HCM City (VNA) – Governing forsustainability, a hot issue in Vietnamese business activities amid the processof international economic integration, was discussed at a forum in Ho Chi MinhCity on November 7.

The event was held by the State SecuritiesCommission of Vietnam (SSC), the Ho Chi Minh Stock Exchange, the Hanoi StockExchange, and the International Finance Corporation (IFC).

SSC Vice Chairman Pham Hong Son said thatVietnam aspires to develop fast and sustainably towards becoming anupper-middle-income country. To realise this goal, many organisations andbusinesses have paid attention to governing for sustainability, while stillbalancing environmental and social aspects.

Amar Gill, Managing Director and co-head ofInvestment Stewardship at APAC BlackRock, said governing for sustainability isa long-term issue and such, directors’ boards need to be aware of this issue tomake long-term management strategies.

Meanwhile, Dominic Scriven, Executive Chairmanof Dragon Capital Group Ltd., said that governing for sustainability benefits notonly enterprises, but also other relevant parties and consumers. In manycountries, there are companies unaware of the commitments needed forsustainability principles, and when potential risks become a reality, they willhave a great toll on their prestige and time, he said.

Scriven added that governing for sustainabilityrequires not only verbal commitments but also adequate awareness and actionplans. Directors’ boards play a crucial role in governing for sustainabilityand they require the participation of independent and gender-balanced members,which is also a factor of sustainable development, he added.

Kyle Kelhofer, IFC Country Manager for Vietnam,Cambodia, and Laos, said capital markets have paid increasing attention to theways boards of directors deal with issues of environmental and social impacts.

The environment-, society-, andgovernance-related practices have become an important factor in theirinvestment decisions, he said, noting that with a clear connection between the propergovernance of environmental and social impacts and long-term businessefficiency, the companies committed to good sustainability practices will havemore of an advantage in attracting attention from investors.

According to the ASEAN Corporate GovernanceScorecard 2017-2018, the average corporate governance in Vietnam scores 41.3points, compared to the ASEAN average of 71.01 points, out of the maximum 130points. The country’s average score has increased by some 9 percent annuallysince 2012.–VNA