Independent Directors Association of Vietnam (IDA) was established under the Decision No. xx QD-BNV dated xxx 2020 of the Ministry of Home Affairs. The Association aims to represent, promote business ethics and transparency, advance board professionalism, create a pool of independent directors, build a network to connect corporate leaders and stakeholders, and help companies gain investor confidence.
According to Decree 05/2019/NĐ-CP will take effect on 01/4/2021, introducing the legal requirement for listed joint-stock companies to have at least one Independent Director on its Supervisory Board.
Independent Directors are appointed to the Supervisory Boards or Advisory Boards of companies to fulfill a number of roles. In particular the presence of Independent Directors is intended to improve board effectiveness and contribute to better corporate governance.