Dominic Scriven shares about the local economy and challenges and chances for board of directors in Vietnam. (Photo: cafef)Hanoi (VNS/VNA) - With the Vietnamese economy still growing, firms'boards of directors should develop to take advantage of opportunities, a topbusinessman has said.
Dominic Scriven OBE, chairman of Dragon Capital Group and vice chairman of VietnamInstitute of Directors (VIOD), said the portents in the world economy were poordue to potential trade wars, slow growth and large public debt at the VIODAnnual Forum 2019 in Hanoi on December 3.
With the institute considering board leadership crucial during times oftransition and rapid development, VIOD’s forum was a chance for board membersto network to address various board leadership issues facing Vietnamese firms.
Scriven, who was awarded the Order of Labour, said he appreciated the stronggrowth in Vietnam, with inflation under control and foreign investmentincreasing.
He told Viet Nam News “Amid current uncertainty of the world economy, Vietnamstill remains an 'oasis' with the national economy growing over the last 10years.”
“The Vietnamese dong is one of the most stable currencies,” he added.
In the long term, he said: “Vietnam will witness strong growth of the middleclass and the growing role of the private sector.”
Dominic said salaries at the top 50 listed companies in the past eight yearshad almost doubled.
He thought in such context, the role of boards of directors was “veryimportant” as they were able to take advantage of Vietnam's opportunities.
Also at the forum, Elisa Mallis, Managing Director and Vice President, AsiaPacific, Center for Creative Leadership (CCL), said though men dominated Asianboards, the situation had improved in Vietnam.
A CCL survey showed that the percentage of women on board in Vietnam was 25 percent,the highest percentage in Southeast Asia, followed by Malaysia with 19 percentwhile Indonesia had the least with 8 percent.
Chris Lawley, Vice President, Diligent Corporation, APAC said a challenge forboards was limited innovation in governance. He told the forum that thoughdigital technology had impacted board governance, it was surprising to see thatfew firms paid enough attention to the matter.
“Cybersecurity is an enterprise-wide responsibility with engagement required fromthe topmost levels," he said.
He took an example if one email address in a firm was attacked by hackers,there could be at least another 40 targets selected for further attacks. Ifthose at the top were attacked, it could involve the whole firm.
Tieu Yen Trinh, CEO, Talentnet Corporation told Viet Nam News that boards satat the centre of the corporate governance system and play critical roles in thedirection and oversight of the company.
“Their benefit should be developed on an overall basis and should be used tomotivate directors in their services,” she said.
Trinh suggested the board’s remuneration should be determined by the Board ofDirectors and disclosed completely to all shareholders./.
VNA
