Vietnam’s business landscape is in need of a boost in the boardroom, with a particular focus on the role of independent directors (IDs). These directors play a vital role in ensuring effective governance and decision-making within companies. The critical skills and competencies required for an ID are essential for navigating the complex challenges faced by businesses today. From financial literacy to industry-specific experience, the attributes of integrity, courage, and commitment are equally significant for an ID to thrive in their role.
As businesses grapple with risks spanning from technological advancements to environmental considerations, the need for vigilant oversight from independent directors becomes increasingly apparent. While regulations in Singapore emphasize the quantity of IDs, the quality and independence of these directors are equally crucial. Vietnam can take cues from such frameworks to enhance the effectiveness of its ID roles.
By prioritizing the development of a competent pool of independent directors and implementing robust training and certification processes, Vietnam can elevate the quality of governance within its businesses. Encouraging companies to adopt stringent search and nomination processes for IDs, along with promoting a culture of healthy debate and decision-making on boards, can further enhance corporate governance practices in the country.
With a focus on fostering a skilled and ethical cadre of independent directors, Vietnam can set the stage for sustainable growth and resilience in its business ecosystem. As the role of IDs evolves amid the dynamic business landscape, upholding the principles of integrity, expertise, and independence will be key to steering companies towards success in the long run.
