Private sector framework helping businesses think big

Private sector framework helping businesses think big

Vietnam’s stock market, with 1,740 public companies, is emerging as the locomotive realising the spirit of Resolution No.68-NQ/TW, paving the way for the private sector to rise.

On June 6, a handbook on practical lessons in modern corporate governance was launched by the Vietnam Institute of Directors (VIOD) with support from the International Finance Corporation, serving as a valuable resource for corporate leaders seeking to use governance as a capital conduit and strategic lever in the new growth phase.

Phan Le Thanh Long, VIOD board member and CEO, declared that this year will be a golden gate for businesses to transform strategies and elevate governance practices.

“Businesses need to focus on strengthening core elements of corporate governance, such as protecting shareholder rights, ensuring equitable treatment, publishing sustainable development reports in accordance with international standards, disclosing climate governance data, quantifying environmental, social, and governance goals, and measuring, evaluating, and publishing implementation results,” said Long.

Dr. Bui Thanh Minh, deputy office director at the Private Economic Development Research Department, said that listed enterprises and public companies are the biggest beneficiaries of Resolution 68.

“Listed companies and public firms stand before a significant opportunity to transform their growth model. They also enjoy distinct advantages in accessing capital and financial markets, as Resolution 68 prioritises the development of a professional capital market and highlights the goal of upgrading Vietnam’s stock market classification,” he said. “This opens up broader access to institutional investors and international investment funds, particularly as the business environment continues to improve.”

In this context, Minh stated that corporate governance serves as a strategic lever for businesses to seize institutional opportunities, grow rapidly and sustainably, and integrate more deeply into the market with the participation of global funds.

“An effective board of directors that operates according to international standards not only ensures proper oversight and guidance but also builds investor and stakeholder confidence. Good corporate governance helps enterprises make better decisions, manage risks more effectively, and access long-term capital more easily. This is particularly crucial when government policy is now rolling out the red carpet for the private sector,” added Minh.

Ha Thu Thanh, chairwoman of the VIOD, stated that businesses must also focus on improving institutional frameworks and modernising corporate governance in line with international standards to ensure transparency and efficiency.

“The specific goals should include refining the corporate governance model; raising awareness among boards of directors and executive teams; fostering a culture of transparent governance; and meeting the expectations of investors, partners, and the market,” she said. “Rapid development is essential, but it must be sustainable, and sustainable growth is impossible without modern corporate governance.”

From the perspective of a large enterprise currently listed on the stock exchange, Nguyen Thi Tra My, vice chairwoman and CEO of The PAN Group, as well as chairwoman of Vinaseed’s board of directors, said that the agriculture and food sectors are extremely challenging for investors, as today’s planting does not guarantee tomorrow’s harvest.

“These sectors require serious investment in research and development and long-term sustainability. Without it, there’s nothing to export,” she explained. “Therefore, when confidence is in place, it drives us to continue investing in a more systematic, professional, and ambitious way. Our strategy will now be long-term, spanning 5-10 years, and enduring, no longer short-term as before.”

Representing the foreign investor community, Vu Quang Thinh, CEO of Dynam Capital, stated that enterprises must invest more deeply in science, technology, and new industries, developing their internal capabilities to improve labour productivity and increase the scale of merger and acquisition activity.

“This entire reform process will help create an improved legal framework that supports corporate governance activities,” Thinh noted.

Faced with the challenge of finding specific initiatives and swiftly implementing action plans to seize the opportunities created by Resolution 68 for listed companies and public firms, Pham Thi Thuy Linh, general director of the Securities Market Development Department at the State Securities Commission (SSC), pointed out the roadmap for effectively implementing Resolution 68.

“On the part of the SSC, we have drafted a decree for submission to the government, which proposes reducing the number of securities-related administrative procedures from 93 to around 63. We are also streamlining individual procedures by cutting down paperwork. This creates good conditions for enterprises to access capital conveniently through listings and transactions,” she added.

VIR