AGM season puts corporate governance under scrutiny

March 11, 2026 | 11:35

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This year's AGM season is emerging as a test of corporate governance, transparency, and sustainable development amid tightening standards and rising investor expectations.

On March 10, regulators and market institutions convened a forum titled 'AGM Season 2026: Compliance or Breakthrough – Efficiency or Sustainability' in both Hanoi and Ho Chi Minh City, with in-person and online formats. The third such annual event came as international capital increasingly scrutinises governance capacity and commitments to environmental, social, and governance (ESG) standards.

The conference, jointly organised by the State Securities Commission of Vietnam, Vietnam Stock Exchange, Ho Chi Minh Stock Exchange (HSX), Hanoi Stock Exchange, and the Vietnam Institute of Directors (VIOD), aims to help public companies prepare for the upcoming AGM season amid significant regulatory changes and growing scrutiny from investors.

Vietnam’s stock market is moving closer to the goal of being upgraded to emerging market status under Morgan Stanley Capital International's classification, the International Financial Centre in Ho Chi Minh City has officially commenced operations, and the Vietnam Corporate Governance Code has been introduced, establishing a governance framework aligned with standards set by the Organisation for Economic Co-operation and Development.

Nguyen Hoang Duong, vice chairman of the State Securities Commission, noted that this series of positive developments across the country's financial system and broader economy are converging just as AGM season begins.

“Experience from markets across the region shows that when international capital begins to look at an emerging market, investors are not just examining financial figures,” he said. “They observe how companies operate and manage governance, and the AGM is where this becomes most visible.”

“The level of information transparency, the quality of the board’s explanations, the culture of dialogue with shareholders, and the ability to communicate strategy and ESG commitments are all assessed through a single AGM. For major institutional investors, pension funds, or institutions with strict governance standards, a well-organised AGM serves as one of the most credible signals a company can send to the market,” Duong added.

AGM season puts corporate governance under scrutiny

Nguyen Hoang Duong, vice chairman of the State Securities Commission of Vietnam

According to Trinh Son Hong, acting chairman of HSX, AGMs should not be viewed merely annual legal procedure, but as an important opportunity for substantive dialogue with shareholders and the market.

"With significant events already affecting the stock market in 2026, transparency and governance standards for listed companies are becoming more demanding, especially from institutional and foreign investors," said Hong. "Improving AGM quality is therefore not just about compliance, it is a key factor in strengthening corporate credibility and access to international capital."

Alongside the development of the capital market, Vietnam’s legal framework for corporate governance is also continuing to evolve.

Providing updates on regulatory changes, Le Trung Hai, deputy head of the Public Company Supervision Department at the State Securities Commission of Vietnam, said the 2025-2026 period has seen several important adjustments related to corporate governance regulations.

These changes include amendments to the Enterprise Law 2025, Decree No.168/2025/ND-CP on enterprise registration, and notably Decree No. 245/2025/ND-CP amending and supplementing Decree No.155/2020/ND-CP, which guides the implementation of the Securities Law.

“One notable change is the amendment to the Enterprise Law 2025, which introduces the concept of ‘beneficial owner’. This helps identify individuals who ultimately control companies within complex ownership structures,” Hai said. “The provision is intended to enhance governance transparency and support regulators in monitoring corporate activities.”

From a corporate governance perspective, Phan Le Thanh Long, general director of VIOD, said AGMs are increasingly viewed by investors as a key indicator of confidence in a company’s leadership.

“In developed markets, the quality of an AGM is assessed through multiple factors, including the level of information transparency, the board’s ability to provide explanations, shareholders’ participation rights, and the quality of dialogue between companies and investors,” said Long.

“A well-organised AGM does more than comply with legal requirements; it demonstrates professionalism in governance. Companies should prepare comprehensive documentation in advance, provide timely disclosures, and create opportunities for shareholders to discuss, ask questions, and contribute opinions,” he added.

According to Long, investor confidence is not built overnight but accumulated over time. As such, AGMs should be viewed as an important touchpoint in a company’s strategy to build credibility and strengthen its reputation in the capital market.

During a panel discussion held simultaneously in Hanoi and Ho Chi Minh City and livestreamed between both venues, speakers highlighted evolving AGM practices among Vietnamese companies. The session was moderated by Long and Vu Quang Thinh, a VIOD board member and board member of Dynam Capital.

Panellists noted that many companies have begun transforming the way they organise AGMs to make them more transparent and interactive. The discussion also highlighted a growing trend towards the adoption of technology. Tools such as e-voting and online participation are increasingly used to expand shareholder engagement, particularly for institutional and foreign investors.

According to the speakers, AGMs are no longer just regulatory meetings but are becoming important events in corporate communication strategy. They provide an opportunity for companies to present strategic direction, demonstrate governance capability, and strengthen market confidence.

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By Hazy Tran

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