Creative Approaches Towards Development of Computing and Multidisciplinary IT Solutions for Society

29Corporate Governance in Vietnam: Case from Private Sector

Jyotsna Ghildiyal Bijalwan

School of Business, British University Vietnam, Hanoi, Vietnam

Abstract

The Vietnamese economy is moving at a faster pace towards achieving its goal of sustainable economic growth. Although the country’s corporate governance has significantly evolved over time, there are still some stumbling blocks in achieving its goal. As Vietnam is one of the strongest emerging economies in East Asia, the Vietnamese government’s constant endeavor is to raise corporate governance standards at par with globally accepted norms. The uplifting of corporate governance mechanisms has also become significant in attracting foreign direct investment. The government is committed to providing a safer and more stable business environment in the corporate sector. In efforts to create a strong capital market, the protection of investors’ interests is vital for any government. Strong capital markets and corporate governance frameworks are insignificant without protecting investors’ interests. The country must have a sound governance framework for share companies that can ensure strong regulation of investor protection. The issues of the corporate sector, such as agency problems, CEO duality, independence of directors, transparency in financial matters, and poor shareholders’ rights, are addressed by The Securities Commission of Vietnam and the Law of Enterprises 2020 has provisions for corporate governance in Vietnam. ...