Local bourses partner up with IFC in corporate governance initiative

HCM City (VNA) - The Ho Chi Minh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) signed with IFC, a member of the World Bank Group, an MoU on December 16 to jointly promote effective corporate governance standards and practices among companies listed on the two exchanges.

Under the MoU, the three partners will launch the Vietnam Corporate Governance Initiative, aiming at assisting managers in mobilizing market resources and calling for cooperation and coordinating stakeholder efforts to improve capacity and corporate governance by applying the world’s best practices. 

The three sides will enhance the efficiency of Vietnamese public companies, facilitate their access to capital, boost economic growth, and create more employment opportunities. 

Tran Van Dung, HOSE Chairman stressed the important role of corporate governance standards and practices in managing risks and enhancing competitiveness and growth quality of the corporate sector as well as the whole economy.

He expressed his belief that the initiative will contribute to the healthy and sustainable development of Vietnam’s capital market.

Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia, and Laos, highlighted the recent improvement in corporate governance in Vietnamese firms, adding that however, they are still behind their regional peers and more progress is needed to narrow the gap.

He said the initiative is another effort by IFC to continue strengthening corporate governance practices in Vietnam, under which Vietnamese enterprises will be equipped with necessary tools to reduce financial and operational risks and enjoy better access to capital, enhanced trust and accountability to shareholders.

At the signing ceremony, representatives from 50 listed companies were updated on the newly-revised G20/OECD Principles of Corporate Governance, with the Vietnamese version translated by the IFC.-VNA