Good corporate governance helps companies improve performance, increase access to financing, and strengthen long-term sustainability. Numerous studies have confirmed that firms with strong corporate governance scores show better operational performance and are typically less risky. In addition, better corporate governance practices can achieve higher levels of investor trust and confidence leading to more robust economic development.

In summary, corporate governance is proven to help companies achieve the following:

• Risk mitigation• Reduce volatility of cash flows

• Enhanced reputation

• Heightened operational performance

• Boost employee morale and productivity

• Streamline and optimize operation

• Improve customer service and sales

• Lower cost of capital• Increased access to financing

• Improved stock performance and valuation

• increased volume of cross-border investments

• Better stakeholder relations

• Increase transparency and information flow

Good corporate governance has significantly become more and more important to Vietnamese corporate sector. Many local companies have embraced good governance practices by putting in place well-structured boards, sound risk management and control frameworks and strong disclosure regimes, among other changes and reaped the benefits – including improved performance, mitigated risk events, better access to capital and improved reputation.