FPT honored in the Top 10 large-cap enterprises with the best corporate governance in 2023

Within the framework of the Listed Companies Conference and the VLCA (Vietnam Listed Companies Award Ceremony) 2023, organized by the Ho Chi Minh City Stock Exchange (HoSE),FPT was honored in the Top 10 Large-Cap Companies with the Best Corporate Governance in 2023.

FPT representatives receive the award.

Based on the criteria for evaluating compliance with current legal regulations on corporate governance and the application of good corporate governance practices, the Organizing Committee selected 104 enterprises with the best corporate governance practices for the final round. The enterprises were categorized into three capitalization groups: 34 large-cap, 34 medium-cap, and 36 small-cap. 25 enterprises from the three capitalization groups with excellent corporate governance practices were honored by the Organizing Committee, thus affirming their well-deserved efforts in effective governance.

In particular, in 2023, the Corporate Governance category saw significant changes in its evaluation criteria. Given the serious and complex impact of climate change, the Organization for Economic Cooperation and Development (OECD) updated its corporate governance rules, emphasizing the integration of ESG (environmental, social, and governance) principles.

Accordingly, the VLCA Organizing Committee has upgraded the 2023 Corporate Governance Assessment Criteria to a higher level, adding 18 questions, including one question on organizing shareholder meetings, two questions on nominating board members to enhance diversification, and 15 questions on sustainable and persistent development.

FPT is also the only technology stock included in the 20-component VNSI index (Sustainable Development Index) assessed by HoSE, with a total ESG (Environment - Social - Governance) score of 76%. Specifically, in the environmental category, FPT scored 65% while the average score of the VN100 group is 60%; in the social category, FPT scored 84%, the average of the VN100 group is 67%; and in the corporate governance category, FPT scored 70%, the average of the VN100 group is 65%.

According to experts, well-managed businesses are also better valued (higher P/B ratio), attracting investor attention and increasing opportunities to access long-term capital from the market. At the same time, good corporate governance creates a framework and mechanism to better protect the rights of investors and stakeholders, as well as ensuring sustainable development and better resilience for the business.

By the end of November 2023, FPT Group had completed 90.3% of its revenue plan and 94.4% of its pre-tax profit plan for the whole year, equivalent to VND 47,201 billion in revenue, a 20.3% increase compared to the same period, and VND 8,545 billion in pre-tax profit, a 19.2% increase compared to the same period. Also in 2023, the company's market capitalization reached USD 5 billion.

KIM THANH

Source: https://www.sggp.org.vn/fpt-duoc-vinh-danh-trong-top-10-doanh-nghiep-nhom-von-hoa-lon-co-quan-tri-cong-ty-tot-nhat-nam-2023-post718914.html