World Bank2014-11-192014-11-192013-08https://hdl.handle.net/10986/20587This 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.en-USCC BY 3.0 IGOADMINISTRATIVE ACTIONSADVANCED ECONOMIESAUDIT CLIENTSAUDIT COMMITTEEAUDIT COMMITTEESAUDITOR INDEPENDENCEBANK CREDITBANKRUPTCYBANKSBENEFICIAL OWNERSBOARD MEETINGSBOARD MEMBERBOARD MEMBERSBOARDS OF DIRECTORSCAPITAL EXPENDITURESCAPITAL INVESTMENTCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCAPITAL REQUIREMENTSCENTRAL BANKCEOCEOSCERTIFIED PUBLIC ACCOUNTANTSCHARTERCHARTERSCHIEF EXECUTIVECIVIL LIABILITYCOMMERCIAL BANKSCOMMON LAWCOMPANYCONFLICT OF INTERESTCONFLICTS OF INTERESTCONTROLLING SHAREHOLDERCONTROLLING SHAREHOLDERSCORPORATE DISCLOSURESCORPORATE GOVERNANCECORPORATE GOVERNANCE CODECORPORATE GOVERNANCE FRAMEWORKCORPORATE GOVERNANCE FRAMEWORKSCORPORATE GOVERNANCE REFORMSCORPORATE INFORMATIONCORPORATE STRUCTURECORPORATE TRANSPARENCYCORPORATIONCOST OF CAPITALCREDIT INSTITUTIONSDAY TRADINGDEBTDEPOSITORYDIRECTOR LIABILITYDISCLOSURE REQUIREMENTSDISPUTE RESOLUTIONDISSEMINATION OF INFORMATIONDIVIDENDDIVIDEND PAYMENTSDIVIDENDSDUTY OF CAREDUTY OF LOYALTYECONOMIC CRISISECONOMIC DEVELOPMENTEMERGING ECONOMIESEMERGING MARKETEMERGING MARKET COUNTRIESEMERGING MARKETSENTERPRISE LAWEQUAL TREATMENTEQUITY MARKETSESTATEEXPOSUREFIDUCIARY DUTIESFINANCE CORPORATIONFINANCIAL COMPANIESFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DISCLOSUREFINANCIAL INFORMATIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL REPORTSFINANCIAL SECTORFINANCIAL STATEMENTFINANCIAL STATEMENTSFINANCIAL SYSTEMFIXED ASSETSFOREIGN FUNDSFOREIGN INVESTMENTFOREIGN INVESTORFOREIGN INVESTORSFOREIGN OWNERSHIPFUND MANAGEMENTFUND MANAGERSGLOBAL CAPITALGLOBAL CAPITAL MARKETSGOOD CORPORATE GOVERNANCEGOOD GOVERNANCEGOVERNANCE PRACTICESGOVERNANCE REGULATIONGOVERNANCE REGULATIONSGROSS DOMESTIC PRODUCTGROUP OF SHAREHOLDERSHOLDING COMPANIESINCOMEINDEPENDENCE REQUIREMENTSINDEPENDENT AUDITINDEPENDENT DIRECTORSINDIVIDUALSINFORMATION SHARINGINSIDER TRADINGINSTITUTIONAL INVESTORSINSURANCEINSURANCE INDUSTRYINTERNAL CONTROLINTERNAL CONTROLSINTERNATIONAL ACCOUNTING STANDARDSINTERNATIONAL FINANCEINVESTOR CONFIDENCEINVESTOR PROTECTIONINVESTOR RELATIONJOINT STOCK COMPANIESJURISDICTIONJURISDICTIONSLARGE COMPANIESLEGAL FRAMEWORKLEGAL SYSTEMLIMITEDLIMITED LIABILITYLIMITED LIABILITY COMPANIESLIQUIDATIONMAJOR SHAREHOLDERMAJOR SHAREHOLDERSMAJORITY SHAREHOLDERMANAGERSMARKET CAPITALIZATIONMARKET EXPANSIONMARKET MANIPULATIONMARKET PARTICIPANTSMARKET PRICEMINORITY SHAREHOLDERMINORITY SHAREHOLDERSMUTUAL FUNDSOFFER PRICEOWNERSHIP STRUCTURESPARENT COMPANYPENSIONPENSION FUNDSPERSONSPORTFOLIOPRICE MOVEMENTSPRIVATE COMPANIESPRIVATE OWNERSHIPPRIVATIZATIONPROFESSIONAL ORGANIZATIONPROPERTY RIGHTSPROTECTING MINORITY SHAREHOLDERSPROTECTION OF MINORITY SHAREHOLDERSPROXYPUBLIC COMPANIESPUBLIC COMPANYPUBLIC OFFERINGSPUBLIC POLICYRAPID DEVELOPMENTRAPID GROWTHREAL ESTATEREGISTRATION REQUIREMENTSREGULATORSREGULATORY AUTHORITIESREGULATORY COMPLIANCEREGULATORY FRAMEWORKREGULATORY REQUIREMENTSRETIREMENT SAVINGSRISK MANAGEMENTSECURITIESSECURITIES ISSUANCESECURITIES LAWSECURITIES MARKETSECURITIES MARKETSSECURITIES REGULATORSHARE PRICESHAREHOLDERSHAREHOLDER AGREEMENTSHAREHOLDER AGREEMENTSSHAREHOLDER APPROVALSHAREHOLDER MEETINGSHAREHOLDER MEETINGSSHAREHOLDER RIGHTSSHAREHOLDER VOTINGSHAREHOLDERS MEETINGSSHAREHOLDERS RIGHTSSTAKEHOLDERSSTATE BANKSTOCK EXCHANGESTOCK EXCHANGESSTOCK MARKETSTOCK MARKETSSTOCKSSUBSIDIARIESSUBSIDIARYSUPERVISORY AGENCYTAKEOVERTENDER OFFERTENDER OFFERSTRANSACTION COSTSTURNOVERTURNOVER RATIOWEAK CORPORATE GOVERNANCE10.1596/20587