Vinh City Green Park Joint Stock Company needs to build its brand.

On the morning of January 17, the Provincial National Assembly Delegation had a working session with Vinh City Green Park Joint Stock Company on the implementation of legal policies on management and use of state capital and assets at equitized enterprises.

Working session scene. Photo: Thanh Le

Vinh City Green Park Joint Stock Company is a public utility enterprise, the first equitized enterprise in the country in the field of green trees since 2005 with a total charter capital of 1,806,600,000 VND to date is 3,897,300,000 VND, of which state capital accounts for 55.44%; other shareholders are employees of the company accounting for 44.56%.

After equitization, the company has proactively implemented many solutions and built action programs to promote advantages and overcome difficulties. The company always operates in production, business, preserves and develops state capital effectively in the enterprise; and always fulfills its obligations to the state budget.

Reflecting to the National Assembly's Supervisory Delegation, Mr. Phan Xuan Bao - Director of Vinh City Green Park Joint Stock Company said that the unit's shortcomings after equitization were that according to Decree 97 of the Government, the joint stock company model includes the Chairman of the Board of Directors and the Director to separate, improve efficiency and transparency in management. However, due to its small scale, the unit is implementing the model of Chairman of the Board of Directors and Director.

Mr. Bao believes that, based on the practical operations of the company, the State should have regulations on the scale and level of implementation of the model of Chairman of the Board of Directors and Director. As for small and micro enterprises such as companies, the model of Chairman of the Board of Directors and Director should not be applied.

Mr. Phan Xuan Bao - Director of the Company proposed Vinh City to allocate more land for tree nurseries. Photo: Thanh Le

According to this Director, the difficulty of the unit is the small scale of operation, mainly operating under contracts ordered by Vinh City, the expansion of services is still limited. In addition, the nursery area is increasingly narrowing, from 13 hectares to now less than 2 hectares. The company proposed that Vinh City allocate more land for the nursery.

Speaking at the meeting, Vice Chairman of Vinh City People's Committee Le Sy Chien said: The company's revenue is on average 19-20 billion VND per year, the city's annual budget is 15-17 billion VND for pruning, planting, and caring for trees, etc. The budget has not met the requirements due to the low budget, while the demand for tree care is very high.

The Vice Chairman of Vinh City People's Committee said that the company's operations are mainly based on orders from the State. The company has not been proactive and creative in expanding its service activities, and its market participation is still too limited. The company is only focusing on solving jobs for workers, but it does not have high skills and cannot meet customer tastes.

Workers of Vinh City Green Park Joint Stock Company take care of trees. Photo: Archive

“If Vinh City plans to merge environmental, green space, and urban infrastructure management units and divest state capital, the city will change the mechanism from ordering to bidding. If the units do not make efforts, innovate, create, and create their own brands and reputation, it will be difficult to compete in the market,” said Mr. Chien.

Concluding the meeting, Deputy Head of the Provincial Delegation of National Assembly Deputies Nguyen Thanh Hien acknowledged the unit's tradition of operating in the green tree sector, a model of over 15 years of equitization. During the equitization process, the unit implemented State policies, organized political parties and unions effectively, and continued to perform well to ensure production and business activities.

The Deputy Head of the Provincial Delegation of National Assembly Deputies suggested that Vinh City continue to pay more attention to supporting the company with budget resources and creating conditions for the company to develop according to orders and expand service activities for the company, learning from the experience of other localities.

In particular, the company needs to develop a strategy for the development of parks and trees; train skilled workers, create a brand to become a trusted address for customers, increase competitiveness, and expand the market.