Building a solid corporate governance framework to create long-term value

Frasers Property Vietnam contributes capital with GELEX to establish a joint venture to implement high-end industrial center projects in the North.

Investors need trust, the market needs standards

In the context of an increasingly volatile global economy, Vietnamese enterprises cannot stay out of the trend of governance according to international standards. Transparency, accountability and compliance with standards are the core principles of modern governance. Effective corporate governance helps promote better financial and operational results, thereby increasing profits for shareholders.

Large corporations in the world today are improving their governance models with strict standards, digital transformation, financial transparency or risk management... to enhance their position and ensure sustainable development in the long term. Enterprises that adapt quickly to modern governance models will have the opportunity to expand their markets and enhance their brand value.

Currently, investment funds and foreign investors are prioritizing capital investment in transparent enterprises that comply with good governance. This trend encourages enterprises to improve governance standards to attract sustainable capital flows. Corporate governance is considered a very important channel to bring capital into the market and into enterprises.

GELEX focuses on corporate governance

In recent times, GELEX has proactively implemented solutions to comply with legal regulations on corporate governance and ethical standards in governance. The company has also continuously improved governance activities with key focuses such as data governance, information security, risk management and transparency in information disclosure.

Currently, GELEX is applying technology to management, orienting digital transformation to support business activities, strategic decisions and optimizing efficiency. GELEX Group identifies digital transformation as a core strategy to improve management efficiency and sustainable development. The Group focuses on building a smart financial system based on SAP ERP, integrating big data analysis tools (Big Data) and process automation (RPA) to optimize cash flow, forecast risks and enhance transparency. In the field of operations, GELEX applies IoT and cloud computing for remote monitoring and control, and integrates artificial intelligence (AI) to predict risks and optimize the supply chain. The SAC BI smart reporting system helps analyze data and support timely decision making.

Digitalizing the system not only helps GELEX manage data more accurately but also supports quick decision making, creating a sustainable competitive advantage in the digital economy era.

GELEX Group Launches Project to Build Digital Transformation Strategy and Roadmap in January 2025.

In 2024, with the participation of EY - one of the top 4 consulting firms in the world, GELEX Group will build an Enterprise Risk Management Framework according to international standards ISO 31000:2018, international practices COSO ERM Framework 2017, other good practices and in line with GELEX's operational practices.

The goal of risk management activities at GELEX is to create, promote and protect values ​​associated with the goals, strategies, action plans, and business production of the GELEX System based on the coordination of all units and employees. Specifically: Integrating risk management activities with management activities, playing an important role by providing useful information for decision making; promptly identifying, analyzing, and evaluating key risks, thereby prioritizing response and monitoring risks, helping to anticipate opportunities and limit the negative impacts of risks when they occur.

The Group builds a strict internal control system, applies technology to analyze and forecast risks, helping to promptly identify and handle challenges in business operations.

Up to now, GELEX has deployed the Enterprise Risk Management Framework Project at GELEX Group and its member unit CADIVI.

In addition, GELEX is always committed to transparency in information disclosure and compliance with international reporting standards. The Group publicly discloses complete and timely financial data in both Vietnamese and English, helping to increase the confidence of shareholders and investors.

In management activities, GELEX also focuses on effective and sustainable financial management by maintaining the business model, investing, creating stable profits and sustainable growth, while effectively managing costs, limiting dependence on short-term factors such as interest rates or market changes, especially balancing between financial profits and social/environmental impacts to maximize long-term value.

GELEX maintains a healthy financial structure, in which long-term assets are always financed by long-term capital sources, while maintaining a liquidity buffer to deal with external risks such as market fluctuations, natural disasters, epidemics, and changes in legal regulations. Not only focusing on short-term profits, but also paying attention to long-term development through building reserve funds, managing financial risks and investing in projects with long-term value.

After 35 years of development, in addition to seizing market opportunities and investing in human resources and talents, building a solid corporate governance foundation is the launching pad for this enterprise to be ready for a bigger playing field.

Minh Ngoc