Vietnam launches VNCG50 scorecard to enhance corporate governance

Vietnam’s Corporate Governance Scorecard, VNCG50, designed to enhance the quality of corporate governance for listed companies, will be publicly-released for the first time at the 7th Annual Corporate Governance Forum in Ho Chi Minh City on December 5.

At a press briefing on November 29, Ms. Ha Thu Thanh, Chair of the Vietnam Institute of Directors (VIOD), said Vietnam’s corporate governance ranking within ASEAN, as assessed by the ASEAN Corporate Governance Scorecard, is extremely low, placing it last out of six assessed countries.

“This underscores the critical need to prioritize corporate governance in the future development strategies of Vietnamese businesses, particularly those listed on the stock market,” she continued.

Strong corporate governance is considered a key measure of competitiveness and a foundation for enhancing transparency and accountability in businesses pursuing sustainable development. Improving governance across individual companies will increase their attractiveness to investors.

Given the current trends of green transformation, digital transformation, and sustainable development, investment in corporate governance is of paramount importance not only for businesses but also for consumers and investors.

“As demands for corporate governance intensify, investing in effective governance aligned with ESG [environmental, social, and governance] principles is no longer a choice but a necessity for businesses, especially listed companies and public companies,” Ms. Thanh emphasized. “International investment funds are increasingly focusing on and shifting their sustainable investments toward businesses that implement corporate governance with measurable environmental and social impact.”