By Mak Yuen Teen
I am pleased to announce that I have accepted an invitation from the Vietnam Independent Directors Association (VNIDA) to be a senior adviser and a member of their advisory council. I am honoured by their invitation. VNIDA was formally established in January 2022 under a decision of the Ministry of Home Affairs in Vietnam.
It was not a decision that I took lightly. I had met a few VNIDA members when I was in Ho Chi Minh City in July, when they asked if I would agree to be their adviser. The reason for my caution is that I have seen too many professional and industry bodies facing governance issues or drifting aimlessly with no impact. I also wanted to be sure that I can add value to them. When the formal invitation came, I had several calls with them as part of my due diligence process before I made my decision to accept. As there is already a well-established directors institute in Vietnam, the Vietnam Institute of Directors – which is the equivalent of the Singapore Institute of Directors (SID) – I also wanted to ensure that VNIDA’s mission and activities do not substantially overlap with VIOD’s. I appreciate their patience in answering my many questions and I also sought clearance from the university, even though this is an honorary role and VNIDA is a not-for-profit organisation. I know some of the individuals who are involved in leadership or advisory roles in VIOD and had in fact spoken virtually at their event recently. Out of courtesy, before I formally accepted the invitation from VNIDA, I informed my contact at VIOD that I was going to accept the invitation from VNIDA. My hope is that the two bodies will collaborate in certain activities and I informed VNIDA that I may participate in certain VIOD projects or events.
The reason why I accepted is because I feel there is space for a separate professional body focused on independent directors. About 15 years ago, I discussed that very idea with some director friends here, who were enthusiastic. In fact, Business Times ran an article about this “rumour”. Eventually, I told my friends and others that, after further thought, SID should be given more time to develop into a truly professional body for directors that uphold high standards – SID was only about 8 or 9 years old then.
Twenty four years after SID was founded, should the question as to whether there should be a separate body for independent directors in Singapore be raised again? A body that has rigorous professional development requirements, upholds and enforces a robust code of conduct for members, and that is focused on the needs of serious-minded independent directors hoping to differentiate themselves from the questionable independent directors now serving on corporate boards here?
I hope I can help at least in a small way to raise the standards of independent directors in Vietnam, a market that has grown quickly and which will require many more good independent directors in the years to come. I look forward to working with VNIDA and to supporting other initiatives to raise corporate governance standards in Vietnam. It is also an opportunity for me to learn more about corporate governance in Vietnam.
