Việt Nam launches Corporate Governance Code 2026 aligned with G20/OECD principles

Việt Nam launches Corporate Governance Code 2026 aligned with G20/OECD principles

Việt Nam has launched a new corporate governance code aligned with G20/OECD principles to raise transparency, board accountability and ESG standards across listed and public companies.

The State Securities Commission of Vietnam on Tuesday announces the Vietnam Corporate Governance Code 2026. — Photo vietnamplus.vn

Việt Nam has launched an updated corporate governance framework aimed at lifting standards among listed and public companies and aligning the market more closely with international practice as investor expectations continue to rise.

The State Securities Commission of Vietnam (SSC), in partnership with the International Finance Corporation (IFC) and with support from the Swiss State Secretariat for Economic Affairs (SECO), on Tuesday unveiled the Vietnam Corporate Governance Code 2026 (CG Code 2026).

The updated code reflects recent changes in Việt Nam’s legal framework and directly references the G20/OECD Corporate Governance Principles issued in 2023, alongside good practices drawn from advanced and ASEAN markets.

One notable change is the renaming of the document to the Vietnam Corporate Governance Code, replacing its former title that referred to best practices, in line with international naming conventions.

Nguyễn Hoàng Dương, SSC vice chairman, said that after 30 years of development, Việt Nam’s stock market has become an important medium- and long-term capital channel for the economy. As market integration deepens, improving corporate governance is seen as a key pillar for enhancing transparency, sustainability and the overall attractiveness of the capital market.

According to the ASEAN Corporate Governance Scorecard (ACGS), governance practices in Việt Nam still require improvement, particularly in board independence and diversity, the protection of minority shareholders and the effectiveness of board committees.

The CG Code 2026 adopts a principles-based approach built around nine core principles, placing the board of directors at the centre of the governance system. It emphasises the board’s strategic role, a clearer separation between management and supervision, stronger independence and diversity in skills, experience and gender among board members and improved effectiveness of specialised committees, especially the audit committee.

The code also strengthens recommendations on risk management, internal controls, transparency and the protection of the lawful rights and interests of shareholders.

IFC said corporate governance is a key criterion in its investment decisions, noting that companies with higher governance standards tend to have more effective boards and management, better decision-making, stronger risk control and improved overall performance.

Sustainability and ESG issues are more deeply integrated into the new code, including climate governance as well as environmental and social responsibilities, reflecting global trends towards responsible and sustainable business practices.

The code will be implemented under a comply or explain approach, initially applied to listed companies before being expanded to public companies. Firms are encouraged to adopt the code immediately, disclose their level of compliance and report governance practices annually.

SSC said it will coordinate with stock exchanges to consider applying the code as a priority criterion when selecting companies for index baskets, helping to form a group of high-governance assets that meet regional and international standards.

Sibylle Bachmann, head of SECO in Việt Nam, said the updated code is timely as global investor expectations for transparency, accountability and sustainability continue to rise, adding that strong corporate governance is fundamental to attracting long-term investment and building trust among investors, employees and society. 

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