VIOD Chairman: Petrovietnam pioneers in changing corporate governance awareness in Vietnam

| 11/30/2024 Views : 2

This is the assessment of Ms. Ha Thu Thanh, Chairwoman of the Board of Directors of the Vietnam Institute of Directors (VIOD) on the sidelines of the press meeting at the 7th Annual Forum on Corporate Governance.

Corporate governance culture in Petrovietnam was formed early, helping the Group maintain its leading position in the economy despite many market fluctuations.

The 7th Annual Forum on Corporate Governance “Investing in Corporate Governance: A Strategy to Attract Responsible Investors in the Trend of Market Internationalization” is set to take place on December 5, 2024 in Ho Chi Minh City. The Forum will also announce the VNCG50 Index initiative developed by the Vietnam Institute of Directors (VIOD) and supported by the State Securities Commission and the Vietnam Stock Exchange.

At the press conference, Ms. Ha Thu Thanh, Chairwoman of VIOD Board of Directors, said that the evaluation of the Corporate Governance Scorecard in the ASEAN region had 6 participating countries, then selected 100 enterprises with high investment value in the region, based on the quality of risk management, transparency, commitment to ensuring shareholder benefits and business efficiency, affirming the belief in the transparency and integrity of corporate governance.

Mentioning a company that has done well in forming a corporate governance culture, Ms. Ha Thu Thanh mentioned the experience of the Oil and Gas Drilling and Well Services Corporation (PV Drilling). According to Ms. Thanh, although exploration has declined, causing profits to decrease, this company is still ranked high in terms of corporate governance among Vietnamese enterprises because PV Drilling has done well in managing risk fluctuations and finding the best response plan. Thereby, the quality of PV Drilling's corporate governance is highly appreciated.

Speaking to PetroTimes on the sidelines of the press conference, Ms. Ha Thu Thanh said that the Vietnam Oil and Gas Group (Petrovietnam) - the parent company of PV Drilling is a group that changes perceptions and is a pioneer in corporate governance in Vietnam.

Petrovietnam’s leaders, especially Chairman of the Board of Directors Le Manh Hung, have built corporate governance into a program to send all Petrovietnam’s capital representatives in member companies to study governance culture. Up to now, VIOD has summarized 30 courses on corporate governance, Petrovietnam is the enterprise sending the most capital representatives to study.

“This demonstrates the commitment of Petrovietnam’s leadership to effectively, transparently and securely administer the company, not only to reduce capital loss, but also to use that capital in the most effective way, dividing roles between the capital representative and the Executive Board to ensure responsibility and efficiency,” Ms. Ha Thu Thanh emphasized.

Ms. Ha Thu Thanh, Chairwoman of VIOD Board of Directors: "Petrovietnam - the parent company of PV Drilling is a corporation that changes perceptions and pioneers in corporate governance in Vietnam" (Photo: PT)

Therefore, according to the Chairman of VIOD, PV Drilling's experience is thanks to the mindset of the top leader, which in this case is the Group's parent company. ESG governance is never enough, this is the core, but more comprehensive is the responsibility, commitment to quality corporate governance is the root, helping to change in member companies.

From the story of Petrovietnam, VIDO Chairman Ha Thu Thanh emphasized that to improve Vietnam's corporate governance scorecard ranking in the ASEAN bloc, the quality of corporate governance of Vietnamese enterprises needs to be further upgraded. Investing in corporate governance is considered a form of strategic investment to build trust for the present and the future, helping enterprises keep pace with the international community and gain deeper and broader participation from international investors.

At the press conference, Mr. Phan Le Thanh Long, General Director of VIOD, said that the VNCG50 scorecard initiative is an independent assessment, aiming to narrow the gap in corporate governance practices of listed enterprises in Vietnam. This initiative was born to realize the vision of the stock market in 2030, improving the quality of corporate governance of listed enterprises above the average level compared to the Southeast Asian region. The assessment is conducted once a year.

In fact, Vietnam has participated in 7 ASEAN Corporate Governance Scorecard (ACGS) assessments. Vietnam has continuously maintained a low ranking, so the initiative was born to improve its ranking to the average level by 2026. From the scorecard set, it will be upgraded to the VNCG50 Index. Enterprises in this top 50 list will have great strengths to attract investment.

Mr. Long said that the selection of the top 50 enterprises was based on the ASEAN scale. If there were more than this number, it would not be able to fully support the enterprises, and conversely, a smaller number would not be able to pull up the average score of Vietnam's corporate governance ranking in the Southeast Asia region, so the technical department chose the number of 50 enterprises. The challenge for creating this scorecard initiative is huge because after being upgraded to an Index, it will be a product of the Stock Exchange.

“Pioneering and commitment are the two most important factors of the enterprises participating in the VNCG50 scorecard, thereby bringing them the greatest benefits of attracting investment and credibility. We will publicly announce the scorecard of this list to increase the transparency of the scorecard, helping enterprises clearly see what they need to improve. We really need pioneering enterprises to pull up Vietnam's ranking in the ASEAN bloc,” the VIOD General Director called.

Phuong Thao

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Source: https://www.pvn.vn/chuyen-muc/tap-doan/tin/2ba03f46-bf70-461b-848f-160a1f4bf10e