HCMCity (VNA) - The set of Principles of BestCorporate Governance for all public companies in Vietnam was publicised by the State Securities Commission of Vietnam (SSC) at the Ho Chi Minh Stock Exchange (HOSE) on August 13.
The principles aim to promote thecapital market and the sustainable development of the economy.
The rules, which were developed with support from the International FinanceOrganisation (IFC) and the Swiss State Secretariat for Economic Affairs (SECO),make recommendations on best corporate governance practices for all Vietnamesepublic companies.
The set of 10 principles, with detailed recommendations on best principles, centreon addressing priority issues in corporate governance practices.
Notably, six out of them focus on operational functions of boards of directors –something many local firms need to improve.
The remaining four principles are related to corporate supervision, disclosureand transparency, shareholders' rights and relationships with stakeholders.
In addition to the above basic principles, the set also includes responsiblebusiness-related provisions, such as promoting gender diversity and encouraginga stronger focus on environmental and social issues in boards of directors.
TranVan Dung, Chairman of the SSC, said issuing the principlesis the latest effort to support all public companies and promote application ofinternational corporate governance standards, thus helping improve the qualityof listed companies.
It also marks a new step in perfecting the corporate governanceecosystem in Vietnam, he said.
Accordingto Philippe Le Houérou - Chief Executive Officer of IFC, investors are generally more confident in companies that apply goodcorporate governance systems and in markets that are supported by strict mechanismsand supervision regulations.
The principles will help Vietnamese companies attract investors and helpVietnamese businesses improve their competitiveness and business performance,he added.-VNA
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