PwC announces efforts to promote strong Corporate Governance Practices
PwC Vietnam has announced its intent to promote strong Corporate Governance practices, with the intended effect being to increase the transparency and efficiency of stock markets, following the release of the State Securities Division of Vietnam's Corperate Governece guidelines.
Through the promotion of these corporate governance (CG) practises, PwC has stated that it hopes to create market confidence, promote business integrity, increase company competitiveness, help develop financial markets, and ensure the long-term sustainability of the company, thus serving in the best interests of its stakeholders.
The first Vietnam CG code, entitled “Code of Corporate Governance according to best practices” and developed by the State Securities Division of Vietnam, with support from The World Bank and Swiss Federal Economic Bureau, has been introduced to raise the quality of the practises carried out by listed companies in the local market, thus attempting to ensure the confidence of investors.
The adoption of the State Securities Division’s CG code has been made voluntary, with the published code being released as a series of guiding principles. Listed companies who adopt the CG code are to routinely disclose the implementation practises they have undergone to adhere to the CG code, and are to reveal this information through multiple outlets, including the firm’s website and in annual reports.
The code establishes the responsibilities of the board of directors, risk management expectations, transparency and disclosure protocol, shareholder rights, and stakeholder relations; each of these areas are broken down into 10 principles to help facilitate the implementation of the CG code in these areas.
The published CG guide goes on to recommend structures to facilitate the implementation of the code; it suggests the strengthening of the company’s charter, the review of internal processes, the development of area-specific charters, and the development of a code of conduct and ethics, among other suggestions.
The Deputy General Director of PwC Vietnam, Hoang Hung, has stated that “good company governance will help ensure the sustainable development in the long-term of companies, in the best interests of shareholders and other stakeholders,” as described through a LinkedIn post by PwC Vietnam.
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