02:21 (GMT +7) - Wednesday 18/07/2018

Vietnam Today

Institute of Directors launched to boost corporate governance

Released at: 15:13, 06/04/2018

Institute of Directors launched to boost corporate governance

Photo: Khanh Chi (VET)

Institute to improve competitiveness and sustainable development for businesses.

by Hong Nhung

The Vietnam Institute of Directors (VIOD), the first independent, private sector-led organization to promote corporate governance standards and best practices in the country, was launched on April 5 in Ho Chi Minh City with support from the International Finance Corporation (IFC), a member of the World Bank Group.

This significant market platform will help Vietnam advance its continued market reforms and underscore its commitment to good governance and responsible business.

As a social enterprise, the VIOD aims to advance board professionalism, promote business ethics and transparency, create a pool of independent directors, build a network to connect corporate leaders and stakeholders, and help companies inspire investor confidence.

The organization has been established as a result of the continued efforts of the Vietnam Corporate Governance Initiative - founded by IFC, the Ho Chi Minh Stock Exchange, and the Hanoi Stock Exchange, with strong support from the State Securities Commission (SSC) and Switzerland’s State Secretariat for Economic Affairs (SECO) - to enhance corporate governance practices in the business sector through the improved competence of board directors.

“This is an important milestone for Vietnam, which will help it address the urgent needs of the market in the context of regional integration and globalization,” said Mr. Tran Van Dung, Chairman of the SSC. “The VIOD will play a critical role in providing training, networking opportunities, and related support services to board directors by sharing international best practices on corporate governance, enabling them to spearhead the growth of their companies.”

The institute’s board of directors encompasses a diverse group of business leaders and advocates of good corporate governance in Vietnam. They include senior dignitaries from investment funds, well-known international legal and accounting firms, and independent board members of prominent companies in the market.

“The VIOD aims to equip company directors with the right knowledge and tools for them to serve more effectively on boards and improve the competitiveness of Vietnamese firms,” said Mr. Vu Quang Thinh, VIOD Chairman.

The VIOD will deliver workshops and board events on important governance topics to the market, mainly through its flagship Governance Excellence Programs. The first training event, the Audit Committee Master Program, will take place from May 30 to 31.

Speaking on behalf of SECO, Her Excellency Beatrice Maser Mallor, Ambassador of Switzerland to Vietnam, said: “Vietnam is a priority country of Switzerland’s economic development cooperation. We are committed to promoting the adoption of good governance practices among the country’s businesses, helping them become more competitive and sustainable, which in turn will drive the country’s economy.”

“With the increasing competition in today’s world, good corporate practices are vital to sustainable business growth,” said Mr. Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Laos. “The new institute will help raise governance standards and ensure there are accomplished and able directors sitting on the boards of Vietnamese companies. This will enable Vietnamese companies to better manage risks, improve profitability, and increase access to capital.”

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