Hanoi, Vietnam, August 15, 2016
—IFC, a member of the World Bank Group, is working with private equity firm Vietnam Investments Group (VI Group) to improve corporate governance practices among its portfolio companies. Good governance boosts company performance, increases access to finance, and fosters sustained economic growth.
More than 20 board members and senior investment and portfolio executives attended a corporate governance workshop hosted by IFC and VI Group earlier this month in Ho Chi Minh City. IFC experts shared with the participants best practices on creating more effective boards and control environments to raise transparency and accountability.
“Good corporate governance can help increase shareholder value. We are working with our investment client, VI Group, to further improve governance practices among its portfolio companies to further raise their performance and sustainability levels,” said Chris Razook, IFC Corporate Governance Lead for East Asia and the Pacific.
The workshop also provided an update on the latest corporate governance requirements of Vietnam’s 2014 Law on Enterprises, which took effect in July last year
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The law clearly defines, the role of an independent director in a company board and states that subject to requirements, Vietnamese joint-stock companies are allowed to set up audit committees based on international practices without having a supervisory board.
“We begin working with our portfolio companies at an early stage to add value to them for the long term,” said David Do, Managing Director of VI Group, which mainly invests in Vietnamese high-growth businesses in consumer goods and services, manufacturing
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and logistics. “With the latest changes on the Law on Enterprises, we are keen to work with IFC to help our portfolio companies establish audit committees for their boards and adopt other effective corporate governance practices.”
IFC has been working with the Vietnamese government since 2007 to further improve the country’s regulations and investment climate, raise public awareness of corporate governance, build the capacity of its partners, and provide governance advice to individual companies. IFC’s Corporate Governance Program in Vietnam is funded by the State Secretariat for Economic Affairs of Switzerland.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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