Transparent corporate governance: The key to attracting sustainable capital.

VTV.vn - Transparent corporate governance is not just a compliance factor, but a key strategy that helps businesses enhance their value and attract sustainable international capital flows.

In the context of increasingly difficult international fundraising, transparent and effective corporate governance has become crucial.

Corporate governance is a strategic factor.

In the context of increasingly difficult international fundraising, transparent and effective corporate governance has become more crucial than ever for Vietnamese businesses. Especially with the FTSE Russell's upgrade of the Vietnamese stock market from "Frontier Market" to "Emerging Market" in 2025, the opportunity to attract tens of billions of USD in high-quality international capital is wide open. However, to seize this opportunity, businesses need not only a strong financial foundation but also to meet increasingly stringent criteria for corporate governance, including requirements for transparency, sustainable development, and green governance.

Experts argue that corporate governance is no longer simply a matter of compliance, but rather a strategy to enhance a company's trust, reputation, and competitiveness.

Ahead of the 8th Annual Forum on Corporate Governance (AF8), themed "Breakthrough Boards of Directors: Reaching Regional Heights, Building Trust and Reputation in the Capital Market," organized by the Vietnam Institute of Directors (VIOD) in Ho Chi Minh City, Ms. Ha Thu Thanh, President of VIOD, emphasized that to attract sustainable international capital, Vietnam needs to focus on improving the quality of corporate governance. Accordingly, corporate governance is no longer simply a matter of compliance, but a strategy to increase trust, reputation, and competitiveness. These non-financial factors are increasingly playing a crucial role in valuing businesses in the capital market.

International investors are now paying particular attention to non-financial factors such as shareholder rights, transparency in information disclosure, and risk management capabilities, especially in the context of climate change and environmental challenges. According to Ms. Nguyen Hoai Thu, Deputy General Director of VinaCapital Fund Management Company, investors are willing to pay higher prices for shares of companies with good governance, transparency, and sustainable strategies. This not only helps reduce capital costs but also creates a sustainable competitive advantage for businesses in the long term.

In reality, businesses with good corporate governance not only attract capital more easily but also minimize financial risks, increase shareholder value, and improve competitiveness. HDBank , one of Vietnam's leading banks, has demonstrated this through its application of the best international governance standards. The bank not only complies with corporate governance regulations but also proactively adopts international practices, thereby gaining the trust of international financial institutions such as IFC and ADB.

Transparency and efficiency: Strategic assets of businesses.

In today's increasingly competitive market, businesses need to clearly understand that transparency and efficiency in corporate governance are indispensable elements in building investor trust. These factors not only determine access to sustainable capital but also directly influence the valuation of the business in the market. According to Ms. Tran Anh Dao, Deputy General Director in charge of the Ho Chi Minh City Stock Exchange (HOSE), businesses need to build a strong corporate governance system to affirm their competitiveness and increase long-term value.

Transparency of information and increased shareholder participation in strategic decisions are crucial factors in attracting long-term capital for businesses.

As Vietnam emerges as an emerging market, improving corporate governance is crucial not only for businesses to meet the requirements of international investors but also a prerequisite for sustainable development. Specifically, transparent corporate governance helps businesses minimize legal and financial risks while enhancing operational efficiency, thereby building strong trust with investors.

This becomes even clearer in studies of investment trends in emerging markets. Institutional investors now increasingly prioritize companies with transparent governance models, sustainable development strategies, and strong risk management capabilities. Therefore, building a corporate governance system is not only a compliance requirement but also a crucial strategic element for businesses to thrive in the international competitive environment.

Experts also point out that transparency and increased shareholder participation in strategic decisions are crucial factors in attracting long-term capital for businesses. Meanwhile, businesses that do not prioritize these factors will struggle to access high-quality international funding and will be excluded from the global market.

Transparent and effective corporate governance is not only a requirement for legal compliance but also a long-term development strategy that helps businesses build trust and reputation, thereby attracting sustainable international capital flows. In the context of Vietnam's stock market upgrade and increasingly stringent corporate governance requirements, businesses need to recognize the importance of improving governance quality. Only by building a strong and transparent governance system can businesses seize growth opportunities, increase value, and assert their position in the international capital market.

The annual AF8 2025 forum, themed "Breakthrough Boards of Directors - Reaching Regional Heights, Establishing Trust and Reputation in the Capital Market," will take place on December 5, 2025, in Ho Chi Minh City. This prestigious event on corporate governance, linked to Sustainable Development and ESG, is organized by VIOD in collaboration with reputable partners such as IFC, SECO, SSC, and the HOSE, HNX, and VNX stock exchanges.

AF8 will announce the Top VNCG50 2025 , honoring 50 pioneering enterprises in improving corporate governance quality, and award prizes. Top 10 Boards of Directors of 2025, celebrating outstanding boards that demonstrate diversity, effectiveness, and innovative thinking.

Source: https://vtv.vn/quan-tri-cong-ty-minh-bach-chia-khoa-thu-hut-von-ben-vung-100251128163834698.htm