FPT ranks among the Top 3 Vietnamese Publicly Listed Companies on ASEAN's CG Score List

Hanoi, December 1, 2022 - Within the agenda of the online Award Ceremony of the ASEAN Corporate Governance Scorecard (ACGS) 2021, FPT is the only technology company honored with the Top 3 Vietnamese Publicly Listed Companies (PLCs) that have the best corporate governance scores in the ASEAN region. In particular, the Corporation has been named on the list for the second consecutive year.

FPT ranks among the Top 3 Vietnamese Publicly Listed Companies on ASEAN's CG Score List (screenshot)

The ASEAN Corporate Governance Scorecard is an initiative of the ASEAN Capital Market Forum (ACMF). It provides a rigorous methodology benchmarked against international best practices with the aim of raising corporate governance standards of publicly listed companies (PLCs) in ASEAN countries and promoting ASEAN as an investment destination. The survey is implemented every two years with the participation of companies from six ASEAN countries, including Indonesia, Malaysia, the Philippines, Thailand, Singapore, and Vietnam.

In order to be listed in the Top 3, enterprises must pass domestic and cross-country evaluation rounds and achieve the lowest score of 97.5 points. Besides FPT, two other Vietnamese enterprises in Vietnam's Top 3 are DHG Pharma and Vinamilk.

This award is seen as a motivation for good corporate governance practices in the region while promoting high-quality investment assets outside of ASEAN.

The ASEAN Corporate Governance Scorecard assesses corporate governance based on five critical contents, including Responsibilities of the Board, Disclosure and Transparency, Roles of Stakeholders, Equitable Treatment of Shareholders, and Rights of Shareholders.

Compared with the criteria of the Vietnam Corporate Governance Code of Best Practices and the ASEAN Corporate Governance Scorecard, FPT is highly appreciated for four over five contents: Roles of Stakeholders, Disclosure and Transparency, Roles of Stakeholders, Rights of Shareholders, and Responsibilities of the Board. Also, according to the Sustainable Development Assessment conducted by the Ho Chi Minh Stock Exchange (HoSE) in 2021, FPT's corporate governance score increased by 8 percentage points, from a total score of 69% in 2020 to 77% in 2021. In addition, the score on ensuring the roles of stakeholders and disclosure and transparency of the Corporation reached the maximum score of 100%.

Over the past three years, overcoming the impacts of Covid-19 and the instability of the global macro economy, FPT has maintained a high and stable growth rate. Specifically, FPT's Compound Annual Growth Rate (CAGR) of revenue and profit before tax (PBT) in the 2019 - 2021 period reached 15.4% and 18%, respectively. Besides, the CAGR of equity and total assets during this period also increased by 13% and 22%, respectively. Besides, the return on equity (ROE) ratio maintains above 25%. In the first ten months of 2022, the Corporation's revenue and profit before tax reached VND 35.105 billion and VND 6.456 billion, respectively, growing 24,4% and 24% compared to the same period last year. Net profit attributable to shareholders of the parent company and EPS reached VND 4,550 billion and VND 4,158, up 30.7% and 30%, respectively.

Previously, FPT was honored among the Top 15 enterprises with good financial management capacity in 2022. It is the second consecutive year of FPT to be named on the list, along with large corporates in other sectors, such as Vietnam National Petroleum Group, Vinamilk, and Masan,... Moreover, it is the only technology firm to be recognized.

The Covid-19 pandemic and global macroeconomic and geopolitical uncertainties have forced organizations and businesses to change and adapt flexibly to achieve sustainable development. In this context, it has never been clear that good corporate governance plays a fundamental role in business operations and crisis response. Good corporate governance not only helps improve business competitiveness and performance but also reduces internal conflicts and increases reliability and visibility to investors. Moreover, good governance prevents risks, maintains stable procedures, and better control costs, thereby boosting revenue and profit growth.

The Report evaluating the corporate governance of listed companies in 2019 and 2020 showed that the average profit of enterprises with good governance was higher than those with poor governance. Furthermore, in the Result report of the 2020 Program on Disclosure and Transparency Assessment of the Hanoi Stock Exchange, disclosure and transparency scores have a positive correlation with business results, which were measured by ROE (the ratio of the net return on equity) and ROA (the ratio of the net return on assets). The results also concluded that every 1% increase in disclosure and transparency scores means a 0.1% increase in ROA and a 0.12% increase in ROE.