Corporate Governance - International Experience and Applying for Vietnamese Banking System

16/08/2013 17:30

The international seminar was co-hosted by the VNU University of Economics and Business and the Deposit Insurance of Vietnam on Aug 13, 2013 at the International Conference Center to release the initial findings of the research of Vietnam National University themed: “Building Corporate Governance Index of Vietnamese Commercial Banks” led by Dr. Tran Thi Thanh Tu.

The seminar was participated by 150 representatives including pratical experts, policy experts, local and foreign banking researchers from the State Bank of Vietnam, Ministry of Finance, Government Office, NationalFinancial Supervisory Commission, Deposit Insurance of Vietnam, universities, institutes, executives of commercial banks, World Bank, international financial institutions and international development organizations operating in Vietnam.

Opening the seminar, Dr. Bui Khac Son, General Director of Deposit Insurance of Vietnam, underlined the role of corporate governance for the sustainable development of the banking, especially in the context of economic recession, and suggested issues for people attending the seminar to discuss. The key speakers presented their research findings.

Dr. Bui Khac Son - Genenal Director of DIV - giving opening speech

Mr. Sameer Goyal, WorldBank country co-ordinator for financial private sector development in Southeast Asia and the Pacific, made a presentation on the topic “Strengthening Corporate Governance - International Lessions in Building Corporate Governance Index (CGI)”. From the study on corporate governance indexes of 8 countries, namely Brazil, China, Italy, Mexico, Peru, Turkey, South Africa and South Korea, the World Bank specialist identified 8 steps to sucessfully build CGI. These valuable lessions are practically useful for the team when building CGI for Vietnamese commercial banks.

Mr. Sameer Goyal - World Bank specialist - presenting study on international lessions in corporate governance

The second study themed “Lessions of Building and Applying Taiwanese Corporate Governance Scoring Index at Hanoi Stock Exchange (HNX)” was led by Dr. Vu Thi Thuy Nga, Director of Listing, HNX. The presentation introduced the practice of aplying scoring card to assess corporate governance of HNX listed companies. Dr. Nga also identified difficulties and challenges as HNX built and implement the Information Disclosure and Transparency Rankings System (IDTRS) for information disclosure ranking program in order to assess the information disclosure process and transparency of 393 listed companies.

In the study “Corporate Governance in Southeast Asian Banks: Solutions for Vietnam”, Dr. Can Van Luc, a banking specialist, Director of Training Center under the Bank for Investment and Development (BIDV), generalized and integrated international practices of corporate governance of Southeast Asian banks and gave 8 recommendations for Vietnamese banking system.

(From left: Dr. Tran Thi Thanh Tu, Dr. Can Van Luc making presentations at the workshop)

Dr. Tran Thi Thanh Tu, Associate Dean of Faculty of Finance and Banking (VNU University of Economics and Business) represented her team to present the report entitled “Effects of Corporate Governance on the Banks’ Performances - Verifying Analysis at Vietnamese Banks”. This initial finding is the result of collaborative research between the VNU University of Economics and Business and the Deposit Insurance of Vietnam. The study showed the positive relation between corporate governance and the performances of Vietnamese banks, leading to the policy implications for improving corporate governance of Vietnamese commercial banks. The team recommended the regulators, investors and senior executives of commercial banks to use CGI to measure corporate governance.

The seminar also attracted the attendance of several critics, such as Dr. Luu Bich Ho - former Director of Development Strategy Institute; Dr. Dương Thu Huong - former Deputy Governor of the State Bank of Vietnam; Dr. Nguyen Son - Director of Market Development, State Security Commission of Vietnam; Dr. Nguyen Thi Thanh Huong - Chief Editor of the Banking Magazine under the State Bank of Vietnam; Dr. Trinh Quang Anh - Director of Economics Studies under the Vietnam Investment Development Group; Dr. Dao Thi Thanh Binh - Associate Dean of Faculty of Business Administration and Tourism (Hanoi University)...

Assoc.Prof.Dr. Nguyen Hong Son - Rector of VNU University of Economics and Business - summerizing the seminar

Summarizing the seminar, Assoc.Prof.Dr. Nguyen Hong Son - Rector of VNU University of Economics and Business - underlined the importance of the findings of intensive studies in banking and finance sector and hoped that these findings would become valuable references for managing and regulating the finance and banking sector. Assoc.Prof.Dr. Nguyen Hong Son thanked collaboration of strategic parter Deposite Insurance of Vietnam for supporting the research and training of VNU University of Economics and Business during the last two year.

The seminar is appraised by economists, lecturers and researchers as a success in terms of scientific content, vitality of the studied issues and suggestions for further research. The seminar contributes to build prestige for VNU University of Economics and Business on its way to become a research-oriented school at national and regional levels.

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Nguyen Hai Ha - Tran Thu Loan