Corporate Governance Scorecard of Hoang Anh Gia Lai Group
CORPORATE GOVERNANCE SCORECARD
OF HOANG ANH GIA LAI GROUP
I. Introduction
From 1986 until now and more than 25 years from DOI MOI, the policy of multi-sector economy has implemented, Vietnamese enterprises have formed and developed very fast, very strong in Vietnam, widely available across the country and in all economic sectors. With the rapid growth in the number and scale of development, corporate governance (CG) becomes a factor attracting huge attention from the business and corporate law makers. Business environment is being improved leading to the corporate governance framework also builds complete. Vietnam’s CG has been recognized by the world is consistent with the requirements and principles but common CG activities in Vietnam is still a lot of poor and uneven quality of CG. According to an investigation by the Securities and Exchange Commission (SSC) in cooperation with International Financial Institutions (IFC) performance scorecard CG, the survey of 100 companies listed on the two exchanges HCM City Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) (80 enterprises on HOSE, 20 state-owned enterprises on the HNX) representing 80% of total market capitalization transactions. The results are evaluated based on data from 2011, shows that the average score of all companies was only 42.5%. Meanwhile, in the two previous surveys, the average CG of listed companies in Vietnam reached 43.9 per cent in 2009 and 44.7% in 2010. Enterprises with the lowest score was only 17.4% and the highest was 57.5%. This shows that Vietnamese enterprises are still very "new" to the concept of "corporate governance". Even many business leaders are confused between corporate governance and operational management.
Good CG is extremely important in creating harmonious relationships between board of directors (BODs), board of managements (BOMs), shareholders and other stakeholders with interests in the enterprise, so that will created along with the
OF HOANG ANH GIA LAI GROUP
I. Introduction
From 1986 until now and more than 25 years from DOI MOI, the policy of multi-sector economy has implemented, Vietnamese enterprises have formed and developed very fast, very strong in Vietnam, widely available across the country and in all economic sectors. With the rapid growth in the number and scale of development, corporate governance (CG) becomes a factor attracting huge attention from the business and corporate law makers. Business environment is being improved leading to the corporate governance framework also builds complete. Vietnam’s CG has been recognized by the world is consistent with the requirements and principles but common CG activities in Vietnam is still a lot of poor and uneven quality of CG. According to an investigation by the Securities and Exchange Commission (SSC) in cooperation with International Financial Institutions (IFC) performance scorecard CG, the survey of 100 companies listed on the two exchanges HCM City Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) (80 enterprises on HOSE, 20 state-owned enterprises on the HNX) representing 80% of total market capitalization transactions. The results are evaluated based on data from 2011, shows that the average score of all companies was only 42.5%. Meanwhile, in the two previous surveys, the average CG of listed companies in Vietnam reached 43.9 per cent in 2009 and 44.7% in 2010. Enterprises with the lowest score was only 17.4% and the highest was 57.5%. This shows that Vietnamese enterprises are still very "new" to the concept of "corporate governance". Even many business leaders are confused between corporate governance and operational management.
Good CG is extremely important in creating harmonious relationships between board of directors (BODs), board of managements (BOMs), shareholders and other stakeholders with interests in the enterprise, so that will created along with the