The result is announced at the VIOD’s annual forum via a videoconference Hanoi (VNA) - Vinamilk has been the first and only Vietnamese company recognised as "ASEAN Asset Class” at the annual forum of the Vietnam Institute of Board Members (VIOD) held on December 10.
At the same time, the company also led Vietnam's top three listed companies according to the 2019 ASEAN Corporate Governance Scorecard results, a part of the ASEAN Capital Market Forum (ACMF)'s ASEAN Corporate Governance Initiative.
The ASEAN Corporate Governance Scorecard 2019 (ACGS) compiled results from nearly 600 enterprises in ASEAN, 82 of which are those from Vietnam. The preliminary round put forward 35 enterprises with highest scores as evaluated by Vietnamese experts.
Later, they were cross-evaluated by experts from the other five ASEAN countries to ensure transparency, independence, and objectivity.
As a result, Vinamilk is the first and only Vietnamese company awarded in the "ASEAN Asset Class" category.
To be qualified, companies must earn a minimum of 75 percent of the maximum attainable score of 130.
Among five criteria for corporate governance assessment, responsibility of the Board of Directors along with transparency and information publicity account for the highest rate, reaching 40 percent and 25 percent, respectively.
Mai Kieu Lien, member of the Board of Directors and Chief Executive Officer of Vinamilk, said the company’s strategic direction is to proactively approach international corporate governance standards. In addition to the strong collaboration with local regulators such as the State Securities Commission of Vietnam (SSC), the Ho Chi Minh City Stock Exchange (HOSE), VIOD, the International Finance Corporation (IFC), and the Central Institute for Economic Management (CIEM). Vinamilk is very much appreciative of the contributions made by international organisations and investors, such as IFC, Mobius Capital Partners, Dragon Capital, Genesis, Arisaig in helping the company achieve today results.
With the outstanding efforts in 2020, a year with uncertainties, Vinamilk continues receiving several domestic and regional awards. Vinamilk has been continuously improving its corporate governance practices, resulting in having always been in the Top 5 Corporate Governance Report for listed companies since 2013, and being Top 10 Sustainable Development Enterprises in the manufacturing sector for the fifth consecutive year. Furthermore, scoring a hattrick of Vietnam's first prize in Best Corporate Governance, Best Annual Report and Best Sustainability Report has further proven Vinamilk's readiness for regional awards.
As of December 21, Vinamilk's market capitalisation had reached over 10 billion USD. This dairy manufacturer is the local market leader with more than 50 percent of market share, and its products have been exported to over 54 countries and regions, including member states of the Regional Comprehensive Economic Partnership (RCEP).
According to the Organisation for Economic Cooperation and Development (OECD), how businesses are built and governed is critical to a country's economic development. Effective corporate governance means more efficient use of resources, better access to capital, better job opportunities, and the opportunity to make national and regional capital markets more sustainable.
ACGS is an independent assessment based on publicly available information of companies listed on ASEAN stock exchanges and on a common set of criteria applicable to all six ASEAN countries joining the programme, including Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Over the past years, ACGS has become a standard of good corporate governance practices for listed companies not only in Vietnam but also in ASEAN countries. The ACGS has always been welcomed by stakeholders and has become an effective platform to promote good corporate governance practices in the region, making great contributions to popularising the image of regional quality investment assets.
The ACGS is not merely being used as a reference to policymakers in improving the national corporate governance framework. Its evaluation has expanded beyond its original scope and applied more effectively as a tool to review corporate governance capability of domestic listed companies./.
