VLCA’s corporate governance mission

The VLCA is committed to updating its criteria annually, ensuring Vietnamese firms gradually integrate global standards, thereby building trust among both domestic and foreign investors.

In 2024, it introduced notable changes in corporate governance assessments, increasing the weight on compliance with Organisation for Economic Co-operation and Development (OECD) best practices. This shift marks an objective to move Vietnamese firms beyond mere regulatory compliance and towards advanced governance standards that incorporate environmental, social, and governance (ESG) factors - a standard embraced by developed markets.

The VLCA’s role goes beyond recognition. It aims to drive sustainable governance improvements across Vietnam’s corporate sector, encouraging resilience and innovation in the face of evolving business challenges. This year’s awards focus on promoting sustainable growth through digital transformation and climate response - urgent issues at the forefront of today’s economic development.

Vietnam’s long-term vision is clear: to place its corporate governance among the top five in ASEAN. This goal is more than a strategic aspiration. It is a critical foundation for enhancing competitiveness, attracting foreign investment, and shaping a positive global financial image.

With this ambition, the VLCA aims not only to award excellence but to elevate the standards of Vietnam’s listed companies by championing progressive governance initiatives. To achieve this, we call for a united effort - among businesses, regulators, and market partners - to enhance corporate quality and strengthen the market.

A vital element in Vietnam’s regional ambitions is the adoption of international governance standards. Through its corporate governance category, the VLCA continues to advocate for the application of OECD principles and best practices from developed markets. These standards strengthen shareholder rights, promote transparency in management, and boost competitiveness, which is crucial for building investor confidence, particularly among foreign investors.

Transparency is the cornerstone of modern corporate governance, and the VLCA’s focus is on encouraging companies to improve their information disclosure mechanisms. Our goal is for companies to go beyond mandatory reporting requirements, proactively providing essential information to safeguard shareholder interests and maintain investor confidence. This approach ensures fairness and equity across the securities market.

Sustainability is also a core focus of the VLCA, which actively promotes ESG criteria in corporate reporting. Sustainable practices are becoming essential in assessing a company’s growth potential.

Through its sustainability reporting category, the VLCA encourages companies to integrate ESG standards into their operations, which enhances business effectiveness, protects the environment, and contributes to society. This is a crucial step in positioning Vietnam more competitively within the region and internationally.

The Corporate Governance Excellence Awards 2024, a part of Vietnam Listed Company Awards 2024 (VLCA), recognised 25 listed companies during a ceremony held in Ho Chi Minh City on November 16.