Accordingly, excellent results account for only 1.1%. Although this figure has been improved compared to the previous year, it still shows a low quality of information disclosure for listed companies. One of the main reasons for this is that listed companies have yet to apply the international code for information transparency.
Annual financial reports, numbers, and terms - not everyone can fully understand, especially small shareholders. Thus, information disclosure doesn’t mean transparency.
"Codes of board management and information transparency are seen as the weakest factor, as enterprises do not pay much attention to it. Almost all companies carry out information disclosure as required by the law, but have yet to focus on its efficiency, said Tran Van Dung, Chairman, Hanoi Stock Exchange.
According to experts, for listed companies, information transparency will build trust in investors. So far, some enterprises have utilised international codes, and this has opened many doors for them. According to law, listed companies have to disclose information quarterly and annually with an audited financial report at the end of the year. In fact, this company discloses information monthly, and it is willing to provide any related information to shareholders at any time.
"In order to have a better chance for development, enterprises need to disclose information in both Vietnamese and English. The investors only make investments when they understand the company’s operations", said Ly Thi Lien, Vice President, Corporation for Investment and Trade TNG.
According to the state securities committee, regulations on information disclosure are still limited. Therefore, thorough planning needs to be mapped out to encourage listed companies to apply international codes.
Information transparency helps investors understand companies’ operations. Therefore, applying the international code for information disclosure is a key solution, which requires intense effort from both government and enterprises.
