Publication: Corporate Governance Country Assessment : Vietnam
Date
2013-08
ISSN
Published
2013-08
Author(s)
World Bank
Abstract
This report assesses Vietnam's
corporate governance policy framework. It highlights recent
improvements in corporate governance regulation, makes
policy recommendations, and provides investors with a
benchmark against which to measure corporate governance in
Vietnam. It is an update of the 2006 Corporate Governance
ROSC for Vietnam. Good corporate governance enhances
investor trust, protects minority shareholders, and
encourages better decision making and improved relations
with workers, creditors, and other stakeholders. Better
investor protection can lower the cost of capital and
encourage companies to list and raise funds through equity
markets. Good corporate governance also helps to ensure that
these companies operate more transparently and efficiently.
Vietnam has undertaken important corporate governance
reforms in recent years. However protecting minority
shareholders, fully tapping the potential of capital
markets, and professionalizing boards and management will
require that reform continues. Key reforms include:
Developing an action plan to address core failings of state
owned enterprise corporate governance, including replacing
the current state economic groups, or SEG oriented system
with one that has more accountable state ownership; and
Increasing transparency with greater auditor independence,
better disclosure of ownership and control, and convergence
of accounting standards with International Financial
Reporting Standards, or IFRS.
Citation
“World Bank. 2013. Corporate Governance Country Assessment : Vietnam. © Washington, DC. http://openknowledge.worldbank.org/handle/10986/20587 License: CC BY 3.0 IGO.”