Deloitte, IFC, Hanoi and HCMC Stock Exchanges help listed companies improve corporate governance and boost long-term investment
“Law on Enterprises 2014 - Corporate Governance Implications and Applicability for Vietnamese Companies” conference
Deloitte Vietnam, IFC, a member of the World Bank Group, in partnership with the Hanoi and Hochiminh Stock Exchanges are helping Vietnamese listed companies adopt international best practices in corporate governance to boost their appeal to foreign investors and spur growth.
More than 300 participants are expected to attend a half-day conference in Hanoi on 9 June and another one in Ho Chi Minh City today. Experts from the Stock Exchanges as well as the Central Institute for Economic Management (CIEM), Deloitte Vietnam, Dragon Capital Group, and IFC will update businesses on new requirements in Vietnam’s 2014 Law on Enterprises, as well as international best practices in corporate governance and their relevance for Vietnamese companies.
“The new law includes significant revisions to help public and listed companies adopt international best corporate governance practices, as part of the government’s drive to ensure better corporate governance,” said Nguyen Thanh Long, Chairman of the Hanoi Stock Exchange. “Companies will benefit tremendously from attending this conference, which will help them take their corporate governance to a new level.”
Under the new law, which came into force in July 2015, public and listed companies are also allowed to set up an audit committee under the Board of Directors, without having a supervisory board, subject to requirements. This is the first time the definition and role of an independent director in the company’s Board of Directors has been introduced in the Law on Enterprise.
“Businesses need to be aware of the vital role of corporate governance and a board’s audit committee in overseeing the effectiveness and integrity of internal controls,” said Ha Thu Thanh, Chairwoman of Deloitte Vietnam. “Together with our counterparts, we understand our part in helping companies and the market improve transparency, increase efficiency and enhance resiliency, and we are determined to fully support companies in successfully applying good corporate governance.”
Mr. Le Hai Tra, Deputy CEO of Hochiminh Stock Exchange indicated that “Corporate Governance (CG) is considered to have significant implications for the growth prospects of an organization as well as the entire economy. Good CG practices are verifying their importance in reducing risk for investors, attracting investment and improving the performance of companies. Hochiminh Stock Exchange always put strong effort in encouraging good CG practices by a sequence of activities as training, workshop and awards to accomplish the target of enhancing CG among listed companies and approaching to international standards.”
“As competition grows among countries in the region, improving corporate governance in line with internationally accepted practices will help Vietnamese companies become more sustainable and attractive to investors,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia, and Lao People’s Democratic Republic. “Enhanced corporate governance will also strengthen the development of Vietnam’s capital markets and benefit the overall economy.”