PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo - Stock code DPM) has just won the Top 5 Public Listed Companies (PLC) award for best corporate governance in the mid-capitalized group (Midcap). This is one of the three important awards of the PLC 2020 poll held by the Ho Chi Minh City Stock Exchange Authority.
On December 4, 2020, Mr. Louis T. Nguyen - Independent Member of the Board of Directors, on behalf of PVFCCo, attended the Honoring Ceremony and received the award from the Organizing Committee (OC). PVFCCo has passed rounds of vote and ratification of OC and won the Top 5 award for the category of PLC achieving highest management score in the Midcap group. PVFCCo is also one of the Top 30 Midcap companies featuring the best Annual Report (Annual Report) 2019.
In this year's poll, upon the preliminary round, the top 60 enterprises were qualified for the final round, classified according to various capitalized groups. In the final round, the jury board gave marked to those PLCs to find out 5 enterprises of each group gaining highest CG score and 1 enterprise making outstanding improvement to name the winning.
Mr. Louis T. Nguyen - Independent Member of the BOD, receives the award for PVFCCo
According to the OC, in addition to those compulsory points of an Annual report, during the assessment, the Jury Board considered even those points that are not required. This encourages businesses not only to strictly and fully comply with the law, but also to apply the principles of management following international practices and at a higher level than the law requires.
In this year, the set of corporate management criteria keeps being worked out based on the corporate management principles of the Organization for Economic Co-operation and Development (OECD) and the ASEAN, assessed by an independent third party, then ratified by the top 4 auditing firms (Big 4), namely Deloitte, Ernst & Young, KPMG and PwC.
According to the OC, although the current CG ranking in Vietnam has made a big progress, it is still quite low as compared to the common level in the region and quite far behind of the best models in the world. One of the most important points of corporate management is to create a Board of Directors (BOD) of high criticism that could maintain a balance between risks and benefits. Good corporate management group include enterprises featuring a Board of Directors with independent members who take the role of practical critics instead of perfunctory. In fact, well-managed enterprises could enhance their competitiveness while minimize conflicts and internal disputes. This is very obvious in the context of crisis caused by the Covid-19 pandemic, the group of PLCs of high management scores are those that have well proved a good withstanding, risk management, smooth operation, survival of crisis and quick recover.