Good board key to better business

HCM CITY – International management experience is key to helping local businesses develop. That was the message experts delivered at a workshop held to help build an efficient board of directors.

Held in HCM City on Tuesday, the workshop was organised by the Việt Nam Institute of Directors (VIOD) in cooperation with HCM Stock Exchange (HOSE) and other organisations.

The chairman of the board of directors has a decisive influence on the way the company works, balance and performance of the board of directors. The role of the chairman will become more important than ever in emerging markets, according to the experts.

When a chairman of the board is developing effective action programmes as well as plans of succession, they will create investment opportunities and prevent unnecessary risks.

At the workshop, Lê Hải Trà, HOSE chairman, said "Việt Nam needs business leaders with knowledge and skills to help strong growth in the Vietnamese economy and international economic integration."

"For example, the rapid change of the industry 4.0, digital technology and the wave of start-up businesses has created a high competition in investment and business environment," Trà said.

According to Trà, the new investment and business environment requires leaders and the chairman of the board of directors in particular to have talent and wisdom to manage and run the business.

In public companies they are necessary to build a board to maintain continuity and inheritance in business operation.

Regarding to the placement and change of leadership, if they prepare strategy and transfer for the position, they will reduce risks in the context of free trade market.

With experience in consulting for businesses in Việt Nam for many years, Hà Thu Thanh, chairwoman of VOID and Deloitte Vietnam, said board reforms would be necessary to ensure they do the right work and create a more effective and practical value.

"In addition, instead of intervening in the day-to-day running of the company, the board needs strategic direction to help management implement and monitor efficiency in the company’s operation," she said.

She added that businesses could use the board of directors as one of the most powerful strategic tools to promote their investment and business activities.

According to Bob Arciniaga, Founder, CEO and Managing Partner of Advisory Board Architects (ABA) Asia, to build up and create value, education plays an important role. This will create ideas, innovations in daily operations, investment and business as well as strategies in the future, making value of the company. - Khanh