FPT was the only tech stock to be ranked in the VNSI List

The Ho Chi Minh City Stock Exchange (HOSE) has recently announced the list of 20 constituent securities of the VNSI - a cap-weighted, free-float adjusted index consisting of listed companies with the highest scores of sustainability listed on HOSE under VN100.

And FPT was the only tech stock to be ranked in the VNSI List.

VNSI was created as a reference or an underlying asset for investment products such as ETFs (Exchange Traded Funds) and index futures.

According to the evaluation results, FPT's total ESG score (Environment - Society - Governance) reached 79%, an increase of 3 percentage points compared to 2021. Specifically, its Environment score was 70% (while the average score of VN100 was 57%); the Social score gained 85% (while the average score of VN100 was 69%); the Governance score achieved 76% (as the average score of VN100 was 68%).

Besides, FPT was also one of the five stocks with the largest market capitalization in the VNSI list.

According to HOSE, FPT's market capitalization as of November 18, 2022, was VND 78,437 billion and the free transferability ratio was 85%.

VNSI index was launched by HOSE in July 2017. As of November 18, 2022, VNSI reached 1,523.89 points, an increase of 51.58% compared to the starting value. The market cap of 20 enterprises in the VNSI portfolio went over VND 1 million billion, equivalent to  USD 40 billion (accounting for nearly 27% of the total market capitalization). From the beginning of the year to November 2022, Vietnam's stock market experienced a significant decline as VN INDEX was down 36.46% and VN100 was reduced by 41.6%. However, the plunge also occurred for VNSI but with lower volatility than the market, at only a 34.91% decrease compared to the same period last year. It indicated the stability and sustainability of the VNSI portfolio compared to the market average in the face of negative impacts.

The assessment of sustainable development is carried out based on public information and provided by the companies through the Sustainable Development Survey Questionnaire, including over 100 specific criteria. The details were developed based on the Global Reporting Initiative's GRI Standards, the G20/OECD corporate governance principles 2015, The Vietnam Corporate Governance Code of Best Practices 2019, and several Vietnamese securities regulations.

In 2022, FPT also won prestigious corporate governance awards such as: the Top 5 Large-Cap Enterprises with Best Corporate Governance in 2022 for five consecutive years; the Top 3 Vietnamese Publicly Listed Companies on ASEAN's CG Score List; the Top 15 enterprises with good financial management capacity in 2022.

Undoubtedly, the above-mentioned prestigious awards in corporate governance have reaffirmed FPT's leading position in the industry. In particular, the Corporation's management boards always believe that more than economic growth is needed to face uncertainties and find future opportunities. Thus, enterprises must pay more attention to factors that affect sustainable development.

According to economic experts, companies with good governance are also better valued (with a higher P/B ratio). Moreover, high capitalization and good governance will help businesses attract investors and promote access to long-term capital, especially in today's globalized capital market. In addition, they can ensure sustainable development and better resilience. At the same time, good corporate governance also creates a transparent mechanism to protect the rights of investors and other stakeholders.