IFC, a member of the World Bank Group and the State Securities Commission of Vietnam (SSC) are working together to develop a corporate governance code for its listed companies. The IFC believes that the development of code will help Vietnamese companies attract more capital and make them more competitive in an environment of increasing regional economic integration.

IFC and SSC held a high-level workshop in Hanoi earlier this week to begin the code development process. Participants included representatives from SSC, the two stock exchanges HNX and HOSE, and other stakeholders. The IFC said the workshop provided an update on corporate governance codes from around the world and facilitated discussion on the relevant approach for Vietnam.

“The code aims to strengthen competitiveness of Vietnamese listed companies through adoption of internationally recognized corporate governance practices,” said Pham Hong Son, SSC Vice Chairman. “The code will guide listed companies on how to adopt best corporate governance practices that go beyond regulatory compliance for better capital-market integration with Association of Southeast Asian Nations (ASEAN) countries and globally.”

The World Bank Group’s experts shared examples of code development from Organization for Economic Cooperation and Development (OECD) countries and neighbouring nations such as China, Indonesia, Thailand, the Philippines, and Malaysia.

“Experience around the world has shown that corporate governance codes are benchmarks to help implement good corporate governance practices at the company level, which is key to sustainable private sector development,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Vietnam. “There is much to learn from the experiences of other markets globally as Vietnamese companies strive to improve their corporate governance."

The code is expected to be launched by mid-2017. IFC’s support for the development of a corporate governance code is part of its overall efforts to promote corporate governance in Vietnam in partnership with the State Secretariat for Economic Affairs of Switzerland (SECO).