ARAs highlight big progress

Vietnam Investment Review’s Annual Report Awards 2008 has seen major improvemments in domestically listed companies’ efforts towards meeting international report standards.

The Annual Report Awards 2008, the second in its annual row, last week recognised Hau Giang Pharmaceutical (HOSE code: DHG) report as the best, while 11 others listed on the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) were acknowledged for their professionalism and improvements. Thu Duc House (HOSE code: TDH) was rewarded for its impressively designed report.

The organisers, VIR and HOSE, through the examination board, comprised of representatives from the exchange, the Ho Chi Minh City Economics University, HSBC, the Fulbright School in Ho Chi Minh City and VIR examined 15 out of 46 companies’ annual reports in the final round.

The board’s final decision gave DHG the best annual report prize for its overwhelming excellence in its report, which focused on marketing, product strategies, sales, price analyses, competition, risk management and legal risks, along with a clear financial statement. The criteria for the awards covered accuracy, transparency and professionalism, and the application of international standards.

“The awards have become the driving force for enterprises to improve their professionalism and transparency in making their reports and to contribute to raising transparency in Vietnam’s stock markets,” said Nguyen Anh Tuan, VIR Editor-in-Chief.

This year’s awards witnessed an increasing number of participants, with 46 against 33 from last year in the final round. The participants were from both exchanges, instead of focusing only on the HoSE, like last year.

“There is great improvement in annual report quality in terms of content, structure and displays compared with the status of reports made in 2007, which were often of poor standards and did not radiate confidence for investors to analyse firms’ performances and trade shares,” said Le Nhi Nang, HOSE deputy director and chairperson of the examination board.