Good corporate governance will create confidence for international investors.

VTV.vn - Corporate governance not only helps businesses manage risks and protect shareholders, but is also an important factor in building prestige, trust and reputation in the capital market.

Vietnam Corporate Governance Forum (AF8), organized by the Vietnam Institute of Directors (VIOD) in Ho Chi Minh City on December 5, with the theme "Breakthrough Board of Directors: Reaching regional reach, positioning trust and reputation in the capital market"

Corporate Governance: The Pillar of Capital Markets

International investors, especially responsible funds, not only observe GDP growth rate or profit margin, but also pay more and more attention to governance and transparency of listed companies. Therefore, corporate governance becomes an important requirement for Vietnam to enter the emerging market group, after the stock market is upgraded.

Speaking at the Vietnam Corporate Governance Forum (AF8), organized by the Vietnam Institute of Directors (VIOD) in Ho Chi Minh City on December 5 with the theme "Breakthrough Board of Directors: Reaching regional reach, positioning trust and reputation in the capital market", Ms. Ha Thu Thanh, Chairwoman of VIOD, emphasized that Vietnam is at a "pivotal point" when the roadmap for upgrading the market has been established, and the new position entails completely different standards.

According to Ms. Ha Thu Thanh, in the competition to attract high-quality capital flows, trust and reputation have become "core competitive factors". This is not just a descriptive statement, but an observation drawn from the shift in global capital allocation strategy. A Board of Directors that knows how to position trust and reputation not only attracts investors, but also leads businesses into a sustainable development trajectory, overcoming the limits of formal compliance to approach advanced governance standards of countries in the region and around the world .

Chairwoman of the State Securities Commission, Ms. Vu Thi Chan Phuong, also emphasized that upgrading "is not the destination, but the beginning of a higher stage of development".

FTSE Russell’s announcement that Vietnam is eligible for an upgrade to emerging market status, with an official deadline of September 21, 2026, is the result of many years of reform. Great opportunities come with great responsibilities. Vietnamese enterprises must demonstrate their capacity to absorb capital and manage capital through transparent, effective and reliable mechanisms.

The State Securities Commission Chairwoman, Ms. Vu Thi Chan Phuong, also emphasized that upgrading is "not a destination, but the beginning of a higher stage of development". As the market enters the emerging group, expectations for transparency, efficiency and investor protection will increase sharply. Enterprises need to consider corporate governance as a long-term strategy, consider information disclosure as a commitment to shareholders and consider risk management as a sustainable foundation. These requirements are completely consistent with the spirit of the Market Upgrading Project (Decision 2014/QD-TTg).

At the forum, Ms. Nguyen Hong Giang, Senior Program Officer, Swiss State Secretariat for Economic Affairs (SECO), also said that a strong governance culture is the key for Vietnam to fully exploit the potential of a stable and reliable economy. According to her, sustainable financial performance is always associated with standards that promote transparency and accountability. An economy with a good governance culture will create systemic trust, which global investors are always looking for.

In a broader view, international speakers attending the forum agreed that corporate governance is the foundation for reducing market risks, increasing corporate credit ratings and improving valuations. The gap between corporate governance scores of Vietnamese enterprises and those of leading ASEAN countries shows that the task of improving governance standards is not only a market requirement but also an urgent requirement for national competitiveness.

In the emerging market arena, international capital does not invest where risks are hidden, they will not invest in businesses that lack transparency, and they will not invest in Boards of Directors that operate with a term-based mindset instead of a strategic mindset. This is the reason why corporate governance is considered a "passport" for Vietnamese businesses to enter a new growth cycle.

Trust is the basis for capital mobilization

The Vietnamese stock market is shifting from quantitative growth to qualitative growth. In this context, trust and reputation become two "soft assets" but are the factors that determine the true value of a business in the eyes of investors.

According to Ms. Ha Thu Thanh, trust and reputation are two values ​​that pioneering Boards of Directors must lead. Because a business with a good governance foundation will be seen as trustworthy, less risky and capable of maintaining long-term growth. This has a direct impact on the cost of capital: the business enjoys a lower cost of capital, is valued higher and is preferred by investors during volatile periods.

Trust and reputation become two "soft assets" of a business and are also factors that shape the true value of a business in the eyes of investors.

Corporate reputation is not only a result of communication but also a "reflection" of governance quality. A transparent enterprise with an independent Board of Directors, a systematic risk management mechanism and clear accountability will build a sustainable reputation. This reputation is the "bridge" for enterprises to access long-term capital flows, a group of capital considered the biggest driving force for the development of emerging markets.

In the context of Vietnamese family businesses preparing for IPO, which are considered a source of "new goods" for the capital market, corporate governance becomes a key factor right from the pre-listing stage. Experts at AF8 recommend that family businesses must build a governance foundation early to create trust with international investors. International financial institutions always appreciate the stability and transparency of Vietnamese businesses more than any financial indicators.

Standing out in the series of initiatives of AF8 are ACGS20 - a group of 20 pioneering enterprises aiming for "ASEAN Asset" standards, and VNCG50 - a set of criteria to honor enterprises with good governance practices. This is not only a title but also a tool to create a "new governance platform", helping to narrow the gap between Vietnamese enterprises and ASEAN and OECD standards. An enterprise meeting ACGS20 or VNCG50 standards not only increases its governance score but also increases its brand value, because investors see it as the enterprise's commitment to international standards.

Trust and reputation, according to experts, are the two ultimate measures of corporate governance quality. A market can only become a destination for long-term capital flows when its businesses demonstrate that they have good risk management capabilities, seriously protect shareholders, provide information transparency and operate with a sustainable vision. This is the foundation for Vietnam to not only upgrade its ranking but also become an attractive and trustworthy capital market in the region.

Source: https://vtv.vn/quan-tri-cong-ty-tot-se-tao-niem-tin-cho-nha-dau-tu-quoc-te-100251205164730546.htm