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Banking & Finance

Novaland shares again on Vietnam Sustainability Index

Released at: 14:50, 25/07/2019

Novaland shares again on Vietnam Sustainability Index

Photo: Novaland

Property developer sees its shares again named among listed companies developing sustainably.

by Hung Cao

Vietnamese property developer the Novaland Group (Stock code: NVL) recently announced its shares were again named in the Vietnam Sustainability Index (VNSI) released in July.

In order to be listed on the VNSI, companies’ shares must be among the VN100; the 100 largest companies listed on the Ho Chi Minh Stock Exchange (HoSE). It is a capitalization-weighted index that constitutes the shares of two other indexes, the VN30 and VNMidcap.

Compiled by HoSE, the German cooperation agency GIZ, and the State Securities Commission of Vietnam (SSC), the VNSI is a cap-weighted, free float-adjusted index consisting of listed companies with the highest scores in sustainability and is announced every year in July.

It is designed as a reference tool or an underlying factor for the development of future financial instruments such as ETF and index derivatives.

Its targets include standardizing sustainable development for listed companies, supporting organizations and individuals in identifying good companies for investment, boosting the sustainable development of the economy, and supplying a new tool to foster the development of stock markets and the economy.

Companies are carefully selected by HoSE, which asks a list of questions about stable development, with those receiving high scores making the list.

Building a sustainable development index is one of the tasks related to the development of innovative financial products for the “green capital market”, which was mentioned in the Action Plan for the finance sector in the implementation of the National Strategy on Green Growth for the 2014-2020 period (according to Decision No. 2183 from the Ministry of Finance in 2015).

Novaland is a major developer based in Ho Chi Minh City. Last year it entered the hospitality market with NovaTourism, launching three main product brands: NovaHills, NovaBeach, and NovaWorld, in many tourism destinations in the country.

It has won multiple property industry prizes and was named one of the best companies to work for in the country by HR Asia magazine, one of Asia’s leading human resources publications.

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