Forum discuss ways to better corporate governance hinh anh 1Scene at the conference (Photo:

Hanoi (VNA)
– The Vietnam Chamber of Commerce and Industry (VCCI) in conjunction with the State Security Commission hosted a business corporate forum in Hanoi on April 21 to announce an annual report on Vietnamese businesses in 2017.

General Secretary of the VCCI Pham Thi Thu Hang, who is also Director of the Institute of Business Development, said the report is one of the important documents which help the public get insights into Vietnamese enterprises’ development.

It gives an overview of Vietnamese businesses’ real development and capacity, thus proposing measures to improve their competitiveness, she noted.

According to the report, Vietnam recorded a strong increase in the number of new enterprises in 2007-2016, with over 802,000, lifting the total number of businesses in the country to over 1 million.

Notably, the country had over 1000 firms registered for establishment in 2016.

Enterprises that declared to stop operation or dissolve in 2016 decreased by 9.5 percent against the previous year.

However, Hang also noted that the quality and efficiency of Vietnamese enterprises remain limited due to ineffective governance capacity, especially corporate governance.

According to VCCI Vice Chairman Doan Duy Khuong, the practice of convenient-oriented management with the shortage of corporate governance-related factors makes enterprises’ competitiveness restricted, resulting in their slow response to the change of business climate, especially in the context of the financial crisis.

He also underlined the need to improve corporate governance capacity, saying that this is a decisive factor to help enterprises narrow gaps and keep pace with firms in regional countries.

Participants to the forum discussed solutions to the issues, saying that it is necessary to focus on applying the international financial statement-related accounting standards, honouring enterprises with good performance, and enhancing the role of business associations.

The above-mentioned efforts have been promoted by the State Security Commission in connection with the International Finance Corporate (IFC), the VCCI and relevant agencies through the Vietnam Corporate Governance Initiative (VCGI), Khuong said.-VNA