An investor looks at trading figures at the Vietcombank Securities Limited Company (Photo: VNA) Hanoi (VNA) – Listed companies account for just 0.1 percent of the total number of operating enterprises and see poor corporate administration, an annual business report released by the Vietnam Chamber of Commerce and Industry (VCCI) showed.
By December 15, 2016, Vietnam had close to 1,830 public companies, with 693 firms listed on the Hanoi Stock Exchange (HNX) and the Ho Chi Minh Stock Exchange (HOSE) and 391 others trading shares on the Unlisted Public Company (UPCoM) market.
According to the report, with the encouragement of management agencies, listed companies have paid attention to corporate administration, but they still failed to meet international standards.
Vu Chi Dung, Director of the International Cooperation Department of the State Securities Commission (SSC), said Vietnamese public companies, particularly small- and medium-sized firms, lack knowledge and expertise in corporate management and they just strive to satisfy minimum requirements as regulated.
The Finance Ministry’s Circular No 121/2012/TT-BTC classifies public companies and listed enterprises to set out higher standards for corporate administration. However, these regulations are seen as recommendations rather than obligations.
SSC Chairman Vu Bang said his agency has implemented a wide range of measures to enhance business management in listed companies. The Finance Ministry and the SSC have submitted to the Government a decree on corporate administration, he added.
On April 20, the SSC and the International Finance Corporate (IFC) established a national advisory council on company management, which is expected to issue specific regulations for businesses to follow.-VNA
VNA
