Forum discuss ways to enhance corporate governance

Friday, 2017-04-21 05:35:25
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At the forum (Credit: VNA)
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NDO/VNA – The Vietnam Chamber of Commerce and Industry (VCCI) in conjunction with the State Security Commission hosted a corporate business forum in Hanoi on April 21 to announce an annual report on Vietnamese businesses in 2017.

General Secretary of VCCI, Pham Thi Thu Hang, who is also Director of the Institute of Business Development, said the report was one of the important documents which help the public gain insights into Vietnamese enterprise development.

It gives an overview of Vietnamese businesses’ real development and capacity, thus proposing measures to improve their competitiveness, she noted.

According to the report, Vietnam recorded a strong increase in the number of new enterprises in 2007-2016, with over 802,000, lifting the total number of businesses in the country to more than 1 million.

Notably, the country had over 1000 firms registered for establishment in 2016.

Enterprises that declared a stop to operations or dissolved in 2016 decreased by 9.5% against the previous year.

However, Hang also noted that the quality and efficiency of Vietnamese enterprises remain limited due to ineffective governance capacity, especially corporate governance.

According to VCCI Vice Chairman, Doan Duy Khuong the practice of convenience-oriented management with the shortage of corporate governance-related factors restricted enterprise competitiveness, resulting in a slow response to changes in thebusiness climate, especially in the context of the financial crisis.

He also underlined the need to improve corporate governance capacity, saying that this is a decisive factor to help enterprises narrow gaps and keep pace with firms in regional countries.

Participants at the forum discussed solutions to the issues, saying that it is necessary to focus on applying international financial statement-related accounting standards, honouring enterprises with good performance, and enhancing the role of business associations.

The above-mentioned efforts have been promoted by the State Security Commission in connection with the International Finance Corporate (IFC), the VCCI and relevant agencies through the Vietnam Corporate Governance Initiative (VCGI), Khuong said.