Businesses need to position their trust and reputation on the 'race track' to attract capital

Faced with the opportunity to enter the Emerging Market, improving governance standards, building trust and reputation are urgent requirements for businesses if they want to access billions of dollars in capital flows.

On December 5, in Ho Chi Minh City, the Vietnam Institute of Directors (VIOD) organized the 8th Annual Forum (AF8) with the theme: "Breakthrough Board of Directors: Reaching Regional Reach, Positioning Trust and Reputation in the Capital Market".

This is a major professional event in Vietnam on Corporate Governance (CG) associated with Sustainable Development and ESG organized by VIOD with the support of the International Finance Corporation (IFC), the Swiss State Secretariat for Economic Affairs (SECO) and the State Securities Commission (SSC), with the support of the Vietnam Stock Exchange (VNX), Ho Chi Minh City Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX).

Raising governance standards - an urgent requirement

In her opening speech, Ms. Vu Thi Chan Phuong - Chairwoman of SSC said that 2025 is a very special year, marking 25 years of formation and development of the Vietnamese stock market - a journey not long compared to many markets in the region, but rich in imprints and efforts. This year, the two major highlights are Resolution 68-NQ/TW on private economic development and FTSE Russell's announcement recognizing Vietnam as qualified to enter the "race" to upgrade from Frontier Market to Emerging Market, with the official timeline on September 21, 2026.

Ms. Vu Thi Chan Phuong - Chairwoman of the State Securities Commission (SSC) delivered the opening speech.

" This is the result of the persistent and continuous reform process of the management agency, the Stock Exchanges, intermediary institutions and the listed business community. Along with that, the reform orientation, technological advances, and efforts to improve corporate governance standards over the past time are also factors contributing to the strong changes in the stock market today ," Ms. Vu Thi Chan Phuong assessed.

However, Ms. Phuong noted that upgrading is not the destination, but only the beginning of a higher stage of development, with strong requirements for transparency, efficiency and investor protection. In that context, corporate governance is a key factor.

According to her, international experience has proven that markets with good governance standards are always the priority destination for long-term capital flows, especially pension funds and large financial institutions. In Vietnam, the results of the ASEAN Corporate Governance Scorecard (ACGS) show that our country has made important progress, but there is still a significant gap compared to the leading group.

This gap creates an urgent need for Vietnamese enterprises to continue to improve their governance standards to meet the increasingly high expectations of the market and international investors. Therefore, the Board of Directors is the center of all governance activities.

The SSC Chairman emphasized that a professional, experienced, visionary and independent board will decide the long-term direction of the enterprise. Therefore, Ms. Phuong highly appreciated ACGS's initiative to launch the Regional Reach, where pioneering enterprises commit to raising governance standards according to ASEAN practices.

" This is a positive message that helps affirm the position of Vietnamese enterprises in the eyes of the international investment community ," said the Chairman of SSC.

Reputation and Trust: the foundation of 'soft competition'

From another perspective, Ms. Ha Thu Thanh - Chairman of VIOD said that, in the context that the Vietnamese stock market is facing the opportunity to be upgraded to Emerging Market, this new status comes with higher requirements, especially on corporate governance associated with ESG and sustainable development, according to OECD practices and good practices of international organizations.

Ms. Ha Thu Thanh, President of Vietnam Institute of Directors (VIOD).

According to her, "Reputation and Trust" are the foundation for creating "soft competition" strength, becoming the core advantage of the enterprise. Each manager is a pioneer in positioning and leading these values ​​together with shareholders and investors.

Ms. Thanh hopes that the AF8 Forum will be an open space, helping management agencies, investors, international organizations and the listed business community to exchange more and more openly about the requirements placed on the Board of Directors; at the same time, share experiences, practices and spread good corporate governance models.

From there, the forum will support listed companies to move from a purely compliance mindset to proactive compliance, ensuring efficiency, transparency and sustainable risk management in the new development phase. Approaching ASEAN standards (ACGS) will also help businesses gradually move towards the ASEAN Asset Class in the region and in wider trading markets.

Sharing the same view, Ms. Nguyen Hong Giang - Senior Program Manager, Swiss State Secretariat for Economic Affairs (SECO) commented that the Vietnamese stock market is facing a major turning point, requiring businesses not only to manage effectively but also to demonstrate a deep commitment to "Trust and Reputation" in order to be able to develop prosperously when competitive pressure is increasingly fierce.

Ms. Nguyen Hong Giang, representative of SECO, affirmed her commitment to continue supporting Vietnam's private sector, especially SMEs, with a focus on strengthening the foundation for market development through enhancing corporate governance capacity, improving the legal framework and developing market infrastructure.

SECO representative said that Vietnam is a priority country in Switzerland's cooperation activities. SECO is proud to accompany and support the realization of Vietnam's ambitious vision, and is committed to contributing to building a competitive and sustainable business ecosystem through improving corporate governance and enhancing social and environmental responsibility.

Ms Giang said that compliance with corporate governance standards will open up more capital for small and medium-sized enterprises (SMEs) and strengthen the sector’s productivity. As global markets become increasingly interconnected, effective corporate governance has never been more important for sustainable growth.

Investors today need to understand that strong financial performance comes not only from good products or services, but is also directly linked to solid governance practices that emphasize accountability, transparency and sustainability.

SECO affirms its commitment to continue supporting Vietnam's private sector, especially SMEs, with a focus on strengthening the foundation for market development through enhancing corporate governance capacity, improving the legal framework and developing market infrastructure.

" We are proud to see many leading Vietnamese companies, especially listed enterprises, increasingly complying with international governance standards. What impresses us is that regardless of the field they operate in, Vietnamese enterprises are constantly improving their ESG commitments, a typical example of how to 'elevate the economy' through governance and sustainable development ," Ms. Giang emphasized.

Source: https://congthuong.vn/doanh-nghiep-can-dinh-vi-niem-tin-va-danh-tieng-tren-duong-dua-hut-von-433439.html