms. Nguyen Thi Mai Thanh, Chairwoman of the Board of Directors of the Refrigeration and Electrical Engineering Company, the Board of Directors also plays a supervisory role, selecting people who fit the company culture and training them for development.

Source: https://laodong.vn/kinh-doanh/tinh-cap-thiet-cua-quan-tri-cong-ty-khi-nang-hang-thi-truong-chung-khoan-1361177.ldo