Only 54% of securities companies in Vietnam meet information disclosure standards: report

The percentage of listed securities companies in Vietnam meeting information disclosure standards in 2024 dropped sharply to 54% from 80% last year, according to a report released by the Vietnam Association of Financial Executives (VAFE).

The report featured the association’s comprehensive survey on information disclosure on the stock market as part of the Investor Relations (IR) Awards 2024.

It covered all businesses listed on the Ho Chi Minh Stock Exchange (HoSE) and the Hanoi Stock Exchange (HNX) during a 12-month period from May 1, 2023 to April 30, 2024.

The survey results showed that 424 out of 708 listed companies showed good compliance with information disclosure standards, accounting for 60% of the total and 60 more than 2023 (364). The rate of 60%, up from 50% last year, shows that enterprises have increased their awareness and created a major shift in information disclosure across the entire market.

2024 is the year with the highest rate of businesses meeting information disclosure standards during the 14-year course of the IR Awards (2011-2024).

In terms of capitalization, large-cap companies continued to take the lead in good compliance with regulations on information disclosure. Specifically, 81% of financial large-cap firms met the 2024 information disclosure standards, including those in banking, securities and insurance industries.

In the non-financial sector, 65% of non-financial large-cap companies satisfied the standards.

Previously, information disclosure was mainly focused on large-cap enterprises, but in this year's survey, the group of small- and micro-cap businesses created a breakthrough with the rate increasing impressively from 46% to 58%. This shows that small businesses are increasingly paying more attention to information disclosure activities. As a result, transparency in the stock market has recorded large-scale growth.

By industry, banking saw the highest proportion of businesses meeting 2024 information disclosure standards, reaching 90% (18 out of 20 units), a huge jump from previous years. It was followed by the mining industry (79%), food & beverage (77%), and utilities (76%).

The construction and real estate industries clocked in at 47% and 49%, respectively.