AGMs seen as bigger test of investor trust

Transparency, governance risk mitigation, and the quality of board accountability are all under closer scrutiny, sending a clear signal about market standards and playing a vital role in attracting international capital flows.

- By Hazy Tran

Shareholders are better equipped to understand the business accurately with a proper assessment

Listed companies are entering an intensive preparation phase for the upcoming AGM season, with April marking a peak for organisation and shareholder engagement.

On April 7, FTSE Russell will announce the results of its interim market classification review. Should Vietnam be confirmed for an upgrade to emerging market status in September, this would mark a significant turning point for the stock market. In this context, the quality of listed companies will serve as a critical barometer.

A notable development this AGM season is the emergence of a more stringent, internationally aligned legal framework, reflected in amendments to the Law on Enterprises and various decrees.

Le Trung Hai, deputy head of the Public Company Supervision Department at the State Securities Commission of Vietnam (SSC), noted that a key highlight of this year’s AGM season is the introduction of the beneficial owner concept.

Regulations governing independent board members have been revised to strengthen their supervisory independence. Independent directors are now required to participate in evaluating the performance of the board of directors and report their findings, thereby improving overall corporate governance effectiveness.