An investor looks at trading figures at the Vietcombank Securities Limited Company (Photo: VNA)Hanoi (VNA) – Listed companies accountfor just 0.1 percent of the total number of operating enterprises and see poorcorporate administration, an annual business report released by the Vietnam Chamber of Commerce and Industry (VCCI)showed.
By December 15, 2016, Vietnam had close to 1,830 public companies, with 693firms listed on the Hanoi Stock Exchange (HNX) and the Ho Chi Minh StockExchange (HOSE) and 391 others trading shares on the Unlisted Public Company (UPCoM)market.
According to the report, with the encouragementof management agencies, listed companies have paid attention to corporateadministration, but they still failed to meet international standards.
Vu Chi Dung, Director of the InternationalCooperation Department of the State Securities Commission (SSC), saidVietnamese public companies, particularly small- andmedium-sized firms, lack knowledge and expertise in corporate management and theyjust strive to satisfy minimum requirements as regulated.
The Finance Ministry’s Circular No 121/2012/TT-BTC classifies publiccompanies and listed enterprises to set out higher standards for corporateadministration. However, these regulations are seen as recommendations rather thanobligations.
SSC Chairman Vu Bang said his agency hasimplemented a wide range of measures to enhance business management in listedcompanies. The Finance Ministry and the SSC have submitted to the Government adecree on corporate administration, he added.
On April 20, the SSC and the InternationalFinance Corporate (IFC) established a national advisory council on companymanagement, which is expected to issue specific regulations for businesses tofollow.-VNA
VNA
