Around 40-50% in total 239 surveyed enterprises did not properly or fully understand the concept of internal control and code of conduct. Many Vietnamese companies conducted internal control and code of conduct formally and ineffectively.

Development of internal control and code of conduct is one of the effective solutions for good corporate governance towards sustainable development ensured by strong commitment of all relevant parties.

A business where internal control mechanisms are weakened with ineffective code of conduct will lead to ineffective governance and control and will increase the chances of fraud or failure in compliance with relevant laws and regulations.

In another hand, a strong internal control mechanism with an appropriate code of conduct will stimulate control activities thus to detect and prevent any fraud/non-compliance as early as better.

Besides, an effective internal control mechanism is helpful for leaders to analyse risks, factors and persons in charge to fix the vulnerabilities while control the activities in future, prevent the fraud/non-compliance (including bribery) by minimizing opportunities for violation and control such others as motive or justification for violation. Accordingly, bribery is prevented and anti-corruption is promoted. 

Under the Trade Reform Programme via the regional project “Promoting a fair business environment in ASEAN” supported by UK Prosperity Fund, VCCI in cooperation with UNDP published the manual “Guiding application of Internal Control Mechanism and Code of Conduct” for businesses in Vietnam. This manual helps business in Vietnam to step by step set up internal control mechanism and code of conduct which enhances governance capacity, manage risk and prevent violation of law. In such doing, the business community contributes significantly to promote a fair and transparent business environment in respect to the Agenda 2030 for Sustainable Development.

The technical substance in the Handbook are designed to suit small and medium businesses in all forms of ownership: private enterprise, company with state capital, SOEs, FDI. The best practice and approach of development and operation of IC and CoC in the world are updated in this manual enabling either big groups or SMEs to refer for application. Please learn more details here here.