Seminar on the holding company model highlights big challenge to set up standards of corporate governance

By Vu Minh - Nov 10, 2017 | 07:15 AM GMT+7

TheLEADERA seminar on the holding company model scheduled for November 16 will host a maximum of 100 CEOs.

Seminar on the holding company model highlights big challenge to set up standards of corporate governance
The seminar will be held in the Ocean Park building in Hanoi.

The holding company model has become common in multinational and diversified companies. And in recent years, many Vietnamese enterprises have replaced traditional business models with the holding company structure as a way of optimizing business operations.

The common characteristic of holding companies is their focus on the management and control of subsidiaries in a professional manner in line with the overall strategy. Through ownership mechanisms, the holding company model provides a flexibility for firms in transforming strategic focus and sharing with investment partners.

Some local firms that have adopted this model include large enterprises such as Hoang Anh Gia Lai, PetroVietnam Insurance (PVI), Masan Consumer and Mobile World.

In developing countries like Vietnam, holding company model is popular in diversified companies due to the benefits of performing tax obligations, personnel issues, financial leverage, controlling equity, access to capital, and facilitating mergers and acquisitions.

Experts and entrepreneurs say that holding company model has many advantages, the most outstanding of which is the subsidiaries’ autonomy in operation and business transactions. However, it is always a big challenge to set up the standards of administration, finance, and business for holding companies to control their subsidiaries closely.

In order to help enterprises have a deeper understanding of this model, the program themed on “ CEO-key to success” will be organized by PwC Vietnam and the property developer Novaland Group in cooperation with the Vietnam Entrepreneur and Family Council (VEFC) in Hanoi on this November 16. The CEO-Key to Success, is an annual economics-focused broadcast of Vietnam Television, was launched in 2005.

The event will feature Thai Quoc Minh, chairman of VP Capital and a member of Board of Directors of the Saigon Hanoi Commercial Joint Stock Bank (SHB); Pham Dinh Doan, chairman of Phu Thai Group and chairman of VEFC; and Dinh Thi Quynh Van, General Director of PwC Vietnam.

From 2017, the program will periodically host a series of seminars on economic topics that are relevant to business leaders. is a media sponsor of these seminars.

Businesses wishing to attend the seminar (free of charge) can register at