VLCA 2024 honours corporate governance excellence as listed companies raise the bar

VLCA 2024 honours corporate governance excellence as listed companies raise the bar

Organised by the Ho Chi Minh Stock Exchange, the Hanoi Stock Exchange, and VIR, with exclusive sponsorship from Dragon Capital, the awards aim to drive continuous improvement in corporate governance standards across Vietnam’s capital markets.

This year’s awards introduced updated evaluation criteria, placing greater emphasis on best practices aligned with the Organisation for Economic Cooperation and Development standards.

This marks a deliberate shift towards encouraging Vietnamese companies to go beyond compliance with legal requirements and adopt more advanced governance frameworks that integrate environmental, social, and governance (ESG) principles – benchmarks of well-developed markets.

Organisers highlighted that Vietnam is striving to become one of the top five ASEAN countries in corporate governance. This ambition, they noted, is more than a strategic objective; it forms a critical foundation for enhancing national competitiveness, attracting foreign investment, and building a positive reputation in the global financial community.

Hà Thu Thanh, chairwoman of the Vietnam Institute of Directors, underscored the pivotal role of leadership in elevating governance standards.

“The first and most critical step in improving corporate governance is changing the mindset of leaders, including board members and executives. Boards of directors must ensure that business strategies are designed and executed with a focus on transparency, efficiency, and sustainability,” she said.

Thanh emphasised the importance of ESG integration for long-term growth.

“By 2025, companies must establish clear ESG goals, ensuring that these objectives are embedded into their annual business strategies,” she noted. “These goals should be actively discussed and monitored at board meetings to ensure consistency and meaningful execution.”

Achieving governance excellence requires embedding governance and ESG principles systematically across all organisational levels. Boards and executive teams must integrate these elements into regular decision-making processes, ensuring alignment and continuity.

Governance frameworks must evolve beyond policy declarations into actionable processes tied to robust risk management systems. Clear structures that meet transparency and accountability requirements are essential for measuring and managing risks across all levels of the organisation, ensuring consistent implementation.

Among the 25 companies honoured, large-cap firms stood out for their superior governance practices and disclosure standards. However, smaller companies were encouraged to accelerate their efforts to align with their mid- and large-cap peers.

The Corporate Governance Excellence Awards reflect Vietnam’s commitment to strengthening corporate governance as a cornerstone of its financial markets’ credibility and competitiveness.

“These efforts will not only advance Vietnam’s global standing but also create a foundation for long-term, sustainable growth and greater investor confidence,” the VLCA organising team stressed.

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