Tracodi among top 10 mid-cap firms with best corporate governance in Vietnam

Tracodi, the construction-infrastructure subsidiary of Bamboo Capital, was named among the “Top 10 mid-cap companies with the best corporate governance” at a ceremony to announce the Vietnam Listed Company Awards 2023 on Friday.

2023 is the 16th year the Vietnam Listed Company Awards (formerly known as the Vietnam Annual Report Awards launched in 2008) has accompanied listed companies on the Vietnamese stock market. The awards is jointly organized by the Ho Chi Minh City Stock Exchange, Hanoi Stock Exchange and Vietnam Investment Review with the sponsorship of Dragon Capital Vietfund Management (DCVFM).

Following the success of previous editions, the Vietnam Listed Company Awards 2023 maintained the Annual Report, Sustainable Development Report and Corporate Governance awards under standard, transparent, professional and creative assessment criteria.

The awards received technical support from professional partners such as the International Finance Corporation (IFC), the U.K.’s Association of Chartered Certified Accountants (ACCA), the Vietnam Institute of Directors (VIOD) and four leading auditing companies Deloitte, E&Y, KPMG and PwC.

In the Corporate Governance category, 104 businesses with the best corporate governance were selected for the final round, divided into groups by capitalization. They included 34 enterprises in the large-cap group, 34 in the mid-cap group and 36 small caps.

To qualify for the final round, businesses must pass the evaluation of the group of independent experts from the VIOD. The evaluation content was not only based on the annual reports of listed firms, but also other official information sources such as websites and periodic reports. The preliminary scores were reviewed by the Big 4 auditing firms.

The voting council based on the preliminary scores by VIOD and the reviews of the Big 4 auditing companies to select the businesses with the highest Corporate Governance scores of each group for awards. The criteria for evaluating corporate governance in 2023 were built from the principles specified in the Vietnamese Corporate Governance Principles, the ASEAN Corporate Governance Scorecard and the G20/OECD Principles of Corporate Governance.

As of September 30, 2023, Tracodi, listed on the Ho Chi Minh Stock Exchange (HoSE) as TCD, boasted charter capital of VND2.83 trillion ($116.58 million) and equity of VND3.78 trillion ($155.7 million). Its total assets reached VND9.18 trillion ($378.2 million).

In the first nine months of the year, Tradico recorded VND1.16 trillion ($47.78 million) in net revenue and VND146.3 billion ($6 million) in after-tax profit.

Tradico is a pillar member company of Bamboo Capital Group (HoSE: BCG), responsible for the construction and infrastructure segment. With a 33-year history, it is one of the main contractors with a first-tier construction capacity certificate, capable of constructing large-scale projects such as road traffic and civil works, and others in industry and energy sectors.

The company now undertakes important infrastructure projects, including a taxiway for Phan Thiet Airport in the south-central province of Binh Thuan; a residential area and a reservoir adjacent to the Duc Thang residential area in Hiep Hoa district, the northern province of Bac Giang; and National Highway 3-Vo Nguyen Giap-Dong Anh road in Hanoi.

Previously, the company built and put into operation Provincial Road 830 under a build-operate-transfer (BOT) arrangement in Long An province in the Mekong Delta region along with a series of large-scale renewable energy and real estate projects of Bamboo Capital Group.

Tracodi plans to implement more investment projects in the Mekong Delta region in the 2024-2027 period with a total investment of more than VND7.4 trillion ($304.84 million), including a VND3.94 trillion project to build North-South economic development backbone road in Soc Trang province; a VND3 trillion road project in Duc Hoa district, Long An province; and a VND500 billion project to build an inland waterway port and port logistics service area in Soc Trang province.

The award "Top 10 mid-cap companies with the best corporate governance" has proven Tracodi’s good corporate governance, risk control ability and business strategy, as well as tight capital management. These factors will help the company have greater adaptability, quickly regain momentum of recovery and develop stably after periods of market fluctuations.

On the stock market, TCD closed the Friday session at VND7,140 ($0.29) per share.