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| Chairman of the State Securities Commission Vu Thi Tran Phong speaks at the conference. — Photo courtesy of SSC |
HANOI — The year 2024 will see significant progress in upgrading Vietnam’s stock market, a conference announced.
However, to achieve this goal, companies must fully comply with the responsibilities and obligations of their board of directors in accordance with the Companies Act and Securities Act.
The Government and the Ministry of Finance place particular emphasis on improving the quality of corporate governance related to Environmental, Social and Governance (ESG) standards for listed companies, as evidenced by the practical actions of the Vietnam Institute of Directors in promoting and implementing corporate governance standards.
Speaking at the conference on “Improving corporate governance capabilities of listed companies”, Chairman of the State Securities Commission (SSC) Vu Thi Tran Huong said: “After more than 25 years of development, Vietnam’s stock market has become an important channel for medium- to long-term capital for the economy.”
Starting in 2000 with only three listed companies, the stock market has continued to grow, with around 1,800 listed companies and a market capitalisation of over VND7,066 trillion, up 19% from the end of 2023 and equivalent to 69% of GDP.
The Ho Chi Minh Stock Exchange alone has an average daily trading volume of about US$1 billion, with more than 7 million investor accounts, accounting for about 7.5% of the population. Many companies have successfully raised funds on the stock market.
As stock markets continue to develop in line with international standards and practices, aiming to elevate from a frontier market to an emerging market, improving corporate governance will become increasingly important.
The process that companies must undertake is divided into four components: enhancing transparency and financial reporting, raising governance standards, attracting investment, improving corporate image, and socially responsible sustainable development.
“As the stock market upgrades, ESG requirements will become more important. Companies need to focus on environmental, social and governance issues to meet international standards and global investors’ expectations,” Fong said.
She said companies must fully comply with the responsibilities and obligations of their board of directors in accordance with the Companies Act and the Securities Act. Currently, the governance of listed companies is still limited, making it difficult for companies to find suitable independent directors.
“With a strong determination to improve corporate governance and attract foreign investment in the stock market, the State Securities Commission is ready to advise the government and the Ministry of Finance, assist listed companies, and always accompany them on corporate governance issues and address any concerns,” Phuong added. — VNS
