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How to improve corporate governance
The Viet Nam Association of Corporate Directors was established pursuant to the Decision No 745/QD/BNV, issued July 4, 2007, by the Ministry of Home Affairs. The association’s first congress will be held today in the capital city. Thu Tra spoke to Mai Huy Tan, general director of the Duc-Viet joint venture and a member of the association’s executive board, on the group’s plan to support Vietnamese enterprises to improve their capacity and professionalism in corporate governance and enhance their competitiveness on domestic and international markets.
What is the association’s mission and how will you fulfill it?
Our association was set up to develop principles and standards of corporate governance in Vietnam in line with international law and practice, and to make a positive contribution to improving the effectiveness of corporate governance in the context of international integration.
Our association also aims to compile information and set up forums for sharing expertise and develop skills in corporate management in the hopes of incrementally creating a cadre of superior directors, with qualification and competence that make them suitable as representatives for owners of enterprises and economic organisations.
In addition to proposing Government policies on corporate management, the asociation was founded to enhance the competitiveness of enterprises and of the Vietnamese economy in general as well as to share opportunities among corporate directors, both Vietnamese and international.
In the short term, the association will continue to admit members from all economic sectors including finance, banking, IT, investment consulting, tourism and services, construction, agriculture, fisheries and forestry, energy and infrastructure construction. Our association plans to expand the international relationship and build up the entrepreneurial culture in Vietnam.
What qualifications does an enterprise need to meet to join the association?
The association welcomes all enterprises and entrepreneurs who want to become members and accept our regulations. Foreign CEOs can also become associate members.
All members will receive valuable knowledge about corporate governance to improve their own capacities in this area. Moreover, they will receive tips on protecting their rights and legitimate interests, receive consultations, and have chances to expand international relationships.
What are the greatest challenges facing fledging businesses during integration?
In the integration context, I think, the Vietnamese business community is eyeing new opportunities, but they also have to cope with such challenges as inadequate management skill and experience compared to foreign firms, poor competitiveness, insufficient co-operation among domestic businesses, modest application of science and technology, lack of foreign language skills, and over-regulation and bureaucracy.
As the general director of Duc-Viet, what do you see as the most likely areas of co-operation in governance and management between Vietnamese and foreign firms?
As director of joint venture between Vietnam and Germany, I found there’s a huge potential to establish joint ventures between Vietnamese and foreign enterprises. These joint ventures, however, need clear allocations of responsibility and close co-operation in management between Vietnamese and foreign CEOs.
What do you think now that the Government has given the green light for domestic companies to hire foreign CEOs?
I think it’s the right move and in line with development trends. However, I suggest that Vietnamese enterprises should think carefully if their companies really need foreign CEOs. Local businesses should decide whether foreign CEOs have the competence and capacity to meet their development demands.
In my opinion, a Vietnamese enterprise shouldn’t hire a foreign CEO for the mere purpose of promoting themselves.
Viet Nam News
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