The Urgency of Corporate Governance in Upgrading the Stock Market

In the Stock Market Development Strategy to 2030, improving the quality of transparent corporate governance, associated with ESG (Environmental, Social and Governance) criteria for listed enterprises, is considered an important starting point.

Speaking at the Conference on Improving the Quality of Corporate Governance for Listed Enterprises in Vietnam held today (July 3), Chairwoman of the State Securities Commission Vu Thi Chan Phuong said that good corporate governance will promote the efficiency of business operations, enhance access to capital markets, reduce capital costs, and improve the image of enterprises in the Vietnamese and international markets...

"When upgrading the Vietnamese stock market from a frontier market to an emerging market, corporate governance becomes more urgent than ever. Because when the upgrade is successful, foreign investors will look at the quality of the stock to see if it is good, transparent, and profitable... Increasing transparency in financial reporting to meet the upgrading criteria requires businesses to comply with stricter financial reporting and corporate governance standards. Businesses need to focus on ESG issues to meet international standards and the discipline of global investors," Ms. Phuong stated.

Ms. Ha Thu Thanh - Chairman of the Board of Directors of the Vietnam Institute of Directors (VIOD) said that corporate governance is one of the important factors besides social responsibility to build investor and market confidence. The role of the company's chairman will support the stock market when the market is upgraded. Corporate governance is also considered one of the 7 aspects of competitiveness, in addition to the capital mobilization factor. Therefore, this activity needs to come from internal needs to develop together.

The conference on improving corporate governance quality for listed enterprises in Vietnam was organized by the State Securities Commission in collaboration with the Vietnam Institute of Directors (VIOD). Photo: Duc Manh

As a large enterprise on the stock exchange, Mr. Truong Gia Binh - Chairman of the Board of Directors of FPT Corporation affirmed that the role of the enterprise's chairman is to guide and pioneer in order to comply with the highest requirements on governance, which is currently moving towards governance according to ESG criteria. How to make employees find their work more and more interesting every day, thereby contributing to increasing labor productivity.

"For FPT, to be able to manage, it is necessary to use information technology. As a listed company, in the eyes of investors and with high demands, technology is indispensable" - Mr. Binh shared.

According to Ms. Nguyen Thi Mai Thanh - Chairwoman of the Board of Directors of Refrigeration Electrical Engineering Company, the Board of Directors also plays a role in supervising and selecting people suitable for the company culture and training them to develop.

Source: https://laodong.vn/kinh-doanh/tinh-cap-thiet-cua-quan-tri-cong-ty-khi-nang-hang-thi-truong-chung-khoan-1361177.ldo