On December 15, 2023, during the 16th Vietnam Listed Company Award Ceremony – 2023 Vietnam Listed Company Conference, Nafoods Group (HOSE: NAF) was honored to be recognized among the Top 5 Companies with the Best Corporate Governance in 2023 – Small Capitalization Group.
The Vietnam Listed Company Awards (VLCA) is an extension of Vietnam Annual Report Awards, organized by the Ho Chi Minh Stock Exchange (HOSE), Hanoi Stock Exchange (HNX), and Investment Newspaper. It is annually sponsored by Dragon Capital and supported by professional partners such as IFC, ACCA, and leading audit firms including Deloitte, EY, KPMG, PwC. The awards aim to encourage listed companies to enhance their professionalism, transparency, and communication with investors, focusing on effective management and sustainable development.
The Award for Corporate Governance category experienced the careful choice of 104 companies recognized for having exemplary corporate governance practices. These companies were further categorized based on their market capitalization. Particularly, 34 companies fell into the large capitalization group, 34 in the medium capitalization group, and 36 in the small capitalization group. From this pool, the Evaluation Council identified the top 25 outstanding companies to be honored with awards.
The evaluation criteria were based on the Vietnam Corporate Governance Principles, ASEAN Corporate Governance Scorecard, and G20/OECD Principles of Corporate Governance. In 20223, they were continually updated in 2023, incorporating 18 additional questions covering shareholder meetings, improving diversity in board member nominations, and sustainability and resilience development. The aspect of sustainable and resilient development is an essential component in the G20/OECD Principles of Corporate Governance issued this year, alongside four other aspects, including shareholder rights, fair treatment among shareholders, disclosure and transparency, and the responsibility of the board of directors.
According to experts’ assessments, in the context of continuously improving legal frameworks and a business environment with various fluctuations, effective corporate governance is seen as a mechanism to guide and control the sustainable development and optimize the operational efficiency of businesses. Additionally, research by experts also indicates that companies with good corporate governance quality often achieve better financial performance (reflected in higher ROA & ROE) and are usually better priced in the market (with higher P/B ratios).
In addition, the requirements for Environmental and Social Governance (E&S), as well as the increasing trend of investment focus on sustainable development by global investment organizations, demand that companies increasingly emphasize and regularly improve the quality of corporate governance. This includes effective management of sustainability issues related to the environment, society, and protection of the interests of stakeholders.
Moreover, Nafoods Group has consistently adhered to legal regulations regarding corporate governance. The company has actively improved governance quality by applying and closely aligning with the best practice principles for public companies in Vietnam, as advised by the State Securities Commission of Vietnam and the International Finance Corporation (IFC).
In terms of sustainable development and environmental and social responsibility, Nafoods, operating in the agricultural sector, prioritizes ensuring that the operations do not harm the environment and communities. The company provides safe products and evaluates environmental and social impacts promptly to implement effective risk management and control measures. Nafoods is progressively adopting circular economy practices, transforming waste into production inputs in harmony with natural cycles, contributing to resource efficiency and climate change adaptation. Also, we are actively implementing community development programs and contributing to the overall economic development of the local area.
Despite facing challenges such as natural disasters, pandemics, political instability, and intense competition, Nafoods has maintained the trust and support of customers, suppliers, and farmers, achieving commendable results. In the first nine months of 2023, the company’s net revenue reached VND 1,355.4 billion, a 0.7% increase compared to the same period last year, achieving 64% of the annual plan. After-tax profit reached VND 95.7 billion, a 28.2% increase compared to the same period, achieving 90% of the annual plan set by the General Meeting of Shareholders.
The improvements in business performance, coupled with the recognition as one of the companies with the best corporate governance, validate the company’s efforts in executing the development strategy towards stable and sustainable growth.