Illustrative image (Photo:VNA)
Corporate governance, besides other sustainable development factors, is pivotal to attracting investors and promoting the capital market, practically benefiting ASEAN economies and Vietnam in particular, said Chris Razook – Head of the Corporate Governance in East Asia and Pacific under the International Finance Corporation. 

At a forum in Ho Chi Minh City on September 4, Razook said the ASEAN Corporate Governance Scorecard (ACGS) was introduced in 2011, which was a substantial effort from regional countries to implement the ASEAN Capital Markets Forum action plan, designed to develop integrated capital markets and establish the bloc as a promising investment destination of the world. 

The scorecard is expected to help improve the practice of corporate governance at the region’s publicly listed companies and their competitiveness while popularising their image among foreign investors, he added. 

Although Vietnam has applied the ACGS for the past four years, the number of listed businesses assessed according to ACGS criteria was only 50 in 2014, far below the required minimum of 100, experts at the forum said. 

They noted that the country has continually ranked at the bottom position among nations using the ACGS: the Philippines, Thailand, Malaysia, Singapore and Indonesia. 

Corporate governance specialist Nguyen Thu Hien said the biggest challenge currently facing Vietnam is altering enterprise awareness of the ACGS, which will help them popularise their image to international investors. 

Vice Chairman of the State Securities Commission Nguyen Thanh Long said the ACGS is attracting more and more interest from businesses and investors as it illustrates companies’ commitment to corporate governance transparency and sustainable development while helping investors examine firms’ potential. 

He urged domestic enterprises to make the best use of the ACGS to advertise themselves, attract investment and foster the capital market in Vietnam and the ASEAN region as a whole.-VNA