The FINANCIAL -- IFC, a member of the World Bank Group, is helping the State Securities Commission of Vietnam (SSC) to improve corporate governance by developing a corporate governance code for listed companies. This will help Vietnamese companies attract more capital and make them more competitive in an environment of increasing regional economic integration.
IFC and SSC held a high-level workshop in Hanoi earlier this week to kick off the code development process. Participants included representatives from SSC, the two stock exchanges HNX and HOSE, and other stakeholders. The workshop provided an update on corporate governance codes from around the world and facilitated discussion on the relevant approach for Vietnam, according to IFC.
“The code aims to strengthen competitiveness of Vietnamese listed companies through adoption of internationally recognized corporate governance practices,” said Pham Hong Son, SSC Vice Chairman. “The code will guide listed companies on how to adopt best corporate governance practices that go beyond regulatory compliance for better capital-market integration with Association of Southeast Asian Nations (ASEAN) countries and globally.”
The World Bank Group’s experts shared examples of code development from Organization for Economic Cooperation and Development (OECD) countries and neighboring nations such as China, Indonesia, Thailand, the Philippines, and Malaysia.
“Experience around the world has shown that corporate governance codes are benchmarks to help implement good corporate governance practices at the company level, which is key to sustainable private sector development,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Vietnam. “There is much to learn from the experiences of other markets globally as Vietnamese companies strive to improve their corporate governance."
The code is expected to be launched by mid-2017. IFC’s support for the development of a corporate governance code is part of its overall efforts to promote corporate governance in Vietnam in partnership with the State Secretariat for Economic Affairs of Switzerland (SECO).
IFC has contributed to the adoption of 95 corporate governance codes, laws, and regulations in more than 30 countries worldwide.