In Hanoi:
Nguyen Van Lan
Phone: +84 4 3 824 7892
E-mail: NLan@ifc.org

In Hong Kong:
Andrew Mak
Phone: +852 2509 8110
E-mail: AMak@ifc.org


Hanoi, Vietnam, October 24, 2008—IFC, a member of the World Bank Group, today launched a program that will improve corporate governance practices in Vietnam’s emerging corporate sector. Through this initiative, IFC, in partnership with the government and local companies, will strive to create a culture of good governance that will strengthen investor confidence and build a stronger, more competitive private sector.

The program will collaborate with key government agencies, including the State Securities Commission, the State Bank of Vietnam, and the Central Institute for Economic Management, to review and improve existing policies, laws, and regulations. It will also work with companies to implement good governance standards and assist banks and institutional investors, including the State Capital Investment Corporation, with assessing their clients’ corporate governance practices to reduce portfolio risk.

Tran Xuan Ha, Vice Minister of Finance, said, “Enterprise growth, along with the robust expansion of the stock market, has pushed the agenda for sound corporate governance standards and practices. We recognize the urgency of this initiative and are pleased to be partnering with IFC.”

Ha’s endorsement was echoed by Vu Bang, Chairman of the State Securities Commission, who added, “We believe this program is key to strengthening Vietnam’s corporate governance practices.” He also noted that the impact of the program would be particularly beneficial for publicly-listed companies. “Raising corporate governance standards will improve operations and increase transparency. This will make publicly-listed companies more attractive to outside capital and investment.”

The program will also focus on educating the general public on the value of good corporate governance by employing national campaigns to raise awareness of the rights and responsibilities of shareholders and management. This will include training journalists on corporate governance issues and working with educational institutions to develop courses that provide future business leaders with requisite knowledge and skills.  

Speaking from an investor’s perspective, Dominic Scriven, Director of Dragon Capital, noted, “For years, it has been clear that governance—the responsibility of stakeholders toward each other—has been a key determinant of sustainable economic growth. In times of global stress, such as now, the need for good corporate governance is much greater. I am delighted that IFC is implementing a governance program in Vietnam.”

Lars Thunell, IFC Executive Vice President and CEO, said, “We are pleased to work with our government counterparts to help improve practices in Vietnam’s emerging corporate sector. IFC believes that sound corporate governance contributes to sustainable economic development by enhancing company value and long-term prosperity.”

This is Thunell’s second official visit to Vietnam in two years, which underscores IFC’s commitment to private sector development in the country. During the visit, Thunell will meet with senior government officials and key players in local infrastructure to discuss how IFC can support sector development, which is critical for maintaining regional and international export competitiveness. Thunell will also meet with IFC clients in the financial sector, another priority area in Vietnam.

IFC will implement the Vietnam Corporate Governance program in partnership with and with funding from MPDF, a private sector development initiative in Cambodia, Lao PDR, and Vietnam managed by IFC, whose donors are Australia, Canada, Finland, IFC, Ireland, Japan, New Zealand, the Netherlands, Norway, Sweden, and Switzerland.

About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34% increase over the previous year. For more information, visit www.ifc.org.